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Alternative energy fund launched

Keeping the lights on is a priority for business owners. Credit: Nathalia Rosa on Unsplash

According to data published by the South African Reserve Bank, the accumulative loss of Stage Six loadshedding amounts to between R204-million to R900-million per day.

A proportion of these losses are incurred by the thousands of small businesses who simply do not have the resources to install back-up sources of energy to continue operations during power cuts.

In a bid to provide business owners with much-needed relief and finance to invest in viable alternatives, Business Partners Limited has launched a R400-million Energy Fund for small to medium-sized enterprises (SMEs).

Loans from the Energy Fund for SMEs can be used for the purpose of purchasing alternative energy solutions such as solar systems, back-up batteries and inverter systems, diesel-powered generators as well as other energy generation-related products.

Commenting on why the time is now right for small businesses to invest in alternative energy systems is Jeremy Lang, Executive Director and Chief Investment Officer at Business Partners Limited. As he suggests: “While the ongoing energy crisis presents many uncertainties, one thing we do know is that loadshedding will continue to be a reality for the foreseeable future.

“South African businesses need to mitigate this risk by decreasing their reliance on the national grid and start investing in systems that will provide a consistent and reliable source of power. Not only will this be a vital contributing factor to business continuity, but it will also bring small businesses one step closer to realising their sustainability goals.”

The need in numbers

In the Q4 2022 SME Index, a quarterly survey conducted by Business Partners Limited, SMEs were asked whether they have the necessary funds to invest in energy solutions such as generators, inverters and solar-powered systems. A total of 35% of respondents revealed that they have budgeted for this investment and 37% reported that plans to divert to alternative-energy systems were being put in place.

Unfortunately, about 30% of small businesses said that they cannot afford the large outlay required to make this investment.

Jeremy Lang, Business Partners Limited Executive Director

“These findings are a strong indicator of a dire and urgent need that exists within the SME sector,” says Lang. “Small businesses have been impacted by power cuts in a number of ways including loss of output, increased overheads, additional capital expenditure, operational challenges and supply chain disruptions. Ultimately these consequences result in turnover reduction, margin shrinkage and long-term financial distress.

What we also need to realise is that the intermittent return of power doesn’t always mean an immediate return to business as usual. This is particularly true for SMEs who run manufacturing plants. Some machinery takes an hour or two to warm up and become fully operational.”

This is compounded by the need to clean machines when the energy supply is cut off and raw materials are wasted. In the case of Stage Six loadshedding, getting up and running after a power cut only to face another blackout a mere two hours later can have devastating effects on business operations. Finding ways to access a reliable energy supply is therefore not only a matter of sustainability but also one of survival.

The Energy Fund

The Business Partners Ltd Energy Fund for SMEs will directly address this problem. Through it, small businesses will gain access to loans of between R250 000 and R2-million. These loans will be offered at a competitive, risk-adjusted interest rate with a repayment term of up to five years. Business Partners Limited has optimised the accessibility and affordability of these loans by offering no repayment obligations for the first six months.

In preparation for making their application to the Energy Fund for SMEs, Lang urges small businesses to ensure that their financial statements are up to date and that they have an equipment quote from a reputable accredited installer of their choice.

Loans from the Energy Fund for SMEs can be used for the purpose of purchasing alternative energy solutions such as solar systems, back-up batteries and inverter systems, diesel-powered generators as well as other energy generation-related products.

SMEs whose loans are approved may also be able to take advantage of the latest tax incentive, announced in the 2023 Budget Speech. The incentive allows businesses to reduce their taxable income by up to 125% of the cost of their investment in renewables.

In preparation for making their application to the Energy Fund for SMEs, Lang urges small businesses to ensure that their financial statements are up to date and that they have an equipment quote from a reputable accredited installer of their choice.

As Lang concludes: “The long-term benefits of running a more energy-secure business will far outweigh the cost of the investment. With alternative energy sources, businesses can futureproof their operations, position themselves as potential contributors to the impending embedded generation programme while also reducing the cost of energy.”

Loan applications for the Energy Fund for SMEs can be processed online via the following portal: www.businesspartners.co.za

About Business Partners Ltd

Business Partners Limited is a specialist risk-finance company for formal small and medium owner-managed businesses in South Africa and selected African countries. The company actively supports entrepreneurial growth by providing financing from R500 000 to R50-million, specialist sectoral knowledge, business premises and added-value services for viable small and medium businesses.

Since establishment in 1981, Business Partners Ltd has provided business finance worth over R20-billion in over 71 600 transactions facilitating over 671 000 jobs. 

Oppenheimer’s SA Future Trust launches R3m competition for top entrepreneurs

The South African Future Trust, founded by Jonathan Oppenheimer with the visionary aim of catalyzing economic growth and job creation, is proud to announce the launch of the inaugural SA Future Trust Awards. This groundbreaking competition, aimed at recognizing and rewarding the spirit of entrepreneurship in South Africa, will be unveiled at the much-anticipated South African Future Trust Summit.

The SA Future Trust Awards will spotlight the dynamism and innovation of South African entrepreneurs across six categories, including the best implementation of a new business playbook, which will be revealed during the summit. In order to be eligible for participation in this category, the entrant needs to have been a SAFT Summit attendee with a valid ticket.

We encourage entrepreneurs from all corners of South Africa to be a part of this transformative event. The summit is a stepping stone to a brighter future for South African businesses and the economy at large.

Each of the category winners will be celebrated not only with the prestigious accolade of being an industry vanguard but will also receive a comprehensive prize package. The SAFT Summit delegate who wins the best implementation of a new business playbook category will receive a package valued at R500,000. This package is split between a cash injection of R250,000 to foster immediate business growth and an equivalent R250,000 value in extensive support, including mentorship from seasoned industry leaders, cutting-edge hardware, and other essential resources designed to scale their operations and accelerate their business trajectory.

This structured support, blending financial, strategic, and technological resources, reflects the South African Future Trust’s holistic approach to nurturing the country’s business talent. It ensures that the winning entrepreneurs will have access to both the capital and the expert guidance necessary to transform their business dreams into impactful realities.

But the rewards don’t end there. Finalists will gain access to exclusive workshops with high-profile business leaders, providing invaluable mentorship and networking opportunities. Additionally, increased media exposure will catapult their businesses into the national spotlight, offering further avenues for growth and success.

The South African Future Trust extends an invitation to all entrepreneurs across the nation to attend the South African Future Trust Summit. This event is not just a platform to learn about the SA Future Trust Awards but also an opportunity to engage with a community of innovators, investors, and thought leaders. It’s a place where ideas meet opportunity and where the next generation of business success stories begins.

Jonathan Oppenheimer, reflecting on the importance of this initiative, remarked, “Entrepreneurship is the heartbeat of a thriving economy. Through the SA Future Trust Awards, we aim to fuel this spirit and support the brilliant minds driving our nation forward. We believe in the power of entrepreneurship to transform lives and communities, and we are committed to making that belief a reality.”

We encourage entrepreneurs from all corners of South Africa to be a part of this transformative event. The summit is a stepping stone to a brighter future for South African businesses and the economy at large.

Join us in celebrating and empowering the entrepreneurial spirit that will shape the future of South Africa. Be there at the launch, be part of the movement, and be the change you wish to see in our country.

For more information and to register for the South African Future Trust Summit, please visit https://summit.southafricanfuturetrust.org/

L-R: Nico Jacobs, SAFT Beneficiaries IX Engineers, Jonathan Oppenheimer

Destination: Northern Cape – an extraordinary South African holiday experience

Northern Cape Tourism - Adventure off the beaten track

Kayak on the Orange River, follow in the footsteps of dinosaurs in Fraserburg. Discover the dark skies sanctuary in Kgalagadi, be enchanted by the sky lore of the Khomani San – or be fascinated by glimmering constellations at Sutherland. This is the Northern Cape where you can experience Real Culture, Real Nature and Real Adventure. Create your own “bucket list” experiences and make family memories to last a lifetime! Visit: www.experiencenortherncape.com

Here are six “must do” reasons to choose the Northern Cape as your family holiday destination:

Rewarding cultural adventures

The distinct cultural groups that make up the Northern Cape are as rich as the country’s history. Unlock the secrets of the African bush in the company of the oldest human inhabitants of the region, the ‡Khomani San near the Kgalagadi Transfrontier Park, our newest World Heritage Site. Swim in the hot pools of Riemvasmaak, discover the ancient wisdom of the Nama of the Richtersveld, a UNESCO World Heritage Site.

Explore living villages, shop at craft markets, indulge in regional authentic cuisine at local eateries and be transported to the world of our ancestors through campfire storytelling and dancing. It’s the best way to experience the heartbeat of the province and to take some of the soul of the Northern Cape with you on your return journey home.

Adventure off the beaten track

For the active, it’s an ideal environment for exploration and adventure. We have an awe-inspiring setting for any enthusiast. Whether you are stargazing in Sutherland, hunting for fossils in the Karoo or searching for San rock art deep in the caves of the Diamond Fields, experiencing the world’s richest floral offering in Namakwa, camping deep in the bush surrounded by wildlife and the famed black-maned lion of the Green Kalahari, or kayaking down the mighty Orange River, the Northern Cape is more than an adventure, it’s an enriching life experience.

Family adventure experiences

The Northern Cape has always been a family-friendly destination. Its mix of culture, adventure, wildlife and wide accommodation choices offers family fun that is both entertaining and educational. The province is home to six national parks and two of the country’s largest rivers, which makes it perfect for fun activities the entire family can enjoy. These include game safaris, bird-watching, dune-surfing, leisure hikes and walks to winery tours, museum visits and archaeological discoveries.

Northern Cape Tourism - Fly Fishing

Natural beauty and wildlife adventures

The Northern Cape is arguably South Africa’s most beautiful and naturally real province. Visitors are hard-pressed to choose between our two UNESCO World Heritage Sites, two Transfrontier Parks, the Kgalagadi and the |Ai-|Ais Richtersveld with its red and golden sand dunes or the Augrabies Falls National Park with the mighty Augrabies Falls thundering down an 18km abyss. Not to forget the Mokala National Park near Kimberley and Namaqua and Tankwa Karoo National Parks in the Namakwa region.

Alternatively explore any one the six Provincial Nature Reserves, Goegap, Witsand, Oorlogskloof or one of our many private game and nature reserves. Share the intimate bush knowledge of a Nama or San Bushman guide/tracker. The Northern Cape’s natural beauty is enhanced by its enigmatic wildlife. From the small five to the big five, watching wild animals at close range is something truly unforgettable. There are walking, horseback, 4×4, little five, glamping and many more wildlife experiences to incorporate in your trip.

A floral adventure

Each spring, the dormant and arid winter plains of the Northern Cape’s Namakwa region are transformed into a kaleidoscope of colour with the arrival of the flower season. The wildflowers of the Namakwa are a remarkable natural phenomenon and best discovered on foot, which makes it ultimately appealing to hikers and outdoor enthusiasts. The best time to visit for the floral splendour is from end July to early October.

Explore the Battlefields Route

The Battlefields Route allows visitors to relive the war between Great Britain and the Boer Republics of the Transvaal and the Orange Free State from 1899 to 1902. The Northern Cape played a decisive role in the war with the famous Kimberley siege and you can relive the siege, its victories and the setbacks suffered by both sides at the Magersfontein and McGregor Museums.

Explore the routes of the Northern Cape

Cape Namibia Route

The route meanders away from Cape Town along the N7 and includes small towns, each with its own local flavour and a story to tell. Visitors will encounter towns which capture the Nama heritage of the province. Slow down and appreciate the unique stories of the people of Garies, Kamieskroon, Springbok, Okiep, Steinkopf and Vioolsdrift. During spring time, this route takes visitors into the core of the floral kaleidoscope that is the Namakwa floral season.

Don’t miss: River-rafting along the mighty Orange River.

Namaqua Coastal Route

The route includes hidden gems like Garies, Kamieskroon, Hondeklip Bay, Koiingnaas and Kleinzee. Dozens of adventure and leisure options are available: Namaqua National Park, nature reserves, some of the most remote hiking and 4×4 trails imaginable. Go succulent sleuthing with a botanical guide, hike the Springbok Klipkoppie for a dose of Anglo-Boer War history, explore the countless shipwrecks along the coastline. Breathtaking scenes of the Atlantic Ocean with sightings of dolphins and whales combined with great vistas of mountains and veld with endemic wildlife makes travelling in this area remarkable.

Don’t miss: Slow-packing through the Namaqua National Park in early Spring (September) when the usually dusty plains are transformed into kaleidoscopic flower carpets of colour.

Northern Cape Tourism - Quiver Tree and Namakwa Flowers - Iconic

Richtersveld Route

The Richtersveld is South Africa’s only mountain desert and the route travels along rugged gravel roads to quaint towns such as Eksteensfontein, Sendelingsdrift, Lekkersing, Kuboes and Sandrift. The Orange River presents a more leisurely pace with river-rafting and the best wilderness fly-fishing in South Africa, while the entire Richtersveld is a mountain biker’s dream.

Don’t miss: Learn about the lives of the nomads, be transported through dancing and storytelling.

Quiver Tree Route

Named after the indigenous quiver tree, the Quiver Tree Route stretches along the mighty Orange River. It features the quaint towns of Upington, Kakamas, Keimoes, Augrabies, Marchand, Kanoneiland, Kenhardt and Riemvasmaak. The route will appeal greatly to families, adventure and adrenaline seekers. Experience the hot springs at Riemvasmaak, river-rafting, fly-fishing, kayaking, river cruises, 4×4, hiking and MTB trails and excellent bird-watching. With the longest wine-producing area in the Southern Hemisphere there are many opportunities for world-class wine and brandy tasting along the route.

Don’t miss: A visit to the Augrabies National Park and the world’s sixth-largest waterfall.

Northern Cape Tourism - Augrabies Falls View Point

Kalahari Red Dune Route

Discover the essence of the province in the heart of the Kalahari. Golden dunes, wide-open skies and flat-topped acacia trees epitomise the Kalahari Red Dune Route. Enjoy dune hikes at dawn, eagle-owl encounters, sand-duning and surfing in the red sand and close encounters with meerkats. Explore the Khomani San Cultural Landscape and join a guided walk with the San Khomani to rediscover the wisdom, customs and folklore of this ancient tribe.

Don’t miss: In the Kgalagadi Transfrontier Park, magnificent oryx hold sway and you can discover the mighty Kalahari male lion. The largest conservation area within Africa, it is also one of only 10 Dark Skies sanctuaries in the world.

Go Ghaap Route

Explore famous archaeological sites, historic towns, amazing architecture and a selection of nature and game reserves. Visitors can trace the early geological history (from three-billion years ago) which created vast mineral wealth like iron, manganese, diamonds and limestone. Follow in the footsteps of the early explorers and missionaries such as David Livingstone, Henry Stanley and Richard Moffat. Relive the Anglo-Tswana and Anglo-Boer Wars, explore the Wonderwerk Caves between Kuruman and Danielskuil. Rediscover the Khoisan history in Wildebeest Kuil near Barkly West.

Don’t miss: Kuruman Eye is a natural spring delivering about 20-million litres of clean, clear water daily.

Karoo Oasis Route

The route traverses the towns of Warrenton, Kimberley, Hopetown, Britstown and Victoria West along the N12. It is the perfect stopover for travellers between Johannesburg and Cape Town. Trace the rich mining history of the region before stopping at one of the myriad national game and nature reserves for game drives and world-class birding. Anglo-Boer War enthusiasts can relive the tribulations of war at the McGregor and Magersfontein Museums and at Hopetown. Beautiful arts and crafts are for sale throughout the route and there are opportunities to meet local artists.

Don’t miss: Hanover has South Africa’s largest privately-owned Karoo nature reserve, the Karoo Gariep Nature Reserve. Olive Schreiner, the author of The Story of an African Farm, lived in Hanover and her house is a museum.

Karoo Highlands Route

Enjoy the peace and tranquillity of the Karoo with its wide-open plains. The area was named by the Khoi and San people, who left their legacy as art on the rocks. Explore many unique experiences such as dinosaur hunting in Richmond, the SKA radio telescopes in Carnarvon, Karoo architecture and corbelled houses, Anglo-Boer War sites, rock art, ancient Palaeo Surfaces, farm stays and great Karoo cuisine and hospitality. This route includes several charming small towns – the heart of the Great Karoo. Nieuwoudtsville is your last stop before crossing the majestic Van Rhyns Pass en route to Cape Town.

Don’t miss: Sutherland is famous for snowy winters, excellent stargazing and dramatic landscapes. It is home to the South African Large Telescope, the largest single optical telescope in the Southern Hemisphere.

Northern Cape Tourism - Black-Maned Lion and cubs

Visit https://www.experiencenortherncape.com/

African Agri Investment Indaba 2023

The 6th Annual African Agri Investment Indaba (AAII), to be held on 20 – 22 November 2023 at the Cape Town International Convention Centre in Cape Town, is the global meeting place for food and agriculture investment in Africa.

The Agri Indaba brings together over 900 key stakeholders – from governments, banks, financiers, investors, project owners, project developers, commercial farmers and the agro-processing industry – to discuss trends that will likely influence food and agribusiness economics over the next decade in Africa.

    • Cape Town International Convention Centre
    • Cape Town, South Africa
    • 20 – 22 November 2023
    • 09h00 – 17h00

AAII was developed to address current trends influencing investors’ confidence in African agriculture. AAII covers various facets within the agribusiness sector in Africa and globally with a specific focus on creating a voice for investment ready agricultural projects, policy makers, agribusinesses as well as bringing structure and efficiency in connecting investors and financiers with food and agricultural opportunities in Africa.

Find out more: https://www.agri-indaba.com/ | Email: eventhost@agri-indaba.com

Gauteng’s Special Economic Zones are multiplying

Ford Silverton Assembly Plant during upgrades. Ford Motor Company was an initiator of the Tshwane Automotive SEZ (TASEZ).

The Gauteng City Region is a big driver of the South African economy, with particular strengths in manufacturing, retail, industrial production, real estate and finance.

Five corridors for concentrated economic growth have been identified and within those areas, Special Economic Zones have either been inaugurated or are to be rolled out. At the same time, there are plans to link these developments with initiatives to revive or boost the economies of townships and to focus in a more general sense on 10 high-growth sectors.

Gauteng has enthusiastically embraced the idea of SEZs as drivers of growth.

As defined by the National Department of Trade, Industry and Competition (dtic), Special Economic Zones (SEZs) are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country.

South Africa’s Industrial Policy Action Plan¹, IPAP, identifies SEZs as key contributors to economic development. They are growth engines towards government’s strategic objectives of industrialisation, regional development and employment creation. The purpose of the SEZ programme is to:

    • expand the strategic industrialisation focus to cover diverse regional development needs and context;
    • provide a clear, predictable and systemic planning framework for the development of a wider array of SEZs to support industrial policy objectives like the IPAP and National Development Plan (NDP);
    • clarify and strengthen governance arrangements;
    • expand the range and quality of support measure beyond provision of infrastructure;
    • and provide a framework for a predictable financing framework to enable long-term planning.

The same principles apply to various Industrial Parks which are either being built or revived.

Apart from attracting foreign direct investment (FDI) and boosting employment, SEZs can be instrumental in adding new sectors or subsectors to an economy. An obvious candidate in that category is renewable energy which needs manufactured components such as solar panels and towers for wind turbines.

Incentives include tax breaks from the South African Revenue Service, subsidised interest rates from the Industrial Development Corporation (IDC), subsidies for employees earning below a certain level, training grants from the dtic and discounts from national electricity utility Eskom. The SEZ is also a customs-controlled area. The SEZs are located in a municipality and for the SEZ programme to succeed, municipalities must be part of the planning, design and implementation of these spatial development catalysts. The local government sector is, therefore, an important stakeholder in the drive to build sustainable and successful SEZs.

The NDP is a broad-strokes plan that seeks to coordinate development in a range of sectors and promotes ambitious infrastructural projects. South Africa’s most recent IPAP has a manufacturing focus, and this is also the area on which SEZ are concentrating.

Gauteng has enthusiastically embraced the idea of SEZs as drivers of growth.

Growing Gauteng Together 2030², or GGT2030, is the blueprint for the recovery of provincial economy. The programme supporting SEZs falls squarely within that broader framework and is being implemented by the Gauteng Growth and Development Agency (GGDA).

At the core of the GGT2030 is ensuring that economic interventions are implemented to modernise and industrialise high-growth sectors in Gauteng. The SEZ programme is part of the GGT2030 economic development strategy. The plan aims to facilitate foreign and domestic investors to expand economic infrastructure development throughout the greater Gauteng community nodal zones located in the five economic corridors of the province.

Operational SEZs

Tshwane SEZ

Tshwane Automotive SEZ (TASEZ) was initiated by the Ford Motor Company to help expand its automotive footprint in South Africa through the attraction of its global suppliers into the country. This ambition was further enhanced by the Gauteng government’s plan of developing a new Automotive City in Tshwane, and aligns with the SA Automotive Masterplan 2035, which sets targets to increase localisation.

TASEZ is the outcome of partnerships between the dtic, the Gauteng Provincial Government, the City of Tshwane and the Ford Motor Company of Southern Africa. The Automotive Industry Development Centre (AIDC), a subsidiary company of the GGDA, has been tasked to deliver TASEZ on behalf of the Gauteng Provincial Government.

As of December 2022, 10 automotive component manufacturing companies that have been set up at TASEZ were in full production. More than 4 618 temporary construction jobs had been created while Phase One will add 2 088 permanent skilled jobs.

OR Tambo SEZ

The OR Tambo International Airport (ORTIA) IDZ officially opened in March 2019. It aims to develop land around the airport to stimulate economic development. ORTIA supports the beneficiation of precious metals and minerals sector, with a focus on light, high-margin, export-oriented manufacturing of South African precious and semi-precious metals. The multi-site development at ORTIA consists of several industry-specific precincts and will be developed in phases.

Jewellery manufacturing companies are locating to the ORTIA IDZ, contributing to a sustainable and diversified mining-beneficiation value chain. OR Tambo International is responsible for 84% of all air-cargo traffic in ACSA’s network, giving the IDZ a competitive boost through its proximity to the airport. The Jewellery Manufacturing Precinct is located in ORTIA Precinct 1. Each precinct has been designed to foster cohesion supporting circular and sustainable development practices. De Beers has chosen to locate its relocated operations adjacent to the IDZ.

Other sectors being encouraged to set up at the IDZ include diamond beneficiation, agro-processing, pharmaceuticals, advanced manufacturing and capital equipment. Logistics remains a key sector and anchor tenants are being asked to consider expanding their portfolio of investments.

OR Tambo International Airport (ORTIA) IDZ _ Gauteng Business
The OR Tambo International Airport (ORTIA) IDZ was launched in 2019.

Coming on stream

Vaal SEZ

The Vaal SEZ Master Plan has been completed and the SEZ designation application to the dtic has been finalised.

Green-energy generation is one of the most important sectors that will be focused on within the Vaal SEZ, which will act as a catalyst to boost economic growth in the Vaal region. Other sectors of interest include green hydrogen, green steel, greenhouse farming and agro-processing, aerospace and defence parts and component manufacturing and gateway logistics.

All four local municipalities in Sedibeng District Municipality have made land available for this SEZ and local investors made several commitments at the Sedibeng Investment Conference for a project which is anticipated will significantly boost the Vaal regional economy through multi-site, multi-sector projects throughout the region.

Excellent infrastructure, closeness to markets and close links to several tertiary institutions give the Vaal SEZ a competitive edge.

The Sedibeng District, host of the proposed Vaal SEZ, comprises three local municipalities and is strategically located both in terms of highways and railways and in relation to three economically-powerful metropolitan municipalities, Johannesburg, Ekurhuleni and Tshwane.

Planning phase

The following SEZs are in the planning process, which includes preparation of the paperwork to apply for designations to the dtic. The timeframe for these projects is two to three years.

West Rand SEZ

With many of the mines that underpinned the West Rand’s economy for so long reaching the end of their lives, alternatives are needed. The provincial government and mining houses are working on various options for closed mines, but the West Rand SEZ is being designed to promote investment in new fields. These include urban agriculture, green hydrogen and solar power.

At the same time, the Busmark manufacturing plant in Randfontein remains a pillar of that sector and it could be a central tenant of such an SEZ.

Busmark is an established manufacturer in the West Rand.
High Tech SEZ

The High Tech SEZ is part of the broader Lanseria Smart City project. President Cyril Ramaphosa has referred to the proposed Lanseria Smart City project as South Africa’s first post-apartheid city. It is envisaged as a hub for the digital technology and services corridor, which in turn is to be anchored by the new High Tech SEZ.

¹ https://www.gov.za/sites/default/files/gcis_document/201805/industrial-policy-action-plan.pdf
² https://cmbinary.gauteng.gov.za/

Growing the tourism sector in the Free State

The Premier Splendid Inn, Bloemfontein.
The Premier Splendid Inn, Bloemfontein.
By Tahlia Wyngaard

An economic overview of the Free State tourism sector 

New markets are being targeted through programmes such as “Travelling Differently”. The aim is to appeal to people who have previously been excluded from experiences such as game drives, bird watching, fishing, hiking and camping.

The “Free State CampOut Experience” was launched in November 2021 at Maria Moroka Nature reserve, the first of a series of events hosted in various provincial resorts to further encourage eco-tourism among city dwellers.

Visitors are encouraged to “Travel Differently”.

Free State tourism authorities are reaching out to neighbouring provinces and the Kingdom of Lesotho to coordinate a regional strategy for tourist products. Other participants include the North West Province, Fezile Dabi District Municipality and the National Department of Environmental Affairs, Forestry and Fisheries.

Another thrust is rural tourism, which is targeted as a subsector with great growth potential. Products such as the Bothobapelo Country Lodge and the Dinkoeng Tented Camp and Adventure based in Monontsha in QwaQwa are examples of what can be achieved with investment and commitment.

Rural tourism is showing potential

Heritage is another sector with possiblities. A Heroes’ Park is to be constructed at Thaba Nchu and Tumahole with statues of Oliver Tambo and Fidel Castro. A museum and statue at Brandfort to commemorate Winnie Madikizela-Mandela is planned. Other sites with potential that are the subject of upgrades include the Thaba Nchu Airfield and the Phakisa Raceway in Welkom.

The Golden Gate Highlands National Park in the Maluti Mountains is one of South Africa’s great parks. 

Hotel industry

Bloemfontein’s newest hotel is the 88-room Premier Splendid Inn. Built on the site of the old Stanville Inn, the property has been converted into a R95-million hotel with conference facilities over five floors. Protea Hotels has four properties in the Free State, two in Bloemfontein, one in Harrismith and the Protea Hotel Clarens.

The Tsogo Group’s properties include the four-star Southern Sun Bloemfontein and the SUN1 Bloemfontein. Tsogo Sun Gaming runs the Goldfields Casino in Welkom. The City Lodge Bloemfontein has 151 rooms, and there is a Road Lodge at the airport. The Rantsoareng Group operates exclusively in the Free State and has three properties, the biggest of which is the President Hotel in Bloemfontein.

Sun International runs the Lesotho Sun and the Maseru Sun in neighbouring Lesotho. In Bloemfontein, the Windmill Casino and Entertainment Centre offers slot machines and gaming tables, plus conference facilities. The four-star Willow Lodge has 80 rooms. The Naledi Sun Hotel and Casino is about 65 km from Bloemfontein. 

More online resources

Thought leaders with impact: Wits Business School leads research in areas critical to the continent’s sustainability

New leadership, a new strategy and international accreditation – Wits Business School (WBS) is consolidating its position as a leading African business school. Almost three years after Professor Maurice Radebe took the helm as Director and Head of WBS, the School is experiencing a turnaround, as evidenced by the growing number of corporate clients and students.

For Radebe, a former energy executive at Sasol Oil, leading the turnaround at WBS was an opportunity for him to give back, not only to WBS, his alma mater, but to society. “When the opportunity arose, I realised this is very much in line with my purpose, which is to develop the next generation of leaders who are ethical, and who have a passion to make a difference.”

Professor Maurice Radebe, Director and Head of WBS.

Developing impactful leadership is at the heart of the School’s mission and the golden thread that runs through its programmes, whether academic or executive short courses.

The MBA programme at WBS is centred around a ‘Leadership Quest’, an independent study component which challenges the students to reflect on their leadership style and beliefs and identify the gaps that need to be closed to become a great leader.

“Our country and continent are rich with young talent. As business schools, we need to tap into this talent and develop it. We need to invest in the next generation of leaders who can take Africa into an inclusive and sustainable future. This means leading with purpose, integrity and accountability, while at the same time developing an entrepreneurial and innovative mindset,” says Radebe.

To this end, WBS has established three centres of excellence which focus on developing the latest research in areas critical to Africa’s future. These include Energy Leadership, Digital Business and African Philanthropy and Resource Mobilisation. The school recently announced a new MBA in the field of Healthcare Leadership, launching in March 2024, which seeks to address the many challenges facing the healthcare sector, both locally and globally.

WBS has also announced the imminent launch of a new Centre for Entrepreneurship, the result of a collaboration with the private sector which seeks to sustain the economic revitalisation of South African cities and townships.

In the Executive Education division at WBS impactful leadership means providing delegates with the tools to adapt to change and disruption through soft skills, such as agility and resilience, along with hard skills, such as digital business.  Programmes are taught by both academics and industry experts.

“We get people from business to teach business and in this way, we embrace the concept of ‘pracademia’ to ensure real-world impact,” says Leoni Grobler, Director of Executive Education at WBS.

In the past twelve months, WBS has attained accreditation with the Association of African Business Schools (AABS) and re-accreditation with AMBA. The school is now shifting its focus to achieving American and European accreditation through AACSB and EQUIS, respectively.

“WBS is on an exciting journey to becoming globally recognised as an African thought leader, using our reputation for academic excellence as a foundation for delivering programmes that are strongly research-based and relevant to our context and our collective future as Africans,” says Radebe.

A regional overview of the KwaZulu-Natal provincial economy

Renishaw Coastal Precinct on KZN Mid-South Coast released two hilltop sites in early 2023. Photo: Renishaw Coastal Precinct

The Provincial Government of KwaZulu-Natal has created a KZN Energy War Room. Over and above the interventions into energy efficiency of government buildings and investments in things like solar panels, and plans to continue rolling out electricity connections to previously unserviced households, the administration intends turning Richards Bay into an energy hub.

This ambition received a big boost in 2023 with the decision by the National Energy Regulator of South Africa to approve Eskom’s application to build a 3 000 MW gas power station at Richards Bay.

Battery storage has made a debut in the province as well. South Korean firm Hyosung Heavy Industries has signed on to implement the Eskom project to create a battery energy storage system, in this instance in the uMgungundlovu District Municipality.

In the 2023 State of the Province Address, Premier Nomusa Dube-Ncube said that, in addition to the R97-billion Eskom project, the following facilities would be established at the deepsea port:

  • Mabasa Energy and Fuels, R10-billion
  • NFE BGE Gas Supply, R25-billion
  • Phakwe RBGP, R34-billion

An earlier announcement on the energy front by President Cyril Ramaphosa that private investors could generate up to 100 MW without having to go through a tangled web of licence procedures was a boon for the province’s larger companies. The likes of Sappi and Mondi produce great quantities of biomass waste and all of the province’s sugar producers are potentially generators of electricity. Many of them already are producing power for their own use, now they can sell it to the grid.

The signing of a long-term contract for energy supply by Eskom and South32 for its Hillside Aluminium smelter was another very welcome step in the energy field. The deal expires in 2031.

The first steps in a move by national government to partner with the private sector in boosting efficiency at ports were taken in 2022: deals were signed at the Port of Durban and at Richards Bay.

In the oil and gas sector, the big issue of what is going to happen to SAPREF, South Africa’s largest crude oil refinery which suspended operations in 2022, remains unresolved. The provincial government is planning to have a meeting with the refinery’s shareholders and other levels of government to try to find a way of resolving the matter.

The first steps in a move by national government to partner with the private sector in boosting efficiency at ports were taken in 2022: deals were signed at the Port of Durban and at Richards Bay.

In 2023, these first steps became a giant leap when International Container Terminal Services Inc (ICTSI), a Philippines-based port operator, was announced as the preferred partner for a joint venture (JV) to run the Durban Container Terminal with Transnet.

Credit: Transnet National Ports Authority (TNPA)

ICTSI operates in 20 countries and employs more than 11 000 people. Transnet will hold 50% plus one share in the JV for 25 years, with an option to extend to 30 years. From the initial list of 17 potential partners, ICTSA was eventually chosen from a shortlist of six. Part of the plan for Durban Container Terminal Pier 2 is to increase traffic in such a way that it will be able to increase its handling capacity from the present 2.9-million TEUs (two-million 20-foot equivalent units) to 11-million TEUs by 2032.

The 2022 deal involved a 15-year concession for the loading of grain at one of Durban’s agricultural terminals was won by Afgri, one of South Africa’s biggest agricultural firms. Afgri will deal with the operation and maintenance of all landside operations, and the deal includes a similar arrangement at East London. The other two terminals in Durban are operated by SA Bulk Terminals and Bidvest Bulk Terminals.

Special Economic Zones

The provincial government is working on an investment pipeline, through the Special Economic Zones (SEZs), of R22-billion. The SEZs at Richards Bay and King Shaka International Airport (the Dube TradePort) are key components of the strategy and are now well-established nodes of investment.

Milestones have been reached in the plan for creating further SEZs to focus on leather and textiles. A business case has been completed by units within the provincial government and land at Ezakheni (Ladysmith) in the uThukela District has been identified and secured. Dube TradePort will be the SEZ operator and R780-million in investments has been pledged by companies keen to relocate to the SEZ. To spread the benefits of the SEZ, the concept of “The Textile Belt” will be followed.

The corridor approach will leverage comparative advantages of various regions in the clothing and textile value chain. This belt will start from Newcastle and link Ladysmith, Mooi River, Pietermaritzburg, Hammarsdale, Durban, Isithebe and the Dube TradePort to the Richards Bay Industrial Development Zone.

Infrastructure upgrades at Madadeni, Isithebe and Ezakheni have been completed, which went some way to creating jobs and which will create a more conducive environment for investors.

Tourism is a key sector in the KwaZulu-Natal economy and provides livelihoods to many thousands of families in urban and rural areas. The closing of borders brought real hardship to many areas. A number of flights have been resumed to King Shaka International Airport by the likes of Turkish Airlines and a new flight has been inaugurated by SA Airlink, connecting the province to Zimbabwe.

Economic sectors

The province’s existing infrastructure, good soils and fine weather provide a solid base for a varied economy. KwaZulu-Natal has significant capacity in heavy and light manufacturing, agro-processing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s most active highway (the N3), a modern international airport and pipelines that carry liquids of all types to and from the economic powerhouse of the country around Johannesburg in the interior.

Sappi’s dissolving pulp mill at Umkomaas south of Durban is one of the province’s most significant industrial sites as it produces huge quantities of a material that is used in viscose staple fibre, which in turn is used in clothing and textiles. Mondi is the province’s other global giant in forestry, paper and packaging. Toyota and Bell Equipment are dominant players in the automotive sector.

Many banana farmers on the KwaZulu-Natal South Coast have started planting macadamias. In one case, half of a big farm has been converted to cultivating the popular nut. “Along the KZN South Coast, we enjoy a subtropical climate that creates a fertile environment that supports a variety of crops in the agricultural sector,” explains Phelisa Mangcu, CEO of South Coast Tourism and Investment Enterprise (SCTIE).

The province’s existing infrastructure, good soils and fine weather provide a solid base for a varied economy.

Regions

KwaZulu-Natal has 10 district municipalities and a metropolitan municipality, the most of any province in South Africa. In economic terms, the province offers diverse opportunities.

Southern region

This area is the province’s most populous. The city of Durban has experienced booms in sectors such as automotive, ICT, film and call centres. The promenade now reaches all the way to the harbour and the Point development will benefit.

Major investments are taking place at the Port of Durban. The Container Terminal will be expanded on the back of an investment by an international port operator. Durban’s conference facilities are well utilised, but many opportunities still exist in chemicals and industrial chemicals, food and beverages, infrastructure development and tourism. Further south, Margate’s airport and Port Shepstone’s beachfront are assets.

Radisson Blu Hotel Durban Umhlanga KwaZulu-Natal Business 2023-24
Radisson Blu Hotel Durban Umhlanga celebrated its one-year anniversary with two awards from Durban Tourism.
Western region

Also known as the Midlands, this is a fertile agricultural region which hosts the popular annual Royal Show. It produces sugar cane, fruit, animal products, forestry and dairy products.

Pietermaritzburg is the provincial capital and home to a major aluminium producer along with several manufacturing concerns, including textiles, furniture, leather goods and food. The city has good transport links along the N3 national highway, excellent schools and a lively arts scene. The Midlands Meander is a popular tourist destination.

Eastern region

Although most of this area is rural, Richards Bay is one of the country’s industrial hotspots because of its coal terminal, port and aluminium smelters.

The Richards Bay Industrial Development Zone is a major economic node and mining is an important sector. The other major urban centre is Empangeni which has several educational institutions. The King Shaka International Airport is adjacent to the Dube TradePort.

Northern region

The economic powerhouse is Newcastle in the north-west: coal mining, steel processing and manufacturing are major activities. Some old coal mines are being reopened by new coal companies to cater for the country’s power stations’ demand for the fuel. Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is a popular destination for cultural experiences. The region is rich in Anglo-Boer War history which includes battle sites such as Islandlwana and Rorke’s Drift.

The first fruits of the harvest are celebrated every year at the Umthayi Marula Festival in northern KwaZulu-Natal. Residents of Swaziland and Mozambique are frequent visitors.

The transformative power of business and investment

Sappi’s Ngodwana Mill plays a big role in Mpumalanga’s economy. A key part of the manufacturing sector for many years, it is also the site of a 25 MW biomass energy project. The company contributes about R5-billion to the regional economy. Credit: Sappi

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 Mpumalanga Business 2023-24 edition 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.

Isaak Mahlangu, CEO of the Mpumalanga Economic Growth Agency (MEGA)
Isaak Mahlangu, CEO of the Mpumalanga Economic Growth Agency (MEGA)

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.

Tourism. The Blyde River Valley is one of Mpumalanga’s many iconic tourism jewels. Credit: SA Tourism
Tourism. The Blyde River Valley is one of Mpumalanga’s many iconic tourism jewels. Credit: SA Tourism

Renewable Energy. Seriti Green, a subsidiary of Seriti Resources, is investing in South Africa’s biggest wind farm in Mpumalanga. (Photo credit: Gustavo Quepón on Unsplash)
Renewable Energy. Seriti Green, a subsidiary of Seriti Resources, is investing in South Africa’s biggest wind farm in Mpumalanga. (Photo credit: Gustavo Quepón on Unsplash)

Mining. Exxaro is one of Mpumalanga’s biggest employers, with ownership of three coal mines and a partnership in a fourth. Credit: Exxaro
Mining. Exxaro is one of Mpumalanga’s biggest employers, with ownership of three coal mines and a partnership in a fourth. Credit: Exxaro

Agribusiness. TSB Sugar mills tens of thousands of tons of sugar at its Komati Mill. Credit: Bosch Holdings
Agribusiness. TSB Sugar mills tens of thousands of tons of sugar at its Komati Mill. Credit: Bosch Holdings

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.

Visit MEGA online at https://mega.gov.za/

Trends shaping the Free State economy in 2023

Sasol One, Sasolburg. Credit: Sasol
Sasol One, Sasolburg. Credit: Sasol
    • More high-quality gas has been found at Virginia and the Gas Project is powering ahead.
    • Exploration is underway for a new gold mine.
    • A new strategy has been adopted to attract a new domestic market for tourism.
    • The province’s industrial parks and its Special Economic Zone are attracting investors.

The Free State Province is blessed with abundant natural resources and tourism assets. A number of measures are being undertaken to make sure that these advantages are recognised by potential investors. Among the things that investors like to see is good infrastructure and more than one body is working to deliver that in the province.

The Provincial Government of the Free State reports that it is working with Infrastructure South Africa and other tiers of government to develop a pipeline of bankable projects.

Among those mentioned by Premier Sisi Ntombela in her State of the Province address were projects associated with the Durban-Free State-Gauteng Corridor, the Orange-Riet Canal, the Vista Park, Rustfontein Water Treatment Works and the Gariep water pipeline projects.

In the category of potential projects are the Phuthaditjhaba Gateway, Maluti-A-Phofung Mega City, the Gauteng-Free State Vaal River City Region, Mangaung Airport Node and the Provincial Broadband project.

Roads in South Africa fall under various entities and the Free State’s central position means that it hosts many national roads. However, the province has committed to spend more than R1-billion on its Access Roads Programme, which will not only make it easier for farmers and other producers to get their products to market, but also create some 5 000 part-time job opportunities.

The Provincial Government of the Free State reports that it is working with Infrastructure South Africa and other tiers of government to develop a pipeline of bankable projects.

Various construction and renovation projects are underway that will contribute to improved infrastructure. These include indoor sport centres in Dinoheng, Smithfield and Frankfort, arts studios in three districts, the Basotho Cultural Village and community libraries in Tumahole, Cornelia, Bluegumbusch and Van Standensrus.

Further infrastructure investments are coming from the likes of telecoms company Vodacom. Several new base stations have been established in rural villages. Bloemfontein is the site of one of Vodacom’s new solar-powered facilities, helping in the company’s drive to reduce its carbon emissions.

Industrial parks and SEZ

The Maluti-A-Phofung Special Economic Zone (MAP SEZ), the strategically located area on the N3 highway, is attracting investors to the Free State Province. The aim is to attract R2-billion in new investments.

Sectors prioritised at the MAP SEZ include logistics, ICT, automotive, pharmaceuticals, manufacturing and agro-processing. The 1 000ha site has four zones: agro-processing, light industrial, heavy industrial and a container terminal. Control of the project now rests with the provincial Department of Small Business Development, Tourism and Environmental Affairs (DESTEA).

Other areas that are being upgraded to provide infrastructure to encourage manufacturing are the Phuthaditjhaba Industrial Park and the Botshabelo Industrial Park, where a foreign firm has started construction of a new steel mill. The Digital Hub in the Botshabelo Industrial Park has been launched. Young people in Botshabelo have a space to learn how to code, develop games and programme robotics.

New gold

An energy consulting firm announced in 2022 that the extremely positive resource findings for the Virginia Gas Project were, in fact, an understatement.

As it happens, the site of the project is close to where gold was for many decades mined, an industry that supported thousands of jobs. The prospects for the company Renergen, which is the owner of Tetra4, the holder of the licence to exploit the natural gas of the area, are on the rise.

The Virginia Gas Project covers 187 000 ha in the rather flat triangle created by Welkom, Virginia and Theunissen in the south.

Ironically, given the overall decline in gold production and the sense that the Free State goldfields had given all they could, Harmony is prospecting at what it calls Target 1, just north of its existing mines north-west of Welkom.

Provincial assets

International fuel, gas and chemicals company Sasol regularly invests in new technologies and in expanding production of its many products. Mining is reduced in importance but remains a significant employer. Harmony Gold has several assets in the province and Sibanye-Stillwater has undertaken a feasibility study on a property adjacent to its existing Beatrix mine.

In agriculture, the Free State is looking forward to the implementation of the African Continental Free Trade Area (AfCFTA), the free trade agreement that was stalled by the Covid-19 pandemic. The Free State’s agricultural export basket is well suited to trading with African states and strategies are being considered to promote apples, asparagus, cherries, cut flowers, sorghum, venison and wine.

The Free State produces significant proportions of South Africa’s wheat (30%), sunflowers (45%) and maize (45%) and is ranked third in contribution to national GDP in agriculture.

The Free State shares borders with six other provinces, in addition to the Mountain Kingdom of Lesotho. A summer-rainfall region with a mean annual rainfall of 532 mm, the Free State’s climate, soil types and topography vary greatly within the province, with plains in the west and mountains in the east. The western and southern areas are semi-desert, with some Karoo vegetation occurring in the south.

The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam, South Africa’s largest dam.

The Gariep Dam
More info about business and investment in the Free State
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