Free State Business 2017 edition

FREE STATE
BUSINESS
2017 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE FREE STATE PROVINCE
JOIN US ONLINE
WWW.FREESTATEBUSINESS.CO.ZA
Mangaung
Metropolitan

Sasolburg Operations –
cornerstone of Sasol’s
South African footprint
Sasol transformed from a single
petrochemical site, today known
as Sasolburg Operations, to an
international integrated chemicals
and energy company that leverages
technologies and the expertise of
30 400 people working in 36 countries.
Sasol develops and commercialises
technologies, and builds and operates
world-scale facilities to produce a
range of high-value product streams,
including liquid fuels, chemicals and
low-carbon electricity.
As a Regional Operating Hub,
Sasolburg Operations remains one of
the cornerstones of Sasol’s Southern
African footprint, contributing to job
creation, sustainable development
and security of supply in chemicals. On
our three operating sites in Sasolburg,
being the Sasol One, Midland and
Bunsen sites, we produce products
such as wax, ammonia and ammonia
nitrate, ethylene, solvents, acrylic
acids, chlorine, cyanide and PVC, while
also generating low-carbon electricity.
A R16,4 bilion capital expenditure
investment at Sasolburg Operations
initiated in 2009, has substantially
increased our wax production,
expanded our polyethylene production
and enables us to generate low-carbon
electricity.
We also play a constructive role as
an active corporate citizen through
various social investment initiatives.

Sasol Business Incubator accelerates
SMME development
A growing SMME sector is vital for
broadening economic participation
and delivering on the economic
development objectives of our host
communities.
Sasol therefore developed the
Sasol Business Incubator (SBI) in
Sasolburg through a public-private
partnership between Sasol and the
Department of Trade and Industry
(the dti) to accelerate the successful
development primarily of local start-up
small, medium and micro enterprises
(SMMEs).
The incubator provides an array of
business, technical and financial
related support solutions as well as
fully equipped manufacturing facilities,
essential business infrastructure and
a network of experts and services.
Our approach is to nurture, grow and
sustain SMMEs by providing technical
and business development support,
through mentoring and coaching.
For more information, contact us on
016 960 3763 or info.esd@sasol.com.
Learn more at www.sasol.com.

CONTENTS
CONTENTS
Free State Business 2017 Edition
Introduction
Foreword 4
Free State Business is a unique guide to business, investment and tourism
in the province.
A commitment to inclusive growth 5
CEO of the FDC Ikhraam Osman invites business people to explore the
opportunities on offer in the Free State.
Special features
Regional overview of the Free State 6
New infrastructure and incentives to manufacturers are attracting
investments to the Free State Province.
Free State Development Corporation opportunities 10
The Free State Development Corporation is driving a number of exciting
investment opportunities in the Free State province.
South African economy at a glance 22
Insight into the performance of the South African economy is provided
through these graphical representations of key statistics.
SA investment incentives 26
The South African government, particularly the Department of Trade
and Industry, has a range of incentives available to investors, existing
companies, entrepreneurs and co-operatives across many sectors.
Establishing a business in SA 28
The barriers to doing business in South Africa have been eased for local
and international companies.
FREE STATE BUSINESS 2017
4

Letsemeng
Tokologo
Xhariep
Mohokare
Metsimaholo
Fezile Dabi
Mafube
Ngwathe
Nala
Moqhaka
Phumelela
Nketoana
Matjhabeng
Thabo Mofutsanyana
Tswelopele
Maluti-a-Phofung
Lejweleputswa
Dihlabeng
Setsoto
Masilonyana
Mangaung
Kopanong
Naledi
Mantsopa
Metropolitan/District
Municipality boundary
Local Municipality Boundary
District Municipality Xhariep
Local Municipality
Naledi
Economic sectors
CONTENTS
Agriculture 40
The grain-rich Free State is investing in poultry operations.
Mining 43
Diamond mines are expanding production.
Oil and gas 46
Sasolburg is at the heart of South Africa’s oil and gas industry.
Manufacturing 48
The Free State’s Special Economic Zone is attracting new
manufacturing investment.
Transport and logistics 50
The Free State is a logistics hub.
Tourism 55
Cultural tourism is a new focus for the Free State.
Education and training 58
Access to education is growing fast in the Free State.
Government
Free State provincial government 60
A guide to the provincial government departments.
Free State local government 62
A guide to metropolitan, district and local municipalities.
Reference
MUNICIPALITIES IN THE FREE STATE
North West
Gauteng
Mpumalanga
Sector contents 38
Northern Cape
N
Eastern Cape
KwaZulu-
Natal
LESOTHO
Maps
Regional map 9
Municipal map 63
5 FREE STATE BUSINESS 2017

MESSAGE
Free State Business
A unique guide to business and investment in the Free State.
Free State Business 2017 is the seventh edition of this highly
successful publication that has since its launch in 2008 established
itself as the premier business and investment guide
to Free State Province. Supported and utilised by the Free
State Development Corporation (FDC), Free State Business is unique
as a business journal that focuses exclusively on the Free State. It
has an independently audited and verified print run of 10 000
copies, an e-book edition hosted at www.freestatebusiness.co.za, and
a monthly e-newsletter for up-to-date news and announcements.
Global Africa Network Media (www.gan.co.za), the publisher
of Free State Business, specialises in business-to-business print and
electronic publications, producing a series of region-specific annual
print journals. Every province in South Africa is covered by this unique
range of journals and websites, complemented by a national title,
South African Business, and the business matchmaking online platform
Matchdeck.com.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
CREDITS
Publisher: Chris Whales
Publishing director:
Robert Arendse
Editor: Simon Lewis
Writing: John Young,
Karen Kühlcke, and Simon Lewis
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Colin Carter
Production: Lizel Oliver
Ad sales: Sam Oliver,
Gabriel Venter, Jeremy Petersen,
Nigel Williams, and
Sydwell Adonis
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
Free State Business is distributed internationally on outgoing
and incoming trade missions, through the Free State
Development Corporation (FDC); 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, trade and investment agencies,
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
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1999-5059
COPYRIGHT | Free State 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 | COVER: Sibanye Gold’s Beatrix 3 Shaft
Photographer: Cindy Brown. Pictures supplied by flickr.com,
Anglo American, Wikimedia Commons, Afrox, Free State Tourism,
RailnetPictures, and Pixabay.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in Free State 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.
FREE STATE BUSINESS 2017
6

MESSAGE
A commitment to
inclusive growth
CEO of the FDC Ikhraam Osman invites business people
to explore the opportunities on offer in the Free State.
IKHRAAM OSMAN
CEO, Free State Development
Corporation
The period from 2010 has
been characterised by a
global economic slowdown,
which has also affected
emerging markets. Growth in
the BRICS countries (Brazil, Russia,
India, China and South Africa) has
declined from about 9% in 2010
to 4% in 2015.
Both external and domestic
as well as cyclical and structural
factors have contributed to the
slowdown in emerging markets.
Generally, external factors have
been the main cause of the
slowdown and these factors
include weak global economic
performance due to falling
commodity prices.
However, South Africa has
made impressive social progress
over the past two decades, lifting
millions of people out of poverty
and broadening access to essential
services like water, electricity
and sanitation. Now is the time to
build on these successes to reduce
inequality further, create badly needed jobs and ensure stronger, sustainable
and more inclusive growth for all according to the OECD Survey 2015.
Economic growth in South Africa has not been inclusive enough
during the first 22 years of democratic South Africa. Government is
tackling infrastructure bottlenecks and improving business regulations
that could boost job creation. Improving wage negotiations and job
matching would also promote more inclusive growth.
In line with the Free State Growth & Development Strategy (FSGDS)
and the FDC Act (Act No 6 of 1995), the FDC will continue to unlock
business opportunities for both local direct and foreign direct investors
in an effort to broaden access to economic prosperity.
This 2017 Free State Business publication presents the Free State province’s
value proposition as a business and tourism destination. The
province is open for business as is demonstrated annually through the
hosting of the Free State Global Investors Trade Bridge. The event is
complemented by “Macufe”, the Mangaung African Cultural Festival
that annually brings up to 150 000 travellers into Bloemfontein or “the
City of Roses” as it is commonly known.
We invite visitors to explore some of the key opportunities in the Free
State, which include the following:
• The fact that the province is a leading agricultural commodities
producer, presenting significant opportunities across the agroprocessing
value chain
• Mangaung Metropolitan Municipality has announced a R100-billion
infrastructure investment programme to unlock business, retail, real
estate and infrastructure development along the N8 Corridor
• A newly gazetted Special Economic Zone attracting investments in
food processing, manufacturing, logistics and beverages
The FDC investment facilitation team would help you to explore business
opportunities in the Free State and assist you to set up and operate a
business here. For more information, please peruse this business guide.
www.fdc.co.za
7 FREE STATE BUSINESS 2017

A REGIONAL OVERVIEW OF
FREE STATE
PROVINCE
Growing a diverse economy
New infrastructure and incentives to manufacturers are attracting investments to the
Free State Province. Two of the great pillars of the provincial economy — agriculture
and mining — remain important but there are exciting growth shoots in new sectors
such as solar energy, manufacturing and gas.
The third 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
expanding production of its various products.
Chief among the infrastructure that has been put
in place is the Maluti-A-Phofung Special Economic
Zone at Harrismith. This zone offers attractive investment
incentives and leverages the site’s position on
the busy N3 highway to promote enterprises in the
logistics sector. Parks within the SEZ are designed
to encourage companies from related sectors such
as agri-processing.
A new water pipeline from the Gariep Dam is
being built to serve the Xhariep District and the
Mangaung Metro. A steady and reliable water source
is an important component in attracting investment.
The first Free State Global Investor Trade Bridge
in 2015 resulted in agreements that were signed
between the province and delegations from Angola,
China, Russia, Turkey and India. The SEZ was an
important element in selling the province’s attractiveness
as an investment destination.
Five major, national highways intersect the centrally
located province, which is also well served
by rail and air links. The Bram Fischer International
Airport in the provincial capital city of Bloemfontein
is the site of a multi-phase industrial and commercial
development. Two leading universities (the
University of Free State and the Central University of
Technology) have several campuses across the province.
In 2016, the provincial government’s internship
programme supported more than 500 graduates.
There are currently 279 students placed in provincial
departments and municipalities as interns. A potentially
game-changing development in the local
economy is the building of a R200-million helium
extraction plant to exploit a natural gas and helium
field, which has been identified near the towns of
Virginia, Welkom and Theunissen. With proven reserves
of 25-billion cubic feet, the rights to the field
are owned by Renergen and they will be worked by
Afrox, a subsidiary of the Linde Group of Germany.
FREE STATE BUSINESS 2017
8

SPECIAL FEATURE
the rural economy and provide opportunities for
investors.
Gold is mined mainly in the north-western
parts of the province, in two clusters. AngloGold
Ashanti has assets on the border of the Free State
and North West provinces, as well as several mines
in the Welkom-Virginia belt. Sibanye Gold mines the
Beatrix Gold Mine in the latter area. Coal is mined in
the north to feed power stations. Mining makes up
10% of provincial GDP.
The Free State shares its 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 (50%) and
maize (45%). As such, it is ranked third in contribution
to national GDP in agriculture, despite accounting
for only 5% of South Africa’s overall GDP (FNB
Chartbook).
Another emerging sector is solar energy. The
Xhariep, Lejweleputswa and Mangaung regions
have among the best direct solar radiation
kWh/m² in the country. The Renewable Energy
Independent Power Producer Procurement
Programme, is creating opportunities for private
investors to build and operate solar generation
plants in the Free State. Rezoning for solar
farms has already taken place in Theunissen,
Bloemfontein, Fauresmith and Hoopstad.
In rural areas, the provincial government intends
rolling out Agri-parks. These hubs, which will
include processing facilities, are intended to help
small-scale farmers expand their operations, but
should also provide opportunities for existing enterprises
to invest in new markets. Infrastructure to
support these parks has begun at Parys, Tshiame,
Thaba Nchu, Springfontein and Wesselsbron.
In a similar vein, the use of small towns such
as Cornelia, Tweeling, Excelsior and Tweespruit
as hubs under the Comprehensive Rural
Development Programme (CRDP) should boost
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 municipality
was formed after the local government elections
in May 2011. 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. The languages spoken in the area are mainly
Sesotho, Afrikaans, English and Setswana.
Bloemfontein, which is responsible for about 25%
of provincial GDP, is at the centre of a development
node known as the N8 Corridor, which is intended
to boost development along the road from Lesotho
to Kimberley and Upington in the North West prov-
9
FREE STATE BUSINESS 2017

SPECIAL FEATURE
ince. Several projects are under way in and around
the provincial capital, including an Airport Node
(logistics, supply chain, flats, shopping malls), Naval
Hill (projected new hotel in the nature reserve) and
expansion of Hamilton Business Park.
The city’s Fresh Produce Market is an important
cog in the distribution of agricultural produce in
the region while it is connected to all other centres
by good rail and road links. There is a marshalling
yard, a petroleum depot and two airports (one
military). The National Supreme Court of Appeal is
located in Bloemfontein and the National Museum
has superb rock art exhibits.
Xhariep District Municipality
Towns: Trompsburg, Koffiefontein, Zastron,
Philippolis, 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. Crops are produced in the
northern parts of the district whereas sheep farming
predominates in the south. Trompsburg 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.
Fauresmith hosts an annual horse endurance
race and Smithfield is the venue for a “Chill” festival
every winter, the “Bibber Fees”. The steel bridge
over the Caledon River at Wepener is a national
monument.
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 well-earned. It hosts an annual
maize industry festival and conferences, NAMPO,
and it is where Grain SA has its headquarters.
The 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 2nd biggest
after Mangaung, contributing approximately
28% to the GDP. The Fezile Dabi area is mostly
FREE STATE BUSINESS 2017
10

Ulco
Northern
Cape
De Aar
Smithfield
Bethulie
Rouxville
Zastron
SPECIAL FEATURE
Potchefstroom
Balfour
Vereeniging
Ottosdal Klerksdorp
Parys Lethabo Mpumalanga
Sasolburg
N12
Vredefort
Standerton
Wolmaransstad
Viljoenskroon
Villiers
R30
N1
Heilbron
North West
Frankfort
Volksrust
Bothaville
R34
R57
Bloemhof
Vrede
Kroonstad
N3
Hoopstad
Odendaalsrus
Reitz
Newcastle
Christiana Wesselsbron
R76
Warden
Welkom
R26
Virginia
Ventersburg
Warrenton
R70
Theunissen
Harrismith
Bultfontein
N5 Bethlehem
Senekal
Van Reenen
Clarens
Phuthaditjhaba
Dealesville
Winburg
Fouriesburg Golden Gate
Ladysmith
R64
National Park R74
Marquard
Ficksburg
N3
Colenso
N8
Clocolan
Winteron
BLOEMFONTEIN
Jacobsdal
Petrusburg
Thaba Nchu
Estcourt
N12
Ladybrand
Botshabelo
R26
Hobhouse
Koffiefontein
N1
MASERU
Edenburg Dewetsdorp
LESOTHO KwaZulu-
Wepener
Underberg Natal
N6
Trompsburg
FREE STATE PROVINCE
N
KIMBERLEY
Eastern Cape
Gauteng
Motorway
Main Road
Railway
dominated by the industrial power of Sasol, with
the manufacturing of refined petroleum, coke
and chemical products adding largely to its GDP.
The establishment of ChemCity, a wholly owned
subsidiary of Sasol, has also added a business incubator
that allows SMMEs to feed off and diversify from
the opportunities that prevail due to the energy
consortium operating in the area.
Thabo Mofutsanyana District Municipality
Towns: Phuthaditjhaba, Bethlehem, Tweespruit,
Ladybrand, Clarens, Harrismith, Vrede, Ficksburg
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 Highlands National Park.
Industrial activity is undertaken at Harrismith
and Phuthaditjhaba, where the Free State
Development Corporation is promoting investment.
The 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 a major sunflower seed
production centre.
The Basotho Cultural Village in Qwaqwa offers
beautifully made crafts, and rock paintings can be
seen as illustrations of the artistic skills of much
earlier inhabitants of the area.
REGION GDP IN 2015
Mangaung 33%
Xhariep 5%
Lejweleputswa 18%
Thabo Mofutsanyana 18%
Fezile Dabi 28%
Contribution to GDP in 2015.
11
FREE STATE BUSINESS 2017

FOCUS
Free State Development Corporation
investment opportunities
The Free State Development Corporation is driving a number of exciting investment
opportunities in the Free State province.
BIO-MEDICAL PARK
To develop a world-class bio-medical facility
designed to host research laboratories, exportorientated
pharmaceutical companies, biotechnology
and medical research companies to
develop competitive pharmaceuticals products,
services and technologies.
Concept
To develop world-class infrastructure to support
incubation of a network for newly established
export-oriented medical bio-technology companies
and provide:
• A platform for a joint research and research
collaboration between universities and biotechnology
companies.
• To migrate both the University of Free State
(UFS) and Central University of Technology
(CUT) registered research patents into new
business opportunities.
Location
Bloemfontein, within N8 Corridor.
Investment Required
R400-million.
ACTIVE PHARMACEUTICAL
INGREDIENTS
A private-sector investor is required to establish
an Active Pharmaceutical Ingredients (API)
facility in the Free State province.
Concept
Setting up an Active Pharmaceutical Ingredient
(API) and Oral Solid Dosage (OSD) for the manufacture
of ARVs for the treatment of HIV, malaria
and insulin.
Project Requirements
A leading pharmaceutical technology partner
and investor with a synthesis process is required
to partner with local investors that have
expressed an interest to set up and operate an
API and OSD manufacturing facility in Sasolburg.
Investment Required
Investment estimated at R720-million.
Location
Sasolburg – Metsimaholo.
To discuss these opportunities, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800
Email: frank@fdc.co.za | Email: info@fdc.co.za
FREE STATE BUSINESS 2017
12

FOCUS
FRANKFORT PAPER MILLS
The establishment of a Kraft paper factory that
will predominantly use waste container board
paper and virgin pulp to produce Kraft liner, linerboard,
fluting and semi-extensible sack Kraft.
Production capacity is about 180 000 tonnes
per annum.
Concept
The mill will use both virgin (20%) and recycled
pulp (80%) as raw material in its production
process with the aim of capturing small
and medium corrugators. Pulp to be used is
unbleached and manufactured by suppliers
using the Kraft process.
The Kraft process produces strong unbleached
papers that can be used for bags and boxes.
Location
Frankfort, Free State.
Milestones
• Feasibility phase.
• Project designs completed.
Project Requirements
• A technology partner and investor that is a
player in the wood and paper value chain is
required to partner with the IDC and local
paper convertors to establish and operate
Frankfort Paper Mill SA.
• Project partners will be responsible for bulk
t a k e - o ff.
Investment Required
Investment estimated at R1.4-billion.
To discuss this opportunity, contact
Lizeka Matshekga, Head: Forestry & Wood
Products Business Unit, Industrial
Development Corporation
Tel: +27 11 269 3779,
Email: lizekam@idc.co.za
Email: info@fdc.co.za
DPE & PVC PIPES MANUFACTURING
A private-sector investor is required to establish
and operate a plastic extrusion facility at Parys
in the Ngwathe Local Municipality.
Concept
Plastics extrusion is a high-volume manufacturing
process in which raw plastic is melted
and formed into a continuous profile. Extrusion
produces items such as pipe/tubing, weather
stripping, fencing, deck railings, window frames,
plastic films and sheeting, thermoplastic coatings
and wire insulation.
Project Requirements
A technology partner is required for individual
investors that have expressed interest.
Investment Required
Investment required is estimated at R10-million.
Manufactured products and manufacturing
processes must be SABS-certified.
To discuss this opportunity, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade &
Investment
Tel: +27 51 4000 800
Email: frank@fdc.co.za
Email: info@fdc.co.za
13 FREE STATE BUSINESS 2017

FOCUS
BETHLEHEM SAND MINING PROJECT
MEDICAL WASTE TREATMENT
There is an opportunity to establish a sand mining
business 6km outside Bethlehem – called Bethlehem
Water and Sand (Pty) Ltd – to supply Bethle
hem and the surrounding towns with build ing,
plaster and brick-making sand.
Location
Dihlabeng Local Municipality in Bethlehem.
Milestones
• Business plan completed.
• Geological report available.
• EIA completed and ROD is available.
• Mining permit obtained.
Project Requirements
The project sponsor requires capital injection
and participation by BEE partners with experience
in the sand mining value chain, or sand
distribution.
Investment Required
The project requires funding to the tune of
R120-million. The project has the potential to
create 120 jobs when fully operational.
STEEL FABRICATION PLANT
A technology partner and investor is required to
partner with a local investor to set up a medical
waste treatment facility.
Concept
To design a modern medical and solid waste
treatment facility. The company implements
Electro-Thermal Deactivation processes
to dispose of healthcare risk waste.
This is a non-burn technology that has
zero emissions. Pathogens are treated with
50 000V within the ETD (Microwave) and this
renders the waste clean and harmless.
Location
Virginia in Matjhabeng.
Investment Required
Estimated project cost R30-million.
To discuss opportunities on this page, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade &
Investment
Tel: +27 51 4000 800 | Email: frank@fdc.co.za
Email: info@fdc.co.za
To establish a steel fabrication manufacturing
plant in the Botshabelo Industrial Area.
Concept
• A local company is seeking a joint venture
with established industry players to set up and
operate a steel fabricating plant in Botshabelo.
• This project intends to respond to South
Africa’s local content requirements, expanding
South Africa’s Infrastructure Investment
Programme.
• The site earmarked for this project had been
secured and the EIA is in progress.
Project Requirements
• A local business partner is looking for international
players in steel fabrication to invest
in this business venture.
• The project requires an additional equity.
• The value of equity participation will be
negotiated on proposals received.
Location
• Virginia – Lejweleputswa.
• Required Investment to be determined at
feasibility.
FREE STATE BUSINESS 2017
14

Why invest in solar generation
plants in South Africa
FOCUS
• South Africa’s solar irradiation levels are among
the best in the world (>2 000kWh/m²).
• Transition to a cleaner energy mix (low carbon
path).
• Strong local content from government (glass,
mirrors).
• Strong, established local construction
companies.
• Experience in building power stations and mines.
• Current steel and pipes production meeting CSP
requirements.
• A target to generate 45% of all new electricity
from renewable sources by 2030.
• The ongoing success of the renewables procurement
programme and the growing interest of
international developers and funders are helping
South Africa to improve its rankings from nowhere
to top 10 investor in the world (Renewable
Energy Country Attractiveness Index - 2014).
• South Africa is the region’s clear leader for clean
energy development with record investments of
over US$10-billion in 2012 and 2013.
Drivers for PV & CSP investments
• Environmental issues such as pollution and
exploitation of natural resources.
• Climate change due to CO ²
emissions from
fossil fuels.
• Energy security through diversification of supply.
• Sustainable development.
NAME LOCATION COMMISSIONED CAPACITY STATUS OPERATOR INVESTMENT
LETSATSI PV
PROJECT
PULIDA SOLAR
PARK
BOSHOFF
SOLAR PARK
XHARIEP
SOLAR HUB
BLACKWOOD
ENERGY
SOLAR PLANT
EVEREST
SOLAR PLANT
GROOTKOP
SOLAR
FACILITY
Bloemfontein,
Tokologo LM
Jacobsdal
Under
Letsemeng LM August 2016 75MW construction
May 2014 64MW Operational Solar Reserve ±$293-million
Enel
Green Power
Tokologo LM November 2014 64MW Operational Sun Edison TBC
Kopanong,
Bethulie LM
Planned
600MW
Planned
Concept
develop ment
and project
design
Tokologo LM Planned 75MW Planned
Matjhabeng LM
Matjhabeng LM
Planned
Planned
75MW
Planned
75MW
Planned
New
development
New
development
Korean
Solar Power
Consortium
New
development
FRV Energy
South Africa
FRV Energy
South Africa
Land: 220ha
Land: 1 200ha
TBC
Project occupies 180ha
of the Farm Beyers 186
(393ha)
Project will occupy
180ha of the Farm
Beyers 186 (393ha)
Power plants planned, under construction and operational
15 FREE STATE BUSINESS 2017

FOCUS
SOLAR GENERATION PARKS
The project aim is to recruit a private investor to
set up a solar park in the Xhariep, Lejweleputswa
and Mangaung regions, as these offer some of the
best direct solar radiation (kWh/m²).
Process
Investors’ may participate in both off-grid and
on-grid supply solutions. Off-grid is where the
solar generation plant is directly supplying an
independent user or seller, for example a mine
or an industrial estate. On-grid is where investors
participate in South Africa’s successful
Renewable Energy Independent Power Producer
Procurement (REIPPP) Programme managed by
the Department of Energy (DOE) and finally supply
the grid.
Projects Location
Xhariep District, Mangaung Metro as well as
Lejwele putswa.
Conversion Technologies
Both photovoltaic modules and concentrated
solar power (CSP) plants conversion technologies
can be implemented.
SOLAR WATER HEATERS
A private investor is required to set up a solar
water heaters manufacturing plant in Botshabelo
Industrial Area. The manufacturing process may
involve the following:
• Fabrication of panel storage tanks.
• Assembly of tank, panel coil and other
components.
• Inspection and commissioning.
• Required raw materials for the manufacturing
of solar water heaters are copper aluminium MS
sheet, pipe, glass fibre, GI sheets, thermostat,
insulation material.
Why Solar Water Heaters
• Eskom electricity demand management
programme.
• Strong local content on SWH procurement by
DOE and Eskom.
• Financial and technology capabilities to manufacture
and supply locally produced systems.
• Construction Sector Education Training
Authority (CETA) and Energy Sector Education
Training Authority offers accredited Level 4
plumbing qualification.
• Availability of plumbing skills currently serv ing
the mining, gas and petroleum industries.
Location
Botshabelo within the N8 Corridor.
Investment Required
To be determined at feasibility.
To discuss these opportunities, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800 | Cell: +27 71 674 5730
Email: frank@fdc.co.za | Email: info@fdc.co.za
FREE STATE BUSINESS 2017
16

FOCUS
GREEN ENERGY IT
Green Energy is a South African company that
assembles solar home lighting systems. The
idea behind this project is to contribute towards
harnessing solar energy to generate power.
Location
The company intend to locate its solar home
lighting manufacturing plant in Maluti-A-Phofung.
Milestones
FDC financed seed funding to the tune of
R210 000 for the following:
• Product development to redesign its products
so that they can meet international standards
for export market.
• IP registration.
• Business case development to solicit financial
and possibly technology partner for future
growth.
• A team of three are driving business
development.
Investment Required
The project requires an experienced technology
partner that is a player within the solar and LED
lights value chain and an investor that will guarantee
take-off of products manufactured.
To discuss this opportunity, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800
Email: frank@fdc.co.za
Maluti-A-Phofung SEZ
investment opportunities
Maluti-A-Phofung Special Economi c Zone
(SEZ) has been established in terms of
the Special Economic Zones Act, Act No.
16 of 2014. The programme is intended
to deepen industrial development and improve
manufacturing competitiveness in the Maluti-A-
Phofung Municipality.
Located in Harrismith and Tshiame in the Eastern
Free State, MAP IDZ is strategically located on the N3
national road, halfway between Johannesburg and
Durban. M-SEZ offers in total up to 1 000 hectares
of land for industrial development. Since Durban
port is the busiest in the southern hemisphere, this
therefore means that N3 carries majority of the traffic
to different locations in South Africa and the neighbouring
countries such as Lesotho and Swaziland.
The MAP ESZ constitutes the Free State leg of the
massive Durban-Free State-Gauteng logistics and
industrial corridor that is intended to strengthen
the logistics and transport corridor between South
Africa’s main industrial hubs to:
• Improve access to Durban’s export/import facilities.
• Integrate Free State Industrial Strategy activities
into the corridor.
• Build a new port in Durban.
• Expand an aerotropolis around OR Tambo
International Airport.
SEZ Project Pipeline
There are already 18 manufacturing companies
(ranging from pharmaceutical to automobile companies)
that have signed letters of intent to locate
in the MAP SEZ. Some of the sectors targeted for
establishment within the MAP SEZ are as follows:
• Pharmaceuticals.
• Medical devices.
• Logistics and distribution.
• Agro-processing.
17 FREE STATE BUSINESS 2017

FOCUS
• Food processing.
• Trade facilitation.
• Rail-based container terminal
(Transnet Freight Rail).
• Automotive cross docking facilities.
• Logistics and supply chain management.
• Information & Communi cation Technology.
• Logistics.
Benefits
Benefits that will be derived from locating within
MAP SEZ includes:
• 15% Corporate Tax, national is 28%.
• Building Allowance.
• Employment Incentive.
• Customs Controlled Area.
• 12i Tax Allowance.
MAP SEZ Milestones
• MAP SEZ company fully operational.
• Maluti-A-Phofung SEZ operator permit granted by
Minister of Trade & Industry after cabinet approval.
• Perimeter fencing has been completed.
• Bulk infrastructure roll-out is in process.
• Marketing and promotion to build a robust IDZ
project pipeline is in process.
MEDICAL EQUIPMENT AND DEVICES MANUFACTURING
The FDC has signed an investment agreement
with two leading Chinese companies (in the
medical devices and electronic equipment value
chain) to establish a medical devices and medical
apparatus and instrumentation manufacturing
plant in the newly designated Maluti-A-Phofung
SEZ.
Location
Maluti-A- Phofung SEZ.
Milestones
• Investment agreement signed.
• South African subsidiary of the Chinese
company (Medipro) has been registered.
• Negotiations to fast-track investment are in
process.
• The company has CE certification.
Investment Required
Investment estimated at R600-million.
TYRE MANUFACTURING
The establishment and operation of a
10 000-tyre-a-day automotive tyre manufacturing
plant to manufacture tyres for wellknown
brands such as Dunlop, Kumho, etc.
Location
Industriqwa (Harrismith).
Milestone
• Concept developed.
• Marketing opportunity to prospective investors.
Project Requirements
Required investment estimated at R200-million.
To discuss these opportunities, contact
Sipho M. G. Tshabalala,
Marketing & Communications Manager
Tel: +27 51 4000 804
Cell: +27 78 076 8676
Email: Sipho@mapsez.co.za
Website: www.mapsez.co.za
FREE STATE BUSINESS 2017
18

FOCUS
VEHICLE DISTRIBUTION CENTRE
FOOD PROCESSING PARK
This project is intended to position Harrismith as
a Vehicle Distribution Centre (VDC). Studies by
logistics integration service providers have indicated
that FS has the best potential to be a warehousing
and logistics centre due to its proximity
to the Gauteng market and links through N3 to
Durban Port and Coega through the N1 and N6.
Location
MAP IDZ Logistics Service Providers precinct.
Milestones
• Concept developed.
• Business plan completed.
• Expression of interest to invest sourced.
• Marketing the opportunity to prospective
investors.
Investment Required
Investment estimated at R250-million.
The building of a world-class, integrated food
processing park to include food processing,
warehousing, cold storage and manufacturing
facilities to enhance production efficiencies.
Location
MAP SEZ food processing precinct.
Milestones
• Concept developed.
• Business plan completed.
• Marketing the opportunity to prospective
investors.
Investment Required
Investment estimated at R750-million.
To discuss these opportunities, contact
Sipho M. G. Tshabalala,
Marketing & Communications Manager
Tel: +27 51 4000 804 | Cell: +27 78 076 8676
Email: Sipho@mapsez.co.za | Website: www.mapsez.co.za
19 FREE STATE BUSINESS 2017

FOCUS
ROOFSHEET MANUFACTURING
Concept
The FDC is keen to facilitate the production of
roofsheets made from corrugated iron, IRB and
chromadek.
Location
Matjhabeng Local Municipality.
Investment Required
R25-million in capital expenditure is needed.
APPLE PRODUCTION
Concept
Investment is required to add 2 000ha of apple
orchards on agricultural land in the Eastern
Free State.
Location
Maluti Fruit, a pack house in Bethlehem, Free State,
has launched Remmoho, a BEE project that will focus
on increasing apple production in the province.
One of the advantages of growing apples in the
Free State is that the fruit from the region is the first
to be harvested during the Southern Hemisphere
growing season – a full two to three weeks before
fruit from the more traditional growing areas in the
Western Cape.
A business plan has been completed and would be
available to prospective investors.
To discuss these opportunities, contact
Gontse Morakile, Tel: +27 51 400 4924
Email: morakileg@detea.fs.gov.za
MINING TOURISM
Concept
Convert an old, unused mining shaft into a tourist
attraction that will enable people to experience
life below the surface.
Location
Virginia (Matjhabeng).
Investment Required
R300-million.
JEWELLERY MANUFACTURING
Concept
An opportunity exists to set up a jewellery design
and manufacturing operation adjacent to an
existing jewellery school.
Location
Virginia (Matjhabeng).
Investment Required
R20-million.
To discuss these opportunities, contact
Mpolokeng Mokalobe, Tel: +27 51 400 9585
Email: mokalobem@detea.fs.gov.za
FREE STATE BUSINESS 2017
20

FOCUS
CLOTHING MANUFACTURE
Concept
There are plans to establish a Cut, Make and Trim
(CMT) factory in order to manufacture clothing
in the Free State.
Location
Maluti-A-Phofung Municipality (QwaQwa).
Investment Required
Finance is sought for purchase of machinery
and working capital for 12 months.
WASTE RECYCLING
Concept
The establishment of a plant for waste recycling
and conversion into usable products as well as the
generation of energy from waste.
Location
Mangaung Metropolitan Municipality
(Bloemfontein, Botshabelo and Thaba Nchu)
Investment Required
R65-million
A business plan has been completed and would
be available to prospective investors.
LED LIGHT MANUFACTURE
TOOLING AND MACHINERY
MANUFACTURE
Concept
Manufacturing of metal, steel and plastic products
for automotive, rail, aviation, mining and other
similar industries.
Location
Botshabelo.
Investment Required
R15.1-million in capital expenditure is needed.
To discuss these opportunities, contact
Frank Tlhomelang, Manager: Research &
Development & Acting Head: Trade & Investment
Tel: +27 51 4000 800
Cell: +27 71 674 5730
Email: frank@fdc.co.za
Concept
The manufacture and retail of light-emitting
diodes (LEDs).
Location
Anywhere within the Free State.
Investment Required
R15-million.
TEXTILE MANUFACTURING
Concept
To establish a textile manufacturing facility producing
spun yarn and woven cloth for supply to
Cut, Make and Trim (CMT) facilities in the Free State
and the rest of South Africa.
Location
Maluti-A-Phofung Municipality (QwaQwa).
Investment Required
R76-million is required.
To discuss this opportunity, contact
Gontse Morakile, Tel: +27 51 400 4924
Email: morakileg@detea.fs.gov.za
21
FREE STATE BUSINESS 2017

FOCUS
POULTRY PRODUCTION AND
PROCESSING
Concept
The intention is build 10 x 40 000 broiler houses,
10 x 220 000 broiler hatcheries and 8 x 20 000 layer
houses.
Location
These facilities could be located in the following
municipalities: Lejweleputswa, Fezile Dabi, Thabo
Mofutsanyana.
Investment Required
R6.5-billion is required to increase the size of the
poultry production market in the Free State.
PRODUCTION OF SUNFLOWER,
SOYA, BEANS AND LUCERNE
Concept
The FDC is promoting an opportunity to increase
the production of sunflower, soya beans, dry
beans and lucerne. If investment is forthcoming
448 981ha could be put into production by 2030.
Location
Various agricultural areas in the Free State.
Investment Required
An estimated R585.8-million is needed.
To discuss these opportunities, contact
Pilot Nchabeleng , Tel: +27 51 861 8509
Email: pilotnchabeleng@gmail.com
Free State trade opportunities
The Free State province offers a wide range of trading opportunities
The Free State’s main exports are:
• Mineral products.
• Plastics and articles thereof.
• Chemical products.
• Vehicle and transport equipment.
• Agricultural equipment.
• Semi-precious stones, metals, imitation jewellery.
• Base metals and articles thereof.
• Textile and textile articles.
• Vegetable and fruit products.
• Wood and articles of wood.
• Raw hides and skins, leather and articles thereof.
• Medical or surgical instruments and apparatus.
• Live animals.
Additional breakdown of products:
• Minerals (gold, coal, diamonds, clay, limestone,
salt, gypsum, granite, sand stone aggregates).
• Agriculture (maize, wheat, sorghum, potatoes,
sunflower, red meat, vegetables, dry beans, fruit,
peanuts, wool, poultry, dairy, cherries).
• Floriculture (cut flowers).
• Chemicals (fuels, waxes, synthetic fuel, liquid
carbons).
• Agricultural machinery and equipment.
• Vehicles (trailers).
• Arts and crafts.
FREE STATE BUSINESS 2017
22

Reasons to invest in the Free State
FOCUS
The Free State offers an abundance of opportunities for local and international investors
and traders, through the Free State Development Corporation.
About the Free State
Situated in the heart of South Africa, the Free State
is the country’s third-largest province and borders
Lesotho as well as six of the eight other provinces,
including the country’s economic centre, Gauteng.
The Free State is an ideal trading partner both
within South Africa, and with Africa and other international
markets. The province has excellent infrastructure
and transport links, and provides easy
access to the main ports of Durban, East London
and Port Elizabeth.
Factors that favour investment in the Free State
Factors positioning the province as a favourable
business and investment destination:
• Centrally located with easy access to markets
within South Africa and Africa.
• Availability of a large and affordable labour
pool.
• Excellent infrastructure (roads,rail, airports, offices,
education, banking and medical facilities).
• Competitive land and building costs.
• Low factory rentals.
• Abundance of natural resources.
• Recreational and lifestyle facilities.
• Most developed telecommunications network
in Africa.
• Open to business, trade and foreign investment.
• Availability of required skills pool.
• Attractive investment regime.
THE FREE STATE DEVELOPMENT CORPORATION OFFICE DETAILS
HEAD OFFICE
FDC House, 33 Kellner Street, cnr of Markgraaf
Street, Westdene, Bloemfontein 9300
Tel: +27 51 4000 800 | Fax: +27 51 447 0929
MOTHEO DISTRICT OFFICES
Botshabelo Office
35 Orange Str, Industrial, Botshabelo 9781
Tel: +27 51 534 1101/02/03 | Fax: +27 51 534 1104
Thabo-Nchu/Motheo Office
102 Manyane High Way, Selosesha, Thaba Nchu 7983
Tel: +27 51 873 3901 2476 | Fax: +27 51 873 3402
XHARIEP DISTRICT OFFICE
Xhariep Office, Cnr Van Riebeeck and
Voortrekker, Khoisan Building, Trompsburg 9913
Tel: +27 51 713 0342/3 | Fax: +27 51 713 0342
THABO MOFUTSANYANA DISTRICT OFFICES
Thabo Mofutsanyana Office
357K Clubview, Phuthditjhaba
Tel: +27 58 714 0060/64
Fax: +27 58 714 0071
Industriqwa/Harrismith Office
Cnr Amanda & de Lange, Tshiame A,
Harrismith 9880
Tel: +27 58 635 1112
Fax: +27 58 973 2603
FEZILE DABI DISTRICT OFFICES
Fezile Dabi Office
31 NJ Van der Merwe Crescent, Sasolburg 1942
Tel: +27 16 976 8944/5
Fax: +27 16 973 2603
For additional information on trading opportunities please contact
the Free State Development Corporation on +27 51 400 0800.
www.fdc.co.za
23 FREE STATE BUSINESS 2017

SPECIAL FEATURE
South African economy at a glance
Insight into the performance of the South African economy is provided through these
graphical representations of key statistics.
ZIMBABWE
NAMIBIA
BOTSWANA
Limpopo
0.9% (7.1%)
MOZAMBIQUE
North West
-3.6% (6.5%)
Gauteng
2.1%
(34.3%)
Mpumalanga
2.7%
(7.5%)
SWAZI-
LAND
Northern Cape
2.8% (2.1%)
Free State
1.8%
(5%)
LESOTHO
KwaZulu-
Natal
2.3%
(16.1%)
Western Cape
2.0% (13.6%)
Eastern Cape
1.0% (7.6%)
SA GDP: Percentage of growth per province (2014) and percentage
contribution to national GDP (figures in brackets).
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND
Eastern Cape Bhisho
Phumulo
Masualle
6 916 200 168 966km 2 R289.9
Free State Bloemfontein
Elias Sekgobelo
“Ace” Magashule
2 817 900 129 825km 2 R189.1
Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6
KwaZulu-
Natal
Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1
Limpopo Polokwane
Stanley
Mathabatha
5 726 800 125 754km 2 R271.5
Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2
North West Mahikeng
Supra
Mahumapelo
3 707 000 104 882km 2 R249.5
Northern Cape Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9
Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R518.1
Snapshot of South Africa’s provinces
SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA
FREE STATE BUSINESS 2017
24

SPECIAL FEATURE
How South Africa’s economy performed in 2015. *
* PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
SECTOR LP MP GP NW KZN FS NC EC WC
Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5
Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3
Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8
Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0
Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3
Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0
Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1
Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6
Personal
Services
Government
Services
3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1
16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2
Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0
Gross Domestic Product by province, percentage contribution.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1
25 FREE STATE BUSINESS 2017

FOCUS
Mangaung’s new mayor
hits the ground running
The new Mayor of Mangaung Metropolitan Municipality has
pledged to continue with service delivery projects
initiated by the previous council.
The city of Mangaung stands on the threshold of a new era following
a decision by the Municipal Demarcation Board; its area of jurisdiction
is once again being extended (this happened in 2011 as well).
The Metropolitan Municipality now incorporates both Soutpan and
Naledi local municipalities. This presents the metro with both challenging
and exciting times. The boundaries of Mangaung Metro are now made
up of Bloemfontein, Botshabelo, Thaba Nchu Dewetsdorp, Wepener, Van
Stadensrus and Soutpan.
With Executive Mayor Councillor Matawana Olly Mlamleli at the helm,
Mangaung Metro will continue to accelerate service delivery, focusing on
the eight (8) developmental priorities that had been set by the previous
council. These are:
• Poverty eradication, rural and economic development and job
creation
• Financial sustainability including revenue enhancement and
clean audits
• Spatial development and the built environment
• Eradication of the bucket system and VIP toilets
• Development of sustainable and integrated human settlements
• Implementation of an Integrated Public Transport Network (IPTN)
• Environmental management and climate change
• Social and community services
“These are the key areas we will be focusing on in this fourth electoral
cycle of a democratic local government. We are content that this work will
advance the people’s power in every ward of our city,” said the Executive
Mayor Mlamleli during her inauguration in September 2016.
Good governance
The newly elected Executive Mayor has vowed to uphold the principles
of good governance. “I will ensure increased public involvement in the
affairs of the Council, sound political leadership and administration as well
as fiscal prudence, working closely with the oversight institutions including
the Office of the Auditor-General. I intend to sustain cordial working
relations with labour as a basis for strategic partnerships,” she said.
The incorporation of Naledi and Soutpan brings with it further challenges
due to the disparity of service levels, distance and an expanded
Mangaung
Metropolitan
Municipality
Annual Performance
Report
2011/2012
Executive Mayor Cllr
Matawana Olly Mlamleli
rural element. All developmental
plans as they apply to the regions
of Bloemfontein, Botshabelo and
Thaba Nchu will equally be applicable
to and cater for Naledi and
Soutpan in all respects. Residents
of Mangaung should regard this
merger as one that brings with it
economic spin-offs in the realm
of the agrarian economy, as the
economy of these new areas is predominantly
driven by agriculture.
As the city prioritises, it does
so from the premise of consolidated
and incorporated
planning as defined by the current
Consolidated Integrated
Developmental Plan (IDP) and
beyond this, an IDP of the
municipality of Mangaung as
re-determined by the Municipal
Demarcations Board.
FREE STATE BUSINESS 2017
26

FOCUS
The IPTN – an artist’s impression of an open
station in Mangaung.
The Executive Mayor Cllr Olly Mlamleli patches
a pothole in Freedom Square after handing out
roadworks machinery.
Integrated Public
Transport Network
Subsequent to numerous consultations
with the public and
taxi associations in Mangaung,
the city formally introduced
the Integrated Public Transport
Network (IPTN) to residents
of the city and stakeholders
in October 2016 as part of
Transport Month, which is observed
nationally. This initiative
was formalised by the signing of
a Memorandum of Agreement
(MoA) with the transport industry
in Bloemfontein.
The IPTN will ensure the provision
of an efficient, reliable, safe
and affordable public transport
system for residents of Mangaung.
Upon completion, the IPTN is
envisaged to change the face of
public commuting in Mangaung,
and ultimately the economic
potential of the province. The firstphase
corridor along the Maphisa
Route has been completed and
the city will move with speed to
ensure that other phases of the
IPT Network are implemented.
Mangaung has grown as a city, substantially in land mass – and
as such, the challenges of mobility within the metropole need to be
attended to as a matter of urgency. Reliable public transport is a foundation
for our economy, and as this service expands, we will increasingly
be able to attract potential investors, which will in turn create additional
economic opportunities for our people.
Among other achievements, the city of Mangaung garnered a number
of PMR.Africa awards in October 2016, as a result of surveys conducted
annually across the province. The ratings are based on the perceptions
of 110 CEOs, company directors, senior employees and officials in the
private sector, as well as the local and provincial government sector.
Mangaung was the highest-rated municipality in the province in
the following categories, receiving the Diamond Arrow for:
• Most effective communication and marketing strategies in the
Free State province
• Municipalities doing the most for social upliftment
• Municipalities doing the most to attract foreign/international
investment
• Municipalities doing the most to attract local investment
• Municipalities doing the most to attract tourism
• Municipalities doing the most for job creation
• Municipalities doing the most to fight crime
• Municipalities doing the most to clean the environment
To stay up to date with news and activities around Mangaung,
please see: www.mangaung.co.za or visit our Facebook pages:
Mangaung Metropolitan Municipality and Mayor’s Page: Executive
Mayor Olly Mlamleli. Residents can contact us via the call centre:
0800 111 300.
27 FREE STATE BUSINESS 2017

South African
investment incentives
The South African government, particularly the Department of Trade and Industry,
has a range of incentives available to investors, existing companies,
entrepreneurs and co-operatives across many sectors.
South Africa wishes to diversify its economy
and incentives are an important part of
the strategy to attract investors to the
country. The Department of Trade and
Industry (the dti) is the lead agency in the incentives
programme, which aims to encourage local and
foreign investment into targeted economic sectors,
but the Industrial Development Corporation
(IDC) is the most influential funder of projects across
South Africa.
There a variety of incentives available and these
incentives can broadly be categorised according to
the stage of project development:
• Conceptualisation of the project – including feasibility
studies and research and development (grants
for R&D and feasibility studies, THRIP, Stp, etc)
• Capital expenditure – involving the creation
or expansion of the productive capacity
of businesses (MCEP, EIP, CIP, FIG, etc)
• Competitiveness enhancement – involving the
introduction of efficiencies and whetting the
competitive edge of established companies and
commercial or industrial sectors (BBSDP, EMIA,
CTCIP, etc)
Some of the incentives are sector-specific for
example the Aquaculture Development and
FREE STATE BUSINESS 2017
28

SPECIAL FEATURE
Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
Manufacturing
Key components of the incentive programme
are the Manufacturing Incentive Programme
(MIP) and the Manufacturing Competitiveness
Enhancement Programme (MCEP). The initial
MCEP, launched in 2012, was so successful that it
was oversubscribed with almost 890 businesses
receiving funding. A second phase of the programme
was scheduled for launch in 2016. The
grants are not handouts as the funding covers a
maximum of 50% of the cost of the investment,
with the remainder to be sourced elsewhere.
The Enterprise Investment Programme (EIP)
makes targeted grants to stimulate and promote
investment, BEE and employment creation in the
manufacturing and tourism sectors. Aimed at
smaller companies the maximum grant is R30-
million. Specific tax deductions are permissible for
larger companies investing in the manufacturing
sector under Section 12i of the Income Tax Act.
Other incentives available to investors and
existing businesses in more than one sector
include the:
• Technology and Human Resources for Industry
Programme (THRIP)
• Support Programme for Industrial Innovation
(SPII).
• Black Business Supplier Development
Programme (BBSDP), which is a cost-sharing
grant offered to black-owned small enterprises.
• Critical Infrastructure Programme (CIP) that
covers between 10% and 30% of the total
development costs of qualifying infrastructure.
• Co-operative Incentive Scheme, which is a 90:10
matching cash grant for registered primary
co-operatives
• Sector Specific Assistance Scheme, which is a
reimbursable 80:20 cost-sharing grant that can
be applied for by export councils, joint action
groups and industry associations.
Incentives for SMMEs
A lot of emphasis is placed on the potential role of
small, medium and micro enterprises in job creation
and a number of incentives are designed to promote
the growth of these businesses. These include:
• Small Medium Enterprise Development
Programme (SMEDP)
• Isivande Women’s Fund
• Seda Technology Programme (Stp)
Seda is the Small Enterprise Development
Agency, an agency of the Department of Small
Business Development that exists to promote
SMMEs.
Trade-related incentives
The Export Marketing and Investment Assistance
(EMIA) Scheme includes support for local businesses
that wish to market their businesses internationally
to potential importers and investors. The scheme
offers financial assistance to South Africans travelling
or exhibiting abroad as well as for inbound potential
buyers of South African goods.
ONLINE RESOURCES
Department of Trade and Industry:
www.thedti.gov.za
Free State Develoment Corporation:
www.fdc.co.za
Industrial Development Corporation:
www.idc.co.za
Official South African government incentive
schemes: www.investmentincentives.co.za
29 FREE STATE BUSINESS 2017

SPECIAL FEATURE
Establishing a business in SA
The barriers to doing business in South Africa have been eased for local and
international companies.
South Africa has a sophisticated legal, regulatory
and banking system. Setting up
a business in South Africa is a relatively
straight-forward process with assistance
being offered by organisations such as the Department
of Trade and Industry and provincial investment
agencies like the Free State Development
Corporation.
South African law regulates the establishment
and conduct of businesses throughout the country.
Tax, investment incentives, regulations governing
imports, exports and visas are uniform throughout
the country. The particular environment varies from
province to province with regard to the availability
of human and natural resources, the infrastructure
and support services, business opportunities and
the quality of life.
In this respect, the Free State Development
Corporation can offer specific advice about the
business environment in the province.
Business is regulated by the Companies Act and
the Close Corporation Act, which cover accounting
and reporting requirements. Under new legislation,
no new Close Corporations can be created but CCs
can convert to companies.
Registration of company
The company must be registered with the
Comp anies and Intellectual Properties Commission,
(CPIC) in Pretoria within 21 days of the company
being started. There are a range of administrative
procedures that need to be fulfilled.
Bank account
A business bank account must be opened in the
company’s name with a bank in South Africa.
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable
on money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the
Department of Labour regarding mandatory contributions
to the Unemployment Insurance Fund (UIF).
Register with Compensation Commissioner for
Compensation Fund: Files with the Compensation
Fund (in the Department of Labour) for accident
insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh foodstuffs
or health matters.
Other procedures
• Checking exchange control procedures (note
that non-residents are generally not subject to
FREE STATE BUSINESS 2017
30

SPECIAL FEATURE
exchange controls except for certain categories
of investment)
• Obtaining approval for building plans
• Applying for industry and export incentives
• Applying for import permits and verifying
import duties payable
• Registering as an exporter if relevant and applying
for an export permit
Business entities
There are a variety of forms which businesses can
take, including private and public companies,
personal liability companies , non-profit companies,
state-owned companies and even branches of
foreign companies (or external companies).
Branches of foreign companies fall under section
23 of the Companies Act of 2008 and are
required to register as “external companies” with
the CIPC. An external company is not required
to appoint a local board of directors but must
appoint a person resident in South Africa who
is authorised to accept services of process and
any notices served on the company. It must also
appoint a registered local auditor and establish a
registered office in South Africa.
Patents, trademarks and copyrights
Trademarks (including service marks) are valid for an
initial period of 10 years and are renewable indefinitely
for further 10-year periods. Patents are granted
for 20 years, normally without an option to renew.
The holder of a patent or trademark must pay an annual
fee in order to preserve its validity. Patents and
trademarks may be licensed but where this involves
the payment of royalties to non-resident licensors,
prior approval of the licensing agreement must be
obtained from the dti. South Africa is a signatory to
the Berne Copyright Convention.
Permits for foreign nationals
Work permits
In considering whether or not to grant a work permit,
the Department of Home Affairs will first evaluate the
validity of the offer of employment by conducting a
number of checks to confirm the following:
• Has the Department of Labour been contacted?
• Has the position been widely advertised?
• Is the prospective employer able to prove that he
or she has tried to find a suitably qualified local
employee prior to hiring a foreigner?
• Is the prospective employee appropriately qualified
and do they have the relevant experience?
Business permits
Foreign nationals who wish to establish their own
business or a partnership in South Africa must, apart
from having sufficient funds to support themselves
and their family, be able to invest at least R2.5-million
in the business.
The funds must originate overseas, be transferable
to South Africa and belong to the applicant (ie
emanate from the applicant’s own bank account).
The business must also create jobs for South African
citizens. After six months to a year, proof will have to
be submitted that the business is employing South
African citizens or permanent residents, excluding
family members of the employer.
Applications for work permits for self-employment
can only be lodged at the South African
Consulate or Embassy in the applicant’s country of
origin. The processing fee is US$186. The applicant
would also have to lodge a repatriation guarantee
with the consulate/embassy equivalent to the price
of a one-way flight from South Africa back to his or
her country of origin.
This guarantee is refundable once the applicant
has either left South Africa permanently or obtained
permanent residence. Any application for an extension
of a business permit may be lodged locally. The
processing fee per passport holder is R425. Some
countries also need to pay R108 per return visa.
A list of countries to which this applies is available
from the Department of Home Affairs.
The FDC assists investors in applying for the
relevant work permits to conduct their business.
What would the FDC do for you?
The FDC will help new businesses by assisting in
project appraisal and packaging, putting investors
in touch with relevant agencies and government
departments, alerting investors to investment incentives
and setting up joint ventures where required.
A full description of the services offered by the
FDC is reflected elsewhere in this publication.
31 FREE STATE BUSINESS 2017

FOCUS
Making the things that really
matter with businesses and
communities happen
Kevin de Beer, Nedbank Regional General Manager, Branch Networks, explains
how Nedbank works with communities to deliver banking solutions.
Nedbank continues to build on its client-centred strategy aimed
at delivering distinctive experiences and channels of choice for
business and clients in the Free State. This has seen the bank simplify
and enhance its product offering in line with its great value
banking philosophy, based on simplicity, transparency and affordability.
Innovation and technological advancements as well as training and
development of staff have been key pillars in achieving the bank’s objectives.
Nedbank has also placed greater emphasis on client engagement
to better understand the diverse and individual client needs across its
personal and business banking base.
“Innovation is an integral component of a holistic approach that
encompasses our systems and processes and which is an enabler in
delivering distinctive client experiences. Despite the tough economic
environment, Retail and Business Banking have delivered value to our
shareholders while significantly improving our client experience. Through
these milestones, we are well geared to weather the persisting macroeconomic
environment, and highly competitive business conditions,”
says Kevin de Beer.
Since 2012, Nedbank has launched several first-to-market innovations
such as the award-winning Nedbank App Suite, Home Loans Online
Digital Channel and Market Edge, as well as the “Branch of the Future”
concept in communities locally and nationally.
“Working with communities is entrenched in our values through community
development, skills development, education and job creation as
well as environmental conservation. These play a vital role in building a
sustainable economy and vibrant society. We believe our fast-growing
presence in communities goes a long way in enabling greater financial inclusion
while contributing towards economic growth,” concludes De Beer.
The bank has also invested in innovative alternative distribution outlets
through its strategic partnership with Pick n Pay and Boxer Stores. These
partnerships, which span over 15 years, enable communities to gain access
to financial services every day of the week, including Sundays and
public holidays.
Nedbank also leverages its strong market positioning with businesses
and the public sector, encouraging them to bank their employees
Kevin de Beer, Nedbank
Regional General Manager,
Branch Networks
through its innovative Nedbank@
Work employee banking offering.
This forms part of Nedbank’s
Banking and Beyond philosophy
and is aimed at supporting business
owners to make informed
decisions so that they can grow
and take their businesses to the
next level.
This is another way Nedbank
continues to make the things that
really matter with businesses and
communities happen.
For more information
contact Kevin de Beer,
Nedbank Regional General
Manager on +27 51 400 5813
or visit www.nedbank.co.za
FREE STATE BUSINESS 2017
32

A full range of
business solutions
FOCUS
Jordaan Roelofse, Nedbank Regional Business Head, Northern
Cape and Free State, explains how they are making the bank
relevant to business owners in the Free State.
There is great news for Free State business owners and entrepreneurs
seeking a unique banking experience: Nedbank
Business Banking has eight business managers
located across the province specialising in commercial and
agricultural industries. They are ready to assist you with professional
advice, industry-specific solutions and a comprehensive range of
financial products and services.
“At Nedbank Business Banking we believe that you need a financial
partner who not only understands your circumstances and
aspirations, but can also provide you with relevant solutions and a
banking experience that is hassle-free. This allows you to concentrate
on what’s most important to you – the running of your business,”
says Jordaan Roelofse.
At the core of the bank’s offering in the Free State is a relationshipbased
model, with a business manager dedicated to your business
as the key entry point into the bank. Each business manager is
supported by a team – comprising a credit manager, credit analyst
and services manager – which has a thorough understanding of
the regional economy and business market, and a genuine interest
in the success of each individual business. “When you do business
with us, you are speaking to people who know the area, understand
its nuances and are familiar with the various industries operating
here,” explains Roelofse.
An additional benefit of banking with Nedbank Business Banking
is that your business and your personal financial needs can be managed
in one place. “Because very often business owners and their
businesses are financially dependent on each other, our client service
teams now also offer individual banking solutions, better advice and
a hassle-free service to you and your staff as we already know and
understand your needs,” explains Roelofse.
With this in mind, Nedbank has recently introduced Nedbank@
Work – a unique service to employees of companies who bank with
Nedbank. The service facilitates convenient banking at the workplace
through bankers or consultants on site, in the branch or via our call
Jordaan Roelofse, Nedbank
Regional Business Head,
Northern Cape and Free
State
centre and internet channels.
In addition, Nedbank@Work
offers non-financial support to
you and your employees free
of charge, including financial
fitness training to employees
at all levels through customised
education programmes.
For more information about
our specialised service
offering please call Jordaan
Roelofse on +27 51 400 5700.
33
FREE STATE BUSINESS 2017

FOCUS
Zooming into Nedbank’s
small business interventions
Regional Manager Small Business Services, Kim Lawrence, explains
how Nedbank is committed to partnering with businesses for growth.
“Recognising that small businesses are the mainstay of
our economy and arguably the best remedy for the
country’s unemployment challenges, the bank has, over
the years, instituted various interventions aimed at giving
support to the small business sector. Over and above our Small
Business Services solutions, we provide small business owners with
support that goes beyond banking, freeing up their time to truly
focus on running their businesses,” says Kim Lawrence.
Nedbank has built a solid reputation as a bank for small businesses
through initiatives such as Small Business Friday, free Small Business
Seminars and the SimplyBiz.co.za platform – all of which are geared
to support the SME sector. As an example, the Small Business Friday
initiative, in association with the National Small Business Chamber
(NSBC), seeks to encourage all in South Africa to rally behind and
show their support to small businesses. Notwithstanding its name,
the initiative calls on all in South Africa to make a conscious decision
to vote small business through their hearts, feet and wallets;
not only on Fridays but in their everyday lives.
Supporting small businesses can translate to more sustainable
economic growth, social upliftment and job creation. The biannual
Nedbank Small Business Seminars (in their tenth year), are
free for attendants and provide practical advice and solutions for
small business owners. The inspired up-and-coming and emerging
entrepreneurs that attend the seminars benefit from invaluable insight
shared by small business experts. The seminars are rolled out
across the country and the topics include issues such as cash-flow
planning that works and turning strengths and weaknesses into
more sales and profits.
SimplyBiz.co za is a free-to-join value networking portal especially
for small businesses. It seeks to assist small business owners facing
unique challenges with valuable insights from other entrepreneurs
and our seminars. Moreover, the online portal is there for small businesses
to improve their business administration skills, keep up with
the latest trends, network with other small businesses and share
Kim Lawrence, Regional
Manager Small Business
Services
ideas or advice. Entrepreneurs
can also upload their business
details and logo at no cost.
Nedbank remains focused on
the enhancement of growth opportunities
for small businesses
through improved presence and
distribution of much-needed
expertise that will benefit the
sector. It continues to offer a full
range of services to this sector,
including short-term, mediumterm
and long-term funding as
well as transactional banking.
For more information about
our Small Business Services
call Kim Lawrence, Regional
Manager Small Business
Services on +27 51 400 5700
or email kiml@nedbank.co.za
FREE STATE BUSINESS 2017
34

Making banking
more accessible
FOCUS
Nedbank’s partnership with government is gaining momentum
according to Free State Regional Relationship Manager Liezel Herbst.
As a bank for all, Nedbank continues to support the government’s
efforts to promote sustainable socioeconomic development
through financial wellness in the public sector.
These efforts take place at local, provincial and
government level.
Nedbank has signed a memorandum of understanding with the
Department of Correctional Services (DCS) for the Free State and
the Northern Cape, in order to create a platform through which
local correctional services offices can access financial solutions
and planning for employees and the community at large. “We
are pleased to partner with DCS as part of our commitment to
make banking more accessible to all. Nedbank provides several
communities, including individual and business clients, with access
to products and services through Nedbank@Work – a unique
service to employees of companies who bank with Nedbank,” says
Liezel Herbst.
The bank offers convenient, client-centric banking by leveraging
company and community relationships through a dedicated key
account relationship manager. Through customised workshops
Nedbank@Work ensures that employees have access to non-financial
support and financial-fitness training. The workshops encompass
a range of Nedbank financial solutions that can be accessed
through a helpdesk, which also provides a platform for individuals
and communities to submit their corporate social responsibility
proposals for consideration by the Nedbank Foundation.
“At Nedbank we understand that in today’s world most people
are pressed for time and are not able to visit the branch, therefore
delivering banking services in a seamless and convenient manner
is key for us,” continues Herbst.
Nedbank understands that solutions aimed at the heart of South
Africa’s socioeconomic development can be found in collaboration
with all key stakeholders. “While we are acutely aware that there
are no quick fixes, we believe that addressing social challenges in
our country is a collective responsibility and this drives our commitment
to partner with government and local departments to
make a tangible difference,” concludes Herbst.
Liezel Herbst, Regional
Relationship Manager
Our range of products and services
include the Nedbank Keyona
Plus transactional account, which
comprises funeral cover, a personal
loan facility, the Just Save
Account and the Send Imali money
transfer solution. To encourage
the youth to save and build their
financial fitness from an early age,
the newly launched Nedbank4me
offering is based on four key pillars:
4spending, 4saving, 4growing
and 4good. Nedbank4me comprises
a full transactional banking
account with no monthly
fees, free initial transactions and
thereafter reduced pay-as-youuse
pricing, free eNotes and selfservice
banking.
For further information
contact Liezel Herbst on
+27 51 400 5754 or email
liezelh@nedbank.co.za
35
FREE STATE BUSINESS 2017

FOCUS
Old Mutual: doing great things
in the Free State
Old Mutual has invested in housing, renewable energy, education
and more in the Free State.
Kevin de Beer, Old Mutual
Free State Provincial
Management Board
Chairperson
Crystal Park – Old Mutual investing in affordable housing.
Thousands of affordable homes, roads and railways, renewable-energy
projects, investment in education, support for the needy and vulnerable,
and capital expenditure on projects that benefit communities
are just some of the initiatives in which Old Mutual is involved in the
Free State.
“Enabling positive futures is what our business is all about,“ says
Kevin de Beer, Old Mutual Free State Provincial Management Board
Chairperson, “and we’re immensely proud of the positive long-term
and beneficial impacts we’re making in this wonderful province.”
To date, the Housing Impact Fund South Africa (HIFSA), managed
by Old Mutual Investment Group boutique, Old Mutual Alternative
Investments, has invested R9-billion in the planned development
of 2 550 affordable homes for sale and rent in the province. These
comprise 2 208 greenfield housing units, 105 rental units and 237
units for student accommodation. Crystal Park and Raceway Park in
Bloemfontein are just two of these projects.
HIFSA also provides housing loans and rental accommodation
for families and students, and aims to help fill the gap in the market
between government-provided housing and those who have access
to bank finance to purchase their
own homes.
Old Mutual Investment
Group has committed close to
R30-billion in areas that specifically
drive long-term inclusive
economic growth, such as education,
affordable housing, lowcarbon
energy, agriculture and
infrastructure in South Africa. The
Infrastructural, Developmental
and Environmental Assets (IDEAS)
Managed Fund, managed by Old
Mutual Alternative Investments,
is made available to institutional
investors who wish to invest in
economic infrastructure such as
roads and railways, social infrastructure
including housing and
public-private partnerships, and
renewable energy like solar, wind
FREE STATE BUSINESS 2017
36

FOCUS
and hydro-generation projects.
Old Mutual Investment Group
participates in the government’s
Renewable Energy Independent
Power Producer Procurement
Programme via a number of its investment
boutiques, namely Old
Mutual Alternative Investments,
African Infrastructure Investment
Managers (AIIM), Futuregrowth
Asset Management and Old
Mutual Specialised Finance.
Through these boutiques Old
Mutual Investment Group has invested
about R14-billion in over
30 renewable-energy projects.
Two of these have been recognised
as being in the global top
15 largest plants measured in
capacity: the Lesedi solar-power
plant in the Northern Cape and
the Letsatsi solar-power project
in the Free State.
The Letsatsi project has generated
many spinoffs for the
local community, including 60
permanent jobs and 700 peak
seasonal jobs. The project has
also enabled the provision of
prefab classroom facilities at four
preschools (three in Dealesville
and one in Soutpan), and soup
kitchens at Kgololosego School
and Lapologang old-age home
in Mangaung township; and assisted
with renovations of the
Itereleng elderly luncheon club.
Both these solar-power projects
will also set aside a considerable
percentage of total product
revenues over their lifetimes,
which will be directly invested in
enterprise and socioeconomic
development programmes for the
surrounding local communities.
In 2013, the Old Mutual
Education Flagship Project
The Letsatsi solar-power project in the Free State.
(OMEFP) was launched. This seven-year multi-partner nationaleducation
initiative will invest R350-million in a set of under-performing
government schools in 10 school circuits in key provinces. The goal
is to positively influence the lives of 250 000 learners at 250 schools,
with the aim to increase the number of bachelor passes (university
entrance) among Grade 12 learners who have both maths and science
37
FREE STATE BUSINESS 2017

FOCUS
in their matric subject choice. In the Free State, 15 high and intermediate
schools and 39 primary feeder schools are part of the OMEFP.
One such school is Ntemoseng High School in Botshabelo, a small
town in the eastern Free State plagued by unemployment and poverty.
Here, five participating schools each have four specialist mentors in
maths, science and accounting, and school management for principals
and their management teams, to enable teachers to manage their
classes and curriculum content more effectively. Ntemoseng High
School is now the second best performing school in Botshabelo out
of 14 schools.
The Old Mutual Foundation provides a R100 000 grant to the
Bartimea School for the Blind and Deaf.
In 2015, the Foundation contributed
R27 870 000 to various
South African communities
which funded the development
of small black-owned businesses,
skills development projects,
support for staff volunteerism
initiatives and donations towards
vulnerable communities.
In the Free State specifically,
the Old Mutual Foundation
invested R268 000 via its
Old Mutual Staff Community
Builder programme in which
employees can receive up to
R45 000 over three years to financially
assist the organisations at
which they volunteer. This financial
investment aided in the support
of 14 projects and positively
impacted 6 187 beneficiaries.
The Foundation has financially
supported the Earthrise
Trust in the eastern Free State,
near the town of Ficksburg. The
R1.5-million grant given to this
enterprise aimed to establish
a co-operative communitydriven
vegetable-farming enterprise.
The project to date
has created 20 jobs (in the
form of co-operative members)
and promotes food security,
The Emfuleni feedlot in Tweeling is a Masisizane beneficiary.
FREE STATE BUSINESS 2017
38

FOCUS
Maths teacher, Mr Moyo, at Ntemoseng High School in Botshabelo, Free State.
nutrition and sustainable rural
livelihoods for trainee farmers
at Naledi and the surrounding
villages. Another demonstration
of the Foundation’s input
into the well-being of Free State
communities is a R100 000 grant
to the Bartimea School for the
Blind and Deaf for Perkins Braille
writers for blind learners.
The Masisizane Fund
(“Masisizane”), an Old Mutual
initiative that was established
in 2007 as a non-profit funding
company to provide loan
financing and support to small,
medium and micro enterprises
(SMMEs), is also a contributor to
the empowerment of the Free
State. Masisizane was set up
to contribute to job creation,
reduce inequality, promote
economic growth and support,
develop and promote entrepreneurship,
while attracting
investment to SMMEs.
The Emfuleni feedlot in Tweeling is a Masisizane beneficiary,
which has grown from a small business enterprise,established in
2013, to a feedlot that now has capacity to hold 8 000 sheep and
employs 28 full-time staff. Masisizane provided a loan in 2014 so
that they could buy more sheep and feed in order to sustain the
business. Masisizane continues to provide post-investment support.
“Old Mutual’s long-term success is closely connected to being
part of, and being trusted by, flourishing and sustainable local communities,”
says De Beer. “We’re committed to being a responsible
business with a view to the long term, and we continue to focus
on areas where our businesses can make a material impact and
create meaningful change for all our stakeholders. After all, we
know that what’s good for South Africa is good for Old Mutual,
and vice versa.”
For more information contact:
Julie Hutchins, Communications Manager
Tel: +27 11 217 1648
Cell: 072 553 7366
Email: jhutchins@oldmutual.com
39
FREE STATE BUSINESS 2017

KEY SECTORS
Overview of the main economic
sectors in the Free State
Agriculture 40
Mining 43
Oil and gas 46
Manufacturing 48
Transport and logistics 50
Tourism 55
Education and training 58

OVERVIEW
Agriculture
The grain-rich Free State is investing in poultry operations.
Any event that attracts 448 helicopters and light aircraft
must have something worth seeing. The 50th edition of
the NAMPO Harvest Day was held in 2016 – and it is now
regarded as one of the biggest agricultural festivals and
exhibitions of its kind in the world.
Transactions worth R50 000 were recorded at the second event
in 1968. With 75 116 visitors and 685 exhibitors, the 2016 Harvest Day
undoubtedly did rather better than that. Apart from the trading and
the festivities, there is an annual Farmer Patent Competition, sponsored
by Grain SA and Omnia, the fertiliser company.
Bothaville, the host town, is located in the Lejweleputswa District
Municipality on the western boundary of the Free State. So far west
is Bothaville, that Senwes counts it as part of its North West region.
SECTOR INSIGHT
Large percentages of South
Africa’s agricultural produce
comes from the Free State.
• The NAMPO Harvest attracted
75 000 visitors.
• A record maize supply deal
has been signed.
The giant agricultural company,
with its headquarters in the North
West city of Klerksdorp, has three
FREE STATE BUSINESS 2017
42

OVERVIEW
separate regions for the rest of the
Free State (east, north and south)
as the province forms a vital part
of the group’s portfolio. The company
deals with no less than 20%
of the country’s oilseeds and grain
through its 68 silos.
At the NAMPO event, Senwes’
commodity trading company,
TradeVantage, signed a deal with
Meadow Feeds to supply the
animal feed supplier with 800
000 tons per year until April 2018.
This is said to be the largest single
maize contract to be signed in
Southern Africa. Meadow Feeds,
a subsidiary of Astral, will use the
maize to feed 37-million chickens
on a daily basis. The national feed
industry has an annual turnover of
R50-billion and if this money has
to be spent in dollars to buy the
raw materials, it becomes a very
expensive business.
VKB Agriculture, another of
the province’s large agricultural
companies that used to
be farmers’ co-operatives, has invested heavily in the Grain Field
Chicken abattoir in Reitz (together with the broiler houses in
Tweeling). The Industrial Development Corporation (IDC), which
has a 23% stake in the project, intends to help develop the Free
State as the poultry hub of South Africa.
The VKB headquarters are in the town of Reitz in the northeastern
part of the province and the group has nine brands
in sectors such as fuel, grains, animal feed and foods. The
financial division held information sessions with emerging farmers
in 2016 to explain how farmers can benefit from the partnership
between VKB and the Land Bank. VKB has development programmes
with 51 emerging commercial farmers (cultivated area
5000ha) in the Free State and data on 140 developing farmers on
its Free State database.
During the course of 2016, the IDC lent R400-million to the
Land Bank to help farmers deal with the multi-year drought,
which only broke in late July. Grain SA reported that more than
3.5-million tons of maize would have to be imported to South
Africa for the 2016/17 season.
The drought has had the effect of reducing the agricultural
sector’s influence on provincial GDP (from 8% to 5%) but the
province still supplies almost all the country’s cherries and about
half of the country’s maize and sunflower seed. In addition, a third
of South Africa’s wheat comes from the Free State.
About 24% of South African beef and 17.4% of sheep (mutton
and wool) is produced in the Free State. A recent development
has seen the province increase its share of the soya bean market. It
43 FREE STATE BUSINESS 2017

OVERVIEW
now accounts for about 40% of the nation’s soya bean production
market. The provincial government has plans in place to invest in
the development of the Free State apple industry in the Thabo
Mofutsanyana District.
The drought reached crisis proportions at times. At one point,
Senwes decided to send emergency relief to farmers in the
Bultfontein district, and South African Breweries chipped in to
help with the transport to haul the bales.
Potential
Just over 90% of the Free State province is agricultural land, with
32% of its 11.6-million hectares classified as arable and 60% suitable
for pasture.
The agricultural sector is vital to the well-being of the province, both
as a provider of food and jobs. But it also holds the potential in its raw materials
to help the Free State expand its manufacturing sector. Provincial
authorities are very upbeat about the potential for agri-processing.
Investors are being encouraged to look at baby vegetables, wholesale
meat production (including poultry) and leather manufacturing.
CONTACT INFO
Department of Agriculture and Rural Development
Physical address: Gielie Joubert Street, Glen, Bloemfontein 9360
Tel: 051 861 8510 | Fax: 051 861 8578 / 086 723 8206
Website: www.ard.fs.gov.za
Agricultural Research Council: www.arc.agri.za
GrainSA: wwwgrainsa.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
The Mangaung Fresh Produce
Market plays a vital role in the sector,
catering as it does to householders,
bulk buyers, informal
traders, agents and farmers.
The Free State Department
of Agriculture and Rural
Development (DARD) has highlighted
the fact that only 11% of
the province’s primary agricultural
production is processed
within the province’s boundaries.
Improving on this percentage
is key to the strategy known
as Mohoma-Mobung. A sum of
R30-million has been allocated
to the first phase of the project.
The key to commercialising
these agricultural options is access
to finance and the Industrial
Development Corporation has
been very active in the province
in this sphere.
Clover has three factories in
the Free State: Bethlehem (milk
powder, whey mixtures and
creamers); Frankfort (butter,
the largest such factory in the
country, where ghee and rollerdried
milk powder is also made);
Heilbron (whey, buttermilk, condensed
milk and packaging).
A R45-million donation from
the People’s Republic of China
assisted with the construction of
a Demonstration Fish Hatchery
Centre, which is now operational
and is staffed by three Chinese
professors and a technician as
part of a technological cooperation
agreement. There are also
plans to establish a mega Agri-
Park in the Xhariep district comprising
fish, ostrich, sheep and
vegetable production, along with
packaging and marketing.
FREE STATE BUSINESS 2017
44

Mining
Diamond mines are expanding production.
OVERVIEW
Although the mining sector is no longer dominant, coal-, gold
and diamond – mining still make up an important part of the
Free State economy. Reduced global and domestic demand
have affected coal and gold miners and employment is
down, but diamond production is on the up.
The mining sector has seen significant changes in the last three
years, and further changes are in store. Two of the most significant
events were the unbundling of Gold Fields and the decision by Anglo
American to concentrate on three minerals – copper, platinum and
diamonds. Both affect the mining sector in the Free State.
Sibanye Gold came into existence as a result of Gold Fields’ decision,
and it quickly became the largest producer of gold in South Africa.
Sibanye Gold is responsible for Beatrix in the Free State, but most of
its gold assets are in Gauteng. Sibanye has bought several platinum
assets and may be a buyer of some of Anglo American’s coal mines.
The Sunday Times reported in July 2016 that Sibanye had paid out about
SECTOR INSIGHT
Petra Diamonds increased
revenue by 44% in 2016.
• Newcomer, Sibanye
Gold, has paid out nearly
R3-billion in dividends.
R2.8-billion in dividends since it
was established in 2013.
Coal is mostly found in the
northern part of the Free State
and the gold fields, which form
part of the Witwatersrand Basin,
stretch from north of Welkom to
south of Virginia.
45 FREE STATE BUSINESS 2017

OVERVIEW
Lucrative opportunities exist for mineral processing. A minerals
beneficiation strategy has been developed because this sector is seen
as a key area for potential growth.
Diamonds
Petra Diamonds’ Koffiefontein mine increased revenue from
$17.8-million in 2015 to $25.7-million in 2016, an increase of 44%. The
total carats sold rose by 21% to 55 500. This is part of the company’s
long-term expansion plan at the mine (situated in the south-western
part of the province). By 2017, Petra intends on producing 100 000 carats
per year from the mine, which has a resource of 5.7-million carats. Petra
has seven mines in South Africa. The Star mine, in which Petra (75%)
is in partnership with Sedibeng Mining, is the other Free State asset.
The Lace mine is near Kroonstad, which Diamond Corp is in the
process of raising money to develop more rapidly. The intention is
to produce ore at a rate of 4 000 metric tons per day, and access to
higher-grade kimberlite could lead to the production of 500 000 carats
per year. The Industrial Development Corporation has advanced
R220-million in project finance.
In March 2014, a new share issue
in London attracted R38-
million and was over-subscribed.
Further funds were raised in July
2015 and December 2015 (when
R70-million was raised).
De Beers’ Voorspoed mine
will have a production capacity of
800 000 carats per year when
it is fully operational. During
the building phase, about
R70-million was generated
in the region, and the company
intends on spending
R400-million per year on
capacity development.
In July 2016, De Beers, the
South African government and
the South African diamond
cutting industry launched a
project to encourage diamond
beneficiators. Among the first
companies involved are Thoko’s
Diamonds, African Diamonds,
Nungu Diamonds and Kwame
Diamonds.
Coal
The energy sector is using less
coal and neither of the main sectors
that use the chemicals made
at Sasolburg (agriculture and mining)
is growing.
The mine is run by Sasol
Mining and supplies Infrachem
in Sasolburg with two-million
tons of coal per year. Sasol Mining
has invested in dust-suppression
technologies, which are remote
controlled. Technologies include
scrubbers and high-pressure
water spray systems.
Anglo Coal runs the New Vaal
Colliery in the middle of a triangle
FREE STATE BUSINESS 2017
46

OVERVIEW
of three towns that play an important
part in industrial production:
Vereeniging, Sasolburg and
Vanderbijlpark. The mine employs
more than 900 people and supplies
about 15-million metric tons
of coal to Eskom’s Lethabo Power
Station annually. This mine will be
among the assets on the block
when Anglo American disposes
of all its coal mines. To what degree
the sale will be an opportunity
to increase black ownership
of mines remains to be seen.
Gold
AngloGold Ashanti’s Vaal River
Complex operations are mostly
near the town of Orkney in the
North West Province. However,
the Great Noligwa, Kopanang
and Moab Khotsong mines are
all over the Vaal River in the Free
State. The complex includes one
uranium plant, four gold plants
and one sulphuric acid plant.
AngloGold Ashanti intends to
spend several billion rands over
the next decade to extend the
life of the Moab Khotsong mine.
Village Main Reef runs the Tau
Lekoa mine in the same vicinity.
Most of Harmony’s operations,
including a tailings treatment,
are in the Free State.
The mines are Tshepong and
Phakisa (near Odendaalsrus),
Virginia, Target (near Allanridge),
Masimong (Riebeeckstad),
Joel (near Theunissen) and
Bambanani at Welkom. Phakisa
has mineral reserves of just over
five-million ounces of gold and
Harmony has invested heavily
in the project. Bambanani
is regarded as the most profitable mine in the group: the
amount of gold produced at the mine increased in 2015 to
2 908kg from 1 606kg in 2013. Target and Tshepong (the most northerly
of the mines in this cluster) together produced 8 102kg in 2015.
Gold mines in the Free State also supply a substantial portion of
the total silver produced in the country, and large concentrations of
uranium occurring in the gold-bearing conglomerates of the gold
fields are extracted as a by-product.
Taung Gold, a Chinese company, runs the Jeanette mine near the
town of Welkom.
Other minerals
By-products of gold operations (uranium, silver, platinum-group
metals and sulphuric acid) and bentonite are also found in the province.
Among the companies running large quarries in the Free State are
Lafarge, Raumix and Corobrik. Sand, stone aggregate, gypsum and
granite are found at various sites throughout the province. Limestone
and calcrete occur in the western Free State where salt is also panned.
Production is concentrated around the Florisbad salt pan, north-west
of Bloemfontein. The Ocean Bentonite Mine near Koppies in the northwest
Free State is one of only two in the country.
CONTACT INFO
Chamber of Mines of South Africa: www.bullion.org.za
Geological Society of South Africa: www.gssa.org.za
Mining Qualifications Authority: www.mqa.org.za
National Department of Mineral Resources: www.dmr.gov.za
South African Mining Development Association: www.samda.co.za
Southern African Institute of Mining and Metallurgy:
www.saimm.co.za
47 FREE STATE BUSINESS 2017

OVERVIEW
Oil and gas
Sasolburg is at the heart of South Africa’s oil and gas industry.
SECTOR INSIGHT
A helium plant is set to exploit
a new gas field.
• A gold miner is extracting
power from methane gas.
An energy-from-methane power plant now running at the
Beatrix Gold Mine neatly encapsulates a shift from the old
economy to the new. Although the Sibanye-owned gold
mine still has significant reserves of the mineral, it is the shift
to this new technology that is sparking interest and showing the way
to creative energy solutions.
Sibanye’s predecessor, Gold Fields, was the first gold miner to
sell Certified Emissions Reduction (carbon trading units) and now
the mine is producing 2MW of power for the mine’s operations. The
Beatrix Project was registered as a methane-gas-capture project
with the United Nations Framework Convention on Climate Change
(UNFCCC). Aggreko, a company that specialises in providing temporary
power, is running the operation in partnership with Sibanye.
During the 2010 FIFA World Cup in South Africa, Aggreko supplied
253 generators to stadiums and
broadcast centres.
The Natref fuel refinery is
one of only four in South Africa
and the country’s only inland
refinery. It is strategically placed
at Sasolburg near to the industrial
hub of southern Gauteng.
The petrochemical complex at
Sasolburg is a major national asset.
Among the many chemical,
oil and gas companies operating
out of Sasolburg are several companies
within the Sasol group.
One of these, Sasol New
Energy, has been working on
moving the group away from
reliance on fossil fuels. The gasto-electricity
power plant in
Sasolburg delivered 1 348 263
megawatt hours of electricity
in 2014. This takes the total generation
capacity of Sasol up to
about 70% of its requirements.
The resulting savings will improve
Sasol’s profit margins, reduce
carbon dioxide emissions
and take pressure off the national
electricity grid.
FREE STATE BUSINESS 2017
48

Oil
The Natref fuel refinery is a joint
venture between Sasol Oil (63.6%)
and Total SA (36.3%). It is a technologically
advanced facility, which
refines heavy crude oil into petrol,
diesel, commercial propane, jet
fuel and bitumen. The capacity is
92 000 barrels per day. Between
60% and 70% of petroleum is distributed
by pipeline, 20% to 25%
by road and 5% by rail.
The products sold by Sasol Oil
include both lead replacement
and unleaded petrol, Sasol turbodiesel,
a range of lubricants,
industrial fuel oils, illuminating
paraffin and liquid petroleum
gas, in addition to marine diesel
oil and bitumen.
Petroleum Agency SA is a government
agency that supports
exploration for onshore and offshore
oil and gas resources and
regulates exploration and production
activities. The agency is
the custodian of the country’s
database related to all exploration
and production.
Gas
South Africa is turning to gas as
an alternative to coal as an energy
source, with Sasol being the
major supplier. Sasol is doing its
own conversions at its plants. The
major economic sectors using gas
are the metals sector (48% of volume,
although the steel sector’s
downturn will affect this negatively),
and the chemical, pulp and
paper sector (about 20%). Brick
and glass manufacturers are also
big consumers.
OVERVIEW
A major investment by Afrox (a member of the Linde group) will see
a R200-million plant built to extract helium near Virginia. Renewable
energy company, Renergen, owns the right to the natural gas and
helium field around Virginia (which has proven reserves of 25-billion
cubic feet). Afrox will operate the plant and sell the helium. Bus companies
are in the market to buy another product, which the plant will supply,
compressed natural gas. This will be a cheaper alternative than diesel.
Afrox operates a CO2 liquefier at Sasolburg, which is aimed at supplying
the bottling and hospitality markets, where demand is strong.
Pipelines
Pipeline gas supplied from Sasolburg amounts to 27.3-million gigajoules,
with customers mostly in the greater Johannesburg area, the
industrial complex east of the city, and Durban. Gas raw materials come
mainly from the by-products of Sasol’s petroleum plants at Secunda
(Mpumalanga) and Sasolburg. Products include oxygen for medical
use, liquefied petroleum gas for industrial, household and recreational
use, and oxygen and acetylene. Specialised gases such as argon, helium
and nitrogen are also produced. One of Sasol’s most important pipeline
travels 865km through four South African provinces, including the Free
State, from Mozambique’s gas fields.
Transnet Pipelines is the key national operator in this field, handling
an average of 16-billion litres of liquid fuel, and more than 450-million
cubic metres of gases every year. The liquid products are leaded and
unleaded petrol, aviation turbine fuels, diesel and crude oil.
One of the pipeline intake stations is at the crude refinery at
Coalbrook (Natref) in the Free State, and the pipeline network stretches
out over the province into KwaZulu-Natal, Gauteng, North West and
Mpumalanga, and Botswana and Mozambique. Transnet Pipelines
employs 600 staff and its clients include all of South Africa’s major fuel
companies, namely: BP, Caltex, Engen, Exel, Sasol Oil, Sasol Gas, Tepco,
Shell and Total.
CONTACT INFO
Department of Economic, Small Business Development,
Tourism and Environmental Affairs
Physical address: Bojanala Building, 34 Markgraaf Street,
Bloemfontein 9300
Tel: 086 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
Petroleum Agency SA: www.petroleumagancy.com
Sasol: www.sasol.com
South African National Energy Association: sanera.org.za
49 FREE STATE BUSINESS 2017

OVERVIEW
Manufacturing
The Free State’s Special Economic Zone is attracting new manufacturing investment.
Innovation in manufacturing is the name of the game at the
Product Development Technology Station (PDTS) at the Central
University of Technology (CUT). CUT has campuses in Bloemfontein
and Welkom.
The PDTS helps small businesses (SMMEs) with the technology to
design new products, to test them or to improve existing products. The
PDTS is funded by the Technology Innovation Agency (TIA) and works in
partnership with another CUT unit, the Centre for Rapid Prototyping and
Manufacturing (CRPM). This unit’s speciality is 3D printing (or Additive
Manufacturing). With 10 AM machines, the CRPM is extremely wellequipped;
there are few organisations in the southern hemisphere
with such resources.
This kind of innovative thinking is needed as the Free State urgently
looks for ways to develop new kinds of manufacturing businesses.
Reliance on mining and agriculture (purely as producers of raw materials)
is becomingly increasingly precarious, as recent commodity price
falls have shown. These primary sectors are now being seen as targets for
beneficiation, but new manufacturing opportunities are also being sought.
One of the ways of attracting new manufacturers is through tax and
other incentives in the province’s Special Economic Zone (SEZ), the 1 000ha
Maluti-a-Phofung SEZ at Harrismith, a vital transport and logistics node on
the N3 between Johannesburg and Durban. Already there has been interest
from companies in a variety of countries including China, Bulgaria and India.
Among the projects in the pipeline are a factory making transformers and
another manufacturing medical equipment. Gas canisters, fruit concentrate
and smart meters are other things that are going to be made in the SEZ.
Local communities and entrepreneurs are being encouraged
to think of ways of using assets that will be left behind:
shafts, workshops, boarding houses, recreational facilities and
metallurgical plants.
Agriculture and mining can still play an important role in providing
raw materials for manufacturing processes. The Virginia Jewellery Hub,
for example, takes advantage of the availability of gold and silver in the
Lejweleputswa district.
Assets
The existing manufacturing sector also has capacity in many sectors
including chemicals, agri-processing, textiles, carpets, engineering,
packaging, furniture and jewellery.
SECTOR INSIGHT
SMME manufacturers in
the Free State can have
their products tested and
improved.
• Nouwens Carpets has
joined the Green Building
Council of South Africa.
• Boxmore Plastics has
created a special PET beer
bottle.
Nouwens Carpets, based in
Harrismith, was established in that
town in 1962 and has now joined
the Green Building Council of
South Africa. Another Harrismith
manufacturer, Boxmore Plastics, is
South Africa’s biggest converter of
PET resin to bottles and it sells its
products in 26 countries. Boxmore
has developed a PET bottle especially
for the South African
beer market.
Boxmore Packaging’s new PET
beer bottles are the first PET bottles
specifically designed for beer
on the SA market.
Empire Gloves makes industrial
gloves. Kroonstad-based
Octa Engineering makes specialised
rail carriages for the gold
and platinum mining sector on a
10 000m² site that contains two
factories. The company employs
about 250 people.
In Bloemfontein, Transnet
Engineering manufactures new
wagons for the Transnet group,
including iron ore and cement
FREE STATE BUSINESS 2017
50

OVERVIEW
wagons and fuel tankers. Transnet
wants the group’s component
companies to go beyond simply
supplying other Transnet companies.
To this end, it has invested
about R300-million in developing
its Trans-Africa Locomotive, which
it intends to sell on the continent.
The domestic fleet of coal and
iron ore wagons comprises about
10 000 wagons.
Although the textile and apparel
sector has been under tremendous
pressure from cheap
imports, something of a recovery
has more recently been achieved
through specialisation and
through the coming together of
smaller operators. The Industrial
Development Corporation has
also targeted the clothing and
textile industry as one that has
been particularly hard hit by a
high influx of inexpensive textile
products. It consequently
has supported (either by way
of loans or equity investments)
several manufacturers. (A similar
scheme operates in Leather and
Footwear.)
The towns of Botshabelo,
QwaQwa and Thaba Nchu
have factories employing several
thousand people. The Free
State Clothing Manufacturers’
Association comprises mostly
Chinese and Taiwanese factory
owners, according to the Mail &
Guardian.
Nearly 20% of the Free State’s
manufacturing sites are devoted
to food and beverages, with softdrink
giant Coca-Cola Fortune,
operating a large bottling plant in
Mangaung. Clarens in the northeast
has its own microbrewery,
Clarens Brewery, which hand-
crafts 8 000 litres of full-grain ales a month using the finest malts
and hops sourced both locally and internationally, as well as 200 000
litres of cider under its Red Stone Cider label annually. Landzicht Wine
Cellar, an operation that distributes 2.4-million litres of wine every year
from Jacobsdal, has a new bottling plant.
Nestlé makes infant nutrition products in Harrismith, and Clover
has three factories in the province, which produce butter, whey and
milk products.
The Imbani Homsek Group is an integrated dairy products producer
with one of the biggest Ayrshire herds in the world, with
2 000 head registered. Its Bloemfontein facility can produce up to
120 000 litres per day of fresh dairy products, backed up by a further
200 000 litres per day from their Long Life factory. It supplies all the
major retailers nationwide, with its fresh milk being stocked by the
Woolworths group.
The main poultry and animal feed operations of Imbani Homsek
Group (CHB) are in the Free State. They supply between 1.2-million
and 1.4-million of chickens on a weekly basis to retail and fast food
clients around South Africa.
One of CBH’s strategic subsidiaries is Nutri Feeds, a manufacturer
of animal feed with feed mills in Bloemfontein (monthly capacity of
(6 000 tons) and Viljoenskroon (32 000 tons) and Mafikeng (8 000 tons).
Chemicals are a major sector within the Free State manufacturing
basket. Reference has already been made to Omnia. AECI is another
major presence in Sasolburg (six-month revenue in speciality chemicals
to June 2016 was R5-billion), but the giant is the company after
which the Northern Free State town was named, Sasol.
The various components of the Free State Sasol complex produce:
Sasol Nitro: ammonia, nitric acid, industrial explosives and fertilisers.
Sasol Polymers: ethylene, propylene, polypropylene and hydrochloric
acid.
Sasol Solvents: alcohols, acrylic acid, ethyl acetate and mining chemicals.
Sasol Olefins and Surfactants (SO&S): paraffins, olefins, zeolites and
oleochemicals.
Sasol Wax: World-leading supplier of hard and medium waxes,
petroleum jellies and liquid paraffins.
CONTACT INFO
Dept of Economic, Small Business Development, Tourism and
Environmental Affairs
Physical address: Bojanala Building, 34 Markgraaf Street,
Bloemfontein 9300
Tel: 086 110 2185 | Fax: 051 400 9593
Website: www.edtea.fs.gov.za
51 FREE STATE BUSINESS 2017

OVERVIEW
Transport and logistics
The Free State is a logistics hub.
SECTOR INSIGHT
• Independent truck
owners in Bloemfontein
have been given new
opportunities.
• A reopened branch rail
line is providing new
connections.
Chemicals, maize and gold are three of the most important
commodities that rail and road logistics companies have
to transport out of South Africa’s most central province.
Expansion on the part of Omnia (the chemicals, explosives
and fertiliser company based in Sasolburg), led to an entirely new set
of rail wagons being designed and built by Transnet Engineering (TE).
Omnia took delivery of 145 new wagons to take ammonia away from
their new plants in Sasolburg. The specialist wagons were designed to
deal with pressure up to 1930kPa and were made of high-grade steel.
To give an idea of the scale of the logistics in the national gas industry,
the Afrox fleet alone covers about 24-million kilometres every
year. Transnet Freight Rail (TFR) delivers chemicals from Sasolburg to
Durban and Richards Bay
Gold miners in the Free State have contracts with independent rail
contractors, such as Sheltam and Rail Road Logistics Grindrod (RRL
Grindrod), for the movement and delivery of their ore from mines to
plants. Sheltam operates out of Virginia.
When it comes to maize, what used to be the preserve of the national
rail carrier (up to 80% of the crop used to be transported by rail)
is now a very competitive environment with road freight operators as
strong competitors. But Transnet Freight Rail has plans to regain market
share. The main grain lines that TFR operates through the Free State
are Kroonstad to Durban and
Klerksdorp to Polokwane.
The reopening of the Orkney-
Vierfontein branch line is an example
of how TFR plans to go
about increasing its market share.
The 15km offers farmers in the
North West province improved
connections to the rest of the rail
network. Grain transport is not
the only reason for revitalising the
line, work on which was mostly
done by Transnet teams working
out of Bloemfontein, but it could
also carry bulk liquids and passenger
trains if there was demand.
For the fast-moving consumer
goods (FMCG) sector, the main
train flows are from Rosslyn
(Pretoria) to Bloemfontein.
Kroonstad is one of the country’s
most important junctions,
straddling as it does the main
line between Cape Town and
Johannesburg. It is also a major
marshalling yard.
Transnet’s manganese packaging
facility in Bloemfontein has
recently expanded the scope of
FREE STATE BUSINESS 2017
52

OVERVIEW
its operation, which has led to
the creation of more opportunities
for SMME truck owners. The
provincial government’s Women
in Transport and Logistics project
has given opportunities for work
to many operators.
Several national roads pass
through the province: the extremely
busy N3 to the ports of
Durban and Richards Bay, the N1
and N5 highways leading to the industrial
development zones at Port
Elizabeth (Coega) and East London,
with the N1 ending at the port city
of Cape Town. A plan to boost “corridor
development” along the N8 is
also in place. The N8 connects the
provincial capital with Lesotho’s
capital, Maseru, and the Northern
Cape city of Kimberley.
Harrismith is also centrally located:
300km from Johannesburg,
350km from Bloemfontein and
300km from Durban. This has
made it the ideal location for a logistics
hub and dry port, and the
volume of cargo passing through
Harrismith has been increasing
steadily for several years.
The Durban-Free State-
Gauteng logistics and industrial
corridor is not only intended
to promote better transport of
goods between the end points,
but also to boost economic development
in towns and rural
areas along the way. The Maluti-
A-Phofung SEZ (Special Economic
Zone) will contribute to this.
The Mangaung Metropolitan
Municipality has a five-year
Integrated Development Plan in
place, and transport is a key component.
The N8 is a central part of
the plan, providing, as it does, the
main link on the east-west axis.
The great advantage of being centrally located also brings with it
the challenge of maintaining roads that are heavily used. National roads
are maintained by the South African National Roads Agency (Sanral),
but there are many roads that the provincial government must keep
in good condition.
The preservation of the network includes ensuring that communities
are not isolated, that township roads are improved and bridges
maintained. Various banks of data also have to be maintained to assist
in management, for example, traffic counting, accident data and
overloading control.
Bloemfontein’s Bram Fischer International Airport is the province’s
major airport and is managed by Airports Company South Africa
(ACSA). A project covering 2 000ha and expected to cost in the region
of R100-billion over several phases has been initiated at the airport.
Ultimately, the area will have industrial land, mixed housing, a regional
mall and be served by public transport.
New Tempe Airport, 15km north of the city, is privately owned and
is used for charter flights, recreational flying and the Bloemfontein Air
Show. Airports are also located at Bethlehem and Welkom, and there
are a number of airstrips on farms and game reserves.
CONTACT INFO
Dept of Police, Roads and Transport
Physical address: 45 Charlotte Maxeke Street, Perm Building,
Bloemfontein 9301
Tel: +27 51 409 8849 | Fax: +27 51 409 8864
Website: www.policeroadstransport.fs.gov.za
Railroad Association of South Africa: www.rra.co.za
Roadfreight Association of South Africa: www.rfa.co.za
South African National Roads Agency Limited: www.nra.co.za
53 FREE STATE BUSINESS 2017

Bram Fischer International Airport
Bloemfontein International Airport
was officially renamed Bram Fischer
International Airport by President
Jacob Zuma at a historic event held
on 13 December 2012. Airports Company
South Africa is honoured to commemorate
the life of a man who stood for what was right
and sacrificed his own heritage for the sake
of freedom for all.
At the heart of the economy in the region,
Bram Fischer International Airport not only
offers a world-class airport operation for passengers
and cargo, but also fulfils its role as
an economic hub strategically situated on the
N8 Corridor, which links Bloemfontein, the
industrial area of Botshabelo and Maseru in
Lesotho. The airport caters for more than
400 000 passengers and 20 000 air traffic
movements per annum.
Historically, the economy of the Free
State depended on agriculture and mining,
with about half of South Africa’s sorghum
and sunflowers, and more than 30% of the
wheat, maize, potatoes and groundnuts
being grown in the province. Livestock, flowers,
cherries and asparagus are other important
agricultural products. In an effort to
reduce reliance on agriculture and mining,
business sectors such as research and innovation,
pharmaceutical manufacturing and
processing of agricultural produce are being
encouraged.
The Free State shares boundaries with six
other provinces as well as Lesotho, and is
crossed by important rail links and two of the
busiest national highways, the N1 and the N3,
giving natural impetus to the focus on logistics
as an economic driver.
Bram Fischer International Airport has been
designated as an economic node and focal
point for development on the N8 Corridor.
Consequently, the airport’s capacity will require
expansion in the future for it to maintain
its pivotal position in expanding the tourism, logistics
and light-industry sectors in the region.
Bram Fischer International Airport will continue
facilitating growth and development in
the Free State and specifically Mangaung.

- In the Heartland of South Africa
Growth and development
opportunities
Boulevard Precinct
Immediately adjacent to the airport, the Boulevard
Precinct will include a private hospital,
residential, retail, schools and commercial
premises. This is an exciting and innovative, 44-
hectare development which will support the
N8 development corridor. It will accommodate
a wide range of tenants, ranging from mixeduse
offices, a service station and a private
hospital. Construction of the first three developments
will commence in 2016, acting as a
catalyst for the node.
The Grasslands
Approximately 98 hectares in extent, this development
property represents a diverse range
of business opportunities. These include an
extended general aviation area, freight, cargo,
logistics and housing.
www.airports.co.za
For more information contact:
Esmaralda Barnes: Tel: 051- 407 2215 . E-mail: esmaralda.barnes@airports.co.za

INTERVIEW
Poised for growth
Esmaralda Barnes, Airport Manager at Bram Fischer
International Airport, discusses some of the
advantages of the airport in Bloemfontein.
Esmaralda Barnes
BIOGRAPHY
Esmaralda Barnes was appointed
as South Africa’s first
woman manager of an international
airport at Pietersburg in
1996. She then moved to Matavia
Airlines, where she managed
their South African operations
before moving to the UAE,
followed by a short stay in The
Gambia. In 2001, Esmaralda
was approached by the South
African Civil Aviation Authority
to take over the management
of Pietermaritzburg Airport.
In 2003, Airports Company
South Africa appointed Esmaralda
as Airport Manager at
Upington, and was transferred
to Bram Fischer International
Airport in 2013.
Could you give an overview of the facilities and capacity
of the airport?
In terms of capacity, over the previous financial year, the airport processed
a total number of 34 348 Air Traffic Movements, which produced
393 471 passenger movements. This is an 8% increase on the previous
financial year’s movement, and a 5% increase compared to budget.
This is good considering the current slow growth in the national and
provincial market.
Bram Fischer International Airport has excellent facilities, which
include two intersecting runways, that assist with landing and taking
off from the alternate runway should it not be conducive for the main
runway to be used. This almost eliminates chances of having to divert
traffic due to heavy or swirling wind movements.
What services do you offer to businesses?
Bram Fischer International Airport is the main aviation hub in the Free
State. We carry a diversion status for the country, which means that if
an aircraft cannot land at its destination due to weather or technical
challenges, our airport is the next point of diversion. Bram Fischer
International Airport is well positioned to offer a national distribution
and collection point to exporters and importers of light cargo. The
size of the infrastructure enables quick processing of imports and
exports efficiently.
We are well positioned to relieve pressure from OR Tambo
International Airport, while ensuring growth of the Free State province.
What opportunities for development are there at the
airport?
There is vast undeveloped land near the airport. Airport Company
South Africa’s drive is to focus on non-aeronautical revenue that can be
generated through proper analysis of the business demand and availability
within our region, province and national economy at large.
FREE STATE BUSINESS 2017
56

Tourism
Cultural tourism is a new focus for the Free State.
OVERVIEW
Situated as it is in the centre of the country, the Free State’s
road infrastructure comes under disproportionate pressure,
but the road network plays an important part of the support
system that keeps the tourism industry going.
Tourist operators in the Free State’s northern section are delighted
that the R74 road (Oliviershoek Pass) has been fixed and upgraded.
Providing as it does an alternative to the very busy N3 highway between
Johannesburg and Durban, the R74 is an important link to the
tourism sites along the edge of the Drakensburg mountain range,
including a route from the north to the Royal Natal National Park.
The Free State is putting a focus on culture in various forms, as a
way of expanding the tourist offering of the province. The province
already has dramatic mountainscapes, huge bodies of water that lend
themselves to recreation and the wide open spaces that travellers crave
when they want to get away from the city pressures.
A Heroes’ Park is to be constructed at Thaba Nchu and Tumahole
and statues of Oliver Tambo and Fidel Castro are to be unveiled as
part of the provincial government’s drive to promote cultural projects.
Bloemfontein’s history includes the fact that both the party of apartheid
(the National Party) and the party that helped defeat apartheid,
SECTOR INSIGHT
The Vaal River is a popular
destination for holidaymakers.
• de Stijl Gariep Hotel was
a provincial Lilizela award
winner in 2015.
the African National Congress
(ANC), were founded in the city.
The Mangaung African Cultural
Festival (Macufe) is a Bloemfontein
event that, since it began in 1997,
has become a national and international
event. Offerings range
from music (gospel to jazz and
Afrikaans liedjies) and craft stalls to
poetry, film and theatre, a soccer
tournament and boxing matches.
57 FREE STATE BUSINESS 2017

OVERVIEW
Phase Two in the construction of the Thabo Mofutsanyana Arts
and Culture Centre has begun, and the provincial government
intends establishing sound-recording studios around the province,
to enable talented musicians to record their music, and derive some
income from their talent.
South Africa’s largest hotel groups have several brands that cater to
different markets. In the Free State, Protea Hotels has five properties:
Protea Hotel Bloemfontein by Marriott and Protea Hotel Willow Lake
(both four-star), Protea Hotel Bloemfontein Central (three-star), Protea
Hotel Montrose (Harrismith) and Protea Hotel Clarens.
The four-star Southern Sun Bloemfontein, part of the Tsogo Sun
group, has 147 rooms, and the Goldfields Casino in Welkom is another
Tsogo Sun property.
The City Lodge Bloemfontein boasts 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 these is the President Hotel in Bloemfontein,
a three-star hotel with 145 rooms and banqueting and conference
facilities for up to 420 people.
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 the ability to host conferences
for up to 250 delegates.
The four-star Willow Lodge has
80 rooms. The Naledi Sun Hotel
and Casino is about 65km from
Bloemfontein.
Forever Resorts has a popular
resort with chalet accommodation
and a caravan park on
the banks of the Gariep Dam.
Overlooking the dam is the 43-
room de Stijl Gariep Hotel. Recent
expansions have increased capacity
at the hotel which can now
host weddings and conferences
of up to 250 delegates. The hotel
was the winner of the 2015 Lilizela
provincial Accommodation
Award.
FREE STATE BUSINESS 2017
58

OVERVIEW
Routes
Each of the province’s district
municipality has its own tourism
brand or route:
Cheetah Route (Mangaung
Metro and surrounds):
Bloemfontein has a host of historical
and cultural sites, including the
Naval Hill Precinct (home to the
Digital Planetarium), the Anglo-
Boer War Museum, the National
Museum (which has the Florisbad
skull), the Choet Visser Rugby
Museum, the SA Armour Museum
and the Fire Station Museum.
Nearby Thaba Nchu is where the
great statesman Moshoeshoe
held court in the second half of
the 19th century, and created a
nation against the odds.
Springbok Route (Xhariep
District): Travellers can start their
journey at a diamond mine, visit a
wine farm and finish on the top of the Xhariep Dam. Several Anglo-Boer
War battle sites and superb San rock engravings can be found dotted
around the district.
Flamingo Route (Lejweleputswa District): One of the biggest agricultural
expos in the world takes place at Bothaville. Phakisa race track
in Welkom attracts large crowds and it has so far hosted six World
Motorcycle Grand Prix events, providing a big boost to the regional
economy. Two small towns hold big interest: Winburg is the oldest
proclaimed town in the country (and home to a museum and a monument
to the Voortrekkers); Brandfort is where Winnie Mandela spent
several years in internal exile. The district has several game farms, game
reserves and resorts
Lion Route (Fezile Dabi District): The northern part of the province is
covered by this route, and includes the banks of the Vaal River which
provides its own natural tourist attraction (boating, yachting, camping,
etc). Parys is a popular destination and there is even a crocodile
farm in Deneysville. Cape wines can be tasted on two farms in the
Heilbron area near Sasolburg. The idea behind the Riemland Wine
Route is to bring Cape wine tasting closer to wine-lovers in northern
areas. The Vredefort Dome, site of a meteorite strike in the distant
past, is a World Heritage Site.
Eagle Route (Thabo Mofutsanyane District): Some of the most
spectacular scenery can be found in this north-eastern part of the
province, which encompasses the Golden Gate Highlands National
Park and Resort. Ficksburg has claims to be the world’s Cherry
Capital and nearby Clarens is very popular with weekenders looking
for art in a rustic village atmosphere (and a micro-brewery).
Bethlehem’s recent 150th anniversary saw the town host a Combined
Inter-Faith Service, a carnival, and flea market and a Gospel Festival.
Bethlehem hosts an annual Bethlehem Air Show and the Maize Fair
in October. Phuthaditjhaba is a good starting point for the Basotho
Cultural Village and access to the Vulture Restaurant and Witsieshoek
Mountain Resort.
CONTACT INFO
Dept of Economic, Small Business Development, Tourism &
Environmental Affairs
MEC: Mr. Benny Malakoane
Physical address: Bojanala Building, 34 Markgraaf Street,
Bloemfontein 9300
Postal address: Private Bag X20801, Bloemfontein 9300
Tel: 086 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
59 FREE STATE BUSINESS 2017

OVERVIEW
Education and training
Access to education is growing fast in the Free State.
SECTOR INSIGHT
The Central University of
Technology has hosted
a national engineering
conference.
Basic education and training statistics show that access to
schooling and training has increased markedly in recent
years. Enrolment in Grade R (reception year) increased in 2015
to 704 000 at 663 public schools and 263 other community
sites in the Free State. A record number of 25 160 candidates registered
for the 2015 National Senior Certificate exams.
At the same time, high quality research is conducted at the University
of the Free State (UFS) and the Central University of Technology (CUT).
UFS caters for 17 500 students at two sites and a further 3 000 who
study by correspondence. Six faculties offer a full range of undergraduate
and postgraduate programmes such as those offered by the Centre
for Financial Planning Law.
Research is on the increase at UFS, with a record number of scholarly
books appearing in various disciplines. The new SANRAL chair in
Science, Mathematics and Technology education was launched in
Bloemfontein in 2014, five research chairs were awarded to UFS by
the South African Research Chairs
Initiative (SARChi) and in 2016 UFS
has 127 researchers rated by the
National Research Foundation.
A number of new buildings
have gone up or are being built on
the Bloemfontein campus. These
include a high-performance gymnasium
and new buildings for the
Education and Health faculties.
On the Qwaqwa campus, a new
Physics and Geography complex
has been constructed.
CUT has a main campus in
Bloemfontein and branches in
Welkom and Kimberley. There are
three faculties: Engineering and
Information and Communication
Technology, Health and
Environmental Sciences,
and Management Sciences.
Researchers at units such as
the Centre for Community,
Environmental and Industrial
Development tackle important
regional issues.
In September 2016, CUT cohosted
an electrical engineering
conference under the title
“Engineering for a better future”,
FREE STATE BUSINESS 2017
60

OVERVIEW
bringing together technicians,
technologists, engineers and
researchers in the sector.
The Department of Electrical,
Electronic and Computer
Engineering (which is part of the
CUT’s Faculty of Engineering and
Information Technology) partnered
with the South African
Institute of Electrical Engineers
(SAIEE), and Eskom, the national
utility, in hosting the conference,
which attracted 250 delegates.
A unit that supports manufacturing
at CUT is the Centre
for Rapid Prototyping and
Manufacturing (CRPM). It specialises
in Additive Manufacturing
(AM), also known as 3D printing.
CRPM works in the commercial
field as well as doing research
in Rapid Prototyping, Rapid
Manufacturing, Rapid Tooling and
Medical Product Development
technologies. Manufacturers can
make prototypes more easily (in
sand, metal or plastic) with the
support of the CRPM than would
otherwise the case if they had to
start from scratch.
UFS, CUT and the Free State
Provincial Government have
launched AHA Bokamoso: Joining
Minds for Skills Development. The
main thrust of this project is to foreground
skills development in information
technology (IT). Key points
are the establishment of a Regional
Innovation Centre on the main
campus in Bloemfontein (with an
IT Hub on the Welkom campus),
together with Saturday School (focussing
on mathematics and science)
and training programmes for
Department of Education officials.
A provincial bursary programme
is a collaboration
between the Provincial Government and the educational institutions.
An additional 400 students have the chance to study in Russia, Bulgaria,
Belarus, Turkey, Germany and Portugal.
Skills
A strong trend towards expanded practical training is being encouraged
by the national department of Higher Education and Training.
A national register of artisans is being mooted as well as an increase
in access to all sorts of trade-related learning opportunities. South
Africa currently produces about 13 000 every year; the aim is to increase
this to 30 000.
Provincial government departments have been awarded about
R316-million in support and bursaries for more then 5 000 students
across the province.
There is a National Student Financial Aid Scheme, which is under
pressure following a concentrated protest across South Africa against
high university fees. Bursaries are also available under the National
Skills Fund.
What for several years were known as Further Education and
Training Colleges (FET) have now been rebranded as Technical and
Vocational Education and Training (TVET) Colleges. The Free State
has just over 14 000 students at four TVET colleges, taught by 400
lecturers. The colleges have multiple sites. Maluti TVET College in
Phuthaditjhaba, for example, offers classes at seven sites. Flavius
Mareka TVET College has Kroonstad and Sasolburg venues. Motheo
TVET College operates in Bloemfontein and Thaba Nchu, while
Goldfields TVET College is in Welkom.
Technical schools are being upgraded by the provincial government,
with resources being allocated to the recapitalisation
programme.
Bursaries form an important part of the plan to help students attain
qualifications. In addition, a provincial internship programme gives
graduates a chance to work in provincial government departments
and municipalities. In 2016, the plan was to place 517 graduates in
the programme.
CONTACT INFO
Central University of Technology: www.cut.ac.za
Council of Higher Education: www.che.ac.za
Education Association of South Africa: www.easa.ac.za
Free State Department of Education: www.education.fs.gov.za
University of the Free State: www.ufs.ac.za
61 FREE STATE BUSINESS 2017

LISTING
Free State Provincial Government
A guide to Free State’s provincial government departments.
Visit: www.freestateonline.fs.gov.za
Office of the Premier
Premier: Mr Ace Magashule
Physical address: 4th Floor,
OR Tambo Building, Cnr St Andrew & Markgraaf
Streets, Bloemfontein 9300
Postal address: PO Box 517, Bloemfontein 9300
Tel: +27 51 405 5799 | Fax: +27 51 405 4803
Website: www.premier.fs.gov.za
Department of Agriculture and Rural
Development
MEC: Mr Motete Daniel Khoabane
Physical address: Main Building, Gielie Joubert
Street, Glen, Bloemfontein 9360
Postal address: Private Bag X01, Glen,
Bloemfontein, 9360
Tel: +27 51 861 8401
Fax: +27 51 861 8578 / 086 723 8206
Website: www.ard.fs.gov.za
Department of Cooperative Governance,
Traditional Affairs and Human
Settlements
MEC: Ms Sefora Sisi Ntombela
Physical address: 7th Floor, Lebohang Building,
Cnr St Andrew’s & Markgraaf Streets,
Bloemfontein 9301
Postal address: PO Box 211,
Bloemfontein 9300
Tel: +27 51 403 3224
Website: www.fscogtahs.gov.za
Department of Economic, Small
Business Development, Tourism and
Environmental Affairs
MEC: Mr Benny Malakoane
Physical address: Bojanala Building,
34 Markgraaf Street, Bloemfontein 9300
Postal address: Private Bag X20801,
Bloemfontein 9300
Tel: +27 51 400 9593
Fax: +27 51 400 2158
Website: www.edtea.fs.gov.za
Department of Education
MEC: Mr Pule Makgoe
Physical address: Free State Provincial Government
Building, 55 Elizabeth Street, Bloemfontein 9300
Postal address: Private Bag X20565,
Bloemfontein 9300
Tel: +27 51 404 8411
Fax: +27 51 404 8269
Website: www.education.fs.gov.za
Department of Health
MEC: Mr Butana Komphela
Physical address: Cnr Harvey & Charlotte Maxeke
Streets, Bloemfontein 9300
Postal address: PO Box 227,
Bloemfontein 9300
Tel: +27 51 408 1105
Fax: +27 51 408 1107
Website: www.fshealth.gov.za
FREE STATE BUSINESS 2017
62

LISTING
Department of Police, Roads
and Transport
MEC: Mr Sam Mashinini
Physical address: 4th Floor Perm Building, 45
Charlotte Maxeke Street, Bloemfontein 9301
Postal address: PO Box 119,
Bloemfontein 9300
Tel: +27 51 409 8849
Fax: +27 51 409 8864
Website: www.freetrans.gov.za
Department of Public Works and
Infrastructure
MEC: Ms Dora Kotzee
Physical address: Cnr Markgraaf and St Andrew’s
Streets, Bloemfontein 9301
Postal address: PO Box 7551,
Bloemfontein 9301
Tel: +27 51 405 4692
Fax: +27 51 405 4490
Website: www.publicworks.fs.gov.za
Department of Sports, Arts, Culture and
Recreation
MEC: Mrs NS Leeto
Physical address: 4th Floor, Business Partners
Building, Cnr Henry and Eastburger Streets,
Bloemfontein 9300
Postal address: Private Bag X20606,
Bloemfontein 9300
Tel: +27 51 410 4727
Fax: +27 51 410 4758
Website: www.sacr.fs.gov.za
Provincial Treasury
MEC: Ms Elzabe Rockman
Physical address:
55 Elizabeth Street, Fidel Castro Building,
Bloemfontein 9300
Postal address: Private Bag X20537,
Bloemfontein 9300
Tel: +27 51 403 3456 / 405 4229
Fax: +27 51 403 3244
Website: www.treasury.fs.gov.za
Department of Social Development
MEC: Ms Limakatso Particia Mahasa
Physical address: Civilia Building, 14 Elizabeth
Street, Bloemfontein 9300
Postal address: Private Bag X20616,
Bloemfontein 9300
Tel: +27 51 409 0619 | Fax: +27 51 409 0618
Website: www.socdev.fs.gov.za
Free State coat of arms
In the centre of the shield is the indigenous
Orange River Lily (Crinum
Bulbispernum.) The blue and green
shield symbolises the green grasslands
and the blue skies of the province.
The sandstone formations of the
Eastern Free State are represented
by the top of the yellow shape. The
shield is supported by two cheetahs.
The crown on top of the shield consists
of diamonds, mealie (maize) cobs
and ears of corn. These also bear witness
to the agricultural and mining
heritage of the province. The earth
of the Free State is portrayed by the
base of the coat of arms.
Motto “Prosperity through unity”
63 FREE STATE BUSINESS 2017

LISTING
Free State Local Government
A guide to metropolitan, district and local municipalities in the Free State Province.
Mangaung Metropolitan Municipality
Physical address: Bram Fischer Building, cnr Nelson Mandela and
Markgraaff streets, Bloemfontein 9301
Postal address: PO Box 3704, Bloemfontein 9300
Tel: +27 51 405 8494 | Fax: +27 51 405 8663
Website: www.mangaung.co.za
Fezile Dabi District Municipality
Physical address: John Vorster Road, Sasolburg 1947
Postal address: PO Box 10, Sasolburg 1947
Tel: +27 16 970 8615 | Fax: +27 16 970 8747
Website: www.feziledabi.gov.za
Local municipalities encompassed
Mafube Municipality
Tel: +27 58 813 1051 | Fax: +27 58 813 3072
Website: www.mafubemunicipality.gov.za
Metsimaholo Municipality
Tel: +27 16 973 8301 | Fax: +27 16 973 2191
Website: www.metsimaholo.gov.za
Moqhaka Municipality
Tel: +27 56 216 9111 | Fax: +27 56 216 9122
Website: www.moqhaka.gov.za
Ngwathe Municipality
Tel: +27 56 816 2700 | Fax: +27 56 817 6343
Website: www.ngwathe.fs.gov.za
Lejweleputswa District Municipality
Physical address: cnr Jan Hofmeyer and Tempest streets, Welkom 9460
Postal address: PO Box 2163, Welkom 9460
Tel: +27 57 353 3094 | Fax: +27 57 353 3382
Website: www.lejweleputswa.co.za
Local municipalities encompassed
Masilonyana Municipality
Tel: +27 57 733 0106 | Fax: +27 57 733 2217
Website: www.masilonyana.fs.gov.za
Matjhabeng Municipality
Tel: +27 57 391 3911 | Fax: +27 57 357 4393
Website: www.matjhabeng.co.za
Nala Municipality
Tel: +27 56 514 9200
Fax: +27 56 515 3922
Website: www.nala.fs.gov.za
Tokologo Municipality
Tel: +27 53 541 0014 | Fax: +27 53 541 0360
Website: www.tokologo.fs.gov.za
Tswelopele Municipality
Tel: +27 51 853 1111 | Fax: +27 51 853 1332
Website: www.tswelopele.fs.gov.za
Thabo Mofutsanyana District
Municipality
Physical address: Old Parliament Building, 1 Mamopi Street,
Phuthaditjhaba 9870
Postal address: Private Bag X810, Witsieshoek 9870
Tel: +27 58 718 1000 | Fax: +27 58 718 4090
Website: www.thabomofutsanyana.fs.gov.za
Local municipalities encompassed
Dihlabeng Municipality
Tel: +27 58 303 5732 | Fax: +27 58 303 4703
Website: www.dihlabeng.gov.za
Maluti-a-Phofung Municipality
Tel: +27 58 718 3700 | Fax: +27 58 718 3777
Website: www.map.fs.gov.za
FREE STATE BUSINESS 2017
64

LISTING
Mantsopa Municipality
Tel: +27 51 924 0654 | Fax: +27 51 924 0020
Website: www.mantsopa.fs.gov.za
Nketoana Municipality
Tel: +27 58 863 2811 | Fax: +27 58 863 2523
Website: www.nketoana.fs.gov.za
Phumelela Municipality
Tel: +27 58 913 8300 | Fax: +27 58 913 2317
Website: www.phumelela.psalm.co.za
Setsoto Municipality
Tel: +27 51 933 9300 | Fax: +27 51 933 9383
Website: www.setsoto.info
Xhariep District Municipality
Physical address: 20 Louw Street, Trompsburg 9913
Postal address: Private Bag X136, Trompsburg 9913
Tel: +27 51 713 9300
Fax: +27 51 713 0461
Website: www.xhariep.gov.za
Local municipalities encompassed
Kopanong Municipality
Tel: +27 51 713 9200
Fax: +27 51 713 0292
Website: www.kopanong.gov.za
Letsemeng Municipality
Tel: +27 53 205 9206
Fax: +27 53 205 0144
Website: www.letsemeng.gov.za
Mohokare Municipality
Tel: +27 51 673 9600
Fax: +27 51 673 1550
Website: www.mohokare.co.za
Naledi Municipality
Tel: +27 51 541 0012
Fax: +27 51 541 3181
Website: www.naledi.fs.gov.za
MUNICIPALITIES IN THE FREE STATE
North West
Gauteng
Metsimaholo
Fezile Dabi
Mafube
Mpumalanga
Ngwathe
Nala
Moqhaka
Nketoana
Phumelela
Tswelopele
Matjhabeng
Thabo Mofutsanyana
Northern Cape
Tokologo
Lejweleputswa
Setsoto
Dihlabeng
Maluti-a-Phofung
Mangaung
Masilonyana
Mantsopa
KwaZulu-
Natal
Letsemeng
Xhariep
Naledi
LESOTHO
N
Mohokare
Kopanong
Metropolitan/District
Municipality boundary
Local Municipality Boundary
District Municipality
Local Municipality
Xhariep
Naledi
Eastern Cape
65 FREE STATE BUSINESS 2017

PROFILE
Mangaung Chamber of
Commerce and Industry
The Chamber seeks to be the voice of business in the Free State and to assist in
promoting economic development and investment in the province.
The Mangaung Chamber of Commerce and Industry
(MCCI) was constituted in March 2004, following
unity negotiations among three former business
organisations – CBI/SBI (Bloemfontein Sakekamer),
the AHI and NAFCOC. In forming a new chamber of
commerce and industry, the unifying bodies agreed
to forego their independent identities.
Since unification, the MCCI has been campaigning
for recognition from the local and provincial
governments as the representative of the business
community in Bloemfontein as well as the Free State.
Objectives
The main objectives of the MCCI are:
• To relaunch the MCCI as a Free State-oriented
chamber.
• To incubate small chambers of business elsewhere
in the province.
• To give practical credibility to the term “local
economic development” – and this applies not
only to Mangaung, but other areas in the Free
State as well.
• To foster close relationships and twinning agreements
with other urban chambers in SA.
• To promote and support local businesses through
specific interventions like the “Member-support-
Member” campaign.
• To establish a vibrant business network that will
promote entrepreneurial enterprises and small
business as well as the creation of employment
opportunities.
• To present entrepreneurial programmes to
promote business innovation and to back this
up with arrangements for future coaching and
mentoring.
• To promote BEE by, among others, linking
big and small businesses through the chamber
network.
• To influence and monitor relevant authorities
and role-players.
• To promote the development of the Free State
and surrounds as a prime locality for investment.
• To promote the development of the city and
surrounds as a destination of choice for tourists.
• To become a strategic vehicle for the participation
of member businesses in social responsibility
programmes.
• To promote and support initiatives aimed at
renewable and alternative energy sources.
Benefits for members
• Innovative networking events and opportunities.
• Member-support-Member campaign.
• SMME development and support centre.
• Import and export support centre.
• Seminars, workshops and mentoring.
• Advertising.
• Lobbying municipalities, local and provincial
government.
• Exclusive benefits for Gold members.
CONTACT INFO
The Mangaung Chamber of Commerce
and Industry
Tel: +27 51 447 3368/9
Fax: +27 51 447 5064
Email: info@bcci.co.za
Website: www.mcci.co.za
FREE STATE BUSINESS 2017
66

Free State Development
Corporation (FDC)
Driving enterprise development and investment in South Africa’s
most central province, the Free State.
The FDC contributes to the Free State’s economic
development through four service delivery
pillars:
SMME/co-operative funding and support
The FDC provides products and services to SMMEs
and co-operatives in the form of financial support
(business loans) as well as business development
support (facilitating training and mentoring service
providers).
The principal loan products offered to Free State
entrepreneurs by the FDC are:
• Start-up loans for recently established businesses
that are mainly at formative stages.
• Expansion loans offering viable and existing
businesses the capital needed to expand.
• Business take-over finance to assist potential
clients to acquire a business as a going concern.
• Bridging finance for SMMEs with short-term cashflow
problems with contracts or tenders.
Property management
The FDC administers a diverse property portfolio
and can offer small to medium enterprises suitable
premises at affordable rates. The corporation has
some 253 commercial properties, 290 industrial
properties and a large number of residential and
vacant land for development.
The corporation aims to use them to facilitate
commercial and industrial activity, while assisting
new investors looking for suitable premises.
The FDC offers advice and guidance in terms of
the following incentives:
• Subsidised rental rates.
• Rental holidays of up to three months.
• Special incentives and discounts for BEE
companies or individuals.
Export-related services
FDC services to exporters include the Export
Promotion Programme, which aims to grow
demand for Free State products in global markets
through capacity-building workshops, the
dissemination of trade leads, networking opportunities
with inbound trade missions, product
promotion through participation in outbound
group missions and on national and international
exhibitions, access to national export-incentive
programmes, market access information and
technical advice on exporting procedures.
Investor services
The FDC offers a range of services to investors and
businesses looking to trade in the Free State. These
include the following:
• Project appraisal and packaging.
• Promotion and facilitation of investment projects
and facilitation of access to finance.
• Providing access to business and government
networks and assistance with business retention
and expansion.
• Information on statutory requirements, investment
advice and assistance with investment
incentive applications and business permits.
• Assisting with the development of local and international
markets and facilitating joint ventures/
equity partnerships through identification of
local partners.
For additional information please contact
the Free State Development Corporation on +27 51 400 0800.
www.fdc.co.za

Driving
Economic Development
in the Free State Province
Enterprise
development
Property
management
Investment
facilitation
Export
promotion
Tel: 051 400 0800
Email: info@fdc.co.za | Web: www.fdc.co.za