34 minute read
Sector contents
KEY SECTORS
Agriculture Mining Oil, gas and petrochemicals Water
Engineering Construction and property Manufacturing Food and beverages Automotive 66
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Transport and logistics 120
Information and communications technology 124 Tourism and events 134
Banking and financial services 140
Development finance and SMME support 144
Agriculture
Increasing agri-processing volumes is a national priority.
South 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 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
SECTOR INSIGHT
The Mpumalanga International Fresh Produce Market will boost farming in the region.
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 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
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 Agricultural variety
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.
areasofenergy,resources,power, infrastructureaswellaswater. The ServicesDivision seekstobecomea facilitatorofworldclassservicesfor Realising long-term SouthAfricaandtherestofthe continentbyparticipatingin thefollowingsectors value and driving travel&tourism,media, food&logistics, and transformation property.
Thebe Food and Agro-processing.
The 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 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.
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/
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.
Mining
Mine owners are preparing for change.
The 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.
SECTOR INSIGHTS
The Gamsberg zinc and lead project (pictured) is South Africa’s biggest. • Afrimat has expanded into mining.
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.
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, 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.
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.
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 healthy pace. Emmanuel Ngulube
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
Modi Mining
Modi offers differentiated contract mining services in a variety of fields across three provinces.
About Modi Mining
Modi Mining is a 100% black South African owned company founded and owned by mining engineer and entrepreneur Mr Samuel Molefi and a female entrepreneur, Christina Motlapele Molefi. Modi Mining started operations in 2011 and has grown to be operational in three provinces.
In the North West Province, Modi Mining serves corporate mining houses in the platinum sector (RBPlats, Impala Platinum and Lonmin). In Mpumalanga Province, Modi works with South32 in the coal sector. The company also manufactures and supplies products for mines such as Sibanye Gold, Gold 1 and Harmony Gold, all of which are based in Gauteng Province.
Vision
To be the preferred service provider and supplier in the mining industry.
Services
Modi Mining is a multi-faceted company within the mining industry focusing on contract mining services (surface and underground), civil and bulk earth works, crushing and screening, load and haul, mine rehabilitation, manufacture and supply of blasting barricades. A detailed breakdown of services is as follows: Underground mining services • Conventional mining method: stoping; developing; vamping and sweepings • Equipping and reclamation • Mechanised mining method: capital development (TMM); board and pillar • Hybrid mining method
Open cast mining services • Top soil and overburden stripping • Coal seam mining • Rehabilitation, dump/stockpile management
Manufacturer and supplier of: • LDPE blasting barricades and pipes
Civil services • Civil and bulk earth works • Screening and crushing • Load and haul www.modimining.co.za
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
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 Exxaro 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.
The 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 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
SECTOR INSIGHTS
Large gas-to-power plants are planned at two major ports. • The Port of Saldanha has launched a new LPG plant.
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 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.
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
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.
PROFILE Bakone Holding Investment
Professionals in investment and wealth growth.
Bakone 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
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
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 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
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
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
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
