Provinces of South Africa

A snapshot of South Africa’s nine provinces.

Eastern Cape Eastern Cape

Capital: BhishoCapital: Bhisho Main towns: Port Elizabeth, East Main towns: Gqeberha (formerly London, Uitenhage, GraaffPort Elizabeth), East London, Reinet, Mthatha, Grahamstown Kariega (formerly Uitenhage), (Makhanda) Graaff-Reinet, Mthatha, Makhanda Population: 6 916 200 (2015)Population: 6 916 200 (2015) Area: 168 966km² (13.8% Area: 168 966km² (13.8% of South Africa) of South Africa) Premier: Premier: Lubabalo Oscar Mabuyane (ANC) Lubabalo Oscar Mabuyane (ANC) Key sectors: Automotive, Key sectors: Automotive, agriculture, agri-processing, agriculture, agro-processing, forestry, finance, retail, tourism, forestry, finance, retail, tourism, renewable energy. renewable energy. Infrastructure: Coega Industrial Infrastructure: Coega Industrial Development Zone, East London Development Zone, East London Industrial Development Zone, Industrial Development Zone, ports of East London, Port ports of East London, Port Elizabeth and Ngqura, airports at Elizabeth and Ngqura, airports at Port Elizabeth and East London. Gqeberha and East London. Notable tourism assets: Addo Notable tourism assets: Addo Elephant National Park, Mountain Elephant National Park, Mountain Zebra National Park, Wild Coast, Zebra National Park, Wild Coast, Jeffreys Bay, National Arts Festival. Jeffreys Bay, National Arts Festival. Provincial government website: Provincial government website: www.ecprov.gov.za www.ecprov.gov.za Eastern Cape Development Eastern Cape Development Corporation: www.ecdc.co.zaCorporation: www.ecdc.co.za

Free State Free State

Capital: BloemfonteinCapital: Bloemfontein Main towns: Welkom, Sasolburg, Main towns: Welkom, Sasolburg, Parys, Kroonstad Parys, Kroonstad Population: 2 817 900 (2015)Population: 2 817 900 (2015) Area: 129 825km² (10.6% Area: 129 825km² (10.6% of South Africa) of South Africa) Premier: Premier: Sefora Hixsonia Ntombela (ANC) Sefora Hixsonia Ntombela (ANC) Key sectors: Agriculture, Key sectors: Agriculture, agri-processing, chemical agro-processing, chemical manufacturing, mining, transport manufacturing, mining, transport and logistics. and logistics. Infrastructure: Maluti-A-Phofung Infrastructure: Maluti-A-Phofung Special Economic Zone, Bram Special Economic Zone, Bram Fischer International Airport, Fischer International Airport, University of the Free State, University of the Free State, Central University of Technology, Central University of Technology, N8 Corridor. N8 Corridor. Notable tourism assets: Vaal Notable tourism assets: Vaal River, Gariep Dam, Golden Gate River, Gariep Dam, Golden Gate Highlands National Park, Cherry Highlands National Park, Cherry Festival, Mangaung African Festival, Mangaung African Cultural Festival (Macufe). Cultural Festival (Macufe). Provincial government website: Provincial government website: www.freestateonline.fs.gov.za www.freestateonline.fs.gov.za Free State Development Free State Development Corporation: www.fdc.co.zaCorporation: www.fdc.co.za

Gauteng Gauteng

Capital: JohannesburgCapital: Johannesburg Main towns: Tshwane Main towns: Tshwane (including Pretoria), Ekurhuleni, (including Pretoria), Ekurhuleni, Vanderbijlpark, Roodepoort Vanderbijlpark, Roodepoort Population: 13 200 300 (2015) Population: 13 200 300 (2015) Area: 18 178km² (1.5% Area: 18 178km² (1.5% of South Africa) of South Africa) Premier: Premier: David Makhura (ANC) Panyaza Lesufi (ANC) Key sectors: Financial and Key sectors: Financial and banking, banking, manufacturing, trade, manufacturing, trade, creative creative industries, media. industries, media. Infrastructure: OR Tambo Infrastructure: OR Tambo International Airport, Gautrain, International Airport, Vaal Special major universities and research Economic Zone, Gautrain, major institutions, large convention universities and research institucentres, FNB Stadium (Soccer City). tions, large convention centres, FNB Stadium (Soccer City). Notable tourism assets: Cradle of Humankind, Apartheid Museum, Notable tourism assets: Cradle of Constitution Hill, Magaliesberg, Humankind, Apartheid Museum, Soweto tours, Dinokeng. Constitution Hill, Magaliesberg, Soweto tours, Dinokeng. Provincial government website: www.gauteng.gov.za Provincial government website: Gauteng Growth and www.gauteng.gov.za Development Agency: Gauteng Growth and Developwww.ggda.co.za ment Agency: www.ggda.co.za

KwaZulu-Natal KwaZulu-Natal

Capital: PietermaritzburgCapital: Pietermaritzburg Main towns: Durban, Newcastle, Main towns: Durban, Newcastle, Ballito, Port Shepstone, Ballito, Port Shepstone, Empangeni, Ulundi Empangeni, Ulundi Population: 10 919 100 (2015)Population: 10 919 100 (2015) Area: 125 755km² (7.7% Area: 125 755km² (7.7% of of South Africa) South Africa) Premier: Premier: Nomusa Dube-Ncube (ANC) Sihle Zikalala (ANC) Key sectors: Chemicals, dissolving Key sectors: Chemicals, dissolving pulp manufacture, sugar, forestry, pulp manufacture, sugar, forestry, automotive, textiles and footwear, automotive, textiles and footwear, mining, oil and gas, logistics. mining, oil and gas, logistics. Infrastructure: King Shaka Infrastructure: King Shaka International Airport, Dube International Airport, Dube TradePort, TradePort, Richards Bay Industrial Richards Bay Industrial Development Development Zone, ports of Zone, ports of Richards Bay and Richards Bay and Durban, Albert Durban, Albert Luthuli International Luthuli International Convention Convention Centre Complex. Centre Complex. Notable tourism assets: Hluhluwe-Notable tourism assets: HluhluweiMfolozi Park, the Drakensberg iMfolozi Park, the Drakensberg mountains, iSimangilso Wetlands mountains, iSimangaliso Wetland Park, Durban beaches, South Coast, Park, Durban beaches, South Zulu cultural heritage, historical battlefields. Coast, Zulu cultural heritage, historical battlefields. Provincial government website: www.kznonline.gov.za Trade and Investment KwaZuluNatal: www.tikzn.co.za Provincial government website: www.kznonline.gov.za Trade and Investment KwaZuluNatal: www.tikzn.co.za

Limpopo Limpopo

Capital: PolokwaneCapital: Polokwane Main towns: Musina, Main towns: Musina, Ba-Phalabora, Ba-Phalabora, Bela-Bela, Bela-Bela, Steelpoort, Tzaneen, Steelpoort, Tzaneen, Thohoyandou Thohoyandou Population: 5 726 800 (2015)Population: 5 726 800 (2015) Area: 125 755km² (10.2% Area: 125 755km² (10.2% of of South Africa) South Africa) Premier: Premier: Chupu Stanley Mathabatha (ANC) Chupu Stanley Mathabatha (ANC) Key sectors: Mining, agriculture, Key sectors: Mining, agriculture, tourism, logistics. tourism, logistics. Infrastructure: Musina-Makhado Infrastructure: Musina-Makhado Special Economic Zone, Special Economic Zone, N1 Fetakgomo-Tubatse Special highway and rail network, new Economic Zone, N1 highway and Medupi power station. rail network, new Medupi power station. Notable tourism assets: Kruger Notable tourism assets: Kruger National Park, Mapungubwe National Park, Mapungubwe Heritage Site, Makapans Valley, World Heritage Site, Makapans Marula Festival, Waterberg Valley, Marula Festival, Waterberg Biosphere. Biosphere. Provincial government website: www.limpopo.gov.za Limpopo Economic Development Agency: www.lieda.gov.za Provincial government website: www.limpopo.gov.za Limpopo Economic Development Agency: www.lieda.gov.za

Mpumalanga Mpumalanga

Capital: MbombelaCapital: Mbombela Main towns: Emalahleni, Main towns: Emalahleni, Middelburg, Sabie, Lydenburg Middelburg, Sabie, Lydenburg Population: 4 283 900 (2015) Area: 76 495km² (6.3% of South Africa) Population: 4 283 900 (2015) Area: 76 495km² (6.3% of South Africa) Premier: Premier: Refilwe Mtshweni-Tsipane (ANC) Refilwe Mtshweni-Tsipane (ANC) Key sectors: Agriculture, forestry, mining, steel manufacturing, Key sectors: Agriculture, forestry, petrochemicals, pulp and paper, mining, steel manufacturing, power generation, tourism. petrochemicals, pulp and paper, power generation, tourism. Infrastructure: Nkomazi Special Infrastructure: Nkomazi Special Economic Zone, Mbombela Economic Zone, Mbombela International Fresh Produce International Fresh Produce Market, Maputo Development Market, Maputo Development Corridor, Kruger Mpumalanga Corridor, Kruger Mpumalanga International Airport. International Airport. Notable tourism assets: Kruger Notable tourism assets: Kruger National Park, Blyde River Canyon, National Park, Blyde River Barberton Makhonjwa Mountains Canyon, Barberton Makhonjwa (a UNESCO World Heritage Site). Mountains (a UNESCO World Heritage Site). Provincial government website: www.mpumalanga.gov.za Provincial government website: Mpumalanga Economic Growth www.mpumalanga.gov.za Agency: www.mega.gov.za Mpumalanga Economic Growth Agency: www.mega.gov.za

Northern Cape Northern Cape

Capital: Kimberley Capital: KimberleyMain towns: Douglas, Upington, Main towns: Douglas, Upington, De Aar, Port Nolloth, Colesberg De Aar, Port Nolloth, Colesberg Population: 1 185 600 (2015) Population: 1 185 600 (2015)Area: 372 889km² (30.5% of Area: 372 889km² (30.5% South Africa) of South Africa) Premier: Premier: Dr Zamani Saul (ANC) Dr Zamani Saul (ANC) Key sectors: Agriculture, mining, Key sectors: Agriculture, mining, renewable energy, astronomy. renewable energy, astronomy. Infrastructure: Upington Industrial Park, Sol Plaatje University, Infrastructure: Upington Special Vaalharts Irrigation Scheme, Economic Zone, Sol Plaatje Square Kilometre Array telescope University, Vaalharts Irrigation project, Namakwa Special Scheme. Economic Zone. Notable tourism assets: Six national parks including the Notable tourism assets: Six Kgalagadi Transfrontier Park, national parks including the Orange River, spring flower Kgalagadi Transfrontier Park, displays, diamond routes. Orange River, spring flower displays, diamond routes. Provincial government website: Provincial government website: www.northern-cape.gov.za www.northern-cape.gov.za Department of Economic Department of Economic Development and Tourism: Development and Tourism: www.northern-cape.gov.za/dedat www.northern-cape.gov.za/dedat

North West North West

Capital: Mahikeng Capital: MahikengMain towns: Klerksdorp, Main towns: Klerksdorp, Rustenburg, Brits, Potchefstroom Rustenburg, Brits, Potchefstroom Population: 3 707 000 (2015) Population: 3 707 000 (2015)Area: 104 882km² (8.6% of Area: 104 882km² (8.6% South Africa) of South Africa) Premier: Premier: Professor Tebogo Job Bushy Maape (ANC) Mokgoro (ANC) Key sectors: Mining, agriculture, Key sectors: Mining, agriculture, agri-processing, automotive agri-processing, automotive components. components. Infrastructure: Hartbeespoort Infrastructure: Hartbeespoort Dam, Pelindaba nuclear research Dam, Pelindaba nuclear research unit, North-West University, unit, North West University, Bakwena Platinum Highway. Bakwena Platinum Highway. Notable tourism assets: Sun City, Mmbatho Palms Hotel Casino Notable tourism assets: Sun City, Convention Resort, Pilanesberg Mmbatho Palms Hotel Casino National Park, 18 luxury lodges in Convention Resort, Pilanesberg Madikwe Game Reserve. National Park, 18 luxury lodges in Madikwe Game Reserve. Provincial government website: Provincial government website: www.nwpg.gov.za www.nwpg.gov.za North West Development North West Development Corporation: www.nwdc.co.za Corporation: www.nwdc.co.za

Western Cape Western Cape

Capital: Cape Town Capital: Cape TownMain towns: Stellenbosch, Main towns: Stellenbosch, George, Plettenberg Bay, Beaufort George, Plettenberg Bay, Beaufort West, Oudtshoorn, Worcester, West, Oudtshoorn, Worcester, Malmesbury Malmesbury Population: 6 200 100 (2015) Population: 6 200 100 (2015)Area: 129 462km² (10.6% of Area: 129 462km² (10.6% South Africa) of South Africa) Premier: Premier: Alan Winde (DA) Alan Winde (DA) Key sectors: Agriculture, agriKey sectors: Agriculture, agriprocessing, wine and grapes, processing, wine and grapes, financial services, manufacturing, financial services, manufacturing, tourism, oil and gas, boatbuilding. tourism, oil and gas, boatbuilding. Infrastructure: Ports of Cape Town, Infrastructure: Ports of Cape Saldanha and Mossel Bay, Mossgas Town, Saldanha and Mossel Bay, oil-to-gas refinery, Cape Town Mossgas oil-to-gas refinery, Cape International Airport, Cape Town Town International Airport, Cape International Convention Centre, Town International Convention Koeberg nuclear power station. Centre, Koeberg nuclear power Notable tourism assets: Table station. Mountain, Garden Route National Notable tourism assets: Table Park, Karoo National Park, West Mountain, Garden Route National Coast National Park, Kirstenbosch Park, Karoo National Park, West Botanical Gardens, Cape Point, Coast National Park, Kirstenbosch V&A Waterfront, Plettenberg Botanical Gardens, Cape Point, Bay, Route 62, Zeitz Museum of V&A Waterfront, Plettenberg Contemporary Art. Bay, Route 62, Zeitz Museum of Contemporary Art. Provincial government website: www.westerncape.gov.za Provincial government website: Wesgro: www.wesgro.co.za www.westerncape.gov.za Wesgro: www.wesgro.co.za

Sectoral strengths of South African provinces

SECTORAL STRENGTHS OF A wide variety of investments are available. SOUTH AFRICA’S PROVINCES

Gauteng:

• Financial and business services • Information and communications technology • Transport and logistics • Basic iron and steel, steel products • Fabricated metal products • Motor vehicles, parts and accessories • Appliances • Machinery and equipment • Chemical products, pharmaceuticals North West: • Agro-processing • Mining • Agriculture and agro-processing • Tourism • Metal products • Machinery and equipment • Renewable energy (solar)

Limpopo:

• Mining • Fertilisers • Tourism • Agriculture • Agro-processing • Energy, including renewables (solar)

Northern Cape:

• Mining • Agriculture and agro-processing • Fisheries and aquaculture • Renewable energy (solar, wind) • Jewellery manufacturing

Mpumalanga:

• Mining • Tourism • Forestry, paper and paper products, wood and wood products • Agriculture and agroprocessing • Metal products

KwaZulu-Natal:

• Transport and logistics • Tourism • Motor vehicles, parts and accessories • Petrochemicals • Aluminium • Clothing and textiles • Machinery and equipment • Agriculture and agroprocessing • Forestry, pulp and paper, wood and wood products

Western Cape:

• Tourism • Financial and business services • Transport and logistics • ICT • Agriculture and agro-processing • Fisheries and aquaculture • Petrochemicals • Basic iron and steel • Clothing and textiles • Renewable energy (solar, wind)

Free State:

• Agriculture and agro-processing • Mining • Petrochemicals • Machinery and equipment • Tourism

Eastern Cape:

• Motor vehicles, parts and accessories • Forestry, wood and wood products • Clothing and textiles • Pharmaceuticals • Leather and leather products • Tourism • Renewable energy (wind)

Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary Source: Industrial Development Corporation (IDC) (South African Investment Conference, 2018).

Promoting responsible investment into the oil and gas sector

Petroleum Agency South Africa (PASA), the official agency that promotes and regulates the country’s onshore and offshore resources, is busier than ever dealing with international queries.

The decision by TotalEnergies to submit a production plan for their recent discoveries off the coast of Mossel Bay coincided with the beginning of commercial operations of Tetra4’s natural gas project in the north-eastern Free State. These two events prove that investors can see that the South African resources equation adds up to something worthwhile.

These are exciting times for exploration in South Africa. Both of these projects came about through the licensing authority of Petroleum Agency South Africa (PASA), the agency of national government which reports to the Minister of Mineral Resources and Energy (DMRE). PASA regulates and monitors exploration and production activities and is the custodian of the national exploration and production database for petroleum. Its role was statutorily endorsed in June 2004 in terms of the Mineral and Petroleum Resources Development Act of 2002.

In terms of strategy, the agency actively seeks out technically competent and financially sound clients to whom it markets acreage, while ensuring that all prospecting and mining leases are for the long-term economic benefit of South Africa. As custodian, PASA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable, as well having a good track record in terms of environmental responsibility. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record and must carry insurance for environmental rehabilitation.

As part of a drive to create certainty for investors, a new bill has been introduced to replace old legislation. The Upstream Petroleum Resources Development (UPRD) Bill provides for greater certainty in terms of security of tenure by combining the rights for the exploration, development and production phase under one permit.

The draft bill was first published in June 2021 and discussions with industry stakeholders are ongoing. Organisations such as the South African Oil and Gas Alliance (SAOGA) will be coordinating responses to present to parliament. Objectives of the bill include:

Credit: Shutterstock

• expanding black participation • promoting local employment and skills development • creating an enabling environment to accelerate exploration and production of South Africa’s petroleum resources.

Sustainable development: balancing development with environmental protection South Africa has vast gas and oil resources and exploration and the exploitation of these resources has barely scratched the surface. Having to import oil and gas has a serious impact on the country’s balance of payments.

This makes it more difficult to industrialise the country. For the 2021/22 financial year about 50 applications for exploration and production were received but only about 10% of that number were approved.

This is because of very stringent licensing and environmental regulations which must be followed. As PASA CEO Dr Phindile Masangane explains, “We assure South Africans that the slow pace is because we have to make sure that we have a robust system that incorporates all the aspects of licensing but importantly, that the environmental impact assessment is thoroughly undertaken.”

Despite this, planned seismic surveys were halted after opponents of the process went to court in 2021 and 2022. Proponents of continued exploration argue that the seismic process being followed is no different to that which has been followed in the past, and which is employed all over the world.

Dr Masangane told Bloomberg in August 2022: “As the Petroleum Agency, we acknowledge that South Africa’s upstream oil and gas industry has become litigious.” She noted that local consultation standards are going to be evaluated and improved if necessary. This aspect of the process has been the subject of criticism in the court cases.

Investors are still very interested in the South African proposition, as the TotalEnergies offshore and the Free State project prove. Most offshore project exploration interest tends to come from foreign investors because of the high costs but within South Africa, there is a growing number of local participants. A women and black-owned company, Imbokodo, is making a name for itself as a participant as a shareholder in a number of licensing rounds.

Revised draft regulations related to hydraulic fracking in the gas-rich Karoo region were published by the Department of Forestry, Fisheries and the Environment (DFFE) in July 2022 for public comment. Fracking is a drilling technique that is widely used in other jurisdictions such as the United States, but environmental concerns have been raised. Dr Masangane further told Bloomberg that groundwater and geological studies are being conducted in the biodiversity-rich areas of the Karoo and that once regulations have been finalised, seismic activity will be undertaken to establish which blocks to license.

As part of an attempt to engage in a broader discussion on policy issues, a joint colloquium was held in 2022 on the subject of how to balance South Africa’s energy needs with the country’s climate change commitments. The colloquium, and several online events which prepared for and anticipated the main event, was jointly hosted by the DMRE, the DFFE and PASA.

Dr Masangane is convinced that a balance can be achieved between developing renewables and continuing to exploit the country’s (and the continent’s) oil and gas reserves. She points out that the use of certain fuels for cooking leads to deforestation: “If they were to use gas, whether it is LPG or natural gas for cooking that in itself is decarbonisation because then you arrest the negative impact of deforestation. We must not buy into a false narrative and a false choice. It is possible that we can have a dual strategy.” ■