South African Business 2025 by Global Africa Network Media

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CITY THAT’S GEARED FOR GROWTH

A true smart city, Durban is the largest economy on the east coast of Africa, seamlessly combining an innovative business environment with an exciting and contemporary lifestyle. Home to Africa’s premier port and the continent’s very first Aerotropolis.

Our top ranked conferencing city boasts world-class infrastructure and a thriving industrial development zone catering for agro-processing, time sensitive manufacturing products, as well as modern road and rail infrastructure. Connecting continents, Durban’s state-of-the-art international airport serves passengers as well as air freight, ensuring unparalleled access to global supply chains. Constantly evolving and rich in business opportunities, it is time to invest in Durban!

…We can help you make it happen, now.

Third largest metropolis in the country –after Johannesburg and Cape Town Home to about 3,5

WHY DURBAN? 3

Total area size is approximately 2 297 square kilometres

THIS IS WHY WE MATTER...

unique guide to business and

Special

in South Africa.

Potentially divisive national elections in 2024 instead produced a grand coalition that has committed itself to grow the South African economy in a way that creates jobs. Hosting the G20 Summit will allow South Africa to showcase its strengths.

A snapshot of South Africa’s nine provinces.

It’s rolling up the sleeves time for South Africa as work is underway to fix and upgrade existing facilities and invest in new infrastructure in order to stimulate economic growth.

estate near De Rust has won a global prize for olive oil.

is selling.

NYDA Performance Achievement

The NYDA recognizes that South Africa’s youthful population presents an opportunity to boost economic growth, increase employment and reduce poverty. It also recognizes that young people bear the brunt of unemployment and provide young people with broader opportunities which must be sought.

It proposes the strengthening of youth service programmes and the introduction of new, community-based initiatives to offer young people life skills training and entrepreneurship training. The NYDA has achieved 100% of its targets for the year 2023/2024, anticipating achieving another clean audit once audit is completed by September 2024. Recent statistics paint a grim picture, however there are some encouraging signs such as the overall increase of jobs and a movement of discouraged work seekers to active work searchers. Only through a social compact of all sectors of society can our ambitious goals be achieved. The NYDA doors remain open to any individual or institution who is committed to giving young people the hand up they crave.

NYDA Achievements for the year 2023/24

•A total of 2 200 youth owned enterprises were supported with ﬁnancial interventions and targets were met and exceeded due to the interest that young people have shown in the Programme and the NYDA's willingness to assist and support these young people

•A total of 43 163 young people were supported with non-ﬁnancial business development interventions and targets were met and exceeded due to collaborations with local municipalities and provinces that we have MOU’s in place

•Jobs that were created and sustained through supporting entrepreneurs and enterprises were 7 319 and target met and exceeded due to the Grant programme that was oversubscribed by young people and the interest shown by them.

•A total of 1 203 beneﬁciaries supported with business Development Support Services offered to young people by NYDA and the overachievement was due to a partnership and Service Level Agreement established with FASSET to implement the project with 3 Universities: University of Pretoria, University of Free State and University of KwaZulu-Natal.

•A total of 55 549 young people were capacitated with skills to enter the job market, through Life Skills and Job Preparedness and targets were met and exceeded due to a number of young people who shown interest in life skills and job preparedness offered by NYDA.

•A total of 24 307 young people placed in jobs met and exceeded due to partnership established because of intensive focus on partnerships which increased the number of jobs for young people to be placed.

National Youth Service NPO Capacity Building Programme

In the 2023/24 financial year, the NYS enrolled 68 youth-led NPOs, partnering with entities like the National Lotteries Commission (NLC) and the South African Association of Youth Clubs (SAAYC) to deliver training workshops and mentorship programs. These initiatives, which included themes such as leadership, life skills, and social entrepreneurship, were designed to improve the governance, compliance, fundraising, and networking abilities of the NPOs. The program also featured specific training opportunities, like the ICTage program funded by CISCO, which provided IT training and certification to participants.

The impact would take into account a variety of elements, including the organization’s original status, the e ectiveness of interventions, and the outcomes obtained. Through the survey conducted with GIZ, 15,6% of the respondents (NPOs) stated SARS education as most valuable intervention. Half (50%) of the respondents stated that they have a much more clear understanding of NYS after participating in the incubation program.

Revitalized Youth Service

Ten projects were contracted under the NYS program, all in various stages of implementation. By the end of March 2024, a total of 22,306 participants had obtained paid service opportunities. Among them, 18,115 participants had ﬁnished community service, while 4,357 young people had successfully transitioned into other income-generating opportunities. The NYDA conducted a successful recruitment roadshow for the second cohort of the NYS program, targeting underserved communities across several provinces. This initiative enhanced the program's visibility and engagement.

The Young Creatives Program (TYCP) is a collaboration with the Department of Sport, Arts and Culture led to the enrolment of 270 young creatives in the NYS program, providing them with opportunities in Community Arts Centres. This program is set to extend through to March 2025, with R13 608 000 (Thirteen Million Six Hundred and Eight Thousand Rand) allocated by the department to support it.

The report outlines the number of young people that participated in the Expanded National Youth Service over the year. Quarterly data shows fluctuations, with a notable increase in participation in the second quarter. For the period under review, we reported 16, 339 young people contributing to the unit meeting and over-achieving this specific target for 2023/24. The NYS unit primarily focused on voter education and activities initiated by partners. Non-Profit Organizations (NPOs) enrolled in the incubation program played a crucial role in implementing NYS Expanded Volunteer Projects (EVP), contributing significantly to the target of youth participation in the expanded volunteer program.

Impact of the Program

• At an individual level, participants received comprehensive training packages that included technical skills, professional development, emotional intelligence, and patriotism. These trainings aimed to prepare them for future employment and self-su ciency.

• At the community level, the NYS participants contributed to their local economies and communities by engaging in various activities such as waste removal, child safety, and food security programs. The presence of NYS participants helped raise awareness and support community initiatives.

BRICS Youth:

The NYDA held a successful inaugural meeting of the BRICS Youth Council in December 2023 which approved a strategy document for the term of o ce of the Council. South Africa o cially handed over the Chair of BRICS and the Council to Russia.

The Executive Chairpersons O ce has established a BRICS South Africa Youth Chapter whose views will continue to feed into the BRICS Youth Council.

NYDA Amendment Bill

•The NYDA Board and Management fully participated in the Committee meetings for the NYDA Amendment Bill during the third quarters which has ultimately resulted in recommendations of the Bill to the National Assembly and the National Council of Provinces. The Bill has been recommended by the NCOP and the Bill has been sent to the President for signing into law. The NCOP Select Committee has met with the Department of Women, Youth and Persons with Disabilities and has no fundamental challenges with the bill.

• The Board expresses its appreciation to management and all employees for their efforts, oversight and support in achieving satisfactory performance through another clean audit outcome. We look forward to a better year ahead as we place youth at the front and centre of the economic recovery.

Manufacturing:

Construction and property

Warehouses are doing well.

Telecommunications

A fibre merger has been blocked.

Water

Skills training is vital for infrastructure.

Transport and logistics

E-commerce is reshaping the delivery landscape.

ICT

Amazon.co.za has arrived in South Africa.

Tourism

Events tourism is making a comeback.

Corporations encourage small-business suppliers.

Yet more banks are being established.

Main image: Mining at Sishen in the Northern Cape, Kumba Iron Ore. Clockwise from top right: Machinery at new Bell Heavy Industries plant at Richards Bay, Bell Equipment; competing giants in the Kruger National Park, SA Tourism; fresh citrus, Ryan Baker on Pexels; Roggeveld Wind Farm, Gareth Hunt/Fairwind; hydrogenpowered vehicle, BMW.

South African Business

A unique guide to business and investment in South Africa.

Credits

Publishing director:

Chris Whales

Editor: John Young

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Tyra Martin

Production:

Ashley van Schalkwyk

Project manager: Chris Hoffman

Account managers:

Shepherd Mugero

Sadiyah February

Dwaine Rigby

Gabriel Venter

Vanessa Wallace

Sam Oliver

Tennyson Naidoo

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Sharon Angus-Leppan

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

Welcome to the 13th 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.

A special feature in this journal focusses on the vital focus on infrastructure that is seizing the attention of the political and business leadership of South Africa. This is not the arena of endless talk shops. Rather, 160 CEOs of some of the country’s most influential companies are rolling up their sleeves and trying to make things work better. The article looks at steps being taken by a combination of the public and private sectors to beef up the country’s railways, ports and energy network. Crime is also under the spotlight. As this journal goes to print, South Africa will ascend to the presidency of the G20, a singular honour and an opportunity for the country to put its best foot forward. A brief overview of each of the country’s provinces is also provided.

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.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. The Journal of Africa Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly. ■

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

South African Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

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Email: info@gan.co.za | Website: www.gan.co.za

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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 | Afrimat; Amazon South Africa; Bayobab; Bell Equipment; CTICC; De Rustica Olive Estate; Ford Motor Company; Gap Infrastructure Corporation; GCIS; Kumba Iron Ore; MellowVans; PASA;

Rhenus; SACCI; SAPPA; SR Energy; Sumitomo Corporation; TNPA; Thungela Coal; Trans Caledon Tunnel Authority (TCTA); Traxtion.

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, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

AN ECONOMIC OVERVIEW OF SOUTH AFRICA

By John Young

President Cyril Ramaphosa remained president of South Africa after the elections of 29 May 2024, but only with the support of a coalition of 10 political parties which has been called a Government of National Unity (GNU).

Representing 70% of the voters who turned out for the election, the new government covers a wide spectrum of political standpoints and crucially contains parties that are committed to the country’s constitution and to the rule of law. In the National Assembly elections for the position of president, Ramaphosa received 86.5% of the votes of Members of Parliament.

The African National Congress (ANC), which was seen as the party of liberation and had been the governing party since the first democratic election of 1994, saw its vote share drop in 2024 to just over 40%, having garnered more than 57% in 2019. While the ANC historically has a socialist orientation, the largest other party in the coalition, the Democratic Alliance

(DA), is inclined to argue for minimal government intervention in the economy. As the DA’s website states, “Government must always stand ready to help those who need it, but its primary function is to empower the people to make use of their freedoms, so that they may progress in their own lives.”

Marrying these two views on economics will present some difficulties if the government is to complete its five-year term but early signs are that the focus will be on fixing, maintaining and building infrastructure, the subject of a Special Feature elsewhere in this journal.

The spirit of cooperation which created the GNU has also been evident in the business community, where an initiative of many of the country’s chief executive officers is supporting state entities in tackling infrastructure problems. There have been good signs of progress regarding electricity availability, port logjams being cleared and security improvements on important rail links.

PHOTO: SR Energy

Giant renewable projects are redefining South Africa’s energy landscape. The 100MW Redstone Solar Thermal Power Project features molten-salt-energy-storage technology in a tower configuration.

Transnet Port Terminals (TPT) hired 200 additional cargo coordinators and port workers to support citrus exports in the 2024 reefer season. Citrus exports account for more than 50% of agricultural exports and contribute R43billion to South Africa’s GDP. Volumes increased by 10% year-on-year for the first six weeks of the 2024/25 financial year, a year in which TPT will spend R3.9-billion on new equipment.

It is often said that the best engine for job creation is the small, medium and micro-enterprise (SMME) sector. However, the Chartered Institute for Business Accountants (CIBA) states that something like 70% of new businesses do not survive beyond two years. In another example of diverse organisations working together for an economic goal, CIBA aims to change that metric by teaming up with the South African Chamber of Commerce and Industry (SACCI), the Companies and Intellectual Property Commission (CIPC) and the University of South Africa’s affiliate company, Inhlanyelo Hub.

The joint initiative is called SME Launch and will nurture startups, giving them advice in key areas such as compliance, market access and cashflow management. As SACCI President Mtho Xulu says, “SME Launch is our way of adopting South Africa’s new businesses, helping them grow into sustainable, thriving contributors to the economy. This partnership ensures new businesses have the guidance they need to succeed, creating long-term value for both SMEs and the nation.”

The first offering of SME Launch was a free webinar, introducing the concept and explaining what is available on the platform.

Global stage

In 2023, South Africa hosted the BRICS Summit. As of 1 December 2024, South Africa will have the presidency of the G20, becoming the third BRICS nation in a row to hold that position after India and Brazil.

The G20 Summit to be held in 2025 will naturally give South Africa a chance to present itself to the world in the best possible light. The event will be held in Johannesburg in the province of Gauteng, the country’s most important economic hub. The city’s infrastructure will need a lot of sprucing up

South Africa on the global stage. When South Africa hosted the BRICS Summit in 2023 SACCI President Mtho Xulu, second right, chaired the Trade and Investment Working Group of the BRICS Business Council.

before 19 heads of state and the leaders of the AU and EU visit it. This presents another opportunity for government and business to cooperate for the greater good.

South Africa has burnished its reputation for hosting global events through the FIFA World Cup, the World Conference against Racism, COP17 and various other conferences that have been well run. South Africa has adopted as the theme for its G20 Presidency “Solidarity, Equality and Sustainable Development”.

As President Ramaphosa told a G20 meeting under Brazil’s presidency that with just a short time before the deadline date of the UN 2030 Agenda for Sustainable Development, it would make sense to have a tight focus on the programme of Sustainable Development Goals (SDGs) in all of the years leading up to 2030. According to Ramaphosa, just 12% of SDGs are on target and progress on 50% is “weak and insufficient”.

Energy transformation

South Africa’s energy landscape is changing very quickly. Quite apart from the giant solar farms of the Northern Cape, pictured, and the massive wind turbines going up in the Western Cape and the Eastern Cape, the process of unbundling the

national utility, Eskom, has begun. The new National Transmission Company of South Africa is a working entity and wheeling (the idea that an independent power producer can sell energy to a third party while using the national grid) is booming.

An interesting new development on the landscape, literally, of the Mpumalanga Province, is the addition of what will become South Africa’s biggest wind farm. Seriti Green is developing the Ummbila Emonyeni project to supply Seriti’s mines in the area, but the fact that Mpumalanga has several coal-fired power plants that are going to be decommissioned means that there will be spare grid access for renewable producers. The coal plant closures have been pushed back in some cases, but they will close and when they do, the connections they have to the grid will be gold dust.

The conversation about the global climate crisis has seized the limelight across the world in a way that few other topics have since World War II. The debate in South Africa has its own unique contours, particularly as about 80% of the country’s electricity generation comes from coal. The fact that many people would lose their jobs if coal mines close down is an important factor in calculations, and a key reason why South Africa is at the forefront about the need for a “Just Energy Transition”.

An excellent programme exists to procure the energy that South Africa needs to expand the economy, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). In Round Five of the REIPPPP, the cheapest solar

generation cost was 37.5c/kWh while the best wind cost was 34.4c/kWh. These represent remarkably low costs.

Following the announcement by the City of Cape Town that residents could get cash for power in late 2022, Versofy Solar received 1 500 enquiries in the month of January and has experienced a surge of orders for rooftop installations since then.

The R130-billion pledged at COP26 by the EU, the US, Germany, France and the UK to assist South Africa’s transition from oil and coal to greener technologies is not straightforward; it comes as a mixture of grants, risk-sharing instruments and concessional finance but it will allow South Africa to fund projects that will help the country to move away from fossil fuels without further stretching Eskom’s precarious finances.

Eskom made a breakthrough in December 2022 when South Korean company Hyonsung Heavy Industries broke ground, signalling the first project in Eskom’s Battery Energy Storage System (BESS) project. The 8MW facility will move to producing an additional 144MW in the second stage of the project. In 2023, a larger project at Worcester, Hex BESS, was launched. Another company that will be involved in Phase 1 of the national rollout of these projects is Chinese company Pinggao.

In Cape Town a Swedish firm has spent $30-million setting up an assembly factory for lithium batteries and Bushveld Energy, a subsidiary of Bushveld Minerals, is producing vanadium battery electrolyte at its factory in East London. ■

TPT

Transnet Port Terminals is improving performance and investing in new equipment. PHOTO:

10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

Growing middle class, affluent consumer base, excellent returns on investment.

SA is the location of choice of multinationals in Africa. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech.

South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination.

SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors.

The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets.

SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation.

SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.

A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.

SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development.

SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.

Provinces of South Africa

A snapshot of South Africa’s nine provinces.

Eastern Cape

Capital: Bhisho

Main towns: Gqeberha (formerly Port Elizabeth), East London, Kariega (formerly Uitenhage), Graaff-Reinet, Mthatha, Makhanda

Main towns: Port Elizabeth, East London, Uitenhage, GraaffReinet, Mthatha, Grahamstown (Makhanda)

Population: 6 916 200 (2015) Area: 168 966km² (13.8% of South Africa)

Premier: Lubabalo Oscar Mabuyane (ANC)

Key sectors: Automotive, agriculture, agro-processing, forestry, finance, retail, tourism, renewable energy.

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 Gqeberha and East London.

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)

Premier: Maqueen Joyce Letsoha-Mathae (ANC)

Key sectors: Agriculture, agri-processing, chemical manufacturing, mining, transport and logistics.

Key sectors: Agriculture, agro-processing, chemical manufacturing, mining, transport and logistics.

Infrastructure: Maluti-A-Phofung Special Economic Zone, Bram Fischer International Airport, University of the 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: Panyaza Lesufi (ANC)

Premier: David Makhura (ANC)

Key sectors: Financial and banking, manufacturing, trade, creative industries, media.

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

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: Thami Ntuli (IFP)

Premier: Sihle Zikalala (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: HluhluweiMfolozi Park, the Drakensberg mountains, iSimangilso Wetlands Park, Durban beaches, South Coast, Zulu cultural heritage, historical battlefields.

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

Provincial government website: www.kznonline.gov.za

Trade and Investment KwaZuluNatal: 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)

Main towns: Musina, Ba-Phalabora, Bela-Bela, Steelpoort, Tzaneen, Thohoyandou Population: 5 726 800 (2015) Area: 125 755km² (10.2% of South Africa)

Premier: Dr Phophi Ramathuba (ANC)

Premier: Chupu Stanley Mathabatha (ANC)

Key sectors: Mining, agriculture, tourism, logistics.

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

Infrastructure: Musina-Makhado Special Economic Zone, Fetakgomo-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.

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

Capital: Mbombela

Main towns: Emalahleni, Middelburg, Sabie, Lydenburg

Population: 4 283 900 (2015) Area: 76 495km² (6.3% of South Africa)

Premier: Mandla Ndlovu (ANC)

Premier: Refilwe Mtshweni-Tsipane (ANC)

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

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, Barberton Makhonjwa Mountains (a UNESCO World Heritage Site).

Provincial government website: www.mpumalanga.gov.za Mpumalanga Economic Growth Agency: www.mega.gov.za

Provincial government website: www.mpumalanga.gov.za

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

SPECIAL FEATURE

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)

Premier: Dr Zamani Saul (ANC)

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

North West

Capital: Mahikeng

Main towns: Klerksdorp, Rustenburg, Brits, Potchefstroom

Population: 3 707 000 (2015) Area: 104 882km² (8.6% of South Africa)

Premier: Lazarus Mokgosi (ANC)

Premier: Professor Tebogo Job Mokgoro (ANC)

Key sectors: Mining, agriculture, agri-processing, automotive components.

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: Alan Winde (DA)

Infrastructure: Upington Industrial Park, Sol Plaatje University, Vaalharts Irrigation Scheme, Square Kilometre Array telescope project, Namakwa Special Economic Zone.

Key sectors: Mining, agriculture, agri-processing, automotive components.

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.

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

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.

Key sectors: Agriculture, agriprocessing, 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.

Key sectors: Agriculture, agriprocessing, 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.

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

Provincial government website: www.nwpg.gov.za

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

North West Development Corporation: www.nwdc.co.za

Notable tourism assets: Table Mountain, Garden Route National Park, Karoo National Park, West Coast National Park, Kirstenbosch Botanical Gardens, Cape Point, V&A Waterfront, Plettenberg Bay, Route 62, Zeitz Museum of Contemporary Art.

Provincial government website: www.westerncape.gov.za Wesgro: www.wesgro.co.za

Sectoral strengths of South African provinces

A wide variety of investments are available.

SECTORAL STRENGTHS OF 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

• Agro-processing

North West:

• Mining

• Agriculture and agro-processing

• Tourism

• Metal products

• Machinery and equipment

• Renewable energy (solar)

Northern Cape:

• Mining

• Agriculture and agro-processing

• Fisheries and aquaculture

• Renewable energy (solar, wind)

• Jewellery manufacturing Free State:

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)

Source: Industrial Development Corporation (IDC)

Limpopo:

• Mining

• Fertilisers

• Tourism

• Agriculture

• Agro-processing

• Energy, including renewables (solar)

Mpumalanga:

• Mining

• Tourism

• Forestry, paper and paper products, wood and wood products

• Agriculture and agroprocessing

• Metal products

• Agriculture and agro-processing

• Mining

• Petrochemicals

• Machinery and equipment

• Tourism

Eastern Cape:

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

• 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 (South African Investment Conference, 2018).

The transformative power of business and investment

Investors are encouraged to investigate the wealth of opportunities in Mpumalanga, writes Isaac Mahlangu, CEO of the Mpumalanga Economic Growth Agency.

Isaac Mahlangu, CEO, MEGA

It is with great pleasure that I address you as the CEO of the Mpumalanga Economic Growth Agency (MEGA).

As the driving force behind the economic development of our remarkable province, it is my privilege to provide you with this message in the esteemed pages of the South African Business journal.

Over the years, Mpumalanga has emerged as a prime destination for business and investment opportunities. With its abundant natural resources, strategic location and vibrant communities, our province offers an environment conducive to growth and prosperity. We are committed to fostering an ecosystem that nurtures innovation, entrepreneurship and sustainable development.

As we navigate through the challenges brought by the global economic landscape, Mpumalanga remains steadfast in its dedication to fostering economic growth. We

understand that collaboration is key and we actively seek partnerships with both local and international investors who share our vision of a thriving economy that uplifts all our citizens.

Comprehensive support

Our agency works tirelessly to provide comprehensive support to businesses and investors. We offer a range of services from market intelligence and investment facilitation to regulatory guidance and access to funding. Whether you are a seasoned investor or a budding entrepreneur, we are here to assist you at every step of your journey, ensuring that you have the necessary tools to succeed in our dynamic market.

Furthermore, we recognise the importance of sustainable development in today’s world. Mpumalanga Province prides itself on its commitment to environmental stewardship, social responsibility, inclusive growth and a just energy transition to a carbon-free future. We strive to strike a balance between economic progress and the preservation of our natural heritage, creating a future that is prosperous, equitable and environmentally sustainable.

I encourage you, as potential investors, to explore the wealth of opportunities that Mpumalanga has to offer. Whether you are interested in our booming mining sector, renewable energy projects, agribusiness or tourism ventures, our province has the potential to fulfil your aspirations. Together, let us shape the future of Mpumalanga’s business landscape and contribute to the growth and prosperity of our province. I invite you to engage with us, to collaborate, and to seize the possibilities that lie before us.

Thank you for your continued support, and I look forward to witnessing the transformative power of business and investment in Mpumalanga. ■

THE PLACE OF THE RISING SUN

MPUMALANGA TRADE & INVESTMENT PROMOTION

• FACILITATING INTERNATIONAL TRADE

• PROMOTING FOREIGN INVESTMENT

• EMPOWERING BUSINESS SUCCESS

MEGA is the Official Economic Development Agency for Mpumalanga Province – South Africa

MBOMBELA HEAD OFFICE: T +27 13 492 5818 www.mega.gov.za | trade-invest@mega.gov.za

Building a globally competitive mineral-beneficiation cluster

OR Tambo International Airport SEZ Precinct 1 is fully open for business and the SEZ is ready to expand operations.

In construction since the latter part of 2018, the OR Tambo International Airport SEZ Precinct 1 officially opened all its doors during the month of March 2024.

This milestone, which marked the end of OR Tambo SEZ Precinct 1’s development, was celebrated at an event attended by key government leaders, investors, tenants and stakeholder partners. This commemoration followed similar occasions held in April 2019, when the second-largest food factory of its kind became operational and again in February 2023, when a building that houses Pluczenik, a Belgian investor, was unveiled in the presence of key dignitaries including King Philippe of Belgium.

In addition to the building openings marked

on other occasions, two other buildings have been operational at the Zone since 2020; these include a precious-metals refinery as well as an administrative building where national regulatory agencies are located. These agencies, the South African Diamonds and Precious Metals Regulator (SADPMR) and the State Diamond Trader (SDT), are mandated with providing regulatory guidance and oversight of the minerals industry in South Africa as well as promoting equitable access to and beneficiation of the country’s diamond resources respectively. Their presence at the Zone contributes to efficient operations by the manufacturers, who must, on a regular basis, engage with the agencies on issues of licensing, raw material access and exporting.

Pluczenik and key government principals at the official opening of the Pluczenik building.

To herald the end of Precinct 1’s development, the six remaining buildings were completed, bringing to a successful realisation the objective set by the Gauteng Provincial Government to establish a globally competitive mineral beneficiation cluster next to Africa’s largest and busiest airport.

Reindustrialising South Africa

This vision, which gives impetus to South Africa’s mineral beneficiation strategy, was conceptualised in support of the objective to contribute to the country’s re-industrialisation by facilitating enhanced value addition of minerals mined in South Africa, instead of continuing to be exported in their raw form, resulting in the export of jobs to countries that add the value. To counter this and in recognition of South Africa’s mineral endowments, development of a globally competitive mineralbeneficiation industrial park supported by a sectornuanced manufacturing ecosystem comprised of different role-players within proximity to each other (thereby enhancing operational efficiencies) was birthed.

In acknowledgement of the competitive location of the OR Tambo International Airport SEZ – next to the continent’s most active airport – manufacturing activities in the first phase of the SEZ also include fresh-food production. This is because the food system has the ability to employ a large number of people, supporting the country’s objective to create muchneeded job opportunities. It is no mistake therefore, that the anchor on the northern side of ORTIA Precinct 1 is a premium fresh-food producer with the capacity to package more than 1 400 food products.

Unpacking ORTIA Precinct 1: Fresh food, jewellery and diamond manufacturing

Food-processing

operations

ORTIA Precinct 1 comprises 63 000m² of developed space. This includes a 22 735m² food-processing facility that became operational in 2019.

Described as the largest and most diverse ultra-fresh food facility of its kind in the southern hemisphere, In2food Bonaero as it is known, accommodates food preparation, storage, office areas as well as a canteen, showers and a medical clinic.

Jewellery exhibited at the JMP opening in March 2024.

The Bonaero industrial operations boast an impressive refrigeration and PV system that reduces demand on the grid. In addition, all water sources are monitored through a comprehensive buildingmanagement system. Because of all of this, In2food Bonaero is one of the few industrial facilities in South Africa that has achieved four-star green accreditation and net-zero carbon level 1 certification, setting the benchmark for other industrial developments.

Since its opening, this facility has created over 2 500 operational jobs and has also supported and promoted emerging farmers that provide inputs to the facility for value addition.

Mineral-Beneficiation Cluster

The remaining part of the Precinct is where the Jewellery and Diamond Manufacturing Cluster is located.

Comprising more than 40 000m² of developed space, the JMP is home to 19 companies that share similar characteristics and operating requirements. These include a precious-metal refinery, diamond cutting and polishing companies, jewellery manufacturers, diamond-trading entities, an Enterprise Development Hub as well as regulatory agencies that support the industry. In addition, sector-specific service providers that support the provision of high-level security requirements,

inclusive of the movement of goods to airside, also form part of the development.

Enhanced connection and collaboration

The location of like-minded businesses at the Precinct is an intentional move by the OR Tambo SEZ aimed at ensuring that the mineralbeneficiation cluster functions competitively and efficiently. This is because worldwide, the cluster approach to economic development has been shown to not just foster industrial development, but also promote connection and collaboration, leading to increased creativity and productivity.

It is anticipated that through this approach, minerals mined and beneficiated in South Africa for global consumption will increase.

The next frontier: ORTIA Precinct 2 and the Springs Precinct

With the completion of ORTIA Precinct 1, the focus of the SEZ’s development is on ORTIA Precinct 2, a 29ha land parcel projected to have 265 000m² of developable space and the Springs Precinct, a 13ha land parcel projected to have 45 000m² of developable space.

Over and above their individual competitive locations, each precinct is positioned to promote the production and export of products best suited

An entrepreneur working in the Enterprise Development Hub’s Rent-a-Bench workshop.

to their locations. In respect of ORTIA Precinct 2, because it is located a stone’s throw away from ORTIA Precinct 1 and OR Tambo International Air Cargo, the focus will be on mineral-beneficiated products, pharmaceutical and health products, electronics and other just-in-time products such as fresh food.

Specific to the health cluster, plans are already underway to ensure the design and delivery of a globally competitive medical manufacturing cluster that includes sub-assembly, labelling and packaging services, logistics, warehousing and cold storage facilities, regulatory and testing facilities as well as research, development and innovation.

The OR Tambo SEZ is excited about this next frontier and the opportunities it offers the African continent in the production, export and consumption of pharmaceutical and health products manufactured in Africa.

Platinum potential

In addition to the sectors to be located at ORTIA Precinct 2, the OR Tambo SEZ is also pursuing the production and export of platinum-related products at its Springs Precinct. This is because of the competitive location of this land parcel next to a major platinum refinery, allowing for easy access to platinum required to manufacture products such as platinum-based fuel cells and electrolysers. Electrolysers are a central input into Africa’s multibillion-dollar hydrogen economy.

Available opportunities

OR Tambo SEZ is open to interest from investors looking to set up manufacturing operations in the sectors identified for location at ORTIA Precinct 2 or Springs Precinct. ■

For more information:

Email: info@gidz.co.za

Website: www.ortambosez.co.za

A pharmaceutical cluster is to be developed within the OR Tambo SEZ.

PHOTO: Chokniti Kongchum/Pexels

Namakwa Special Economic Zone, a Northern Cape first

The Namakwa SEZ is set to be a catalyst for industrial growth and green transformation.

Namakwa SEZ has been designated! The Northern Cape has its first Special Economic Zone (SEZ).

Then Department of Trade, Industry and Competition Minister Ebrahim Patel designated Namakwa Special Economic Zone on 21 May 2024, marking a milestone achievement for the 6th National Administration and the Northern Cape Provincial Government.

On 23 May 2024, the Premier of the Northern Cape, Dr Zamani Saul, announced the designation of the Namakwa SEZ, heralding a new era of industrial and economic prosperity for the province. Spanning 1 270 hectares, the Namakwa SEZ represents a beacon of opportunity and a testament to the vision and hard work of the 6th Administration. This groundbreaking project aligns with national industrial policy, underscoring the province’s commitment to economic growth, innovation and sustainable development.

The SEZ has secured a significant investment

of R29.3-billion, led by anchor investors Vedanta Zinc International and Frontier Rare Earths, demonstrating confidence in the province’s potential. This substantial investment will catalyse economic growth, create jobs and stimulate innovation across various sectors.

The Namakwa SEZ is the cornerstone of the Northern Cape Industrial Corridor, harnessing the province’s abundant natural resources and transforming them into economic catalysts. It will enable the province to pioneer sustainable industrial pathways, contributing to the global green economy and aligning with the Northern Cape Green Hydrogen Strategy. This SEZ will create a robust, diversified economic ecosystem, fostering Small, Medium and Micro Enterprises (SMMEs) and stimulating innovation. It will provide enhanced opportunities for the people of the Northern Cape, from direct employment to new business ventures within the ecosystem and value chains.

The Premier emphasised that this SEZ is

more than an economic project; it’s a pledge to transform the socio-economic landscape of the province, making the Northern Cape a hub of economic activity and a beacon of growth. The Namakwa SEZ represents the province’s commitment to harnessing the power of collaboration, innovation and sustainable development to shape a prosperous future.

Since the designation of Namakwa SEZ, significant momentum has been gained in advancing the project development pathways. This designation is aligned with the guidelines and strategy of the SEZ Act, which outlines the steps following designation, focusing on actual implementation.

The Northern Cape views this milestone as a crucial step towards its industrial ambitions, particularly in unlocking the Industrial Corridor. This effort is strongly supported as we enter into the 7th Administration’s commitment to streamline mega projects towards implementation. The next critical steps involve capacitating the Namakwa SEZ entity to facilitate project preparation activities. This includes prioritising the detailed engineering designs for bulk and link infrastructure. Furthermore, appointing personnel to oversee development in partnership with the Project Management Unit (PMU) at the

Northern Cape Economic Development Agency (NCEDA) is vital for the project’s success.

The Namakwa SEZ is also poised to catalyse the Boegoebaai Green Hydrogen (GH2) development programme by attracting Original Equipment Manufacturers (OEMs) to the SEZ, thereby enabling green transformation and pathways to net-zero emissions by 2050. ■

Join the journey

Connect with the team and secure prime space within the zone and be part of this tremendous journey the province is embarking on to challenge and make inroads to the industrialisation of the Northern Cape.

Join us on this journey as we embark on transforming the Northern Cape into a dynamic hub of economic activity, driven by the vision of a sustainable, inclusive and innovative industrial future. The work starts here, and together, we will shape the future.

Contact the NCEDA to be part of this endeavour in enabling the natural endowments within the province to work for all.

Be part of the Modern, Growing and Successful province.

Time for action on infrastructure

It’s rolling up the sleeves time for South Africa as work is underway to fix and upgrade existing facilities and invest in new infrastructure in order to stimulate economic growth.

Such is the importance attached to infrastructure in South Africa that a separate structure called Infrastructure South Africa (ISA) has been created.

ISA was established in 2020 and reports to the Presidential Infrastructure Coordinating Commission, which is chaired by the President of South Africa, Cyril Ramaphosa. When one aspect of the country’s infrastructure was threatening the country’s security, it was a measure of the respect that the President has for the man who was then in charge of ISA, Kgosientso Ramokgopa, that he was then capped in a new post, that of Minister of Electricity and Energy.

ISA acts as an infrastructure centre of excellence and provides a single point of entry for infrastructure planning, management and delivery. Part of its brief is to be a catalyst for closing the infrastructure investment gap.

The biggest event in ISA’s calendar is the Sustainable Infrastructure Development Symposium of South Africa (SIDSSA). A highlight of the 2024 symposium, the third holding of the event, was the first publication and release by ISA of a construction book which lists all the infrastructure projects to be initiated by government and state-owned companies (SOC) during the 2024/25 fiscal year. The book allows for informed decision-making for relevant companies.

A total of 153 projects representing a total capital expenditure of R158.5-billion across the transport, electricity, water and port-logistics sectors were covered. In the context of the summit, President Ramaphosa said, “Meaningful infrastructure [investment] would have the potential to strengthen the economy, bringing

PHOTO: GCIS

President Ramaphosa is invested in improving infrastructure.

the country a step closer to achieving the NDP’s commitment for the economy to attain 5.5% yearon-year economic growth, a 6% unemployment rate and 30% gross fixed capital formation to GDP.”

Other highlights of SIDSSA were the unveiling of the Infrastructure Fund Pipeline and updates on the progress of the Strategic Integrated Projects as gazetted in 2020 and 2022.

Private commitment

One of the most interesting and consequential aspects of the South African infrastructure landscape is the commitment made by a large group of CEOs of the country’s biggest companies to contribute to fixing problems.

The failure of the rail network to deliver mining product to ports, the failure of ports to deliver citrus and grapes in sufficient quantities and continuous power failures that had become a feature of every South African’s life had reached a point where something out of the ordinary had to be done.

In 2023 the CEO Pledge was signed by about 140 CEOs, a number which by 2024 had risen to 160. Representing roughly R11-trillion in market capitalisation and with more than 1.36-million employees, these CEOs were not interested in virtue signalling. Rather, working groups were established to work together with the state in three critical areas: energy, transport and logistics and crime and corruption. Reports to President Ramaphosa would be made on a regular basis.

A year into the project, a good deal had been achieved, as Steuart Pennington of www. sagoodnews.co.za discovered when he spoke to Mxolisi Mgojo, a former CEO of mining company Exxaro. Among the wins are increased electricity generation, reduced loadshedding to the point where citizens were no longer counting the days since the last time the lights went off, improved volumes through ports and fewer incidents of crime on the northern railway network. Power facilities were receiving help from 17 different private companies at power stations and 350 private-sector experts were engaged across the three areas of engagement. With problems in the water sector becoming more acute as 2024 drew to a close, there was some discussion about whether the CEO Pledge would expand its operations to include water.

ISA Top 12 priority projects:

• Healthcare Infrastructure Programme (national)

• Education Infrastructure Programme (national)

• Ngqura Port Liquified Natural Gas (LNG), Eastern Cape, pictured

• Project Ukuvuselela (high-capacity rail for automotive sector), Gauteng- Eastern Cape

• Amatola Bulk Water Augmentation, Eastern Cape

• Nkomazi Special Economic Zone, Mpumalanga

• Namakwa Special Economic Zone, Northern Cape

• Liquified Natural Gas (LNG) Import Terminal (Richards Bay), KwaZulu-Natal

• Durban Container Terminal (DCT) Pier 1, KwaZulu-Natal

• Eskom Tubatse Pumped Storage Scheme, Limpopo

• Rooiwal Wastewater Treatment Works Phase 2, Gauteng

• Reinstatement of Mossel Bay GTL Refinery, Western Cape

Financing infrastructure

The Just Energy Transition Partnership (JETP) came into being at the COP26 Climate Summit in 2021 where South Africa and France, Germany, the UK, the US and the EU agreed that funds would be made available to assist South Africa to transition from being fossil-fuel dependent in a just manner.

South Africa has put forward an Energy Transition Investment Plan (JET IP) for the five-year period to 2027, setting out details of what needs to be done and at what rate it should be done to reduce greenhouse gas emissions. About R150-billion has been pledged, much of which will be devoted to building transmission capacity so that any energy generated by renewable sources is able to be dispatched.

In addition to the government-to-government funding, infrastructure financing is attracting increasing interest from fund managers and corporates.

PHOTO: Dominic Bonnesse Architects

Clean water requires good infrastructure.

Harith General Partners is paying R6.5-billion for the shareholding of the Pan African Infrastructure Development Fund in Aldwych Holdings. Noticeable in transactions of this sort is the variety in play: 37.5% of Lanseria Airport; 37.92% in AHL which has a subsidiary that supplies energy to 23-million customers in various African countries; and 15.3% in CIVH, which controls a number of fibre companies and an IoT network.

Standard Bank has already provided more than R2-billion to more than 1 500 SMMEs to switch to renewable energy and is preparing to bulk up its offering in water and waste-management financing. A generous tax incentive (section 12BA), whereby the solar PV asset can be depreciated at 125% of the capex value in the first year, has contributed to a big take-up in converting power supplies.

In addition, the bank has been part of deals adding up to more than R60-billion in connection with private producers participating in the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Five bidding rounds have attracted about R250-billion in committed investments into energy generation in South Africa through the programme. All of South Africa’s major banks have dedicated renewableenergy units.

The Presidential Climate Commission reports that the pipeline of REIPPPP projects stood at R377-billion in June 2024. Applications for the development of 4.5GW were received in 2023, sharply up from

the two previous years, 135MW (2021) and 1.6GW (2022). The establishment of a one-stop shop to deal with registering projects is part of the reason for the expansion of potential new capacity.

According to the National Energy Regulator of South African (NERSA), R11.4-billion was spent on solar PV in the third quarter of 2023. Seven commercial generation facilities were registered out of a total of 98 facilities which created new capacity worth 908MW.

The South African Wind Energy Association (SAWEA) calculates that the 34 wind farms currently operating across South Africa have collectively brought in R89.6-billion in investment.

Sanlam Investments has launched a Sustainable Infrastructure Fund which primarily invests in senior or subordinated debt across a wide range of South African infrastructure assets, with the ability to invest up to 10% in equity.

The huge infrastructure drive promised by the state is relevant but in the context of climate change, the investment community is increasingly putting emphasis on sustainability. Sanlam Group will invest R6-billion in the fund and aims to attract a further R5-billion from institutional investors. Investments will be made in housing, transport, health, water, waste, communication, conventional energy and renewable energy, a fast-growing sector with enormous potential. Sanlam, established in 1918 as a life insurer and with its headquarters in Bellville, is Africa’s largest insurance company.■

PHOTO: TCTA

SAIEE – advancing electrical engineering

The South African Institute of Electrical Engineers aims to leverage the vast array of resources and opportunities the institute offers through corporate partnerships, training programmes and expanded membership.

The South African Institute of Electrical Engineers (SAIEE), established in 1909, is thrilled to unveil a series of innovative initiatives designed to fortify corporate partnerships, elevate training opportunities and enrich the benefits available to its growing membership base.

SAIEE provides extensive Continuing Professional Development (CPD) courses and interactive workshops explicitly tailored for electrical engineering practitioners through its dedicated training academy. These programmes encompass a broad spectrum of subjects, ranging from advanced

technical competencies to vital leadership and management training, ensuring that practitioners are well-equipped to navigate the industry’s everevolving landscape.

Corporate partners

In a significant effort to address the pressing challenges confronting South Africa, SAIEE is proactively seeking collaboration with corporations eager to contribute their insights and expertise. As a SAIEE Corporate Partner, your engagement is welcome and essential in crafting impactful solutions that resonate within the sector. By joining forces with fellow industry pioneers, your contributions can genuinely influence the trajectory of the electrical engineering field in South Africa, fostering innovation and progress.

Moreover, SAIEE extends a heartfelt invitation to new members who aspire to enhance their professional skills, broaden their networks and remain at the forefront of industry advancements. With streamlined processes, SAIEE is making it increasingly accessible for electrical engineering practitioners from all corners of South Africa to join and leverage the vast array of resources and opportunities the institute offers.

In summary, SAIEE’s unwavering commitment to delivering top-tier training programmes, cultivating robust corporate partnerships and expanding its membership reflects its dedication to advancing electrical engineering in South Africa.

The future holds tremendous potential for those ready to seize the moment and explore these exciting new opportunities.

For more information, please visit: www.saiee.org.za

CSIR e-Government

Pioneering the future of digital public administration, by Matthew

Chetty.

The Council for Scientific and Industrial Research (CSIR) has established a reputation as an innovator with progressive strategies through its e-Government initiatives and capabilities, setting it apart as a leader in driving digital transformations within the public administration sector.

e-Government refers to the utilisation of technology by governments to improve their operations and stakeholder interactions, aiming to positively impact society. Since its emergence in the 1990s, e-Government has evolved to encompass various dimensions such as technology, interaction, customer needs, customer satisfaction levels and societal advancement. This approach earmarks state-owned communication technologies to empower citizens through improved service delivery standards while boosting accountability and transparency.

The CSIR’s commitment to innovation aims to make a lasting impact on people’s lives. The council’s vision for the future of governance prioritises efficiency, transparency and resilience. This goal is achieved by incorporating advanced information and communication technology (ICT) solutions into government operations through its e-Government impact area. This approach not only improves efficiency but also transforms how services are provided, setting higher standards for effectiveness and responsiveness.

Impact area

The CSIR e-Government impact area cements the institution’s commitment to contributing to the development of a capable state and improved government service delivery. The centre functions as a crucial resource for consolidating past and future system landscape data, generating essential metrics necessary for devising effective strategies, investments and governance policies, while offering valuable guidance to all relevant

stakeholders. The centre plays an indispensable role in advancing developments in the field of e-Government. Additionally, the e-Government impact area has a solid track record in developing and implementing large-scale information systems across the country in diverse fields such as digital health, oceans and coasts monitoring, rural access and indigenous knowledge protection.

The CSIR places great importance on human capital development as a vital pillar supporting its e-Government strategy. The organisation acknowledges that technology alone cannot bring about change and emphasises the need for comprehensive training platforms to equip professionals with necessary digital skills. By adopting such an approach, the CSIR ensures that every level of government has access to skilled personnel capable of confidently navigating the evolving technological landscape. This emphasis on cultivating talent leads to innovation and excellence within governmental institutions while promoting widespread adoption of e-Governance practices.

Digital benchmarks

As Africa’s largest multidisciplinary science and innovation hub, the CSIR is dedicated to establishing benchmarks for digital advancements through proactive measures in creating and endorsing best practices in e-Government. It is highly regarded as an advocate for standardisation and interoperability in various e-Government initiatives. The organisation ensures that operational results are not only robust but also dependable enough to support long-term success, with ongoing efforts to set conventions further accentuating the CSIR’s unwavering commitment to driving innovation and excellence in e-Government.

The CSIR’s e-Government impact area embodies the organisation’s dedication to tackling societal issues with inventive solutions. Through its proficiency in critical thinking, investigation and engineering capabilities, the impact area propels intricate integrative initiatives across various sectors. This interdisciplinary approach establishes the CSIR as a pioneer in creating comprehensive solutions

for government-wide integration, product lifecycle management and ensuring information security within the e-Government domain.

e-Government leadership in Africa has the potential to bring about transformative change. By utilising advanced ICT tools and methodologies, the CSIR continues to lead the way towards a new era of digital governance on the continent, promising greater efficiency and transparency for public sector operations. As an authority in e-Government, the CSIR not only tackles present issues but also sets a precedent for excellence and innovation that will shape future public administration across Africa.

With its progressive approach to digital governance, emphasising efficacy, transparency and outcomes, the CSIR continues to inspire industry leaders while leading the way onto groundbreaking paths ahead. ■

About the author

Matthew Chetty is the Impact Area Manager for e-Government at the CSIR. He leads groundbreaking initiatives to revolutionise public sector efficiency and transparency through advanced digital solutions. With a strong background in ICT, Chetty brings a wealth of expertise and a forward-thinking approach to his role, positioning the CSIR as a global leader in e-Government.

Contact details: mchetty@csir.co.za

A shared drive for constructive and positive change

As the Chartered Institute of Government Finance & Risk Officers (CIGFARO) celebrates its 95th year of existence, the President, Dr Emmanuel Ngcobo, puts the focus on training young people into a culture of professionalism and service to the nation.

Dr Emmanuel Ngcobo, President: CIGFARO

BIOGRAPHY

Dr Emmanuel Ngcobo is the current President of the Institute, an organisation he has served with excellence over the past 19 years. Dr Ngcobo proudly works for the iLembe District Municipality in the Finance Department, having started his work career and involvement with CIGFARO at eThekwini Municipality. Over the years he has served in various roles in the Institute as the KZN Provincial Chairperson, Board Member and Vice-President before being elected to the role of President. He has successfully authored four strategic books: The Road to the CFO Position, The Practice Guide to Foster Excellence in Municipal Asset Management, Building a Sustainable local government Revenue Module and the Essentials of Municipal Asset Management, all of which will contribute to being valuable resources to the public sector.

How did you choose this career?

I started my career at an early age without being exposed to any other work environment apart from the local government sphere. As I progressed through getting involved in a number of initiatives that included private and other spheres of government, I realised I was “called” into local government, meaning I knew that this was the domain I belonged in and would have the most impact in. Apart from enjoying the fulfilment of knowing that someone directly or indirectly receives basic services through my actions, I further realised that through my skill and experiences I had something to offer with regard to addressing the daily challenges that are faced in local government which you won’t find anywhere else.

There are a number of role-players with different objectives but ultimately the common goal is to render community services and to render it well. I was exposed to different people and ways of operating, which helped build and shape me as I found the focus on what I believe I was born to do: serving people and the nation as a whole. I believe that public service is an honourable service because it is a necessary service. This is what gave rise to a sincere love and passion for local government. Where you remove the drive to act diligently on your calling, that can lead to frustration. I have passed such a stage and it’s surely one of the best spaces to be in.

What are your priorities for your term of office?

The resuscitation of our nine provincial branches and giving priority to the youth. I have a huge passion for our future leaders and as an institution if we are to remain effective we must be able to impact future leaders and craft a new calibre of professional public servant.

Is the world of finance and auditing welcoming to young people?

It is an ever-changing and challenging yet growing field. The number of young people taking spaces on our courses is encouraging. Every now and then we are introduced to new interns taking up spaces and cementing themselves. The future belongs to the youth, after all.

Is it difficult to persuade young people to take up careers in public finance and auditing?

There is a saturation of finance professionals in the private sector which inadvertently creates the challenge of employability in the

private sector. This however has opened the space within the public sector and all its opportunities hence, making it more attractive to young graduates. So it is now not so difficult to persuade young professionals to take up careers in public finance and auditing.

The finance field is perceived to be professional due to it being mainly office-based with a formal dress code. But what we stand for goes beyond this limited perspective of professionalism. CIGFARO stands for inculcating a culture of professional conduct from its members and the public-finance sector as a whole, setting a higher standard than that associated with government. We also are committed to ensuring adherence to the applicable laws and regulations. This professional conduct further means that practise leads to ethical behaviour because set rules and organisational processes are respected.

Why are so few municipalities achieving clean audits?

There are many complex factors in a municipal environment that largely contribute to this, for example the political environment that is constantly changing which affects administration as well as factors like minimal focus or priority placed on proper oversight.

Rebuilding South Africa requires each and every person to do their part professionally, being innovative in their space and striving to do all things excellently. Excellence will ensure that all can live in a prosperous country for current and future generations to come. No-one is insignificant in their role and all have the ability to make a contribution towards building a better, stronger and more beautiful nation. So let us not be myopic in our service of the people – we all can do our part.

Is it possible to change that scenario? If so, how?

The possibility of change is always present, it is just a matter of how much we are willing to change. So to answer this let me start by saying this, Yes it is possible!

As government financial resources are continually depleted or have to be spread across more items due to a number of factors, this opens an opportunity for

all of us to be innovative within the environment where we are. This is the time where we throw away the “SALT” approach, same as last time. We cannot be doing the same thing and expect a different outcome, therefore innovation is vital if we want to improve the standard of governance and service delivery. What can I do differently to accomplish more results for my municipality or department with the same, if not fewer, resources than I have?

We have been given a very powerful tool of thinking, where you allow yourself to distance yourself from everything else and think of how you can improve where you are. How can I do better? You will be surprised at the potential outcomes and the way in which we can implement transformational systems and strategies.

How important are the various indabas, seminars and conferences that you hold?

The public sector sphere, especially local government institutions are perceived to be a space of inability and incompetence. CIGFARO intends to break this status quo with through the various initiatives we host, thus being an important part of professionalising and transforming the public sector.

Do you have international links?

This year we will be engaging directly with international partners such as the Government Finance Officers Association (GFOA) of the USA and Canada and the Chartered Institute of Public Finance Accountancy of the UK (CIPFA). The intentions of strategic alliances, be it local or international, remains clear. We need to collaborate and not compete with one another. We need to complement one another so that we are able to reach the desired objective of a professionalised public sector. This works best when there is the shared drive to see constructive and positive change. Therefore, there must be an integrated approach and a commitment to work together to achieve this extremely important task so that ultimately our beautiful county can flourish and the next generation can step into a brighter future. It’s a responsibility we must all take ownership of. ■

Agriculture

An estate in De Rust has won a global olive oil prize.

Aglobal competition has rated the extra virgin olive oil of De Rustica Olive Estate, pictured, best in the world.

By scoring 97/100 the South African product, made from the Coratina olive, beat competitors from Italy, Portugal and Spain to win the 2023 International Extra Virgin Olive Oil Quality Awards – EVOOLEUM Awards. De Rustica is close to the small town of De Rust in the Klein Karoo region on the southern slopes of the Swartberg Mountains. The 2 200ha estate also carries Dohne Merino sheep.

One of the sponsors of the awards is the Spanish Association of Olive Tree Municipalities. Spain is by far the world’s biggest producer of olive oil. South African production is small by comparison but the sector is growing in volume and value. Between 2012 and 2020, the area under olive oil production, almost exclusively in the Western Cape which has the ideal climate for olive trees, grew by 70%. In 2020, 500 000 new trees were planted, a figure that dropped to 255 000 in 2023 but the value of shelled exports grew in that same period by 361%. In-shell exports hit a high of 27 250 tons in 2022 but have otherwise stayed in the 20 000-ton range since 2020. South Africa imports nearly six-million litres of olive oil annually.

Other horticultural products that are expanding their plantings are pecan and macadamia nuts. Total land planted to pecan reached 98 842ha in 2020. Companies such as SA Pecans and Olives SA have their headquarters in Hartswater, which is at the centre of the Vaalharts Irrigation Scheme and therefore ideal for the cultivation of pecan nuts. Further along the Vaal River is the agricultural enterprise of Wildeklawer,

SECTOR INSIGHT

Pecan orchards are being mapped.

Africa’s largest onion producer and a big supplier of potatoes, carrots and beetroot to local and international markets.

GWK is another major producer of pecan nuts. The South African Pecan Nut Producers Association (SAPPA) is engaged in a major project to map the country’s orchards.

Macadamia nuts have been trending in South Africa for nearly a decade, but the focus has been on the fertile growing areas of Limpopo and Mpumalanga provinces. No longer.

The hot subtropical climate of the KwaZulu-Natal South Coast is perfect for the cultivation of macadamias and farmers in the area are increasingly starting to switch from bananas. The KwaNatal Banana company, which counts among its members farmers responsible for 80% of banana production by volume on the KZN South Coast, reports that most farmers have planted at least part of their farms with macadamias.

Fertiliser costs for bananas have risen because of Russia’s war with Ukraine and there is increasing competition from countries like Mozambique and Swaziland. Although macadamias are not as labour intensive, they do require a higher level of skill among the workforce.

The global market for macadamias, which is expected to keep growing at an annual compound growth rate of 11.2% to 2032, was valued at R28.7-billion in 2022 (International Nut and Dried Fruit Council). According to Fruit SA, 324 000 South Africans are employed in the fresh fruit industry, which accounted for 35% (or R63-billion) of the country’s agricultural exports in 2021/22. South Africa is the world’s second-largest exporter of citrus fruit. In the 2023 export season, 165.1-million cartons were packed for delivery to global markets but the EU has upset the Citrus Growers Association (CGA) with what the CGA regards as unscientific and irrational restrictions related to black spot and false coddling moth. The EU represents 33% of South Africa’s export market and if the EU ban persists, farmers could lose income of about R3.7-billion. Some of the fruit meant for export has been diverted to juice production.

The sugar industry also faces challenges, not least the imposition of a sugar tax and imports from countries such as Brazil, India and Thailand. Diversification is vital for the future and power generation will be an important part of that. Neither of the Big Two companies relies exclusively on South African sugar earnings: the troubled Tongaat Hulett

Agricultural Research Council: www.arc.agric.za

Grain SA: www.grainsa.co.za

SA Table Grape Industry: www.satgi.co.za

South African Pecan Nut Producers Association: www.sappa.za.org

has a big property portfolio and Illovo draws most of its profit from operations elsewhere in Africa.

National assets

Agricultural land in South Africa stands at about 93.5-million hectares. This represents 76.3% of South Africa’s total land mass of 122.5-million hectares and about 3% less than in 1994.

A total of 70% of South Africa’s grain production is maize, which covers 60% of the cropping area of the country. 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.

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. 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 majority located in the Western Cape.

The Eastern Cape is the largest livestock province, which includes Angora goats, from whom mohair is taken. The province is the centre of the country’s mohair value chain. South Africa has a beef herd of 14-million. South Africa’s milk producers normally produce about 3.3-billion litres of milk every year. ■

Pecan nuts thrive in well-irrigated areas such as Hartswater.

A practical, three-pronged approach to food security

By Julian Palliam, President and CEO of Foskor.

While South Africa is relatively food secure as a country, the 2024 National Food and Nutrition Security Survey highlighted the fact that, at household level, many people struggle with access to food.

According to Statistics SA (Stats SA), around 80% of households report having adequate access to food, which places South Africa around the midway point on the Global Food Security Index. What do we need to do in order to alleviate the situation as quickly and effectively as possible?

The fulfilment of the top two Sustainable Development Goals (SDGs), eliminating poverty and hunger, depends on food security, better nutrition, sustainable agriculture and access to meaningful work. This provides us with clear areas of focus.

The three-pronged approach

A thriving and productive commercial agricultural sector is vital. At Foskor, it is our mission to be an enabler of agricultural production, both in South Africa and around the world. At home, we are the leading supplier of phosphate-based fertilisers to the agricultural sector and we export our products to many international markets. Supporting efficient food production at scale by providing access to seed, fertilisers and equipment has to be the primary prong to the food-security solution. Secondly, we need to develop knowledge, skills and capacity. This is necessary not only to improve productivity and support economic growth but

because these sectors are significant employers. Agriculture alone employs approximately 5% of the working population: access to decent, reliable work alleviates poverty and hunger.

The need to develop skills is urgent and requires cooperation between the public and private sectors. Partnerships like the one Foskor has with AgriColleges International are taking agricultural education into the heart of communities with programmes that are designed to empower residents through both education and development initiatives.

This brings us to what are important but oftenneglected contributors to food security and the third prong of an integrated approach to the issue, home and community gardens. With access to food being affected by diverse issues, household participation in food production can be a lifeline for many. At present, only 14% of households are involved in any kind of food production, but this is changing. Community organisations and NPOs around the country are engaged in helping communities to establish food gardens, advocating for sustainable growing practices and fostering economic empowerment.

Feed the soil, feed the nation

To summarise, the three-pronged approach to universal food security is to support and develop commercial agriculture and related sectors, to provide opportunities to develop agricultural skills at all levels, and to promote widespread participation in home and community food gardening.

At the heart of it all is Foskor’s belief that if we feed the soil, we feed the nation. This is a belief rooted in that every man , woman and child will not go hungry and we will be able to create a better world for all. ■

For further information, visit https://www.foskor.co.za/

PHOTO: Wolfgang Weiser/ Pexels

Foskor mines and processes phosphate

Fertilisers vital for agriculture are a key product of operations in Limpopo and KwaZulu-Natal.

Foskor is a phosphate mining and processing operation that produces phosphates for South Africa’s agricultural sector and for export to countries around the world. It is the only vertically integrated producer of phosphate ore, phosphoric acid and granular fertiliser in the country and is a key enabler of food security in South Africa and internationally.

The company mines and beneficiates phosphate-bearing rock at Phalaborwa in Limpopo, after which it is transported by rail to a dedicated production facility in Richards Bay in KwaZulu-Natal.

Markets

Foskor is South Africa’s leading supplier of granular fertilisers, the core ingredient in nitrogen, phosphate and potassium fertiliser products known as NPKs. It is also a commercial producer of phosphoric and sulphuric acids and magnetite (a by-product of the phosphate beneficiation process), which are sold both locally and abroad.

Beyond serving the local market and SADC regional markets, Foskor supplies phosphoric acid and mono-ammonium phosphate to international markets. While the bulk of phosphate-rock concentrate is used in the Foskor phosphoric acid manufacturing plant, available products are also exported to international markets.

High standards

The company is ISO 9001 certified for Quality Management, ISO 14001 certified for Environmental Management, OHSAS 18001 certified for Occupational Health and Safety Management and SANS 16001 certified for HIV/AIDS Management.

Foskor was founded in 1951 by the Industrial Development Corporation (IDC).

High performance

At Richards Bay the Acid Division has three sulphuric acid plants, two streams of phosphoric acid plants and a granulation plant to make granular fertiliser products. Phosphoric acid is either exported in its acid form, sold locally, or used in the production of granular fertiliser at Foskor. Granular fertiliser is mainly sold locally. A recent highlight for this division is the development of two new granularfertiliser products.

The Mining Division reports an improved safety record, maintenance of a high standard of quality management and the successful conversion of mining rights. In addition, various infrastructure improvement projects are progressing well.

The improved financial performance of Foskor has revived the possibility of future growth, including a potential listing. This has been illustrated by the R2.8-billion profit in the financial year ending in March 2023, after a period of suboptimal performance by the business. The company's biggest shareholder is the Industrial Development Corporation. ■

Foskor Phalaborwa: Mining Division

Foskor Richards Bay: Acid Division

Mining

Anglo American is selling.

The board of Anglo American rejected several offers made by BHP to buy the company during 2024. The bid would have excluded Anglo’s two big South African assets, Kumba Iron Ore, pictured, and Anglo American Platinum (Amplats).

In November 2023 Anglo’s shares came under pressure from the market when the company announced reduced copper targets and major cost-saving measures which included job cuts. Anglo has a longterm strategy to be more focused and consequently is in the process of selling assets and shareholdings in diamonds, coal, nickel and platinum. The portfolio transformation will result in the focus being on copper, premium iron ore and crop nutrients.

Platinum producers have all been under pressure, with Northam Platinum postponing some projects and Sibanye Stillwater laying off staff due to lower global prices. By contrast, the two older staples of South African mining, gold and coal, are making a comeback.

A sale that was first mooted in 2021 was finally resolved in June 2023 when Northam Platinum agreed to sell its stake in Royal Bafokeng Platinum (RBPlat) to Impala Platinum (Implats).

That sale took Implats’ holding in RBPlat to 91% after it had bought 9.26% of the company from Public Investment Corporation (PIC) earlier in the year to give it a majority holding. The RBPlat platinum group metals (PGM) facility, which lies directly south of Sun City, is adjacent to Implats Rustenburg’s land. The Impala Rustenburg operation comprises

The world’s deepest mine will be made even deeper.

a nine-shaft mining complex and concentrating and smelting plants. The big sale coincided with a decline in the global prices of some of the PGMs such as palladium and rhodium. Although the long-term prospects for PGMs are good in support of the nascent hydrogen economy, a slowing Chinese economy and the expanded market for electric vehicles are negative factors.

Gold and coal

Gold is popular again as the global price hit record levels because of

SECTOR INSIGHT

war and instability in so many parts of the world. In November 2024, Sibanye Stillwater reported a 292% increase in adjusted earnings from its South African gold operations while Gold Fields reported normalised earnings of $900-million in 2023, up from $860-million the year before.

Sibanye Stillwater’s diversification strategy included moving into platinum and this has paid off, despite the current commodity price. While Anglo is doing the opposite in selling many of its assets, it is mirroring one aspect of the Sibanye masterplan by investing in lithium batteries. Sibanye has built up its share in a lithium mine and refinery in Finland to the extent that it now holds 80% of the facility, with the state-owned Finnish Minerals Group (FMG) owning the balance. In 2024, Anglo American signed an agreement with FMG

The Financial Mail’s cover story in March 2024 was about gold’s resurgence and how “local miners are reinventing their business operations to stay in the game”. One example was the R7.9-billion devoted by Harmony Gold to extending the Mponeng mine in Gauteng, which means that the world’s deepest mine will be made even deeper. Harmony bought Mponeng from AngloGold Ashanti. The article further noted plans to list Blyvoor Gold in New York and increased production forecasts from Pan African Resources.

Coal’s resurgence is closely linked to a global rethink about the speed of the transition to cleaner fuels. In South Africa, that means that four coal-burning power plants, Camden, Grootvlei, Hendrina and Kriel, will now only be decommissioned in 2030. The commitment to switch power sources has not changed, but the timeframe has. Coal will continue to be mined for some time to come.

Afrimat, previously listed on the JSE in the “Construction and Building Materials” section, has changed its classification to “General Mining”, a recognition of the company’s ambitious buying programme in the Northern Cape and Mpumalanga. With construction and building now contributing just 20% to operating profit, Afrimat is active in anthracite and iron ore and will further expand into phosphates, rare earth elements and vermiculite. Among its new acquisitions, Afrimat now controls the Nkomati Anthracite mine in Mpumalanga. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%.

In July 2023, as scheduled, De Beers Group celebrated the beginning of production at its Venetia Mine in the northern part of Limpopo Province. The long-term, $2.3-billion conversion project

ONLINE RESOURCES

Council for Geoscience: www.geoscience.org.za

Minerals Council South Africa: www.mineralscouncil.org.za

National Department of Mineral Resources and Energy: www.dmr.gov.za

of the diamond mine to an underground mine began in 2012 and will extend the life of the mine to 2045 or beyond.

In the Northern Cape, the Namakwa Special Economic Zone in Aggeneys is being envisioned as an industrial cluster with the biggest new mine project in the country, the Gamsberg project of Vedanta Zinc International, as the central tenant. The project will 600 000 tons of zinc when phase three is complete.

Copper is one of the most important elements needed to power the renewable energy transformation and so it’s no surprise that areas mined historically for that mineral in the Northern Cape are now back in the news. Batteries need copper, as do systems used to transmit energy from solar or wind sources. Electric vehicles contain an average of 85kg. Copper 360 and Orion Minerals are actively pursuing old sites and new. ■

Coal is far from finished.

Revolutionising earthmoving and mining in Sub-Saharan Africa

K-Tec and Ukwazi have joined forces to offer innovative technology and local market knowledge for safe contract mining and site-construction solutions.

In a strategic move set to transform the landscape of earthmoving and mining operations in SubSaharan Africa, K-Tec, a leading manufacturer of innovative earthmoving scrapers, has announced a partnership with Ukwazi, a prominent mining services provider in the region. This collaboration aims to leverage the strengths of both companies to enhance efficiency, productivity and sustainability in the mining and construction sectors.

K-Tec’s cutting-edge technology

K-Tec, renowned for its advanced earthmoving scrapers, has consistently pushed the boundaries of innovation to provide equipment that offers superior performance, durability and efficiency. The company’s product line includes scrapers designed for various applications, from largescale mining operations to heavy construction projects. K-Tec’s scrapers are known for their high load capacities, fuel efficiency and the ability to handle tough terrain, making them an ideal

choice for the demanding conditions often found in Sub-Saharan Africa.

The K-Tec pull-pan scrapers are towed behind high-horsepower tractors or articulated dump trucks for a solution that offers one operator and one engine running to pick up material, transport material and spread the material evenly and efficiently. K-Tec’s scrapers have been successfully moving material on all seven continents of the world. K-Tec scrapers have been effective in the mining market with a proven track record of stripping overburden, mine reclamation, haul road smoothing, gold, salt, lithium, potash, aggregate, clay, bauxite and gypsum rock transportation for processing.

Ukwazi’s local expertise

Ukwazi, headquartered in South Africa, has established itself as a key player in the mining and construction sectors across Sub-Saharan Africa. With a deep understanding of local market dynamics, regulatory environments and operational

challenges, Ukwazi brings invaluable insights and expertise to the partnership. Their extensive distribution network and strong relationships with mining companies and construction firms make them an excellent partner for K-Tec as they expand their footprint in the region.

Ukwazi’s Contracts Manager, Werner Louw, comments on the new agreement: “Ukwazi has selected K-Tec as its preferred partner, and their K-Tec scrapers as unique earth-moving equipment, due to their innovative, cost-effective safe and practical onsite applications. The innovative application of established equipment and methods aligns perfectly

with our strategy to provide safe contract mining and site-construction solutions with a significant competitive advantage, reducing the cost per unit of material moved by up to 30% to 50%.

“Additionally, the environmental footprint is substantially lower, with diesel consumption approximately 30% to 40% less than conventional methods. Moreover, the reduced reliance on scarce water resources provides a significant advantage over wet mining systems. We look forward to implementing these methods to make a real difference to our clients in Sub-Saharan Africa.”

For the K-Tec Direct Mount and ADT scraper products, Ukwazi will obtain sales exclusivity in the region. K.A. Group’s International Business Development Manager, Allan Friesen, explains: “We have been searching for a knowledgeable and reputable distributor in the African region for quite some time and are confident that we have found the right partner in Ukwazi. Their representation, promotion, distribution and servicing of our K-Tec brand of equipment to heavy construction contractors and mining operators in their region allows for a massive advantage in productivity.”

Synergies and strategic goals

The partnership between K-Tec and Ukwazi is founded on the complementary strengths of both organisations. K-Tec’s technological prowess and product innovation will be synergised with Ukwazi’s market knowledge and distribution capabilities.

This collaboration aims to achieve several strategic goals:

• Enhanced product availability: By leveraging

Ukwazi’s extensive distribution network, K-Tec’s advanced scrapers will become more accessible to mining and construction companies throughout the region. This increased availability is expected to drive significant improvements in project timelines and cost efficiencies.

• Local support and service: Ukwazi’s established presence in the region ensures that customers will receive prompt and reliable support, maintenance and service for K-Tec equipment. This local support is crucial for minimising downtime and maximising the lifespan and performance of the machinery.

• Tailored solutions for regional challenges: SubSaharan Africa presents unique challenges, from harsh environmental conditions to logistical complexities. The combined expertise of K-Tec and Ukwazi will enable the development of customised solutions that address these specific challenges, ensuring that equipment performs optimally under varying conditions.

• Sustainable practices: Both K-Tec and Ukwazi are committed to promoting sustainable practices within the industry. The use of K-Tec’s fuel-efficient and environmentally friendly equipment will contribute to reducing the carbon footprint of mining and construction projects, aligning with global sustainability goals.

Impact on the industry

The partnership between K-Tec and Ukwazi is poised to have a significant impact on the earthmoving and mining sectors in Sub-Saharan Africa. Companies in the region will benefit from access to state-of-the-art equipment and fit-forpurpose applications that enhance operational efficiency, reduce costs and promote sustainable practices. Additionally, the collaboration will likely stimulate economic growth by supporting large-scale infrastructure projects and mining operations which are critical to the development of the region.

Future prospects

Looking ahead, K-Tec and Ukwazi plan to explore further opportunities for collaboration, including the introduction of new technologies, partnership on major projects and initiatives aimed at workforce development and training. By fostering innovation and sharing knowledge, both companies aim to drive progress and set new standards in the industry.

In conclusion, the alliance between K-Tec and Ukwazi marks a pivotal moment for the earthmoving and mining sectors in Sub-Saharan Africa. With a shared vision of excellence and a commitment to addressing the region’s unique challenges, this partnership is set to pave the way for a more efficient, productive and sustainable future. ■

About K-Tec

K-Tec is a manufacturer of pull-pan ejector earthmoving scrapers and accessories for the construction and mining industries. K-Tec’s highcapacity, minimal maintenance, lightweight and durable scrapers have proven to work in topsoil, clay, sand, gypsum rock, salt and coal applications. K-Tec’s scrapers efficiently complete three functions of earthmoving by picking up material in the cut zone, transporting the load down a haul road and smoothly ejecting the material in the desired fill area on a job site. K-Tec scraper capacity ranges from approximately 20m³ to 48m³, pulled by tractors or articulated dump trucks (ADTs), resulting in the largest scrapers in the marketplace, allowing for greater production requiring fewer cycles per day to shrink the earthmoving carbon footprint compared to traditional methods of earthmoving. K-Tec scrapers have two daily grease points, to spend time more productively. K-Tec has an industry -leading three-year structural warranty and ISO 9001:2015 certification to stand behind the quality and workmanship of scrapers.

For more information, visit: www.ktec.com

For further information, please contact: Shane Kroeker, Director of Strategic Initiatives

Email: Shane.Kroeker@kagroup.com

Telephone: +1 204 746 6435 ext. 258

About Ukwazi

Ukwazi is a niche mining services provider at its core. It provides integrated multi-disciplinary studies, public reports, due diligence, project valuation, surface engineering and sustainable mining solutions to clients in Sub-Saharan Africa and the Middle East. The contract-mining division focuses on niched applications in the contract-mining value chain.

For more information visit: www.ukwazi.com

For further information, please contact: Werner Louw

Email: werner@ukwazi.com

Telephone: +27 12 665 2154

Maria Moganedi

Email: maria@tsebokgadi.com

Telephone: +27 12 665 2154

ESG in action: Dust-A-Side pioneers sustainability in mining

As South Africa faces the challenges of sustainable development, the mining sector must lead with responsibility.

Dust-A-Side (DAS), a leader in dust control and erosion management, exemplifies this through robust Environmental, Social, and Governance (ESG) initiatives, creating lasting value while shaping a sustainable mining future.

Environmental: conservation through innovation

Water conservation

In arid mining regions, water conservation is essential. DAS’s dust-suppression technologies save millions of litres annually, reducing reliance on traditional water-intensive methods. In one project, DAS cut a client’s water usage by 90%, from 23-billion litres to just 662-million litres. This approach mitigates water scarcity while lowering costs.

Sustainable waste management

DAS follows strict environmental protocols, repurposing non-conforming materials and partnering with certified waste-management firms. With an Environmental Management System certification, DAS minimises environmental impact while enhancing operational efficiency.

Social: uplifting communities

Advancing women in mining

DAS actively promotes gender equity, with two women-owned franchises and female leadership across departments. This inclusivity drives innovation and improves company performance.

Education investments

Through its Ga-Tshaba Tlakana Primary School Upliftment Programme, DAS enhances learning environments with clean water, playgrounds

CONTACT DETAILS

and infrastructure. Additionally, it invests over R1-million annually in bursaries for students in engineering, healthcare and law, fostering South Africa’s future workforce.

Community infrastructure

DAS applies its road stabilisation expertise to improve rural connectivity, delivering projects across regions from Ghana to South Africa’s Northern Cape. Closer to home, DAS repaired potholes and provided water relief during Bethal’s water crisis, showcasing its dedication to community well-being.

Governance: integrity at the core

Strong governance underpins DAS’s ESG practices, with board-level oversight ensuring alignment with the highest standards of accountability. Policies on diversity, anti-corruption and stakeholder engagement ensure that DAS creates long-term value and positive societal impact.

Leading by example

Dust-A-Side demonstrates how mining can address societal and environmental challenges while driving progress. By conserving water, empowering women, investing in education and strengthening governance, DAS sets a standard for sustainable mining.

DAS’s efforts exemplify a commitment to transforming mining in South Africa, Africa and beyond – for a better tomorrow. ■

Clear roads, safer path

Dust-A-Side’s road-binding project in the Northern Cape sets the benchmark for balancing operational efficiency with the well-being of local communities.

The condition of key roadways in the Northern Cape has long been a source of concern for commuters and the mining industry alike. Severely deteriorated sections – marred by corrugation, embedded stones and loose material – have created hazardous driving conditions. These issues generate excessive dust emissions, reduce visibility and compromise road safety for all who rely on these routes.

The consequences have been far-reaching. The poor state of the roads increases the risk of accidents and drives up vehicle maintenance and fuel costs for users. Moreover, the delays caused by these conditions disrupt the flow of light vehicles and heavy delivery trucks, stifling local economic activity. For the mining industry, which depends heavily on road transport for mineral logistics due to the unreliability of railway networks, this challenge is particularly urgent.

Recognising the critical need for intervention, a mine in the Northern Cape stepped forward to address the issue. It undertook proactive measures to improve and maintain a vital stretch of road, prioritising employee safety, community well-being, and environmental impact while awaiting a longterm solution.

Following rigorous testing and approval processes, DASBio demonstrated superior performance, significantly improving road

conditions and safety. DASBio, a premium emulsified bitumen-lignosulphonate-based binder was chosen to effectively bind and seal the road’s surface against wind and water erosion, as well as dust emissions caused by traffic.

Dust-A-Side’s implementation strategy included systematic establishment and maintenance protocols each day on a predetermined stretch of road, involving defect correction, blade mixing, compaction and sealing. Maintenance activities were scheduled on weekends, with adjustments made for weather conditions such as rainfall. The project team executed the project with minimal traffic disruptions, thanks to the presence of clear signage and welltrained traffic management personnel.

Transformative results

The results have been transformative. Many commuters have reported safer journeys and significant time savings. Furthermore, the project’s success has underscored the importance of innovative approaches to road management in mining regions, setting a precedent for future initiatives.

This project is a testament to public-private partnership projects, having positively impacted commuters and other users, and also demonstrated a commitment to sustainable community development, environmental stewardship and the well-being of local communities..■

Solar is shining.

What The Economist says is happening in the world, GreenCape asserts is taking place in South Africa.

Both the UK newspaper and the not-for-profit company concluded within a couple of months of one another in the middle of 2024 that solar is winning. The Economist’s special section on the topic made the point that the progress of solar technology is so fast and so widespread that it almost doesn’t matter that there is some resistance to it: the battle is over. Some statistics put forward in the newspaper included:

• The levelised cost of solar since the 1960s has gone down by a factor of more than 1 000

• China’s solar panel capacity is 3.5TW

• Battery operators in Texas recorded revenues in 2023 of $523-million

• Whereas it took a year for the world to create 1GW of solar power in 2004, it now takes days (Source: Michael Liebreich)

Closer to home, GreenCape’s “Energy Services Market Intelligence Report 2024” noted a 52% increase in rooftop solar PV installations in South Africa, to 3.2GW from the beginning of 2022 to the first quarter

of 2023. They assessed that market value at R41.6-billion and predicted that installed capacity will increase by 2030 to 10GW with a market value of R130-billion.

GreenCape also made observations about South Africa’s automotive industry. Given that the US is likely to want to pivot away trade with China, South Africa’s OEMs need to speed up the production of electric vehicles (EVs). The report

Wheeling is the next big thing.

SECTOR INSIGHT

Moving massive wind turbines can be a tricky business.

noted that with many OEMs in the Eastern Cape, the creation of “large-scale renewable energy plants, such as wind and solar” would support this process. GreenCape market intelligence reports are published in partnership with UK PACT.

One of South Africa’s most successful investment projects, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), suffered a setback in the period between 2015 and 2021 but investors are again queuing up to take a stake in greener energy.

According to the Presidential Climate Commission, the pipeline of REIPPPP projects stood at R377-billion in June 2024. Applications for the development of 4.5GW were received in 2023, sharply up from the two previous years, 135MW (2021) and 1.6GW (2022). The establishment of a one-stop shop to deal with registering projects is part of the reason for the expansion of potential new capacity.

The problem is that South Africa has now come up against the constraints of the national grid. In the most recent round of bidding for projects, the Northern Cape received fewer projects than it otherwise would have if the national grid was keeping up with increased generation potential of new projects. This gives Mpumalanga a comparative advantage. With most of South Africa’s power stations located in Mpumalanga, the issue of grid capacity does not arise.

Automotive manufacturers have not gone all in on switching to producing electric vehicles (EVs), not least because global and local consumers have been somewhat hesitant to commit fully to EV options. There have also been calls from the industry for national government to give guidance in terms of how much support can be expected for the rolling out of incentives to produce EVs and in terms of providing supporting infrastructure, such as charging points.

Ford Motor Company, in announcing a range of investments at their sites in Tshwane and Gqeberha, set aside an amount of R5.2billion for the production of the hybrid-electric Ranger bakkie to be built in Gauteng. Mercedes-Benz South Africa now makes two plug-in hybrid-electric vehicles at its East London plant, although only one of those is sold in South Africa.

The Automotive Industry Development Centre (AIDC) Eastern Cape is taking steps to prepare the province for EVs through its eMobility and Climate Change Support Business Unit. A high-profile aspect of the unit’s work has been the creation of EV charging stations in different parts of the Eastern Cape, including Gqeberha, East London and the Tsitsikamma. Education, research and the promotion of the idea of EV travel, including through the conversion of bus fleets, form important parts of the work of the unit.

Wheeling

Another big change that has come to South Africa’s energy landscape is the concept of “wheeling”. This entails power being generated specifically for a customer and “wheeled” along the grid to that customer from a supplier of energy. For this to work the grid has to be neutral and for that to be a reality, Eskom had to be unbundled, a process that has begun.

The model might entail a highenergy-use company entering a contract with a renewables company to supply it, as is the case with the Impofu Wind Farm complex comprising three 110MW facilities in the Eastern Cape, which will supply energy to Sasol and Air Liquide in Mpumalanga. Enel Green Power and Red Cap are building the R9-billion project. Another example is the joint venture called Envusa Energy, which is the new partnership between EDF Renewables and Anglo American.

Envusa Energy is putting up 50 Nordex turbines on Umsobomvu and Hartebeesthoek wind farms which form part of the Koruson 2 cluster, a blended wind and solar project which is partly in the Eastern Cape and partly in the Northern Cape.

An alternate model is emerging with the creation of energy aggregators, companies that can buy and sell at scale. National regulations on how much electricity private generators could sell fell away in 2023 and that has liberalised and turbo-charged the

market. Some of the new aggregator companies include Discovery Green, NOA, Etana Energy and Lyra Energy.

Battery storage is increasingly becoming an important part of hybrid projects and a move in November 2023 by the JSE, Africa’s biggest stock market, signalled another landmark on the renewable energy landscape.

JSE Ventures has initiated a Voluntary Carbon Market together with US company Xpansiv, with the aim of creating a market for carbon credits.

Wind power is not being left behind, though. In Mpumalanga, Seriti Green has broken ground on a project that will deliver 750MW of wind from 130m towers when it is complete. In addition, the hybrid model will include 100MW of solar and 800MW of battery.

The greater Humansdorp Jeffreys Bay area hosts no fewer than 13 wind farms so the announcement in March 2024 that Nordex Energy South Africa is to start making concrete tower sections at a manufacturing facility in Humansdorp makes economic sense.

Up to 300 jobs will be created and work at the tower factory is expected to start in Q1 2024 with the

GreenCape: www.greencape.co.za

South African Independent Power Producers Association: www.saippa.org.za

South African Wind Energy Association: www.sawea.org.za

first set of turbines due to be installed in the second half of the year. Having invested in the Eastern Cape since 2013, Nordex Energy South Africa boasts a significant footprint in the province, including a warehouse in Gqeberha and 573MW of installed capacity across five wind-power plants.

The latest large resources company to announce a 20-year power-purchase agreement is Richards Bay Minerals. Khangela Emoyeni Wind Farm will supply the miner with 140MW from the huge renewable-energy generator that rolls over a series of mountains on the edge of the Western and Northern Cape provinces.

Certain manufacturing companies that have access to biomass that results from the manufacturing process, such as woodchips for Sappi and bagasse in the case of sugar producers such as Tongaat Hulett and Illovo, are in a position to produce their own energy.

However, there are industries where signing offtake agreements with renewable energy producers is the more logical route to take. In fact, even PGM miner Ivanhoe Mines, despite having its own plans to produce solar power, has signed an offtake agreement with Renergen. ■

Cars powered by hydrogen are on the road.

PHOTO: BMW

Empowering Africa’s energy growth with sustainable solutions

Partner with Forvis Mazars to tackle energy poverty across Africa. Let’s work together to drive sustainable growth and create lasting impact.

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Balancing profit and purpose

In the quest to address energy poverty in Africa, the debate often centres on the tension between profit and purpose. As global sustainability goals increasingly emphasise universal access to energy, particularly in underserved regions, the concept of “profit for purpose” emerges as a crucial strategy.

The concept of “profit for purpose” integrates economic objectives with social and environmental goals. It aligns seamlessly with the United Nations Sustainable Development Goals (SDGs), especially SDG 7, which calls for ensuring access to affordable, reliable, sustainable and modern energy for all. This alignment is particularly critical in Africa, where over 500-million people lack reliable electricity access.

According to the International Energy Agency (IEA) World Energy Outlook 2023 report: “As of 2023, approximately 570-million people in SubSaharan Africa still lack access to electricity, which

underscores the region’s substantial energy access gap.”

This figure is consistent with other sources such as the World Bank’s Energy Progress Report 2023: “Around 575-million people in SubSaharan Africa live without access to electricity, highlighting the ongoing challenges in achieving universal energy access.”

Profit for purpose therefore seeks to balance financial returns with social impact, ensuring that businesses contribute to sustainable development while remaining economically viable. This approach supports the African Union’s 12 priorities, including the commitment to universal access to clean and affordable energy. By focusing on underserved markets, businesses can play a pivotal role in advancing these goals, demonstrating that financial success and societal benefit are not mutually exclusive.

However, investing in energy solutions for poverty-stricken areas clearly presents unique financial challenges and opportunities. The challenges revolve around the high initial costs. Developing infrastructure in underserved regions often requires substantial capital investment. In addition, these areas may also pose higher risks due to political instability, economic volatility or poverty. Furthermore, there is limited access to traditional financing, as many of these markets are considered too risky by conventional investors, resulting in limited access to commercial funding.

Innovative financing

This creates the opportunity for innovative financing models. Multilateral finance institutions and climate finance mechanisms offer potential for blending funding sources. Hybrid models, such as

Addressing energy poverty in Africa. By Taona Kokera, Director: Forvis Mazars.

Taona Kokera, Director: Forvis Mazars

Investments in off-grid renewable energy solutions tackle energy poverty while also creating access to new markets.

combining donor funds with private investments, can mitigate risks and attract capital to highimpact projects. By combining these different sources of funding – climate finance mechanisms and multilateral finance institutions – the financial burden is shared and the overall risk is reduced. This blended approach can make investments more attractive and financially viable.

Shared-value mechanisms offer companies the chance to align social impact with business success. By incorporating social responsibility into their core operations, businesses can unlock new market opportunities and strengthen their competitive position. For example, investing in off-grid renewable energy solutions enables companies to tackle energy poverty while simultaneously entering an expanding market. This approach allows the investment in energy solutions to generate new revenue streams and foster business growth, ultimately becoming self-sustaining through the increased market potential.

Solving energy poverty has profound implications for economic growth and social development. Expanding access to energy stimulates local economies by creating jobs in the energy sector and associated industries. This economic activity can boost livelihoods and support small businesses. As businesses and households benefit from reliable energy, they can engage in more productive activities and small-

scale enterprises, which can generate additional economic activity. This increased economic activity in turn leads to higher income and investment returns, thereby supporting the self-financing of energy projects.

Reliable energy access improves productivity by enabling businesses to operate more efficiently and by providing households with the means to engage in productive activities, such as small-scale enterprises.

Access to energy enhances living standards by providing basic amenities such as lighting, heating and cooking. This, in turn, supports better health outcomes and educational opportunities. Energy access can empower marginalised communities, particularly women and rural populations, by providing them with the resources needed to improve their socioeconomic conditions. Improved quality of life can lead to stronger, more resilient communities that are better able to support and sustain economic activities, further contributing to the financial viability of energy projects.

Closing the energy gap in Africa can become self-financing through such innovative mechanisms and strategies. By leveraging these strategies, the initial investment in closing the energy gap can be offset by the economic and social returns generated, demonstrating that such initiatives can indeed be self-financing in the long term. ■

Oil and gas

Plans to develop gas fields have been put on hold.

TotalEnergies has announced that it will not proceed with plans to develop the Brulpadda and Luiperd projects off the south-eastern coast of South Africa.

Although the blocks were found to be rich in gas, the company said that they were not “commercially viable” to develop, without going into details. The National Department of Mineral Resources and Energy has declared that it is confident that another investor will be found for the project and TotalEnergies still has exploration rights over a number of other offshore fields such as Orange Basin Deep which is located 220km west of Cape Town in water depths between 2 800m and 4 200m.

Other oil majors exploring in those South African and Namibian waters, collectively known as the Orange Basin, include Galp, Chevron and Shell. The fields are said to be capable of yielding up to 7.5-billion barrels of recoverable oil. The Financial Mail reports that more than half of TotalEnergies’ worldwide exploration budget is being invested in the Orange Basin.

The body responsible for promoting and regulating South Africa’s oil and gas sector is Petroleum Agency SA (PASA). With regard to the discoveries off the West Coast, PASA’s Manager: Resource

In May 2024, bpSA celebrated 100 years in South Africa.

Evaluation Manager David van der Spuy says, “The area under licence is bigger than the licence area of the south coast and in our opinion holds great potential. TotalEnergies and its partners have submitted a work programme for initial drilling of up to five exploration wells in the area.”

In celebrating its centenary in South Africa, bp Southern Africa (bpSA) explained how and why it has divested from various

SECTOR INSIGHT

businesses in the country in recent years. The global goal is to pivot “from being an international oil company that produces resources to an integrated energy company that delivers solutions for customers”.

Servicing of the commercial, industrial and agricultural sectors is now being done with Masana Energy Solutions and its empowerment partners. The company’s East London terminal was sold to WASAA, a black-female-owned company and secondary transport has been outsourced to DP World and Makwanda Supply & Distribution. At the same time, bpSA has committed to upgrade more than 500 service stations and find more black franchisees. In addition, the company intends upgrading and expanding the retail offerings of forecourts and optimising the supply model by implementing an integrated product and supply chain.

Another disinvestment by bpSA was in Durban. Together with the joint owners of the SAPREF Refinery, Shell Downstream SA, the decision was made to sell the 180 000 barrel-a-day plant to the Central Energy Fund (CEF). The reported price paid by the CEF, the entity charged with managing South Africa’s energy assets and which reports to the Department of Mineral Resources and Energy (DMRE), was R1. When it was operating at full capacity, the facility accounted for roughly 35% of the country’s refinery capacity.

Durban’s other oil refinery, Enref, was hit by a fire in December 2020 and it has since been operating as a storage facility for owners Engen. South Africa is a net importer of fuel and the Port of Durban handles 80% of South Africa’s fuel imports. In April 2024, the Competition Tribunal approved a proposed a merger whereby Vitol Emerald Bidco intends to acquire Engen, subject to a set of competition and public interest conditions. Among Vitol’s assets is the Burgan Cape Terminal, a storage and distribution facility in Cape Town.

Natref in Sasolburg is South Africa’s only inland crude oil refinery and is a joint venture between Sasol Oil and Total South Africa.

Gas future

The Virginia Gas Project in the Free State owned by Renergen has experienced some delays in producing helium but as of August 2024 the company announced that its liquid helium production train was fully operational and sales to customers could start. Whereas it took nine years to find the R1.2-billion needed to fund the first phase of the Virginia Project, investors are now looking very keenly at its prospects. An amount of R3.6-billion has been invested

ONLINE RESOURCES

Council for Geoscience: www.geoscience.org.za

South African Oil and Gas Alliance: www.saoga.org.za

South African Petroleum Industry Association: www.sapia.co.za

by Ivanhoe Mines to secure some offtake rights and the Central Energy Fund has purchased a 10% stake for R1-billion.

Van der Spuy reports that apart from the biogenic gas discovery being worked on in the Free State, the country also has “other types of unconventional gas onshore, such as coal-bed methane and shale gas”.

The National Energy Regulator of South Africa (Nersa) has approved an application from national utility Eskom to build a 3 000MW gas power station in Richards Bay. An allocation of 3 126MW to natural gas has been made in the national medium-term energy policy to 2030. The National Department of Mineral Resources and Energy allocated one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme (IPPPP) to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub.

Another site has been identified within the Coega SEZ in the Eastern Cape, but no plans have been published. The Western Cape Provincial Government is lobbying for Saldanha to receive a licence to run such a plant. Environmental groups have lodged appeals to stop the building of the plant, which is a step along the pathway outlined by national government to use gas as a “transitional fuel”, away from fossil fuels towards greener sources of power. ■

Engineering

New engineering capacity is available in Richards Bay.

Bell Heavy Industries has been launched. In 2023, Bell Equipment, the manufacturer of well-known yellow Articulated Dump Trucks (ADTs), announced that it would be offering services such as complex engineering, heavy fabrication and machining to other companies. In making the point that the company’s staff is well-equipped to offer these sophisticated services, Bell Equipment’s Group Business Development Director, Stephen Jones, noted, “South Africa has seen a huge reduction in engineering companies and in response, we have strategically positioned our South African manufacturing facility to fill this void by providing project engineering and contract manufacturing through BHI.”

Bell’s range of equipment includes Excavators, Backhoe Loaders, Wheeled Loaders, Telescopic Handlers, Skid Steer Loaders and Graders that are used in the mining, earthmoving and agriculture sectors. The company is a notable exporter and was named the overall winner at the 2023 South African Capital Equipment Export Council (SACEEC) Exporter of the Year Awards.

There is more economic activity in the Northern Cape than many South Africans know about. The towns of Kuruman and Pofadder have no fewer than three Country Hotels properties – each. Many of the professionals staying in these hotels, lodges and inns are engineers, working on an ever-increasing number of mining expansions or solar or wind renewable energy projects.

Another town that might not be a little town for much longer is Kathu. Ensor was contracted by the Provincial Government of the Northern Cape to develop and extend Kathu West with approximately 5 700 stands some years ago. More recently GAP Infrastructure Corporation (GIC) has been doing township developments and road, water network and stormwater projects across the province. The water network project entails installing an internal water-reticulation system that will include reliable house connections, water meters, fire hydrants and isolation valves, providing the community with a stable and secure water supply. The sewer network project aims to install robust uPVC sewer pipes and concrete manholes with heavy-duty covers.

Many South African engineering concerns are filling their order books with renewable energy infrastructure orders, and its not just in the Northern Cape. The Eastern Cape is rapidly becoming known as the “Wind Province” while Mpumalanga is attracting a lot of attention because of the existence of significant grid infrastructure supporting power plants, many of which are due to be decommissioned soon. Solar and wind projects could then get access to the grid cheaply.

The country has ambitious plans to generate more power from solar, hydro-electric and wind plants and fit more rooftop solar panels

SECTOR INSIGHT

Renewable energy contracts are filling order books.

to houses and businesses. One such project in the Northern Cape, the Redstone Concentrated Solar Thermal (CSP) power plant, represented a substantial foray for Grinaker-LTA’s engineering division into the renewable energy field.

Some of the key aspects which Grinaker-LTA was responsible for included hot and cold storage tank bases, civil works, the steam generation structure and the molten salt pump towers. The 100MW plant is the first projectfinanced CSP with molten-saltcentral receiver in the world.

ACWA Power, a Saudi developer, investor and operator of power generation plants, and Chinese engineering company SEPCOIII Electric Power Construction Limited, managed the project and they jointly appointed GrinkakerLTA as the contractor to execute the construction of the project’s critical structures.

Also in the Northern Cape, engineering skills are being

expanded by new work associated with radio astronomy. Local artisans from the town of Carnarvon have built telescopes for a radio telescope array project, the 350-dish HERA project, which is led by the US National Science Foundation with the South African Radio Astronomy Observatory (SARAO) acting as the local partner, responsible for systems engineering and construction, among other duties. At one point, the construction team grew to 20 and many news skills were learnt.

When dairy company Clover decided to consolidate its national operations into just four plants, technological expertise was needed to make sure those factories were able to cope with greater demand. One such company was Energy Partners Refrigeration (EPR) who were contracted to tackle a number of issues, including increased power requirements to higher refrigeration load as well as increased steam demand and pressure requirements. The upgrade of the cooling structure featured the installation of a new 10MW ammonia system and 16% of all the electricity used by the new system is generated by solar PV. An innovative aspect of the project is that Clover has a Cooling-

large upfront investment cost as a barrier to improved efficiencies and improved environmental performance.

Marine repair and engineering form a significant sector in the Western Cape and KwaZulu-Natal, with established companies such as EBH South Africa offering comprehensive services. Both KwaZulu-Natal ports are expanding and will continue to attract engineers.

The Engineering Council of South Africa has a programme where trainees can earn certificates in specific disciplines from a range of institutions. The qualifications

Ensuring clean, high-quality welds

Exclusive access to advanced machinery gives Steinmüller Africa the edge.

Steinmüller Africa’s comprehensive fabrication offering includes submergedarc welding (SAW), a method where the arc is submerged under a blanket of flux in powder form. While this process is well established in the industry, Steinmüller Africa’s exclusive equipment has extended the process to more applications such as fabricating membrane walls for boilers, for example.

With advanced machinery, including one of the only two PEMA machines in the country and the only Oerlikon SAW stub-welding machine in South Africa, among others, the company is well equipped. Using this machinery, Steinmüller Africa can provide its clients with fast and cost-effective turnkey fabrication solutions. SAW ensures minimal weld repairs and offers a faster weld solution, increasing plant uptime. These capabilities position Steinmüller Africa to deliver welding services to effectively meet the growing demands of the energy and industrial sectors.

Steinmüller Africa’s expertise is supported by its fleet of three boom welders, the Oerlikon welding machine for header-to-stub welds and the PEMA machine, pictured right, which features six welding heads for welding membrane walls, offering more capacity. SAW has few limitations barring those inposition welding, however. Components can be

manipulated into the flat position, which results in no significant limitations beyond the thickness of the material. Additionally, SAW offers a more controlled and efficient process compared to manual-gas-tungsten-arc welding (GTAW) and shielded-metal-arc welding (SMAW), which rely on gas and flux-coating respectively for arc protection.

An ideal solution

With the change in available consumables such as flux and gas and Steinmüller Africa’s exclusive cutting-edge technology, SAW can effectively be used across a range of applications. These factors make the company the ideal solution provider for clients’ welding requirements.

Although SAW offers numerous advantages, it comes with challenges including moisture absorption in the flux and position of welding. Steinmüller Africa overcomes these challenges by adhering to rigorous standards: the flux is baked according to the manufacturer’s guidelines and kept hot during welding to prevent moisture absorption. Welding parameters are carefully determined during planning and are strictly monitored throughout the process.

Operating SAW machinery requires specialised expertise. To ensure compliance with all governing standards and to ensure optimal machinery use, Steinmüller Africa provides inhouse training for its welders.

With successful welding services and installations at various Eskom Power Stations and Sasol, Steinmüller Africa continues to set the benchmark for excellence in SAW applications, reinforcing its position as a leader in the industry. Senior Welding Engineer Friedrich Schwim highlights, “Steinmüller Africa is always investigating opportunities to optimise component fabrication to ensure the highest quality and cost-effectiveness. We also ensure faster manufacturing times while remaining competitive with fabrication costs in the industry”. ■

WE MAKE MAINTENANCE WORK

Steinmüller Africa is a one-stop maintenance partner that tailor-makes maintenance solutions to meet client requirements and expectations. The key to the company‘s success is a predefined structure that covers all aspects of a project and ensures peace of mind for the client. The company offers vast experience across all aspects of outsourced plant shutdown work execution which allows them to complete unusually large projects.

Steinmüller Africa is a B-BBEE level 1 contributor.

Rivonia 2191, South Africa

Phone +27 11 806 3000 info@powerafrica.bilfinger.com

STEINMÜLLER AFRICA OFFERS PLANNED AND UNPLANNED MAINTENANCE OPERATIONS, WITH FIELD SERVICE AND ON-SITE/LOCAL WORKSHOP FACILITIES:

Boiler Island Services

HP Piping

Mills, Coal, Ash Handling Equipment

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Making meaningful contributions to the quality of life

The CEO of South African Institute of Electrical Engineers (SAIEE), Leanetse Matutoane, encourages the mentoring and professional registration of the new generation of electrical engineers.

What the current key priorities of SAIEE?

Increase relevance, representation, visibility, governance structure, membership growth and reach.

Would you agree that South Africa needs many more qualified electrical engineers? South Africa needs to fill the skills demand for qualified, experienced and professional electrical

BIOGRAPHY

Leanetse Matutoane, CEO of SAIEE

Leanetse Paul Matutoane was born in Evaton, Gauteng. He holds a National Diploma in Electrical Engineering (Heavy Current) from the Vaal University of Technology and an MBA from Rhodes University. He has been active in the technical, automotive and engineering consulting operations management industries for most of his career. In 2007, he received the General Motors Chairman’s Award for his role in the start-up of

engineering practitioners in order to keep up with economic requirements. Thereafter, a constant supply of these practitioners needs to be maintained to ensure that the demand pipeline is constantly primed. The requirement is in the education, energy and construction sectors. This is evidenced in the presence of electrical engineering practitioners on the critical skills list.

operations for the HUMMER H3 production vehicle of General Motors.

Leanetse started his career as an Electrical Technician with Iscor, progressing to Master Technician. After that, his responsibilities in production management within the automotive and FMCG sectors included producing a wind-turbine manufacturing facility. His experience includes introducing a Lean Manufacturing tool at two plants of an automotive manufacturer. Leanetse joined SAIEE as Operations Manager in June 2018 and was appointed Acting CEO in January 2021. In April 2022 he was officially appointed as the Chief Executive Officer of SAIEE.

In his current role, he oversees SAIEE’s regional centres and SAIEE’s Training Academy and Continuous Professional Development programmes. He is charged with implementing SAIEE’s strategic intent, including the relationship with national and international sister institutes. SAIEE currently has MOUs with the IEEE USA, Cigre Southern Africa, the Association of Municipal Electricity Utilities of Southern Africa (AMEU) and the Southern African Power Pool (SAPP). SAIEE is in the process of finalising MOUs with the Lesotho Association of Engineers (LAE) and State Enterprises of the People’s Republic of China.

What is SAIEE doing to produce the next generation of electrical engineers?

As a voluntary association recognised by the Engineering Council of South Africa (ECSA) as being a statutory body, we encourage the participation of students in the structures of SAIEE to expose them to the industry and introduce them to relevant movers and shakers in the industry. Members that are already active in the industry are encouraged to mentor upand-coming electrical engineering practitioners towards professional registration.

Please comment on the opportunities and challenges for electrical engineers presented by the burgeoning renewable energy sector in South Africa. With the introduction of the renewable energy IPP projects in South Africa, a multitude of opportunities have been created that require and encourage electrical engineering expertise. On the other extreme, small-scale embedded generation demand has also created opportunities for the application of expertise in design.

Wind turbine manufacturers have said that as OEMs, they require that people who work on a turbine must have a qualification from the wind turbine company. Is this an obstacle to South Africans being employed in the RE sector?

Given that South Africa has a high unemployment rate, this should not be used against South African electrical engineering practitioners, but rather be used to ensure that those requisite skills are available in SA. It is understandable that OEMs would need assurance that someone working on their products is trained on them to be able to honour their guarantees. However, this should not be used as an obstacle. OEMs in SA should ensure that locals are trained in their products to be able to provide services required instead of having to import them.

Which sectors present the best opportunities for electrical engineers in the short term?

Electric vehicles, renewable energy and AI are the

current buzzwords of the industry and present the best opportunities for electrical engineering practitioners in the short term. They are also bound to be with us in the long term as technology continuously evolves and skilled persons that are “fluent” in those technologies stay in demand.

What role do you play in society?

SAIEE is a voluntary association whose purpose is to enhance the practice of electrical engineering and the stature of its members through knowledge, networking, influence, education and communication. Our membership comprises electrical engineering practitioners (engineers, technologists, technicians and artisans) engaged in the full range engineering activities, including academic research, manufacturing, electronics, telecommunications, measurement and control, mining and power infrastructural services. Members make meaningful contributions to the quality of life in communities and the steady advancement of technology. Their efforts are acknowledged in many countries of the world.

What is Identification of Engineering Work

and how does it affect electrical engineering practitioners and society in general?

The Identification of Engineering Work (IDoEW) Act 46 of 2000, section 26, empowers ECSA to develop policy on the IDoEW. ECSA gazetted the IDoEW on 26 March 2021 and the engineering fraternity is requested to submit compliance plans that contain procedures for ensuring that all engineering work is appropriately identified and ascribed to registered persons plans by 31 March 2025. IDoEW promotes safety and protection of the public and the environment by ensuring that only registered professionals in the different categories of registration, and who have demonstrated the required competence and academic qualifications, perform engineering work or take responsibility for engineering work so performed per category. ■

Leading the transition

Automotive Industry Development Centre Eastern Cape (AIDC-EC).

An electric vehicle charging station, which has been installed on the East London beachfront by the AIDC-EC.

The Automotive Industry Development Centre Eastern Cape (AIDC-EC) is a Provincial Government entity which was established to be a catalyst for a transformed, growing and sustainable automotive sector and to facilitate collaboration between government and all automotive sector stakeholders to achieve competitiveness.

The AIDC-EC, through its eMobility & Climate Change Mitigation Business Unit, is leading the transition towards sustainable transportation solutions that mitigate climate-change impacts through innovative e-mobility technologies and practices.

Electric mobility (eMobility) refers to the integration of electric vehicles (EVs) into transportation systems, encompassing electric cars, bikes, scooters and public

transport. It represents a significant shift towards sustainable transportation, reducing greenhouse gas emissions and promoting efficient energy consumption.

EMOBILITY & CLIMATE CHANGE MITIGATION BUSINESS UNIT

FOCUS AREAS

The eMobility & Climate Change Mitigation Business Unit is dedicated to driving the transition to sustainable transportation solutions and mitigating the impacts of climate change. The mission is to lead the industry in e-mobility innovation, education and advocacy, while promoting a culture of sustainability and environmental awareness.

Electric mobility is crucial in addressing climate change by reducing greenhouse gas emissions and air pollution. The key activities of the eMobility & Climate Change Mitigation Business Unit are:

1. Promotion of EVs: Encouraging the adoption of EVs, buses and motorcycles to replace traditional fossil fuel-powered vehicles

2. Infrastructure development: Building and expanding EV charging stations in the Eastern Cape to facilitate mass EV adoption

3. Policy and regulation: Implementing policies and regulations that incentivise the use of electric vehicles, such as tax benefits, subsidies and lowemission zones

4. Public awareness campaigns: Educating the public about the benefits of eMobility and how it contributes to reducing carbon footprints

5. Research and development: Investing in R&D that leverages lessons learned from the deployment of EV charging stations across different regions. This can involve learning from existing installations, predicting EV prices in South Africa, pilot projects, local adaptation and sustainability in charging technology

6. Integration with renewable energy: Ensuring that

Representatives of the Provincial Government of the Eastern Cape were on hand when a ceremony was held to launch the electric vehicle charging station at the Nelson Mandela Bay Stadium in Gqeberha in October 2024.

the electricity used to charge EVs comes from renewable sources like solar and wind power

7. Battery technology: Significant advancements in battery capacity, range and charging speed are driving the adoption of EVs

8. Charging infrastructure: The expansion of charging stations, including fast-charging networks, is crucial for widespread EV adoption

9. Battery recycling: Sustainable battery recycling and disposal practices are crucial for the longterm environmental sustainability of eMobility

These activities are essential for creating a sustainable and environmentally friendly transportation system.

STRATEGIC OBJECTIVES: EMOBILITY & CLIMATE

CHANGE MITIGATION BUSINESS UNIT

The strategic objectives of the eMobility & Climate Change Mitigation Business Unit are to focus on several key areas to drive the adoption of electric mobility solutions. These strategic objectives are:

1. Innovation

2. Sustainability

3. Customer focus

4. Strategic partnerships

5. Regulatory compliance

6. Education and awareness

7. Sustainability initiatives

8. Funding and investment

Implementing the projects and pilot programmes in the eMobility business units will pave the way for sustainable transportation solutions that meet the needs of modern urban environments while contributing to broader environmental goals.

PROJECTS TO BE IMPLEMENTED BY 2035

1. Battery Recycling

2. Bus Fleet EV Conversion Pilot Programme

3. Government EV Conversion Programme

4. EV Components and Testing

5. Charging Infrastructure

6. Training and skills in the industry

7. Battery Assembly

8. Micro-mobility Incubator

9. EV Aftermarket and SMME Support

PILOT PROGRAMMES

1. Conversion of bus fleet in major metropolitan areas in the Eastern Cape

2. Conversion of government light-vehicle fleet in the Eastern Cape

Manufacturing: automotive

Carbon taxes present a challenge.

As the South African automotive industry celebrated one hundred years of making cars in the country, two challenges appeared on the legislative and political landscape: European carbon targets and a possible recalibration of policies by the US.

The Carbon Border Adjustment Measurement of the EU will be introduced in January 2026. For original equipment manufacturers (OEMs) in South Africa, the implications are great. The National Cleaner Production Centre, a subsidiary of the Department of Trade, Industry and Competition (the dtic), has offered its services to OEMs to establish whether or not they are meeting the targets.

Since 2000, the African Growth and Opportunity Act (AGOA) has afforded many African countries the right to export into the US almost 7 000 products duty-free. This has been a big boost for OEMs like Mercedes-Benz which sends a lot of its vehicles to the US.

In 2022, countries with AGOA status exported goods to the value of $30-billion into the US, with $10.2-billion of that attracting no duties. With the US and South Africa differing in their respective attitudes to the conflicts in the Middle East and Ukraine, there is a chance that US policy-makers could withdraw South Africa’s status.

On the other hand, the US is also likely to do less trade with China under President Trump and there may be additional opportunities in the US if AGOA can be safely negotiated.

Ford Motor Company started making cars in what was Port Elizabeth in 1924. Today it makes engines in the same town, now known as Gqeberha, and vehicles in Pretoria.

BMW Group has started making the BMW X3 as a plug-in hybrid for export at its Rosslyn Plant in Tshwane. Pretoria is also home to Nissan. The Tshwane Automotive Special Economic Zone (TASEZ) is a project of the Gauteng Province, the dtic and the City of Tshwane.

The 520 963m² facility of Volkswagen South Africa in Kariega is one of four plants worldwide that makes right-hand-drive Polos but the only one in the world that makes the Polo GTI.

Both the Coega Special Economic Zone and the East London Industrial Development Zone (ELIDZ) have areas dedicated to automotive and automotive components manufacture and the Automotive Industry Development Centre – Eastern Cape is focussed on growing the sector.

Automotive Industry Development Centre: www.aidc.co.za

Naamsa | The Automotive Business Council: www.naamsa.co.za

Ford makes engines in Gqeberha, where it started operating in 1924.

The national Automotive Production and Development Programme (APDP) has been extended to 2035, 15 years beyond its original expiry date. State support for the industry has helped it thrive, but manufacturers are expected to increase local content levels.

The industry itself is looking to Africa for new markets and is urging national government to release policy guidelines on electric vehicles. ■

National Association of Automotive Component and Allied Manufacturers: www.naacam.org.za

PHOTO: Ford Motor Company

SEZs have automotive zones.

SECTOR INSIGHT

Manufacturing

Africa beckons.

The Secretariat of the African Continental Free Trade Area (AfCFTA) has announced that an adjustment fund to support manufacturing in Africa will start releasing funds in 2025. The AfCFTA Adjustment Fund Corporation has raised $1-billion and is aiming for $10-billion to assist with issues that might arise as countries across the continent drop protective tariffs. Grants and concessions will be made available to mitigate shocks to local manufacturing. The intention of AfCFTA is to make all of Africa a freetrade area, with intra-continental trade eventually attracting no tariffs.

Several South African manufacturers have made forays into other parts of Africa but logistical and legislative challenges have meant that it has not always been plain sailing. AfCFTA represents a significant opportunity for the manufacturing sector. Exports between African nations account for about 16% of Africa’s total exports, compared to 49% in North America, 55% in Asia and 63% in the EU.

The first shipment to leave South African shores, pictured, was made under the Guided Trade Initiative (GTI), a precursor agreement that allows small quantities of goods to be traded. On board the MSC Floriana VI, which left Durban bound for Ghana on the last day of January in 2024, were electrical appliances, refrigerators and equipment relevant to the

A Medtech Masterplan has been launched.

SECTOR INSIGHT

GCIS

mining, cement and power-generation sectors, namely forged grinding balls and high-chrome grinding media products.

Ghana’s location in West Africa, its two deepwater ports and good logistical links with other countries in the region make it a logical partner for trade. The headquarters of AfCFTA are located in Accra, the capital city.

In May 2024, South Africa’s Department of Trade, Industry and Competition (the dtic) launched the Medtech Masterplan, the 12th such plan initiated by the department. Medtech encompasses syringes, software and MRI machines and there are 135 medtech manufacturing companies in the country, according to the South African Medical Research Council. The South African Medical Technology Industry Association has welcomed the masterplan, which joins a list of similar schemes designed to help, among others, the cultural and creative industries, commercial forestry, steel and metal fabrication, furniture, sugar, poultry and automotive sectors. One of the most comprehensive was the South African R-CTFL Value Chain Master Plan to 2030 which addressed the retail clothing, textile, footwear and leather sectors.

Outgoing Minister of Trade, Industry and Competition, Ebrahim Patel, told the Sunday Times in May 2024 that in the face of global competition the national clothing industry “risked losing its productive capacity but today it stands and provides thousands of jobs in manufacturing and retail”. Critics of the masterplan approach argue that “picking winners” does nothing to enhance real competitiveness and that small businesses are often ignored. Additionally, masterplans will make the adjustments that will have to be made to accommodate the AfCFTA even more difficult to implement.

One clothing company that has responded well to market conditions is TFG, which counts Foschini, TotalSports and Markhams among its retail brands. For a decade, it has been buying up clothing factories and is now in a position to respond more quickly to fashion trends than when it was more dependent on imports. Among TFG’s acquisitions were Prestige Clothing Maitland and a factory in Epping. Apart from these two Cape Town properties, TFG has factories in Caledon, Durban and Johannesburg. The group plans to increase the percentage of locally made clothing items from the current level of 35% to 55%.

The success of TFG has inspired other Western Cape clothing sector companies and consultants to think in terms of rolling out the TFG model, which, according to the Financial Mail, allows for a garment to get to the end of a production line in less than four hours instead of 10 days and for items to be placed on store shelves in a matter of

ONLINE RESOURCES

Chemical and Allied Industries’ Association: www.caia.co.za

SA Medical Technology Industry Association: www.samed.org.za

South African Textile Federation: www.texfed.co.za

weeks instead of months. If the plan comes to fruition, a series of factories in an arc around Cape Town and within two-hour’s drive of the five big retailers in the city and the Port of Cape Town will be established.

Sappi has spent R7.7-billion on expanding its dissolving pulp plant in KwaZulu-Natal. The project aims to boost the annual production capacity of dissolving pulp (DP) at Saiccor Mill by an additional 110 000 tons annually, taking production to 890 000 tons a year and reinforcing the company’s position as the world leader in the manufacture of Lyocell, a cutting-edge material of the future. Lyocell is a form of rayon consisting of cellulose fibres made from dissolving pulp that is reconstituted by dry jet-wet spinning. The fully biodegradable and compostable fibre is used to make textiles.

Ardagh Group is a large multinational with 63 metal and glass-production facilities in 16 countries, with more than 20 000 employees. The group’s 2022 acquisition of Consol Glass created Ardagh Glass Packaging – Africa, and led to immediate investment in an expansion of the glasscontainer plant in Nigel, Gauteng.

The two new furnaces that have been added to the facility, at a cost of R3-billion, are expected to create 300 new jobs and have made it the biggest of its kind in Africa. Other Gauteng facilities of the group are located at Wadeville and Clayville and there is a Western Cape factory in Bellville. The group’s other continental assets are in Ethiopia, Kenya and Nigeria. ■

Recycling making great strides

Plastics SA’s survey on polymer consumption and recycling records successes and highlights the need for more infrastructure and education.

The circular economy of plastics. Designing with recycling in mind and developing collection and recycling systems will support circularity.

Plastics SA, the umbrella body representing the local plastics industry, has released its latest survey results on polymer consumption and recycling figures for the year ending 2023. This year’s report shows significant strides in the recycling sector, while highlighting the importance of continued investment in infrastructure and education.

The annual survey, conducted through personal interviews and completed surveys, reported that 295 recycling operations were recorded in South Africa at the end of 2023. Of these, 40% processed post-consumer materials, granulating, washing and pelletising them. However, only a portion of these recyclers can successfully process landfill-sourced material due to the high capital investment required for

PHOTO: Unsplash

proper wash plants, feasible only for larger operations.

Notably, 6.2% of the 273 recycling operations from 2022 ceased operation, while 39 new companies were recorded, indicating both challenges and opportunities within the sector.

“Strengthening competition within the South African plastics industry can have a profound impact on the recovery of the broader manufacturing sector. Plastics are integral to supply chains across healthcare, energy, aerospace, automotive, maritime, construction, electronics and packaging. This multisector dependency makes the plastics industry’s contributions vital. In 2023, the sector accounted for 1.8% of South Africa’s GDP and 15.8% of manufacturing GDP, highlighting its critical role,” says Anton Hanekom, Executive Director of Plastics SA.

Virgin consumption by application 2023.

Although South Africa’s plastics industry is relatively small on a global scale, representing less than 0.4% of global production, it remains the largest in Sub-Saharan Africa. In 2023, 1 568kt of virgin polymer were used in the production of plastics across a variety of industries. The packaging sector dominated consumption at 48.2%, followed by building and construction (12.5%), agriculture (9.4%), electronics (6.4%) and the automotive industry (6.3%).

Recycling

growth and challenges

Recyclate market 2023: local markets for 415 800 tons of recyclate.

Recycling continues to be a dynamic area within the plastics industry. An impressive 431 800 tons of plastics were recycled in 2023, up from 368 800 tons in 2022. This resulted in an input recycling or collection rate of 52%, a significant increase from 42.9% the previous year. The output recycling rate also rose, reaching 27.5% from 22.9% in 2022. These

figures position South Africa as a leader in mechanicalplastics recycling, outperforming many developed nations in mechanical recycling of thin polyethylene films and contaminated post-consumer plastics. Despite these successes, there are still significant quantities of recyclable plastic waste ending up in landfills. Increasing both the quantity and quality of recycled plastics is crucial to driving the circularity of the plastics industry.

Employment and economic impact

Formal and informal jobs 2023.

The recycling sector remains a critical source of employment, particularly within the informal economy. In 2023, an estimated 95 900 incomegenerating opportunities were sustained, including waste pickers and smaller entrepreneurial collectors.

The industry contributed over R4.7-billion to the supply chain, including the informal sector, for collecting 671 200 tons for recycling.

International and local policy concerns

As the world prepares for the INC-5 meeting in Busan, South Korea, Plastics SA has expressed concerns over global moves to regulate Chemicals of Concern (CoC) through a standardised list. The Intergovernmental Negotiating Committee (INC) falls under the United Nations Environment Programme (UNEP). Hanekom emphasises that while the industry supports efforts to curb plastic pollution, it opposes blanket regulations and lists of CoCs, advocating for a more flexible, risk-based approach that considers local socio-economic conditions. He warned that such lists could have a detrimental effect on South Africa’s economy and its burgeoning plastics-recycling industry.

Commitment to circular economy

Plastics SA reaffirms its commitment to supporting a circular economy, urging the design of products with recyclability in mind and the development of collection and recycling systems that allow for the highest quality recyclate. The organisation is also pushing for international treaties that promote

Tonnages recycled from 2011-2023.

Tonnages recycled 2024.

sustainable product design and public-private partnerships to boost waste management and recycling efforts.

Conclusion

“South Africa’s plastics industry continues to be a vital contributor to the Sub-Saharan economy, playing a significant role in the country’s sustainable development and the global fight against plastic pollution. The latest data highlights a thriving plastics recycling sector, with rising recycling rates and decreasing reliance on fossil fuels. This progress reflects growing awareness and support for recycling, driven in part by the efforts of Producer Responsibility Organisations (PROs). These positive trends are encouraging as we approach the INC-5 negotiations later this year. We applaud our raw material producers, converters, recyclers, product designers, brand owners and consumers who are collectively advancing South Africa’s recycling industry and achieving these notable milestones. Although there is still ample potential for further growth, we celebrate the active participation of all stakeholders in building a robust, sustainable recycling industry,” Hanekom concludes. For more information, visit www.plasticsinfo.co.za

Construction and property

Warehouses are doing well.

Rhenus Group has launched its new R440-million facility in Meadowview, Johannesburg. The 28 000m² warehouse has solar panels and rainwater harvesting and doubles the logistics company’s operational footprint in Gauteng.

The entrance of Amazon into the South African e-commerce market in May 2024 will have raised the expectations of property companies invested in warehouses. More conventional shopping patterns accounted for good results for Equites Property Fund, which looks after the wares of TFG, Spar and Shoprite, among other retailers. In the first six months of 2024, Equites spent R900-million on various projects, including at Jet Park, which is well located in relation to OR Tambo International Airport.

In 2024 Galetti Corporate Real Estate told Property that it had signed industrial leases valued at more than R2.8-billion in an 18-month period, citing the growth of e-commerce and the relative stability of the industrial commercial real estate class. This meant that space was being used both for manufacturing and storage.

Covid-19 provided a sharp shock for many business sectors, but with the move towards working from home accelerated by the pandemic, none is going to have to look harder at its models for sustainability than the office rental sector.

Logistics, often taken for granted in normal times, became an even more important component of the supply chain during the global lockdown and in the months that followed.

The Western Cape’s popularity among corporates was proven by the performance of Bidvest’s office unit in that province where a sharp rise in demand was recorded in the six months to December 2023.

Afrimat’s expansion continues apace. In 2024 it purchased Lafarge SA and its subsidiaries, giving it access to the cementextender market through fly-ash operations with the purchased grinding plant and cement kilns further expanding the company’s reach within the construction materials sector.

Post-1994 trends

One of the greatest differences between the society that existed under apartheid South Africa and the post-democratic dispensation is in the expansion of educational opportunities.

PHOTO: Rhenus Group

Office space in the Western Cape is scarce.

SECTOR INSIGHT

Afrimat continues to expand.

Several companies came into being to provide this new student population with accommodation at tertiary institutions. Stag African, which has built a substantial student housing project at the University of Fort Hare in the Eastern Cape, is active in three provinces. South Point has created a 1 195-bed complex in Braamfontein to go with no fewer than 15 other sites in Johannesburg and it is active in five other cities. Respublica offers rooms in six cities and there are several other companies.

The boom in building and developing student accommodation has been supported by the fact that many students are funded by the National Student Financial Aid Scheme (NSFAS), providing some security for investors in the sector. Controversies related to NSFAS have recently caused some concern, but demand remains strong.

TUHF is among the financing companies that provide funding for housing projects. In TUHF’s case, inner-city property investors are the focus of the company’s commercial property financing operations. This includes student accommodation and a township backyard rental finance product called uMaStandi which has recently been expanded.

Another aspect unique to post-apartheid South Africa is the awareness of environmental issues. A third green bond for the real estate investment trust (REIT) of Redefine Properties was oversubscribed when it went to market in August 2023. An amount of R1-billion has been allocated across three, five and seven years.

Redefine will use the bond financing to work towards decarbonisation of its portfolio through the reduction of energy consumption by making systems more efficient, collaboration with tenants and solar photovoltaic installations.

Green buildings are now considered mainstream in the construction industry, and star ratings from Green Building Council South Africa (GBCSA) are expected in commercial, industrial and residential projects. The bond was listed on the JSE in the Sustainability

ONLINE RESOURCES

Afrimat Construction Index: www.afrimat.co.za

Construction Industry Development Board: www.cidb.org.za

SA Reit Association: www.sareit.co.za

South African Property Owners Association: www.sapoa.org.za

Segment, a further sign that every sector is responding to the climate crisis.

Township landlords are to be integrated into the real estate sector by means of loans from provincial government that will allow them to invest in their properties and comply with regulations. The aboMastandi scheme has seen 40 loans (from 2 000 applications) approved so far.

The R300-million SA SMME Crisis Partnership Fund was launched in the Gauteng township of Tembisa in 2022. A collaboration between the Provincial Government of Gauteng, the Industrial Development Corporation (IDC) and the SA SME Fund intends to make financing available up to R1.5-million to SMMEs and to home owners wanting to upgrade their backyard rental accommodation.

Six intermediaries have been identified to find and fund entrepreneurs and rental properties that need working capital or asset finance. Indlu Living, one of the six companies, is already funding rental property upgrades, with the expectation that rental income will pay off the loan. ■

DESIG N AN D CONSTRUCTIO N O F ENERG Y INFRASTRUCTUR E

AMULET GROUP

Specialists in the design and construction of energy infrastructure.

DIRECTORS

Koali Motlomelo Pr Eng Civil (UCT)

Amulet Group, formerly known as Amulet Water, was founded in 2012 by a group of visionary engineers w ith a desire to bring innovation, professionalism and state-of-the-art infrastructure to the construction industry.

The company is led by highly experienced directors in the civil engineering infrastructure development industry.

DIVISIONS

• Consulting engineers

• Refurbishment

• Building construction

• Building renovation

Founding member and Managing Director who began his career as a process engineer specialising in modelling, designing and construction of WWTP and WTP infrastructure. He later ventured into civil infrastructure services such as water reticulation, sewer reticulation, roads and stormwater infrastructure design and implementation, servicing residential stands. His specialty is in leading multidisciplinary turnkey-type projects such as hospitals, residential and industrial developments, schools and community rehabilitation centres.

Teboho Moshapane BEng (UP) Industrial & Systems Engineering (UP)

Founding member and a director with vast experience in implementing various projects across all disciplines. He leads the Project Management arm of the company with his exceptional systematic, analytic and problem-solving skills. He specialises in implementing complex multi-disciplinary projects such as schools, residential and industrial developments, hospitals and community recreational centres, in record time.

PROJECT MANAGEMENT

We pride ourselves on our vast knowledge and experience in helping clients plan and estimate their project’s requirements, designs, budget, schedules, tasks and risks. We offer a complete quality assurance and test management with integrated release scheduling and milestone tracking.

Amulet’s highly skilled engineers’ wealth of experience handling multi-million rand projects enables essential planning and managing of today’s highly complex projects in a collaborative environment. Timely and efficient customer support is in place to build and maintain strong customer relationships and satisfaction.

Project-management services:

• Programme management

• Site management

• Cost estimates

• Site supervision

• Resource planning

PROJECTS WE HAVE COMPLETED

Ratanda and Heidelberg WWTW: Water-qualitymanagement report

Project: water-use licence application

Value: R150 000

Client: Erwat

Warden and Vrede WWTW

Project: development of operations and maintenance documentation

Value: R1-million

Client: Phumelela Local Municipality

Refurbishment of treatment works at Toitskraal, Siyabuswa

Project: process audits, civil design and implementation

Value: R3-million

Client: HMP Africa Consultants

Matla 2 and 3 mines WWTW

Project: process audits, wastewater treatment works

Value: R200 000

Client: Exxaro

Upgrading of Zeerust WWTW

Project: process design, civil design and supervision

Value: R68-million

Client: Renanao

Water-supply improvement at Mogale City

Local Municipality

Project: civil design implementation and supervision

Value: R2.75-million

Client: CSIR

Towns of Kinross and Charl Cilliers in Govan Mbeki Local Municipality

Project: construction and engineering of new developments

Value: R10.7-million

Client: Mpumalanga Department of Human Settlements

Soetwater and Karusa 400KV overhead-line foundations

Project: design and construction of overheadline foundations

Value: R67-million

Client: Consolidated Power Projects

Northern Corridor Hospitals: maintenance for OHS

Project: civil services and structural upgrade designs for 11 hospitals

Value: R850-million

Client: Kiwango Quantity Surveyors

Medupi Borutho Section B: overhead-line foundations

Project: design and construction of overhead-line foundations

Value: R267-million

Client: Consolidated Power Projects

Bulkwater infrastructure, Bushbuckridge

Project: bulkwater infrastructure

Value: R43-million

Client: Tiger Business Enterprise

Siyanqoba housing development, Emalahleni Local Municipality

Project: construction of bulk-sanitation infrastructure

Value: R43-million

Client: Tiger Business Enterprise

Integrated human settlements: Farm Piet Retief

Project: townhouses, flats, RDF dwellings, civils (roads, water and sewer) and electrical installations

Value: R1-billion

Client: Mpumalanga Department of Human Settlements

Turnkey development of 3 500 units, Mpumalanga

Project: project management, design and construction of engineering services

Value: R80-million

Client: Mpumalanga Department of Human Settlements

Extension of Fortuna WTW, Dipaleseng Local Municipality

Project: process design, civil design, implementation and supervision

Value: R200-million

Client: NFM Multi Consulting

Upscaling of Percy Stewart WWTW for biogas to electricity production

Project: civil design, implementation and supervision

Value: R45.8-million

Client: Tiger Business Enterprise

Berkeley new development, Bryanston

Project: construction of road intersection upgrade

Value: R7.3-million

Client: Berkeley Developments

Soweto infrastructure upgrade, Superblock 10

Project: project management, water-demand management, in-property plumbing, water infrastructure upgrades

Value: R54.5-million

Client: Lebaka Construction

Klipspruit WWTW, Mpumalanga

Project: capacity audit, process design, civil design and project management

Value: R180-million

Client: Isiphetu Water Services

159 of Farm Rondebosch No403, Steve

Tshwete Local Municipality

Project: integrated human settlement development: townhouses, flats, RDP homes; civils (roads, water and sewers), electrical installations

Value: R2-billion

Client: Mpumalanga Department of Human Settlements

Upgrading of Balfour WWTW, Dipaleseng Local Municipality

Project: design and implementation

Value: R81.5-million

Client: Rand Water

Ankerlig-Koeberg 400KV

overhead line, Western Cape

Project: construction of AnkerligKoeberg 400KV overhead line

Value: R78.5-million

Client: Eskom Rotek Industries

Sunninghill Estate, Sandton

Project: new development, construction of top structure of townhouses

Value: R20.8-million

Client: Civil Corp Engineers

Transnet Tippler 3 bulk-power upgrade

Project: construction of earthworks; building works; installation of medium-voltage equipment

Value: R493-million

Client: Transnet

CONTACT

Address: West Wing Building, Regus Business Centre, 6 Kikiyu Rd, Sunninghill, Sandton 2157

Tel: 011 202 5415 | Website: www.amulet-group.co.za

Telecommunications

A fibre merger has been blocked.

Aproposed merger between telecoms company Vodacom and fibre provider Maziv has been blocked. The two entities argued that joint investment would greatly boost access to fibre across the country. Vodacom had been hoping that the merger would help it reach rural connectivity targets to which it is committed in terms of its licence to operate.

The merger was first announced in 2021 but in 2023 the Competition Commission recommended that it not be allowed and the appeal was heard for the first time by the Competition Tribunal in May 2024. At the end of October 2024, the Tribunal announced that the appeal had been denied and the merger could not go ahead.

While some commentators criticised the decision to block the merger as a discouragement to investment, the Wireless Access Providers Association (WAPA) declared that it supported the Competition Tribunal. WAPA argued that a monopoly would have been against the best interests of rural South Africans who can just as easily be served by smaller operators.

Maziv is a Dark Fibre Africa company, which is owned by Community Investment Ventures Holdings (CIVH), a Remgro holding company. Vumatel is another operating company in the CIVH stable.

WAPA is a non-profit which aims to be a liaison between wireless Internet service providers (WISPs), ICASA, network operators, service providers and consumers. It offers information to members on regulations and technical training and lobbies on behalf of the sector.

Vodacom and MTN are the two biggest providers of mobile phone services in South Africa, with more than 70% of the market between them. Telkom and Cell C are the other two major operators.

The SA Connect project, intended to connect 5.8-million sites across South Africa to high-speed Internet by 2026, received an additional R3-billion in 2023 from National Treasury. The Department of Communications and Digital Technologies, the implementing entity, wants to see remote rural areas having better access to technology.

The world’s largest submarine cable system, 2Africa, pictured on the beach at Ysterfontein, has landed at different spots along South Africa’s coast. Engineering News reported four intended

SECTOR INSIGHT

New submarine cables are landing along South Africa’s coast.

landings in South Africa as part of 27 planned for all of Africa. The 2Africa consortium includes Vodafone, Bayobab (formerly MTN GlobalConnect), Orange, center3, China Mobile International, Meta, Telecom Egypt and WIOCC. A report has estimated that the cable’s economic continental impact will be between $26.2-billion and $36.9-billion, or between 0.42% and 0.58% of Africa’s existing GDP.

Independent Communications Authority of South Africa: www.icasa.org.za

State Information Technology Agency: www.sita.co.za

Wireless Access Providers Association: wapa.org.za ONLINE

In 2024 Telkom sold its tower company, Swiftnet, to Actis and Royal Bafokeng Holdings for R6.75billion. Anticipating increased traffic as use of data grows, Swiftnet currently has 3 699 towers (with a further 2 000 permitted) across South Africa. ■

Bayobab

PHOTO:

Skills training is vital for infrastructure.

The spotlight was firmly on training professionals to maintain infrastructure when the Platform of Vocational Excellence (PoVE) was launched at the Stellenbosch Institute for Advanced Study (STIAS) in 2024.

Part of a partnership between South Africa, through the Energy and Water Sector Education and Training Authority (EWSETA), and the EU, other partners are Stellenbosch University, the National Department of Water and Sanitation and Capricorn TVET College. Coinciding with the launch, a hackathon was held where South Africans were exposed to the experience of a range of PoVE water delegates from Latvia, the Netherlands, Germany, Estonia and the Czech Republic.

At another EWSETA event, a webinar on “Skills for a Water-Wise Future: Blending Innovation with Indigenous Wisdom”, solutions for sustainable water management was the main topic. A vital part of the discussion was the urgent need for reliable water access in rural communities, in the context of only 24% of people living in Sub-Saharan Africa have access to clean drinking water. The value of blending indigenous knowledge with cutting-edge technology was noted.

Financing for water and waste management is on the cards for Standard Bank, according to an executive of the bank who told the Sunday Times in November 2024 that it was likely that the model for financing business clients’ renewable energy requirements would be followed. Having made more than R2-billion available to more than 1 500 SMMEs in the energy sector, providing finance for water provision is the next logical step.

Places like the dry Northern Cape will increasingly be the focus as the earth warms and extreme events become more common. Innovative solutions such as powering water pumps by the boisterous movements of children on roundabouts are being explored.

Municipalities in the Northern Cape (as in many other provinces) have consistently struggled to supply good services to citizens. With the declaration of the entire province as a Priority Human Settlements Development Area by the National Department of Human Settlements, this situation could improve.

Another partnership between the public and private sectors will see the Vaalharts Irrigation Scheme revitalised, leading to greater

ONLINE RESOURCES

Energy and Water Sector Education and Training Authority: www.ewseta.org.za

National Department of Water and Sanitation: www.dws.gov.za Water Institute of South Africa: www.wisa.org.za

SECTOR INSIGHT

Banks are arranging financing for water supplies.

Children pump groundwater to the surface by playing on a PlayPump donated to DL Jansen Primary School in the Northern Cape by the Sumitomo Corporation. It was installed by Roundabout Water Solutions.

certainty for fresh produce producers, assistance for local municipalities in providing water to residents and a doubling of the amount of land available to emerging farmers.

The existing scheme is one of the largest irrigation schemes in the world, covering 39 000ha under irrigation, and extending it to Taung in the North West will give it even greater reach. The scheme currently has 1 000km of concretelined canals and more than 300km of concrete drainage. ■

The Rand Water story

New bonds and awards attest to the financial health and sustainability of the bulk-water utility which serves more than 18-million people.

Water is more than a resource; it is the lifeblood of humanity, underpinning health, sanitation and economic vitality. Rand Water’s efforts are to address the broader needs of an expanding population.

Creating lasting impact

Rand Water operates a sophisticated network of pumping and purification stations with an extensive regional pipeline network that stretches approximately 3 660km.

As cities swell and the demand for clean water surges, the need for resilient infrastructure and adept management of water resources has never been more urgent. Access to clean water is a fundamental constitutional right for every South African.

Rand Water is committed to providing a sustainable and dependable water supply for everyone. From cutting-edge water-purification plants and expansive reservoirs to efficient pump stations and advanced automation, the largest bulkwater utility in Africa, Rand Water, stands as a sentinel in the water supply and sanitation sector. The company is on a brilliance journey, making profound contributions to water management and service delivery, not just in South Africa, but across the African continent. Rand Water stands as a guiding light in addressing the urgent water needs of the region.

To make sure that the utility’s efforts are not in vain, attitudes and behaviours towards water usage must be reshaped to ensure that water is shared equitably. Engaging communities in water conservation, encouraging responsible practices and promoting awareness, fostering a culture of sustainability that benefits everyone, have never been more important. To assist in this process of transforming society’s interaction with water, Rand Water has launched several campaigns such as Water Wise, that aim to ignite awareness about the importance of valuing and conserving water resources. In addition, the Rand Water Communications Division chairs the Communicators Forum between the utility and municipalities and launched joint water conservation campaigns, in various channels, including community radio stations, South African Broadcasting Authority (SABC), e-TV and Newzroom Afrika, among others.

To grow and enhance delivery, operational integrity must be maintained. Rand Water is on a transformation journey to implement the bestfit technology to optimise its processes, as well as cultivating a high-performance culture that is crucial for fostering innovation and efficiency.

Visionary leadership

Under the visionary leadership of Sipho Mosai, the Group Chief Executive (GCE), and his talented and resilient executive team, Rand Water has garnered a global reputation for delivering water of the highest quality, consistently meeting and surpassing national and international standards. The bulkwater utility serves over 18-million people across four provinces, namely Gauteng, some parts of North West, Mpumalanga and the Free State, and spans an area of over 37 000km². Mosai and his executive team have enhanced operational efficiency while nurturing strategic partnerships and spearheading sustainability initiatives. This has positioned Rand Water as a force to be reckoned with and an

Sipho Mosai, Group Chief Executive, Rand Water

influential thought leader in the water sector. Mosai and his executive team understand that the success of Rand Water depends on upliftment of communities within Rand Water’s areas of operation.

Over the past five years, the entity’s corporate social responsibility and community development programmes that include skills development, job creation and the capacitation of SMMEs through the Rand Water Foundation and Socio-Economic Development Department. The department spearheads initiatives that go beyond water supply and tackle broader socio-economic challenges, aligning Rand Water’s goals with national development priorities.

Financial health and best-fit technology

The financial statements of the past five years show that the company prioritises maintaining financial health and sustainability. The company’s focus on maintaining financial health while investing in state-of-the-art technologies and infrastructure has yielded significant projects such as the construction of the biggest post-tension reservoir in Vlakfontein, Ekurhuleni (210-million litres) and the biggest purification plant since the dawn of democracy at 600-million litres-per-day at the Zuikerbosch Water Purification Plant.

Despite the economic downturn that South Africa and many other countries globally have been experiencing, Rand Water’s revenue grew by 11.4%, driven by cost-reflective tariffs and volume growth. Furthermore, there has been a gross income growth of 15.3% while maintaining a gross income margin above 30% year on year through a dedicated focus on cost efficiencies. This translates to a solid bottom line with net income growth of 29.0% in 2024 and a net income margin of 20.9%, further boosted by returns on strategic investments.

Mosai and his executive team have made immense effort to keep the utility’s financial profile strong amid economic challenges and a tough operating environment. In April 2021, Rand Water successfully redeemed the RW21 bond with a total nominal amount

of R1.6-billion and the RW23 bond in December 2023 at a nominal amount of R1.2-billion. The successful settlement of these bonds demonstrated Rand Water’s financial strength and financial stability. Rand Water’s financial sustainability was further attested by the issuance of three new bonds on 30 June 2021, in senior and sustainability-linked notes amounting to R1.7billion. These bonds attracted over R4.5-billion, a solid indication of confidence in Rand Water’s strength by the investor community.

The organisation was the first state-owned entity (SOE) to issue sustainability-linked bonds in Africa. In March 2022, Rand Water won the “Bonds, Loans & Sukuk Africa Awards” in relation to the sustainability-linked bonds. Rand Water has achieved all these within the premise of its strong set of values that underpin its commitment to delivering quality water.

Sipho Mosai – the man at the top of Rand Water’s success

Sipho Mosai has been the Group Chief Executive of Rand Water since 2019. Before becoming Group Chief Executive, Mosai was Rand Water’s Chief Operations Officer for 10 years. He has over 20 years of executive management and technical experience in bulk and distribution water operations, water infrastructure planning, maintenance, refurbishment and upgrade, project management, scientific services, strategic-asset management and sector growth and development in municipalities and various other organisations and water boards.

Mosai has served as a non-executive and board member in various institutions, including as Chair of the Human Resources Subcommittee and Chair of the Audit and Risk Committee of the Construction Industry Development Board (CIDB). Mosai holds the following qualifications: Bachelor of Science, Bachelor of Science with Honours (University of the North); Master of Science (University of the Free State); Post Graduate Diploma in Management (University of KwaZulu-Natal) and Master of Business Administration (MBA) (University of KwaZulu-Natal). ■

Transport and logistics

E-commerce is reshaping the delivery landscape.

Last-mile delivery solutions are being sought everywhere as e-commerce continues to grow. Some food retailers have backed old-fashioned motorbikes and some are powering their delivery trucks with electricity, but a Stellenbosch-based company is shaking up the sector with an electric three-wheeler that looks a bit like a taxi you might expect to see on a busy street in Hanoi.

MellowVans already has an impressive list of clients that includes DHL, DOCKR, OK Online, takealot, DPD and Spar. With a carrying capacity of 2 500 litres and a range of about 130km on a single charge, the vehicle offers versatility and low running costs. Although the company did not qualify to be part of the country’s automotive industry support programme because it does not produce in sufficiently high volumes, export markets have opened up in Europe, Egypt and the Middle East.

With the Post Office barely functioning, a rising trend in South African has been the growth of parcel-delivery options. A plethora of companies have sprung up to join the established DHL, DSV, PostNet and RAM Hand-to-Hand Couriers, which runs a fleet of 1 600 vehicles. These include Pargo, which has more than 4 000 pickup points around the country, The Courier Guy and D2D. Some companies have taken space in service stations to place dedicated lockers for the delivery and collection of parcels.

Transnet received a loan of R18.2-billion from the African Development Bank in the course of 2024, a signal from the world of finance that efforts to fix the state-owned logistics and freight company are credible. The cost to fix Transnet Freight Rail has been estimated

Transnet Freight Rail is carrying more cargo.

at between R150-billion and R200-billion so there is still some distance to go but a Freight Logistics Roadmap and other planning initiatives suggest that the state and the company are serious in their intent.

The CEO of the African Rail Industry Association (ARIA), Mesela Nhlapo, has praised the utility for the “open and transparent manner in which it is managing the rail-reform process”. A recovery plan was adopted in October 2023 and by November 2024 freight volumes had grown by four-million tons with the aim of reaching 170Mt by the end of the 2023/24 financial year.

Revitalising and getting value out of under-used or defunct branch lines, which often used to be the only way of getting a commodity out of a farming or mining district, will be a key indicator of progress. The first round of attempting to get the private sector to invest floundered so getting it right second time around will be especially important.

South Africa has 22 000km of railway lines and 747 000km of roads, 325 019 heavy-load vehicles and the road freight industry employs 65 000 drivers. There are 135 licensed airports in the country, 10 of which have international status. The South African Department of Transport

PHOTO: MellowVans

SECTOR INSIGHT

Electric delivery vehicles are being exported from Stellenbosch.

has several agencies and businesses reporting to it. Among them are 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), South African National Roads Agency Limited (SANRAL) and Passenger Rail Agency of SA (PRASA).

Planning is key

In the Western Cape, the administrations in charge of the City of Cape Town and the province have plans to better coordinate transport. The City of Cape Town has conducted a feasibility study on taking over the management of passenger rail services from PRASA. The city wants to have a fullyintegrated system, which would include rail. The city’s Urban Mobility Directorate published an updated Comprehensive Integrated Transport Plan (CITP), and has strategies and plans for improving the transport environment in the metropole. The Transport and Urban Development Authority (TDA), located within the municipality, is responsible for planning, costing, contracting, regulating, monitoring, evaluating, communicating, managing and maintaining the City of Cape Town’s transport infrastructure, systems, operations, facilities and network. The provincial government has followed the city’s lead with the establishment of a Mobility Department.

Large amounts of money are to be spent on various forms of public transport in the short term. Investments in rapid transit systems in the big metropolitan areas such as Johannesburg are being followed by cities such as Polokwane and Rustenburg. In Limpopo’s provincial capital of Polokwane, operations of the Leeto La Polokwane public transport system were launched in 2021 while Johannesburg’s Rea Vaya has been running since 2009.

There are plans to make more use of Hoedspruit Airport, the airport that is most often associated with the Orpen Gate of the Kruger National Park. In 2022, 61 000 of the people who passed through Hoedspruit were European tourists but there is potential to increase this traffic substantially. CemAir offers flights to Johannesburg and Cape Town and Airlink connects to destinations such as the Victoria Falls in Zimbabwe, Maun in Botswana and Vilanculo in Mozambique. The Limpopo Department of Transport and Community Safety is working on a strategy to develop the airport to further boost the tourism sector.The Polokwane International Airport (PIA) is wholly owned by the provincial government and run by the Gateway Airports Authority Ltd (GAAL), an agency of the Department of Transport. It has the potential to be an important regional cargo airport. ■

African Rail Infrastructure Association (ARIA): www.aria.org.za

Airlines Association of Southern Africa: www.aasa.za.net

South African Heavy Haul Association: www.saheavyhaul.co.za

Gateway Airports Authority Limited

Profiles of directors of the board of Gateway Airports Authority Limited (GAAL), the entity that is responsible for Polokwane International Airport.

Victor Xaba: Chairperson of the Board

Victor Xaba is a highly accomplished professional with extensive experience within the defence, aerospace, aviation and advanced manufacturing sectors. He holds a BTech in Quality Management, a National Diploma in Chemical Engineering and a Diploma in Advanced Project Management. Having held various technical and senior managerial positions, and with experience in strategic management, governance, businessprocess re-engineering and project management, he is well equipped to provide strategic leadership to the GAAL Board to steer the entity towards growth.

Mr Xaba brings well-rounded technical expertise and aviation experience to the table, which is essential for the complex operations of Polokwane International Airport. He serves as the Chairperson of the Board and NOMCO, a role he has held since April 2021, with his leadership term extending through to September 2025. In this capacity, he plays a pivotal role in driving organisational excellence and overseeing strategic initiatives. With a keen eye for quality assurance and a proven track record in project management, Mr Xaba continues to make significant contributions, ensuring that both operational and project outcomes meet the highest standards.

Elia Ramutanda

Elia Ramutanda is an accomplished and experienced Aircraft Fleet Specialist. He holds a BCom Honours in Transport Economics and a National Technical Diploma in Mechanical Engineering. His expertise in economics and engineering, plus 27 years in aviation, positions him as a well-rounded leader to contribute positively to the GAAL Board and to Polokwane International Airport.

Mr Ramutanda serves as a Member of BOOC, a position he has held since April 2021. His versatile

academic and technical background brings invaluable insights into the organisation’s decisionmaking, compliance to industry regulations and latest trends in airport operations, ensuring that the airport thrives in a competitive landscape.

Ngoako Mangena

Ngoako Mangena is a dynamic and accomplished professional with diverse expertise in administration and industrial psychology. He holds a B-Admin Honours in Industrial Psychology, providing him with a solid foundation in both organisational development and human-resources management.

Mr Mangena serves as a member of multiple committees including RHEMCO, NOMCO and BARC, where he has been actively involved since April 2021. With a passion for improving workplace dynamics and enhancing employee well-being, Mr Ngoako Mangena is dedicated to fostering growth, development and effective leadership.

Sekadi Phayane-Shakhane

Sekadi Phayane-Shakhane is an accomplished engineer with a strong academic foundation and specialised expertise in civil engineering.

She holds a BSc in Civil Engineering and a Master of Engineering in Transport Studies, equipping her with the technical skills and knowledge to contribute significantly to infrastructure and transport development.

Ms Phayane-Shakhane serves as a Chairperson of RHEMCO and a member of BOOC, since April 2021. In these roles, she leverages her engineering

KEY

RHEMCO: Remuneration, Human Resource, Social and Ethics Committee

BOOC: Business Opportunities And Operations Committee

NOMCO: Nominations Committee

BARC: Board Audit Risk Committee

background to provide strategic guidance, ensuring that organisations that she serves meet their goals efficiently and effectively in the ever-evolving sectors of civil engineering and transport.

With a focus on sustainable development and innovative solutions, Ms Phayane-Shakhane continues to make impactful contributions to the advancement of infrastructure and transport systems, underscoring her commitment to excellence in her field.

Advocate Edward Nkhangelweni Lambani

Adv Edward Nkhangelweni Lambani is a distinguished legal professional with extensive expertise in corporate and commercial law. He holds an LLM in Property Law and another LLM in Administrative and Municipal Law obtained distinction, LLB, and BProc, alongside advanced diplomas in Company Law and Close Corporation Law. His profound knowledge and experience in these fields have established him as a key figure in the legal community.

Currently, Edward serves as a Board Member and the Chairperson of BOOC. He is also a Member of the NOMCO, contributing valuable insights and leadership to both roles. Adv Edward Nkhangelweni Lambani is known for his strategic legal acumen, leadership abilities and commitment to upholding the highest standards of corporate governance. His dedication to enhancing legal practices and promoting ethical business conduct makes him a respected figure in both the legal and corporate sectors.

Salome Mabilane

Salome Mabilane is a highly skilled financial professional with a strong academic foundation in cost and management accounting and information systems. She holds a BTech Degree in Cost and Management Accounting, along with a Certificate in Information Systems and Technology. She pursued a B-Compt Accounting for three years (non-degree purposes), further strengthening her expertise in financial management and accounting practices.

management and governance, she has become a key decision-maker in her roles. Her passion for ensuring effective financial oversight and operational efficiency has made her an invaluable asset to the Board and committees she serves. Her commitment to excellence and ethical leadership continues to make a positive impact in her field.

Dr Natalie Skeepers

Dr Natalie Skeepers is a highly accomplished professional with a strong academic background in health, safety and environmental management. She holds a PhD and an MPhil, as well as a Master’s degree in Health and Safety Environment. Her academic achievements and extensive expertise in her field have positioned her as a leading authority in promoting safe and sustainable practices across industries.

Dr Skeepers serves as a member of RHEMCO and BOOC. With a commitment to improving organisational health and safety standards, Dr Skeepers plays a pivotal role in shaping policies and initiatives that safeguard both people and the environment. Her leadership and in-depth knowledge make her an invaluable contributor to the strategic decision-making processes within her roles. Dr Skeepers’ dedication to advancing health, safety and environmental goals continues to drive positive change in the sectors she serves.

Suren Maharaj

Ms Mabilan currently serves as a Board Member, the Chairperson of BARC and a member of RHEMCO. With her deep understanding of financial strategy, risk

Suren Maharaj is a qualified Chartered Accountant with extensive qualifications in Business Administration and Accounting. He holds a Master’s in Business Administration (MBA), a BCom degree and an Honours B-Compt degree. Mr Maharaj’s diverse academic background, combined with his professional expertise has made him a trusted expert in financial management, strategy and governance.

He serves as a member of BARC and BOOC. With a strong focus on financial oversight, corporate governance and risk management, Mr Maharaj plays a key role in shaping the financial and operational strategies of the organisations he supports. His deep understanding of accounting principles, combined with his leadership skills, makes him an invaluable asset to the board and committees he serves on. Suren continues to drive value through his commitment to excellence and strategic insight in the financial sector. ■

Amazon.co.za has arrived in South Africa.

With e-commerce having been turbo-charged by the Covid epidemic, online sales increased to R30-billion in 2020, a rise of 66% over the previous year (ITA). This reached R71-billion in 2023, according to a World Wide Worx report.

Clothing and groceries are the biggest sellers, with most supermarkets having aggressively rolled out delivery apps, resulting in the resurrection of the buzzing 50cc motorbike in many neighbourhoods. In May 2024 Amazon launched its online shopping experience, offering 20 product categories and 3 000 pickup points.

Among the leaders in e-commerce are Takealot, Shein and Bash, the platform of TFG, formerly known as The Foschini Group. More than 500 brands can be purchased using TFGMoney, a bank account created with TymeBank. Other successful e-commerce retail operations include Sixty60 (Checkers), Massmart (Makro, Game and Builders) and the JD Group (Everyshop).

TFG is building a 75 000m² distribution centre in Gauteng with the intention of delivering 70% of all its online sales, and all of its fashion items, through that single site.

As South Africa joins the global trend towards online shopping, data centres are going up all over the country. The latest to join the trend is software company Oracle which has chosen Johannesburg as the headquarters of its African cloud region. All of the company’s cloud regions (data centres) worldwide will be 100% powered by renewable energy by 2025. Teraco stores data in Johannesburg, Durban and Cape

Business Process Enabling SA: www.bpesa.org.za Independent Communications Authority: www.icasa.org.za Technology Innovation Agency: www.tia.org.za

SECTOR INSIGHT

Old Mutual’s new bank will be “digital-first”.

Town while Africa Data Centre (ADC), part of the Liquid Telecom Group, has purchased a Tier IV data centre in Johannesburg.

Oracle has announced an interconnect service between itself and Microsoft Azure data centres. This allows customers of both companies to export data from one to the other at no cost. The companies are competing with Google Cloud and Amazon Web Services (AWS), among others.

AWS announced at the 2023 South African Investment Conference that its investment plan for South Africa to the end of 2029 amounts to R46-billion. By the end of 2022, R15.6-billion had already been invested. The AWS Africa Region was created in 2020 when AWS opened a data centre in Cape Town.

The Reserve Bank is speeding up EFTs between banks with the introduction of a Rapid Payments Programme. Bank Zero not only uses biometric authentication for logging in, but offers zero-cost banking.

Old Mutual is now far advanced in rolling out its newly approved bank. The CEO of Old Mutual, Iain Williamson, told the Sunday Times that the bank would be a “digital-first offering” where a “cleverly and intelligently designed app” will be the centrepiece of interactions. ■

South Africans have more e-commerce choices than ever.

Tourism

Events tourism is making a comeback.

On its 20th birthday in 2023, the Cape Town International Convention Centre celebrated having hosted more than 9 000 events, with 700 of those being international events.

In the five years to 2029, South Africa will host 25 big international events. According to the South African National Convention Bureau, the conferences and exhibitions will generate about R240-million to add to the national economy. The successful bids were achieved out of a total of 48 bid submissions that were made, less than half the number of bids that were made in 2021, the year before Covid hit. In that year South Africa made 119 bids, of which 58 were successful.

South Africa won top spot for meetings and conference destinations in the Middle East and Africa region in the 2023 rankings published by the International Congress and Convention Association (ICCA). In that year, the country hosted 98 international events that met the criteria set by the ICCA, and these had an estimated economic impact of R2-billion.

Between January and May 2024, 3.8-million tourists visited South Africa, an increase of nearly 10% over the comparable period a year before. Total foreign-direct spend went up in 2023/24 to R95.1-billion, an increase of 27.5%, and the total combined contribution of tourism to GDP was calculated to be R458.9-billion in 2023.

Sun International’s bid to purchase Peermont, owner of Emperors Palace, is being resisted by the Competition Commission which will recommend to the Competition Tribunal that the merger be blocked. The proposed purchase, for R7.3-billion, would combine the 11 casino complexes of Sun International with the eight run by Peermont.

Another hotel matter is being decided in the South Gauteng High Court in Johannesburg. A minority shareholder in Legacy Hotels is trying

African Business Travel Association: www.abta.co.za

South African National Parks: www.sanparks.co.za

South African Tourism: www.southafrica.net

SECTOR INSIGHT

Sun International’s bid for Peermont is opposed.

to buy it, stating that relations between itself and the majority shareholders have irrevocably broken down. What makes the conflict rather more interesting than an ordinary commercial dispute is that the bid is coming from Ensemble Hotel Holdings, a subsidiary of Libya’s sovereign wealth fund. Two investment vehicles controlled by South African hotelier Bart Dorrestein hold the majority of shares in Legacy Hotels, which includes The Leonardo, Michaelangelo Hotel and Michaelangelo Towers, DaVinci Penthouse Suites, The Portswood Hotel, four lodges in the Pilanesberg and two in the Kruger National Park in its 17-property portfolio.

South African National Parks (SANParks), which runs nearly 70% of South Africa’s 509 state and protected areas, has a number of public-private partnerships (PPPs) and has held an investment summit to showcase a further 100 opportunities in 12 national parks. There are currently 60 PPPs in operation in South Africa.

There are 711 745 people employed in the tourism industry nationally, 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). ■

Development finance and SMME support

Corporations encourage small-business suppliers.

Glencore hosts a Vendor Open Day in eastern Limpopo every year. The event, pictured, is a big occasion that is eagerly anticipated by small-business owners in the area.

Large South African companies typically look to support small businesses (and in some cases help to create companies) by subcontracting parcels of work to entrepreneurs or small local enterprises. Support is delivered through two main programmes: enterprise development (ED) and local supplier development (or procurement).

Glencore Ferroalloys Eastern Limb operations actively seeks out small businesses that can participate in the company’s supply chain and the annual event gives the community a chance to hear what the minimum requirements are to become a supplier and what current opportunities are available. Topics included procurement processes, supplier registration and news about various training programmes that are available to assist local businesses through the enterprise development programmes of Glencore’s two divisions, Glencore Coal and Glencore Ferroalloys. Glencore also supports an annual prize for promising young entrepreneurs who are making an impact in their communities.

In another part of Limpopo, the South African National Roads Agency SOC Limited (SANRAL) held a “Taking SANRAL to the People” stakeholder engagement session with residents and businesses of the Greater Giyani Local Municipality, another example of a large company running an information session about opportunities for locals. In this case, the

There are opportunities for SMMEs in road-building.

projects included upgrades to provincial and national roads in the area and a number of routine maintenance projects. It is part of SANRAL’s policy to support SMMEs which it does by routinely awarding contracts for maintenance and other services.

One the country’s biggest institutional investors is the Industrial Development Corporation (IDC). Apart from taking stakes in large companies in sectors like steel and agriculture that have strategic significance, the IDC has a product called SME Connect. A collaborative model sees the IDC provide funding and business support while a corporate might guarantee to buy goods or services from the small business operator.

The increased number and scope of the Business Day Supplier Development Awards gives an indication of how developed this aspect of support for small enterprise has become in the South African business community. Through the Spar Rural Hub, the retail group supports small-scale farmers and creates markets for their products. The Spar Group has established The Spar Academy of Learning where learnerships

SECTOR INSIGHT

PHOTO: Glencore

Entrepreneur Bongani Maphanga of Tukakgomo in Limpopo works hard at repairing and supplying school children with sturdy shoes. His initiative earned him a cash prize as a youth entrepreneur, which he hopes to use to create more jobs.

and skills programmes are offered. This is to support the business owners who take up the ownership model offered by Spar, which, unlike the franchise model, means that independent retailers have more independence when it comes to decisions within the store and in terms of who to buy from.

Funds and schemes

In 2023 the SA SME Fund set up its third fund, a dedicated venture capital fund. The first close was reached with a figure of R700-million, achieved with some support from the pension fund sector. The SA SME Fund is a fund of funds, investing in fund managers who will support startups and new ventures, rather than itself investing in projects. It was established with the support of 50 of South Africa’s biggest companies and its first fund had a broad remit, which included fintech, biotech and supporting universities in turning research into business ventures. The focus of the second fund was debt funding.

As Hilary Joffe pointed out in Business Day, South Africa “ranks only fourth in Africa” in venture capital, despite a strong private equity industry. Joffe cited the SA Venture Capital Association, which reported that in 2021, the venture capital industry invested R1.3-billion in 129 startups.

In the North West, the Provincial Government is investing in digital infrastructure. SMMEs will be able to use the Mafikeng Digital Innovation Hub as a co-working environment and to get support in using digital tools. In Rustenburg Impala Rustenburg has invested R8.6-million in the development of an Economic Inclusion Centre that serves as a small

ONLINE RESOURCES

Business Day Supplier Development Awards: www.sdawards.co.za

Industrial Development Corporation of South Africa: www.idc.co.za

National Department of Small Business Development: www.dsbd.gov.za

Small Business Institute: www.smallbusinessinstitute.co.za

business hub for SMMEs in and around the mining community. Apart from the physical facilities on offer, advice on market access and funding is also available.

Part of the rationale behind a national programme to revive industrial parks is to benefit SMMEs. The National Department of Trade, Industry and Competition (the dtic) has invested R40-million in the Nkowankowa Industrial Park in Limpopo, an initiative which has helped to create 174 direct jobs. In the northern reaches of the province, more than 300 jobs have been created with the revitalisation of the Thohoyandou Industrial Park, which has achieved a 91% occupancy rate.

The dtic is trying to stimulate township and rural economies through programmes such as the Enterprise Investment Programme (EIP). The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. The Small Enterprise Development Agency (Seda), a subsidiary of the DSBD, has 42 incubation centres under its Seda Technology Programme (STP).

In Mpumalanga, Seda supports several incubators: Furntech, furniture manufacturing, White River; Mobile Agro-Skills Development & Training, agricultural training, Nelspruit;Mpumalanga Stainless Initiative (MSI), stainless-steel processing, Middelburg (with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator Renewable Technologies, Nelspruit. ■

Gateway to market access

UWC and Sanlam have transformed an old Post Office for community entrepreneurs.

How do you leapfrog from a communitybased operation to a CBD marketplace?

The sustainability of any business is built on the premise of a strong network and the promise of access to market. Community businesses lack the necessary network connections to leverage trade opportunities in the CBD.

Market access comes at a premium. We have all heard the narrative that small businesses are the fuel of the economy, the engine that will revitalise the economy. The National Development Plan (NDP) envisions a South Africa where small and medium enterprises (SMMEs) are at the epicentre of economic development.

The ailing South African Post Office in Sanlamhof at 4 Strand Street, located next to the Sanlam Head Office, served the Bellville and surrounding communities for decades. Although there is no replacement for the fond memories of receiving a handwritten letter or a parcel, the community is now invited to support a somewhat different service: the University of the Western Cape (UWC) Trading

Incubator at Sanlam, thanks to the visionary and collaborative leadership of these two parties.

The Incubator will house businesses such as Silulo Ulutho Technologies, Brown Girl Creations and CorpChem Chemicals, each bringing unique products and services to the community. This collaboration between UWC and Sanlam is set to play a pivotal role in job creation, innovation and community upliftment, marking a significant step towards economic empowerment for township businesses.

UWC Sanlam partnership

At the heart of the UWC Sanlam partnership is providing of hope and a hand-up for SMMEs to remain a beacon of hope for the youth in communities who aspire to become entrepreneurs. This partnership aligns with UWC motto, "A place of quality, a place to grow. From hope to action through knowledge".

This impactful initiative seeks to provide a solution to the challenges often faced by SMMEs. In addition to market access, it provides businesses affordable trading spaces, expert coaching and regular networking events, positioning them for long-term success.

The University of the Western Cape is committed to building an equitable and dynamic society. The establishment of the Centre for Entrepreneurship and Innovation (CEI) in 2012 was an extension of the UWC mission to contribute to the triple challenges of unemployment, poverty and income inequality. Over a 10-year period the CEI has positioned itself as an expert provider of cutting-edge business development support and customised mentoring and coaching support during and after incubation. The Trading Incubator is unique as the first initiative of its kind linked to a university solely focussed on providing a gateway to market access and wraparound support for community SMMEs.

Growing an inclusive economy

The Incubator is part of UWC’s broader mission

SMMEs have access to Market Day.

to stimulate inclusive economic growth. It targets financial inclusion across gender, race and age, with a special focus on black-owned businesses.

Manie Regal, UWC’s executive director of finance, adds: “This Incubator is not just about boosting small businesses, it’s about creating a path to economic empowerment for marginalised communities. By giving community businesses access to trading spaces in Bellville, we are also contributing to the revitalisation of the area, fostering a more inclusive and vibrant economy.”

Paul Hanratty, CEO of Sanlam, says, “SMMEs are vital to driving sustainable job creation in South Africa. Through the Incubator, we are not only providing community businesses with access to markets but also contributing to the future growth of our economy.”

Community entrepreneurs

The first cohort consists of nine township-based businesses, of which four are woman-owned businesses. It covers a range of industries such as Internet cafe, African clothing, home decor, fashion accessories, rustic furniture, beds and biltong. The entrepreneurs pay a developmental rental of R50 per square metre. Since the launch, the resident entrepreneurs have exhibited their products at the Bellville Business Expo (17-18 October) which was held at Tygervalley Shopping Centre. They were also given access to Sanlam’s monthly Market Day.

Call to action

Corporate South Africa and the public sector need to join forces to ignite a new dawn to restore dignified livelihoods for all South Africans.

South Africa needs more incubators linked to universities if the SMME sector is going to reach its potential in driving job creation and economic growth. UWC has built up a blueprint over a decade to support the growth of both business and personal leadership skills of township SMMEs.

Sanlam has been generous in its support, providing the facility at zero rental, plus covering additional overheads such as monthly security and cleaning costs.

Sanlam also covered all the refurbishment costs as well as the painting and branding to creatively repurpose the post office. The CEI is responsible for

and Sanlam leadership at the launch of the initiative on 8 October 2024.

managing the Incubator, monitoring and tracking impact and organising monthly networking sessions. Hanratty adds, “We call on corporate South Africa to join us in supporting SMEs. Through shared resources, mentorship and access to markets, we can ensure that our entrepreneurs succeed and contribute to South Africa’s economic future. Now is the time for the private sector to step up and be part of the solution.”

ABOUT THE CEI

The CEI specialises in community and youth entrepreneurship projects. Targeted and transformative projects include the Fellows leadership and mentoring programme, the Master Builders Contractors project and Digital Skills. Youth projects focus on nurturing the next generation of innovators. As the 2024 Enactus National Champions, the Enactus UWC team proudly represented South Africa at the prestigious 2024 Enactus World Cup.

For more information Klamani@uwc.ac.za

UWC

Education and skills training

Funding solutions are under discussion.

One of the great success stories of the new, democratic South Africa is the extension of opportunities in higher education to much greater numbers of young people.

The funding of this admirable achievement has been less of a success story. In 2015 matters came to a head when students protested against rising tertiary fees under the slogan #FeesMustFall. The National Student Financial Aid Scheme (NSFAS) was set up in the early 2000s to support students at tertiary institutions, but administrative weaknesses often led to institutions or rental properties not receiving promised funds. After alleged malpractice, the Minister of Higher Education, Science and Innovation announced in 2024 that the NSFAS board was suspended and the funding body was placed under administration.

According to Mala Suriah, the CEO of student-loan provider Fundi, more than half-a-million South African students were in debt to tertiary institutions in 2024, with 155 000 of those not being allowed to graduate until their fees were paid. Fundi offers to grant a loan to pay off the debt so that the student can start earning wages, which they can then use to pay off the debt.

Efforts are being made to provide solutions, including the first National Summit of Higher Education Funding which was hosted in October 2024 by Unisa Enterprise, a subsidiary of the University of South Africa (UNISA). Among the activities at the summit were panel discussions on pathways to financial stability, pictured, and speeches from experts drawn from industry, academia and

SECTOR INSIGHT

Business leaders want relevant skills training.

government. The need for academia and industry to work together in addressing youth unemployment and fostering entrepreneurship was stressed.

A number of colleges and universities in South Africa offer courses in entrepreneurship and business management. The Centre for Entrepreneurship and Innovation (CEI) at the University of the Western Cape encourages entrepreneurship across faculties and actively works to provide opportunities for students to market their products. Allan Gray Makers sponsors a competition known as the National TVET Entrepreneurship Inter-College. In 2024 cash prizes worth more than R120 000 were available.

Relevant skills

However, not everyone can be a business owner and for many policy influencers and corporate leaders, it is more important to ensure that the skills training available to young South Africans is relevant to the workplace.

The CEO of Business Leadership South Africa (BLSA), Busisiwe Mavuso, was unequivocal in a Sunday Times article in June 2024: “The quality and skills of the learners produced by South

Africa’s educational system are misaligned to business needs.” In this context, “workplace exposure, on-thejob learning and apprenticeships have significant and positive outcomes for youth”, she continued. Mavuso pointed to three steps that could create jobs for young people. She referenced the “concerted mobilisation” between government and business which is:

• Optimising existing programmes such as Youth Employment Services (YES) and SA Youth (a Harambee programme)

• Running skills programmes for priority growth areas that have potential for young people in sectors such as renewable energy, ICT, global business services, tourism, mining and beneficiation, agriculture, agro-processing and automotive

• Spending more on supporting SMMEs and township businesses to enable them to grow and thus employ more people

There are many organisations working to deliver relevant skills to young South Africans. One of them is the Chemical Industries Education and Training Authority (CHIETA), which is ensuring that South Africa’s nascent hydrogen economy will have a workforce able to cope with the complex demands of that industry.

Another problem being addressed by CHIETA is the fact that only 13% of rural households have access to the Internet (StatsSA). The widening digital divide is a problem the training body aims to solve with its SMART Skills Centres, one of which opened in Modjajiskloof, Limpopo Province, in 2024.

The CHIETA SMART Skills Centre is intended as much more than a computer centre and will provide the surrounding communities with 20 private Internet training pods for community members to gain access to digital courses

ONLINE RESOURCES

National Department of Science and Innovation: www.dst.gov.za

National Department of Higher Education and Training: www.dhet.gov.za

STEMulator: stemulator.org

TVET colleges: www.tvetcolleges.co.za

Virtual reality came to rural Modjajiskloof in 2024, courtesy of the new CHIETA SMART Skills Centre.

online or apply for a job, free data and unlimited access to the Internet. SMMEs are encouraged to learn new skills and a SMART Board is available for SMMEs and co-operatives for planning and trading. Six centres have been opened in rural South Africa since October 2022 and CHIETA plans for each province to have one by mid-2025.

The Department of Higher Education and Training has set targets for skilled graduates and established Centres of Specialisation at TVET colleges around the country. For example, ORBIT TVET College in the North West offers diesel mechanic training at its Mankwe campus and electrical training at Brits as part of the Centre of Specialisation programme. Centres of Specialisation aim to produce:

• A skilled and capable workforce

• Increased availability of intermediate-level technical skills

• Increased delivery of qualified artisans in 13 priority trades

A range of online or digital courses are being offered in an attempt to broaden access. Mobile telephone provider Vodacom has teamed up with online education provider, Upskillist, to offer more than 80 online courses in everything from coding to project management. Linked to Vodacom’s rewards programme, the offering has gone past one-million activations.

In 2024 the National Science and Technology Forum (NSTF) launched the latest version of STEMulator, a free virtual platform designed to spark interest in Science, Technology, Engineering and Mathematics (STEM). An immersive experience helps young people connect their interests to realworld applications. ■

PHOTO: CHIETA

Banking and financial services

Yet more banks are being established.

The broadening of the South African financial services sector which began with the formation of Capitec in 2001 continues. Despite the South African economy not growing particularly strongly, the banking sector is offering good returns.

Since the date of Capitec’s launch, a number of digital banks (Bank Zero, Discovery Bank and TymeBank) have entered the South African market, often tied to retail chains such as Pick n Pay as a means of making terminals easily accessible for customers. In 2024 two new licences were approved: a mutual banking licence was granted to Young Women in Business Network (YWBN) and Old Mutual received the green light to start offering full banking services.

Capitec itself has grown in leaps and bounds and is now targeting international expansion. Through Avafin, an online consumer-loan product, the company already has a presence in four European countries and Mexico. The group also offers funeral insurance and other services such as prepaid data and airtime through Capitec Connect.

The Bidvest Group has decided to sell Bidvest Bank and FinGlobal. A potential buyer is the resuscitated African Bank, which acquired Grindrod Bank in 2022 and Sasfin Bank in 2023.

Finbond, Santova and PBT became the first companies to have their securities traded on the “general” segment of the main board of the JSE in 2024. Designed to attract smaller-cap companies

SECTOR INSIGHT

with fewer administrative requirements and lower costs, the new section sits alongside the existing “prime” segment where larger corporations’ shares are housed. In 2003 the JSE tried to attract smaller listings through its alternative exchange, AltX, but that did not prove popular. The JSE hopes that the new segment will reverse the trend of delistings of the past few years.

Another step to counter the trend is to offer new products such as the JSE Ventures Voluntary Carbon Market. JSE Ventures is collaborating with US company Xpansiv, which has experience in global environmental markets. South Africa has had carbon taxes since 2019.

Institute of South Africa: www.iisa.co.za South African Institute of Chartered Accountants: www.saica.co.za

One of South Africa’s newer stock exchanges, the Cape Town Stock Exchange (which started life as 4AX), has overseen the listing of an initial tranche of preference shares of the Gaia Renewables REIT, a fund that caters to investors who want to have a stake in the burgeoning renewable energy economy. It is expected that more investors will want to be part of a sector that is showing enormous potential. ■

The main board of the JSE has a new segment.

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