Home Blog Page 74

Logistics and renewable energy are vital sectors in the Free State economy

Partial view of Bloemfontein [iStock by Getty Images]

Regional overview of the Free State

By John Young

When the leaders of what would become the African National Congress chose a venue for their first-ever conference, Bloemfontein was the natural choice because of the centrality of the town. The city, which has been the judicial capital of South Africa since the creation of the state in 1910, has continued to leverage its central location to become a significant factor in the transport and logistics sector.

The country’s two great highways pass through the province. The N1 provides north-south connectivity and the N3 is South Africa’s busiest road, linking the ports of Richards Bay and Durban with the industrial heartland.

This strategic position lies behind the decision to launch the Maluti-A-Phofung Special Economic Zone on the N3 at Harrismith. Although agriculture and mining remain the mainstays of the provincial economy, diversification and expansion through initiatives such as Special Economic Zones (SEZs) are key to the economic future of the province.

Sectors prioritised at the MAP-SEZ include logistics, ICT, automotive, pharmaceuticals, manufacturing and agri-processing. The 1 000 ha site will has four zones: agri-processing, light industrial, heavy industrials and a container terminal.

Links to the west (Kimberley and on to Namibia) and east (to Lesotho) underpin the planning behind the N8 Corridor concept which covers Bloemfontein, Botshabelo and Thaba Nchu. A plan for the coordinated development of the N8 Corridor has been approved by a range of bodies and is being funded by the Development Bank of Southern Africa (DBSA) and the Mangaung Metropolitan Municipality.

The Bram Fisher Building in Bloemfontein.

Within this are several projects including the ICC Precinct (hotel and convention centre in Bloemfontein), Bio-Medical Park, Airport Node (logistics and supply chain, warehouses, residential apartments, hospitals, schools, hotels and new shopping malls) and tourism infrastructure for the Naval Hill Development.

Three other national highways intersect the province which is also well served by rail and air links. The Bram Fischer International Airport serves the provincial capital city of Bloemfontein.

Another important new sector is solar energy. The Xhariep, Lejweleputswa and Mangaung regions have among the best direct solar radiation kWh/m² in the country. Only Upington in the Northern Cape has a better solar-radiation index. Rezoning for solar farms has already taken place in several places.

The Stortemelk Hydropower Plant in the Free State Province. Picture source: Murry and Dickson Construction.

New opportunities are opening up in the gas and energy sectors. Several new licences to explore have been granted and a R200-million helium extraction plant is under construction near Virginia.

Relations have been established with 35 countries with a view to promoting exports. Africa and the BRICS grouping of Brazil, Russia, India and China are focus areas. Other partnerships based on education and trade include countries and regions like Portugal, Turkey and Madeira.

An important pillar of the economy of the Free State, the chemicals and fuels hub at Sasolburg, is modernising and expanding. International fuel, gas and chemicals company Sasol regularly invests in new technologies and in expanding production of its various products.

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 532mm, 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 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.

Municipalities in Free State

The Free State has one metropolitan municipality (Mangaung), four district municipalities and 19 local municipalities.

Mangaung Metropolitan Municipality

Mangaung Metropolitan Municipality is a Category A municipality which governs Bloemfontein, Botshabelo and Thaba Nchu. The sixth-largest city in the country, the Mangaung municipal area covers more than 6 263km² and has a population of about 850 000 people. Bloemfontein is responsible for about 25% of provincial GDP.

Xhariep District Municipality

Towns: Trompsberg, Koffiefontein, Zastron, Philipollis, Edenburg, Fauresmith, Smithfield, Wepener

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. Crops are produced in the northern parts of the district and sheep farming is the biggest activity in the south. Trompsberg has the second-biggest sheep-shearing barn in the country.

Diamonds, gravel and clay are mined at Koffiefontein. Jagersfontein is one of the first places where diamonds were found, and it has its own version of the Big Hole to prove it. The town of Bethulie is a good stopping-over place for tourists wanting to experience the water sports available on the Gariep Dam.

The dam is also the site of small hydro-power and aquaculture projects which are intended to create employment and tackle food security. The nearby Tussen die Riviere Nature Reserve and the Mynhardt Game Reserve have a variety of wildlife in spectacular settings. Jacobsdal’s Landzicht winery has proved itself as a worthy producer of wine. San rock paintings and Anglo-Boer War sites are plentiful.

Lejweleputswa District Municipality

Towns: Welkom, Virginia, Boshof, Christiana, Bultfontein, Bothaville Mining is the most important economic activity in this area, also known as the Free State Goldfields, but it is also the most important maize-growing area in South Africa. A large natural gas field has been discovered on what used to be gold turf. Bothaville is the self-proclaimed Mielie Capital of South Africa but it is a name that is apt. The town hosts the annual NAMPO maize festival and the headquarters of Grain SA.

Mining town Welkom is the major urban centre in the district. The town of Virginia is the site of a jewellery school and it is intended that this will form the nucleus of a jewellery beneficiation hub and an IT hub.

The area has tourist assets such as a holiday resort on the Allemanskraal Dam, the Goldfields Wine Cellar in Theunissen and the Willem Pretorius Game Reserve but there is potential for growth in the heritage sector.

Fezile Dabi District Municipality

Towns: Sasolburg, Parys, Kroonstad, Frankfort, Heilbron, Viljoenskroon The chemical complex at Sasolburg is the economic driver in the district, which shares a border with Gauteng province along the Vaal River. The town of Heilbron is another important industrial centre and Frankfort does important agricultural processing work. Kroonstad is the district’s second-largest town and has a number of engineering works and a railway junction. A new kraft paper factory has been planned for Frankfort.

A good proportion of South Africa’s grain crop is sourced from this district and when the vast fields of sunflowers and cosmos flowers are in bloom, a marvellous vista is created. The Vaal River presents opportunities for yachting, rafting and resort-based enterprises. Parys is a charming town and Vredefort is home to a World Heritage Site, the Vredefort Dome where a meteor crashed to earth.

Fezile Dabi District Municipality is the biggest contributor towards the provincial GDP, contributing approximately 35%. The Fezile Dabi area is mostly dominated by the industrial power of Sasol, with the manufacturing of refined petroleum, coke and chemical products adding largely to its GDP.

Thabo Mofutsanyana District Municipality

Towns: Tweespruit, Ladybrand, Clarens, Harrismith, Vrede, Ficksburg, Phuthaditjhaba, Bethlehem

Tourism and fruit farming are the two principal economic activities of this area which is characterised by beautiful landscapes: the Maluti and the Drakensberg mountain ranges, wetlands in the north, well-watered river valleys and the plains of the north and west. The most famous asset is the Golden Gate National Park.

Industrial activity is undertaken at Harrismith and Phuthaditjhaba, where the Free State Development Corporation is promoting investment. The Maluti-A-Phofung Special Economic Zone (SEZ) at Harrismith is a multi-modal transport and logistics hub.

The commercial centre of the district is Bethlehem while Clarens and Ficksburg have become famous for their artists and cherries respectively. Marquard produces 90% of South Africa’s cherries. The north of the district has many sunflower seed farms. Tweespruit is sunflower seed production centre.

Learn more about business and investment in the Free State Province (digital journal):

Think like a start-up!

It is a fascinating time and place in history. Disruptive change is so common that it is becoming a corporate buzzword. Apart from innovative technology, the events of 2020 continue to shake every industry on a global scale.

No business is safe today, no matter how successful or dominant it has been in the past. In all chambers of business, we hear vague references to “the new normal.” This term separates leaders into two categories. Firstly, there are those who are waiting to see what the new normal is, and secondly, those who will shape it.

We see leaders who long for the way things were. In their search for predictability, they look to the past, a familiar time where current knowledge and conventions worked. Their processes are designed to protect the status quo.

At the same time, some businesses cannot wait for their time to shine. They are aligning their strategies and processes to capture new and existing markets. Primed to give customers something new or better, they are poised to disrupt.

There is a subtlety to this that managers and executives overlook. Change is not necessarily disruptive or even profitable. Businesses make many, incremental changes to processes. Most adaptations are minor and have a negligible impact. The disruption depends on how customers react.

Therefore, if the client is not the focal point or inspiration for change, then who is – and why does it matter?

And that brings us to a brand new programme on offer at the UFS Business School, where the point of departure is customer-centric Process Redesign, in a time that demands rapid innovation and adaptation.

Our definition of a process is any work that is co-ordinated, recurrent. It is the activity that contributes to cost, value or service quality. That implies that this programme is applicable across all disciplines, including engineering, finance, operations, marketing, human resources, sales, supply chain, logistics and business analysis. It is particularly relevant for middle and senior managers.

The curriculum is based on research into best practices and ideas from multiple fields of management and operations. It combines battle-hardened tools and methods that lead to a measurable, radical change in performance.  It is rooted in systems theory and sound principles of customer-centric design.

The approach of the programme is practical, hands-on experience. The learning journey is designed to generate an immediate return on investment for your organisation. This is achieved by applying the theory to processes that you are familiar with, in your organisation. You will learn how to analyse existing processes, then, use the tools and methods learned to redesign them.

The result is a process that is adapted and responsive to customer needs. The cost-savings and added value generate the return on investment. This methodology has been successfully applied across all organisational types.

The process redesign programme provides the tools to change performance radically and create new sources of competitive advantage. You are invited to the most incredible opportunity to improve the world around you and be worth more.

Contact Ansie Barnard at the UFS Business School:
barnardam@ufs.ac.za
082 900 1080

 

Economic development through collaboration between industry, academia and government

Dolphins jumping just off the Port Elizabeth Coast (source: Nelson Mandela Bay Tourism)

A catalyst for economic growth in the region

The Nelson Mandela Bay Business Chamber is a not-for-profit organisation representative of a broad spectrum of businesses in Nelson Mandela Bay. It is one of the largest business associations in the Eastern Cape, with a membership of more than 700 businesses employing over 100 000 people in a diverse array of sectors.

The Nelson Mandela Bay Business Chamber is a leading catalyst for economic development, through its strategic Triple Helix model of collaboration between industry, academia and government, which serves as the foundation of creating a competitive Nelson Mandela Bay.

The Business Chamber has been the heartbeat of business success in the region for over 150 years. The Business Chamber is driven by a team of dedicated staff and volunteers, lobbying on issues affecting the ease of doing business and companies’ sustainability. The organisation also builds international relations to form a vital link between business owners and international markets.

Nomkhita Mona, Chief Executive Officer

Vision

To be a leading catalyst for economic development in Nelson Mandela Bay.

Mission

By influencing the factors and key stakeholders that create a competitive enabling business environment.

Task Teams

The Nelson Mandela Bay Business Chamber has established a structure of seven task teams to facilitate the ease of doing business.

The task teams are:
  • Water Task Team
  • Roads and Storm Water Task Team
  • SME Task Team
  • Electricity and Energy Task Team
  • Transport and Logistics Task Team
  • Metro Collaboration Task Team
  • Trade and Investment Task Team

An eighth task team, called Industry 4.0, began its work in 2019 to prepare local businesses for the digital shift.

Enterprise Development and Exporter Development

The Nelson Mandela Bay Business Chamber Enterprise Development Programme was launched in 2014, to develop the skills that enhance and grow small businesses. In 2018 the Business Chamber successfully hosted the fifth phase of the Enterprise Development Programme, with SMEs set to graduate in March 2019. Over 120 entrepreneurs have benefited from this programme.

Meanwhile, the pilot phase of the Business Chamber’s Exporter Development Programme concluded at the end of 2018, with 10 companies finishing this programme in its first year. The programme is aimed at empowering SMEs to position themselves as emerging exporters.

Events

Events at the Nelson Mandela Bay Business Chamber keep business owners up to date and informed on a wide variety of topics affecting business in Nelson Mandela Bay. Regular networking functions offer business owners the chance to make new professional contacts.

The Business Chamber’s flagship events – the Annual Business Chamber Golf Day, the Annual Ladies’ Breakfast and the Annual Banquet – are highlights on the Bay’s business and social calendar. The Events Department hosted a total of 61 events in 2018.

Other Services

Publications and marketing

As another value-added service to members, the Nelson Mandela Bay Business Chamber provides members with a variety of publications across print and electronic platforms, including the member magazine Infocom (distributed three times a year, as of 2019) and the annual Business Guide. Both of these publications are ABC-certified, glossy publications.

The Business Chamber regularly updates its website, and engages with members on popular social media platforms including Facebook, Twitter, LinkedIn and Instagram.

Help desk

In line with its vision of providing an enabling environment for business, the Business Chamber set up an Ease of Doing Business help desk in 2018. The help desk assists members through reducing red tape and engaging with the Nelson Mandela Bay Metro regarding these members’ obstacles in conducting business. The Business Chamber also engaged with the city’s leadership in 2018 towards the goal of establishing a One Stop Shop for existing and potential investors and will continue these engagements in 2019.

Research unit

The Business Chamber established an in-house cluster research unit in 2018. Its aim is ultimately to identify several catalytic projects that can be marketed to investors and can contribute to the development of key sectors. The new unit will provide a library of business intelligence and insights for the development of essential clusters.

Certificates of Origin

A Certificate of Origin is a document which states the origin of goods being exported and this “origin” is a key requirement for applying tariffs and other important criteria. As an accredited provider of this service, the Nelson Mandela Bay Business Chamber signs Certificates of Origin for member and non-member companies requiring these services in Nelson Mandela Bay. The Business Chamber also offers exporters the opportunity to certify electronically through the ECOO system.

Corporate Social Investment

Because the majority of our membership’s workforce is based in the city, the region of Nelson Mandela Bay is the direct beneficiary of their Corporate Social Investment programmes – including skills development initiatives, bursaries and scholarships. Many of our member companies significantly contribute to alleviating poverty and specifically unemployment in the region of Nelson Mandela Bay through various initiatives purposed to grow the local economy.

Every year the Business Chamber adopts NGO organisations and collects goods and services from our member companies in order to create awareness around the NGOs. In 2018 the Business Chamber adopted Elsen Academy and the Kleinskool Initiative and collected several items from our companies, including office equipment, computers, stationery and school clothes.

www.nmbbusinesschamber.co.za

 

Lighting the Eastern Cape with LED energy-saving lights

The lighting at St George's Park includes theatrics. Image: Maritz Electrical.

Following the successful installation of the world’s first International Cricket Council-compliant, LED-lit stadium at St George’s Park Cricket Ground in Port Elizabeth and the first athletics stadium in South Africa to have an LED lighting solution, Coetzenburg Stadium at the University of Stellenbosch, Maritz Electrical has expanded its range of projects in the Eastern Cape.

Work at the East London Airport, and at the Buffalo City Metropolitan Municipality, show Maritz Electrical’s versatility, especially in large-area LED lighting.

Project Manager Diketso Kumalo

Project Manager Diketso Kumalo reports that the six-month contract to install LED energy-saving lights at East London Airport was completed on time and in budget. Says Kumalo, “One of our goals for all projects is to provide total client satisfaction, on top of saving on energy costs.”

LED lighting significantly reduces power consumption. Maritz Electrical’s pre- and post-installation testing confirmed that East London Airport will save on electricity costs.

The Maritz contract with the Buffalo City Metropolitan Municipality includes the provision of mast lighting to informal settlements across the municipality. “We are providing them with 20m-high masts with LED luminaires,” says Kumalo. “LED consumes far less power compared to high-pressure sodium or metal halide, although with LED, lux levels are better.” So, costs are reduced, and the power of illumination will be better for residents.

Kumalo says that a Maritz Electrical Eastern Cape office could be a possibility. “Our presence is growing,” he notes. “Depending on the projects we receive from the province, an Eastern Cape office would be an advantage.” Kumalo points out that Maritz Electrical’s expertise extends beyond lighting. “We do a variety of electrical works and we offer project management, consulting, compliance services, hazardous area classification and MV and LV maintenance.”

More from Maritz Electrical here >>

The ELIDZ has attracted a number of new investors in 2019

Simphiwe Nicholas Kondlo, the Chief Executive Officer of the ELIDZ, holds a Master’s Degree in Engineering Management and has more than 24 years’ experience spanning various fields including civil and agricultural engineering. With him at the forefront, the ELIDZ is a front-runner in the field and continues to flourish as a multi-sector Industrial Development Zone.

Simphiwe Nicholas Kondlo
Please name some of the significant recent investments.

The East London IDZ recently announced two new investors worth over R500-million, Meek Mines South Africa and Nulatex South Africa. These two investments offer a response to the government’s clarion call to promote regional integration, promote beneficiation and create meaningful jobs. Meek Mines SA is a diamond cutting and polishing plant. Nulatex SA will produce male and female condoms for domestic and African markets. In 2018, we announced Yekani Manufacturing as the first black industrialist factory to locate within the ELIDZ’s Zone 1B precinct. The company is the beneficiary of the dti’s Special Economic Zone (SEZ) Fund and Black Industrialist Scheme (BIS), the government’s financial support programmes aimed at accelerating growth of manufacturing.

How important is the location of Mercedes-Benz SA in building ELIDZ as an automotive hub?

Mercedes-Benz SA is a key strategic partner not only for the growth of the IDZ but for regional economy. Through our relations with the auto giant, we have been able to attract more automotive-oriented investments.

As such, the East London IDZ has various incentives, which can be accessed by qualifying industries. These include a Specialised Customs Controlled Area benefit (some VAT exemptions), no import duties on raw materials for manufacture, goods for storage and capital goods used in the CCA. There are also specialised local incentives and access to national manufacturing and other generic government incentives.

Tell us about the ELIDZ internship programme.

The ELIDZ internship programme is two-pronged: the first year serves as an introductory phase where the interns receive on-the-job training. The second phase, Junior Professional, is centred on allocation of more responsibilities and quarterly assessments to monitor performance.

What conference facilities do you have?

The state-of-the art facility has four conference rooms which are interconnected and can open into one room accommodating up to 250 delegates. The four meeting rooms are room One, which can accommodate up to 30 people seated cinema-style, room Two (90 people), room Three (60 people banqueting-style) and room Four, which accommodates 16 delegates. The number of delegates that each room can take is subject to the seating arrangement.

www.elidz.co.za

An attractive business and investment destination

The Stortemelk Hydropower Plant in the Free State Province. Picture source: Murry and Dickson Construction.

Investing in the Free State Province

Free State Province is situated in the heart of South Africa and shares borders with Lesotho and six other provinces. It provides easy access to the main ports of Durban, East London and Port Elizabeth.

The Free State is an attractive business and investment destination. The province is at the centre of South Africa and the dominant sectors are agriculture, mining, manufacturing and the tertiary sectors, making it ideal for transport logistics and agro-processing.

Companies locating to Free State not only enjoy the opportunity to source inputs at competitive prices, but also to benefit from domestic, regional and international markets for their products and services. Because South Africa has been engaging with our economically large trading partners, access to international markets is facilitated through various trade preferences and free-trade agreements.

As far as long-term investment is concerned, there are industrial parks and a Special Economic Zone (SEZ) that are supported by the Department of Trade, Industry and Competition. Industrial parks are situated in Maluti-A-Phofung, Botshabelo and Thaba Nchu. Maluti-A-Phofung SEZ is situated in Tshiame.

The Free State’s strengths for inward investment are boosted by:
  • openness to business, trade and foreign investment;
  • abundance of natural resources;
  • low factory rentals;
  • incentive packages uniquely developed for Special Economic Zones;
  • incentives associated with the revitalised industrial parks;
  • Free State Development Corporation (FDC) support services for priority sectors such as agro-processing and manufacturing;
  • a large labour pool;
  • diverse cultures;
  • competitive land and building cost;
  • world-class transport and telecommunications infrastructure;
  • an idyllic climate and recreational and lifestyle facilities.

Select investment opportunities available in:

  • Agriculture and agro-processing
  • Tourism and property development
  • Medical and pharmaceutical production and distribution
  • Manufacturing
  • Renewable and clean energy
  • Medical tourism

Domestic and international investors are invited to invest in South Africa’s most centrally located province

MP Mohale, MEC for Economic, Small Business Development, Tourism and Environmental Affairs.

MEC for Economic, Small Business Development, Tourism and Environmental Affairs, MP Mohale, outlines how human capital formation is at the heart of the creation of a conducive environment for investment in the Free State Province.

It is with pleasure and gratitude that we, as the department charged with promoting investment into the Free State Province, introduce Free State Business 2020 edition. We welcome this well-known publication’s regular description of the economic environment of our province and are pleased to contribute to its pages.

Our department also published a dedicated investment prospectus. The purpose of the Free State Investment Opportunities Prospectus is to provide pertinent information about large-scale investment opportunities currently available in various sectors. These initiatives represent the Free State’s response to President Ramaphosa’s clarion call for increased long-term investment necessary for inclusive growth and job creation.

Contact the DESTEA below for a copy of the Free State Investment Prospectus.

While investment is an essential ingredient to economic growth, it should be pointed out that at the centre of the Free State government’s economic development strategy is human capital formation and development through universities and colleges, and various institutions pursuing innovation and offering proof-of-concept services, to name a few.

The Free State is poised to become a laboratory for excellence in education outcomes, research and innovation, particularly in the fields of health, agriculture, agro-processing, manufacturing, water management, ICT, pharmaceuticals and rural development.

Domestic and potential investors from around the world are invited to contact the DESTEA:

[contact-form-7 id=”14410″ title=”Free State DESTEA”]

Get more Free State business and investment insight (digital journal):

….or explore Free State regional content 
1...727374Page 74 of 74
Facebook Instagram Linkedin Twitter
© 2023 | Website powered by TurboWP |