South African Business 2019

2019 EDITION

SOUTH AFRICAN BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN SOUTH AFRICA

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Adorantha Investments Improving the quality of health in South Africa.

A

dorantha Investments (Pty) Ltd is a company with a national footprint that provides health awareness, healthcare counselling and training services. The mission of Adorantha’s HIV/Aids awareness programmes is to help prevent HIV infections and to improve the lives of those affected by HIV and Aids by providing education and facilitating the free and open exchange of knowledge and training.

The counselling and health awareness programme is based on a holistic approach that encompasses diseases management which impacts on health lifestyle. The medium and long-term benefits of this type of approach are unquestionable. The company’s operations are managed and driven by health professionals who bring with them many years of experience in various health fields.

The company aims to improve the quality of health in South Africa and help improve the levels of productivity in the country via affordable health counselling at strategic places throughout the country.

The EAP (employee assistance programme) is designed to assist management, employees and their dependants and various stakeholders within the company in addressing productivity and absenteeism issues in a confidential and effective manner.

Adorantha has established a reputation of service excellence in the past eight years. Community and

healthcare programmes are designed towards prevention rather than treatment of compromised conditions, and a spectrum of services that are integrated towards normalising the lives of the afflicted, has set a pattern of excellent outcomes that has the potential to be repeated.

These include areas such as lifestyle diseases and work-life balance in order to enhance individual and organisational wellness. These programmes include health risk assessments, training, profiling, education and awareness which is aligned to the country’s health awareness days (World Diabetes Day, World Aids Day, etc) and other programmes aimed at improving the general health standard of employees and communities. The company’s HIV/Aids programmes follow an integrated approach, tackling the epidemic on all fronts with various initiatives and campaigns that include education and awareness, comprehensive healthcare, risk management, community involvement and monitoring and evaluation.

We have benchmarked our health awareness programmes against the best programmes in the country and we always aim to improve through training and workshops. Our programmes utilise specific core principles to enhance employee and workplace effectiveness through prevention, identification, and resolution of personal and workrelated issues.

All wellness and health interventions at Adorantha

are planned, designed and implemented based on consultation with our clients. Health screening tests or analysis are conducted on-site at a nominated venue by our competent health practitioners in an atmosphere of confidentiality and privacy. These interventions have been reinforced through strong communication, awareness, education and prevention drives through varied mediums.

Services HIV and Aids education needs to motivate people by making them aware that what they are learning is relevant to their lives. Empowerment is also crucial, as people must be in a position where they are able to take control of their sexual behavior or methods of drug use. Education is a crucial factor in preventing the spread of HIV. Given the huge numbers of deaths that might still be prevented, the importance of effective education cannot be overestimated.

HIV/Aids and TB at the workplace Management of TB

• Management of drug-resistant TB • TB and HIV infection prevention and control • HIV management • General health awareness programmes • Health roadshows • Practical skills sessions for doctors and nurses • Workshops and awareness sessions for lay people These sessions cover the basics of TB and HIV and bring together diverse groups of employees and communities. We also supply technical support and assist in creating health policies and protocols.

Staff

In addition to highly qualified doctors and nurses Adorantha can call on a range of skilled professionals in rolling out holistic services. All doctors are in good standing with the Health Professions Council of South Africa (HPCSA).

Educators

The health educator provides risk assessments and health education to HIV-positive patients and provides HIV testing and group education to HIV-negative participants. The educator maintains client confidentiality at all times.

Counsellors

Counsellors provide personal, behavioural and vocational guidance for individuals and groups.

In collaboration with medical staff, they help to determine when detoxification for a client is appropriate and provide supportive counselling and referrals.

In-house psychologists

They can assist where the problem goes beyond the mere physical. A health psychologist conducts surveys, personality tests, interviews and interventions. Interventions might involve chronic disease management, stress relief or relaxation therapy.

Legal services

We can assist in the drafting of wills, representation in disciplinary hearings, general legal advice sessions and bail applications. We can also provide representation in some criminal (limited) matters.

Financial advisors A highly-skilled team can advise any entity on financial affairs, in association with Johan Eksteen & Associates (FSB no 10930).

Other services Insurance – Affordable Healthcare and Group Schemes Employee Assistance Programmes Wellness Management HIV/Aids Management Programmes Student Life Skills training

Physical address: 107 Haymeadow Street, Block 4 Boardwalk Office Park, Faerie Glen, Pretoria 0081 Tel: +27 12 948 0410 | Email: info@adorantha.com | Website: www.adorantha.com

New team boosts Durban’s prospects A lifestyle of business and pleasure together, Durban has the perfect mix for investors.

T

eam Durban has a new and dynamic team to drive investment into the city. In September 2018, eThekwini Mayor Zandile Gumede inducted the new members of Team Durban.

The team will provide strategic Foreign Direct Investment (FDI) advice to the city leadership and the new Invest Durban Unit on business and investment promotion matters.

Mayor Gumede thanked the newly nominated members of the team for agreeing to help accelerate investment growth while looking to improve the business environment of the city region.

The Deputy City Manager of Economic Development and Planning Phillip Sithole will provide liaison and administrative support to Team Durban. Sithole will also provide progress reports to council on the functioning and outputs of Team Durban. Members of the Team Durban Advisory Forum from the Municipality comprise eThekwini Mayor Zandile Gumede, who will serve as the Chairperson of the Forum, Chairperson of the Economic Development and Planning Committee Sipho Kaunda, and City Manager Sipho Nzuza.

The external members are representatives of some the biggest business in the city as well as representatives from civil society, including youth and academia.

They are: Suben Moodley, Senior Vice President for Corporate Affairs Toyota South Africa; Mike Deighton, Managing Director Tongaat Hulett Developments; Themba Ngcobo, Founder and Director Exel Petroleum; Musa Makhunga, Managing Director of HR Matters and President of the Durban Chamber of Commerce and Industry; Sandile Zungu, Corporate Director Zungu Investments Company Limited (ZICO); Steven Saad, Chief Executive of Aspen Pharmacare; Mlungisi Ntombela, General Manager eThekwini Disability Sport Forum; Faisal Mkhize, KZN Provincial Managing Executive of Absa; Zanamuhla Khanyile, Department of Correctional Services; Samukelisiwe Nzimande, Managing Director K2M Financial Services; Howard Arrand, Provincial Head FNB; Manto Madlala, acting CEO Premier Soccer League; Thulisa Ndlela Chair of Ayigobi Investments.

The non-executive members have been appointed to serve on Team Durban for a period of three years effective from 1 July 2018 to 30 June 2021.

Their service will be on a voluntary basis but the municipality will cover their travel and accommodation expenses where required and in accordance with travel policy.

At the function to introduce the new team, Russell Curtis, Head of Department, Invest Durban said, “Team Durban marks the further sophistication of the city.”

He explained that the goal of Team Durban was to improve partnerships and strengthen relationships between different sectors in society. This forum he said was a significant step change for Durban and in line with global best practice.

INVEST IN DURBAN Durban’s investment agency has a refreshed brand name of “Invest Durban”. A partnership between the Metro City Council and the private business sector, Invest Durban offers a free investor advisory service plus key promotion, facilitation, aftercare services between all investment stakeholders.

Invest Durban was recommended by the Durban

City Council and organised private business as the “First Stop Shop” to stimulate economic growth and new investment in the Durban metropolis.

Main Purpose To facilitate sustainable investment in Durban for the benefit of all through the: • expansion, retention and aftercare of existing foreign corporate business • proactive investment promotion and marketing of Durban Metro • proactive connection to, and marketing of the city’s large investment projects • attraction of prospective new foreign investors Invest Durban works closely with the Department of Trade and Industry including Invest SA, Trade and Investment KZN (TIKZN), the Durban Chamber of Commerce and Industry, the KZN Growth Coalition, and State-Owned-Enterprises such as Dube TradePort, the DBSA, IDC, Eskom and others. Key partners include the largest banks, audit and advisory firms, plus sector-based organised business bodies working in concert to promote investment in Durban.

Physical address: Invest Durban, eThekwini Municipality 11th Floor, 41 Margaret Mncadi Avenue Durban 4001, South Africa Tel: +27 31 311 4227 Email: invest@durban.gov.za Website: www.invest.durban

CONTENTS

CONTENTS South African Business 2019 Edition.

Introduction Foreword 12 A unique guide to business and investment in South Africa.

Special features An economic overview of South Africa

14

South Africa has many attractive investment opportunities in sectors ranging from agri-processing to renewable energy.

Provinces of South Africa

22

A snapshot of South Africa’s nine provinces.

Energy and the future

26

South Africa’s exciting renewable energy programme is back on track.

Special Economic Zones

36

Promoting industrial development via incentives.

Healthcare

42

Health counselling at work is a growing trend.

SOUTH AFRICAN BUSINESS 2019

4

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CONTENTS

Regional trade

44

Trading with African neighbours is set to become easier.

A hub of economic activity

52

Airports can anchor economic growth in multiple sectors.

The Oceans Economy

56

There are massive opportunities in new maritime sectors.

Economic sectors Agriculture

66

Increasing agri-processing volumes is a national priority.

Mining

70

Mine owners are preparing for change.

Oil, gas and petrochemicals

75

National policies are focussing on gas.

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6

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Aggregates

Afrimat Limited is a leading black empowered open pit mining company providing an integrated product offering ranging from

Concrete Based Products

aggregates, industrial minerals, commodities (iron ore), concrete products (bricks and pavers) to readymix concrete.

Afrimat has established a strong foothold in contracting services

Industrial Minerals

comprising mobile crushing, screening, drilling and blasting.

Contracting International

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Commodities

Backed by more than 45 years’ experience, Afrimat listed on the JSE group is expanding its footprint into Africa.

The group’s capabilities enable Afrimat to service projects of any scale from major infrastructure and construction projects for state-owned enterprises and parastatals through to small private sector contracts.

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Tel +27 21 917 8840 Fax +27 21 914 1174

info@afrimat.co.za

CONTENTS

Water

82

Restructured water boards have greater responsibilities.

Engineering

90

Major restructuring is underway.

Construction and property

98

The shopping mall trend continues to grow.

Manufacturing

108

Incentives are in place to support new investment.

Food and beverages

116

Acquisitions are supporting backward integration.

Automotive

118

Chinese investors are building at the Coega Industrial Development Zone.

SOUTH AFRICAN BUSINESS 2019

8

About Thebe Founded in 1992 as a pioneering black-owned company,

with an initial

About Thebe About Thebe About Thebe About Thebe

Thebe opened for business in July 1992 with an initial

shareholder at the

capital investment of only Rl 00 000. A sole shareholder a

ed trust which included

time was the Batho Batho Trust, a community-based trust which

verend Beyers Naude as

Founded (Chairman), Walter Sisulu and Reverend Beyers Nelson Mandela Founded

Founded

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Nelson Trustees.

Mandela (Chairman), Walter Sisulu and Reverend Beyers Naude as success to tra original success to transform lives, and make a embedded company that uses its business original Trustees.

Founded original Trustees. difference in our communities.

Thebe Investment Corporation is an African Company that came into being Thebe Investment Corporation is an African Company that came into being in 1992 as a pioneering Thebe Investment Corporation is an African that came into being setting shortly before South Africa's formal Company political transition to democracy, Investment Corporation is an African Company that came into being shortly before South Africa's formal political transition to democracy, setting black-owned company, Thebe shortly before South and Africa's formal the political to by democracy, setting new norms changing facetransition of business establishing a socially C is articulated in Vision 2020, The future ofsetting TIC is articulated shortly before South Africa's formal political transition to democracy, new norms and changing the face of business by establishing a socially Thebe opened for business in July 1992 with an initial new norms and changing the face business by establishing socially lives, and make a embedded company thatof uses its business success toatransform on the African Renaissance. which focuses on the African new norms and changing the face of business by establishing a socially embedded company that uses its business success to transform lives, and make a capital investment of only Rl 00 000.

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Nelson Mandela (Chairman), Walter Sisulu and Reverend Beyers as The future of TIC is articulated in Vision 2020, n its focus on the key growth strengthen its focus on th The future of TIC is articulated in Vision 2020, original Trustees.

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The Energy Resources division will which on the African infrastructure Renaissance.

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The embedded company that uses its business success to transform lives, and make infrastructure well as seeks water.toThe ServicesasDivision become a a and the rest of the South Africa infrastructure as well asto water.

The aand the rest Services Division seeks become difference in our communities.

Services Division seeks to become a facilitator of world class services for by participating in continent by participat Services of Division to become facilitator world seeks class services for a facilitator of Africa world and classthe services South rest offor the The future of TIC is articulated in Vision 2020,South facilitator of and world class for Africa the restservices ofthe thefollowing wing sectors: sectors: South Africa and the rest of the continent by participating in which focuses on the African Renaissance. South Africaby and the rest of the continent participating in continent participating in & tourism, media, travel & tourism, med theby following sectors: The Energy and Resources division will continent by participating in the following sectors: the following travel sectors: & tourism, media,food & agro-process agro-processing, strengthen its focus on the key growth the following sectors: travel & tourism, media, travel food & tourism, media, & agro-processing, property. areas of energy, resources, power, travel&&agro-processing, tourism, media, and property. food food & agro-processing, and property. infrastructure as well as water. The food agro-processing, INVESTMENT CORPORATION and & property. and property.

Services Division seeks to become a and property.

THEBE

T

IN

facilitator of world class services for South Africa and the rest of the continent by participating in the following sectors: travel & tourism, media, food & agro-processing, and property.

THEBE

INVESTMENT CORPORATION

CONTENTS

Transport and logistics

120

Plans are in place to shift freight from road to rail.

Information and communications technology (ICT) 124 Incentives are encouraging investment.

Tourism and events

134

The events and conferences sector is growing across the country.

Banking and financial services

140

New sectors and new licences are creating opportunities.

Development finance and SMME support

144

Prompt payment is vital for small businesses.

National Government South African National Government

148

References 64

ZIMBABWE BOTSWANA

MOZAMBIQUE

Sector contents

Limpopo 7%

NAMIBIA

Index 152

Gauteng Mpumalanga 7% 35%

North West 6%

SWAZILAND

Free State 5%

Maps

Northern Cape 2%

Detailed map of South Africa.

20

South African provincial map.

SOUTH AFRICAN BUSINESS 2019

17

10

LESOTHO

Eastern Cape 8% Western Cape 14%

KwaZuluNatal 16%

FOREWORD

South African Business A unique guide to business and investment in South Africa.

W

elcome to the seventh edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www. southafricanbusiness.co.za.

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as Special Economic Zones and African trade provide unique insights, together with comprehensive overviews of critical economic sectors. Other special features focus on the exciting new possibilities in renewable energy, airports as engines of regional growth and the maritime sector as an entirely new prospect for South African entrepreneurs and businesses.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.gan.co.za. These unique titles are supported by a monthly business e-newsletter with a circulation of over 26 000.

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

DISTRIBUTION South African Business is distributed internationally on outgoing and incoming trade missions; to foreign offices in South Africa’s main trading partners; 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, airport lounges and companies.

Member of the Audit Bureau of Circulations COPYRIGHT | South African 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: Beier Group, Cape Town International Convention Centre, Chris Kirchoff/Brand SA, Department of Trade and Industry, Dube TradePort, eProp Commercial Property, Graeme Williams/BrandSA, Impala Platinum, Indluplace Properties, iStock, Kevin Wright/Vedanta Zinc International, Mainstream Renewable

Join us!

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Ad sales: Sydwell Adonis, Sandile Koni, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda, 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

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

ISSN 2221-4194 Energy, Rodger Bosch/Media Club SA, SA Heavy Haul Association, SASOL, Sutherland Engineers, SKA, Transnet Port Authority, Volkswagen SA. DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in South African Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, time-liness, or completeness of the information. Global Africa Network Media will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

Advertise your organisation in this journal to reach business and government. Contact sales@gan.co.za

INTERVIEW

Making a difference Adorantha founder Thami Ndlala explains how health awareness, counselling and training can change lives.

How did the business begin?

We are passionate about our country and its people. In 1996, then Minister of Health, Nkosazana Dlamini-Zuma, told a conference in Vancouver that most people infected with HIV live in Africa, where therapies involving combinations of expensive anti-viral drugs are out of the question. We knew then that we had to get involved. Our vision was to set up Employee Assistance Programmes designed to assist management and employees in addressing productivity and absenteeism in a confidential and effective manner.

Thami Ndlala

What are the main services you provide?

Adorantha provides health awareness, healthcare counselling and training services nationwide. Our mission with the HIV/Aids awareness programme is to help prevent HIV infections and to improve the lives of those affected by providing education and facilitating the free and open exchange of knowledge and training. Counselling and health awareness is based on a holistic approach.

What level of qualifications do your staff have?

Adorantha Investments has established a reputation of service excellence.

We pride ourselves on the services we render as well as the trained and highly professional and qualified service professionals. We have qualified doctors who are in good standing with the Health Professions Council of South Africa (HPCSA).

BIOGRAPHY Thami Ndlala is an entrepreneur and businessman at heart.

After working in the corporate environment for a short period, he focussed his energy on building an empire. With the umbrella company, Ndlalayemandla Group of Companies (Pty) Ltd, he set off on this journey. The various subsidiaries reflect his interest in transport, recreation, wellness, insurance, hospitality, property development, education, security and media/entertainment. Thami’s approach has always been to look at ways in which he can make a difference.

Please tell us about the HIV/Aids in the workplace programme.

We provide HIV testing and group education to HIV-negative participants, training on Wellness Referral Programme and Student Life Skills Training.

Our wellness programme is about increasing the productivity, morale and teamwork and strengthening the bonds between management, employees and the organisation. The HIV/Aids workplace programme includes creating a company policy, information on HIV/Aids, ways of preventing the transmission of the disease, condom distribution, STI diagnosis and referrals, mitigation services like counselling, community support and home-based care.

Please share any success stories.

Our main success story has been to cater for thousands of hard-working construction labourers who are exposed to extreme conditions through our extensive wellness programme. In addition, Adorantha Investments now offers an excellent range of health insurance packages at affordable rates, in partnership with Johan Eksteen & Associates.

13

SOUTH AFRICAN BUSINESS 2019

AN ECONOMIC OVERVIEW OF

SOUTH AFRICA A time of considerable political and economic uncertainty came to an end in February 2018 with the resignation of President Jacob Zuma and the election of President Cyril Ramaphosa.

By John Young

S

erious allegations of fraud and looting of state resources have been levelled against many people in the public and private sectors and a series of commissions of enquiry has been launched by the new administration. South Africa’s fourth president in the democratic era has been secretary-general of the country’s most important union and the biggest political party, a leader of negotiations that led to democracy, chairman of the Constitutional Assembly that wrote the new Constitution and a successful businessman. New ministers of state have been appointed, boards of state-owned-entities (SOEs) have been replaced and promises have been made that corruption will no longer be tolerated

in state departments. International ratings agencies seemed willing to hold off on downgrades of the country’s investment status in response to the changing of the political guard.

The fact that Ramaphosa is also a former coleader of the National Development Plan (NDP) is also good news for the possibility of more certainty in policy-making. The NDP is a detailed blueprint for how to move the country forward. Part of that plan entails setting up deliverable schemes, such as the plan called Strategic Integrated Projects.

One of Ramaphosa’s first actions was to appoint a five-person investment panel whose task is to persuade international decision-makers to invest $100-billion in South Africa Inc. Coordinated by former

SPECIAL FEATURE Rhodes Scholar Trudi Makhaya, the panel also includes respected former finance minister Trevor Manuel. A number of investment summits are planned.

The lifting of a long-term drought and big improvements in the economic returns from the agricultural sector encouraged South Africans to think that the political changes would be a precursor to a steady improvement in the economic field.

There were also good gains in sectors such as trade, manufacturing, and finance and real estate.

However, depressed commodity prices and the fact that South Africa is among the world’s “emerging markets” meant that events in other parts of the world put a damper on the country’s economy going in to the third quarter of 2018. A general election will be held in 2019. The results of this election should allow for a calmer climate and more political certainty.

There is a lot of work to do to get South Africa’s economy back on a solid upward path, but the country has tremendous advantages. Great mineral wealth has underpinned the South African economy ever since the first diamond was stumbled upon in 1867. Gold was found soon afterwards and that industry effectively saw to it that South Africa became an industrialised nation. Now those gold mines are tapering off production but iron ore and platinum reserves are impressively large.

The grains of the central regions of the country, together with the fruits and vegetables of Mpumalanga and Limpopo, the wines and grapes of the Western Cape and the sheep and mohair of the Eastern Cape, all contribute to a diverse and vibrant agricultural sector. There are many strong agricultural companies in the sector. KwaZulu-Natal is the country’s leading sugar area, and has a strong suite in forestry and paper production.

Automotive manufacturing and automotive components are doing well, with major investments by most of the major marques and increased exports a feature of the sector.

The publication in 2018 of a new Integrated Resource Plan (IRP) is another symptom of the type of increased certainty that an economy needs in order to thrive. The IRP is a road map for South Africa’s electricity generation and the previous administration seemed determined to push for an expensive nuclear programme. The latest plan confirms that the already hugely successful drive for renewable energy will be continued and expanded. Apart from being greener and cheaper, the renewable energy programme has also attracted lots of foreign direct investment (FDI) and provided new employment opportunities. (The renewable energy private investor programme is covered in another article in this publication.)

The Drakensberg mountain range in KwaZulu-Natal is a key tourism asset.

SOUTH AFRICAN BUSINESS 2019

16

SPECIAL FEATURE ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo 7%

NAMIBIA

Gauteng Mpumalanga 7% 35%

North West 6%

SWAZILAND

KwaZuluNatal 16%

Free State 5% Northern Cape 2%

LESOTHO

Eastern Cape 8% Western Cape 14%

Percentage contribution of each province to national GDP. SOURCE: STATS SA WWW.STATSSA.GOV.ZA

Trends •

Good signs for the economy include: • Several provincial governments and investment agencies are establishing trade relations and study programmes with BRICS countries. State visits to and from China immediately before and after a major BRICS summit in 2018 gave an indication that Ramaphosa holds high hopes for increased trade with the biggest of the BRICS nations. Two-way trade between the countries in 2017 was worth $39.1-billion. South Africa wants to grow tourist numbers from China. South Africa became the first country in the world to export beef to China in 2017, to go with existing exports of iron ore, platinum and fruit and wine.

• Tourists are visiting South Africa in record numbers (Cape Town’s Air Access programme has

•

• • • •

17

secured tens of thousands of new seats on direct flights to and from the city).

Companies are successfully trading into Africa.

Niche agricultural markets are booming with macadamia nuts being the most successful.

Pecan nuts have done well and wine and grape exports to China are growing.

Private education at school and tertiary level is growing as a sector.

New banking licences have been issued and several more are in the pipeline.

New stock exchanges came on line in 2017 and more are expected.

Investment in infrastructure (especially ICT and railways) is strong. Nedbank’s report on capital expenditure in South Africa stated that the 29 large projects announced in the first half of 2018 were valued at R63.9-billion (Financial Mail). The renewable energy programme

SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE attracted R38-billion and 95% of the capital projects were driven by the private sector.

waters to the north drain towards the north and east. Johannesburg is 1 753m above sea-level.

Most of the country has summer rainfall but the Western Cape, which has a Mediterranean climate, receives its rain in winter. Droughts are not uncommon and although the national average is 464mm, most of the country receives less than 500mm of rain every year. The Western Cape experienced a severe drought which was broken in 2018.

The Orange and Vaal rivers play important roles in water schemes and irrigation and the Limpopo River defines the country’s northern boundary. A number of rivers run strongly from the Drakensberg to the sea, but South Africa has no navigable rivers.

Maize is produced in large quantities in the interior. The dry interior mostly supports livestock in the form of sheep and cattle. South Africa is the world leader in mohair production. Wines and fruit are major export products for the Western Cape while KwaZulu-Natal and the low-lying areas of Mpumalanga are known for sugar cane and tropical and subtropical fruits. Limpopo is a major vegetable producer.

Geography South Africa’s location between the Atlantic and Indian oceans ensures a generally temperate climate. The 2 954km coastline stretches from the border with Namibia on the Atlantic to the border with Mozambique in the east.

The cold Benguela current sweeps along the western coast while the warm Indian Ocean ensures that the Mozambique/Agulhas current is temperate.

South Africa’s coastal plain is separated from the interior by several mountain ranges, mostly notably the Drakensberg which runs down the country’s eastern flank. Smaller ranges in the south and west mark the distinction between the fertile coastal strip and the dry interior known as the Karoo.

The city of Johannesburg is located on the continental divide, whereby water runs south of the city towards the Atlantic Ocean while

Embargoed until: 11:30am GDP Q4 2017

CREDIT: STATSSA

Sector contribution to GDP Q4 2017

SOUTH AFRICAN BUSINESS 2019

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SCOUTS South Africa Changing lives and fulfilling potential.

South Africa

SCOUTS South Africa (SSA) changes lives by providing youth with education, skills, mentorship, values, opportunities, resources, and safe places to be kids, so they can get out of poverty and have a better future for themselves and their families. However, many South Africans cannot afford to participate. For every R42 donated we help a youth experience Scouting!

For over 100 years, SSA’s programmes have shaped the lives and unleashed the potential of hundreds of thousands of South Africans by following a learning-by-doing programme. Central in the Scouting programme is the continuous transference of values such as honesty, loyalty, responsibility and respect; all aimed at empowering the youth to govern their own individual behaviour and to develop strong leadership skills that will equip them to be of service to others and to their communities.

All youth (boys and girls) aged seven to 35 are eligible to join. Our adult leaders are all volunteers.

Currently, 90% of the 190 000 members come from townships and rural areas. SSA’s programmes address the objectives set out in the National Development Plan.

Scouting complements the school and family roles and fills unmet needs by: • Equipping youth with practical leadership, communication and vocational skills to embrace future education and career opportunities • Combating poverty and addressing hunger alleviation through agricultural skills development • Developing youth to be positive citizens and contributors to their communities and country • Enhancing HIV/Aids awareness and first-aid capabilities • Enhancing environmental consciousness through interventions and projects • Providing positive peer-pressure and role models for youth • Building self-esteem and confidence • Promoting a culture of peace

GAVIN WITHERS PHOTOGRAPHY

Who is SCOUTS South Africa?

SSA is a recognised National Scout Organisation, affiliated to the World Organisation of the Scout Movement and is registered as a non-profit organisation.

Support your local community Does your CSI policy address supporting local communities? For R1 680 annually you can assist a group of 40 youth in developing the skills required to succeed in their professional and private lives. To help, please contact SSA CEO Ms Milly Siebrits at ceo@scouts.org.za, or find more information about Scouting in South Africa on www.scouts.org.za

SPECIAL FEATURE

SOUTH AFRICAN BUSINESS 2019

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SPECIAL FEATURE

FACT FILE: REPUBLIC OF SOUTH AFRICA state with separation of powers between the legal and executive authorities. All laws must pass muster with the Constitutional Court which is the ultimate court of appeal on legislation.

South Africa’s legal system is based on Roman Dutch law.

Infrastructure: Ports of Cape Town, Saldanha, Mossel Bay, Port Elizabeth, East London, Durban and Richards Bay. International airports at Cape Town, Ekurhuleni and Durban and domestic airports at all major cities. Special Economic Zones (SEZs) have been established at major ports and are in the process of being set up at inland destinations.

South Africa has 34 000km of railway track and half of the country’s road network is paved.

Most of South Africa’s power is generated by coal-fired power stations run by the state utility Eskom. A vigorous programme to encourage private investment in renewable energy began in 2012, suffered a setback in 2016 but was reinstated under the new administration of President Ramaphosa in 2018.

Resources: Platinum, gold, iron ore, chromium, vanadium, manganese, alumino-silicates, coal, copper, diamonds, uranium, zirconium.

GDP: Nominal GDP estimated at R1 208-billion for Q4 2017, R29-billion more than in Q3 2017 (StatsSA).

Exports: Precious and semi-precious stones, mineral products, base metals, vehicles, machinery, chemical products, vegetable products, fruits, foodstuffs and beverages, paper and pulp.

Main export markets: China, USA, Japan, Germany, UK, India. Membership of BRICS will see focus on Brazil, Russia, India and China.

Imports: Machinery, mineral products, vehicles, chemicals, original equipment, base metals, plastics and rubber, textiles, optical and medical, foodstuffs and beverages.

Main import markets: China, Germany, USA, Japan, Saudi Arabia, Iran, UK, India, France, Nigeria.

President: Cyril Ramaphosa (African National Congress) Capitals: Pretoria/Tshwane (administrative, seat of government), Cape Town (legislative), Bloemfontein (judicial).

Time: GMT+2 Population: 55.91-million (2016) Size: 1 220 813km² Major languages: South Africa has 11 official languages but the main language of government and business is English. Zulu, Xhosa and Afrikaans are widely spoken.

Religion: There is no state religion. The majority of the population are Christian but many other religions are followed such as Islam, Jewish and Hindu.

Currency: rand (100 cents). R15.14 = $1 (September 2018) Political system: South Africa is a republic with an executive president who is appointed by the political party that wins a majority in parliamentary elections. There are three tiers of government: national, provincial and local but the revenueraising capacity of the latter two spheres is limited. Allocations for health and education for example, are made by national government and then administrated by provinces. Eight of South Africa’s nine provinces are run by premiers from the African National Congress; the Western Cape province and the city of Cape Town are administered by the Democratic Alliance.

The third level of government is local. In 2016 the DA came to power in three of South Africa’s biggest cities, supported by other parties such as the Congress of the People and the United Democratic Front. The Freedom Front said it would support these anti-ANC alliances on a vote-by-vote basis, but it would not sign up to a coalition. In 2018 the FF tried to unseat the DA in Nelson Mandela Bay (Port Elizabeth) and Tshwane (Pretoria) but would not form a formal alliance with the ANC. Legal system: South Africa is a constitutional

21

SOUTH AFRICAN BUSINESS 2019

Provinces of South Africa

Eastern Cape Capital: Bhisho

A snapshot of South Africa’s nine provinces.

Main towns: Port Elizabeth, East London, Uitenhage, Graaff-Reinet, Mthatha, Grahamstown (Makhanda).

Population: 6 916 200 (2015) Area: 168 966km² (13.8% of South Africa) Premier: Phumulo Godfrey Masualle (ANC) Key sectors: Automotive, agriculture, agri-processing, forestry, finance, retail, tourism, renewable energy.

Infrastructure: Coega Industrial Development Zone, East London Industrial Development Zone, ports of East London, Port Elizabeth and Ngqura, airports at Port Elizabeth and East London.

Notable tourism assets: Addo Elephant National Park, Mountain Zebra National Park, Wild Coast, Jeffreys Bay, National Arts Festival.

Provincial government website: www.ecprov.gov.za Eastern Cape Development Corporation: www.ecdc.co.za

Free State Capital: Bloemfontein Main towns: Welkom, Sasolburg, Parys, Kroonstad Population: 2 817 900 (2015) Area: 129 825km² (10.6% of South Africa) Premier: Sefora Hixsonia Ntombela (ANC) Key sectors: Agriculture, agri-processing, chemical manufacturing, mining, transport and logistics.

Infrastructure: Maluti-A-Phofung Special Economic Zone, Braam Fischer International Airport, University of Free State, Central University of Technology, N8 Corridor.

Notable tourism assets: Vaal River, Gariep Dam, Golden Gate Highlands National Park, Cherry Festival, Mangaung African Cultural Festival (Macufe).

Provincial government website: www.freestateonline.fs.gov.za Free State Development Corporation: www.fdc.co.za

Gauteng Capital: Johannesburg Main towns: Tshwane (including Pretoria), Ekurhuleni, Vanderbijlpark, Roodepoort Population: 13 200 300 (2015) Area: 18 178km² (1.5% of South Africa) Premier: David Makhura (ANC) Key sectors: Financial and banking, manufacturing, trade, creative industries, media.

Infrastructure: OR Tambo International Airport, Gautrain, major universities and research institutions, large convention centres, FNB Stadium (Soccer City).

Notable tourism assets: Cradle of Humankind, Apartheid Museum, Constitution Hill, Magaliesberg, Soweto tours, Dinokeng.

Provincial government website: www.gauteng.gov.za Gauteng Growth and Development Agency: www.ggda.co.za

KwaZulu-Natal Capital: Pietermaritzburg Main towns: Durban, Newcastle, Ballito, Port Shepstone, Empangeni, Ulundi.

Population: 10 919 100 (2015) Area: 125 755km² (7.7% of South Africa) Premier: Willies Mchunu (ANC) Key sectors: Chemicals, dissolving pulp manufacture, sugar, forestry, automotive, textiles and footwear, mining, oil and gas, logistics.

Infrastructure: King Shaka International Airport, Dube TradePort, Richards Bay Industrial Development Zone, ports of Richards Bay and Durban, Albert Luthuli International Convention Centre Complex.

Notable tourism assets: Hluhluwe-iMfolozi Park, the Drakensberg mountains, iSimangaliso Wetland Park, Durban beaches, South Coast, Zulu cultural heritage, historical battlefields.

Provincial government website: www.kznonline.gov.za Trade & Investment KwaZulu-Natal: www.tikzn.co.za

Limpopo Capital: Polokwane Main towns: Musina, Ba-Phalabora, Bela-Bela, Steelpoort, Tzaneen, Thohoyandou.

Population: 5 726 800 (2015) Area: 125 755km² (10.2% of South Africa) Premier: Chupu Stanley Mathabatha (ANC) Key sectors: Mining, agriculture, tourism, logistics.

Infrastructure: Musina-Makhado Special Economic Zone, Tubatse Special Economic Zone, N1 highway and rail network, new Medupi power station.

Notable tourism assets: Kruger National Park, Mapungubwe Heritage Site, Makapans Valley, Marula Festival, Waterberg Biosphere.

Provincial government website: www.limpopo.gov.za Limpopo Economic Development Agency: www.lieda.co.za

Mpumalanga Capital: Mbombela Main towns: Emalahleni, Middelburg, Sabie, Lydenburg Population: 4 283 900 (2015) Area: 76 495km² (6.3% of South Africa)

Infrastructure: Nkomazi Special Economic Zone, Mbombela International Fresh Produce Market, Maputo Development Corridor, Kruger Mpumalanga International Airport.

Notable tourism assets: Kruger National Park, Blyde River Canyon, the Barberton Makhonjwa Mountains (a UNESCO World Heritage Site).

Premier: Refilwe Mtshweni (ANC)

Provincial government website: www.mpumalanga.gov.za

Key sectors: Agriculture, forestry, mining, steel manufacturing, petrochemicals, pulp and paper, power generation, tourism.

Mpumalanga Economic Growth Agency: www.mega.gov.za

Northern Cape Capital: Kimberley Main towns: Douglas, Upington, De Aar, Port Nolloth, Colesberg.

Population: 1 185 600 (2015) Area: 372 889km² (30.5% of South Africa)

Infrastructure: Upington Special Economic Zone, Sol Plaatje University, Vaalharts Irrigation Scheme.

Notable tourism assets: Six national parks including the Kgalagadi Transfrontier Park, Orange River, spring flower displays, diamond routes.

Premier: Sylvia Lucas (ANC)

Provincial government website: www.northern-cape.gov.za

Key sectors: Agriculture, mining, renewable energy, astronomy.

Department of Economic Development and Tourism: www.northern-cape.gov.za/dedat

North West Capital: Mahikeng Main towns: Klerksdorp, Rustenburg, Brits, Potchefstroom Population: 3 707 000 (2015) Area: 104 882km² (8.6% of South Africa) Premier: Professor Job Mokgoro (ANC) Key sectors: Mining, agriculture, agri-processing, automotive components.

Infrastructure: Hartbeespoort Dam, Pelindaba nuclear research unit, North West University, Bakwena Platinum Highway.

Notable tourism assets: Sun City, Mmbatho Palms Hotel Casino Convention Resort, Pilanesberg National Park, 18 luxury lodges in Madikwe Game Reserve.

Provincial government website: www.nwpg.gov.za North West Development Corporation: www.nwdc.co.za

Western Cape Capital: Cape Town Main towns: Stellenbosch, George, Plettenberg Bay, Beaufort West, Oudtshoorn, Worcester, Malmesbury.

Population: 6 200 100 (2015) Area: 129 462km² (10.6% of South Africa) Premier: Helen Zille (DA) Key sectors: Agriculture, agri-processing, wine and grapes, financial services, manufacturing, tourism, oil and gas, boatbuilding.

Infrastructure: Ports of Cape Town, Saldanha and Mossel Bay, Mossgas oil-to-gas refinery, Cape Town International Airport, Cape Town International Convention Centre, Koeberg nuclear power station.

Notable tourism assets: Table Mountain, Garden Route National Park, Karoo National Park, West Coast National Park, Kirstenbosch Botanical Gardens, Cape Point, the Waterfront, Plettenberg Bay, Route 62, Zeitz Museum of Contemporary Art. Provincial government website: www.westerncape.gov.za Wesgro: www.wesgro.co.za

SPECIAL FEATURE

Energy and the future South Africa’s exciting renewable energy programme is back on track.

A

new Integrated Resource Plan was released by South Africa’s Energy Minister in August 2018. This was a major event because the first Integrated Resource Plan (IRP) was printed in 2010 and was supposed to be updated regularly to guide the nation’s approach to electricity.

Instead, the release of updated IRPs was delayed. In that uncertain environment, there was a strong push for expensive nuclear options.

The release of IRP 2018 brings certainty to the market again. Nuclear will not be considered again until at least 2030. The South Africa Photovoltaic Industry Association (SAPVIA) welcomed what it calls the “rational” draft Integrated Resource Plan.

SOUTH AFRICAN BUSINESS 2019

26

When South Africa ran out of power in 2008, a programme to get private investors to build renewable energy capacity was instituted. It was called the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP). Between November 2011 and July 2016, South Africa received commitments of investments to the value

SPECIAL FEATURE

of nearly R200-billion through this innovative and efficient programme with encouraged private investment into the South African power generation sector.

According to the Department of Energy, the REIPPPP by 2016 had not only delivered multiple millions in investments, it also created more than 30 000 jobs and benefited local community development to the tune of R256-million. Figures released by the South African Wind Energy Association (SAWEA) showed shareholding for local communities reached an estimated net income of R29.2-billion over the lifespan of the projects. Some 14 000 new jobs are expected to be created, mostly in rural areas, and more than R30-billion has already been spent on Black Economic Empowerment (BEE) in the construction phase.

In April 2018, new Energy Minister Jeff Radebe 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 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.

Most commentators on the IRP 2018 have praised its basis in science and the fact that it has adopted the “least-cost” method of analysing options. With renewable energy costs having been dramatically reduced, the IRP concludes that wind, gas and solar power (photovoltaic) will be the three methods to be allocated the most new projects up to the year 2030. The other form of solar power (concentrated solar power, CSP) is very effective and some projects have been successfully commissioned, but it is relatively expensive.

Despite the emphasis on renewables in the IRP, SA’s energy mix is still weighted towards coal. Two new power stations, Kusile and Medupi, are being built by Eskom and 1 000MW has been allocated to private producers to build coal-powered stations known as Thabametsi and Khanyisa.

The IRP has attracted criticism for enabling an expansion of the coal industry.

Koeberg nuclear power station is due to be decommissioned soon after 2045.

In commenting on the IRP 2018, SAPVIA raised a question about the role of the Small-Scale Embedded Generation market in the form of facilities such as rooftop-PV installations and the growth in demand for LPG gas for cooking. The association stated that the 200MW allocation is insufficient to address what it believes is a growing market.

POWER GENERATION TO 2030 Technology

New allocation to 2030

% of mix in 2030

Wind

8 100MW

15%

Gas

8 100MW

16%

Solar (photovoltaic)

5 670MW

10%

Concentrated solar power

300MW

1%

Hydro

2 500MW*

6%

Nuclear

None

2.5%

Pumped storage

None

4%

Coal

1 000MW

46%

* This takes into account the possible Inga project in the Democratic Republic of Congo.

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SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE Gas Gas in various forms is very much in the spotlight. South Africa’s neighbour Mozambique has large offshore deposits and a sub-committee of the Southern African Development Community (SADC) has been tasked with working out a master plan for the region.

A study prepared by the Energy Centre of the Centre for Scientific and Industrial Research (CSIR) reports that wind and solar power (supported by natural gas, biogas and hydro-electric power) could be up to the task of providing “baseload” power. The base load is the permanent minimum amount of power that the grid must be able to deliver to keep the country working. There is special interest in natural gas as a source of a versatile and mobile back-up for the main types of renewable energy: if the sun goes behind a cloud or the wind does not blow, it is very easy to turn on the gas.

This fits in well with the Department of Energy’s enthusiasm for gas-to-power. It is targeting the procurement of 3 126MW through its programme and intends spending R64-billion on port, pipeline, generation and transmission infrastructure in at three key ports, Richards Bay, Coega and Saldanha Bay. Hydraulic fracturing (fracking) has not been in the news for a long time but it has not been ruled out by the government. Controversy arose when this method of extracting gas was proposed for large parts of the central Karoo region. A bill currently working its way through parliament, the Mineral and Petroleum Resources Development Act (MPRDA), will deal with gas supplies and the contentious fracking issue.

Financing The creation of an entirely new economic sector in a very short timeframe has been a boon for financing and banking.

An innovative project was announced in 2018 with the bundling of five projects into one. All of the projects are being built by Enel Green Power but by creating one holding company to distribute the funds, Absa and Nedbank, the lenders, were able to reduce costs. Law firm Norton Rose Fulbright concluded the R3.5-billion financing arrangement.

The support of two of South Africa’s biggest institutional investors, the Industrial 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.

Many partnerships between local and international companies have been established. South African partners are often local energy SOUTH AFRICAN BUSINESS 2019

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companies and representatives of residents. Typically, a community trust is established to represent the interest of the local community.

Investment by black people into the RE programme is not limited to community trusts. Pele Green Energy is engaged with a photovoltaic plant at Touwsrivier in the Western Cape as a shareholder and as a provider of construction management services.

Once the facility starts generating power, Pele will operate and maintain the plant.

Among the international investors active are Enel Green Power (Italy), Scatec Solar (Norway), Glob ele q (UK ), Mains tream Renewable Power (Ireland), Gestamp Renewable Energies and Abengoa (Spain), Solar Capital (Phelan Energy Group, Ireland), SunEdison (USA), ACWA Power (Saudi Arabia), China Longyuan Power Group, (China), Engie (France), juwi Group (Germany) and Tata Power of India. The last-named company has teamed up with the energy unit of Exxaro Resources to form a company called Cennergi.

Partnerships with foreign utilities or power companies are becoming more common, in part because the competition is bringing down the price which bidders are offering to sell power. This makes it difficult for South African firms to compete on their own. Many foreign investors such as large national utilities have strong reserves of cash and don’t need to borrow money.

The new bank created by the five nations of BRICS, the New Development Bank (NDB), has made $180-million available to Eskom to help it integrate power from renewable energy sources to the national grid.

Realising Africa’s Renewable Energy Potential Wind - Solar PV - Commercial & Industrial Solar Rooftop - Hybrid Solutions

w www.genesis-eco.com m +27 (0)83 460 3898 e davin@genesis-eco.com c/o Unit B10, Century Plaza, Heron Crescent, Century City, Cape Town PO Box 363, Newlands, 7725, Cape Town, South Africa

INTERVIEW

Utilising South Africa’s natural assets more effectively The Director of Genesis Eco-Energy Developments, Davin Chown, describes his company’s vision for renewable energy in growing the economy.

What does your company do?

Davin Chown

Genesis Eco-Energy is one of South Africa’s pioneering renewable energy companies providing project development, management and operations services across a range of renewable energy technologies. This includes hybrid PV-biomass energy storage solutions and smart power solutions coupled with energy efficiency. Genesis develops, implements, owns and operates the projects.

Where did you start?

BIOGRAPHY Davin has been active in Genesis since becoming a shareholder in 2002. His experience in the renewable energy sector extends from 1995. He has been part of developing and commercialising the various companies in the Genesis group, which is developing over 2 500MW of renewable energy projects in South and Southern Africa, 600MW of which is part of the REIPPPP. Davin has been the Chairperson for SAPVIA since 2014, served on the board of SAWEA for four years and was a co-founder and Steering Committee member of the SA RE Council. He has also founded a number of sustainability consulting companies.

SOUTH AFRICAN BUSINESS 2019

Jeffreys Bay Wind Farm was one of our first projects back in 2001.

That started as a very small project which was a 15MW wind farm with 5.5MW pumped storage component. As the market changed the project changed and it became one of the very first successful large-scale wind farms as part of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

That was a large project for a first project.

When we started with Genesis we were one of the pioneering renewable energy companies in South Africa. Many people used to say renewable energy is only fit to be rural energy. As technologies matured the markets matured and people have come to understand the scope and scale and application of renewable energy as a modern energy source. We had an old saying which we borrowed and adapted: think big, start small and scale fast. It’s very similar to the succesful and rapid evolution of cellphones and personal communications.

Obviously, the market changed once the national government was looking for power?

We started off understanding that given climate change challenges and global market shifts, the whole move to clean, decentralised and distributed power would eventually catch up with South Africa.

We spent a lot of time and energy in working with government to

30

INTERVIEW the needs of a local municipality and industries who were struggling with power quality. The project was born with the objective of strengthening the grid, strengthening power quality and playing a major role in economic development in the Jeffreys Bay area.

We exited the project when we sold it on at financial close in Round One of the REIPPPP.

get them to understand how renewable energy could play a role in achieving government’s economic and development objectives, ranging from power supply at a much more affordable rate right through to building new skills and catapulting South Africa into a new era. We started with that in 2001, way before the REIPPPP was even dreamt of. We had the vision, we had the tenacity and the wherewithal to stick it through – and that still holds today. It’s in our pioneering DNA. Together with others, we have been able to convince policy-makers that renewable energy has a fundamental role to play in reshaping the way that we deliver and use energy.

Where else are you active now?

We also secured two 50MW PV plants in Round One. In Round Three we were successful with three wind farms, all three of which are now operational and in which we still retain a 15% shareholding. The wind farms in the Northern Cape are Khobab, Loeriesfontein and Noupoort. We are actively developing projects in three Southern African countries.

Did retaining your share represent a shift in thinking?

Genesis is a South African born and bred company.

We aim to hold on to our projects for the long term if we can. We have a long-term vision of owning and operating a significant portfolio of projects.

Genesis is one of the few 100% South African-owned development companies that have been around for some time. We believe that South Africa has wonderful natural assets and they are under-utilised. The country’s natural resources and its human resources are under-utilised, and we’re finding innovative ways to harness both to the benefit our country and its people.

I presume that you are pleased that there is an Integrated Resource Plan (IRP) and that RE is part of it?

Yes, we are pleased. Renewable energy is starting to take its rightful place. The IRP in itself still needs to go a long way to reflect adequately the realities of the 4th Industrial Revolution. We think this will happen as South Africa comes to terms with all the demands for jobs and for economic growth. The economic challenges that we have today need to be reflected in the IRP. Renewables are uniquely positioned to drive economic growth.

Are you interested in technologies besides wind and solar?

We talk about hydro-marine and bio-energy because we also have a very strong interest in the full spectrum of renewables. It is still early days for marine energy though it holds promise.

What underpinned the decision to develop Jeffreys Bay and when did you exit the project?

The team identified an opportunity for wind technology to play a role at local scale and deliver on

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SOUTH AFRICAN BUSINESS 2019

Insulation > Hot insulation for piping, ducting, vessels and industrial buildings > Cold insulation for piping, vessels and the entire LNG operation chain > Acoustic solutions including silencers, noise hood, acoustic panels around construction sites Access Solutions Scaffolding > System scaffolds e.g. Kwikstage > Swing / Suspended or cradle scaffolds > Rope access > Mechanical lifts Fireproofing > Cementitious coatings > Intumescent coatings > Cable tray encapsulation Surface Protection/Speciality Coatings > Various abrasive blasting techniques including grit, hydro, slurry, dry ice and soda blasting > Application of specialised coatings to combat Corrosion Under Insulation (CUI) > Remedial coatings on online hot equipment and piping operating up to 250°C > Industrial cleaning including tank cleaning and lining > Concrete protection Asbestos Solutions > KAEFER is a registered Asbestos removal specialist contractor Industrial Sheeting and Cladding > Sheeting of industrial buildings e.g. boilers and precipitators

Tel: +27 11 974 8123 | Fax: +27 11 974 4628 Email: sales@kaefer.co.za | www.kaefer.co.za

KAEFER

Celebrating 100 years of innovation and sustainable growth

While we are a global player, we adopt a very strong local focus and ensure that we make an indelible footprint in all the locations where we are active.

Since its inception in 1918 in Bremen, a small town in Germany, KAEFER has developed into a market leader for asset integrity services and solutions in Industry, Marine & Offshore and Construction. With over 27,000 employees in 30 countries at 2000 locations, we are a true global player – there for you all over the world.

We offer a wide range of industry solutions such as insulation, access, surface protection, passive fire protection and asbestos removal to the South African and Sub-Saharan market. In everything we do, the client takes centre stage and we take pride in our efficient and innovative approach to overcoming challenges and providing services and solutions.

“Together, we support our clients’ asset integrity by delivering reliable and smarter services and solutions throughout the entire life cycle.”

KAEFER team with their 3rd consecutive award for Painting Contractor of the Year at RBCT.

clients such as SAPREF and Richards Bay Coal Terminal (RBCT) in the KZN region as well as Eskom power stations in Mpumalanga and Limpopo, namely Tutuka, Majuba and Matimba and Medupi power station among others.

“Increasing our competitive strength by being Recognised, more Efficient and Different.”

As part of our commitment to corporate social responsibility, we have completed several community projects in the KZN, Mpumalanga and Limpopo provinces where we operate. We strongly believe that sustainable empowerment is achieved through education; children are the leaders of tomorrow. With this focus on impacting South Africa’s future through education, KAEFER has, among other community projects:

We also pride ourselves in doing things the KAEFER way.

It’s what makes us Recognised, Efficient and Different (RED) and is seen clearly in our consistent safety record, cutting-edge technical expertise and strong ethical values that guide us in everything we do. Furthermore, we’re driven by innovation and by doing things differently. We develop new and tailored solutions that benefit our clients and are frontrunners in digitalisation in our industry. We also assure quality, safety, cost-efficiency and continuous improvement with our substantial in-house expertise and fully integrated services.

›

›

Partnered with SAPREF by contributing towards a project that saw the building of two science labs at the Ogwini and Menzi High Schools in Umlazi. The project, owned and driven by SAPREF, involved converting a classroom at both schools into a fully equipped science laboratory complete with workbenches, cupboards, Bunsen burners, science kits and chemicals. Other teaching aids were also donated to the schools.

Given Phegelelo High School in Lephalale a much needed facelift to their facilities including classroom blocks, toilets and sports grounds.

While we are a global player, we adopt a very strong local focus and ensure that we make an indelible footprint in all the locations where we are active. We have the pleasure to work with and contribute to the success of projects and maintenance contracts for

At KAEFER, we rely on our long history and business continuity which gives us stability and orientation. Our successful track record speaks for itself. And it also serves as a testament to the strength of our strategy, and our vision – to eliminate the energy waste.

INTERVIEW

World first for Maritz Lighting theElectrical way to St George’s Park lighting quality is unique. new possibilities

What sort of work did you do in the beginnin Maritz Electrical is revolutionising stadium experiences.

Kurt Maritz, Managing Director

urt Maritz

When we started, we were two companies helping ea Rosslind and I had a loose partnership. I did the mark execution. We did some basic electrical contracting.

A massive contract to install world-class lighting at the St George’s didin on have that relationshi Parkwork cricket we ground Port contract, Elizabeth has we givenstill Cape-based lighting company Maritz Electrical a head-start as a national leader in LED later. It was for Technical Services of the City of Cape T and theatrics lighting for sports stadiums. electrical side of andDirector sanitation.

As company founder andwater Managing Kurt Maritz says,

“That’s the sort of project that comes around once in a lifetime.”

The project was a global first because it made St George’s the So you found a niche? first stadium to have LED lights fitted with theatrics that was also compliant with International Council standards.

We actively startedCricket looking for things that other elec The R27-million project was completed on time and on budget, either can’t do, don’t want to do or find really hard despite installing lights on top of the Duckpond Pavilion at night in high forwinds. the city was very difficult, but we had those skills The response has been enthusiastic. For Kurt, the television work, which veryimportant few people specialised in. Certainl experts provided the really feedback.

“We cared about SuperSport most and they have been are light black the companies doing thatraving. sortIfofthere work.

BIOGRAPHY and dark spots on the field the cameraman must remember to Kurt Maritz holds a National change the aperture. They said that the lighting was excellent.”

AndElectrical beyond for the city?

Diploma in Accountancy and Maritz wantsthe to be work the “go-to” company with respect Computer Practice, but is to stadium lighting installations. Contracts in Bloemfontein and We got more and more work and in 2004 we regist more accustomed to develop- closer to home suggest this is already happening. “I am pleased continued two something businesses and that ran o ing businesses, as his track to announce we areoperating going to be doing similar in our record proves. His first job was backyard, at Coetzenburg, but not including theatrics. Stellenbosch years ago, when we very amicably parted ways. with First National Bank. While University has signed with us as part of a massive project.” working in sales, Kurt met an For Kurt, the learning process has been exciting. “We are learnourstadium clients,” he says.

“At St George’s that electrical supplier a for National whom he ing applications How didfrom the work comeforabout? urt Maritz holds went to work. His contracting exciting time when you are waiting for an umpire’s decision, we did We asked, “What is nobody plomasection in Accountancy with sound and else the lights that go withelse it. Wedoing?” also put a The answ grew, and he decidedand to a heartbeat ‘6’ in the lights.

The umpires asked if we could keep the light level go on his own and started MarI had the p omputer Practise, but is and sports field lighting and maintenance. itz Electrical in 2000. Through on the pitch the same and do the theatrics at the same time. The ore accustomed to and developing onarethe oldInGreen Sports his leadership skills vision- possibilities endless. athletics,Point for the Stadium.

100 metres, you could field ligh ary outlook, he now employs in kill all the lights and follow the guys down the straight.” g businesses, as his track re- most dynamic part of the business. excess of 150 staff. The comMaritz Electrical is the approved installer of Musco Lighting. ord proves. firstsmall jobbusiwas A visit to Musco headquarters in the US made Kurt aware of how pany hasHis benefited So the 2010 Soccer World good for grown skills and given system at a stadium can create new Cup revenuewas sources ith Firstnesses, National Bank.

While the lighting lifestyle improvements to staff, for clients. As Kurt comments, “If you have a light show before the Interestingly, Maritz didandnot of theforFIFA stad orking their in families sales,andKurt met an game, communities. you have better crowd control theredo is anone opportunity

BIOGRAPHY

ectrical supplier for whom he AFRICAN 2019 ent to SOUTH work.

His BUSINESS contracting ection grew, and he decided to o on his own and started Maritz

still one of our busiest periods ever because FIFA c Fund to34build hundreds of community sports fields, a we got involved.

INTERVIEW vendors to sell memorabilia or food. The same when you leave, it creates a new revenue stream. We are learning as we move along.”

Stadium lighting falls within the broader category of large-area lighting. The global move to LED lighting has been a positive thing for Maritz Electrical. In South Africa, however, Kurt notes that there is difference between the indoor and outdoor scenarios.

For indoors, “everybody is going that route” but that return on investment (ROI) is somewhat different in the outdoor setting.

“With street lighting and security lights (which burn for a long time) the ROI is good. For large areas like sewerage works or plants the ROI is something like three to five years and the power saving is there. That is not the case with sport stadiums, so the equation is different.”

Maritz Electrical is active in large areas such as Cape Town’s Grand Parade, airport runway lighting and city council facilities.

The company operates in the commercial, industrial and public sectors and offers a wide range of services.

A new area for Maritz Electrical is reticulation and electrification: low-cost housing projects, street lights, road-side furniture and mini-substations. Says Kurt, “It is a big market and we can’t ignore it. Our new sales manager comes from this background and we are building skills in this area. We are involved in two major projects in the Western Cape, at Overstrand and Stellenbosch municipalities.”

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With an expanding workload, Maritz Electrical made a move in 2018 to new premises in Athlone. “We have moved 150 staff from three branches into one customised 3 000-squaremetre facility. It is designed in such a way that we have enough space for 50% expansion. Half of the massive space we dry-walled so that we have a suite of offices.”

There are no specific targets, but Kurt is clearly looking forward with anticipation: “We don’t have any ceiling we want to hit. Our engine is our sales department. As much work as they bring in, that’s how we will grow.”

The staff of Maritz Electrical includes three Master Electricians and 75% of the staff complement is technical.

SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE

Special Economic Zones Promoting industrial development via incentives.

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outh Africa is investing in Special Economic Zones (SEZs) as a major plank of its industrial development policy. A range of incentives are available to attract new skills and develop new industries.

Key goals behind the establishment of SEZs •

• • •

To encourage industries to develop in clusters, leading to economies of scale, skills-sharing and easier access by suppliers To create industrial infrastructure to promote investment To promote cooperation between the public and private sectors To use the zones as a launching pad for other plans to further development.

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Apart from attracting foreign direct investment (FDI) and boosting employment, SEZs can also play a role in helping to add new sectors or subsectors to an economy.

South Africa is targeting a variety of sectors in SEZs around the country, but there is a emphasis on beneficiation, mainly of minerals but also agricultural processing. There is a strong feeling that South Africa can do much more with the product of its soils – whether that be using manganese to convert iron into steel or creating fruit juices out of apples and pears.

Special Economic Zones are created in terms of the Special Economic Zones

SPECIAL FEATURE

Act of 2014 (Act 16 of 2014). The act defines SEZs as “geographically designated areas of the country that are set aside for specifically targeted economic activities, and supported through special arrangements and systems that are often different from those that apply to the rest of the country”. Lower corporate tax rates and duty-free imports are among the advantages that accrue to investors.

SEZs come in different forms: South Africa has several existing Industrial Development Zones (IDZs) and a Free Trade Port (FTP). The Coega IDZ (Nelson Mandela Bay Metropole) and the Dube TradePort at the King Shaka International Airport outside Durban are two well-known examples.

The most recently licensed SEZ is the Musina-Makhado SEZ in Limpopo, where the facility’s strategic location on the border with Zimbabwe is allied to the strong mineral resource in the surrounding countryside.

Other licenced IDZs are at Saldanha Bay, East London and Richards Bay. The Dube TradePort aims to leverage its proximity to an airport. In the same way, aerotropolis developments are mooted for Ekurhuleni (OR Tambo International Airport) and Cape Town International Airport.

Coega IDZ has attracted huge investments from a variety of Chinese firms in the engineering, solar manufacturing and automotive sectors. This includes an investment from Beijing Automobile Corporation (BAIC) which took a 65% stake in a multi-billion-rand joint venture with the Industrial Development Corporation with the intention of producing 100 000 vehicles. First Automotive Works (FAW) has a R600million assembly plant in Zone 2 at Coega.

Richards Bay (pictured), apart from being the country’s main site for the export of coal, is also a registered Industrial Development Zone (IDZ) and consequently is in a position to attract investors in a range of sectors. Recent developments at RBIDZ have seen an investment in an oil and gas facility and it is hoped that the

ocean will yield finds of gas to provide cheap feedstock.

The Maluti-A-Phofung Special Economic Zone takes advantage of the strategic position Harrismith holds in the Free State’s northeastern corner. The N3 highway carries huge volumes of cargo between Gauteng and the ports of KwaZulu-Natal so it is logical that the first focus of this SEZ is logistics.

Plans are far advanced for the official recognition of an SEZ at Upington in the Northern Cape. The 400ha site of the Upington SEZ is close to the regional airport and is well served by access roads. One of the goals is to capitalise on the existing solar power industry by promoting special investment packages to investors in that field, and encouraging the development of skills and services to support that sector within the SEZ. Another type of SEZ is an Export Processing Zone (EPZ). All of these interventions are intended to form of broader trade and investment plans such as National Development Plan (NDP) and the Industrial Policy Action Plan (IPAP).

The NDP is a broad-strokes plan that seeks to coordinate development in a range of sectors, and promotes ambitious infrastructural projects.

South Africa’s most recent IPAP has a manufacturing focus, so beneficiation fits well into the idea of diversifying and strengthening the country’s ability to make things.

In the context of the new and burgeoning renewable energy sector, the state (through the Department of Trade and Industry, dti) can pass legislation that requires developers to increase the level of local content on the solar panels or wind turbines that are used.

Specific incentives relating to energy savings and reductions in environmental impact are available, both from Eskom and the dti.

Within the dti’s Manufacturing Competitiveness Enhancement Programme, there is a Green Energy Efficiency Fund, all of which are designed to make investment more attractive.

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SOUTH AFRICAN BUSINESS 2019

PROFILE

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

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pington, the second-biggest town in the Northern Cape, is located along the banks of the Orange River and is a popular tourist destination with warm weather and long sunny days. The Northern Cape is ideally situated to serve the following industries: solar energy, mining, agricultural, aviation and other industries. The Upington SEZ has a geographically designated area set aside for specifically targeted economic activities to accelerate industrial development.

In the heart of the Green Kalahari, right next to Upington International Airport, there is more than 500ha of prime land available to be utilised by investors (440ha for the Industrial Park and 85ha for the Aviation Park).

Upington is situated 130km from the Namibian border post and about 350km from the border post to Botswana.

Upington also has good access roads such as the N10 and the N14, effectively linking up Namibia and Botswana.

The Upington International Airport has a 5km-long

KEY CONTACTS Mr Thobela Dikeni, Chief Executive Officer, NCEDA Tel: +27 53 833 1503 and 060 997 7202 Babalwa Mbobo, Sector Specialist, Upington SEZ Tel: +27 54 333 1136 and 071 016 5813 Email: bmbobo@upington-sez.co.za Dr. Mphulane Ramorena, Project Executive Tel: 076 442 4437 Email: mramorena@upington-sez.co.za Physical address: 24 Schroder Street, Upington 8801 SOUTH AFRICAN BUSINESS 2019

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 well-developed economy and active business community supported by government and government parastatals.

Industrial hub

The main objective for the proposed Upington SEZ in the Northern Cape Province is to establish a worldclass industrial hub to service the Southern African Development Community (SADC) region in the following sectors: • Renewable energy with the focus on solar component manufacturing • Aeronautics through the development of an Aviation Park • Mineral beneficiation • Agro-processing • Astronomy exploration • High-value micro technology.

Together with our partners, the Northern Cape Economic Development Trade and Investment Agency (NCEDA), the Northern Cape Department of Economic Development and Tourism, the National Department of Trade and Industry (dti) and the Airports Company South Africa (ACSA), we invite all interested investors to contact us.

NCEDA: 6 Monridge Office Park, Cnr Kekewich & Memorial Street, Kimberley 8301 Tel: +27 53 833 1503 Fax: +27 53 833 1390 Website: www.nceda.co.za

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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 open BIOGRAPHY land are positive factors. Upington is close to the northern border of Thobela Dikeni has held various South Africa which makes it convenient and strategic from the African managerial positions in the continental perspective and its relative remoteness enhances security private sector, including senior 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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SOUTH AFRICAN BUSINESS 2019

PROFILE

Maluti-A-Phofung Special Economic Zone Attractive incentives and good infrastructure make for a compelling investment proposition.

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he Maluti-A-Phofung Special Economic Zone was officially launched on 25 April 2017. The Maluti-A-Phofung Special Economic Zone (MAP SEZ) is strategically located in the eastern part of the Free State Province. Its location and access to good transport infrastructure provides it with an advantage as a logistics hub.

The main objective of the MAP SEZ is to attract foreign and direct investment and to stimulate the local economy as well as creating meaningful work opportunities. The SEZ will further provide support to local businesses, skills transfer and accelerate the establishment of manufacturing activities in creating local and international trade with value-added benefits.

The zone has 1 038ha of land which is divided into four precincts, including one for cross-docking and a container terminal. The proximity to major agricultural production areas makes an attractive investment destination for food processors. Taking advantage of its central location on the N3 road corridor between Johannesburg and the busiest port in South Africa, Durban, the Maluti-A-Phofung Special Economic Zone’s ultimate value proposition is to create a prosperous trade city with a functional trade ecosystem.

Sectors The main sectors of the Maluti-A-Phofung Special Economic Zone are: • Automotive • ICT • Agro-processing • Logistics • Pharmaceuticals • General processing.

Incentives A number of incentives are available to investors, including the use of a Customs Controlled Area tailored for manufacturing, storage,

CONTACT DETAILS Contact person: Maphoka Setai, Office Manager Address: Cnr of De Lange and Amanda street, Sthiane, Harrismith 9880 Tel: +27 51 4000 800 Email: maphoka@mapsez.co.za Website: www.mapsez.co.za SOUTH AFRICAN BUSINESS 2019

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repackaging, processing and beneficiation: qualifying entities will pay15% tax (not 28%), 10% rebate on buildings or improvements for 10 years, employment tax incentives reduces the amount of PAYE, grants are available to support machinery for production.

A One-Stop Shop strategy has been introduced to reduce bureaucracy and red tape for government approvals and applications processing, permits and licences.

Achievements MAP SEZ has attracted a number of investors which have been approved by the National Department of Trade and Industry (dti) for top structure funding to the value R200-million. The investment value created as a result amounts to R550million over the period of five years.

A landmark investment into the MAP SEZ occurred with the launch in June 2018 of the Kevali Chemicals plant. Kevali produces products for use in hygiene and sanitation, watertreatment and adhesives. The investment forms part of the promotion of black industrialists by the dti.

Small businesses have been empowered through the awarding of procurement contracts for goods and services. The local community has been empowered through the provision of jobs to locals on all the completed and ongoing capital projects.

INTERVIEW

Bringing work opportunities and skills transfer The CEO of the Maluti-A-Phofung Special Economic Zone, Mpho Mgemane, relates how new investments are ramping up.

Mpho Mgemane

How does the MAP SEZ benefit from its strategic location?

The zone is strategically situated on the intersection of the N3 and N5 highways. These are some of the country’s most important and busiest freight routes and provide the MAP SEZ with prime access to the busy Durban port, the large Gauteng commercial market, the Port Elizabeth and Cape Town ports and also provide a link to imports and exports to and from SADC countries.

What are the main sectors you are targeting to invest in the facility?

There are six priority sectors: automotive, agro-processing, logistics, general processing, ICT and pharmaceuticals. Agro-processing is our main targeted sector.

How far advanced is infrastructure development at the SEZ?

Bulk infrastructure development of the park is being undertaken in three phases. Phase 1 Bulk has reached over 75% completion and is scheduled to BIOGRAPHY be completed by January 2019. The subsequent phases will be led by the Mpho Mgemane graduated with coming of new investments. We have also signed on three new investors an honours degree in Industrial with their top structure construction scheduled to start in February 2019.

Psychology from the University of South Africa. She was born What is the significance of a chemical company deciding to in Soweto, Johannesburg, but locate their factory at MAP SEZ? attended high school in Qwa This is our first official investment as an SEZ. The chemical plant will be Qwa. She acquired considerable relocated to its new custom-built facility following its construction. The knowledge in asset capital chemical plant has acted as a live advertisement for the SEZ to other invesfunding and deal-making during tors as the Harrismith area is not well known as an industrial hub. This facility her time with Nedbank, Absa not only brings work opportunities to the area, but we are looking forward and Standard Bank. After a to the skills transfer that will be made possible through its operations. spell as Executive Director of the Food Gardens Foundation, What other significant investments have there been?

Mpho led the Expanded Public We have two abattoirs (one beef abattoir and one pork abattoir) with conWorks Programme of the Free struction to commence in the near future. We are also finalising investment State Provincial Government and deals with another chemicals plant, a human hair manufacturer, a beverage became MAP SEZ CEO in 2016. processing plant, a farming vehicle assembly plant and a biogas facility.

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SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE

Healthcare Health counselling at work is a growing trend.

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ne of South Africa’s most innovative and successful manufacturing companies signalled in 2018 that its growth path is continuing. Aspen Pharmacare sells medicines and products in 150 countries from 25 manufacturing plants at 17 sites. In 2017, revenue was R41.2-billion.

The opening in May 2018 of a R1-billion specialised product facility in Port Elizabeth will add 500 jobs to the existing complement of 2 000 staff members. The new plant will make products for chronic conditions, a new departure for the company which until now has focussed on generics. Annual production is planned of about 3.6-billion tablets.

South Africa has one of the world’s biggest HIV/Aids programmes.

The National Department of Health’s Centralised Chronic Medicines Dispensing and Distribution programme aims to reach six-million patients on treatment by 2021: it is currently serving 4.4-million patients. In mid-2018, Pharmacy Direct, an Afrocentric business, spent R100-million on upgrading a warehouse for distributing medicines to state patients.

This business is likely to grow if the state goes ahead with plans for National Health Insurance. The NHI intends to create a single fund that will buy services on behalf of all South Africans.

South Africa’s pharmaceutical sector is worth approximately R20-billion annually. Although there are more than 200 pharmaceutical firms in the country, large companies dominate, with Aspen (34%) and Adcock Ingram (25%) the key players, followed by Sanofi, Pharmaplan and Cipla Medpro. A number of large pharmaceutical firms have made significant investments. The National Association of Pharmaceutical Manufacturers (NAPM) has re-branded as Generic

ONLINE RESOURCES Generic and Biosimilar Medicines of Southern Africa: http://gbmsa.org National Health Insurance: www.health.gov.za/index.php/nhi Innovative Pharmaceutical Association South Africa: http://ipasa.co.za/ South African Medical Research Council: www.mrc.ac.za South African Medical Technology Industry Association: www.samed.org.za

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SECTOR INSIGHT National Health Insurance could be a game changer. and Biosimilar Medicines of Southern Africa.

A new field opened up in the pharmaceutical industry when the South African Health Products Regulatory Authority (SAHPRA) gave the go-ahead for the production of a biosimilar drug in July 2018, the first time this has been allowed in South Africa.

Teva Pharmaceutical Industries became the first company to win a licence with its version of Amgen’s filgrastim, a white blood cell booster.

Taking health education and counselling into communities and the workplace is a trend that is growing. A focus on prevention, risk assessments and profiling assists people in avoiding illness or managing their health.

A cheap plastic heart valve, research on radiation treatment of cancer using Gold Nano particles and posture support wheelchairs and positioning devices that allow greater independence and participation of disabled people – these are some of the inventions and innovations coming out of the Western Cape health research and manufacturing sector where provincial and national funding is available for innovation.

INTERVIEW

Selfmed Medical Scheme Christo Becker, the Principal Officer at Selfmed Medical Scheme, outlines the advantages of a self-administered scheme.

How did Selfmed begin and how has it evolved?

The Scheme initially formed part of the Sanlam Life Insurance stable, created in 1965 and formally registered in 1972. This makes Selfmed one of the most experienced medical aid schemes in the industry. At Selfmed we have a handson approach, and this resulted in our taking control of our own Client Services Centre, or Excellence Centre in 2006. We thereafter progressed to taking over the full administration function in 2010; also recently bringing our Managed Healthcare inhouse.

Christo Becker

What is your market?

Historically membership comprised individuals and their families. The introduction of the Selfnet options in 2015 and 2016 allowed us to reach a younger audience. This was also the opportunity to branch out into corporate marketing, offering membership to blue-collar employees. We have seen great success in this area.

Is there flexibility for clients?

The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med XXI, Selfnet and Selfnet Essential. Each product is designed specifically for a life stage, as the needs of a member changes. As the person advances in life and starts a family they will move towards the Med XXI or Selfsure options, for example, which have a wider range of benefits relevant to a young family.

BIOGRAPHY Christo started his 21-year career in healthcare as a paramedic in Fire and Disaster Management Services. In 2001 he completed an MBA with the intention of moving his career towards hospital management. He has worked as hospital manager in several private facilities.

His passion for people and strategy has ensured that the hospitals he has managed have grown rapidly while focusing on sustainability. With selfmotivation and a commitment to continual improvement, Christo implements positive changemanagement.

How is Selfmed handling ever-rising costs?

The biggest challenge facing the healthcare industry is the significant rise in healthcare costs, with healthcare inflation exceeding general inflation. This compels us to proactively introduce mechanisms to manage these costs. Selfmed is applying machine learning to the claims database to draw a more accurate picture of a member’s specific needs. The information can then be used to engage members on an individual basis – if we can intervene early it is to the benefit of all parties.

How does SelfMed Medical Scheme differentiate from competitors?

In a traditional medical aid/administrator environment all administered functions rest with an administrator. As such, a medical aid would be fully dependent on its outsourced administrator to inform it of any issues relating to its members.

Being fully self-administered allows Selfmed to take total ownership of all its member interactions and can address any administrative problems or complaints immediately. We do not have an electronic routing system, you speak to an individual. This personalised hands-on approach is fundamental to our model of building a credible member experience.

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SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE

Business in Africa Trading with African neighbours is set to become easier.

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he signing of the Kigali Declaration in March 2018 marks a significant shift in expectations for intra-African trade. Regarded as the first step towards the establishment of a Continental Free Trade Area (AfCFTA), the commitment shown by African political leaders shows that the issue is receiving priority status.

The continent’s population of 1.2-billion represents a huge and potentially lucrative market, with the 55 members states of the African Union having a combined gross domestic product (GDP) of $2.5-trillion. However, many African countries have stronger trading ties with countries on other continents that they do with their neighbours.

The reasons for this are long-standing and complex and will require investment in logistics and infrastructure to overcome. But political will is a major component in the equation and the Kigali Declaration shows an intention to make trading among Africans easier.

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An AfCFTA Business Forum has been established to allow for private sector engagement with the formulators of policy. This should allow for realistic and workable trade agreements. The United Nations Economic Commission for Africa (ECA) has suggested that by the year 2022, the AfCFTA could lead to an increase in intraAfrican trade by as much as 52%.

Fully 30% of South Africa’s exports are to other countries in Africa, but a massive 83% of this volume is into Southern Africa.

SPECIAL FEATURE This means that the potential for South Africa to grow its exports into other parts of Africa is enormous, if the infrastructural obstacles can be overcome.

The Southern African Development Community (SADC) is a 16-member inter-governmental organisation with its headquarters in Gaborone, Botswana. Other members include South Africa, Lesotho, Malawi, Namibia, Tanzania, Comoros and Mozambique.

SADC is one of several regional organisations on the continent and there have been moves in the past for cooperation between these bodies. For example, a tripartite summit was held between the leaders of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and SADC. The AfCFTA may supercede these agreements as it applies to all of Africa.

SADC’s theme for 2018/19 is “Promoting Infrastructure Development and Youth Empowerment for Sustainable Development”. This is an extension of the body’s focus on industrialisation, while also putting the focus on infrastructure development, youth empowerment and sustainable development.

The 38th summit of SADC held in Namibia in 2018 approved the creation of the SADC University of Transformation, in the form of a virtual university. This is further intended to support industrialisation through subjects such as technology transfer, innovation, digital and knowledge economy, entrepreneurship, commercialisation and enterprise development. SADC has a Revised Regional Indicative Strategic Development Plan (RISDP) 2015-2020, which deals with industrialisation, regional infrastructure, agriculture and strategy.

Corridor development is an important part of growing intra-African trade. Within the corridors of development, red tape and infrastructure are other key elements.

South African retailer Shoprite spends about R20 000 per week in permits, and long waits at border posts are routine. But the Chirundu one-stop border post in Zambia has reduced transit times by a third.

Passenger transport delays have been reduced from three hours to 30 minutes and freight is now cleared in one day instead of three.

A number of corridor projects are in the pipeline or have already been implemented. The Maputo Development Corridor has successfully linked the thriving industrial and business centre of Gauteng Province in South Africa with the Mozambican port city of Maputo. The idea of corridors has been adopted by the Infrastructure Consortium for Africa (ICA), and several corridors have been conceptualised since that decision, for example the Northern Corridor of Central and East Africa.

A corridor strategy relies on infrastructure, with inter-related plans being developed involving the upgrading and standardisation of facilities at ports, railway lines, customs posts and energy projects.

South African rail, ports and pipeline operator Transnet is already very active in African countries north of the South African border and is intending to offer its services more widely.

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The Sustainable Development Investment Partnership (SDIP) comprises 30 institutions which aim to see 16 African infrastructure projects (valued at more than $20-billion) carried out. The founders of the SDIP were the World Economic Forum (WEF) and the Organisation for Economic Co-operation and Development (OECD) and other members now include the Bill and Melinda Gates Foundation, the Senegal Strategic Investment Fund (FONSIS), the US Agency for International Development (USAID), the Industrial Development Corporation of South Africa (IDC) and the Development Bank of Southern Africa (DBSA).

The Export Credit Insurance Corporation of South Africa (ECIC) exists to help trade and investment across borders. ECIC can provide insurance for bank loans that are taken by investors and South Africans can get insurance for investments and for small and medium enterprises there is a product available (performance bonds to anyone exporting capital goods and services.

The South African Department of Trade and Industry plays a key role in terms of promoting trade between South Africa and the rest of Africa, but also supports regional bodies such as SADC and promotes the kind of integration contained in the plans of the New Partnership for Africa’s Development (NEPAD) and the African Union’s Agenda 2063. The dti’s Africa Export Council (AEC) was inaugurated in 2016 with the goal of promoting South African products and services in Africa.

SOUTH AFRICAN BUSINESS 2019

FOCUS

Billion-dollar intra-African financing programme launched The ECIC proudly supports South African exporters and investors.

A $1-billion financing programme

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he Export Credit Insurance Corporation of South Africa SOC Limited (ECIC) was formed as a dedicated export credit agency to cater for medium to long-term export transactions.

The short-term transaction market was amply catered for, but medium to long-term export transactions still had a need for a dedicated export credit agency, hence the formation of the ECIC. Acting as a catalyst for private investment, the ECIC steps in where commercial lenders are either unwilling or unable to accept long-term risks.

Along with the ECIC’s major shareholder, the Department of Trade and Industry, the ECIC makes use of market research tools and specialised business development units to create new insurance products that support the government’s export promotion objectives. The revised performance bond insurance product, which was launched in 2016, is one such example.

“The ECIC has recently developed new products, including lines of credit, lease and return of plant equipment. It also continues to be a catalyst for an increased lending capacity by financial institutions by entering agreements with other export credit agencies (ECAs). In this way, it creates a framework for both re- and coinsurance,” explains the Chief Executive Officer, Kutoane Kutoane. To this end, it has adopted a comprehensive plan of action aimed at actualising cooperation programmes for mutual benefit in conjunction with, among others, BRICS ECAs, Afreximbank and African Trade Insurance. The ECIC is also able to price African risk more competitively, given its knowledge of the African market.

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In 2018 the ECIC, in partnership with the African Expor tImport Bank (Afreximbank), launched the South AfricanAfrica Trade and Investment Promotion Programme (SATIPP), a $1-billion financing programme to promote and expand trade and investments between South Africa and the rest of Africa.

The financing institutions will work together to identify, prepare and appraise trade transactions and projects, explore co-financing and risk-sharing oppor tunities and share knowledge, with particular emphasis on intraAfrican trade matters, through technical cooperation, staff exchange, research and joint events.

The joint initiative will support businesses through capacity building and market information initiatives. It will also provide advisory services and guarantees to South African investors seeking trade and investment opportunities in selected African countries.

SUCCESSFULLY GROWING OUR PORTFOLIO IN FRONTIER MARKETS

Since 2001 we have continued to provide commercial and political risk insurance for cross-border transactions, offering risk mitigation solutions to South African exporters of capital goods and investors . We have partnered with credible financial institutions and believe through partnerships economic growth can be achieved. As Export Credit Insurance Corporation of South Africa (ECIC) we are committed to supporting our South African businesses who export and invest in capital projects beyond our borders.

If youʼre planning on exporting to or investing in capital projects beyond our borders, contact ECIC for assistance +27 12 471 3800 | info@ecic.co.za | www.ecic.co.za ECIC is a registered service provider with the FSB No. 30656

In partnership with

SPECIAL FEATURE

Investing in Lesotho to become easier and faster The new Lesotho National Development Corporation (LNDC) Strategic Plan is outlined by the incoming Chief Executive, Mohato A Seleke.

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s the main parastatal of the Government of Lesotho, the Lesotho National Development Corporation (LNDC) is charged with the implementation of the country’s industrial development policies. The corporation’s role is to promote Lesotho as an attractive investment location for foreign, domestic and indigenous investors. The LNDC is the first point of contact for investors who intend to set up operations in Lesotho. In 2016, the LNDC received an Investment Promotion Award from UNCTAD (United Nations Conference on Trade and Development) at the 14th UNCTAD Conference.

We are a commercially operated entity that has been making good profit and maintaining a healthy balance sheet in striving to pursue its founding mandate and higher purpose to the people of Lesotho.

We are committed to moving into the next five years with a new and strong sense of meaning: to make an impact in a truly fundamental way in Lesotho’s economy. To this effect we have developed and launched a Strategic Plan 2018-2022 which intends to mobilise our private sector and the resources at our disposal around one common purpose, to develop the first generation of Basotho industrialists. This is crucial to lifting thousands of rural communities out of poverty and unemployment by consciously mainstreaming their participation in the supply chains of strategic investments.

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This is not only about jobs. It is also about raising income levels and creating generational wealth and capital gains for the people of Lesotho. This is our raison dêtre.

We seek to put significant financial resources and technical know-how into a sector where over just 70% of our people earn a living, subsistence agriculture. This is critical to realising the ideals of shared, inclusive and sustainable growth as espoused in the National Strategic Development Plan II (NSDP II). We are repositioning the country as an agricultural powerhouse in Southern Africa by developing local supply chains and plugging into regional value chains.

We have identified 21 priority products which already have international market access or hold a great potential to do so. These include meat and meat products, fruits and vegetables, utilising our abundant and quality natural resource. The textiles and apparel manufacturing value chains also hold potential and we aim to gain a bigger share in the light-engineering value chain.

We are aiming to partner with, support, incentivise and reward leading export-oriented companies by scaling up their productive capacity, facilitating international market access and integrating them into supply chains.

SPECIAL FEATURE National champions Secondly, we are going to set up new companies, or national champions, within the priority areas and related product categories.

We have already made great strides here to attract the necessary Foreign Direct Investment by initiating partnerships with renowned regional and global players in those target product lines. We can no longer afford to look only inward within the geographic borders of Lesotho in diversifying our economy. We are talking to strong partners and are seeking more of those to initiate, promote and facilitate the development of vertically integrated industrial activities. The intention is to establish national champions that are capable of competing at par with their regional and global peers in strategic industries, particularly in manufacturing and hightech agri-processing. For the first time, building industries and diversifying our economy will mean cross-border acquisitions of strategic assets, raw materials, distribution channels and technology by these national champions. This represents a real chance to turn the tide for Lesotho. These companies will be pitched at the necessary scale and scope with the right technology, product and process certifications and with top talent to lead them.

Entering foreign and regional markets early is no longer an option for us as a country, but it has now become a vital necessity.

With this strategic roadmap, we are flipping our resource allocation almost completely, to cover talent, capital and time commitment.

Activities in high-value manufacturing and high-tech agri-business and related supply chains will consume a significant portion of these resources.

In the next five years, we are looking at modern high-tech agriculture as an area for big business, big investment,and big impact in terms of jobs, incomes and overall economic competitiveness. In manufacturing, Basotho entrepreneurs will be integrated into local, regional and global supply chains. We will meticulously assess and evaluate the impacts of these investments on the economy, on social equity and the environment.

Thirdly, in line with the NSDP II, we aim to facilitate further investments in our national priority sectors such as tourism and the creative industries as well as the development of infrastructure and

CONTACT DETAILS Lesotho National Development Corporation Address: Development House, P Bag A96, Kingsway Road, Maseru 100 Contact person: Marina Bizabani, Foreign Investment Manager Tel: +266 22 312012 Email: bizabani@lndc.org.ls or ip@lndc.org.ls Website: www.lndc.org.ls

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Mohato Seleke joined the Lesotho National Development Corporation in December 2017.

Within six months he released a five-year corporate strategy mapping the direction for the development of industry, and its contribution to the creation of inclusive economic growth in Lesotho.

technology-based industries. We are keen to welcome the world to experience our mountainous scenery, green summers and snowy winters on their visits to Lesotho or in consuming film and digital products made in Lesotho.

We recognise that a superior strategy and a winning business model are not enough. We are therefore building our nation brand “Brand Lesotho” and undertaking a reform process to streamline our investment climate to deliver on our promise. This new strategic posture also demands a reconfigured organisational platform.

The LNDC is therefore being realigned to deliver on its key performance parameters with speed and excellence in execution.

I invite investment and technical partners to come and build this new impactful and rewarding journey of Lesotho’s with us.

SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE

Botswana: investment and trade hub A fast-growing economy at the heart of Southern Africa. diamonds in the world by value. Its people have a rich, diverse culture and embrace all who come to Botswana with a welcoming warmth. The official language of the country is English; Setswana is the national language.

• Gross Domestic Product 2016: $15.6-billion • Per capita GDP: $7 018

Investment Opportunities There are investment opportunities in each of the following sectors: • Mining, including diamond beneficiation, coal and soda ash • Cargo, freight and logistics • Leather and leather goods • Automotive • Agriculture • Financial and business services • ICT • Health • Education

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otswana is a peaceful country with a fast-growing economy at the heart of Southern Africa, bordered by Namibia, Zambia, Zimbabwe and South Africa. Its central location makes Botswana the perfect gateway for reaching the whole of the Southern African Development Community (SADC), making it the ideal investment and trade hub.

With a stable political system, real GDP growth rate of 4.3% (2016) and an adult literacy rate of 83% (World Bank), Botswana truly is an ideal investment destination.

Botswana has deservedly become a favoured destination for international tourists as a land of unmatched beauty, plentiful in wildlife and rich in culture. The landscape gives it a magical and dreamlike quality, from its prominent salt pans to diamond-rich deserts and lush flood plains. The business potential of this friendly nation is less well known.

Since peacefully gaining its independence in 1966, Botswana has managed to exploit its wealth of underground resources, especially diamonds, to develop not only its diverse economy but also its people. Botswana is the biggest producer of

SOUTH AFRICAN BUSINESS 2019

The Big Five – reasons to invest Botswana provides a peaceful and stable environment to its citizens and investors and has maintained peace since independence in 1966. Reasons to invest include: • Zero tolerance for corruption, a sound legal system and adherence to the rule of law • Botswana is the least corrupt country in Africa, ranked 35 out of 176 in the world in 2017 (Transparency International) • World’s second most attractive investment location (Altman’s Baseline Profitability Index (BPI), New York University) • Highest sovereign credit rating in Africa • One of the world’s fastest growth rates in per capita income.

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SPECIAL FEATURE

Trade agreements and access

Easy to do business

Botswana provides preferential access to the entire marketplace of the Southern African Development Community (SADC) which has more than 292-million people, duty-free access to South Africa, Namibia, Lesotho and Swaziland, and duty-free and quota-free access to the European Union (EU) market. Imported machinery and equipment for manufacturing purposes do not attract duties.

In addition, Botswana is signatory to an extensive range of protocols and trade agreements that give access to lucrative markets around the world.

Botswana Investment and Trade Centre (BITC) is an integrated investment and trade promotion authority with an encompassing mandate of investment promotion and attraction, export promotion and development, including management of the nation’s brand.

The organisation plays a critical role of driving Botswana’s economic growth through attraction of FDI, domestic investment, facilitation of expansions and further spearheads the growth of exports by promoting locally manufactured goods to regional and international markets.

BITC has committed to deliver on making investment as easy a process as possible, through facilities such as the One Stop Shop. Services include helping with office space and registrations, visas and licences.

Incentives for investors • •

• •

•

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No foreign exchange controls or restrictions on business ownership Taxes are very low, 15% for manufacturing and International Finance Service Centre (IFSC) companies, 22% for other businesses and 25% for individuals Remittance and full repatriation of profits and dividends is allowed Development Approval Order: tax holiday (zero corporate tax) can be available to investors for a period of five to 10 years Operational double taxation avoidance agreements with South Africa, United Kingdom, Sweden, France, Mauritius, Namibia, Zimbabwe and Russia Companies accredited by the Innovation Hub pay tax at 15% of profit.

CONTACT DETAILS Botswana Investment and Trade Centre (BITC): Private Bag 00445, Gaborone, Botswana Plot 54351, off PG Matante Road, Exponential Building, Central Business District (CBD), Gaborone, Botswana Tel: +267 363 3300 | Fax: +267 317 0452 South Africa: 88 Sandown Mews, West Wing, Stella Street, Sandton, Johannesburg Tel: +27 11 884 8959 | Fax: +27 11 883 7798 Website: www.bitc.co.bw

51 Doing Business in Botswana Doing Business in Botsw SOUTH AFRICAN BUSINESS 2019

SPECIAL FEATURE

A hub of economic activity Airports can anchor economic growth in multiple sectors.

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hopping, trading and entertainment are now accepted parts of the airport experience for travellers, but new thinking is being applied to how airports can spark economic growth in surrounding areas.

By definition, airports play a role in tourism, logistics and trade but the concept of an aerotropolis takes this further in finding ways to leverage the advantages that the facility brings to the region. The airport becomes a hub of economic activity in the same way that cities anchor different economic sectors that grow up around the centre.

Several South African airports and regions are using this thinking SOUTH AFRICAN BUSINESS 2019

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to underpin new approaches to economic planning.

OR Tambo International Airport is the biggest airport in Africa. The City of Ekurhuleni, where OR Tambo is located, is hoping to be the national centre for logistics and to boost its already impressive manufacturing capacity by building more

SPECIAL FEATURE infrastructure and freight hubs. It also wants the aerotropolis concept to play a role in helping to consolidate the integration of the nine town councils that went into making up the current metropole.

The Tambo Springs inland port and logistics gateway has been established near Katlehong as an inter-modal facility which can transfer containers from rail or road to storage facilities and ultimately to the customer. Existing freight rail lines run through the site and link it to the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The aim with this new facility is to improve efficiency. It is run by the Tambo Springs Development Company.

Logistics is obviously a major part of the equation and facilities such as the Tambo/Springs inland port will add capacity to the region.

However, using closeness to the airport as a factor in driving down costs can also be a way of promoting manufacturing. When this factor is supported by national, provincial and local government incentives, the business proposition for investors becomes very attractive.

The OR Tambo Industrial Development Zone is one of several sites allocated by the South African government to stimulate investment in targeted sectors. The OR Tambo IDZ supports the development of businesses that work in the beneficiation of precious metals and minerals sector, with a focus on light, high-margin manufacturing of South African precious and semi-precious metals. Export is encouraged.

The National Department of Trade and Industry (dti) is the lead agent in the creation of Special Economic Zones, which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. Industrial Development Zones are a type of SEZ. Other important participants in building on the aerotropolis concept include Airports Company South Africa (ACSA), operator of nine of the country’s airports, Air Traffic Navigation Services (ATNS) and local and provincial governments and their agencies.

In the Free State, Bloemfontein is pursuing an Airport Node project within a broader N8 Corridor development scheme. A project covering 2 000ha and expected to cost in the region of R100-billion over several phases has been initiated at the Bram Fischer International Airport. A development plan for the area has designated five precincts: Terminal, Boulevard, General Aviation, Airport Industria and Grasslands. The Road Lodge Hotel was built within this conceptual plan. A range of land uses beyond the hotel are envisaged, including warehousing, hospital care, commercial, service stations, conferencing, retail, motor vehicle dealerships, car rental, logistics hub and a showground.

A major reason for the building of a new airport north of Durban was to stimulate cargo volumes, particularly in the agricultural sector.

King Shaka International Airport (KSIA) and the nearby Dube TradePort are intended to complement one another, a good example of the aerotropolis idea. The opening of a R99-million cold-storage facility at Dube TradePort in 2017 gives farmers and exporters additional flexibility, SOUTH AFRICAN BUSINESS 2019

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allowing them to store chilled and frozen perishable goods.

Dube TradePort is a 3 000-hectare development that encompasses the airport and is ideally situated for any logistics business as it is very close to Africa’s busiest cargo port (at Durban) and 140km from the deepest natural harbour in the southern hemisphere where the Port of Richards Bay and the Richards Bay Industrial Development Zone (RBIDZ) are located.

Dube TradePort is a Special Economic Zone and it encompasses a cargo terminal, a serviced industrial estate, 12 hectares of office, retail and hospitality space and an agri-zone for growing, packaging and distribution of high-value perishables and horticultural products.

The focus in Cape Town in recent years has been on growing the number of direct flights to the city. A record 10-million arrivals passed through the gates of Cape Town International Airport in 2016 as a result of a programme called Air Access. The next big thing at CTIA is going to be a new runway. Airport Industria is already a well-established commercial and industrial zone. With increased volumes into the airport, it likely to continue to grow.

The re-aligned new runway will also open up new commercial opportunities. ACSA is looking to promote economic activity in the previously undeveloped Symphony Way area through site zoning. Commercial and logistics are the two most likely kind of activities suited to the newly targeted area.

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SPECIAL FEATURE

The Oceans Economy There are massive opportunities in new maritime sectors.

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new university campus, a new institute, new training programmes at several venues across the country, investment in ports and equipment – the Oceans Economy is no longer just a concept talked about at conferences, it is a reality that is starting to have an impact on South Africa.

South Africa has 3 000km of coastline and the extent of the country’s territorial waters is greater than its land size. And yet the country does not have a merchant marine fleet and only scrapes the surface in terms of the percentage of repair and maintenance of boats and oil rigs which could potentially bring work to its ports.

What is also called the Blue Economy has enormous potential for economic growth and concomitant job creation. National government wants to see the Oceans Economy contribute a R177-billion to gross SOUTH AFRICAN BUSINESS 2019

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domestic product by 2033. This is part of the National Development Plan (NDP).

National strategy on the Oceans Economy is also aligned with Operation Phakisa, a plan that targets sectors that can best achieve quick returns in terms of growth and job creation. The four target areas within the maritime strategy are: aquaculture; offshore oil and gas; marine protection and governance; marine transport

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SPECIAL FEATURE and manufacturing. Transnet National Ports Authority is spending heavily on upgrading the nation’s ports.

One statistic illustrates the potential: South Africa does maintenance on only 5% of the 13 000 vessels that uses its ports and services 4-5% of the approximately 130 rigs that pass along the coast each year. Large quantities of oil are transported around the Cape of Good Hope every year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the Middle East.

South African companies are alert to this potential. More than 7 000 direct jobs were created in the Western Cape ship and rig repair sector in 2015.

Port Elizabeth has positioned itself at the centre of the academic side of the Oceans Economy. Nelson Mandela University launched the Ocean Sciences Campus in 2017 and the South African International Maritime Institute (SAIMI) has chosen the city as its base as it sets about supporting the sector through research and training. SAIMI runs the National Cadet Programme which is paid for by the National Skills Fund.

The curriculum for these institutions ranges from the law of the sea, shipping and transport, to aquaculture, boat-building, oil and gas exploration, repair and maintenance and environmental management.

The university has four marine sector chairs funded by the South African Research Chair Initiative (SARChI) and the National Research Foundation (NRF).

Special Economic Zones South Africa has a number of licenced Special Economic Zones (SEZs), some of which are called Industrial Development Zones (IDZs). The best established of these are the coastal IDZs at Saldanha, Coega (Port Elizabeth), East London and Richards Bay. These areas are central to the Oceans Economy strategy because of their strategic positions and the favourable environment created for investment by specific legislation related to SEZ tariffs, tax deductions and grants. The first illustration of national commitment to the strategy came late in 2016 with the allocation by the Department of Energy of two Liquefied Natural Gas (LNG) plant options, one each to the IDZs of Richards Bay and Coega.

The Saldanha Bay Industrial Development Zone is central to a plan to grow the oil and gas sectors although it was not allocated a possible LNG plant. Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. The SBIDZ is set to become a hub for a range of maritime repair activities and oil rig maintenance and repair.

The ports of Ngqura and East London are well positioned to act as container transit points and the skills set of the Eastern Cape’s workforce, particularly in the automotive and automotive parts sector, could be attractive to repairers and manufacturers in marine SOUTH AFRICAN BUSINESS 2019

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subsectors. Both Eastern Cape IDZs have aquaculture sections.

The East London IDZ already has investors such as Pure Ocean Aquaculture and Ocean Wise.

Durban’s annual throughput of containers is about one-million, more than 60% of the country’s total. As part of Operation Phakisa, the Port of Durban is upgrading its dry dock and buying new cranes to speed up operations.

There is also an ambitious plan to dig out the old airport south of the city, connect the big hole to the sea and make it a harbour; this would allow Toyota to roll their new vehicles directly from the factory floor to the hold of a ship.

The Port of Durban is already home to a variety of maritime companies. EBH-SA has been in the business marine engineering and repairing ships since it began as Elgin Brown and Hamer in 1878.

To improve their competitiveness, three South African shipbuilders (SAS, Damen Shipyards Cape Town and Nautic Africa) have agreed to pool their resources on contracts.

Cooperation pacts like this one might be a good template for the nation’s ports and the rig/boat repair and servicing sector. With the Angolan and Mozambique oil and gas industries growing bigger every day, it is unlikely that one port could cope with demand anyway.

The Port of Richards Bay has added a new berth on average every second year. It has deepwater infrastructure and the huge Richards Bay Coal Terminal, the country’s primary site of export for coal. The Richards Bay IDZ intends becoming an energy hub.

FOCUS

Partnering for maritime growth SAIMI supports maritime research and innovation.

SAIMI hosted maritime business students from the Massachusetts Maritime Academy, USA, on an experiential learning tour in January 2018 to understand the South African maritime sector. Pictured with the group at the Port of Ngqura are (front, from left) senior student Nick Zaia, the academy’s South African-born Dr Portia Ndlovu and Transnet representative Ntshantsha Buyambo.

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he South African International Maritime Institute (SAIMI) supports research and innovation that will help unlock the growth potential of the local maritime industry.

SAIMI worked in collaboration with other research roleplayers to draw up the Maritime Research, Innovation and Knowledge Management Roadmap which presents a vision, and sets objectives and action steps for South Africa to be globally recognised as a maritime nation by 2030.

The map provides direction for research, innovation and technology development to support achievement of the Operation Phakisa growth objectives in the Oceans Economy. It also guides SAIMI’s knowledge management strategy.

The next step is dissemination and implementation of the road map, and SAIMI is working with the Council for Scientific and Industrial Research (CSIR), universities and leading research centres, to support postgraduate studies and commission new high-level research in key areas.

Launched in late 2016, the road map is the result of an extensive review of existing tertiary qualifications, research and innovation activity and current strategies, together with wide-ranging stakeholder

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consultation in charting the way forward.

It is aligned to the vision and objectives of Operation Phakisa in the Oceans Economy and integrates the research and innovation needs of the maritime economy, which takes in everything from aquaculture to tourism, environmental protection to oil and gas exploration, and maritime transport and manufacturing.

Another initiative is to drive a maritime awareness campaign to develop a national maritime culture and consciousness, contributing to awareness of maritime economic opportunities, the development of a sustainable blue economy, and the profile of South Africa as a maritime nation.

SAIMI also acknowledges the importance of interacting with other major institutions, not only in South Africa, but also on the African continent and in the global maritime industry.

Work on SAIMI’s Africa Focus is well underway with leading teams from Kenya, Ghana and Nigeria all part of the research process. Partnerships are also being explored with universities and maritime authorities in China and Southeast Asia.

SOUTH AFRICAN BUSINESS 2019

PROFILE

The South African International Maritime Institute SAIMI is at the helm of maritime skills development.

SAIMI works with organisations such as the NSRI to support programmes developing life skills and maritime skills for school learners and future seafarers.

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outh Africa’s blue economy offers a beacon of hope for sustainable job creation and economic growth in a field of almost unending potential.

Playing a vital role in developing this burgeoning industry, the South African International Maritime Institute (SAIMI) facilitates the skills development to support growth in the sector and the country’s aim to be a leading maritime nation.

“Essentially, our role is to help South Africa steer the right course in growing the skills needed for the rapid development of the maritime sector as envisaged under Operation Phakisa,” says SAIMI’s acting chief executive Odwa Mtati.

Boasting, as it does, more than 3 000km of coastline and territorial waters larger than its land size, South Africa is extremely well positioned SOUTH AFRICAN BUSINESS 2019

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to explore the diverse economic and job creation opportunities that lie within the marine sector.

“All the natural foundations are in place. South Africa is the African continent’s only country with access to and control over sea waters covering three oceans,” says Mtati.

“While South Africa’s land surface is 1.21-million square kilometres, the waters under its control cover some 1.6-million

PROFILE square kilometres. The coastline stretches from the cold Atlantic Ocean in the west to the Southern Ocean in the south, and then to the warm Indian Ocean in the east.”

Headquartered in Port Elizabeth, and with plans to eventually be represented in all of South Africa’s major coastal cities, SAIMI works with educational institutions, government departments and the private sector across South Africa.

Its primary role is to respond to industry needs by identifying skills gaps, facilitating collaboration and development of new programmes, and coordinating maritime education and training in areas across the diverse maritime economy spectrum – from shipping and transport, to aquaculture, boat-building and oil and gas exploration, through to ocean governance and environmental management.

One way of doing this is by reaching out to the younger generation, educating them about sea-going career opportunities and also offering training facilities through its management of the National Cadet Programme.

Funded by the National Skills Fund, the programme – which was SAIMI’s first and still its largest project – offers practical training and sea time with international shipping lines, enabling maritime diploma students to obtain the internationally recognised Standards of Training, Certification, and Watch-keeping (STCW) qualifications and become globally sought-after seafarers.

Innovative approaches to seafarer training, which have the potential for replication if successful, are being followed with some of the partner shipping companies, which recruit a small number of cadets into an intensive programme aimed at developing their own future officer corps from cadet to apprentice to fully-fledged officer.

The programme has also extended its reach to school level in an effort to encourage interest in maritime careers, sponsoring holiday camps and maritime experiential programmes for school learners, along with maths and science support to ensure entry to maritime studies programmes.

In addition, the institute is currently facilitating a pilot project with the Transport Education and Training Authority (TETA) for

CONTACT DETAILS Physical address: Ocean Sciences Campus, Gomery Avenue, Summerstrand, Port Elizabeth, South Africa Postal address: PO Box 77000, Nelson Mandela University, Port Elizabeth 6031, South Africa Tel: +27 41 504 4038 Email: info@saimi.co.za Website: www.saimi.co.za

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training of deck and engine ratings towards Certificates of Proficiency as Able Seafarers, to work in areas such as vessel maintenance, rigging and cargo handling for merchant shipping and the fishing industry.

In a long-standing partnership with the Africa region of the International Oceans Institute, SAIMI supports the annual IOI Ocean Governance for Africa course which equips public sector officials from South Africa and the African continent to understand the maritime aspects of environmental management and planning.

SAIMI is funded by a threeyear grant of R296-million from the National Skills Fund for the skills and capacity-building work to support Operation Phakisa, an initiative of the South African government.

The initiative was designed to fast-track the implementation of the oceans economy and address issues highlighted in the National Development Plan 2030 such as poverty, unemployment and inequality.

A common thread running through all Operation Phakisa initiatives is the need to develop the skills to operate the engine room, as well as to navigate the way forward.

SAIMI is at the helm of this skills development as well as capacity building and empowerment of people to support the goals of Operation Phakisa and growth of the maritime economy.

SOUTH AFRICAN BUSINESS 2019

PROFILE

EBH South Africa High-quality ship repair and marine engineering.

Achievements The Oliver Top Empowerment Awards honours and awards outstanding contribution to the national vision of the country.

In 2016 EBH-SA won the Oliver top empowerment award for skills development.

In 2017/18 Transnet awarded EBH with the best-performing ship repairer of the year.

In 2018 EBH was once again nominated as finalist for skills development in the Oliver Top Empowerment Awards.

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lgin Brown and Hamer, proudly a level 2 B-BBEE contributor, is among one of the largest and oldest shipyards in Southern Africa, having been founded in 1878. EBH South Africa was originally known as James Brown and Hamer. The company was later acquired in December 2012 by the DCD Group and then became known as EBH-SA.

Services • • • • •

Operations

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EBH South Africa provides the international shipping industry as well as the oil and gas sector with a full in-house service in all aspects of ship repair through its operations in Durban, Cape Town and East London. The company offers a dedicated team of employees focused on superior quality service, delivered by skilled craftsmen, and an extensive network of experienced subcontractors through a full range of utilities. This ensures efficient ship repairs, conversations or new construction projects.

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What sets us apart?

In addition to all our service offerings, Elgin Brown and Hamer purchased its first floating dock, Eldock, in 1998, which was originally built in Russia. EBH South Africa has a privately-owned floating crane which has a lifting capacity of 60 tons at 10 metres.

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Pipe repairs Steel repairs Underwater services Electrical Scaffolding Mechanical Blasting and coating Riding crew Hydraulics

Skills development EBH-SA passionately believes in artisan and engineering training and development. We regard apprenticeships and engineering investments as being key to the ongoing success of our organisation. Our involvement in these programmes since 2010 has produced numerous qualified artisans and engineers.

KEY SECTORS Overviews of the main economic sectors in South Africa.

Agriculture​​​​

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Mining​​​​

70

Oil, gas and petrochemicals ​

75

Water ​​​​82 Engineering ​​​​

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Construction and property ​98 Manufacturing​​​

108

Food and beverages​​

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Automotive ​​​​118 Transport and logistics​​

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Information and communications technology​

124

Tourism and events​​

134

Banking and financial services​

140

Development finance and SMME support​

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OVERVIEW

Agriculture Increasing agri-processing volumes is a national priority.

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outh Africa produces a wide variety of crops in every category but in recent times there has been a rapid expansion in the production of nuts. Macadamia nuts is one of the fastestgrowing sectors in South Africa. Most nuts are exported, and the global market is expanding: nearly 2 000ha are added to the land under macadamias every year. Mpumalanga and Limpopo provinces are big nut-growing provinces. Another sector enjoying a boom (mainly because of Chinese demand) is avocadoes, with almost 1 000ha per year of new land being planted.

Peanuts are farmed in the Northern Cape, North West and Free State with the Vaal River having the highest concentration of growers.

Some analysts believe that the Northern Cape could become a global centre for pecan nut production. Production of pecan nuts grew from 5 000 tons in 2010 to 10 500 tons in 2015.

The Northern Cape is home to the Vaalharts Irrigation Scheme, one of the biggest systems of its kind in the world. Spread 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. Consulting firm Aurecon has done a feasibility study and a business plan for the rehabilitation and upgrading of the irrigation scheme.

A priority for South African agriculture is to increase the number of agri-processing businesses which in turn will mean that agricultural SOUTH AFRICAN BUSINESS 2019

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SECTOR INSIGHT The Mpumalanga International Fresh Produce Market will boost farming in the region. production will have to increase.

More than 50% of agricultural export is currently made up of processed agricultural products.

The most recent version of the South African government’s Industrial Policy Action Plan (IPAP) flags agri-processing as a key sector for value addition and job creation. According to McKinsey, South Africa’s agri-processing industry contributed R78-billion in 2014 to South Africa’s GDP and employed 362 000 people.

In anticipation of increased volumes, and to assist small-scale

OVERVIEW farmers get access to mainstream markets, agri-parks are being rolled out at district level in every province. These parks aim to combine production facilities, logistics, marketing, training and extension services.

The other way in which small-scale farmers are connecting to the mainstream economy is through the supplier development programmes of major retailers. For example, Woolworths receives “indigenous” eggs from Bosveld hens from an independent farmer in Bela Bela, cabbage and butternut produced by five smallholders is channelled by Spar through its Fresh Assembly Point in Mopani and the Ezemvelo Direct Farm Programme of Massmart left behind a legacy of small-scale farmers now connected to the fresh produce supply chain – and a packhouse in Limpopo run by a co-operative.

Major agricultural companies In 2017 Kaap Agri listed on the main board of the JSE. Although the agricultural sector contributes just 4.3% to the stock exchange’s total market capitalisation, the percentage is expected to grow.

Companies like Kaap Agri provide services beyond speciality agricultural services such as grain handling. Activity in areas such as fuel retailing and building materials give these companies a broad retail footprint.

When South Africa’s first alternative stock exchange in South Africa started trading in February 2017, the first listing was agricultural company Senwes and its holding company. The JSE has also launched a wool futures contract as the sector strives to add 25-million kilograms to the existing crop of about 44-million kilograms.

Afgri, biggest of the former co-operatives that are now multidimensional companies, has delisted from the JSE but in 2017 bought the South African Bank of Athens.

Zeder Investments is the agricultural arm of investment holding company PSG Group (which is well known through Capitec Bank and Curro schools). Zeder has been increasing its stake in agricultural companies, most notably Capespan. Capespan has a turnover of R7.6-billion across three divisions: farms, logistics and fruit.

Zeder also owns 27.1% of Pioneer Foods which makes and distributes many big food and drink brands across Southern Africa, including Weet-Bix, Liqui-Fruit, Ceres, Sasko and White Star. The company has an annual turnover of R20-billion and it has two Bokomo facilities in the United Kingdom.

Most former co-operatives which are now agri-businesses have a specific geographic and farming sector focus (BKB is strong in the eastern Free State and Eastern Cape and concentrates on wool and mohair) while others like Afgri have a national presence.

Senwes has a strong grain division and it controls 68 silos. Its operations are run from Klerksdorp in the centre of the country in North

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West Province. Other companies include NTKLA (Limpopo), GWK (Northern Cape), Klein Karoo Agri, VKB (eastern Free State and Limpopo), Kaap Agri (from the Boland to the Eastern Cape and up to Namibia), SSK (Overberg) and TWK (KZN and Mpumalanga).

These facts show the large influence which the agricultural sector has in South Africa. When national agricultural output surged in mid-2017 on the back of good rains and harvests, the country was lifted out of the technical recession into which it had fallen in the first quarter.

A bumper maize crop of 16.4-million tons for 2016/17 provided evidence that the long drought was over, at least in the central and northern regions. Local demand for maize is 10.8-million tons. The Western Cape drought continued for longer, but decent rains were recorded in the first half of winter.

Investment The Land Bank intends to invest R1-billion in supporting black agricultural entrepreneurs. The hope is that by making the sector more inclusive, long-term food security will be ensured.

Statistics SA reports that about 847 000 people work in agriculture in South Africa.

Wandile Sihlobo of the Agricultural Business Chamber notes that two-thirds of these jobs are in the field crops and horticultural sectors, which should therefore be the focus of future investment. Other areas SOUTH AFRICAN BUSINESS 2019

OVERVIEW Agricultural variety

where investment will pay off are bringing under-utilised land (in communal areas and land reform farms) into commercial production, expanding irrigation schemes and targeting areas that have the highest potential for growth.

Fruit, sugar and wine make up about 7% of the country’s total export basket. Avocadoes, tomatoes and macadamias are among other important export crops. Primary agriculture provides 5% of formal employment in South Africa.

Several of the Special Economic Zones around South Africa either have or will in the future have, agri-processing facilities. Examples include existing tomato paste and dairy facilities at Coega IDZ and plans to develop the SEZ at Harrismith (Maluti-A-Phofung) into a hub for agri-processing. The Nkomazi SEZ in Mpumalanga will promote agri-processing and the Mpumalanga International Fresh Produce Market currently under construction in Mbombela will boost the agricultural sector in the region.

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Fresh Produce Exporters’ Forum: www.fpef.co.za Grain SA: www.grainsa.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za SA Table Grape Industry: www.satgi.co.za

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A total of 70% of South Africa’s grain production is maize, which covers 60% of the cropping area of the country. The South Africa feed industry has an annual turnover of about R50-billion with most of the raw material being soya and maize.

KwaZulu-Natal and Mpumalanga produce sugar, but volumes are down. The Free State Province supplies significant proportions of the nation’s sorghum, sunflower, potatoes, groundnuts, dry beans, and almost all of its cherries.

Products distinctive to South Africa, such as rooibos tea (Western Cape) and marula berries (Limpopo) hold great potential to capture niche markets internationally.

South Africa is famous for its fruit, of which 35% is citrus, 23% subtropical and nuts, 26% pome fruIt, 11% stone fruit and 9% table grapes. Export volumes, particularly in tropical fruits such as mangoes and avocadoes, have been growing rapidly. Most of South Africa’s citrus and subtropical fruit comes from the eastern part of Limpopo.

There are about 3 500 wine producers in South Africa, with the large majority located in the Western Cape. The industry earned R17.5-billion in exports in 2016.

Livestock farming is the largest agricultural subsector in South Africa and the Eastern Cape is the largest livestock province. South Africa has a beef-herd of 14-million. South Africa produces about 55% of the world’s mohair.

areas of energy, resources, power, infrastructure as well as water. The Services Division seeks to become a

FOCUS

facilitator of world class services for

Realising long-term value and driving transformation South Africa and the rest of the continent by participating in the following sectors

travel & tourism, media, food & logistics, and property.

Thebe Food and Agro-processing. company by 2020. Key to this strategic intent are four main drivers, namely food production and exports, food processing and distribution, food marketing, and an emerging farmers development programme.

Thebe is currently exposed to the food sector through its investment in Compass Group SA, a leading industrial caterer, and GROW (formerly BothaRoodt), a fresh produce market agent at the Johannesburg Fresh Produce Market and HarvestFresh.

In South Africa, CGSA, in which Thebe has a significant shareholding, caters for a variety of clients including private sector, government and education institutions. Partner company Compass Group PLC is one of the largest food services and facilities company in the world, operating in over 50 countries.

HarvestFresh, a recent acquisition, is a leading grower, packer, processor and distributor of fresh produce to the retail market.

Global trends indicate an increasing demand for “ready-to-eat” meals. South Africa has seen giant retailers respond to this through various offerings with the scope and demand increasing. Thebe is responding to this opportunity.

T

he Thebe Food and Agro-processing subdivision of Thebe Investment Corporation aims to realise long-term value from its investments in the food production and preparation sectors and to drive and champion transformation in the agro-processing sector. We achieve this through investing in and managing strategic agro-processing assets with an explicit aim to develop and facilitate the integration of black farmers and agro-processors into established supply chains.

The long-term aspiration is to be invested in leading operators that operate across the continent.

Thebe Food and Agro-processing intends to continue to build a significant food services

Transforming the sector The development of farmers for food security is at the core of Thebe’s strategy. Thebe will partner with key agricultural formations and management companies to develop land owned and managed by emerging farmers and communities, in partnership with the relevant beneficiaries. Existing Thebe investments will be leveraged to provide critical market intelligence to assist farmers to understand market dynamics to compete effectively. Thebe will also explore development funding models for feasible development projects as appropriate.

CONTACT DETAILS Contact person: Mokgethi Tshabalala (General Manager, Thebe Food and Agro-processing) Tel: +27 11 447 7800 Email: mokgethi@Thebe.co.za Website: http://new.thebe.co.za/

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OVERVIEW

Mining Mine owners are preparing for change.

T

he South African mining industry is going through a time of change. Gold and platinum mines are under pressure because of global price fluctuations and the cost of doing business.

Safety issues are to the fore and national mining policy is the subject of heated debate.

The body that has represented mine owners since 1889 has undergone a re-branding, a strong symbol that change is under way. What used to be the Chamber of Mines is now the Minerals Council South Africa. The Minerals Council wants to reposition the South African mining sector so that it regains its place as the country’s “foremost industrial sector”. It aims to double real investment in mining by 2030. The council wants to assist in obtaining the objectives of the National Development Plan (NDP) regarding economic growth, development and transformation.

The gold sector has shed several thousand jobs in the last five years and in mid-2018 a large cutback in platinum sector employment was announced. A proposed new mining charter (Mining Charter 3) did not go down well with mining companies, and the new President of South Africa, Cyril Ramaphosa, appointed a new mining minister to come up with a better arrangement. Both Ramaphosa and Minister Gwede Mantashe have held the post of Secretary-General of the National Union of Mineworkers so there is no shortage of first-hand knowledge of the sector in the upper echelons of government.

The level of black ownership and whether that percentage must be “topped up” every time a black shareholder sells are two of the contentious issues that must be resolved. A court ruling in favour of “once-empowered, alwaysempowered” will probably not be the end of the debate. The Minerals Council says that the value of BBBEE deals since the year 2000 is R205-billion.

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SECTOR INSIGHTS The Gamsberg zinc and lead project (pictured) is South Africa’s biggest.

• Afrimat has expanded into mining.

PROFILE

E&T Minerals A hands-on approach is paying dividends for this coal business and its clients.

E&T Minerals is a South African-based commodity brokerage and trading house specialising in coal, coking coal and other coal products.

Vision E&T envisages building an African business with global reach which capitalises on the continent’s rich natural resources while guaranteeing efficiency, reliability, excellence and transparency to and for its clients.

Services • • • • •

commodity trading sampling contract management management of performance risk logistical management

Reliability and efficiency Founded in 2013, E&T Minerals is poised for a new dawn as the enterprise has matured with experience. Supported by a far-reaching network of suppliers and producers in addition to a very hands-on approach, what sets the E&T team apart is a constant physical presence in the coal fields which ensures the smooth running of all supply contracts. This includes quality maintenance by efficient sampling of all product stockpiles,

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management of logistics by supervision of all trucks loading material from the different sites up to the clients’ point of delivery. As a result of this approach, reliability of services to clients is assured.

Emmanuel Ngulube Emmanuel Ngulube is the cofounder and current CEO of E&T Minerals. His responsibilities include sales, marketing, business development and the client relationships.

Having worked for many years as a yellow metal trader, Emmanuel has an extensive network within the mining industry along with an excellent understanding of the processes of the domestic and international commodities market. Emmanuel studied finance at the University of Johannesburg.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW Guided by the Zambezi Protocol, the Minerals Council wants mining to be more positive and constructive, working better with the communities in which it operates. New CEO, Mxolisi Mgojo, is simultaneously leading his company, Exxaro Resources, on a programme to make mining sustainable through water sharing with local communities and finding ways to help communities gain access to energy.

Access to energy is something that mining concerns and related industries are working on. Many mines are putting plans in place to go “off-grid” as far as possible. Steel producer ArcelorMittal South Africa has asked the National Energy Regulator of South Africa (Nersa) for a negotiated price agreement (NPA) to help it cope with the volatility in exchange rates and lower domestic demand. Silicon Smelters, which has plants in Mpumalanga and Limpopo, has asked for a two-year negotiated price agreement (NPA) on electricity, which would allow it to resume production. Nersa has the power to grant such exemptions in a strategic industry.

Investments Limpopo Province is the site of two new Special Economic Zones which will have a mining focus. Mineral beneficiation is a key component of the newly accredited Musina-Makhado Special Economic Zone (SEZ) in the far north of Limpopo. In 2018 nine Chinese companies committed to investing more than $10-billion in projects related to the zone’s four main areas of activity: a coking plant, a power plant, an alloy factory and the manufacture of steel. Shenzhen Holmor Resources Holdings, as the manager of the Energy and Metallurgical Cluster within the SEZ, will invest about R40-billion to create infrastructure.

The planned Tubatse Platinum SEZ (for which accreditation has been submitted) will focus on platinum group metals beneficiation. According to the Limpopo Economic Development Agency, 17 new mines were established in the greater Tubatse/Burgersfort/ Steelport area between 2001 and 2016, and a further 22 new mines are planned. The completion of the large new De Hoop Dam makes these plans possible.

A Mining Supply Park is envisaged which will be a big boost for local businesses and suppliers. Getting local small businesses supplying to the mining sector is a goal of the provincial authorities.

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E&T MINERALS SUCCESS STORY It’s said that the true content of one’s character is not defined by good times but rather by times of adversity. This rings true with E&T Minerals. Being in a volatile sector such as commodity trading, we found ourselves in dangerously troubled waters in the last quarter of 2015 through to the first half of 2016. We took this experience as an opportunity to introspect, assess the market, re-evaluate our strategy and organisational structure to map a sustainable path forward. In 2018, we have not only survived, we have built a solid team and organisation that is growing at a Emmanuel Ngulube healthy pace.

Impala Platinum (Implats) has created Tubatse Platinum, a vehicle in which local businesses hold a nine percent stake in the Marula platinum mine which is located north of Burgersfort. Two other empowerment partners are involved.

A black empowerment deal in the Northern Cape recently reported good returns. Hotazel is the site of a relatively new manganese mine, Tshipi é Borwa. Tshipi e Ntle Manganese Mining (Tshipi) is a joint venture between Pallinghurst CoInvestors and a black empowerment company representing several groups called Ntsimbintle Mining. A number of non-government organisations (NGOs) such as the Black Sash have a 2.2% stake in the mine through Ditikeni Investment Company. Indications are that Tshipi can produce about 2.2-million tons of ore per year, for about 60 years. Engineering News reported in 2017 that Ntsimbintle celebrated a R300-million dividend pay-out in July, with a further R500-million agreed on for disbursement in September.

Australian miner Orion is putting considerable resources into investigating the possible

PROFILE

Modi Mining Modi offers differentiated contract mining services in a variety of fields across three provinces.

About Modi Mining

Underground mining services

Modi Mining is a 100% black South African owned company • Conventional mining method: stoping; developing; vamping and founded and owned by mining engineer and entrepreneur Mr sweepings Samuel Molefi and a female entrepreneur, Christina Motlapele Molefi. Modi Mining started operations in 2011 and has grown to • Equipping and reclamation • Mechanised mining method: capibe operational in three provinces. tal development (TMM); board and In the North West Province, Modi Mining serves corporate mining pillar houses in the platinum sector (RBPlats, Impala Platinum and Lonmin).

In Mpumalanga Province, Modi works with South32 in the coal sector. • Hybrid mining method The company also manufactures and supplies products for mines such as Sibanye Gold, Gold 1 and Harmony Gold, all of which are Open cast mining services • Top soil and overburden stripping based in Gauteng Province.

• Coal seam mining • Rehabilitation, dump/stockpile management To be the preferred service provider and supplier in the mining Manufacturer and supplier of: industry.

Vision

•

Services

LDPE blasting barricades and pipes

Civil services

Modi Mining is a multi-faceted company within the mining industry • Civil and bulk earth works focusing on contract mining services (surface and underground), • Screening and crushing civil and bulk earth works, crushing and screening, load and haul, • Load and haul mine rehabilitation, manufacture and supply of blasting barricades. www.modimining.co.za A detailed breakdown of services is as follows:

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OVERVIEW

Sasol Mining is very active in Mpumalanga.

revival of the Prieska Zinc-Copper Project in the same province. A maiden mineral resource estimate was published in February 2018 and 14 drill rigs (above and below ground) are at work looking into the site’s prospects.

Vedanta Zinc International’s nearby Gamsberg zinc and lead project is the biggest current mining project in South Africa. The mine, near Aggeneys, has resources and reserves of 214-million tons. The mine is already having a significant impact on employment. In the first phase, 4Mtpa of ore will be mined, producing 250 000tpa of zinc concentrate.

Aggeneys is responsible for approximately 93% of South Africa’s lead production, and 12% of all world lead exports. Zinc is less abundant, but the province is still responsible for about 43% of South Africa’s overall zinc production.

Afrimat, a listed construction materials supplier and industrial minerals group, has added open-pit mining to its portfolio with the R322million acquisition of the Diro mine (Northern Cape), which had been in business rescue. Production was on track for the target of one-million tons per year, but a problem on the railway line that delivers iron ore to the port of Saldanha led to production being scaled down. Afrimat had a transport deal with Transnet and is selling iron ore in China.

Anglo American is investing R2-billion to expand production at its Venetia diamond mine near the town of Musina in Limpopo. The project to convert the open-pit mine to a vertical-shaft mine will substantially extend the life of the mine.

ONLINE RESOURCES Minerals Council of South Africa: www.mineralscouncil.org.za Geological Society of South Africa: www.gssa.org.za Mining Qualifications Authority: www.mqa.org.za National Department of Mineral Resources: www.dmr.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za

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Ivanplats has started sinking shafts at its new mine near Mokopane south-west of Polokwane. If the mine achieves the projected production rate of 12Mtpa with 1.2-million ounces of PMG, it will rank as the biggest PGM mine in the world. Northam Platinum has invested R900million on a smelter expansion project at its Zondereinde mine south of Thabazimbi.

A R1.6-billion processing plant is being built at Cullinan by Petra Diamonds, with a throughput capacity of 6Mtpa. The mine’s orebody contains a diamond resource of 194Mcts which is why Petra is expanding with a goal of annual production of 2.2Mcts by 2019.

Nkomati Anthracite in Mpumalanga has been revived after an investment from Unicorn Capital Partners, formerly Sentula Mining. The Mpumalanga Economic Growth Agency (MEGA) and local communities are also shareholders. The mine has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. The highgrade anthracite that the mine will produce is suitable for the ferro-metals industry because it has low phosphorus and sulphur levels and high fixed carbon percentages.

Coal giant Ex xaro has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion.

Exxaro is also extending the life of its Leeuwpan Mine by another 10 years. The mine has 1 200 permanent employees.

Oil, gas and petrochemicals National policies are focussing on gas.

T

he Liquefied Natural Gas Independent Power Producer Procurement Programme (LNG IPPPP) is part of the programme of the Department of Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The total allocated to gas-to-power in the national power plan is 3 726MW, of which 3 000MW is for LNG. In 2016, the Department of Trade and Industry (dti) established a Gas Industrialisation Unit (GIU). The first two sites identified by the DoE for LNG plants are Richards Bay (2 000MW) and the Coega Industrial Development Zone (1 000MW) in the Eastern Cape. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) and its Eastern Cape counterpart into energy hubs. The fact that Mozambique has significant offshore deposits is a factor in this ambition.

Large commercial gas companies such as Afrox and Air Products have plants within the Coega IDZ. First Automobile Works has established its motor assembly plant next door to Air Products’ air separation unit, giving it ready access to industrial gas.

The Coega IDZ is also home to the country’s first gas-fired plant to be run by a private consortium, the Dedisa power plant. A new gas turbine open cycle power plant near Durban has been commissioned

by Avon Peaking Power.

The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed-methane-gas

SECTOR INSIGHTS Large gas-to-power plants are planned at two major ports.

• The Port of Saldanha has launched a new LPG plant. exploration rights in KwaZuluNatal and natural gas exploration permits in the Free State. Early surveys suggest that the Free State has 23-billion cubic feet of gas underground. If this is confirmed, then four new power stations could be built in the province.

Afrox is spending R200-million on a plant to extract helium in the Free State. Tests have begun in the Karoo in search of shale gas.

A new addition to South Africa’s pipeline network is a pipe to get natural gas from Mozambique to SOUTH AFRICAN BUSINESS 2019

OVERVIEW Gauteng. SacOil’s R90-billion project aims to deliver gas to Johannesburg and the nearby towns in 2020.

The Port of Saldanha in the Western Cape launched a new openaccess liquefied petroleum gas (LPG) plant in 2017. It will be run by Sunrise Energy.

The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers.

An agreement has been signed between PetroSA and Russia’s geological exploration company, Rosgeo, which will see $400-million invested and gas delivered to the gas-to-liquids refinery at Mossel Bay (Mossgas).

Assets The South African oil industry generates annual sales of about R365-billion and includes global giants such as Engen, BP, Shell, Total and Caltex. In 2016, Chevron began the process of exiting South Africa. Sinopec of China has bought a 75% share in Chevron South Africa for R12.6-billion. Assets include a lubricants plant in Durban, an oil refinery in Cape Town and 820 petrol stations across South Africa and Botswana. South Africa’s own global giant, Sasol, is a major player in the oil sector and the only player in the petrochemicals sector.

Most of the oil that feeds the country’s four crude-oil refineries is imported. In addition to South Africa’s crude-oil refineries, natural-gas conversion plant, coal-to-fuel and gas-to-liquid crude-oil refineries, Sasol produces fuel from coal at its Secunda facility and PetroSA has the country’s only gas-to-liquid (GTL) facility at Mossel Bay. The Chevref oil refinery in the Cape Town suburb of Milnerton produces about 110 000 barrels a day of South Africa’s total production of 703 000 barrels a day. The Natref refinery is strategically placed at Sasolburg near to the industrial hub of southern Gauteng. The petrochemical complex at Sasolburg is a major national asset. One of Sasol’s many companies, Sasol New Energy, is moving the group away from reliance on fossil fuels. The Natref refinery is a joint venture between

ONLINE RESOURCES Independent Power Producers Programme: www.ipp-projects.co.za National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com South African National Energy Association: www.sanea.org.za South African Petroleum Industry Association: www.sapia.co.za

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Sasol Oil (64%) and Total SA (36%). It is a technologically advanced facility, which refines heavy crude oil into petrol, diesel, commercial propane, jet fuel and bitumen.

KwaZulu-Natal hosts two oil refineries which jointly account for more than 300 000 barrels of refined crude oil. South Africa’s biggest refinery is Sapref in Durban.

Owned jointly by Shell SA Refining (25%), Thebe Investments (25%) and BP Southern Africa (50%), it has a capacity to produce 180 000 barrels per day. The Enref refinery owned by Engen can produce 135 000 barrels per day.

Safor is a base-oil production facility (jointly owned by Engen, Caltex and Total but operated by Engen) that produces 45% of Southern Africa’s base oils. Engen also owns the adjoining Lube Oil Blend Plant, which produces more than 72-million litres of finished lubricants annually.

A new facility is the 118 000m³ Bergan fuel storage unit. It comprises 12 tanks located on the Eastern Mole of the Port of Cape Town.

Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP) which started delivering fluids in 2012. The NMPP terminals allow for greater flexibility in supply. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried.

The liquid fuels and gas networks of Transnet Pipelines has intake stations at both Durban refineries (petroleum), while the gas pipeline runs from Secunda to Durban, with diversions to the manufacturing hubs of Newcastle and Richards Bay, and along the coast between Durban and Empangeni.

INTERVIEW

Poised for growth Dickson Ramokone, CEO of Bakone Holding Investment, outlines his company’s ambitious expansion plans.

What drives your business strategy?

Initially, it was to achieve control of the ore itself. I was interested in base metals and I pursued a career trading in diamonds and gemstones for almost 20 years. That was my passion.

When did you start?

It was a long time ago, about 2005.

Things were hectic in the early days. It takes a number of years to put something together and we were not financed by banks, we had to do it all ourselves.

BIOGRAPHY Growing up in a business-oriented household in Soweto, Dickson Ramokone quickly learnt “the value of a penny”. Exposed as he was to family spaza shops and other ventures, he learnt to deal with figures and became very aware of what was happening in the business world. He has been involved in base metals, diamonds and the construction business for a number of years.

Now you are quite diverse?

I have a whole lot of things that I have put together. We have several companies that we operate, to align with different sectors. In addition to metals and agriculture, we also have logistics and prospecting rights for different minerals. We are always looking for opportunities.

Can you give us an example?

If we see that the market needs diesel, then I will look to find the concession or be the licensee to make sure that it happens. We will see to it that people and companies get their diesel. This year I’ve done about 30 deals. Things fall in place.

What are some of your current projects?

We are getting into commercial farming, with several farms between 800ha and 1 500ha under irrigation. The aim is to build vegetable sorting and packing facilities for the market. We have also done several property deals and we are in the process of setting up a finance company.

Do you own all your subsidiaries?

Yes, I am the sole owner, but I am going to be buying equity in an existing manufacturing facility soon.

And future plans?

We are buying equity in ore concessions and gems and we intend to list. We are on the verge of listing 12 companies on the main board of the JSE.

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PROFILE Bakone Holding Investment Professionals in investment and wealth growth.

B

akone Holding Investment is a holdings and investment company focused on growing and investing in various ventures. To work on such a complex and powerful financial market as an investor is not easy. It is necessary to have not only expertise, but also a great positive experience. Otherwise, the investor risks losing all of his or her investments.

Bakone Holding Investment has mastered the skills of investment and has built a large investment portfolio.

Bakone Holding Investment offers customers the opportunity to earn and grow in the investment industry. The company has an investment portfolio in various companies.

Leadership Dickson Ramokone, CEO of Bakone Holding Investment, is a seasoned businessman and entrepreneur with many years of experience in various

sectors. Having learnt from his parents’ retail enterprises, he worked in minerals for many years and more recently has been branching out into property, agriculture, logistics and construction.

Mother of companies The companies that make up the Bakone Holding Investment portfolio cover a wide range of sectors: • Financial • Commodities (Coal, diamonds and minerals) • Fuel and logistics (including Bakone Fuel) • Trade • Construction and civils • Agricultural produce • General.

CONTACT DETAILS Contact person: Mr DK Ramokone (CEO), Bakone Holding Investments Tel: +27 78 868 9377 | Fax: 086 525 9190 Email: dickson@bhinvestments.co.za Website: bhinvestments.co.za

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Financial

Commodities

North Capital First Specialists in capital investment and growth. We know when to invest and how to grow. Our main goal is to assist businesses achieve their ambitions for growth. Our target market is to invest in businesses over which we have management control or an ability to exert significant influence. To promote opportunities for professional achievement for talented, motivated and suitably qualified black executives to participate in the economic transformation of South Africa. North Capital First offers investors long-term capital appreciation by investing in a diversified portfolio of unlisted investments managed

by North First Capital.

Tel: 078 868 9377 Email: dickson@northcapitalfirst.co.za Website: www.northcapitalfirst.co.za

Fency Diamonds The company currently provides services to companies ranging from small-scale mining to large commercial mining projects. Fency Diamonds is a clientdriven commodity trading company that puts the needs of clients first. Our goal is to deliver a superior advantage to all our business partners, providing them with specialist expertise and deep market knowledge.

Our dedicated team of specialists balance daily activities and long-term strategies, seamlessly connected with a worldwide network of suppliers, manufacturers and jewelers. Over the years we have demonstrated supreme competence in service delivery and living up to the commitments made to our clients.

Tel: 078 868 9377 Email: dickson@fencydiamonds.co.za Website: www.fencydiamonds.co.za

White Blue Insurance Life insurance services tailored products for lowincome families. Affordable life cover and funeral cover for individuals and families. The company aims to partner with insurance brokers who can sell services in remote areas.

Tel: 076 900 3933 Email: dickson@wbinsurance.co.za Website: www.wbsinsurance.co.za Kgwale For Projects Established in 2005, this business has a professional and committed team, specialising in commodities trading, marketing, brokerage and finance. The focus is on food-stuffs, farming, export and import and big brand retailers. Other services include marketing, advertising, branding and developing a corporate identity for clients.

Tel: 078 868 9377 Email: dickson@kgwaleprojects.co.za Website: www.kgwaleprojects.co.za

Master Ore & Diamonds Holdings Specialists in Iron ore & Diamond mining, sales and distribution, including the sale of individual stone diamonds. Master Ore & Diamond Holdings is a diversified business group with interests in mineral resources and industrial sectors. We believe that the best way to stay ahead is to think ahead and are confident of leading the way as we move into the future guided by thought leadership which has multiple years of experience of building successful businesses and a highly talented and culturally diverse team.

Connecting decision makers to a dynamic network of information, people and ideas with unrivalled expertise in the exploration and mining.

Tel: 078 868 9377 Email: dickson@modholdings.co.za Website: www.modholdings.co.za

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FOCUS Far East Coal Far East Coal is a coal mining company with a focus on thermal coal production in South Africa, resource exploration and development. The company aims to create shareholder value through the acquisition, exploration and development of coal projects in South Africa. Our focus is on being a diversified operation which focuses on commodity processing with special interest in coal processing and advancing the development of coal projects in Mpumalanga and other regions, to service the public and private sector for power generation and industrial use.

Tel: 078 868 9377 Contact for all subsidiaries Tel: 078 868 9377 Email: dickson@fareastcoal.co.za Website: www.fareast.coal.co.za Obovu Coal Is a coal mine situated in Mpumalanga Province which will supply bituminous coal to inland areas and the export market. Obovu Coal serves customers in the public and private sector by supplying coal in bulk for industrial, domestic and export use. We supply coal to the power generation industry, as well as other coal traders and end users. Obovu Coal aims to be is a national distributor, covering all provinces in South Africa as well as many countries on the African continent. Obovu Coal is a subsidiary of Far East Coal, where a coal processing plant will be situated.

Tel: 078 868 9377 Email: dickson@obovucoal.co.za Website: www.obovucoal.co.za Black Ingwe Coal Our main function is coal mining. Coal is valued for its energy content and, since the 1880s, has been widely used to generate electricity. The steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production.

We offer the following underground coal mining services: new development, board and pillar mining, mining with continuous miners, conventional drilling and blasting, continuous miner pillar extraction (total and partial extraction), establishing box cuts and edits into high walls, underground engineering infrastructure and beneficiation of coal services.

Tel: 078 868 9377 Email: dickson@blackingwecoal.co.za Website: www.blackingwecoal.co.za

Fuel and Logistics

Bakone Fuel and Logistics An integrated South African company engaged in the supply and delivery of petroleum and petroleumrelated products to niche markets within the bulk fuels trading environment, both locally and globally.

What we do: Our operational footprint in Africa allows us to offer a full bouquet of oil and gas services, backed by international alliances, thereby ensuring world-class delivery every time.

Our vision: To become the leader in petroleum supply based on our expertise and our commitment to sustainable earnings, growth, value creation and the re-investment in human capital.

Transportation of fuel: Product transportation, market intelligence, distribution, marketing, trading and finance.

Tel: 076 900 3933 Email: dickson@bakonefuelandlogistics.co.za Website: www.bakonefuel.co.za

Construction and civils

Versich Construction and Civil Construction of township development infrastructure and general municipal services. Construction and servicing of bulk and internal water and sewer systems.

Tel: 078 868 9377 Email: dickson@versich.co.za Website: www.versich.co.za Red Construction & Civil Red Construction & Civil is a construction and maintenance company offering building and road construction and maintenance, sewer and drainage systems construction, industrial structures and general construction services. Customers include municipalities and industrial and domestic clients.

Tel: 078 868 9377 Email: dickson@redconstruction.co.za Website: www.redconstruction.co.za

FOCUS Cambium Development Cambium Development is a professional South African civil construction service provider. The company was established to absorb the previously disadvantaged into mainstream economic activity for the betterment of life for the majority. The company has set its objective to improve the living conditions of communities.

Tel: 078 868 9377 Email: dickson@cambiumdevelopment.co.za Website: www.cambiumdevelopment.co.za

Altitude Construction and Civil Consultants Altitude plans and constructs roads and streets. From residential streets to national highways connecting the whole country, Altitude Construction and Civil Consultants has it all covered.

The company offers construction and maintenance services for roads, buildings, industrial structures, sewer and drainage systems, water drainage system construction and maintenance, water drainage systems along roads, pavements and within cities and shopping centres.

Type of work: Commercial and residential construction, road construction and maintenance, drainage and sewer systems construction and maintenance. Shopping centres, office spaces and general commercial structures.

Tel: 078 868 9377 Email: dickson@accconsultants.co.za Website: www.accconsultants.co.za DKR Aluminium and Wood A specialist designer and manufacturer of aluminium and wooden door and window frames. We can design, manufacture and install most architectural aluminium door and window systems, including sliding/folding doors, casement windows, shop fronts, sliding doors and double-glazed units for the domestic and commercial markets. Our windows and doors are manufactured from the highest quality architectural aluminium. Our aim is to become the biggest provider to the architectural aluminium manufacturing trade.

Tel: 078 868 9377 Email: dickson@dkraw.co.za Website: www.dkraw.co.za

Agricultural produce

Mr Harvest Veggies & Fruit We supply quality organic premium-quality fresh fruit and vegetables directly to the consumer. Mr Harvest Veggies & Fruit is a dynamic and progressive fresh-produce marketing and processing company.

Tel: 078 868 9377 Email: dickson@mrharvest.co.za Website: www.mrharvest.co.za

Dickson Import and Export Dickson Export and Import helps feed the world by sourcing and exporting or importing complete food product lines and brands from fresh produce to beverages. We export fresh produce fruits and vegetables from South Africa to the world. Our fresh produce reaches its destination as fresh as when it was picked from the farm.

Sea and air shipments transport organic, frozen and dry foods. We have developed strong relationships with many small, medium and large food manufacturers willing to offer their product range internationally.

Tel: 078 868 9377 Email: dickson@dicksonexportimport.co.za Website: www.dicksonexportimport.co.za

General

Boys Will Be Boys Entertainment Specialist event planning and management, festivals and concerts.

Tel: 078 868 9377 Email: dickson@bwbbentertainment.co.za Website: www.bwbbentertainment.co.za

OVERVIEW

Water Restructured water boards have greater responsibilities.

SECTOR INSIGHT Companies and households are focussed on water saving like never before.

• An agency has been created to help municipalities deliver water.

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new organisation has been formed to help municipalities deliver services. Research has shown that many municipalities, which in South Africa are the main delivery agent of water and waste-water services, are either functioning very badly or barely functioning at all.

According to Water Wheel magazine, 37% of water delivered to the nation’s municipalities is lost, at a cost of R7-billion per year. This presents an opportunity for innovative companies to provide better pipes and smart meters.

The Municipal Infrastructure Support Agency (MISA) falls under the Ministry for Cooperative Governance and Traditional Affairs and will assist municipalities to plan for, provide and maintain infrastructure.

The first action of MISA was to commission 81 engineers and town planners to get to work in areas that need the most help.

A study jointly commissioned by the Water Research Commission and the South African Local Government Association (SALGA) found that the country’s four-in-a-million ratio of engineers is a long way from the required 50-per-million. One response at national level was the importation of Cuban engineers to assist in the short term.

Another response to the municipal problem is a new national strategy which gives a bigger role to well-resourced water boards such SOUTH AFRICAN BUSINESS 2019

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as Umgeni Water and Sedibeng Water. Rand Water has expanded its original footprint and now serves an area which includes Gauteng, and parts of Limpopo, North West, Mpumalanga and the Free State. The national Minister of Water and Sanitation is the shareholder, representing the government of South Africa.

In terms of the National Water Resource Strategy, catchment area management agencies have been established to oversee water resource management on a regional basis. The Imkomati-Usuthu Catchment Management Agency covers Mpumalanga, parts of Limpopo and part of the Kingdom of Swaziland. Another example of a CMA is the Breede-Gouritz C a tc h m e n t M a n a g e m e n t Agency in the Western Cape.

The National Water Resource Strategy takes into account groundwater to a far greater degree than previous plans.

Extracting groundwater takes skill and money, but with droughts becoming commonplace it is likely to become a much higher priority in water planning.

OVERVIEW Innovation A long drought was finally broken in most of the country in late 2016, but the Western Cape continued to experience severe shortages until mid-2018. Tenders for desalination in various guises (including barges in Cape Town harbour) were issued and there is no doubt that a new phase in water management has begun.

Water harvesting (including installing tanks to collect rain water from roofs) has not been comprehensively exploited. Innovators and investors in the sector have a lot of scope to develop products and systems to help South Africa harvest rain water, store water and reduce consumption.

The Danish government has an agreement to help the South African government with water management and water efficiency. Companies such as smart-meter specialists Kamstrup are already active in the country.

A Western Cape company has developed a mobile unit for the South African National Defence Force that can produce drinkable water from any source, including sea water. Malutsa’s Blesbok Project has the potential to be converted to civilian use in situations such as refugee camps or remote and dry areas which services cannot reach.

The National Department of Science and Technology is piloting a Point-of-Use (POU) project in Malatane village in Limpopo, Eastern Cape and North West. The project is part of the department’s Innovation Partnership for Rural Development Programme (IPRDP), which is supported by the European Union.

Large projects The distribution of South Africa’s water means that large quantities must be piped to urban concentrations. The Vaal basin, which serves the most populated and industrialised part of the country including Johannesburg, receives water from seven inter-basin transfer schemes.

In 2017/18 the National Department of Water and Sanitation spent R12.5-billion on dams, water transfer schemes and bulk distribution.

The completion of the De Hoop Dam in eastern Limpopo means that people living in small municipalities can now expect bulk water delivery. The Trans Caldeon Tunnel Authority (TCTA) is responsible

ONLINE RESOURCES National Department of Water and Sanitation: www.dwa.gov.za South African Water Research Commission: www.wrc.org.za Trans Caledon Tunnel Authority: www.tcta.co.za Umzimvubu Catchment Partnership Programme: www. umzimvubu.org Water Institute of South Africa: www.wisa.org.za

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for bulk water supplies. The De Hoop Dam is the centrepiece in the large Olifants River Water Resource Development Project.

In KwaZulu-Natal, the first phase of the Spring Grove Dam in the Mooi River area has been completed on schedule and has increased water supplies in the Umgeni River catchment area. A new reservoir (Waterloo) near the King Shaka International Airport, and serving this northern area, has been constructed as part of the master plan that will see water delivered to this reservoir from the Northern Aqueduct Augmentation Project.

The Western Aqueduct project (valued at R864-million) and the associated Northern Aq u e d u c t Au g m e nt at i o n Project will inject water into the rapidly developing area north of Durban. The Tugela Bulk Water Scheme (valued at R1.4-billion) will supply water to KwaZuluNatal’s North Coast.

A water supply and hydropower project is planned on the Umzimvubu River in the Eastern Cape, under the control of the National Department of Water and Sanitation. The Umzimvubu catchment and river system stretches for over 200km from its source in the Maloti‐Drakensberg watershed on the Lesotho escarpment to Port St Johns.

Amatola Water is a leading water provider in the Eastern Cape. The body manages bulk water infrastructure across 50 000km², encompassing the district municipalities of Chris Hani and Amathole and portions of other municipal areas.

SOUTH AFRICAN BUSINESS 2019

PROFILE

Malutsa A leading South African water treatment company, specialising in the design, engineering and manufacturing of water treatment equipment and systems.

World class In 2005 Malutsa played a role in relief efforts around the Indian Ocean tsunami, having been approached by government departments of the Maldives and South Africa, the Red Cross and the United Nations Children’s Fund.

Staff

Co-founder of Malutsa, Nathan Herbert.

What we do Malutsa constructs fully functional water treatment plants using the latest technology sourced locally and globally in order to meet the particular need of each client.

Malutsa of ten supplies reverse osmosis water treatment plants to rural municipalities in water-stressed areas. Complex treatment processes ensure that the wastewater is compliant for discharge into environmentally sensitive areas.

Key markets Anywhere that desalination, water treatment, effluent treatment and specialised separation of process streams is required. All major industrial sectors, municipalities, aid organisations, NGOs, military.

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A staff complement of between 120 and 150 has extensive experience in water and wastewater treatment. The founders of the company have decades of high-level experience: Bernard Cannon in chemical engineering, Nathan Herbert in mechanical engineering.

Since the 1980s both men have been pioneers in the development of industrial applications for tubular reverse osmosis and ultrafiltration membrane technology and systems.

In terms of technology and chemical process engineering, Malutsa has the backing and support of some of the most experienced professional engineers in water and wastewater treatment. Malutsa also has supply agreements with and access to the technology of leading international companies in the chemical manufacturing, membrane and ultraviolet technology fields.

Innovative technology The landmark Blesbok Project has created a cutting-edge mobile water purification plant for the South African National Defence Force through Armscor. This extremely adaptable, robust and efficient unit is now the focus of the world’s first continuous-line production of the mobile water plant at the new custom-built Malutsa factory in Wellington.

Installer of ultraviolet (UV) disinfection systems Malutsa is the Southern African representative of the largest supplier of ultraviolet (UV) disinfection systems in the world, Trojan Technology. Malutsa has established the largest UV plants in Africa on behalf of Trojan.

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PROFILE

The new office block and factory premises that Malutsa built to create an assembly line for production of the cutting-edge Blesbok water treatment plant.

Vision

Strategic intent

We aim to be the leading local and global brand in bespoke and line-produced mobile and static water treatment and desalination systems.

Malutsa has an unwavering commitment to becoming a leading local and international player in a fiercely competitive and dynamically evolving water treatment environment.

The uniqueness of the post-apartheid industrial engineering landscape allows our innovative and entrepreneurial company to model a new paradigm in developing human capital. We intend to fulfil the desire for world-class attitude and world-class capability.

Our objective of redefining the stereotypical opinion of an African world player and leader in an intensely technical field is paramount to the passion and drive we advocate internally at Malutsa.

Mission Design, engineer, manufacture and install water treatment systems to empower industry, municipalities, militaries, hospitality and allied institutions with cutting-edge technology that meets immediate and strategic water needs.

Strategic objectives Five fundamentals identified: • Create unique environment where selfactualisation meets excellent market offering.

• Develop human capital holistically.

• Excel in product offering.

• Ensure company existence.

• Develop a culture of ownership.

CONTACT DETAILS Malutsa House, 1 Meent Street, Wellington Industrial Park, Wellington 7655 Tel: +27 (0)21 864 2620 Email: admin@malutsa.co.za Website: www.malutsa.co.za

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FOCUS

Ground-breaking mobile unit delivers pure water – anywhere The Blesbok Project is a game changer for water specialists Malutsa.

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lesbok is a mobile water provisioning system for the military which is able to purify all types of water including ground water, sea water and reclaimed water. In addition, the unit can exploit surface water, store water and deliver water packaging via sachets and bottles.

Experience The Malutsa team has experience of delivering highquality water in remote areas. With the North-West University, the Water Research Commission and the Meridian Trust, Malutsa delivered a desalination plant to the village of Madibogo, converting polluted ground water to potable water. When the Indian Ocean tsunami hit in 2005, Malutsa was part of the solution in providing water to disaster-struck communities.

The problem The South African National Defence Force needed to update its water provisioning systems for rapid deployment forces. Eight companies submitted bids. The signing of the deal by the Armament Corporation of South Africa (Armscor) to develop the state-of-the-art Blesbok Project was a watershed moment for Malutsa.

Long associated with 21st-century technology and world-class standards in the field of water treatment plants, the large and sophisticated Blesbok Project has given the Malutsa staff a chance to shine.

SOUTH AFRICAN BUSINESS 2019

The solution Conceived and designed by Malutsa engineers and staff, the Blesbok mobile plant is tough enough to cater for bone-dry deserts and the bucking decks of navy boats at sea: it goes where the military goes.

It is also versatile enough to use whatever water is available to produce drinkable water. The unit needs to be configured to cope with each kind of source

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FOCUS water (it can’t do two kinds at the same time) but easy-to-follow instructions are built into the unit and every component has its place so it’s easy to see if something is missing.

Altogether the new space covers about 4 000 square metres within the Wellington Industrial Park.

Storage and delivery

The Blesbok Project was designed for military use and so there will be other militaries around the world who become potential buyers for this innovative and successful product.

But the potential applications of the technology are vast. Few clients will be as demanding as the military and so there is enormous potential for producing versions of Blesbok that might be less robust but no less effective. Villages in remote areas that need pure water, aid agencies that regularly need to respond to crises such as flooding or earthquakes, refugee camps that spring up overnight without any infrastructure, government departments or research bodies doing work in water-scarce areas – all of these are possible applications for future iterations of Blesbok.

Applications

Water is stored in two ways: self-supporting tanks and bladder tanks. The self-supporting tanks have a capacity of between 10 000 and 40 000 litres while the bladder tanks can hold between 3 000 and 10 000 litres.

Blesbok is also a self-contained packaging unit.

In an hour, the unit can either produce up to 1 200 sachets of purified water or can fill up to 1 200 one-litre bottles.

Factory With the contract won, Malutsa had to produce 60 mobile purification plants in short order. Having built and developed Malutsa House themselves (and essentially sponsored the creation of a construction company to get it done), Malutsa set about building another new warehouse and office complex across the road from headquarters in 2015 to accommodate the punishing production schedule for Blesbok.

By 2017, the spanking new factory space was up and running, together with an office complex.

Empowerment As much as Bernard Cannon and Nathan Herbert are the company founders and the institutional memory of Malutsa, the young staff members who are taking the tubular reverse osmosis and membrane technology forward are clearly committed to the project and eager to learn. The work ethic at the company is strong, and the sense of pride in the Blesbok Project is tangible.

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INTERVIEW

Meaningful empowerment: being the change in people’s lives Malutsa Managing Director Bernard Cannon shares his views on bringing the latest in water purification technology to market.

Bernard Cannon

How did you get started in this business?

My business partner Nathan Herbert and I have been in the water purification business for the past 30 years, being involved since the advent of membrane technology in South Africa. Support and research by the Institute of Polymer Science at Stellenbosch University was formatively critical at this stage. Ground-breaking work on tubular reverse osmosis and ultrafiltration membranes led to pilot plant construction and work being conducted in the ‘80s. This led to accelerated industrialising of the novel technologies with the help of facilitating organisations like the CSIR and WRC. What is the ownership structure of Malutsa?

BIOGRAPHY Bernard Cannon is a founder and Managing Director of the Malutsa Group of Companies which includes Malutsa Water and Bernali Designs. He is an entrepreneur who diversified the business to secure collateral for expansion of the group with the view to the creation of employment and opportunities. An analytical chemist by profession, he was part of the pioneering team that introduced tubular membrane systems into the water and wastewater treatment market in South Africa.

SOUTH AFRICAN BUSINESS 2019

The ownership has changed over the years. After the democratic elections, we had investment from a Scottish company, which took 30% in 1997. In 2005 that shareholding was sold to Veolia Water but we bought out the whole company in 2016. Nathan is a mechanical engineer and I have the chemical engineering background, so we complement each other well.

Why is empowerment so important for you?

Historically, chemical engineering was a no-go for our people. We are very aware of the injustices of the past, and so empowerment is at the core of what we do. In everything we have done, it has been to grow people and expand their skills base. We have always done things for ourselves; we empower ourselves and others by this ethos.

Please give an example.

Even in construction of this building (Malutsa House, pictured above), we took people and helped them learn the skills to go into construction. After this building was finished, that group went on to form a construction company, and that has formed part our enterprise development drive. We have helped them financially, and

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INTERVIEW

with business skills. This is enterprise development in real terms.

We are exposing young people to opportunities and giving them choices. Studies are paid for and are actively encouraged and suppported.

Tell us about your expansion across the road.

Construction of the new factory and offices across the road (about 4 000sqm) began in 2015 and was completed in 2017. We realised we need more space for the Blesbok Project. We needed to manufacture 60 mobile purification plants, quickly. We needed to make a plan.

We have also developed the idea of a continuous production line for mobile purifiers, the first of its kind in the world. We developed this entirely with our own in-house architects and engineers.

How up-to-date is the technology you are using?

We were part of the team that pioneered tubular membrane technology in South Africa, so we have been aware of all the changes along the way. This has allowed us to stay current. We can say with pride that we have been part of this technology journey all the way.

Has your business journey been interesting?

There have been many challenges along the way, but it has been exciting! The Blesbok Project was really delivered against all odds. We have been the developers and designers of these very unique mobile purification units, mobile bottling and sachet plants.

Does the unit have wider applications?

The military option is obviously quite expensive because of the very high specifications for the military. If we produce something that is

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less robust, then it will cost less. It can have multiple applications, in remote areas, for flood relief, etc.

The list goes on. We are certainly looking at developing it further.

Please comment on the South African water sector.

It was intimated 20 years ago that South Africa was on the way to being an arid country. People ridiculed the idea, but now water is being talked about as “liquid gold”. For us it is not just about business, it is about keeping our people-centred approach. We really want to be the change in other people’s lives.

We believe that water re-use is the key. The only thing holding back the development of this strategy is the psychological block. We are helping developers and building owners who want to make their buildings “green” or get off the grid. The hotel sector is another important sector. We also specialise in bespoke plant construction.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW

Engineering Major restructuring is under way.

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or many years leading up to the Soccer World Cup hosted

by South Africa in 2010, the bigger engineering companies developed into conglomerates with several divisions and international operations. But the latest trend is for these large companies to unbundle and narrow their focus.

Some firms have kept their focus on niche areas such as electrical engineering, construction, fluids control and project management.

These firms continue to build on their expertise.

The reason normally given for the move to restructure is the fact that the expected infrastructure spending boom after the World Cup has not materialised. This has led to many companies aiming to become more flexible and better able to pursue projects in other countries in Africa and overseas.

With slow growth, national freight and logistics company Transnet has not been able to pursue its R300-billion infrastructure programme at the speed that it wanted to.

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SECTOR INSIGHT Renewable energy projects are creating opportunities for engineers.

Aspects of the programme, such as the acquisition of locomotives, are going ahead (despite some of the projects being the subject of corruption investigations) and the expansion programmes of the Gautrain and the Passenger Rail Agency of South Africa (PRASA) are providing work for engineers.

OVERVIEW Infrastructure spending has only slowed, not dried up entirely. One province alone, Gauteng, spent R30-billion on infrastructure between 2013 and 2016. A further R46-billion has been pledged for the years to 2019. In addition, Gauteng municipalities will spend R94-billion over the next five years using their city budgets.

Some 31 major housing developments have been approved for the various development corridors around Johannesburg. These projects will attract public and private money.

A study carried out by KMPG found that spending on infrastructure resulted in additional economic activity worth R26-billion and created 92 000 direct jobs. A major provincial infrastructure project was the technically demanding Gauteng Freeway Improvement Project, which involved many companies and several joint ventures. GOBA Consulting Engineers and Project Managers supervised the design and construction of the project, as it did the even bigger Vaal River Eastern Subsystem Augmentation Project (VRESAP). This water project entailed redirecting water flows from one system to another to feed the petrochemical and mining industries of Mpumalanga.

The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has created an entirely new industry in less than seven years, with investment of about R200billion in solar parks and wind farms. This has created huge opportunities for engineers of every sort.

Two of the world’s largest coal-fired power stations are still under construction in Limpopo (Medupi) and Mpumalanga (Kusile) and there are several coal and platinum projects in both of those provinces that are also sources of work for engineering companies. The Northern Cape and North West are attracting new mines (zinc, copper) or investments in new smelters and processing facilities (platinum, manganese).

South Africa has one engineer to every 3 166 citizens, compared to Malaysia where the figure is 543 citizens per engineer. The Skills Development Amendment Act is intended to improve the situation. Universities, universities of technology and

TAKING THE INITIATIVE IS FAR BETTER Maitazwifoma Engineering and Consulting takes its name from the Tshivenda proverb “Maitazwitoma hafani na madzulafhedzi”, which means that an innovative person who takes initiative is far better than one who is idle.

Scanning the list of services offered by Maitazwifoma, it is easy to see that this is a group of committed contractors, engineers and plumbers who really want to work.

Services range from electrical, construction and civil construction, to plumbing, road construction, concrete coring and waterproofing.

The company is also available to provide cleaning services, staff transport and general tasks such as painting, paving, partitioning and rubble removal.

With more than seven years of experience in building expertise in a range of construction and engineering disciplines, the leadership and staff of Maitazwifoma are enthusiastic and hard-working.

Clients include Attaq and Broll, WBHO (Maitazwifoma were subcontractors on the Newtown Junction Project), Jozi@Work, on behalf of the City of Johannesburg and the Johannesburg Development Agency.

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SOUTH AFRICAN BUSINESS 2019

OVERVIEW

companies are increasing their focus on the training of engineers.

The Engineering Council of South Africa (ECSA) has started a programme where trainees can earn certificates in specific disciplines from a range of institutions. The qualifications are in line with the council’s Exit Level outcomes.

Six of South Africa’s biggest construction companies have established a R1.25-billion skills fund.

Restructuring Murray & Roberts, a giant and diverse company, disposed of Murray & Roberts Infrastructure and Building Platform (MRIB) in 2016 to focus on procurement, project engineering and construction in certain resource sectors. Firefly Investments, the consortium that bought MRIB, is led by Southern Palace, which includes among its shareholders some MRIB managers and the Government Employees Pension Fund (GEPF). The transaction goes a long way to creating more diversity in the ownership in the construction and engineering sector.

SOUTH AFRICAN BUSINESS 2019

POLYURETHANE PRODUCTS AND REFURBISHMENT

Netha Engineering Technology supplies high-quality processing equipment for the relevant application.

The company specialises in polyurethane screen panels.

Dedicated on-site teams deal with screen panel maintenance. The removal and installation of screen panels is done on-site.

Netha Engineering Technology also offers polywedge wire panels, spray nozzles, polyurethane liners and self-cleaning spray bars. The company aims to become a diversified supplier of processing equipment.

The refurbishment processes offered by Netha aims to restore the condition of equipment at minimal cost. Equipment is considered refurbish-able if the cost of repair is less than 70% cost of new item.

Refurbishment is done with both ceramic and rubber.

Refurbishments can either take place on- or off-site depending on the degree of work and turnaround time needed to complete the work. Refurbishment and manufacture of the following equipment is currently done: hydro-cyclones, tanks and sumps, transfer chutes, screen under-pans, steel pipes, plastic pipes and HDPE pipes.

Genrec, a large steel engineering and fabrication business company that started out on the gold fields of early Johannesburg, was another Murray & Roberts company to be sold to the Southern Palace Group. It has a large plant outside Johannesburg at Wadeville and is involved in South Africa’s two biggest power station construction projects at Medupi and Kusile.

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OVERVIEW Group Five also sold part of its business (Group Five Pipe) to a black-owned entity in 2017 but the most significant change came in the group’s structure. A stand-alone construction division for South Africa (where the company has more than 7 400 employees) is part of a drive by the company to focus on smaller infrastructure projects and to dispose of manufacturing assets. Like most large South African firms in the sector, Group Five has significant investments offshore.

Transnet Engineering is in the process of changing its focus from only providing engineering services to other com-

ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za National Department of Public Works: www.publicworks.gov.za South African Consulting Engineering Firms: www.consultsa.co.za Southern African Institution of Civil Engineering: www.civils.org.za

panies in the Transnet group to becoming a multi-faceted business. The company is exploring opportunities in Africa to provide maintenance, repair and overhaul services (MRO). As an original equipment manufacturer (OEM) with the ability to manufacture locomotives, rail wagons and coaches, TE is opening up a wide range of markets not only in South Africa but in Africa and the rest of the world. The Trans-Africa Locomotive is the first locally designed locomotive produced

by TE in its Koedoespoort factory. There are seven business units located at Koedoespoort, including a foundry.

Maitazwifoma Engineering and Consulting Be part of the solution.

Maitaz wifoma Engineering and Consulting is a 100% black-owned full-service construction engineering company based in Johannesburg.

The company specialises in the following trades of the construction industry: • electricity • building construction • civil construction.

The staff of Maitazwifoma comprises qualified individuals who have extensive experience in the fields of civil, building and electrical engineering.

The company is registered with the Construction Industry Development

Board (CIDB) and is compliant with the following bodies: SARS, NBCEI, ECA, COIDA and CIDB. In electrical engineering services include: Heavy current engineering, electrification,

general electricity maintenance and COC issuing on completion of the job or project.

Other services: • Concrete coring and waterproofing.

• Plumbing: professional, fast and

dependable services. Fully licensed plumbers, drain technicians, HVAC and water restoration technicians can handle any plumbing, sewer, furnace or restoration problems.

• General services: Transport is available for our teams of contracted labourers to sites. Tasks can include garbage and refuse removal, painting, brick-laying, paving, rubble removal and partitioning.

Contact details: Physical address: 209 Silverdale, No 69 Claim Street, Hillbrow, Johannesburg 2001 | Tel: +27 11 048 2907 or +27 11 049 6297 Mobile: 072 829 8852 | Email: info@maitazwifoma.co.za | Website: www.maitazwifoma.co.za

PROFILE

Netha Engineering Technology Get it right the first time.

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etha Engineering Technology is a proprietary limited company located in Alberton. The company offers off- and onsite engineering services to the minerals processing plants generally within the Southern African mining industry.

The company is under the leadership and directorship of Neo Gumede. She is the founder and owner of the company and has 12 years’ experience in process engineering, manufacturing and process equipment supply.

Vision To become a leading supplier of high-quality products and engineering solutions to the mineral processing industry, within the shortest turnaround time and the most cost-effective price. Through dedicated people, Netha Engineering Technology endeavours to provide an unparalleled aftermarket support to our clientele, backed by stringent in-house quality control systems.

Services

• Equipment manufacturing and refurbishment including wear

lining solutions (tiling). Refurbishment is done with both ceramic and rubber and the scope of refurbishment and manufacture currently includes the following equipment: tanks and sumps, transfer shuts, steel and plastic pipes.

• Polyurethane products, including screen panels, spray nozzles, liners and self-cleaning spray bars.

CONTACT DETAILS Physical address: 10 Launceston Road, Unit 6 St Teresa Estate, Alberton, Johannesburg Contact person: Neo Gumede, Managing Director Email: gumeden@netha-tec.co.za Tel: +27 11 044 9015 | Cell: 081 458 8798 Fax: 086 541 8615 Email: enquiries@netha-tec.co.za Website: www.netha-tec.co.za

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Mission To provide high-quality engineering solutions and services at a highly competitive price within the shortest lead times possible.

“Get it right the first time”. It is the company’s goal to have 100% customer satisfaction with respect to quality, professionalism and speed to market.

Values Netha Engineering Technology strives to achieve and live the following non-negotiable values: • Integrity and trustworthiness: We earn your trust by doing what we say we will do.

• Respect: We respect our clients and our employees.

• Accountability: We take ownership for our own actions.

• Quality: We do it right the first time.

• Innovations: We use innovative technologies and ideas to stay ahead of our competitors.

Netha Engineering Technology continues to seek opportunities to add to the list of processing equipment we supply in order to become a diversified supplier that complements market needs for innovative technologies that are efficient and costeffective.

INTERVIEW

A winning combination in serving the mining sector Netha Engineering Technology Managing Director Neo Gumede explains her company’s competitive edge.

Neo Gumede

What are the core services that Netha Engineering Technology provides?

Netha Engineering Technology is a wear-lining solution company based in Meadowdale. We protect the steel and increase the life of the steel by installing high alumina tile and polyurethane liners. Netha manufactures and maintains cyclones, transfer chutes, steel tanks and launders. Netha Engineering manufactures vibrating screen panels for the mining industry.

In what sectors do you operate and where are you noting growth?

Mining industries: coal, gold and platinum. Coal mining in Mpumalanga is showing good growth potential.

BIOGRAPHY Neo Gumede is the founder and owner of Netha Engineering Technology and has 12 years’ experience in process engineering, manufacturing and process equipment supply.

She has extensive metallurgical experience in gold, platinum, iron ore and diamonds. She has also worked in the mining industry as a metallurgist and as an equipment supplier in the manufacturing sector. After conducting sales for some time, Neo moved up the ranks to take on leadership roles within the same sectors.

What gives Netha the competitive edge?

Our competitive prices, unbeatable lead times, metallurgical expertise and best-quality products in the market.

How did your journey in engineering begin?

It began in 2003 when I started my career as a chemical engineer at Vaal University of Technology. I then practised metallurgy for 12 years in various industries like mining, manufacturing and sales.

How did you overcome the obstacles faced by women in the field?

By developing a thick skin and becoming highly knowledgeable in everything I do.

Have things improved in the current era?

Yes, things have definitely changed. Women are now recognised, and people are more curious about the capabilities of women in mining or engineering.

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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

ETHICAL LEADERSHIP AS A CATALYST FOR TRANSFORMATION AND INCLUSIVE ECONOMIC GROWTH WHAT WE DO • BMF Branch, Provincial and National Events • BMF Networking & Engagement Opportunities • BMF Managerial Leadership Development Programmes • BMF Mentoring & Coaching Programmes • BMF Leadership Executives Search • BMF Advisory Services • BMF Achievement Awards

Corporate Member Fee: R34,500 incl. VAT Contact: leswene@bmfonline.co.za

• BMF Publication • BMF Apparel

KEY INITIATIVES • Young Professional Development Programmes • Duke Corporate Education Programmes • Maduke Lot Ndlovu Legacy Trust • Gender Equity Catslysts

Individual Member Fee: R747.50 incl. VAT Contact: thulisile@bmfonline.co.za

• SMME Desk • Managerial Leadership Development Programmes Provided by Various Corporate Members (e.g Deloitte, Sanlam, PwC, PPS, Nedbank, Allan Gray)

Young Professional Fee: R747.50 incl. VAT Contact: thulisile@bmfonline.co.za

Student Chapter Fee: University Specific Contact: leswene@bmfonline.co.za

OVERVIEW

Construction and property The shopping mall trend continues to grow.

A

big new development on Oxford Road in the Johannesburg suburb of Rosebank says a lot about the South African construction and property sector. The 300 000m² Oxford Parks mixed-use development by Intraprop began construction in 2017 and the first phase is expected to be valued at about R1-billion.

Firstly, South Africans love shopping malls. The South African Council of Shopping Centres calculates that the country has the sixthhighest number of shopping malls in the world. R2-billion was recently spent on Menlyn Park in Pretoria to expand it to 177 000m² of gross lettable space while the Gateway Theatre of Shopping in Durban, South Africa’s second-biggest mall, will spend R750-million in 2018.

Limpopo’s provincial capital Polokwane has had the super-regional Mall of the North since 2011.

Secondly, development often follows existing patterns (RosebankSandton is already the richest and densest retail and office precinct in Africa). Many of South Africa’s biggest firms have their headquarters in this area: BPSA will take up residence in Oxford Parks. Thirdly, the

concept of “lifestyle” malls (combining apartments with office, entertainment and retail space) has caught on. The best known of these is Johannesburg’s Melrose Arch.

Finally, the Oxford Parks project illustrates a big shift in the construction sector away from large conglomerates towards smaller, black- empowered

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SECTOR INSIGHT More South Africans live in flats than ever before.

FOCUS

Mueletshedzi Logistics Meeting and exceeding the petroleum needs of clients.

Services

M

ueletshedzi Logistics (trading as MLTL) runs a dedicated fleet of trucks and tankers to provide a logistical backbone in order to meet and exceed the petroleum needs of clients.

Mueletshedzi Logistics supplies petroleum products to other companies, retailers’ partners and all types of industries across Africa. MLTL is an Authorised Distributor for Total South Africa in the Southern African market. The company also offers storage facilities for petroleum products.

Mission statement and values To supply in a safe, dependable and reliable manner all products and related services throughout sectors and industries in chosen South African regions.

• Reliability • Integrity • Accountability • Commitment

CONTACT DETAILS Tel: +27 11 695 4845 Mobile: +27 76 847 2030 and +27 81 359 4807 Fax to email: 086 566 3606 | Email: info@mltl.co.za Website: www.mltl.co.za

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Supply and installation of fuel tanks. Supply of petroleum products (aviation gasoline, biofuels, diesel, jet fuel, liquefied petroleum gas, paraffin and petrol).

Lubricants. Bitumen. Garage cards. Earth-moving equipment (yellow machines) including excavator, TLB, grader, roller, frontend loader and articulated dump trucks. Parrot Products.

Transportation of a wide range of machinery and products using the following vehicles and equipment: low-bed, flat-deck, fuel tanker, side tipper, six cube tipper and 10 cube tipper.

Target markets The target markets are haulage companies, white-site (unbranded) filling stations, truck stops and end users. The company intends to be the biggest supplier in the South African provinces of Gauteng, North West, Northern Cape and the Eastern Cape. Externally, the focus is on Botswana, Zimbabwe, Malawi and Zambia.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW

companies. Like many such multi-disciplinary construction and engineering firms, Murray & Roberts has decided to unbundle and the sale in 2017 of Murray & Roberts Construction to a black-led consortium is part of a wider trend. The Southern Palace Group is the majority shareholder of the company (renamed Concor) with the Public Investment Corporation (PIC) holding 25%.

Supporting this trend is the fact that two of South Africa’s nine listed construction companies (Ensor and Basil Read) entered businesses rescue in mid-2018.

Away from the glitz of multi-purpose malls and towering office blocks, Statistics SA has found that the percentage of South Africans living in flats has risen markedly. Whereas 26 out of 100 approved plans in 2013 were for flats, this figure reached 59 in 2016. Although the total number of people living in flats is still relatively small (5.4%), this figure will rise as urbanisation increases.

BAKENBERG READY MIX STAFF READY TO SERVE Bakenberg Ready Mix is a dynamic company operating in the Waterberg District Municipality.

Founder and owner David Mnisi pulled together resources and skills which he acquired in more than a decade of working in a variety of sectors. He has worked extensively as a marketing executive for FMCG firms in Gauteng. Other business experience ranges from working as a sales representative and restaurant owner to mention a few.

Frans Makgoka is the operations man at Bakenberg Ready Mix. With experience in the mining sector, he moved into the business management field where he is now responsible for the coordination of operations of the company and batching.

Transport and client relations are the domain of Jimmy Tlhabane. An enthusiastic businessman himself and a people-oriented person, Frans brings energy and vibrancy to the organisation.

He is obsessed with efficient service delivery.

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Urban Development Zone

OVERVIEW

operty regeneration and growth through tax incentives.

luplace Properties is investing in providing accommodation in centralbelieves Johannesburg. the rental market has In order to fight urban decay and to encourage investment in inner cities, a tax incentive was created called the Urban Development

Zone tax incentive.

UDZs Johannesburg and Cape Town order to fight urban decayThe and tofor encourage investment inwere inner first allocated in 2004. The inner city of Johannesburg, comprising ties, a tax incentive was created that applied to major South African just less than 18km², is the largest UDZ in South Africa and it is ties. This is called theitsUrban Development Zone tax incentive. The expanding footprint.

Making inner more liveable is afirst global trend. Theinmove DZs for Johannesburg andcities Cape Town were allocated 2004. back to cities is spurred partly by the relative cheapness of property inner city of Johannesburg, comprising just less than 18km², is the in CBDs, legislation encouraging inner-city investment and even a est UDZ in South Africa it is expanding perception thatand suburbs are boring. its footprint in response Private that developer Properties has purchased nine large gnificant successes haveIndluplace been achieved. apartment blocks, one of which is shown above, taking its total he Urban Development Zone tax allowances (Section 13quat) buildings in central Johannesburg CBD, Berea and Hillbrow to 23: vide for an 33% accelerated on the costs of the units depreciation are bachelor pads,allowance 22% are two-bedroomed flats. of dings erected, to, extended improved inside a UDZ. The The added listed company (its majoror shareholder is Arrowhead) intends to “aggressively grow(SARS) its portfolio” high-yielding as it to th African Revenue Service has of extended theproperties incentive March 2020. Municipalities can apply for extension to the existing ONLINE RESOURCES Zs via the National Treasury. There are five requirements to qualify Black Business Council in Built Environment: www.bbcbe.org UDZ tax deduction.

These relate to the building, the nature of the Construction Industry Development Board: www.cidb.org.za Z, trade considerations, specifics of Authority: ownership and to the dates Constructionthe Industry Training www.ceta.org.za South African Property Owners Association: www.sapoa.org.za he applications. The fact that the incentive has been extended to 0 gives investors a good chance to take advantage of favourable ditions in Johannesburg.

101 has plans to he Johannesburg Social Housing Company (Joshco) vide affordable rental accommodation in 12 inner-city buildings were recently identified for that purpose. But the main target for

huge potential. The developers of the trendy reaching out Maboneng to other areas a Precinct are also very upbeat. regions on the city’s outskirts. T Boost Property Management wants to achieve nothing l is city building a 10-storey apartment Hillbrow. The thanblock the in“structural transform R40-million Kaptejn Corner will tion of the inner city’s econom have 128 apartments. and An physical innovativelandscape”. approach to unlocking the of value of land The City Johannesburg h inidentified the traditional areas is unthe following nodes der consideration. The housdevelopment: ing agency of the Limpopo • C a r l t o n AgencyP r e c i n Economic Development (LEDA) hasJohannesburg’s proposed a plan for tall the conversion of Permissions to building attracts touri Occupy (PTO) to title deeds in revamp; S deep rural undergoing areas such as Vhembe and Sekhukhune.

National Rink TVThe and film studio b Home Builders Registration ing developed; conferen Council (NHBRC) will consider centre planned. the proposal.

Park Station: intermo node catering for cars, b SOUTH AFRICAN 2019 and ta es, railBUSINESS commuters Gautrain link to OR Tam International Airport; w •

PROFILE

Maritz Electrical Delivering projects within budget, on time and to clients’ expectations, every time.

F

rom commercial electrical applications to high-end floodlights and sports stadiums and spotlights using state-of-the-art products, Maritz Electrical delivers end-to-end electrical solutions tailored to clients’ needs.

Delivering service excellence and exceptional quality are key differentiators for Maritz Electrical and what clients have come to expect.

Maritz Electrical is an empowerment company established by Kurt Maritz in January 2000. Maritz Electrical is BBBEE compliant (Level 1 contributor).

It is ISO 9001 certified and fully compliant with the Occupational Health and Safety Act with a full-time, trained safety representative.

In 2018 the company’s three branches were consolidated, with all 150 staff members now working out of a newly renovated 3-000-squaremetre factory and office facility in Athlone. The company employs full-time, licensed installation and master electricians. The company’s artisans have completed the ORHVS. Maritz Electrical places great emphasis on its SOUTH AFRICAN BUSINESS 2019

relationship with clients, private or commercial, and prides itself on the ability to respond to any contracting requirements in an efficient and costeffective way. Maritz Electrical aims to contribute positively to the South African economy, provide excellent workmanship and be a leader in quality service provision.

World first In 2017, St George’s Park became the world’s first International Cricket Council-compliant, LED-lit stadium and the first such stadium to be fitted with theatrics. Maritz Electrical won the contract to install the Musco Lighting system at the venue after visiting the US with officials from Eastern Province Cricket and the national cricket board.

Over four days in December 2017, the famous ground celebrated the landmark of being the first South African venue to host a day-night Test match, against Zimbabwe. The R27-million contract was completed on time and on budget by a team from

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PROFILE

Maritz Electrical led by Warren Williams. Two project managers from Musco Lighting supported the installation. The lights on top of the Duck Pond Pavilion were hoisted at night, the process being illuminated by floodlight.

Select current projects Coetzenburg Athletics Stadium is undergoing a R40million revamp and Maritz Electrical is part of the team of contractors charged with making it happen to the highest specifications. Apart from Varsity Athletics and national championships, Stellenbosch hosted more than 150 international athletes over the summer as they prepared for the World Athletic Championships.

Maritz Electrical has been contracted by the municipalities of Stellenbosch and Overstrand for electrification of large housing projects. This is a relatively new area for Maritz and one in which the company is building specialist skills.

Other flagship projects

• Cape Town Grand Parade: Re-lit with Musco

fixtures to improve the lighting level to reduce the personal crimes being committed because of poor lighting.

• Cape Town Festive Lights including Adderley, Strand and Main streets: Maritz Electrical installs the popular Festive Lights.

• Security Lighting for Waste Water Treatment plants: Musco’s metal halide and LED system is the preferred product of Cape Town’s Department

of Water and Sanitation and Maritz Electrical is the proud installer.

Services Maritz Electrical works closely with its customers, ensuring that the task or project is completed on time and on budget, using the highest quality products available. In particular, Maritz Electrical has become a premier supplier and installer of dedicated sports lighting. This includes schools, universities and multisports stadia.

The company works in all residential and commercial areas of electrical installation and maintenance. Its electrical services include project management, design, supply and installation of electrical systems including: • Electrical and reticulation services • Testing and commissioning • Water analysis, monitoring, management and purification systems • Lighting and power • External lighting • Mechanical services integration • Emergency switchgear • HV and LV switchgear • Pre-planned maintenance.

Professional memberships BBBEE Level 1. ISO 9001 certified. Electrical Contractors Association. Master Builders Association member. Member of South African Institute of Lighting (SAIL).

CONTACT DETAILS: Physical address: 11 Noll Avenue, Athlone, Cape Town 7764 Tel: +27 21 703 0867 Fax: 0864 552 436 Email: tenders@maritzelectrical.co.za Website: www.maritzelectrical.co.za

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PROFILE

Mamli Projects Experienced staff offer expert construction services.

Objectives To expand our business coverage area in terms of rendering services. To render high-quality services, thus maintaining the good reputation of the company.

To empower as many communities as possible, especially black communities, taking into consideration the youth in our region.

To stimulate local and regional economic growth.

Our services

M

amli Projects is a BBBEE Level 1 construction company providing services in building construction, renovations, alterations, paving, demolition and refurbishment.

Mamli Projects is a broad-based black economic empowerment company, 100% owned by an indigenous woman, Josephine Mamlingaphi Nkosi. It strives to attain success through determination, focus and hard work, giving special attention to training of the unskilled youth, women, disabled people and the previously disadvantaged.

Mission Mamli Projects strives to be a leader in providing value-added construction services to our clients by creating a successful partnership with them throughout the construction process. Our pledge is to establish lasting relationships with our clients by exceeding their expectations and gaining their trust through exceptional performance.

Vision Our goal is to become the preferred company for construction in both the public and private sectors through diligent commitment and to provide self-sustainability to all our employees.

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The company has extensive experience in providing expert building services on a wide range of demolition, construction and refurbishment projects across all sectors of the industry: • building construction • renovations and alterations • paving.

Equipment To enable our experienced workforce to do quality work, good equipment and tools have been acquired over the years. This includes six bakkies, a six-ton Toyota truck, two soil compactors, five generators, two dumpy levels and a V-Tec trailer. We also use a roller, scaffolding, a Bobcat JCB155, a Bomag Single Drum VIB Roller BW55E, Bomag Vibrating Plates BT65/4, a Bomag Double Drum Roller and a Bomag Stroke Tamper BVP18/4.

PROFILE

Completed projects Some of the projects completed by Mamli Projects for the Department of Public Works include the construction of MC Zitha Combined School at Masibekela, the erection of palisade fencing and water supply at Soshanguve High School, the construction of 19 VIP toilets at Mgubho Primary School and the construction of six water-borne toilets at Engwenyameni Primary School.

Other projects and clients include the construction of Thembisile Fire Station at Tweetfontein (Nkangala District Municipality), construction of an animal clinic at Casteel Bushbuckridge and the renovation of the Lowveld Agricultural College (Mpumalanga Department of Agriculture) and the renovation of chalets in the Kruger National Park (SANParks).

For the National Department of Public Works, Mamli Projects worked for five years on the maintenance and servicing of buildings, civil mechanical, electrical infrastructure and installation at the Lebombo Port of Entry.

Current projects Three current projects show Mamli’s versatility:

Project

Client

Value

Engineers

Construction of Bhambanana campus

Department of Higher Education

R167.4-million

Hector Makgatho

of Umfolozi TVET College

and Training

Installation of generator sets at police

Department of Public Works

R4.1-million

AES Consulting

Department of Public Works

R2.4-million

Seabo Consulting Engineers

station Installation and upgrade of kitchen equipment at military base

CONTACT DETAILS Contact person: Mamlingaphi Josephine Nkosi Physical address: 189 Schoemansdal, Shongwe Mission 1331 Postal address: PO Box 861, Shongwe Mission 1331 Tel: +27 13 781 0702 | Fax: 27 13 781 0701 Fax 2 email: 086 514 5811 | Email: admin@mamliprojects.co.za Website: www.mamliprojects.co.za | Company registration: 2013/175770/07

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PROFILE

Bakenberg Ready Mix A competitive edge in concrete supply. price structure that is differentiated to accommodate various levels of affordability. It is, however, our passion for great service and commitment to excellence that make us the ideal professional service provider to partner with you for you.

Branches

B

akenberg Ready Mix is a division of Mnisi Turnkey Projects (Pty) Ltd, a proudly South African, black-owned company based in Bakenberg Village, Mokopane, Limpopo Province.

It was founded in 2016 by David Walter Mnisi. He saw an opportunity to create a professional, client-oriented, ready mix concrete supply company to cater for those who value professional services. The building industry is gaining momentum in the villages and elsewhere in Limpopo. Bakenberg Ready Mix currently operates a mobile batch plant with two ready mix trucks for any project needs.

The company is involved in all kind of road building, RDP housing and the mining sector. Job opportunities for local communities is a high priority and the company engages in social responsibility projects.

Mission To be a supplier of choice and offer the best product (concrete) in the Waterberg region of Limpopo.

Competitive offering Clients place a high premium on value for their money. In order to maintain a satisfied client base, Bakenberg Ready Mix has designed a

CONTACT DETAILS Physical address: 93A Mmotong Village, Bakenberg, Mokopane, 0611 Tel: +27 15 110 0150/ 083.317.0294 | Fax: 086.564.1645 Email: info@bakenbergreadymix.co.za Website: www.bakenbergreadymix.co.za

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Mokopane, Rustenburg.

Lephalale

and

Current project Client: Conco Group/ Eskom Borotho Powerline Project. Supply of 35mpa and 40mpa ready mix concrete since November 2017.

Our plant is based in Marken, Limpopo.

Client: Stefanutti Stocks.

Concrete supply on Rietfontein tar road project.

Other services Building materials, crusher sand and dust, manufacture of bricks, concrete and stone.

INTERVIEW

Concrete opportunities in rural areas Bakenberg Ready Mix founder David Mnisi explains how the home-building industry is booming in Limpopo.

What are your main services?

David Mnisi

We supply ready mix concrete, concrete stone, 13mm and 19mm stone, and bricks.

Where did you get the idea for starting this business?

The idea to start this business came through research into the market. In travelling around Bakenberg and surrounding areas for other business that I was doing, I became aware of the need for a professional, clientorientated ready mix concrete supply company to cater for those who value professional services.

In what sectors do you operate?

We deal with both the public and private sector, mostly in the construction industry.

Where has the growth been in the last few years?

BIOGRAPHY For more than a decade, David Mnisi worked in the business world, gaining experience in a wide range of positions in different economic sectors. Having been a marketing executive in the fast-moving consumer goods field, a restaurant owner and at one point being responsible for sales, David developed a sound appreciation of customer needs and the market. In 2016 he decided to harness these skills and resources into starting a business in the Bakenberg area.

House building is the subsector that has grown the most in the last few years. The building industry is gaining momentum in our villages and in Limpopo Province more generally. We currently operate a mobile batch plant with two ready mix trucks for any project needs.

What areas do you operate in?

We are based in Bakenberg (Mokopane, Limpopo) but our mobile batch plant allows us to go anywhere in the country.

Please tell us about any projects you have successfully completed.

We supplied Stefanutti Stocks Roads & Earthworks for a rural road they built to connect villages in the Rietfontein area. We were also contracted as a supplier for Eskom’s Medupi-Borutho powerline project from Lephalale to Bakenberg.

Do you plan to expand in the near future?

We have plans to buy new plant and two new trucks in order to expand our footprint throughout South Africa.

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OVERVIEW

Manufacturing Incentives are in place to support new investment.

SECTOR INSIGHT US tariffs on steel imports will affect South Africa.

• The leather sector is making a comeback.

T

he manufacturing sector employs the third-most people of South Africa’s economic sectors, about 1.7-million, after financial services and retail.

The Department of Trade and Industry (dti) is the state’s lead promoter of the sector. The main vehicle for the dti is the Industrial Policy Action Plan (IPAP) which is periodically updated with particular focus areas. In marking the 10th version of IPAP in 2018, the department noted that some “deep-seated structural problems” in the domestic economy are still in place.

The Manufacturing and Competitiveness Enhancement Programme (MCEP) of the National Department of Trade and Industry (dti) announced in 2017 that it had disbursed a total of 1 552 grants to the value of R5.8-billion which had resulted in 230 000 jobs being “sustained”. Plastics, pharmaceuticals and chemicals received 31% of the money, metal fabrication, capital and real transport equipment 28% and agri-processing 21%.

Because of the dti’s Clothing and Textile Competitiveness Programme, that sector currently employs around 95 000 workers, contributing 8% to manufacturing GDP and 2.9% to overall GDP. In the leather sector 22 new factories have been opened, supporting 2 200 jobs. Manufacturing value addition for companies receiving the incentive has grown by 60.8%, and productivity by 22.3%.

The various IPAPs are intended to create policy certainty to stimulate investment. The creation of an investment “one-stop shop” is another measure aimed at the same goal. Investor support is also available in terms of tax incentives, on budget support measures and Special Economic Zones (SEZs). Increasing demand for goods manufactured locally through governSOUTH AFRICAN BUSINESS 2019

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ment procurement programmes is yet another way of stimulating the manufacturing sector.

Growth elsewhere in Africa and beyond is something that South Africa’s manufacturers are increasingly turning their attention to.

Relationships with other Southern African countries through SADC, and to Brazil, Russia and India through the BRICS grouping hold tremendous potential for makers of goods in South Africa.

Innovation The Support Programme for Industrial Innovation (SPII), run by the Industrial Development Corporation (IDC) on behalf of the dti, promotes technology development. New technology has been embraced by some innovative manufacturers. Desert Wolf’s Skunk Riot Control Chopper is an unmanned light aerial vehicles (UAV) that has proved popular in the world market. Denel makes a drone product that can be adapted for use by conservationists.

Another IDC initiative has allocated R23-billion over three years

OVERVIEW to support the Black Industrialist Programme to help existing entrepreneurs grow.

Additive manufacturing is receiving support from the state through the Department of Science and Technology and a strategic business unit with a focus on new industries at the dti. Additive manufacturing uses 3D data.

The main sectors receiving support (and R358million in public money has been invested in research since 2014) are jewellery, tooling, medical and dental and aerospace. Products such as titanium medical implants and aerospace components have come out of the programme.

The Centre for Advanced Manufacturing (CFAM) is housed at North-West University in Potchefstroom. The centre specialises in extruder technology, an important component in the food-manufacturing process. CFAM works with Gaborona Consulting, the Vaal University of Technology, Thripp (a dti technology programme) and ChemCity, an initiative of Sasol.

Metals Among other important sectors are metals beneficiation (more than 50% of the world’s ferrochrome is produced in South Africa), coke and refined petroleum products and information and communication technology. Steel and petroleum collectively make up about 45% of South Africa’s total manufacturing production capacity.

Steel has been experiencing a volatile few years, with reduced demand from China severely reducing production volumes in South Africa. The Steel and Engineering Industries Federation of Southern Africa (Seifsa) reported that 19 000 jobs were lost in the metals and engineering sector in the nine months to September 2016. New import tariffs of 25% imposed by US President Trump will further hurt the SA steel sector.

This sector makes up 28% of manufacturing in the country. The country consumes about 150 000 tons of stainless steel every year. South Africa makes about 500 000 tons of primary stainless steel (most of which is exported) and imports a further 40 000 tons.

SOLUTIONS FOR AFRICA Modern manufacturers are coming up with ways to improve efficiency. In Africa, water saving and conservation is becoming a vital part of doing business.

Marley Pipe Systems has released a revolutionary new hot and cold water supply solution called Profit. Not only is Pro-fit made from the highest grade PE-RT (Polyethylene with Raised Temperature Resistance), which reduces loss through punctures and tears, but it also reduces installation costs by 50% and is resistant to corrosion and impact.

Water passing through the system is healthier and by avoiding the use of metal any scrap value is eliminated, thus making the product more secure.

The recent extended drought has reminded all South Africans of how fragile water supply can be. The Marley Vynadeep® Rainwater System efficiently channels roof water into tanks, reducing demand on ground water and supplying vital back-up for individual private or corporate premises.

Marley Pipe Systems is active in several parts of Africa and with an increased uptake in the use of gas, Marley’s presence is growing. As big retailers expand their footprints in Namibia, Mozambique and Malawi, so Marley distributes larger volumes through those channels. With the mining sectors of countries such as Zambia, Tanzania and the DRC showing signs of recovery, so the gas market is growing further still.

Cheap imports have been at the heart of problems for the steel sector, as they have for textiles, but other issues include energy prices and labour costs.

The dti has moved to try to protect the local steel industry by regulating the use in the construction sector of locally produced and manufactured steel and steel products. Another possible intervention is related to

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OVERVIEW energy prices. Silicon Smelters, which has plants in Mpumalanga and Limpopo, has asked for a two-year negotiated price agreement (NPA) on electricity, which would allow it to resume production. The National Energy Regulator of South Africa (Nersa) has the power to grant such exemptions where the industry is regarded as strategic.

The structural mill of Evraz Highveld Steel in Witbank was officially relaunched in June 2017 after ArcelorMittal South Africa signed a contract to supply blooms and slabs for the mill to make into heavy structural steel. Evraz Highveld went into business rescue in 2015. The contract is for two years with an option to renew for another year. Alternately, ArcelorMittal may buy the mill after the two years.

Elsewhere in Mpumalanga, the presence of Ferrometals means that Mpumalanga is still an important place for metals and machinery manufacturing, but the turbulence in the steel sector has reminded everyone of the need to diversify. Samancor Chrome (which runs Ferrometals) is the second-largest ferrochrome producer in the world with three plants.

Middelburg-based Columbus Stainless is a major supplier of stainless-steel products to the domestic and international market. The Manganese Metal Company in Nelspruit is the largest producer of pure electrolytic manganese metal in the world.

Iron production at Saldanha in the Western Cape includes hot-rolled coil produced by ArcelorMittal and cold-rolled and galvanised steel by DSP, a joint venture between South Africa’s Industrial Development Corporation (IDC) and a Belgian company, Duferco.

VARIETY AND QUALITY Tirisano Holdings manufactures between 200 and 1 700 pairs of shoes per day at its facility in Phuthaditjhaba in the Free State.

The factory produces formal shoes and school shoes, sneakers and pumps. The pumps are adorned with artistic designs, including African print designs.

Some testimonials attest to the professionalism of Tirisano.

“Since our involvement with Tirisano Shoe Company, they have been professional, dependable and competitively priced with good aftersales support. Tirisano supplies shoes to many of our beneficiary schools.”

– Rivers Foundation “We have had various engagements with Tirisano (Pty) Ltd with regard to conducting assessments and due care with a view of considering development support to them in the future. To this end we had a site inspection at their facilities in Qwaqwa. The school shoes were manufactured on time, with the requisite quality. Tirisano’s conduct was always professional.”

– National Development Agency

ONLINE RESOURCES Aluminium Federation of South Africa: www.afsa.org.za Centre for Advanced Manufacturing: www.cfam.co.za Manufacturing Circle: www. manufacturingcircle.co.za Steel and Engineering Industries Federation of Southern Africa: www.seifsa.co.za South African Textile Federation: www.texfed.co.za

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Service that delivers the

Difference

Air Products South Africa (Pty) Limited manufactures, supplies and distributes a diverse portfolio of atmospheric gases, specialty gases, equipment and services to the Southern African region.

Air Products touches the lives of consumers in positive ways every day, and serves customers across a wide range of industries from food and beverage, mining and petrochemicals, primary metal and steel manufacturers, welding and cutting applications to laboratory applications.

Founded in 1969, Air Products South Africa has built a reputation for its innovative culture, operational excellence and commitment to safety, quality and the environment. In addition the company aims to continue its growth and market position in the Southern African region.

www.airproducts.co.za

INTERVIEW

Stepping out to create quality products The CEO of Tirisano Holdings, Kgotso Ramooana, relates how a revitalised shoe factory is creating employment.

What is your main business?

We manufacture a variety of shoes, including pumps, sneakers and school shoes. Our production capacity varies from 200 pairs a day to 1 700 pairs a day.

Kgotso Ramooana

How was Tirisano established?

I took over a factory which was previously owned by a co-operative which had collapsed. I had the privilege to have worked within the co-operative while in school, assisting with marketing and research.

Seeing the rising unemployment within my community, I took it upon myself to re-establish the factory. We inherited a few machines from the co-operative which we had to refurbish to industry standard. We targeted the CSI school initiatives and pitched to manufacture school shoes for donations. We built traction which enabled us to approach government agencies for both funding and as potential clients.

Did you have tough times?

BIOGRAPHY Kgotso Ramooana is the youngest black shoe manufacturer in South Africa. He has a diploma in Arabic for Non-Arab speakers and is currently studying for a diploma in digital marketing. Growing up in a rural area, he succeeded against the odds. Kgotso has been part of the Standard Bank Accelerator Programme for Entrepreneurs and in 2018 participated in a seminar on footwear designing and manufacturing technology organised by the International Business Vocational College in China. His long-term vision is to see the factory expanding its branches worldwide.

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Market penetration was really difficult due to entry barriers. The wellestablished players dominate the market. From the beginning I knew that market analysis as well as establishing strong ties with other players in the industry would help me to have a strong foundation.

We conducted a lot of research by visiting factories in Durban and gaining industry insight.

What is the secret of your success?

The success of our business lies in creating enduring relationships within the industry, producing high-quality goods for our clients, and a dedicated team that is always willing to go the extra mile.

Is your business helping to uplift the community?

Yes, we provide employment and we have up-skilled our team. We also donate shoes to our local community.

What area of your business is growing?

Our main focus has been to manufacture leather school shoes. We are in the process of increasing our production line to include the manufacture of PVC school shoes.

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PROFILE

Tirisano Holdings Building a reputation in shoe manufacturing.

What we do We manufacture a variety of shoes, including school shoes, pumps and sneakers. These are manufactured from a variety of materials. The success of the shoe factory is founded on the creation of enduring relationships within the industry, and the importance of maintaining high-quality products and solid partnerships with our clients.

Customer focus Key factors that help us succeed are: customer satisfaction, continuous staff training, a highly talented and experienced management team and maintenance of existing contracts.

Vision

Skills development

Working together, our vision is to provide our customers with uncompromising quality, innovation and continuous improvement, which will result in profitable growth and financial strength for our company.

Management will need intensive training on various managerial fields to consolidate their knowledge.

We will be working with various service providers and networking with other business organisations.

Establishment of affirmative action or equity for the company will be enhanced. We will embark on programmes to familiarise ourselves with quality management protocols. We are committed to obtain advanced learning and prepare ourselves for any joint venture in order to expand.

Mission To build consistent business relationships and a good reputation among all of our customers. To encourage innovation and new ideas with new business approaches to keep a competitive edge. To become one of the most reliable and trusted shoe manufacturers in the market so all of our clients can completely rely on us. To consider and cater to potential wider market requirements. By drawing upon our experience in industrial manufacturing and distribution, we focus on delivering optimal solutions in the least time possible, through collaboration, knowledge sharing and improved efficiency.

CONTACT DETAILS Physical address: Factory No 95 Site 140, Industrial Area 3, Phuthaditjhaba, Free State 9866 Tel: +27 (0) 71 747 2280 Email: info@tirisanoholdings.com Website: www.tirisanoholdings.com

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OVERVIEW

Food and beverages Acquisitions are supporting backward integration.

F

ood and beverages make up 26% of the South African consumer products sector, just ahead of agri-business (25%), diversified companies (23%) and sugar producers. Between 2009 and 2016 the sector grew by 2%. Most recent capital expenditure has targeted improving efficiency rather than expansion of production.

Some of the biggest companies in the sector are Tiger Brands, RCL Foods, Pioneer Foods, Clover, AVI and Astral.

The food and beverages sector employs about 230 000 people.

Beverages account for just over 4% of all manufacturing sales while food is responsible for 13.5%. Within the sector, beverages accounts for 24% of sales. One quarter of the 37% of national GDP that is generated by agri-industries derives from agri-processing.

Gauteng, the Western Cape and KwaZulu-Natal are the leading provinces, with about half of the companies in the sector located in Gauteng. There are approximately 4 000 food-processing companies in Gauteng, employing more than 100 000 people. South African Breweries is spending R2.8-billion on expanding two of its three Gauteng breweries. Heineken’s brewery at Sedibeng is undergoing its second expansion since it opened in 2010.

Nestlé operates four manufacturing plants in the province and has invested heavily in increasing production volumes. Tiger Brands runs six plants in Germiston that produce a range of meat products, and the establishment of a new tomato sauce plant and pasta plant rank among the company’s recent investments in the province. McCain Foods SOUTH AFRICAN BUSINESS 2019

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SECTOR INSIGHT Unilever has invested R4-billion recently. produces frozen vegetables for the Gauteng market.

Global consumer goods company Unilever, whose plant in Durban is shown above, has invested nearly R4-billion in recent years, including R600-million in a Gauteng ice-cream factory that will boost the company’s drive into Africa.

This highlights a trend across the food and beverage sector. In 2016 Nestlé South Africa invested R1.2-billion in adding instant coffee to the products it makes in South Africa.

RCL Foods, formerly Rainbow Chickens, has been on an aggres-

OVERVIEW sive run of acquisitions. RCL is reconsidering its business model with a thought to producing fewer frozen chickens and doing more in the fast-food sector.

Although the South African poultry business took a knock because of the relaxation of import duties, it is still a big sector. Earlybird Farm, one of Astral’s operations, processes 800 tons of chicken per day at its two factories in Olifantsfontein. RCL operates 18 farms and two feed mills in Gauteng alone. Daybreak Farms, an AFGRI operation in Springs, produces about 650 000 broilers every week.

By volume and value, the Joburg Market is the biggest in Africa.

There are 55 cold rooms that can accommodate 4 561 pallets of fresh produce at any one time. An average of 10 000 buyers congregate daily on the market’s 65 000m² of trading space.

The Eastern Cape provides approximately a quarter of South Africa’s milk, and the industry is further expanding as producers tend to favour high-rainfall coastal areas. The Coega Dairy in the Coega IDZ produces the brand Coastal, sells milk to all parts of South Africa and manages the Famous Brands Cheese Company.

The province’s farmers mostly sell raw milk to two processors: Parmalat and Clover. Small-scale dairy farming presents an opportunity to develop the industry in the former homeland areas, especially in a range of previously untapped products such as milk powder, speciality cheeses and long-life milk.

Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures natural cheese, processed cheese and speciality cheeses in Cookhouse near Somerset East. Ouma Rusks are still made in Molteno, the small rural town where they were invented. Cabdbury Chocolates operates a big site in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its factory in East London.

Excellent agricultural produce, good manufacturing capacity and a skilled workforce give the Western Cape a competitive advantage.

Famous Brands has bought a famous Western Cape brand in its drive for greater backward integration. Lambert’s Bay Foods supplied Famous Brands restaurants with chips for two decades. With its purchase from Oceana, Famous Brands now has greater control over one of the vital items on the menu of its 26 restaurant brands, including Wimpy, Steers, Fishaways and Mugg & Bean.

The wheat-growing areas of the Swartland host several mills such

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za National Agricultural Marketing Council: www.namc.co.za FoodBev SETA: www.foodbev.co.za Perishable Products Export Control Board: www.ppecb.com South African Association for Food Science and Technology: www.saafost.org.za

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as Sasko’s facility in Malmesbury.

Bokomo has several manufacturing facilities in areas such as Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in Strand and there are two Heinz manufacturing plants at Wellington and Atlantis.

The Western Cape has about 16 000 commercial pork sows and produces a quarter of South Africa’s milk.

Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and has also invested heavily in its prepared meals plant in Cape Town.

SABMiller’s Newlands brewery is one of the busiest in the country as it is responsible for providing product for a very large geographical area.

The fast-food and familyrestaurant franchise sectors are sophisticated and cover a broad range, from the indigenous Spur and Nando’s brands to international giants such as KFC, McDonald’s and recent arrival of Burger King. Nando’s, the Portuguese-chicken chain, has done very well internationally, and is a phenomenon in Britain.

Wimpy is the second largest-franchise operation in SA (after KFC).

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OVERVIEW

Automotive Chinese investors are building at the Coega Industrial Development Zone.

SECTOR INSIGHT Manufacturers are eyeing the African market for growth.

• Exports have doubled in 10 years.

T

he automotive sector contributes 33% to manufacturing GDP and about 6% to overall GDP. It produces approximately 600 000 vehicles per year, supporting 113 000 jobs in three provinces. Exports have doubled in the 10 years to 2018.

Some of the world’s leading original equipment manufacturers (OEMs) have recently made large investments in new plant and technology. According to the National Department of Trade and Industry (dti), the figure invested since 2009 is approximately R45-billion.

Long-term state support of the industry through the Automotive Production and Development Programme (APDP) is a major reason for the continuing health of this vital sector. The industry itself is looking to Africa for new markets. By increasing total production numbers to one-million vehicles, the sector will be more viable.

The dti, working together with the NAAMSA, has set targets for 2035 to increase production to 1% of world volumes (1.4-million vehicles), to increase local content and to double employment and black-owned businesses in the sector. Automotive and automotive components make up 30.2% of total manufacturing output and about 7% of the nation’s Gross Domestic Product (GDP).

Beijing Automotive Industry Group (BAIC) expects to be building 50 000 vehicles per year at its site at Coega Industrial Development Zone (IDZ) by 2022. BAIC’s investment follows that of another Chinese firm, First Automotive Works (FAW).

Companies like BAIC may be positioning themselves to push into Africa, not only for selling vehicles but for automotive parts and SOUTH AFRICAN BUSINESS 2019

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partly-assembled kits. A new panAfrican organisation has been established to promote the auto industry on the continent, the African Association of Automotive Manufacturers (AAAM). Most international brands such as Volkswagen have given responsibility for Africa to their South African offices. VWSA is in a joint venture in Kenya and is exploring opportunities in Rwanda.

VWSA is based in the Eastern Cape where it manufactures half of the country’s passenger vehicles and provides 51% of South Africa’s vehicle exports.

The sector accounts for over 40 000 formal sector jobs in the Eastern Cape.

Volkswagen’s two new types of Polos started rolling off the production line in Uitenhage in 2018. Volkswagen’s R6.1-billion investment will take production up to full capacity of 160 000 vehicles in 2019, from 110 000 in 2017. The increase will mean that a third shift will be introduced.

In addition, V WSA makes 130 000 engines for local demand and for export. Ford in Port Elizabeth is the country’s other engine manufacturer.

OVERVIEW Smart factories are the subject of research being undertaken by the Department of Computing Sciences at the Nelson Mandela Metropolitan University (NMMU). The research is supported by Volkswagen SA and Mercedes-Benz SA. In January 2018, Mercedes-Benz South Africa (MBSA) started producing the Mercedes-AMG C 63 S at its East London factory, after an investment of R200-million. MBSA started exporting record volumes in 2016.

BMW South Africa has invested R6-billion in its Rosslyn plant to prepare for the manufacture of the new BMW X3 model. Nissan is another big automotive manufacturer with a plant at Rosslyn, northwest of Pretoria. Ford announced in 2017 that it would put R3-billion into taking the production of the Ranger vehicle to 167 00 per year.

Gauteng is also home to a strong automotive components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese truck manufacturer FAW, which owns an assembly plant in Isando. Bejing Automotive Works (BAW) assembles taxis at Springs.

DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In Benoni, BAE Systems OMC designs and manufactures protected vehicles.

In 2016, Toyota invested R6.1-billion into its massive plant at Prospecton, Durban. The company regularly sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of exports. The Corolla car, the Hilux bakkie and the Fortuner SUV are manufactured at the plant.

KwaZulu-Natal’s other large OEM, Bell Equipment, is transferring production of its current truck range to its factory in Germany. Bell’s Richards Bay plant will start assembling Kamaz heavy-duty trucks in 2019 for the African market.

Automotive components South Africa has a sophisticated automotive component sector. The catalytic converter sector experienced incredible growth for a number of years but volatility in the platinum mining sector, together with increased interest in electric vehicles and hybrids, means that exporters (largely based in Port Elizabeth) have had to work harder.

Tyre and glass manufacturers are clustered around the areas

ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za

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where the automotive industry is active. Sumitomo Rubber South Africa which includes Dunlop among its brands, is spending R2-billion on expanding production in Ladysmith, KwaZulu-Natal.

Bridgestone Tyres has plants in Port Elizabeth and Brits and Continental makes tyres in Port Elizabeth.

The large number of vehicle models produced in South Africa is a complicating factor for the components sector: low volumes often mean high prices. Two Port Elizabeth companies export significant portions of their production to overcome this: Schaeffler SA exports to its international parent so that it can achieve higher volumes. Shatterprufe supplies the majority of windscreens to the South African market but there are 12 model ranges to serve.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW

Transport and logistics Plans are in place to shift freight from road to rail.

T

he decision by Imperial Holdings to create a separate stock exchange listing for its automotive division marks an interesting departure for one of the biggest logistics companies in South Africa.

Imperial Holdings employs 49 000 people and Imperial Logistics, apart from its large South African footprint, has a presence via multiple companies in other African countries and in Europe, the Americas, the Middle East and the Far East. The Motus division represents 22 OEMs through 358 vehicle dealerships and runs two car rental companies, Europcar and Tempest.

Companies like Imperial Logistics and Barloworld carry just about anything while other listed companies specialise. Cargo Carriers has a fairly broad range of specialised services: fuel, steel, chemicals, gas, powders and services to the mining and sugar industries.

Other companies specialise even further, for example CSS Logistics operates 12 refrigerated warehouses around South Africa. Laser Logistics describes itself as a specialist in distribution for retailers and wholesalers in the clothing, footwear, lifestyle, electronics and appliance markets.

Industry news •

DHL Express has launched a green distribution centre in Johannesburg. Energy consumption will be reduced by 55%.

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SECTOR INSIGHT A new Special Economic Zone will boost logistics in Limpopo.

•

•

The inland manganese terminal at Lohatlha in the Northern Cape has been taken over

by Transnet Port Terminals.

Allowing miners to move ore by rail reduces costs. Transnet also operates inland terminals in Brits (North West) and Newcastle (KwaZulu-Natal).

The building of the MusinaMakhado Special Economic Zone (SEZ) will boost Limpopo’s role as a transport and logistics hub. The Musina Intermodal Terminal, which was officially opened in June 2017, is 15km from the busy Beit Bridge border crossing.

OVERVIEW

•

•

It will boost efforts to move cargo from road to rail. Warehousing facilities on-site make for loading efficiencies in the main cargoes such as chrome, fertiliser, coal, fuel and citrus.

The Nkomazi SEZ near the border with Mozambique in Mpumalanga has similar advantages as it forms part of the Maputo Development Corridor.

The purchase of 75% of German logistics company In Time for €137.2m in 2015 has paid off well for South African logistics company Super Group.

Road and rail South Africa has 21 000km of railway lines and 747 000km of roads, 325 019 heavy-load vehicles and the road freight industry employs 65 000 drivers. The logistics and courier market is worth R10-billion. There are 135 licensed airports in the country, 10 of which have international status.

Investment in improved infrastructure is being made at all of South Africa’s ports. Special Economic Zones are in place at the ports of Saldanha on the West Coast, Coega (Port Elizabeth), East London, and Richards Bay in northern KwaZulu-Natal. The Maputo Development Corridor is Africa’s most advanced Spatial Development Initiative. Run by the Maputo Development Corridor Logistics Initiative (MCLI), the corridor runs from near Pretoria in Gauteng, to Maputo in Mozambique.

The Harrismith Logistics Hub at the Maluti-APhofung SEZ on the N3 is an inland port that can handle cargo containers and shift cargo from road to rail, reducing congestion and costs.

Transnet is the state-owned enterprise focussed on transport and logistics. It comprises Transnet Freight Rail, Transnet Engineering, Transnet National Ports Authority, Transnet Port Terminals and Transnet Pipelines. Transnet Freight Rail’s operations represent about 80% of Africa’s rail infrastructure. With 25 000 employees TFR has specialist divisions for hauling coal and iron ore together with a general freight division which transports everything from grain to chemicals.

The major rail haulage lines are the manganese line from the Northern Cape to Port Elizabeth; from Sishen in the Northern Cape to the Port of Saldanha

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GROWING WITH AFRICA Mueletshedzi Logistics (MLTL) believes Africa is fast becoming the hub of economic growth and there are opportunities to invest. The growth economy needs welldeveloped skills and services to efficiently keep up with the expansion. There must be a reliable supply of equipment, transportation, proper facilities as well as bringing together other logistics solutions to sustain the growth. With the experience and commitment that we have at MLTL, we’re well equipped to take on these challenges. We understand the needs of business and, based on our experience and commitment, we stand out as a preferred choice for reliable and sustainable logistics solutions. Mueletshedzi Logistics is a unique logistics company that offers a range of solutions in one basket. That factor makes us easy to work with as we deliver quality work at once. The company is still a growing business, but the goal is to develop into the biggest logistics company in Africa.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW Coast toll road project. The bridge over the Mtentu River will be the highest bridge in the country at 217m and will cost R1.6billion.

Air transport (iron ore); and from the coal fields of Mpumalanga to Richards Bay. More than 55-million tons is regularly transported along the former and upwards of 70-million tons can travel annually along the latter.

Almost 90% of freight is transported by road and the logistics sector is very reliable. However, these volumes are not good for the condition of the country’s roads and Transnet is working hard to attract more business to the rail network. TFR has put 28 new electric locomotives on the line supporting steel producer ArcelorMittal to improve service.

The rail sector is receiving many investments. The speedy Gautrain which started life as a service to the main airport in Johannesburg has been tremendously popular and there are plans to expand its network. Bids to supply 12 new trains will be adjudicated on in 2018.

A total of 600 new passenger trains will be added to Metrorail’s fleet at a cost of R51-billion. Transnet Freight Rail has ordered 1 064 diesel and electric locomotives from four suppliers.

Sheltam Group is expanding its services beyond rail services. A new lease company (for rolling stock) and an investment company (focussed on rail infrastructure) underpin the group’s African ambitions.

Multi-billion- rand road projects planned by the South African National Roads Agency Limited (Sanral) include a Wild

ONLINE RESOURCES Airports Company South Africa: www.acsa.co.za National Department of Transport: www.transport.gov.za Road Freight Association of South Africa: www.rfa.co.za South African Association of Freight Forwarders: saaff.org.za South African Heavy Haul Association: www.saheavyhaul.co.za

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Airports Company South Africa (ACSA) owns and operates the country’s 10 biggest airports. The company also manages airports in India and Brazil. In 2016/17 the company reported a profit of R2-billion.

Ekurhuleni wants to leverage the location of South Africa’s biggest airport, OR Tambo International, into a major economic asset. OR Tambo International in Gauteng caters for more than 17-million passengers every year. The Cape Town International Airport has been expanded and improved and recorded 10-million passengers in 2016.

King Shaka International Airport (KSIA) is north of Durban.

Several airports are possible future regional freight nodes: Wonderboom Airport in Pretoria, Polokwane Airport in Limpopo and Mafikeng Airport in North West Province.

The South African Ministry of Transport has several agencies and businesses reporting to it: Air Traffic and Navigation Services Company, Airports Company South Africa (ACSA), National Transport Information System, Road Accident Fund, South African Civil Aviation Authority, South African Maritime Safety Authority (SAMSA), the South African National Roads Agency Limited (Sanral) and the Passenger Rail Agency of SA (PRASA).

The Polokwane International Airport (PIA) is wholly owned by the Limpopo provincial government and run by the Gateway Airport Authority Ltd (GAAL), an agency of the Department of Roads and Transport. It has the potential to be an important regional cargo airport.

PROFILE

Safety is a priority at logistics company Mueletshedzi Logistics aims to take logistics to another level.

Environment and Quality (SHEQ) and Compliance Manager. He is currently enrolled on a strategy management programme with Unisa.

Safety, health, environment and quality

M

ueletshedzi Logistics (trading as MLTL) was founded in 2009 by Benedict Mudumela, an experienced metallurgist with an appetite for entrepreneurship.

He saw a gap in the market where everyone was thinking about logistics as just the transport of goods. Mueletshedzi Logistics was founded with goal of changing that thinking. The aim is to deliver logistics solutions in a far more encompassing way: to bring logistics to clients in a way that had never been done before. To bring all solutions under one roof and to take logistics to another level. The company is able to assist clients in developing sensible, cost-effective solutions, be it in logistics, training or delivery of services.

At Mueletshedzi Logistics, the goal is to have a long-term and sustainable relationship with clients based on honesty, trust and integrity.

Business Development Manager Busani Sibanda holds a Diploma in Transport Management from ABMA (UK), a Diploma in Banking from the Institute of Bankers, Zimbabwe, a certificate in Store Administration and a certificate in Sales. He joined the Mueletshedzi Group of Companies in 2015 and has added value to to an already robust team of managers.

SHEQ Manager Simba Gapara has a National Diploma in Analytical Chemistry (Harare Polytechnic), a certificate in Quality Assurance Management from City & Guilds of London Institute, and a certificate in Quality Management System Development and Maintenance. He is national Safety, Health,

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The safety, health and environment policies of Mueletshedzi Logistics encompass: • to comply with environmental legislation and regularly assess the impact of all current and future activities, products and services on the environment • to provide training and tools for a good working environment and deliver a quality service in a consistent and timely manner • to implement mechanisms for the regular and continual review of business practices • to develop and implement mechanisms to identify health and safety issues • to impart training and awareness to employees to ensure employees are made aware of their legal obligations in respect of their own and others’ health and safety • make available adequate resources for the establishment of a quality and environmental management system.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW

ICT Incentives are encouraging investment.

C •

• •

ompanies and educational bodies in the ICT sector can apply for incentives from the National Department of Trade and Industry (dti). These include:

The Technology and Human Resources for Industry Programme (THRIP): companies and educational institutions working to improve technology; 50/50 cost sharing grant to a maximum of R8-million Technology Development Fund: the Technology Innovation Agency makes up to R50-million available for up to 10 years Technology Venture Capital: managed by the Industrial Development Corporation; commercialisation of innovative products, processes and technologies.

Liquid Telecom paid R6.5-billion in 2017 to buy South African network operator Neotel. Liquid Telecom is part of the Econet group. Royal Bafokeng Holdings will take up a 30% shareholding in Neotel as part of the deal. The transaction significantly expands the reach of the fibre network which, it is claimed, will be Africa’s largest broadband network.

Twelve countries are currently connected by 40 000km of fibre network, with more expansion part of the business plan.

The Information Technology Association (ITA) is the trade and employer body of the Information Technology industry in South Africa. The ITA represents more than 200 companies which SOUTH AFRICAN BUSINESS 2019

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SECTOR INSIGHT Fibre is being rolled out in some low-income areas.

• Neotel has changed hands for R6.5-billion. supply information technology equipment, systems, software and services. Members include IBM, Microsoft SA, Siemens, SAP and Axiz.

A new technology venture was launched when Cape Town hosted AfricArena 2017, a conference that aimed to be a “bridge between international technology stalwarts and African technology innovators”. A collaboration between Silicon Cape and La French Tech Cape Town, it brought together investors,

OVERVIEW venture capitalists, start-ups and entrepreneurs. The French government has officially designated the city as one of six global French Tech Hubs. Other hubs include Tokyo and San Francisco.

French Tech Labs was launched as a fintech incubator in 2016. The same company earlier established Methys Labs. The new incubator offers mentoring support for innovators, connections to possible investors and a chance for selected candidates to travel to France.

Major banks are feeling pressure from new companies who can connect with customers without having to build bricks-and-mortar infrastructure. They are responding by spending heavily on ICT. One example is Barclays Africa Group’s expenditure of R3.1-billion on ICT in 2016. The Big Four banks spent R30-billion in the year to June 2016, with Standard Bank laying out R14-billion in that period (Tech Central).

They are also investing in innovation. Barclays Bank have invested in a fintech incubator in Cape Town, Rise. There are six other Rise sites around the world, including New York and Mumbai.

The Cape Innovation and Technology Initiative (CiTi) is another support system for the ICT sector.

There are 2 000 ICT firms in the Western Cape and they have 17 000 employees.

South Africa’s appetite for fast Internet connectivity is growing. The state-owned company Telkom controls most of the country’s fibre cable but several smaller private companies are winning contracts to lay fibre optic cables around the country.

Wider access Allowing access to the Internet to rural people and poorer people in urban areas is a policy priority. As part of its mandate, the Independent Communications Authority of South Africa (ICASA) has organised that private operators have connected more than 623 schools around the country.

Dark Fibre Africa, a Remgro subsidiary, has established a Digital Villages unit to roll out fibre in lowincome areas. Another company in which Remgro has a stake, Vumatel, plans to offer uncapped broadband services in Alexandra (Johannesburg) for less than R100 per month.

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Marketing and delivering solutions As a professional distribution company, Kemtek is gratified to be entrusted with the channel responsibility for many of the world’s leading brands. Presently, Kemtek focuses on the following industry sectors: • Printing – digital and conventional • 3D Printing – manufacturing, medical, dental, jewellery and automotive​ • Auto identification and barcoding systems • Labelling – home, office and industrial systems.

Kemtek’s marketing approach is based on developing a detailed understanding of the markets served and the needs of the end user. The aim is to marry the technologies and solutions provided by the principal brands to these needs, creating value on a sustainable basis. A cornerstone of Kemtek’s success is ongoing technical support and after-sales service, which all employees are passionate about providing.

At Kemtek, there is a commitment to investing in leading systems to enhance the channel and distribution efficiencies, whether this be CRM and sales, procurement planning, inventory management, warehouse management and logistics.

The specialised distribution division operates in excess of 25 delivery vehicles nationwide, performing approximately 15 000 deliveries per year from five dedicated sales and distribution sites nationwide. Delivery services are also extended by the use of most major courier companies for the retail chains and outer-lying regions.

SOUTH AFRICAN BUSINESS 2019

OVERVIEW

If developers have an opportunity to put fibre into a new township’s infrastructure when it is built, a new level of affordability can be achieved. DFA is active in Gauteng Province and by August 2018 had installed connections in 1 000 units.

Private companies like Vodacom allocate specific budget items to rural access and in September 2017 it announced that it would zero-rate its services for university student and staff who are Vodacom subscribers. To illustrate the vastly different uses to which technology can be put, Vodacom is also developing an affordable sheep-tracking collar with farmers in the Eastern Cape.

Statistics South Africa reports that nearly 60% of households in the Gauteng city region have direct access to the Internet. This provides an opportunity to both the private and public sector, but also a challenge to ensure that government improves its online services. More than 1 500 kilometres of network fibre has been connected throughout the province, with 1 066 sites such as schools, health facilities, libraries and community centres giving community members and entrepreneurs the chance to be connected with the digital world. The aim is to have 100% broadband connectivity in Gauteng by 2020. A provincial government initiative known as eKasiLabs Innovation Centres supports entrepreneurs and young people with good business ideas.

Both Johannesburg and Tshwane have free Wifi networks with Tshwane’s covering 780 zones in places such as libraries, educational institutions and clinics.

The Small Enterprise Development Agency runs ICT incubators in several parts of South Africa. The SoftstartBTI ICT incubator is in Midrand and Tuksnovation, a high-tech incubator, is at Pretoria University. In the Nelson Mandela Bay Metropolitan Municipality there is the SEDA Nelson Mandela Bay ICT Incubator (SNII). A new research and development laboratory was established by SNII in 2016, focussing on apps, mechanical and technical prototypes and software solutions.

SNII also hosted a national conference on “Universal Affordable Access to Communications in South Africa”. An example of

ONLINE RESOURCES Cape Innovation and Technology Initiative: www.citi.org.za Independent Communications Authority: www.icasa.org.za Information Technology Association of South Africa: www.ita.org.za State Information Technology Agency: www.sita.co.za Technology Innovation Agency: www.tia.org.za

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what can be done to reduce telecommunication costs in rural areas was presented by the University of the Western Cape, who teamed up with the Mankosi community in a rural part of the Eastern Cape to create the Zenzeleni Network.

This is essentially a community telecoms company where local calls are free, data is considerably cheaper and calls to other networks half the normal cost.

The Universal Service and Access Agency of South Africa (USAASA) is providing connectivity for schools in five provinces and smart devices have been distributed to schools.

There are many opportunities for employment in the sector. It is ironic that in a country with a very high unemployment rate, the Johannesburg Centre for Software Engineering (JCSE) in 2016 put the number of vacancies in software and application development, cloud computing and information security at 40 000 (Sunday Times).

Training is available from organisations such as the Quad Digital Academy, a Standard Bank initiative, an ICT Incubator in Port Elizabeth run by the Small Enterprise Development Agency (Seda) and from the City of Johannesburg (which runs a digital intern programme called COJEDI). Scarce skills training is offered by the City of Cape Town (in partnership with SAP Africa) in software programming. The programme is called “Western Cape Skills for Africa”.

PROFILE

Khabane Majestic Consulting Agile software development and consulting.

K

habane Majestic Consulting is a software development company. We pride ourselves on implementing and perfecting our clients’ IT strategy. We build digital solutions which give our clients a competitive edge.

Our people have delivered solutions on five continents and we bring that experience to bear on providing Agile delivery practices to gain the optimal result. We deliver quality software and solutions which provide business value to clients. We are BEE Level 1 black women-owned.

Sectors

Agile delivery coaching

Our responsive digital business helps organisations achieve their ambitious missions – whether they are in the commercial, social or government sectors.

Four key services

Agile software development and consulting

We deliver high-quality software products by being truly agile – beyond daily standups and other arbitrary Agile rituals. We focus on stimulating the culture of our client. We bring our international consulting expertise and get things done – faster and more efficiently.

User experience design

We give our clients’ software product a personality by using different UX techniques combined with design thinking approaches. This produces usable software and delightful user experiences.

We combine this with a thorough testing approach that allows us to quickly validate design assumptions with real users. We can

CONTACT INFO Physical address: 207 Market Up Office Park, 10 Van Beek Street, New Doornfontein, Johannesburg 2094 Tel: +27 11 404 5004 Email: info@khabane.co.za Website: www.khabane.co.za

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quickly know if the desired outcomes have been achieved. At each step, you can be comfortable that we will: • ensure that we are solving real user problems • ensure that the problem is worth solving • ensure that the solution is usable.

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We train client teams on how to adopt Agile software delivery in their day-to-day processes. We then combine what our clients have learnt in training and implement it via co-delivery.

Here we work together, richly integrated with our clients’ delivery teams to enrich the understanding of Agile.

This process allows for a more practical and richer Agile learning experience for software delivery teams.

DevOps delivery

We turn the experience of sof tware deployment into a pleasant experience. We automate even the most mundane tasks. We turn big and slow organisations into lean and sexy machines.

Clients

Include Liberty, Absa, Discovery, Unicef and Sigidi Solutions.

INTERVIEW

Creating innovative IT products Kgomotso Sediane, MD of Khabane Majestic Consulting, shares her vision for the future.

Kgomotso Sediane

How did the business begin?

Khabane Majestic Consulting was created by a group of young black technologists who believed there was a gap in the South African software development industry. This industry is notorious for being predominantly white-male owned and run. KMC’s vision was to create a female-led IT company which celebrates diversity and innovative thinking. What started as a humble company running from a garage has morphed into a hub for young futuristic thinkers.

Describe the journey so far.

BIOGRAPHY Kgomotso Sediane founded Khabane Majestic Consulting in 2015 and spearheads the company’s operations as the Managing Director with more than 15 years’ experience in IT. Graduating with a BSc Computer Science (Software Engineering), she started her career in 1998 in the software development field as a programmer. She is passionate about making a difference to customers through collaboration between business and IT, while promoting gender equality. Kgomotso cares about upskilling people and contributing to Africa’s future.

It has been an interesting journey so far. Trying to get new clients and building credibility was hard. Competing with companies with decades of experience and existing relationships with potential clients was a good lesson for our young company. This battle to earn our slice of the cake helped us hone our brand, build awesome software, get people talking about us and attract some of the best talent in South Africa. Today, we are expanding our consultancy operations to service clients outside our country.

What sets you apart?

When you walk into our Maboneng offices, you are greeted with stickies, whiteboards, doodles, collaboration and all-round awesomeness.

This sums up the culture within KMC. Our unique service offering allows us to create innovative and disruptive digital products using Agile, Design Thinking and Extreme Programming practices. KMC is a diverse company that encourages collaboration despite seniority.

What gives you the most satisfaction?

Seeing young black technologists go to infinity and beyond.

Is SA ready for the 4th Industrial Revolution?

The ideas are there, but the problem is the lack of accessibility to tech for all South Africans. Good broadband infrastructure will allow kids from rural areas to have the same exposure to technology and information as a child from Sandton.

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PROFILE

Prompt IT Solutions Working together for high-impact ICT solutions.

PromptIT J O U R N E Y I N G

W I T H

Y O U

Prompt IT Solutions is 100% black women-owned IT company which has been in existence since 2004, with Level 1 BEE Status.

•

Vision Being a partner in identifying impactful Information and Communications Technology solutions.

•

Client as partner

•

Our knowledgeable technology team produces work that is up to standard with our clients’ expectations through solid as well as professional strategising, conceptualising and implementation of IT solutions.

Every Information and Communications Technology service provided must involve, engage and build upon the company’s image and, most importantly, strengthen the consumer/product bond.

The challenge for the private and public sector is to find innovative and alternative solutions that adhere to business needs. Solutions need to be understood, relevant and experienced on an intensely personal level by the consumer to strengthen the relationship they have with their service providers. The service provider should know the needs of their consumers to make sure that they work efficiently and productively.

•

Company focus Our strategy is to ensure that we offer our clients the best highquality and cost-competitive service, thereby enabling them to respond quickly to any changing market dynamics and increasing their competitiveness.

Services • •

• •

Staff Prompt IT has a dedicated team of software and hardware engineers.

We derive from a base of freelance specialists should the need arise, because core to sustainability for us is job creation. The approach of combining a wealth of expertise on a project basis enables us to meet each of our clients’ specific needs in the most suitable, creative and cost-effective manner.

Clients include

Infrastructure development data Voice and wireless connectivity

CONTACT DETAILS Address: 56 Cetu Street, KwaMagxaki, Port Elizabeth 6201 Tel: +27 (83) 585 4822 Website: www.promptit.co.za SOUTH AFRICAN BUSINESS 2019

•

Net work ing installations and maintenance (Molex Certification) End Us e r Co m p u t i n g (Accredited with MICSETA) Server support and maintenance Electrical and CCTV installation and maintenance Laptop, computer, printer repairs and service Computer consumables sales Computer hardware and software sales

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The Post Of fice, Aberdare Cables, Shoprite, Enel Green Energy, Airpor ts Company South Africa, Sarah Baartman District Municipality, Eastern Cape Provincial Government Departments (Social Development, Health, Education).

INTERVIEW

PromptIT lives its name with on-time delivery The CEO of PromptIT, Azola Socenywa, recounts how a gap in the market became a thriving business.

How did PromptIT come into being?

I worked for Coca-Cola Sabco before being outsourced as a junior technician to Business Connexion. I proposed projects because there were not many black children exposed to the ICT sector. In 2004 I saw a gap in the market and started PromptIT. Having done well in the SAB Kickstart Programme I started an Internet cafe in the township which was registered with MICSETA to teach Computer Literacy. Since 2015 the incubator Raizorp has mentored me in business.

Azola Socenywa

PromptIT J O U R N E Y I N G

W I T H

Y O U

What have been the highlights in your business journey?

After 14 years of being in business I have been recognised and a few ICT organisations are seeing the need of partnering with PromptIT. The journey has not been easy, but we are still standing and growing our network. We would like to continue to grow our skills.

What are your company’s key services?

BIOGRAPHY Port Elizabeth-born Azola Ngwekazi Socenywa completed courses on the technical side of computers and a national diploma with Damelin. Work for Coca-Cola Sabco led to a posting to Business Connexions, the only female among 16 technicians. Success in the SAB Kickstart Programme was the stimulus to start PromptIT. In 2015 she joined VW’s incubator programme, Raizcorp. Azola is a board member of the Eastern Province Children’s Home and on the Advisory Committee of MES, a poverty relief organisation.

Our core services are network cabling, data, voice, fibre installation and maintenance, cyber security and professional IT support.

Please tell us about the capabilities of your workforce.

Most of our staff are project managers and qualified Cisco engineers.

We assign junior technicians to shadow the seniors to grow their skills as it is important for us that we give them exposure.

What sets you apart in terms of your business processes?

Our philosophy is Trade not Aid. We are a black woman-owned and managed business in a male-dominated industry. Despite this we have managed to thrive and grow. This is the spirit that sets us apart.

We deliver customer centrality, delivery on time, co-creating with our customers. Our staff has joint ICT experience of 25 years, having worked for multinationals such as Microsoft, SAP and IBM. Do you have experience with projects in the public sector?

We have contracts with the Coega IDZ, Transnet PE College and the Department of Health. We believe that ICT should be an enabler towards service delivery.

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PROFILE

Emalangeni Technologies Global standard and innovative technology solutions.

E

malangeni Technologies is a specialised systems integrator, website development, graphic design, networking, hardware and software troubleshooting and solutions provider in the information technology and security fields. Emalangeni Technologies is a 100% black-owned company with extensive experience in a range of ICT services.

Originally founded with a main focus on website development, software development, graphic design, computer hardware and software trouble-shooting and networking solutions.

Emalangeni Technologies has gained valuable in-depth knowledge and expertise in these fields and the best practice of ICT. The company has over the years increased the amount and quality of services rendered, including Internet connectivity and VoIP system connectivity. The team has grown continuously, and the company strives to remain at the forefront of the latest technological innovations.

From the outset the aim with Emalangeni Technologies was to provide clients with the best possible information technology products. To this end, diversification has led to increased service offerings over the years.

Emalangeni Technologies can today cater for the information technology needs of clients in every possible way.

Emalangeni Technologies has distinguished itself not only for the originality and quality of its products, but also for its comprehensive services.

Services • •

Domain and email hosting Website development

• • • • • • • • • • • • • • •

E-commerce web development Corporate branding Full-service graphic design Specialised software engineering CCTV installation Content management systems (CMS) Search engine optimisation Google adwords management Basic and advanced flash animation Monthly maintenance and support Point of sale installation and maintenance Hardware supply and maintenance Rocketseed authorised key reseller VoIP telephone system and connectivity Internet connectivity

Clients We have worked with a range of start-ups, SMEs and large corporate companies. Projects include provision of Internet to Mpumalanga Public Libraries for three years, installation and maintenance of VoIP system for Chief Albert Luthuli Local Municipality and Bushbuckridge Local Municipality, installation of CCTVs, networking and setup equipment for OTJ Holdings, and development of a website for Phumelela Bible College. Also, integrating client websites with Basecamp, YouTube and Facebook APIs and the development of various CRM systems.

CONTACT DETAILS Address: Suite 146 Ground Floor, Caltex Building, 32 Bell Street, Nelspruit 1200 Tel: +27 13 004 0180 and Cell: +27 76 303 3278 Email: info@emalangenitech.co.za Website: www.emalangenitech.co.za SOUTH AFRICAN BUSINESS 2019

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INTERVIEW

Striving for the best way The CEO of Emalangeni Technologies, Sifiso Magonyane, explains how his company’s growth path began.

What is your main service offering?

Our main service is VOIP, hardware supplier, software development and point of sales.

How have you diversified over the years?

We have grown from just focussing on website development to software development, VOIP, Internet connectivity, hardware supply and point of sales. Growing in these different spheres has also led to us growing our list of clients, providing our services to bigger entities in the public and private sectors.

How did you get started in the business?

Sifiso Magonyane

We started as a small web and graphic design company that was just focussed on small private clients. At the time our clients were either individuals or SMMEs which themselves were trying to break into the business sector. We had to give a lot of discounts or even cancel our invoices at times. However, this never interfered with our work ethic. We believe that in technology, you either do it the best you can, or you don’t do it at all.

What gives you the most satisfaction when you tackle a project?

Even before the completion of a project, it is always satisfying to know that we were trusted by the client. The fact that our company can be seen as competent enough to be handed any project is always an honour. This fuels our team to apply their abilities in a project and to find innovative ways to execute a project.

BIOGRAPHY Sifiso Magonyane was born in the Shabalala area of Hazyview, Mpumalanga. He has more than five years’ experience working as a systems analyst. As the founder and CEO of Emalangeni Technologies, Sifiso is a visionary who strives for perfection in his work and the work of his company which was founded in 2009 and officially registered in 2013.

Please tell us about some of your clients.

• • •

The Mpumalanga Department of Sports, Culture and Recreation: we work on providing Internet connectivity to public libraries.

City of Mbombela Municipality: providing maintenance and support of all computer hardware and CISCO devices.

Retail shops: installations and maintenance of point of sale systems.

What principles underlie the way you run your business?

Integrity, respect and transparency is the core of our business. We make sure that these principles are implemented in every project and with every client.

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OVERVIEW

Tourism and events The events and conferences sector is growing across the country.

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outh Africa gained its 10th World Heritage Site in 2018, opening up the possibility of a new type of niche tourism for the country and Mpumalanga in particular.

A three-billion-year-old micro-fossil found in the Makhonjwa Mountains near Barberton and the border with Swaziland is thought to be the oldest sign of life on the planet.

Now the Makhonjwa Mountains, themselves somewhere between 3.2-billion and 3.6-billion years old, have been declared a World Heritage Site by the United Nations Educational‚ Scientific and Cultural Organisation (UNESCO). The tourist offering near Barberton has been branded the Genesis route.

There are 711 745 people employed in the tourism industry, with road transport (29%), food and beverages (20%) and accommodation (19%) absorbing the largest numbers. The sector contributes 9% to South Africa’s gross domestic product (GDP) and the National Department of Tourism has ambitious growth targets. It wants to see tourism contribute R1-trillion to GDP and create an additional 300 000 jobs by 2026.

Tourist numbers are going up, both from traditional markets and from newer markets like China and India. In 2017, South Africa hosted SOUTH AFRICAN BUSINESS 2019

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SECTOR INSIGHT A new World Heritage Site has been declared in Mpumalanga.

• The Cape Town International Convention Centre (pictured) has increased capacity and flexibility.

10.2-million tourists. This represented a small increase of just 2% over the previous year, but that figure was a 10% improvement on the year before.

The rise in tourist numbers follows determined efforts by national and provincial tourism bodies to promote the country.

In Mpumalanga, links to BRICS

OVERVIEW countries have yielded results and in KwaZulu-Natal there has been a strong focus on the meetings, incentives, conference and exhibition sector (MICE).

A Western Cape project to increase the number of seats on routes to and from Cape Town called Cape Town Air Access has been spectacularly successful. Cape Town International Airport’s capacity has increased by more than 600 000 seats in the two years that the programme has been running.

The Port of Cape Town has launched its dedicated cruiseship terminal, and the area between the terminal and the Cape Town International Convention Centre is being developed. The precinct, called the Yacht Club, includes a hotel, residential and commercial complex owned by the Amdec Group, and is linked to the Waterfront via an extension of the existing canal.

In Durban, a joint venture between MSA Cruises SA and Africa Armada Consortium will spend R175-million on the financing‚ construction‚ maintenance and operation of a cruise terminal for a 25-year concession period. The terminal should be operational in October 2019.

A lot of effort has gone into increasing the number of South Africans who take trips within the country. A Tourism Incentive Programme (TIP) has been launched by the National Department of Tourism. Tourism has been earmarked as one of the six key growth sectors in national government’s New Growth Path.

The Industrial Development Corporation has committed to investing R2-billion in local resorts (and in the African hotel market). There are several unused or under-used facilities. One suggestion is that former military bases could be converted into low-fee resorts. Other possible niche sectors include astrology and adventure tourism.

An Enterprise Development Project Management Unit (PMU) has been established. Among the PMU’s tasks will be to manage an Enterprise Development Online Information Portal for SMMEs. South Africa’s tourism offering is incredibly diverse. Superb natural beauty, excellent beaches (45 have Blue Flag status), incomparable wildlife, vibrant cities and cultural and heritage attractions that represent a heterogeneous population and a dramatic history, South Africa has it all. Every province has superb natural assets. In the Northern Cape these include wonderful spring flower displays, spectacular arid areas and brilliantly clear night skies for sky-gazers. There are no fewer than six national parks and five provincial reserves in the province, each showing off distinct geographical and biological features.

Culture and heritage accounts for 40% of world tourism and is one of the fastest-growing sub-sectors. The other nine UNESCO World Heritage Sites in South Africa are: Robben

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Island Museum, Cradle of Humank ind, Mapungubwe Cultural Landscape, iSimangaliso Wetland Park, uKhahlamba Drakensberg (newly named Maloti Drakensberg Transfrontier Park), Richtersveld, Cape Floral Kingdom, Khomani Cu l t u r a l L a n ds c a p e a n d Vredefort Dome.

Popular history or cultural sites include the Nelson Mandela Museum, Hec tor Petersen Memorial, Apartheid Museum, Freedom Park, Voor trekker Monument, Constitution Hill, District Six Museum and the Bo-Kaap Museum. There are opportunities to further develop the full potential of tourism at heritage sites.

Events A total of 34 000 international delegates attended conferences in Cape Town in 2017, helping to secure the city’s number one spot in Africa for the 10th year in a row for the African city hosting the most international association meetings. The ranking is awarded by the International Congress and Convention Association (ICCA).

The Cape Town and the Western Cape Convention Bureau, a Wesgro unit, promotes the Cape as a venue and assists with bids, planning support and on-site services. In the first quarter of 2018, nine bids were won with an estimated economic impact of R336million and attendance of more than 9 000 delegates.

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OVERVIEW The annual AfriCom event, hosted by the CTICC, regularly attracts up to 14 000 visitors who can choose from 400 exhibits and 450 speakers in the fields of telecoms, media and technology.

The R900-million expansion of the Cape Town International Convention Centre (CTICC2,) has given the city’s biggest venue additional volume and flexibility. The new section of the centre hosted its first conference in September 2017, the 21st Annual Congress of the South African Council of Shopping Centres (SACSC) at the same time as the CTICC was hosting another major conference.

Johannesburg and Durban are the other two South African cities with large MICE sectors, but towns linked to research universities (like Potchefstroom and Stellenbosch) and game and nature reserves are also popular destinations for conferences.

Most hotels have conference facilities.

Sun City in the North West has a wide range of venues and has recently won bids to host big events such as the SAFTAS, the South African Film and Television Awards.

A new event on Limpopo’s calendar caused great excitement in 2018 with the first riding of the Tour de Limpopo, a four-day cycling event.

Structure of the industry The South African tourism industry is well segmented. The distribution channel is dominated by four major groups, each of which runs several companies in different parts of the value chain. The biggest groups are: • Imperial Holdings: mostly logistics, companies include Europcar and Tempest Car Hire.

• Bidvest Travel and Aviation: Budget Rent a Car, Bidvest Sky Lounge, Rennies Foreign Exchange, BidTravel, Harvey World Travel, HRG Rennies Travel and BidAir Services.

• Cullinan Holdings: iKapa Tours and Travel, Thompsons, Hylton Ross Tours, Pentravel, Grosvenor Tours and Springbok Atlas.

• Tourvest: The group controls 63 companies dealing with many aspects of the tourist experience: tour operators and conference organisers, foreign exchange, retail (gift shops and duty-free shops) and hotels (African Hotels and Adventures).

ONLINE RESOURCES African Business Travel Association: www.abta.co.za South African Golf Tourism Association: www.sagta.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net South African Tourism Services: www.satsa.com

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Casinos are a popular part of many enter tainment and accommodation complexes around the country, although relatively few licences are in operation. Private game reser ves and golf resor t s has been one of the fastestgrowing markets in recent years. The South African Golf Tourism Association says that up to 10% of visitors to the countr y are attracted by its golf courses.

The Garden Route and the KwaZulu-Natal coastline are rich in golfing venues.

Between George and Cape St Francis there are many highlyrated golf courses including Pinnacle Point, Fancourt (three courses), Simola, Plettenberg Bay Country Club and St Francis Links. Limpopo has two highend golf resorts fairly near Johannesburg: Zebula Golf Estate and Spa and the Legend Golf and Safari Resort which has the world’s most dramatic golf hole, a par-three where golfers are ferried to the top of a mountain by helicopter and take aim at an Africa-shaped green at the bottom of the mountain.

Wine tourism contributes indirectly more than R4.5billion to the South African tourism sector (South African Wine Industry Information and Systems, SAWIS). According to Wine Tourism South Africa, a website and publishing concern that provides information about the wine industry, 43% of visitors to South Africa visit the Cape Winelands.

Everyone went the extra mile and worked together with our team as ‘partners’ to ensure the success of our Annual Congress event.

Amanda Stops

CEO South African Council of Shopping Centres (SACSC)

Nestling in the shadow of the majestic Table Mountain, and overlooking the spectacular Atlantic Ocean, the CTICC is a magical place where the imagined becomes real, visions turn into strategies, consumers become customers, and strangers from across the globe become colleagues, partners and friends.

So much more than a multi-purpose event destination, this African icon combines expansive venues, impeccable service, cutting-edge technology and the finest global cuisine, to transform your convention, conference, exhibition, banquet or meeting into an extraordinary experience.

For more information, or to book your event at the CTICC, call +27 21 410 5000, email sales@cticc.co.za or visit www.cticc.co.za.

INDABA HOTEL, SPA & CONFERENCE CENTRE YOUR AFRICAN DESTINATION IN JOHANNESBURG

Just north of the fast paced business world of Sandton in the upmarket residential suburb of Fourways, lies the 258 bedroom Indaba Hotel, Spa & Conference Centre. It is a compelling blend of business-like convenience and efficiency, with a relaxed and warm country atmosphere.

Coupled with easy and convenient access to all main highways, OR Tambo International Airport and a mere 15km from Lanseria International Airport, the hotel features an impressive selection of some 24 multi-purpose conference venues that can accommodate up to 2 000 delegates in total with banqueting facilities for up to 500 guests.

With two restaurants on property, there is no need to leave the comfort of the hotel to enjoy world class cuisine.

Our 300 seater Chief’s Boma Restaurant caters for all tasted with over 120 African inspired dished ranging from North African Moroccan cuisine to Koeksisters and Melktert from the cape – and with a “Shisa Nyama” grill boasting a variety of game meats sizzled to your specification, everyone is sure to find their favourite.

Well known for the lavish full South African Breakfast Buffet, the Epsom Terrace Restaurant also boasts an evening Bistro Menu which will delight even the most demanding gourmet’s exacting standards. A traditional Carvery Lunch with live music can be enjoyed every Sunday with limited outdoor seating available for those who prefer dining al fresco – after all, Jo’burg really has the best weather in South Africa.

INDABA HOTEL, SPA & CONFERENCE CENTRE C/O WILLIAM NICOL DRIVE & PIETER WENNING ROAD, FOURWAYS Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za | Website: www.indabahotel.co.za

Take a wander through the 17 hectares of lush bushveld gardens and you will find the Mowana Spa - a wellness sanctuary which will revive your senses, rejuvenate your body and soothe your soul. The Mowana Spa, which takes its name from the majestic Baobab Tree of African Lore and Legend, offers wellness journeys based on the recognized healing energy of Tribal Massaging.

Signature Pamper Journeys include the decadent Mowana Full Day African Rejuvenation Spa pamper which is an indulgent spa experience including breakfast, lunch, complimentary beverages and six revitalizing treatments; the romantic Mowana African Skies Night Spa pamper with includes dinner, complimentary beverages and 3 relaxing treatments; and the indulgent Mowana African Escape Spa & Stay Pamper Journey for the ultimate decadent relaxation.

Our commitment to service excellence and staff empowerment through training and mentoring will ensure that your needs are met and your expectations exceeded as you enjoy a Day of Pampering at Mowana Spa. The Indaba Hotel and Mowana Spa are also PROUDLY GREEN ensuring responsible tourism and minimising carbon foot print through extensive recycling of waste products, water-wise gardening, greening conference initiatives, better material choices, minimising power usage and buying local - after all, a better place to live is a better place to visit.

The Indaba Hotel is sure to meet all your business and leisure requirements. We look forward to welcoming you to our oasis in the City.

15 MINUTES FROM SANDTON ... A MILLION MILES AWAY

OVERVIEW

Banking and financial services New sectors and new licences are creating opportunities.

SECTOR INSIGHT African Rainbow Capital has acquired a majority share in Tyme Digital Bank.

A

n entirely new economic sector has opened up in South Africa within the last decade – renewable energy. Financing for this investment segment has come from South Africa’s sophisticated banking sector and from the cash reserves of some European utilities. The Power and Infrastructure division of Standard Bank, one of Africa’s biggest companies, was involved in about 40% of the projects approved within the first four rounds of the bidding process.

South Africa’s banking and financial services sector looks quite different compared to 10 years ago in two other important ways. Firstly, the move to ever-more sophisticated IT applications has accelerated (and moved a long way from the first ATMs launched by Standard Bank in 1981). The related change is the issuing of banking licences to newcomers offering digital banking instead of tellers and deposit slips.

The first new bank to receive a licence since Capitec in 1999 was Tyme Digital in 2017. Tyme stands for Take Your Money Everywhere and refers to its plans which do not include a branch network.

Commonwealth Bank of Australia bought a controlling share of Tyme when it was a loans company and African Rainbow Capital (ARC) was originally the venture’s BEE partner, but in August 2018 ARC bought out the Australians. The bank is targeting the lower-income segment and is rolling out access to its services SOUTH AFRICAN BUSINESS 2019

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through machines in major retailers like Shoprite and Pep and Boxer stores.

A study by EY reports that 35% of digitally active South Africans use fintech and banks are responding quickly to this.

Bank Zero, which has a provisional licence and is led by former FNB bank leaders, calls itself an “app-driven” bank. Discovery Bank has the advantage of having access to vast stores of data through all the other businesses in the Discovery group. The other bank close to gaining a licence is Post Bank, a division of the Post Office.

In 2019, t h e b ank in g sector globally will spend more than R100 -billion on artificial intelligence (Citi GPS).

Money web calculated that the Big Four banks spent R30billion on ICT in 2016, a sign of how seriously the technology challenge is being taken.

Capitec, which is counted in some quarters as part of a new Big Five, recently spent R348million on Creamfinance which will allow for machine learning

OVERVIEW to be applied to online credit applications. Fifteen new Capitec branches will have no cashiers. Since its listing in 2012, Capitec shares have risen by 52 000%, a better performance even than Apple, which achieved “only” 9 000% (Business Times).

PwC’s Major Banks Analysis reported that the four banks in its study had combined headline earnings of R76.1-billion at 31 December 2017, an annualised improvement of 5.2%. The banks covered were Barclays Africa, FirstRand, Nedbank and Standard Bank.

Merchant banking and investment banking are the most competitive sectors in South Africa with companies such as BoE Private Clients, Rand Merchant Bank and Investec prominent.

Afgri, South Africa’s largest agricultural company, which already offers financial services, bought the South African Bank of Athens in 2017. Most South African agricultural companies have financial divisions.

Financial services group Old Mutual (a 54% stakeholder in Nedbank) is in the process of creating four stand-alone businesses out of the Old Mutual Group.

The insurance market has become more varied over time, with a greater variety of products available to more market segments, including middle-income earners. An example of a product responding to new realities is Old Mutual’s iWYZE medical gap cover, designed to pay the difference between what a medical aid scheme is willing to pay and what the hospital or doctor is charging.

The Chartered Institute of Government Finance, Audit and Risk Officers advises institutions, trains it members in public finance and promotes the interests of professionals in the public sector.

It also develops and assesses qualifications and advises tertiary institutions on the requirements for courses.

The African Institute of Financial Markets and Risk Management at the University of Cape Town has a strong focus on research.

Among the alumni of the Vunani Securities Training Academy, sponsored for a decade by Coronation Fund Managers, is First National Bank chief economist Sizwe Nxedlana.

ONLINE RESOURCES Banking Association of SA: www.banking.org.za Financial Services Board: www.fsb.co.za Insurance Institute of South Africa: www.iisa.co.za South African Institute for Chartered Accountants: www.saica.co.za South African Reserve Bank: www.resbank.co.za

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Stock exchanges The JSE is the world’s 19th biggest exchange and nearly 400 companies are listed on the JSE or AltX, the JSE-owned exchange for smaller companies. Other investment options that are available through the JSE are Yield X (interest rate and currency instruments), the South African Futures Exchange (SAFEX) and the Bond Exchange of South Africa (BESA).

In 2017, several new exchanges won regulatory approval, with ZAR X winning the nod from the Financial Services Board (FSB) against objections by the established JSE and another new exchange, 4AX. Shortly after winning its court case, ZAR X started trading in Senwesbel, the holding company of one of South Africa’s biggest agricultural trading companies, Senwes. There is no trading in derivatives or high-frequency trading on this exchange.

A2X will of fer secondary listings platform for JSE-listed companies and aims to cut costs for investors. African Rainbow Capital is an investor in A2X. 4 Africa Exchange (4AX) will focus on companies with market capitalisation of up to R8-billion. Agricultural trading company NWK is a shareholder in this venture.

The newcomers all promise to use the latest technology to make trading simpler, quicker and cheaper.

SOUTH AFRICAN BUSINESS 2019

The hustle to be the best you can be, never stops. It involves deciding what your Next is and going for it. But many budding entrepreneurs remain side-hustlers, because they need a steady income to make that Next a reality.

Winning a R1 million salary for the next year in Standard Bank’s My Fearless Next has made that dream a reality for Nonhlanhla Mthethwa.

Nonhlanhla, an HR practitioner from Pietermaritzburg, believes the win will allow her company, Girlz Ink, and the African dolls they manufacture to become the next big thing.

“My Fearless Next has provided me with a key to open the door to Girlz Ink a bit wider. I am going forward knowing that, even if I hadn’t won, I am wiser and better equipped to survive in a competitive business world.“ Nonhlanhla really took to the business boot camps on the business reality TV show and is using lessons learned about marketing and direct selling to boost her business.

“This opportunity means so much to me. We lost a lot of stock of our Baby Thando dolls in a fire, which put a deal with Toys R Us on hold. Now we’ll be able to seal that deal. I also met so many smart people with great businesses on the show — even a new business partner to design clothes for our dolls.”

Nonhlanhla’s plans to grow self-love through her black dolls will also see the Girlz Ink brand expand to children’s accessories including clothing, schoolbags and luggage.

“I wanted to celebrate our vast ethnic diversity by giving kids a chance to play with dolls that reflect their own identities. We’re not only helping them build positive self-images and pride in who they are, but also fostering a society where children can learn about each other’s cultures, because all kids can play with our dolls.”

OVERVIEW

Development finance and SMME support Prompt payment is vital for small businesses.

SECTOR INSIGHT SAB aims to create 10 000 jobs by 2022.

P

ortia Mngomezulu, the founder and managing director of Portia M, told the host of a radio business show in 2018 that one of the most important factors in allowing her to scale up her skin products business was the willingness of Pick n Pay to pay her within seven days.

The entrepreneur was named in 2018 as Pick n Pay’s Small Supplier of the Year and her sales topped R10-million. From an initial investment of R200, she now employs 27 full-time staff and her range of products is available in four African countries outside South Africa.

One of biggest problems faced by small, medium and microenterprises (SMMEs) is cash flow. Most government departments have rules about procurement which are biased in favour of purchasing from SMMEs or co-operatives. However, for many South African entrepreneurs, the inability or unwillingness of government to pay within 30 days presents a major risk to sustainability. The Enterprise and Supplier Development (ESD) Programme of Pick n Pay addresses and goes a step further with the seven-day rule.

Public procurement from township enterprises from provincial and municipal governments in Gauteng, the province where more than half SOUTH AFRICAN BUSINESS 2019

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of the country’s SMMEs are located, increased in 2017 to R17-billion, up from just R600-million in 2014. This expenditure has allowed many township businesses to enter the formal economy and for them to become more sustainable. The City of Johannesburg runs seven SMME hubs where office space, Wifi and advice and training are available for small business operators.

All South African retailers have ESD programmes which typically create or support small businesses along their supply chain. A small community in rural Mpumalanga is remote and difficult to get to, but 13 farmers at Elukwatini Farm sell tomatoes to Woolworths. According to a Business Day report, Woolworths works through Technoserve (an NPO) and Qutom (a large supplier) for produce to be collected.

De Beers Venetia Mine in northern Limpopo has chosen the transport of its workers as an area for business creation. Two small bus businesses servicing its labour-sending areas have been created with a wide range of ownership and with potential to expand.

OVERVIEW South African Breweries, a subsidiary of AB InBev, wants to use its four entrepreurship programmes to create 10 000 jobs by 2022. In 2018, Coca-Cola Beverages South Africa launched the Mintirho Foundation, a R400-million fund to pay for training of farmers and support business in the agricultural value chain.

Toyota South Africa Motors is funding the newly created Toyota Empowerment Trust (TET) to the tune of R42-million. Beginning in 2018, the trust will at first train specialised automation technicians with the long-term intention of helping qualified technicians to start their own maintenance firms.

The National Department of Small Business Development (DSBD) has several programmes to assist small, medium and micro enterprises (SMMEs) and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant.

The Small Enterprise Development Agency (Seda) is a subsidiary of the DSBD. Seda has 42 incubation centres in South Africa under its Seda Technology Programme (STP).

In a 2018 publication, Seda reported that the number of SMMEs in South Africa increased by only 3%, from 2.18-million to 2.25-million, between 2008 and 2015.

The National Department of Trade and Industry (dti) is trying to stimulate township and rural economies. Various programmes within the dti and its agencies contribute to the creation of SMMEs or to the rescue of ailing SMMEs in tough times.

The Enterprise Investment Programme (EIP) has achieved considerable success. Having received a grant in 2014, Thorax LP Equipment, a 100% black-women-owned company based in Gauteng, has subsequently turned over more than R8-million and employed many young people. A grant to Kalagadi Manganese in the Northern Cape helped to create 8 857 jobs.

The National Gazelles is a national SMME accelerator jointly funded

by Seda and the DSBD. The aim is to identify and support businesses with growth potential across priority sectors. Businesses can receive

ONLINE RESOURCES Gazelles: www.nationalgazelles.org.za National Small Business Chamber: www.nsbc.org.za Small Business Institute: www.smallbusinessinstitute.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za SMME Opportunity Roadshow: www.smmesa.co.za

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up to R1-million for training, productivity advice, business skills development and the purchase of equipment.

The Industrial Development Corporation (IDC) suppor ts SMMEs either by disbursing loans or by taking minority shares in enterprises and giving advice. An agricultural project in the Northern Cape is an example of the kind of work it does. Through the ID C’s Tr ans formation and Entrepreneurial Scheme, a black economic empowerment project is underway at Kakamas. The emerging farmers of Vaal Community Citrus are planting citrus.

The president of Business Leadership South Africa, Jabu Mabuza, expressed concerns about at a small business summit in July 2018 about the number of different agencies working on diverse programmes to promote SMMEs. He also called for big businesses to pay SMMEs promptly.

At about the same time as Mabuza’s speech, some of the early findings of a baseline study of the SMME sector were released. The study is being conducted by the Small Business Institute (SBI) and SBP, a business environment specialist. The study suggests that definitions of enterprise size vary too much, that there is not sufficient coordination in support of the sector and that entrepreneurs face an enormous amount of red tape.

SOUTH AFRICAN BUSINESS 2019

PROFILE

VeriFi VeriFi is the leader in the business of verification and certification for BBBEE recognition.

South Africa requires an economy that can meet the needs of all its economic citizens, its people and their enterprises in a sustainable manner. Government’s objective is to achieve this vision of an adaptive economy characterised by growth, employment and equity. Achieving authentic BEE has required a reassessment of traditional business models and corporate cultures. The Bill, code and strategy document rely upon core policy instruments that have been designed to bring about BEE. These instruments are essentially measurement tools that will permit the public and private sectors to evaluate the BEE status of a particular enterprise. Failure to adapt to the new paradigm will have significant consequences. A real commitment to BEE is now a business imperative.

Target markets

Description of services • • •

assess and certify BBBEE rating; provide insight into BBBEE challenges facing various organisations; provide insight and guidance on the actions required to elevate BBBEE status; and verification of supplier BBBEE status.

With BBBEE recognised as an imperative by companies committed to building an equitable South Africa, verification is an essential requirement that confirms a company’s participation and contribution. Verification is performed in a manner similar to that of a financial audit: it provides an independent SOUTH AFRICAN BUSINESS 2019

assessment of investment, performance and initiatives in a control system. Criteria against which companies are measured are provided by government and like an audit, verification must be performed annually.

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Small, medium and large enterprises achieving an annual turnover of below R10-million and over R50-million respectively (including all charter sectors).

Pricing Pricing for BEE consultancy services is based on the client’s requirements and can be structured on an hourly or monthly basis.

For BEE verification and issue of a BEE Compliance Certificate, please contact the office for the current rates.

PROFILE

The value of verification With BBBEE recognised as an imperative by companies committed to building an equitable South Africa, verification is an essential requirement that confirms a company’s participation and contribution.

Verification is performed in a manner similar to that of a financial audit: it provides an independent assessment of investment, performance and initiatives as a control system. Criteria against which companies are measured are provided by government, and like an audit, verification must be performed annually.

Advantages of BEE certificate from VeriFi • •

•

BBBEE explained Government BBBEE legislation consists of: • The Strategy for Broad-Based Black Economic Empowerment • T he Broad - Base d Black Economic Empowerment Act, No 53 of 2003 • The Codes of Good Practice for Black Economic Empowerment • Various sectoral BEE Charters or Codes In terms of these Codes of Good Practice, businesses are divided into three categories: • Where turnover is less than R10-million a year, or when in the first year of incorporation, a business is categorised as an Exempt Micro Enterprise (EME). However, it is necessary to confirm this status by providing proof of annual income.

• Businesses with a turnover of between R10-million and R50-million a year are categorised as Qualifying Small Enterprises (QSEs).

The criteria for each of these elements are less onerous for QSEs than for companies with turnovers exceeding R50-million per annum.

proposals for new business with government; the licensing of regulated activities which include mining, liquor sales and the granting of credit; leasing of premises from government or private businesses; and the creation or continuance of business relations with clients seeking assurance of a company’s BEE compliance.

Once a verification and certified rating through VeriFi is accomplished, a company can perform business in confidence, as its commitment to equality, nationbuilding and unique South African business processes will be recognised.

Key facts and figures Year established: 2005 No of staff: 15 Major clients: BP, Public Investment Corporation Limited, IBM South Africa, Saab Grintek Defence, Independent Newspapers, Premier Fishing & Brands Limited, African Equity Empowerment Investment Limited, South African Express Airways SOC Ltd.

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CONTACT INFO Tel: +27 86 175 3233 Email: info@verifibee.co.za Website: www.verifibee.co.za

SOUTH AFRICAN BUSINESS 2019

LISTING

South African National Government An overview of South Africa’s national government departments.

The Presidency

Department of Energy

Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za Website: www.economic.gov.za

Tel: +27 12 406 8000 | Fax: +27 12 319 6681 Website: www.energy.gov.za

Department of Agriculture, Forestry and Fisheries

Tel: +27 12 310 3537 | Fax: 086 593 6526 Website: www.environment.gov.za

Tel: +27 12 319 6000 | Fax: +27 12 319 6681 Website: www.daff.gov.za

Department of Finance (National Treasury)

Department of Arts and Culture

Tel: +27 12 315 5111 | Fax: +27 12 315 5126 Website: www.treasury.gov.za

Tel: +27 12 441 3000 | Fax: +27 12 440 4485 Website: www.dac.gov.za

Department of Health

Department of Basic Education

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 Website: www.doh.gov.za

Tel: +27 12 357 3000 | Fax: +27 12 323 5989 Website: www.education.gov.za Department of Communications Tel: +27 12 473 0000 | Fax: +27 12 462 1646 Website: www.doc.gov.za

Department of Environmental Affairs

Department of Higher Education and Training Tel: +27 12 312 5555 | Fax: +27 12 323 5618 Website: www.dhet.gov.za Department of Home Affairs

Department of Cooperative Governance and Traditional Affairs

Tel: +27 12 432 6648 | Fax: +27 12 432 6675 Website: www.dha.gov.za

Tel: +27 12 334 0705 | Fax: +27 12 326 4478 Website: www.cogta.gov.za

Department of Human Settlements

Department of Correctional Services

Tel: +27 12 421 1310 | Fax: +27 12 341 8513 Website: www.dhs.gov.za

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za Department of Economic Development Tel: +27 12 394 3747 | Fax: +27 12 394 0255 Website: www.economic.gov.za

Department of International Relations and Cooperation Tel: +27 12 351 1000 | Fax: +27 12 329 1000 Website: www.dirco.gov.za

Department of Defence

Department of Justice and Constitutional Development

Tel: +27 12 355 6101 | F ax: +27 12 347 0118 Website: www.dod.mil.za

Tel: +27 12 406 4669 | Fax: +27 12 406 4680 Website: www.doj.gov.za

SOUTH AFRICAN BUSINESS 2019

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LISTING

Department of Labour

Department of Social Development

Tel: +27 12 309 4000 | Fax: +27 12 320 2059 Website: www.labour.gov.za

Tel: +27 12 312 7479 | Fax: 086 715 0829 Website: www.dsd.gov.za

Department of Military Veterans

Department of State Security

Tel: 080 232 3244 (SA only) Website: www.dmv.gov.za

Tel: +27 12 367 0700 | Fax: +27 12 367 0749 Website: www.ssa.gov.za

Department of Mineral Resources Tel: +27 12 444 3000 | Fax: +27 12 341 2228 Website: www.dmr.gov.za

Department of Sport and Recreation South Africa

Department of Police (Civilian Secretariat for Police Service)

Tel: +27 12 304 5000 Fax: +27 12 323 7196 / 086 644 9583 Website: www.srsa.gov.za

Tel: +27 12 393 2800 | Fax: +27 12 393 2812 Website: www.saps.gov.za

Department of Tourism

Department of Public Enterprises

Tel: +27 12 444 6000 | Fax: +27 12 444 7000 Website: www.tourism.gov.za

Tel: +27 12 431 1000 | Fax: +27 12 431 1039 Website: www.dpe.gov.za

Department of Trade and Industry Tel: 086 184 3384 | Fax: 086 184 3888 Website: www.thedti.gov.za

Department of Public Service and Administration

Department of Transport

Tel: +27 12 336 1700 | Fax: +27 12 336 1809 Website: www.dpsa.gov.za

Tel: +27 12 309 3000 | Fax: +27 12 328 3370 Website: www.transport.gov.za

Department of Public Works Tel: +27 12 406 2000 | Fax: 086 272 8986 Website: www.publicworks.gov.za

Department of Telecommunications and Postal Services

Department of Rural Development and Land Reform

Tel: +27 12 427 8000 | Fax: +27 12 427 8110 Website: www.dtps.gov.za

Tel: +27 12 312 9300 | Fax: +27 12 323 3306 Website: www.ruraldevelopment.gov.za

Department of Water and Sanitation

Department of Science and Technology

Tel: +27 12 336 8733 | Fax: +27 12 336 8850 Website: www.dwa.gov.za

Tel: +27 12 843 6300 | Fax: +27 12 349 1041/8 Website: www.dst.gov.za

Department of Women

Department of Small Business Development Tel: +27 12 394 5535 | Fax: +27 12 394 0339 Website: www.dsbd.gov.za

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Tel: +27 12 359 0000 | Fax: 086 765 3365 Website: www.women.gov.za

SOUTH AFRICAN BUSINESS 2019

INDEX

INDEX

Adorantha Investment​​​​​s............................................................................................................................................................ IFC, 13 Afrimat........................................................................................................................................................................................................ ​​​​​​​7 Air France ​​​​​................................................................................................................................................................................................51 Air Products......................................................................................................................................................................................... 111 Air Traffic Navigation Services (ATNS)​​...................................................................................................................................11, 53 Bakenberg Ready Mix​​​​​...................................................................................................................................................................... 106 Bakone Holding Investment​​​​.....................................................................................................................................................77-81 Black Management Forum​​​​ (BMF)..................................................................................................................................................96 BlueBiz​​​​​​​......................................................................................................................................................................................................55 Botswana Investment and Trade Centre (BITC)​........................................................................................................................50 Cape Town International Convention Centre (CTICC)​........................................................................................................ 137 EBH SA​​​​​​​​.......................................................................................................................................................................................................62​ Emalangeni Technologies​​​​​​​​.............................................................................................................................................................. 132 E&T Minerals​​​​​​​...........................................................................................................................................................................................71 Export Credit Insurance Corporation of South Africa (ECIC)..............................................................................................46 Genesis Eco-Energy Developments​​​​.......................................................................................................................................29-31 ICT Training.......................................................................................................................................................................................... 127 Indaba Hotel, Spa & Conference Centre​​​................................................................................................................................... 138 Invest Durban ​​​​​​......................................................................................................................................................................................... 2 Kaefer Thermal Contracting Services​​​​...........................................................................................................................................32 Kemtek Imaging Systems​​​​​.................................................................................................................................................................... 5 Khabane Majestic Consulting​​​​​...................................................................................................................................................... 128 KLM ​Royal Dutch Airlines................................................................................................................................................................​​​​​IBC Lesotho National Development Corporation (LNDC)​...........................................................................................................48 Maluti-A-Phofung Special Economic Zone (MAP SEZ).........................................................................................................40 Malutsa​​​​​​​​..............................................................................................................................................................................................84-89 Mamli Projects​​​​​​​.................................................................................................................................................................................... 104 Maitazwifoma Engineering and Consulting​​​.............................................................................................................................93 Maritz Electrical​​​​​​​...........................................................................................................................................................................34, 102 Marley Pipe Systems​​​​​​........................................................................................................................................................................ 112 Modi Mining​​​​​​​...........................................................................................................................................................................................73 Mueletshedzi Logistics (MLTL)​​​​..............................................................................................................................................99, 122​​​​​​ Netha Engineering​Technology.......................................................................................................................................................​​​​​94 Prompt IT​​​​​​​​.............................................................................................................................................................................................. 130 Selfmed.........................................................................................................................................................................................43, OBC Scouts South Africa​​​​​​..............................................................................................................................................................................19 South African International Maritime Institute (SAIMI)​.................................................................................................59-61 Standard Bank​​​​​​​.................................................................................................................................................................................... 142 Thebe Investment Corporation​​​​​.................................................................................................................................................9, 69 Tirisano Holdings​​​​​​​............................................................................................................................................................................... 114 Transnet Pipelines​​​​​​​............................................................................................................................................................................. 150 Upington Special Economic Zone .​​​...............................................................................................................................................38 Verifi​​​​​​​​​........................................................................................................................................................................................................ 146

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