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Limpopo Business 2016-17 edition

The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province. Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.

The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.

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LIMPOPO<br />

BUSINESS<br />

<strong>2016</strong>/<strong>17</strong> EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN LIMPOPO PROVINCE<br />

JOIN US ONLINE<br />

WWW.LIMPOPOBUSINESS.CO.ZA


<strong>Limpopo</strong> Economic<br />

Development Agency<br />

The <strong>Limpopo</strong> Economic Development Agency (LEDA) undertakes numerous activities<br />

and programmes in order to strengthen the economic and business climate in <strong>Limpopo</strong>.<br />

Vision<br />

To be a leader in sustainable economic growth<br />

and job creation.<br />

Mission<br />

To implement integrated economic development<br />

initiatives in <strong>Limpopo</strong>, through:<br />

• Accelerated industrial diversification<br />

• Increased levels of trade and investment<br />

• Developing sustainable enterprises<br />

Strategic goals<br />

• Accelerated industrial diversification through<br />

strategic economic development initiatives<br />

• Sustainable enterprises in targeted sectors of<br />

the economy<br />

• Increased trade and investment in <strong>Limpopo</strong><br />

• Public accountability, sound corporate governance<br />

and sustainable resource utilisation<br />

Core functions<br />

LEDA’s role encompasses the following spheres:<br />

Industrialisation<br />

• Special Economic Zones (SEZ) and corridor<br />

development<br />

• Property and infrastructure<br />

• Development (commercial, industrial),<br />

agribusiness development<br />

Enterprise Development and Finance<br />

• Financial support<br />

• <strong>Business</strong> support<br />

• Training and development<br />

• Strong focus on cooperative development<br />

and support<br />

Trade and Investment Promotion<br />

• Growth sectors<br />

• Investment promotion (FDI and local)<br />

• Export promotion and development<br />

• Project facilitation and venture capital<br />

LEDA has a number of subsidiary companies that<br />

function as commercial entities. These are:<br />

• Great North Transport<br />

• Risima Housing Finance Corporation<br />

• Corridor Mining Resources (plus nine of its<br />

subsidiaries)<br />

• Venteco and Mununzu tea estates/Mashashane<br />

Hatchery<br />

The agency’s associate companies include:<br />

• OK Bazaars (Venda)<br />

• Attaclav<br />

• Bopedi Shopping Centre<br />

• AON <strong>Limpopo</strong><br />

• Mokopane Mall<br />

Head office:<br />

Enterprise Development Finance House, Main Road, Lebowakgomo, Polokwane 0699<br />

Tel: +27 15 633 4700 | Fax: +27 15 633 4854 | Website: www.lieda.co.za


Research and development<br />

Industrialisation initiatives<br />

<strong>Business</strong> support and finance<br />

Trade and investment<br />

Satellite offices<br />

Fetakgomo: +27 15 622 8904 • Giyani: +27 15 812 <strong>17</strong>56 • Jane Furse: +27 13 265 1993 • Lephalale: +27 14 763 <strong>17</strong>99<br />

Makhado: +27 15 516 5275 • Marble Hall: +27 13 261 1610 • Modimolle: +27 14 7<strong>17</strong> 1239<br />

Modjadiskloof: +27 15 309 3925 • Mokopane: +27 15 491 8582 • Molemole: +27 15 526 7900 • Musina: +27 15 534 2266<br />

Mutale: +27 15 967 1902 • Phalaborwa: +27 15 781 0029/8<br />

Senwabarwana: +27 15 505 9000/1 • Thabazimbi: +27 14 772 2437/73 • Thohoyandou: +27 15 962 6103<br />

Tubatse: +27 13 231 7467


CONTENTS<br />

CONTENTS<br />

<strong>Limpopo</strong> <strong>Business</strong> <strong>2016</strong>/<strong>17</strong> Edition.<br />

Introduction<br />

Foreword 7<br />

<strong>Limpopo</strong> <strong>Business</strong> is a unique guide to business, investment<br />

and tourism in the province.<br />

Welcome to our province, <strong>Limpopo</strong> 8<br />

A message from the Premier of <strong>Limpopo</strong>, the Honourable<br />

Chupu Stanley Mathabatha.<br />

Geared for growth 10<br />

Managing Director of LEDA, Benjam Mphahlele is keen<br />

for businesses and investors to explore the strategic<br />

advantages of <strong>Limpopo</strong>.<br />

Special features<br />

Regional overview of <strong>Limpopo</strong> Province 12<br />

<strong>Limpopo</strong> is the national leader in exports of minerals and<br />

agricultural produce, but industrialisation remains a key<br />

priority for future growth.<br />

The <strong>Limpopo</strong> Development Plan 18<br />

The Provincial Government of <strong>Limpopo</strong>’s Development Plan<br />

aims to carry through the spirit of South Africa’s development<br />

plans on a provincial basis.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

4


No more queues.<br />

UIF COMPLIANCE AT YOUR FINGER TIPS<br />

The Unemployment Insurance Contributions Act 2002,<br />

requires every employer to contribute 2% of the<br />

remuneration in respect of each employee who works for<br />

24 hours and more. The employer contributes 1% and the<br />

employee contributes 1% and the total to UIF is 2%.<br />

The employer is expected to provide the UIF with both the<br />

declaration and the contribution amount on or before the<br />

7th of each month in respect of each employee. It is the<br />

responsibility of the employer to ensure that all employee<br />

are registered with the UIF.<br />

uFiling provides the following benefits<br />

to employers and agents:<br />

• Improved service delivery<br />

• A secure and convenient online service<br />

• Instant updates and access to uFiling data ; and<br />

• Reduced data error.<br />

The fund has leveraged on technological advances to improve<br />

its operational systems to the benefit of its clients. The uFiling<br />

system is an online application that is convenient and user<br />

friendly that employers can use to declare and pay contributions.<br />

To activate as a uFiler the employer must have a UIF reference<br />

number.When opening the web page the user must logon to<br />

www.ufilling.co.za/www.ufliling.gov.za then click on Activate<br />

my ufiling account and select either domestic,commercial or<br />

agent to complete the activation process. The system will guide<br />

the user through the activation process. Once the activation<br />

process is completed, the user will immediately receive an<br />

e-mail notification confirming his or her login details.<br />

NB: The uFiling system also allows employees to submit their<br />

UIF claims online.<br />

For more information about uFiling<br />

Visit www.labour.gov.za or www.ufiling.gov.za<br />

www.ufiling.co.za<br />

Call centre number: 012 337 1680<br />

Toll free number: 0800 843 843<br />

The Unemployment Insurance Fund... Works for you!


CONTENTS<br />

Priority projects in <strong>Limpopo</strong> 22<br />

A range of high-impact projects that have the potential<br />

to improve the <strong>Limpopo</strong> economy.<br />

<strong>Limpopo</strong>’s Special Economic Zones 26<br />

Two Special Economic Zones have been proposed<br />

for <strong>Limpopo</strong>: the Tubatse Platinum SEZ<br />

and the Musina SEZ.<br />

Driving economic development 30<br />

Three subsidiaries of the <strong>Limpopo</strong> Economic Development<br />

Agency (LEDA) are driving economic development in<br />

the province: Corridor Mining Resources, Risima Housing<br />

Finance Corporation and Great North Transport.<br />

Economic sectors<br />

Agriculture 44<br />

<strong>Limpopo</strong>’s avocadoes and macadamias are in big<br />

demand throughout the northern hemisphere.<br />

Mining 48<br />

The Waterberg region is attracting mining companies.<br />

Transport and logistics 52<br />

Transport and logistics are vital to <strong>Limpopo</strong>’s export trade.<br />

Renewable energy 58<br />

Solar and bio-mass have the greatest potential in <strong>Limpopo</strong>.<br />

Water 60<br />

A <strong>Limpopo</strong> Water Master Plan will be tabled during <strong>2016</strong>.<br />

ICT and telecommunications 62<br />

Connecting rural areas is a priority for <strong>Limpopo</strong> authorities.<br />

Tourism 74<br />

The Kruger National Park, which is partly situated in <strong>Limpopo</strong>,<br />

is a favourite destination for domestic and foreign tourists.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

6


Seda Offerings<br />

Seda branches provide offerings that assist businesses<br />

in various phases of their life cycle.<br />

Seda <strong>Business</strong> Talk –<br />

Offerings focusing on clients who want information on starting a business<br />

Assistance Provided:<br />

• <strong>Business</strong> Advice and Information<br />

• Small Enterprise Training<br />

• <strong>Business</strong> Registration<br />

Seda <strong>Business</strong> Start –<br />

Provides tools and techniques for clients who are ready to start a business<br />

and want assistance and direction.<br />

Assistance Provided:<br />

• <strong>Business</strong> Planning<br />

• <strong>Business</strong> Counselling<br />

• Facilitation of Access to Finance<br />

• <strong>Business</strong> Support<br />

Seda <strong>Business</strong> Build –<br />

Offerings focusing on clients who want skills to sustain and strengthen<br />

their businesses.<br />

Assistance Provided:<br />

• Capacity Building Systems<br />

• Mentorship<br />

• Tender Advice / Procurement<br />

• Export Readiness<br />

• Franchising<br />

Seda <strong>Business</strong> Grow –<br />

Offerings focusing on clients who want to grow their businesses<br />

and expand nationally and internationally.<br />

Assistance provided:<br />

• <strong>Business</strong> Systems Development<br />

• Cooperative Support<br />

• Growth Strategies<br />

For more information contact us at: 015 287 2940 or visit our website: www.seda.org.za<br />

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


CONTENTS<br />

Banking and financial services 76<br />

<strong>Limpopo</strong> is a rural province and so the challenge of getting<br />

formal banking services to the population are greater<br />

than in most other provinces.<br />

Development finance and SMME support 78<br />

Mining supply chains can boost SMMEs in <strong>Limpopo</strong>.<br />

Education and training 89<br />

South Africa’s newest medical school opened in<br />

<strong>Limpopo</strong> in <strong>2016</strong>.<br />

Government<br />

South African Government 92<br />

An overview of South Africa’s national government<br />

departments.<br />

<strong>Limpopo</strong> Provincial Government 95<br />

A guide to the province’s government departments.<br />

<strong>Limpopo</strong> Local Government 97<br />

A guide to the district and local municipalities.<br />

Reference<br />

Sector contents 42<br />

Index 104<br />

Maps<br />

<strong>Limpopo</strong> locator map 15<br />

<strong>Limpopo</strong> regional map 96<br />

<strong>Limpopo</strong> municipalities 100<br />

0 50 km<br />

Beitbridge ZIMBABWE<br />

<strong>Limpopo</strong><br />

0 25 miles<br />

Musina<br />

Evangelina<br />

Pafuri<br />

Motorway Palapye<br />

Main Road<br />

Alldays<br />

Tshipise<br />

Railway<br />

Oorwinning<br />

Waterpoort<br />

Tom Burke<br />

Thohoyandou<br />

Mahalapye<br />

Louis<br />

<strong>Limpopo</strong><br />

Trichardt<br />

R81 Kruger<br />

N11<br />

N1<br />

BOTSWANA<br />

Senwabarana<br />

National<br />

Monte Christo<br />

Steilloopbrug<br />

Giyani Park<br />

Morebeng<br />

R81<br />

Lephalale<br />

Gilead<br />

Modjadjiskloof<br />

Groesbeek<br />

Seshego<br />

Tzaneen<br />

Elmeston<br />

Gravelotte Phalaborwa<br />

Mokopane POLOKWANE<br />

Sentrum Vaalwater<br />

Zebedelia<br />

Ofcolaco<br />

R40<br />

N1<br />

Lebowa Kgomo<br />

Thabazimbi<br />

Mookgopong<br />

Hoedspruit<br />

Crecy<br />

Klaserie<br />

Modimolle<br />

Bela-Bela<br />

N11<br />

Pilgrim’s Rest<br />

Marble Hall<br />

Graskop<br />

North West<br />

Lydenburg<br />

Groblersdal<br />

Sabie Hazyview<br />

Sun City<br />

Mpumalanga<br />

Gauteng<br />

Stoffberg<br />

White River<br />

N<br />

MOZAMBIQUE<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

8


CREDITS<br />

Publisher: Chris Whales<br />

Publishing director:<br />

Robert Arendse<br />

Editor: Simon Lewis<br />

Writing: John Young, Karen<br />

Kühlcke, Simon Lewis<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Colin Carter<br />

Production: Lizel Olivier<br />

Ad sales: Shiko Diala, Sam Oliver,<br />

Gabriel Venter, Jeremy Petersen,<br />

Nigel Williams, Veronica Dean-<br />

Boshoff and Sydwell Adonis<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

FOREWORD<br />

<strong>Limpopo</strong> <strong>Business</strong><br />

A unique guide to business and investment<br />

in <strong>Limpopo</strong>.<br />

The <strong>2016</strong>/<strong>17</strong> <strong>edition</strong> of <strong>Limpopo</strong> <strong>Business</strong> is the eighth issue<br />

of this highly successful publication that, since its launch<br />

in 2007, has established itself as the premier business and<br />

investment guide to the <strong>Limpopo</strong> province.<br />

<strong>Limpopo</strong> is unique in terms of it abundant natural and human<br />

resources, and is also one of the key drivers behind the South<br />

African economy.<br />

This <strong>edition</strong> of <strong>Limpopo</strong> <strong>Business</strong> is officially endorsed by the<br />

Office of the Premier of <strong>Limpopo</strong>. To complement the extensive<br />

local, national and international distribution of the print <strong>edition</strong> of<br />

the magazine, the full content can also be viewed online at www.<br />

limpopobusiness.co.za. Updated information on the <strong>Limpopo</strong><br />

economy is also available through our monthly e-newsletter,<br />

which you can subscribe to online at www.gan.co.za, in addition<br />

to our complementary business-to-business titles that cover all<br />

nine provinces as well as our flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

Email: chris@gan.co.za<br />

DISTRIBUTION<br />

<strong>Limpopo</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions, through trade and investment<br />

agencies; to foreign offices in South Africa’s main trading<br />

partners around the world; at top national and international<br />

events; through the offices of foreign representatives in South<br />

Africa; as well as nationally and regionally via chambers of commerce,<br />

tourism offices, trade and investment agencies, airport<br />

lounges, provincial government departments, municipalities<br />

and companies.<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN 1993-0119<br />

COPYRIGHT | <strong>Limpopo</strong> <strong>Business</strong> is an independent publication published<br />

by Global Africa Network Media (Pty) Ltd. Full copyright to the<br />

publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | COVER: BEKA Schréder (Pty) Ltd, Grootgeluk Mine.<br />

Pictures supplied by flickr.com, Anglo American, Wikimedia Commons,<br />

<strong>Limpopo</strong> Economic Development Agency, CNDC Group, Mvula,<br />

Foundation myclimate, Public Domain Images and Pixabay.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>Limpopo</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

9 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


MESSAGE<br />

Welcome to our province, <strong>Limpopo</strong><br />

A message from the Premier of <strong>Limpopo</strong>, the Honourable Chupu Stanley Mathabatha.<br />

Chupu Stanley Mathabatha,<br />

Premier of <strong>Limpopo</strong><br />

It is my great pleasure to have<br />

the opportunity of providing a<br />

note of welcome for the <strong>2016</strong>/<strong>17</strong><br />

<strong>edition</strong> of <strong>Limpopo</strong> <strong>Business</strong> to<br />

all businesses, investors and<br />

members of the public sector,<br />

both locally and from around<br />

the world.<br />

It gives me extra joy to welcome<br />

members of the business<br />

community who are not familiar<br />

with our province, as we have a<br />

great deal to offer, particularly in<br />

terms of agriculture, manufacture<br />

and transport. Not for nothing is <strong>Limpopo</strong> known as the “gateway’”<br />

province, as we share our border with three neighbouring countries -<br />

Botswana, Zimbabwe and Mozambique – as well as being neighbours<br />

to three South African provinces – Gauteng, Mpumalanga and the<br />

North West.<br />

<strong>Limpopo</strong> harbours beautiful and contrasting landscapes, making it a<br />

favourite destination for leisure and adventure travellers worldwide. We<br />

have remained a province that honours and respects our rich natural<br />

heritage, in so doing preserving it for our future generations as well<br />

as sharing it with national and international visitors alike.<br />

The province is divided into five regions, notably Capricorn (occupied<br />

by the Bapedi people), the Waterberg (occupied by the Batswana<br />

people), Vhembe (occupied by the Vhavenda and VaTsonga people,<br />

the latter residing in Mopani) and Sekhukhune, which is dominated<br />

by the Bapedi and Ndebele people.<br />

The warmth and welcome of the people of <strong>Limpopo</strong> has played<br />

a major role in ensuring that our tourism sector has remained the<br />

province’s strategic competitive economic advantage. Despite the<br />

various economic challenges the country has been facing, the province’s<br />

tourism industry has continued to flourish, with the sector<br />

continuing to create jobs and employ more people. We are relishing<br />

our number one spot in the domestic tourism market space. It has<br />

been shown time and again that most South Africans enjoy visiting<br />

our province, and that explains why we retain top billing in the tourism<br />

rankings. The <strong>Limpopo</strong> Tourism Agency has also recently been<br />

restructured to enable it to focus attention on giving our tourism<br />

sector even greater promotion.<br />

Our <strong>Limpopo</strong> Development Plan symbolises our dedication to the<br />

improvement of our provincial economy. This plan is our contribution<br />

to the nation’s development and it details how we as <strong>Limpopo</strong><br />

share the same vision and imperative regarding poverty reduction,<br />

elimination of social inequality and the creation of sustainable jobs<br />

in our province.<br />

The plan has affirmed the role of SMMEs and cooperatives in the<br />

productive sectors as a critical component towards radical economic<br />

transformation. This is in an effort to make <strong>Limpopo</strong> an investment<br />

centre for both national and international investors. During our trade<br />

and investment mission to the People’s Republic of China in October<br />

2014, we signed memorandums of agreement with big investors. The<br />

first memorandum of agreement was signed with Hong Kong Mining<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong> 10


MESSAGE<br />

Exchange Company (Hoi Mor) for the establishment<br />

of South Africa Energy Metallurgical Base Project.<br />

This project whose investment value is estimated<br />

at R38.8-billion, will be based in the Musina Special<br />

Economic Zone, and will create 19 000 direct jobs<br />

over a period of three years. The Hoi Mor investment<br />

will result in beneficiation that integrates various<br />

resources and reduces the export of raw materials<br />

in favour of exporting value-added goods.<br />

Along the same vein, South Africa’s Women’s<br />

Investment Holdings has entered into a joint venture<br />

agreement with Jidong Development Group<br />

and the China Africa Development Fund for a R1.65-<br />

billion investment into a cement-manufacturing<br />

facility that will be based in Thabazimbi. The construction<br />

started in 2014 and is due to be completed<br />

during <strong>2016</strong>. I have no doubt that these investments<br />

will add value to our efforts of expanding the<br />

productive capacity of our province.<br />

Agriculture has also been a huge contributor<br />

to the province’s economy and we have put deliberate<br />

measures in place to entice investment in<br />

the sector. We have also opened Madzivhandila<br />

and Tompi Seleka Agricultural Colleges that<br />

are now fully functional and operational. The<br />

restructured curriculum content will assist in<br />

developing agricultural economists, extension<br />

officers, pasture and soil scientists, agronomists<br />

and horticulturists.<br />

Aside from arguably being one of the friendliest,<br />

our province is also regarded as the safest<br />

province within South Africa and, with that dual<br />

offering, I urge you to come to visit us in <strong>Limpopo</strong><br />

so that you can take advantage of what we have<br />

to offer. Whether you are a tourist, a businessperson<br />

or an investor, <strong>Limpopo</strong> is a province that is<br />

growing in opportunities and a joy to all those<br />

who come.<br />

11<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


MESSAGE<br />

Geared for growth<br />

Managing Director of the <strong>Limpopo</strong> Economic Development Agency,<br />

Benjamin Mphahlele, is keen for businesses and investors to<br />

explore the strategic advantages of <strong>Limpopo</strong> Province.<br />

It is my pleasure to welcome readers not only to the<br />

<strong>2016</strong>/<strong>17</strong> <strong>edition</strong> of the <strong>Limpopo</strong> <strong>Business</strong> publication<br />

but to the entire province of <strong>Limpopo</strong>.<br />

This strategically located province, with its vast<br />

potential, has much to offer local businesspeople<br />

and international investors. The <strong>Limpopo</strong> Economic<br />

Development Agency (LEDA) is happy to be a first<br />

port-of-call for those seeking information on opening<br />

a business here or advice on identifying potential<br />

partners within the province.<br />

This is an exciting time for those interested in<br />

exploring <strong>Limpopo</strong> as a potential business and<br />

investment destination. Construction on the De<br />

Hoop Dam has been completed and the first unit<br />

of the Medupi power station is now in operation.<br />

Furthermore, business is bustling at the massive<br />

Mall of the North.<br />

“LIMPOPO’S GEOGRAPHICAL<br />

LOCATION MAKES IT AN IDEAL<br />

HUB FOR THE MANUFACTURE<br />

OR PRODUCTION OF GOODS<br />

DESTINED FOR EXPORT<br />

ELSEWHERE IN<br />

SOUTHERN AFRICA.”<br />

Benjamin Mphahlele<br />

Perhaps most significant is the fact that<br />

Cabinet has approved the designation of an area<br />

in Musina-Makhado as a Special Economic Zone<br />

(SEZ). A consortium of Chinese investors will be<br />

ploughing more than R40-billion into the energy<br />

and metallurgical industrial park and there will be<br />

numerous opportunities for construction professionals,<br />

manufacturing concerns and mineral beneficiation<br />

businesses. Another SEZ is proposed for<br />

Tubatse and we urge you to consider whether your<br />

business might benefit from an operation in one<br />

of these zones, both of which offer specific tax<br />

incentives and advantages for qualifying investors.<br />

The two SEZs speak directly our vision of a<br />

province that doesn’t focus primarily on the<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

12


MESSAGE<br />

export of raw materials but contributes directly<br />

to their beneficiation. The “double whammy” of<br />

a decline in commodity prices coupled with severe<br />

drought has underlined the urgency of this<br />

objective.<br />

<strong>Limpopo</strong>’s geographical location makes it an<br />

ideal hub for the manufacture or production of<br />

goods destined for export elsewhere in South<br />

Africa or Southern Africa.<br />

Opportunities in our traditional and established<br />

sectors such as agriculture and tourism<br />

have not been exhausted and we welcome enquiries<br />

from entrepreneurs with fresh business<br />

ideas relating to agro-processing or niche travel<br />

experiences. Our province prides itself on offering<br />

a range of cultural and natural/wildlife experiences<br />

for both domestic and international visitors but<br />

astute businesspeople are sure to recognise gaps<br />

in the offering that could be positively exploited.<br />

After some years of consolidation following<br />

the amalgamation of four provincial agencies,<br />

the team at LEDA is keen to promote the next<br />

phase of economic development in the province.<br />

The increasing percentage of goods undergoing<br />

some form of value-add within <strong>Limpopo</strong> itself<br />

keeps us motivated.<br />

We invite readers to study the articles on the<br />

SEZs elsewhere in this publication and to contact<br />

us should they be interested in investigating the<br />

feasibility of setting up an operation there. Those<br />

unfamiliar with <strong>Limpopo</strong> will soon discover – within<br />

the pages of this guide or, preferably, in person<br />

–a province rich in bounty from the earth, people<br />

and opportunity.<br />

Website: www.lieda.co.za<br />

13 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


A REGIONAL OVERVIEW OF<br />

LIMPOPO<br />

PROVINCE<br />

<strong>Limpopo</strong><br />

<strong>Limpopo</strong> is the national leader in exports of minerals and agricultural produce, but<br />

industrialisation remains a key priority for future growth.<br />

<strong>Limpopo</strong> covers about 10% of South Africa’s<br />

land mass and is home to about 10% of the<br />

country’s population (5.4-million). The main<br />

languages of the people of <strong>Limpopo</strong> are Sesotho,<br />

Xitsonga and Tshivenda, although English is<br />

widely used in business and government. The province<br />

shares international borders with Botswana, Zimbabwe<br />

and Mozambique, and provincial boundaries<br />

with the North West, Mpumalanga and Gauteng: the<br />

last of these is extremely significant because proximity<br />

to the country’s economic heartland offers<br />

economic opportunity.<br />

The provincial government has set a clear goal of<br />

rapidly increasing the province’s contribution to the<br />

national GDP from 7.5% in 2014 to 9%.<br />

When it comes to exports, <strong>Limpopo</strong> punches<br />

above its weight because of the abundance of mineral<br />

wealth under the ground, and the superb fruit<br />

and vegetables that the province’s farmers cultivate<br />

in the soil. Potatoes are grown, together with 75%


SPECIAL FEATURE<br />

South Africa’s mangoes and tomatoes; papayas (65%);<br />

tea (36%); citrus, bananas and litchis (25%) and 60% of<br />

the country’s avocadoes.<br />

The best-performing subsector of South African<br />

exports over the last five years is fruit and nuts according<br />

to worldstopexports.com. In 2015 South African<br />

exports of these items were valued at $2.9-billion,<br />

3.6% of the country’s total. This represents a 27%<br />

increase since 2011, and here <strong>Limpopo</strong> has a great record:<br />

avocadoes, mangoes and macadamia nuts from<br />

the province’s eastern regions are hugely popular<br />

in international markets and <strong>Limpopo</strong>’s commercial<br />

farmers are extremely efficient.<br />

<strong>Limpopo</strong> is also a water-scarce province, however,<br />

and there are many subsistence farmers in the<br />

province. Under the system of apartheid, so-called<br />

homelands were created and three of these were located<br />

within the boundaries of what is today <strong>Limpopo</strong><br />

Province: the legacy of poverty that was part of the<br />

homeland plan still exists. The Premier of <strong>Limpopo</strong>,<br />

Chupu Stanley Mathabatha, referred directly to one of<br />

the indicators of poverty in his State of the Nation address<br />

in 2015: “We have also reduced the dependency<br />

index from eight in 2006 to six in 2014. This means<br />

that in our province, for every one person employed,<br />

there are, on average, six people who depend on the<br />

income of that person.”<br />

While welcoming the improvement, the Premier<br />

pledged to work to reduce it still further.<br />

Mining is the other big sector – with agriculture<br />

– in <strong>Limpopo</strong>. <strong>Limpopo</strong> has huge reserves of coal,<br />

platinum, chromium, uranium clay, nickel, cobalt,<br />

vanadium, limestone and tin.<br />

Within <strong>Limpopo</strong>, approximately 400 prospecting<br />

and mining licences have been granted for a wide<br />

range of minerals. These include the largest diamond<br />

mine in South Africa, the biggest copper mine in<br />

South Africa, the biggest open-pit platinum mine<br />

in the country and the biggest vermiculite mine in<br />

the world. The province has 41% of South Africa’s<br />

platinum group metals (PGMs), 90% of South Africa’s<br />

red-granite resources and approximately 50% of the<br />

country’s coal reserves. Antimony, a highly strategic<br />

mineral found in large quantities in China, is another<br />

of <strong>Limpopo</strong>’s major assets.<br />

The provincial government of <strong>Limpopo</strong> is determined<br />

to leverage the mineral sector to create more<br />

industry in the province. To this end, five interventions<br />

are planned for the medium- and long-term:<br />

• A provincial supplier development programme<br />

• A mining community development programme<br />

• A post-mining-era skills development programme<br />

• A provincial industrialisation programme<br />

• A procurement programme that ensures that<br />

mines buy 20% of their supplies from local small,<br />

medium and micro enterprises (SMMEs) and<br />

co-operatives<br />

Another aim is to develop the manufacturing capacity<br />

of the province. The goal is to create value within<br />

the borders of <strong>Limpopo</strong>, and in this way to create<br />

employment. Manufacturing in the province is centred<br />

around mining areas (smelters and refineries),<br />

agricultural estates (juices and concentrates) and in<br />

Polokwane it is strong on food and beverages).<br />

Agri-processing is strong, with Pioneer Foods,<br />

McCain, Granor Passi, Kanhym, Westfalia and<br />

Enterprise Foods prominent, but this sector still has<br />

enormous potential to grow.<br />

Strategic location<br />

The Great North Road passes through <strong>Limpopo</strong><br />

from the south to the border town of Musina and<br />

on to Zimbabwe and its neighbours in the Southern<br />

African Development Community. The province’s<br />

location lends itself to logistical operations and<br />

most of South Africa’s operators have a presence<br />

in the provincial capital city of Polokwane. Freight<br />

logistics hubs have been established at Polokwane<br />

and Musina.<br />

Large national logistics company Value Group has<br />

only four major regional depots outside Gauteng:<br />

the fact that one of these is in Polokwane shows<br />

the importance of <strong>Limpopo</strong> in the logistics chain in<br />

South Africa.<br />

Logistics giant Imperial Logistics Southern Africa<br />

has 70 companies in its group structure, including<br />

Kobus Minaar Transport, a concern that began in<br />

Tzaneen transporting fruit and vegetables. Much of<br />

the agricultural produce of the province has to be<br />

delivered to ports in a hurry because of the delicate<br />

nature of the fruit. Avocadoes are particularly easy to<br />

bruise and so companies such as Freezerlines, Fast ‘n<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

16


SPECIAL FEATURE<br />

Fresh and Cold Chain have developed specialist techniques<br />

in getting these fruits to port and to market<br />

undamaged. Grindrod has a perishable cargo division<br />

that specialises in transporting cargo by air.<br />

<strong>Limpopo</strong>’s thriving mining industry is the other<br />

major driver of the transport and logistics sector.<br />

Polokwane has an international airport and there<br />

are a further two regional airports at Hoedspruit and<br />

Phalaborwa. The rail network is mostly devoted to<br />

getting the products of the province’s many mines<br />

to the coast.<br />

<strong>Limpopo</strong>’s position as a regional hub also brings<br />

its own set of challenges, with vast numbers of vehicles<br />

passing through the province and using its<br />

facilities in the course of delivering goods to all parts<br />

of Southern Africa. New mining operations in the<br />

Waterberg and at Burgersfort and the new power<br />

station at Lephalale have put additional pressure on<br />

existing road infrastructure.<br />

Projects<br />

Two of the largest engineering projects in the history<br />

of South Africa have been undertaken in <strong>Limpopo</strong><br />

over the last few years. Both the Medupi power station<br />

(at Lephalale in the far west) and the De Hoop<br />

Dam (in the south-east) have the potential to give the<br />

region’s economy a massive boost.<br />

The power station at Medupi will eventually add<br />

4 764 megawatts to the national grid and has already<br />

given the local economy of Lephalale a massive boost<br />

with thousands of workers and engineers needing<br />

housing and supplies. There have, however, been<br />

long delays and only one of the facility’s six units had<br />

come online by the end of quarter one <strong>2016</strong>.<br />

The huge De Hoop Dam, which forms part of the<br />

Olifants River Water Resources Development Project<br />

(ORWRDP), is vital to the province’s future. Access to<br />

water is one of the key elements in any discussion of<br />

economic growth in <strong>Limpopo</strong> Province, especially as<br />

the mining and agricultural sectors are so important.<br />

In terms of the ORWRDP, some 23 platinum mines<br />

stand to benefit. The dam was officially opened<br />

in 2014.<br />

Another project that could have a big spinoff<br />

is the South African Energy Metallurgical Base<br />

NAMIBIA<br />

Project, which is being developed in the Musina<br />

Special Economic Zone. The value of this investment<br />

has been given by the provincial government as<br />

R38.8-billion, and a memorandum of understanding<br />

has been signed with Hong Kong Mining Exchange<br />

Company Limited, Hoi Mor. Companies in the mineral<br />

and mineral-beneficiation sectors are expected to<br />

take up sites within the complex.<br />

Plans for another Special Economic Zone (SEZ)<br />

at Tubatse have received a positive result from the<br />

feasibility study.<br />

Tourism<br />

Northern Cape<br />

Western Cape<br />

BOTSWANA<br />

North West<br />

Free State<br />

Eastern Cape<br />

<strong>Limpopo</strong><br />

ZIMBABWE<br />

Mpumalanga<br />

Gauteng<br />

SWAZI-<br />

LAND<br />

LESOTHO<br />

LIMPOPO<br />

KwaZulu-<br />

Natal<br />

The combined land area of <strong>Limpopo</strong>’s national,<br />

provincial and private game and nature reserves is<br />

3.6-million hectares. According to the Premier’s office,<br />

the tourism sector employs about 22 414 people.<br />

Although most of the province’s resorts and lodges<br />

are in private hands, three national parks are located<br />

in <strong>Limpopo</strong> and the provincial government runs 54<br />

nature reserves.<br />

The Kruger National Park is one of the world’s most<br />

famous conservation areas, and a major attraction for<br />

the region. The northern part of Kruger National Park<br />

falls within the province.<br />

Several other public and private game reserves<br />

also exist, as well as other leisure activities and attractions<br />

such as adventure touring and eco- and<br />

cultural-tourism sites. Hunting is another big activity in<br />

<strong>Limpopo</strong> which attracts domestic and foreign visitors.<br />

MOZAMBIQUE<br />

<strong>17</strong> LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


SPECIAL FEATURE<br />

The Modjadji Cycad Reserve contains some of the<br />

oldest and biggest cycad specimens in the world.<br />

<strong>Limpopo</strong> has two World Heritage Sites: the<br />

Mapungubwe National Park in the northern part of<br />

the province is a hill site where a 12th-century ironage<br />

civilisation settled and traded extensively in ivory,<br />

iron ore, copper and beads with traders from far afield.<br />

The Makapans Valley tells the story of the Ndebele<br />

people and has fascinating palaeontological deposits<br />

that tell an even older history.<br />

Situated like many of the other golf estates near<br />

the Great North Road (the N1 highway), Legend Golf<br />

and Safari Resort is part of 22 000-hectare nature and<br />

game conservancy and offers private homes, a hotel,<br />

a wellness centre and a conference centre.<br />

Regions<br />

<strong>Limpopo</strong> has regions with distinct geographical features<br />

and climatic conditions. The dry, cattle-rearing,<br />

western areas contrast with the subtropical regions<br />

of the east where forestry thrives and central regions<br />

where vast plantations produce 60% of the country’s<br />

tomatoes. The semi-arid regions to the north of the<br />

Soutpansberg Mountains are home to the unique<br />

baobab tree, the so-called upside-down tree because<br />

it looks as though its roots are reaching skywards. The<br />

Waterberg Mountains stretch over 14 500km² through<br />

the northern reaches of the province.<br />

<strong>Limpopo</strong> has five district municipalities:<br />

Capricorn District<br />

Capricorn is the economic centre of <strong>Limpopo</strong>, with<br />

the provincial capital Polokwane contributing 13%<br />

of the provincial GDP. The Zebediela Citrus Estate is<br />

one of the biggest citrus estates in South Africa, and<br />

the cultivation of potatoes and tomatoes is done on<br />

a large scale in the district.<br />

The capital city of Polokwane is the province’s<br />

main centre for industry, commerce, education and<br />

medical services.<br />

The city is close to big concentrations of mineral<br />

deposits and to fertile agricultural lands; its industries<br />

reflect this diversity. Large industrial concerns such as<br />

Silicon Smelters (one of the biggest of its kind in the<br />

world) and a big brewery run alongside at least 600<br />

industrial enterprises of a smaller scale. The range<br />

is broad, thus helping to protect Polokwane from<br />

downturns in the economic cycle: soft drink and fruit<br />

juice manufacture; confectionery; bricks; clothing;<br />

meat processing; packaging; jewellery.<br />

The strong retail sector was strengthened even<br />

more with the opening of the Mall of the North.<br />

This major project cost approximately R1.2-billion to<br />

complete. Covering more than 70 000 square metres,<br />

the mall offers a more convenient alternative<br />

to shoppers used to doing their monthly shopping<br />

in Johannesburg.<br />

Polokwane has good hotel and conferencing<br />

facilities and is well situated as a starting point for<br />

tourism trips into the province and beyond. Garden<br />

Court Polokwane is an example of a hotel that forms<br />

part of a national group, in this case, Tsogo Sun.<br />

Nearby Moria attracts up to a million people<br />

every year, when the Zion Christian Church<br />

celebrates Easter.<br />

Greater Sekhukhune District<br />

Government is the largest employer in this southern<br />

district, followed by agriculture and hunting. The<br />

vast majority of households are rural (94%), with a<br />

poverty rate of 69.9%.<br />

Groblersdal is the district capital. The region’s<br />

fertile lands produce maize, tobacco, peanuts, vegetables,<br />

sunflower seeds and cotton on a large scale.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

18


SPECIAL FEATURE<br />

Agriculture makes up 25% of the<br />

local economy, with the value of<br />

the region’s gross production estimated<br />

at R250-million. Burgersfort<br />

is an important town because of<br />

platinum mining.<br />

Mopani District<br />

Giyani is the administrative capital<br />

of the district and is key to the local<br />

economy. The public sector is<br />

one of the largest employers in the<br />

district. The key sectors are agriculture<br />

and mining. Mopani has<br />

an established food manufacturing<br />

industry in canned, preserved<br />

and dried-fruit production and vegetable juices.<br />

Phalaborwa is the gateway to the Kruger National<br />

Park. It has a good airport and is a tourism hub.<br />

Palaborwa Mining Company (Palamin) is the major<br />

economic driving force in the area. State-owned<br />

phosphate and phosphoric acid producer Foskor<br />

is another major employer. Sasol Nitro Phalaborwa<br />

produces phosphoric acid and deflourinated acid.<br />

The Marula Festival is held in Phalaborwa in February<br />

every year.<br />

A subtropical climate and fertile soils combine to<br />

make greater Tzaneen very productive in terms of fruit<br />

and vegetables. <strong>Limpopo</strong>’s second-most populous<br />

city has a population of 80 000. The Letaba Valley<br />

produces a large proportion of South Africa’s mangos,<br />

avocados and tomatoes.<br />

Forty sawmills operate in the area, drawing on the<br />

heavily forested hills around the city. One of the major<br />

road links between Gauteng and the Kruger National<br />

Park also passes through the area, providing excellent<br />

links for tourism and business.<br />

Vhembe District<br />

The Vhembe District borders Zimbabwe and<br />

Botswana. The district’s administrative capital is<br />

Thohoyandou. Vhembe’s vast bushveld supports<br />

commercial and game farming and the district has<br />

considerable cultural and historical assets. The major<br />

economic sector is agriculture, both in terms of<br />

commercial and subsistence farming. Game farming<br />

is a growing subsector, as is eco-tourism. De Beers’<br />

Venetia Mine, situated just west of Musina, is South<br />

Africa’s largest diamond producer.<br />

Situated in the north-east of the province, fairly<br />

close to the Punda Maria Gate of the Kruger National<br />

Park, Thohoyandou is the administrative centre of<br />

Thulamela Local Municipality, Vhembe District<br />

Municipality and the University of Venda.<br />

The Tshivhase tea estates are not far from the<br />

town and a new project is cultivating exotic trees<br />

and ornamental shrubs. The town is on the Ivory<br />

Route and hosts the Venda Cultural Museum. Other<br />

attractions include an ancient baobab tree, the Dzata<br />

Ruins, the Museum of the Drum, the mystical Lake<br />

Fundudzi and Nwanedi Provincial Park.<br />

Waterberg District<br />

The mining sector is the largest contributor to regional<br />

GDP, while agriculture is also significant. Several towns<br />

in the district are located in the mineral-rich Bushveld<br />

Igneous Complex.<br />

The district also features the riches of the Waterberg<br />

Coal Fields, iron ore (at Thabazimbi) and tin and platinum<br />

at Mookgophong. The town of Lephalale is at<br />

the heart of the region’s coal-mining and powergeneration<br />

sectors.<br />

The area around Mokopane is one of the richest<br />

agricultural zones in South Africa, producing wheat,<br />

tobacco, cotton, beef, maize and peanuts. The bubbling<br />

hot springs of Bela-Bela market it as a popular<br />

tourism destination, and the district offers many luxury<br />

golf estates.<br />

19 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


The <strong>Limpopo</strong> Development Plan<br />

The Provincial Government of <strong>Limpopo</strong>’s Development Plan aims to carry through<br />

the spirit of South Africa’s development plans on a provincial basis.<br />

In these difficult economic times, hope is what<br />

people cling to, and the South African government’s<br />

National Development Plan (NDP) has provided<br />

a source of great possibility and hope for<br />

South African businesses as well as its citizens. Each<br />

of South Africa’s provinces have since adopted and<br />

planned their own strategies, taking the NDP as their<br />

guide and tailoring it for their own specific needs.<br />

The <strong>Limpopo</strong> Development Plan (LDP) has been<br />

designed to address the economic poverty and infrastructural<br />

issues that are currently being faced in<br />

<strong>Limpopo</strong>. The province has endeavoured to ensure<br />

that the plan is a reflection of their shared vision and<br />

strategic imperatives towards poverty reduction,<br />

and the elimination of social inequality in addition<br />

to the creation of sustainable jobs in the province.<br />

The LDP cuts across three areas that need extensive<br />

improvement, notably socio-economic, infrastructural<br />

and institutional development. These<br />

areas are essential to <strong>Limpopo</strong>, being a mainly<br />

rural province.<br />

The economic strategy required entails concentrating<br />

on the mining, agricultural and tourism<br />

sectors. The industrialisation of <strong>Limpopo</strong> is going<br />

to be concentrated around (but not limited to)<br />

Polokwane, Lephalale, Tubatse, Tzaneen and the<br />

Makhado-Musina corridor, which have been identified<br />

as the areas of priority in terms of integrated<br />

human settlements and economic development<br />

The entire strategy outline is, therefore, designed<br />

on the floorplan of the 14 development<br />

outcomes contained in the National Medium-Term<br />

Strategic Framework for 2015-2019. Development<br />

is defined as broad-based improvements in the<br />

standard and quality of life for the people living<br />

throughout the province, to which all institutions<br />

(including government, business, labour and citizens)<br />

contribute. Increasing the annual improvements<br />

in job-creation production, income, access<br />

to good public services and environmental management<br />

are the instruments or means to reach<br />

the goals of this development plan.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

20


SPECIAL FEATURE<br />

This vision statement encapsulates the expectation<br />

that, by 2030, <strong>Limpopo</strong> will have a public<br />

service that meets the best standards of governance,<br />

citizens that are educated, skilled, healthy and<br />

self-reliant, and that there is a labour force that is<br />

fully productive and gainfully employed, with an<br />

infrastructure that is capable of promoting and sustaining<br />

an innovative local and regional economy<br />

for the benefit of all the province’s diversified communities<br />

in a responsible and sustainable manner.<br />

The LDP also acknowledges that a critical condition<br />

for job creation is improved levels of education<br />

and skills development, and human resource development<br />

has therefore been identified as one of the<br />

key priorities. The aim is to reduce the unemployment<br />

rate to 14% (down from 16.9% in <strong>2016</strong>). Education is<br />

seen as an opportunity for the future generations to<br />

enjoy access to economic mobility and success. The<br />

LDP aims to achieve this by improving the educational<br />

quality in order to be globally competitive and to provide<br />

high-quality early childhood education by 2030.<br />

During the 2015 State of the Province Address<br />

(SOPA), Premier Mathabatha announced that the<br />

LDP would underpin 10 High Level Development<br />

Targets to be attained by 2020. These targets are:<br />

• The achievement of an economic growth rate<br />

of 3% revised in the light of the current performance<br />

of the global economy<br />

• The creation of 429 000 jobs<br />

• Increased access to basic water from 83% in<br />

2014 to 90%<br />

• Increased access to electricity supply from 83%<br />

in 2014 to 90%<br />

• Increased access to sanitation from 43% in<br />

2014 to 50%<br />

• Increased Matric Pass Rate from 72% in 2014<br />

to at least 80%<br />

• Increased Geographic Gross Product contribution<br />

to the national GDP from 7.15% in 2014<br />

to 9%<br />

• Reduction of the unemployment rate from 16.9%<br />

in 2014 to 14%<br />

21 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


SPECIAL FEATURE<br />

• Increased average life-expectancy from 58.3<br />

in males in 2014 to 60, and 62.5 in females in<br />

2014 to 65<br />

• Reduction of inequality in terms of Gini coefficient<br />

from 0.61 in 2014 to 0.50<br />

The 10 targets of the LDP are what <strong>Limpopo</strong> will<br />

concentrate on in order to improve the state of the<br />

province. Each department in the province has been<br />

given tasks in order to fulfill the LDP’s objectives.<br />

Department of Education<br />

The slogan of the Department of Education in<br />

<strong>Limpopo</strong> is that “education is a precondition for<br />

development”. This slogan captures the spirit of<br />

the LDP and emphasises the context and role of<br />

education in the provincial strategy. With the largest<br />

budget share, the Department of Education<br />

is faced with some of the greatest challenges in<br />

the province. Significant financial backing is not<br />

enough without the greater commitment and<br />

change of the management approach from all<br />

members. Making creativity, innovation and choice<br />

their imperative, the aim is to be able to produce<br />

skills that are needed for industrial clusters and to<br />

serve as feeders for TVET colleges. The key targets<br />

for education are:<br />

• Expanding access to ECD programmes<br />

• Provision of access to training and education<br />

• Improvement of grade 12 results<br />

• Use an improved ANA for holding schools and<br />

districts accountable<br />

Department of Health<br />

The 2030 Vision of the LDP for the Millennium<br />

Development Goals (MDGs) is to create a health<br />

system that works for everyone, produces positive<br />

health outcomes, and is not out-of-reach. The<br />

outcomes expected are:<br />

• Average male and female life expectancy<br />

increased to 70 years<br />

• Tuberculosis prevention and cure rates progressively<br />

improved<br />

• Maternal and child-mortality rates reduced<br />

• Prevalence of chronic non-communicable<br />

diseases reduced by 28%<br />

• Health systems reforms completed<br />

• Primary health care teams deployed to provide<br />

care to families and communities<br />

• Universal health coverage achieved<br />

• Posts filled with skilled, committed and<br />

competent personnel<br />

The LDP also identifies the social determinants of<br />

health of individuals or communities. This covers<br />

factors such as where people live, the state of the<br />

environment, genetics, income, education levels and<br />

social support networks.<br />

Department of Social Development<br />

The LDP targets for social services are that all potential<br />

beneficiaries who qualify for social grants should<br />

receive them, that all legitimate non-profit organisations<br />

for social development should receive government<br />

support and that social development committees<br />

should be established in all wards throughout<br />

<strong>Limpopo</strong>. Indicators for social grants are the number<br />

of potential beneficiaries compared to the number of<br />

actual beneficiaries, and the source of this information<br />

is SASSA. The <strong>Limpopo</strong> Department of Social<br />

Development will create a database on non-profit<br />

organisations for social development and the support<br />

that they are given. The number of functional<br />

social development ward committees compared to<br />

the number of wards in each municipality will indicate<br />

the extent to which the third target is achieved.<br />

Department of Agriculture<br />

For the next five years the Department has called<br />

for a vibrant, equitable, sustainable rural community<br />

contributing towards food security for all. They<br />

intend to increase the percentage of productive<br />

land owned by previously disadvantaged individuals<br />

from 11.5% in 2013 to 20% by 2019. This would<br />

also help ensure that, by 2019, 7.2-million hectares<br />

of land will have been transferred to previously<br />

disadvantaged individuals and is also being used<br />

productively. Other goals include reducing the<br />

percentage of households vulnerable to hunger<br />

(from 11.5% in 2011 to less than 9.5% by 2019) and<br />

leading to the reduction of rural unemployment<br />

in <strong>Limpopo</strong> to less than 40% by 2019.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

22


Department of Public Works, Roads<br />

and Infrastructure<br />

The Department’s primary focus is to facilitate the<br />

provision of economic infrastructure in support of<br />

the selected development cluster value chains, as<br />

well as the community infrastructure required to<br />

provide household services. Several support agencies<br />

(ie municipalities and private businesses) need<br />

to be engaged in this process. Other major responsibilities<br />

include the building of internal professional<br />

capacity and the maintenance of existing infrastructure<br />

(and assets).<br />

Department of Transport<br />

The Department is planning to increase the subsidy<br />

rates of those operators who are still operating on<br />

very low rates, introducing additional trips on current<br />

subsidised routes where there is an increased<br />

demand for bus services, and to introduce an electronic<br />

bus monitoring system over the five-year period.<br />

With regard to transport regulation, the target<br />

is to decrease fatal road crashes by 2% per year over<br />

the MTSF period as well as to reduce traffic offences<br />

on public roads. The number and professional conduct<br />

of traffic officers will have to be improved for<br />

this purpose. An Accident Statistical Analysis Module<br />

will also be implemented.<br />

Department of Sport, Arts<br />

and Culture<br />

The Department wants to ensure that, through the<br />

LDP, <strong>Limpopo</strong> is able to have a diverse, socially cohesive<br />

society that enjoys a common national identity.<br />

They have already starting holding inclusive social<br />

cohesion summits in <strong>Limpopo</strong>, highlighting key issues.<br />

The province aims to raise the competitiveness<br />

of all contestants from <strong>Limpopo</strong> in national and international<br />

sport, arts and cultural events. They also want<br />

to create sports, arts and culture sub-communities in<br />

every ward of every municipality in <strong>Limpopo</strong>.<br />

SPECIAL FEATURE<br />

Department of Safety and Security<br />

The aim is to establish and maintain effective<br />

Community Police Forums in every municipality in<br />

<strong>Limpopo</strong>. This is intended to help with the reduction<br />

of crime incidence across the spectrum of crime<br />

categories, as reported in the crime statistics of the<br />

National SAPS Department. The LDP will also put in<br />

place information systems to report on the progress<br />

with regard to the local community police forums.<br />

Provincial Treasury<br />

The Provincial Treasury is responsible for general risk<br />

mitigation relating to the LDP, primarily through the<br />

Provincial Risk Office, but also in collaboration with the<br />

risk managers of other departments. The compilation<br />

and management of a Provincial Risk Profile is urgently<br />

needed. Treasury is also responsible for the Financial Risk<br />

Mitigation Strategy, including the provincial value-formoney<br />

expenditure review. This review should be aimed<br />

at maximising the development impact of the provincial<br />

budget in terms of quality-of-life improvements and job<br />

creation for all citizens.<br />

Through the <strong>Limpopo</strong> Development Plan,<br />

<strong>Limpopo</strong> intends to revive itself from just being a<br />

rural province, and it has made sure that everything<br />

it does according to this plan benefits the provincial<br />

people and the nation as a whole.<br />

CONTACT INFO<br />

Contact person: Phuti Seloba<br />

Physical address: 40 Hans Van Rensburg<br />

Street, Polokwane 0699<br />

Tel: +27 15 287 6000<br />

Email: Selobap@premier.limpopo.gov.za<br />

Website: www.limpopo.gov.za<br />

23 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


SPECIAL FEATURE<br />

Priority projects in <strong>Limpopo</strong><br />

A range of high-impact projects in the province have the potential to substantially improve<br />

the <strong>Limpopo</strong> economy.<br />

A<br />

number of important projects are under<br />

way in <strong>Limpopo</strong> or have recently been approved.<br />

Together, they have the potential to<br />

significantly increase the economic output<br />

of the province and to create a large number of jobs.<br />

Projects range from a huge power-generation<br />

plant in the west to a mega-dam in the east. In<br />

the north, a Special Economic Zone (SEZ) aims to<br />

kick-start a range of economic investments and<br />

throughout the province there are programmes<br />

aimed at improving services to communities and<br />

making co-operatives economically sustainable.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

24


SPECIAL FEATURE<br />

Special Economic Zones<br />

In July <strong>2016</strong> the national cabinet approved the<br />

Musina-Makhado Special Economic Zone (SEZ).<br />

Located in the far north of <strong>Limpopo</strong> in the Vhembe<br />

region, Musina is strategically located near the border<br />

of Zimbabwe and on the Great North Road,<br />

which links South Africa to the broader southern<br />

African region.<br />

Special Economic Zones are created in terms of<br />

the Special Economic Zones Act of 2014 (Act 16<br />

of 2014). The act defines an SEZ as “geographically<br />

designated areas of the country that are set aside for<br />

specifically targeted economic activities and supported<br />

through special arrangements and systems<br />

that are often different from those that apply to the<br />

rest of the country”. Lower corporate tax rates and<br />

duty-free imports are among the advantages that<br />

accrue to investors.<br />

Infrastructure at an SEZ supports the specific<br />

industry and attracts foreign investors with a strong<br />

focus on beneficiation of local produce or materials.<br />

Skills transfer is another stated aim behind the SEZ<br />

programme.<br />

The location of the Musina SEZ, with links to<br />

Zimbabwe, Botswana and Mozambique, promotes<br />

the Trans-<strong>Limpopo</strong> Spatial Development Initiative.<br />

Logistics will be one of the key focus areas of the SEZ.<br />

Other sectors that will be concentrated on include<br />

agri-processing, energy and mineral beneficiation.<br />

De Beers’ giant Venetia diamond mine is nearby.<br />

The company’s most recent life-of-mine expansion<br />

project, worth about R30-billion, will result in the<br />

mine producing until 2046.<br />

The national Department of Trade and Industry<br />

(dti) is the lead agent in SEZ creation, which in turn<br />

feeds into the national Industrial Policy Action Plan<br />

(IPAP). SEZs are designed to attract investment,<br />

create jobs and boost exports.<br />

Soon after the announcement of the designation<br />

of the SEZ, the dti said that a consortium of Chinese<br />

investors, Sino, has agreed to put R40-billion into<br />

the Musina SEZ where they will operate the mineral<br />

beneficiation operations.<br />

The first phase of this is to build a power plant.<br />

The dti estimates that the completed SEZ could<br />

create more than 20 000 jobs.<br />

A second application for an SEZ at Tubatse is<br />

pending. Tubatse is in the Sekhukhune District<br />

Municipality and hosts a number of mining operations.<br />

The SEZ in Tubatse will focus on the beneficiation<br />

of platinum group metals and mining-related<br />

manufacturing. The province of Bashkortostan in<br />

Russia has also expressed an interest in the SEZs<br />

of <strong>Limpopo</strong>. More details on the SEZs follows on<br />

pages 26-31.<br />

Infrastructure<br />

In August <strong>2016</strong>, Unit 6 of the Medupi power station<br />

came on stream. The Medupi power station project<br />

is one of the biggest engineering projects under-<br />

25 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


SPECIAL FEATURE<br />

taken in South Africa. When complete, it will provide<br />

an additional 4 764 megawatts, which will massively<br />

enhance the country’s generation capacity. Medupi<br />

is located in Lephalale in the far west of <strong>Limpopo</strong>,<br />

and next to an existing power station where coal is<br />

abundant. Unit 5 is expected to come on stream in<br />

the first half of 20<strong>17</strong>.<br />

The De Hoop Dam across the Steelpoort River<br />

in the east of <strong>Limpopo</strong> has started supplying water<br />

to rural communities who previously had to walk<br />

to rivers to fetch water. These communities in the<br />

Waterberg, Capricorn and Sekhukhune districts are<br />

beneficiaries of a vast project that will also deliver<br />

water to towns and mining operations in the area.<br />

More than a million people will get water from the<br />

dam, which cost approximately R3.4-billion to build<br />

and has a capacity of 347 600 000m³. In terms of the<br />

broader scheme under which the De Hoop Dam<br />

falls, some 23 platinum mines stand to benefit.<br />

Water and sanitation<br />

In order to come up with a coordinated strategy in a<br />

time of drought, the Provincial Government of <strong>Limpopo</strong><br />

convened a Provincial Water and Sanitation Summit in<br />

2015. A technical team from the national Department of<br />

Public Works is assisting the provincial entity in providing<br />

clean water in the Sekhukhune District Municipality,<br />

Polokwane City and Mogalakwena Local Municipality.<br />

These are seen as priority projects in response to the<br />

drought and to ensure that the economies of these<br />

municipalities can thrive.<br />

A vital project for schools is the Accelerated School<br />

Infrastructure Programme (ASIDI),<br />

which is run by the Mvula Trust<br />

on behalf of the national departments<br />

of Basic Education and Water<br />

and Sanitation and the <strong>Limpopo</strong><br />

Department of Education.<br />

The Mvula Trust arose out of<br />

an initiative of the Independent<br />

Development Trust and the Kagiso<br />

Trust, and is the NGO responsible<br />

for rolling out various water and<br />

sanitation programmes for national<br />

government.<br />

The programme reached a total of 115 schools<br />

in all five of the province’s district municipalities:<br />

Capricorn District Municipality: (20 schools); Mopani<br />

(23 schools); Sekhukhune (46 schools); Vhembe (23<br />

schools); Waterberg (three schools). The governing<br />

bodies of all the schools were consulted, <strong>17</strong> contractors<br />

were hired to do the work, and various professionals<br />

such as a geohydrologist and occupational<br />

health and safety consultants were employed to roll<br />

out the project.<br />

New water supplies were created for 64 schools<br />

and 37 got new sanitation facilities. A total of 661<br />

temporary jobs were created in the process of drilling<br />

boreholes, excavating, laying pipes and cables,<br />

installing tanks and building new structures. A<br />

health and hygiene educational component was<br />

also included in the programme.<br />

Community and co-operatives<br />

Makotse is a small village in the Capricorn District<br />

about 40km from the provincial capital of Polokwane.<br />

Many people in the areas are unemployed but the<br />

Makotse Women’s Club is making a difference<br />

through a range of projects that are not only serving<br />

the community but providing income. The club<br />

has won several awards, including one awarded<br />

by the Independent Development Trust and the<br />

Department of Health and Social Development for<br />

exemplary management (of the Makotse Bakery). An<br />

off-shoot of the bakery business provides catering<br />

services from a menu that includes mealie-meal<br />

(bogobe), samp, chicken (kgogo) and beetroot.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

26


SPECIAL FEATURE<br />

The Independent Development Trust delivers social<br />

infrastructure and manages social development programmes<br />

for the state.<br />

The Bakone Gardening Project (of the Makotse<br />

Women’s Club) provides vegetables such as onions,<br />

spinach and beetroot to local schools, a Drop-In<br />

Centre and a Day-Care Centre. Hydroponics have<br />

been a feature of the garden since the Department<br />

of Agriculture, the US Embassy and the Peace Corps<br />

combined to help install a system designed to<br />

improve efficiency.<br />

The National Youth Development Agency (NYDA)<br />

has an agreement with the <strong>Limpopo</strong> Department of<br />

Agriculture to promote and create co-operatives in<br />

the province. A number of these co-operatives have<br />

been launched since the partnership was founded.<br />

In Thohoyandou the Marula Co-operative uses<br />

the extract from the Marula plant to make beauty<br />

products such as lotions and soaps and cooking<br />

oil. This co-operative is a collaboration between<br />

members of six smaller groups.<br />

A similar alliance led to the establishment of<br />

the Nwanedi Co-operative in the far north of the<br />

province, east of Musina. The group received close<br />

to R500 000 from the NYDA to help them rent a<br />

tractor, to meet the costs of running the farm, but<br />

mostly to assist with transport of the butternuts<br />

they were producing to market. For small farmers,<br />

access to market is a huge challenge and the support<br />

of the NYDA will not be the end of the process:<br />

the Department of Agriculture will help them pool<br />

their resources at market. The department will also<br />

assist with further training.<br />

27 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


FOCUS<br />

<strong>Limpopo</strong>’s Special<br />

Economic Zones<br />

Two Special Economic Zones have been proposed for <strong>Limpopo</strong> Province.<br />

The <strong>Limpopo</strong> Department of Economic Development, Environment<br />

& Tourism (LEDET) and its agency LEDA are facilitating the establishment<br />

of the two Special Economic Zones (SEZs), one in Steelpoort<br />

(the Tubatse Platinum SEZ) and the other in Musina (the Musina SEZ),<br />

following the acceptance of proposals from <strong>Limpopo</strong> by the national<br />

Department of Trade and Industry (the dti).<br />

A Special Economic Zone (SEZ) is a geographic area of a country<br />

or region designated for targeted (strategic) economic activities,<br />

which are supported through special measures. It is one of the<br />

key instruments for industrialisation as articulated in the Industrial<br />

Policy Action Plan (IPAP), National Growth Path (NGP) and National<br />

Development Plan (NDP).<br />

Overview and purpose of the SEZs<br />

The SEZs have been established to:<br />

• Increase foreign and domestic investment in the two districts<br />

(Greater Sekhukhune and Vhembe districts)<br />

• Increase exports of value-added manufactured goods from the<br />

region<br />

• Build the required industrial<br />

infrastructure in both Greater<br />

Tubatse Municipality and<br />

Musina Municipality<br />

• Ensure employment creation,<br />

technology transfer and skills<br />

development<br />

• Ensure the spread of industrial<br />

development regionally and<br />

the promotion of industrial<br />

agglomeration in the region<br />

• Ensure the creation of economic<br />

linkages through supplier<br />

development<br />

• Promote coordinated<br />

planning among key<br />

government agencies<br />

SEZ incentives<br />

• Section 12R qualifying companies<br />

will be subjected to a<br />

reduced CIT tax rate of 15%<br />

• Taxpayers achieving SEZ status<br />

will retain the status for 10<br />

years<br />

• Section 12S qualifying companies<br />

within the SEZs will get<br />

extra accelerated allowances<br />

on buildings and improvements<br />

to buildings<br />

• Companies employing salaried<br />

employees earning (below<br />

R6 000 per month) will be<br />

given a wage incentives<br />

• Special customs and VAT<br />

incentives<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

28


FOCUS<br />

Other allowances<br />

• Industrial policy investment<br />

projects<br />

• Depreciation allowance<br />

• Capital allowance on<br />

machinery and plant (manufacturing<br />

allowance)<br />

• Learnership allowance<br />

• Research and development<br />

allowances: 150%<br />

• Small business turnover tax –<br />

for businesses with turnover<br />

less than R1-million<br />

• Small business corporation less<br />

than R20-million turnover<br />

• Accelerated depreciation<br />

allowance – all year one<br />

• Improved tax rates – on graduated<br />

basis<br />

• Energy-saving incentives<br />

• Municipal rates rebates<br />

Legislative framework<br />

for SEZs<br />

The SEZs are established in terms<br />

of the SEZ Act of 2014. The Act<br />

provides for:<br />

• The Minister to determine<br />

policy for the designation,<br />

promotion, development,<br />

operation and management<br />

of Special Economic Zones<br />

• The SEZ Act provides for the establishment of an Advisory Board to<br />

advise the Minister of Trade and Industry on the following:<br />

• Designation of SEZs<br />

• Financing and support measures<br />

• SEZ Fund – applications and approvals<br />

• Support measures<br />

• Implementation protocols<br />

Roles and responsibilities<br />

of the SEZs<br />

The implementation of SEZs requires cordial relations between national<br />

departments, provincial and local government based on mutual<br />

respect between spheres of government and state agencies.<br />

The national departments that have a role in the SEZs are:<br />

• the dti: responsible for policy on the establishment and operation<br />

of SEZs<br />

• National Treasury: approval of funding and special waivers for foreign<br />

investors (capital movement and investments)<br />

• Mineral Resources: custodian of Mineral Beneficiation policy<br />

• Energy: implementation of different energy mix and technologies<br />

• Home Affairs: approval of work permits for foreign workers in SA<br />

• Science and Technology: support for technology transfer<br />

• Higher Education: custodian of skills development policy<br />

In the province, the key departments are: Treasury and Enterprise<br />

Development, Cooperative Governance, Roads and Transport<br />

National agencies include: SARS, Transnet, Eskom and the Industrial<br />

Development Corporation (IDC)<br />

Municipalities include: Greater Sekhukhune District Municipality and<br />

Greater Tubatse Municipality<br />

29 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Musina Special<br />

Economic Zone<br />

A multi-site SEZ has been designated for Vhembe District.<br />

Project location<br />

The Musina SEZ will be located in multi-sites found<br />

in two municipalities, namely Musina and Makhado<br />

in the Vhembe District of <strong>Limpopo</strong> Province.<br />

N<br />

Pont Drift Musina<br />

Beit Bridge<br />

Madimbo<br />

Musina Local Municipality is located in the northern<br />

part of the Vhembe District Municipality. The<br />

municipality is strategically placed between South<br />

Africa and Zimbabwe and therefore also linked to<br />

other SADC countries, such as Zambia, Mozambique,<br />

Tanzania, Malawi and Kenya.<br />

Musina Municipality is connected to the Kruger<br />

National Park in the east, Gauteng to the south and<br />

Botswana to the west. It is linked to the major centres<br />

in South Africa via the N1 route to Pretoria and<br />

Johannesburg.<br />

Cities/towns<br />

Roads<br />

Provincial Boundaries<br />

Local Municipality Boundary<br />

District Municipality Boundary<br />

Musina SEZ<br />

The Zimbabwe link is one of the busiest roads in<br />

Africa. This position and economic importance provides<br />

various opportunities to be explored by the SEZ.<br />

Location advantages<br />

• Close proximity to mineral resources required<br />

for the production of steel and petrochemicals<br />

• Proximity to the border between SA and<br />

Zimbabwe that results in good access to the<br />

SADC market and cross-border trade activity<br />

• Ideal location on the main north-south N1 corridor,<br />

which enables strong logistics drivers in support<br />

of the envisaged logistics cluster<br />

• High possibility for intermodal facilities involving<br />

road and rail, including transfer of cargo from<br />

road to rail<br />

• Agriculture support industries, including fertiliser<br />

plants based on the proximity to Foskor in<br />

Phalaborwa<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

30


PROFILE<br />

• International logistics companies already use the<br />

Cape to Cairo route<br />

Musina SEZ opportunities<br />

The initial set-up of the SEZ involves the establishment<br />

of the metallurgical cluster zone, a dry<br />

port zone to handle various logistics activities<br />

and linking up with sea ports in the country and<br />

neighbouring countries, with a potential of adding<br />

a petrochemical cluster zone in the future.<br />

The following opportunities have<br />

been identified to attract<br />

investments:<br />

Light and medium industries<br />

• Vehicle export preparation and distribution centre<br />

• Import and export goods consolidation centre<br />

• Warehouses including cold-storage facilities<br />

• lntermodal facilities including container-handling<br />

facility<br />

• Medium- and heavy-duty vehicle service centre<br />

• Vehicle SKD assembly workshop<br />

• Electronic, chemical and other manufacturing<br />

and assembly opportunities<br />

Heavy industries<br />

• Coking plant<br />

• Thermal power plant<br />

• Ferrochrome plant<br />

• Ferrosilicon plant<br />

• Pig-iron metallurgy plant<br />

• Steel plant<br />

• Stainless-steel plant<br />

• Lime plant<br />

• Envisaged Musina Container Terminal (dry port<br />

operation)<br />

Petrochemical zone<br />

• Coke coal plant and power generation<br />

• Coal-to-liquids plant<br />

• Methanol plant<br />

• Synthetic bitumen plant<br />

• Small solar plant<br />

• Plasma waste gasification plant<br />

• Water treatment plant<br />

CONTACT INFO<br />

<strong>Limpopo</strong> Economic Development Agency<br />

(LEDA)<br />

Address: 29 Market Street, Polokwane,<br />

<strong>Limpopo</strong><br />

Contact: Richard Zitha (Project Executive)<br />

Tel: +27 15 295 5120<br />

Cell: +27 71 391 8188<br />

Email: richard.zitha@lieda.co.za<br />

Website: www.lieda.co.za<br />

31 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Tubatse Platinum Special<br />

Economic Zone<br />

A niche SEZ has been planned for a site close to Steelpoort.<br />

Project location<br />

The Tubatse Platinum SEZ will be located on the<br />

farm Spitskop 333KT, measuring 2 677ha, in close<br />

proximity to the town of Steelpoort and 25km out<br />

of Burgersfort in the Greater Tubatse Municipality<br />

(Greater Sekhukhune District). This will be the main<br />

hub for the SEZ.<br />

The first phase would be developed on a site measuring<br />

280ha and would consist of the following:<br />

• Mining input suppliers’ park<br />

• Light manufacturing<br />

• Heavy manufacturing<br />

• Logistics<br />

• Solar energy cluster<br />

• PGM downstream beneficiation cluster<br />

Tubatse Platinum SEZ opportunities<br />

The Tubatse Platinum SEZ will focus largely on PGMs,<br />

chrome, magnetite, vanadium beneficiation and the<br />

development of mining inputs supply.<br />

The following has been identified as presenting viable<br />

opportunities that need to be pursued:<br />

• Mining input supply<br />

• Capital goods (yellow metal assembly and maintenance<br />

and processing plants)<br />

• Disposables<br />

The following value chain is envisaged from<br />

beneficiation:<br />

• Catalytic converters (main opportunity for the<br />

Tubatse Platinum SEZ)<br />

• Hydrogen fuel cells<br />

N<br />

Moroke<br />

Madiseng<br />

Leboeng<br />

Tubatse<br />

Burgersfort<br />

Ohringstad<br />

Steelpoort<br />

Greater Tubatse<br />

• Chrome beneficiation to ferrochrome<br />

• Chemotherapeutic agents<br />

• Green energy (solar energy cluster)<br />

• Turbine blades<br />

• Magnetite to pig iron to steel<br />

• Magnetite to vanadium pentoxide<br />

• Waste to titanium<br />

• Logistics<br />

Investment opportunities<br />

and clusters<br />

Cities/towns<br />

Roads<br />

Provincial Boundaries<br />

Local Municipality Boundary<br />

District Municipality Boundary<br />

PGM downstream-beneficiation value chain cluster:<br />

• Platinum jewellery manufacturing<br />

• Catalytic converters<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

32


PROFILE<br />

• Hydrogen fuel cell<br />

manufacturing<br />

Mining inputs supply park:<br />

• Heavy equipment assembly<br />

plant<br />

Green energy:<br />

• PV modules assembly plant<br />

• Solar energy plant<br />

CONTACT INFO<br />

<strong>Limpopo</strong> Economic<br />

Development Agency<br />

(LEDA)<br />

Address: 9 Market Street,<br />

Polokwane, <strong>Limpopo</strong><br />

Contact: Bunjiwe Gwebu<br />

(Project Executive)<br />

Tel: +27 15 295 5120<br />

Cell: +27 76 521 5077<br />

Email: bunjiwe.gwebu@<br />

lieda.co.za<br />

Website: www.lieda.co.za<br />

33 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Corridor Mining Resources<br />

The company focuses on the economic development of <strong>Limpopo</strong><br />

Province through direct and indirect investment in mining.<br />

Corridor Mining Resources (Soc) Ltd (CMR) is a<br />

wholly owned subsidiary of the <strong>Limpopo</strong> Economic<br />

Development Agency (LEDA). Its primary responsibility<br />

is the execution of the resources development<br />

strategy of LEDA, through investment in mining<br />

opportunities and the empowerment of communities.<br />

CMR has various projects in different stages of<br />

development, some at an initial stage and some full<br />

mining operations.<br />

Purpose and mandate<br />

The purpose of CMR is to promote economic development<br />

in the province, directly or indirectly<br />

through mining, by:<br />

• Optimising the development of mineral resources<br />

• Driving economic growth<br />

• Facilitating opportunities for job creation<br />

• Promoting sustainable empowerment in mining<br />

<strong>Business</strong> model<br />

• All projects are executed through a “Special<br />

Purpose Vehicle (SPV)” company.<br />

• The SPV is formed by bringing together CMR<br />

with host communities and strategic partners<br />

including black economic empowerment (BEE)<br />

partners.<br />

• Exploration and feasibility studies are mainly<br />

outsourced.<br />

• Mining operations are managed by a third<br />

party (eg a mining contractor) under a Mining<br />

Management Agreement.<br />

• Cashflow is realised through annual declaration<br />

of dividends.<br />

• Host communities benefit from the mines<br />

through shareholding, business opportunities<br />

and jobs in the mining operations.<br />

Portfolio<br />

CMR boasts a diverse commodity portfolio that includes<br />

but is not limited to platinum group metals,<br />

chrome and gold. The table opposite indicates the<br />

mining investments and minerals in CMR’s portfolio<br />

and their location.<br />

CONTACT INFO<br />

Head ofice: 29 Market Street, Polokwane,<br />

<strong>Limpopo</strong>, South Africa<br />

Tel: +27 15 295 5120<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

34


MINING<br />

INVESTMENTS<br />

Sefateng Chrome Mine<br />

Fumani Greenstone<br />

Tshepong Chrome Mine<br />

Khumong Chrome Mine<br />

Autumn Star Trading<br />

Mokopane Kodumela<br />

Rock Island<br />

ASA Metals*<br />

VanMag<br />

MINERAL<br />

Chrome<br />

Gold<br />

Chrome<br />

Chrome<br />

PGMs<br />

PGMs<br />

Gold<br />

Ferrochrome<br />

Vanadium and<br />

Magnetite<br />

LOCATION<br />

PROFILE<br />

85km SE of Polokwane on the R37 road (next to<br />

Jibeng, Ga-Phasha and Ga-Mampa Villages). Farms:<br />

Zwartkoppies 413KS and Waterkop 113KT<br />

115km east of Makhado and 2km west of Kruger National<br />

Park (next to Mtititi Village). Farms: Alten 221 LT and<br />

Plange 222 LT<br />

135km SE of Polokwane and 30km west of Burgersfort<br />

via R37 road (next to Ga-Selala and Ga-Maroga Villages).<br />

Farm: Twyfelaar 119 KT<br />

125km east of Polokwane on the R37 road, 19km NW of<br />

Steelpoort and 24km from Burgersfort (next to Modikwa<br />

Platinum Mine). Farm: Portion 5 of Maandagshoek<br />

125km east of Polokwane (next to ASA Metals). Farms:<br />

Mineral Areas 3 and 4 of Maandagshoek 254KT and portion<br />

of portion 1 of Mooihoek 255KT<br />

30km north of Mokopane in the Mogalakwena Magisterial<br />

District (next to Mapela and Backenberg Villages).<br />

Farms: Inhambane 802 LR, Molendraai 811 LR,<br />

Commandandodrift 228 KR and Gezond 235 KR<br />

Around Giyani (next to Hlaneki, Mabunda and Homu<br />

Villages). Mineral areas: Klein Letaba - 15km northwest<br />

of Giyani, Horseshoe – west of Giyani and south of Klein<br />

Letaba River, Birthday – 5km east of Giyani and north<br />

of the Klein Letaba River and Louis Moore – 8km north<br />

of Giyani<br />

125km east of Polokwane (next to Ga-Maroga Village).<br />

Farm: Maandagshoek 254KT farm<br />

30km north of Mokopane in the Mogalakwena<br />

Magisterial District. Farms: Inhambane 802 LR, Portion<br />

2 of the farm Mozambique 807 LR, Molendraai 811 LR,<br />

Commandandodrift 228 KR and Gezond 235 KR<br />

Attaclay*<br />

Bentonite and<br />

Attapulgate Farm Maandagshoek (next to Maandagshoek Villages).<br />

(Catlitter)<br />

Mahube Tameng* PGMs<br />

In the Capricorn District between 60km and 70km ESE<br />

of Mokopane. Farm: M’Phatlele 457KS<br />

Inca Mine<br />

Limestone<br />

In Mokopane Municipality (next to Zebediela). Farms<br />

Brakfontein (Portion 7 and 8 of farm No 152) and Malgas<br />

(Portion 2 of farm No 154)<br />

mining investments and minerals in CMR’s portfolio and their location.<br />

* THE SHARES ARE HELD BY LEDA AND CMR MANAGES THE OPERATIONAL ASPECTS OF THE INVESTMENTS<br />

35 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Risima Housing Finance<br />

Corporation<br />

The corporation exists to improve access to housing for the citizens of <strong>Limpopo</strong> Province.<br />

The Risima Housing Finance Corporation (Pty) Ltd is<br />

a subsidiary company of LEDA, which is charged with<br />

the responsibility of providing housing finance and<br />

related services that enable the people of <strong>Limpopo</strong><br />

to acquire decent homes.<br />

The organisation was established in 2000. Its core<br />

focus is providing access to home loan finance and<br />

property development finance for the residents of<br />

the province. Its current strategic plan includes an<br />

intention to investigate possible partnerships in the<br />

development of property and rental stock in the<br />

proposed Special Economic Zones in the Greater<br />

Tubatse and the Musina local municipalities.<br />

Product portfolio (finance categories):<br />

• Residential building construction – allows<br />

clients to build a house of their choice<br />

• Purchasing of existing residential houses –<br />

clients buy existing houses, either from owners,<br />

developers or through estate agencies<br />

• Purchasing of sites – enables clients to purchase<br />

vacant land with a view to build in the near future<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

36


PROFILE<br />

and Title Deed, to purchase or build residential<br />

properties.<br />

Financial performance<br />

The most recent financials for Risima indicate<br />

that:<br />

• In the last financial year, the company recorded<br />

a total income of R37-million with a profit of<br />

R22.5-million against the targeted budget of<br />

R12.3-million.<br />

• The total loan book grew from R298.2-million to<br />

million loan impairment excluded. Despite the<br />

funding constraints, there was a positive variance<br />

of R26.6-million.<br />

• Total assets recorded for the year are currently<br />

R336.7-million.<br />

• Extensions and renovations – clients are assisted<br />

with financing for home improvements<br />

• Switch bonds – entails taking over a bond from<br />

another financial institution<br />

• Installation of solar-water-heating systems –<br />

assists existing clients who want to switch to<br />

energy efficient systems<br />

• Additional loans – clients who have equity on<br />

their properties can apply for additional loans<br />

• Access bond – available to clients who pay more<br />

than the required instalment on their home loans<br />

Official classification<br />

The company is classified under schedule 3D of<br />

the Public Finance Management Act as a provincial<br />

government business enterprise that deals with<br />

home-loan finance to the end-users who are permanently<br />

employed citizens of the Republic of<br />

South Africa, resident in <strong>Limpopo</strong>’s rural and urban<br />

areas and where property ownership is evidenced<br />

by the Permission to Occupy or Deed of Grant<br />

Risima stakeholder engagement<br />

The Department of Public Service and Administration<br />

established the Government Employees Housing<br />

Scheme (GEHS) to assist government employees<br />

with access to home-loan finance and Risima was<br />

selected as one of the implementing agents of the<br />

scheme.<br />

Risima is also appointed by COGHSTA to implement<br />

and administer the Financial Linked Individual<br />

Subsidy Programme (FLISP) in the province.<br />

CONTACT INFO<br />

Lebowakgomo (head office)<br />

Tel: +27 15 633 4732 or +27 15 633 4700<br />

Polokwane (regional office)<br />

Tel: +27 15 295 5120<br />

Ritavi (regional office)<br />

Tel: +27 15 303 <strong>17</strong>31<br />

Thohoyandou (regional office)<br />

Tel: +27 15 962 4900<br />

37 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Great North Transport<br />

Operating in all of <strong>Limpopo</strong>’s municipal districts, bus company<br />

Great North Transport provides public passenger transport services.<br />

About Great North Transport<br />

Great North Transport (GNT) is a premier bus passenger<br />

transport company in <strong>Limpopo</strong> that provides<br />

public passenger transport services within <strong>Limpopo</strong><br />

and parts of Mpumalanga. It focuses on scheduled<br />

commuter transport, private hiring, scholar and employee<br />

transport, as well as inter-town and crossborder<br />

services.<br />

The company has a fleet of 540 buses operating<br />

on 280 routes, with 10 cross-border permits. GNT<br />

employs 1241 staff members. It has 11 depots<br />

(Seshego, Mokopane, Motetema, Marble Hall,<br />

Burgersfort, Tzaneen, Makhado, Giyani, Phalaborwa,<br />

Hoedspruit and Bushbuckridge) in six district municipalities:<br />

Vhembe, Mopani, Sekhukhune, Waterberg,<br />

Capricorn and Ehlanzeni (Mpumalanga Province).<br />

A wholly-owned subsidiary of LEDA (<strong>Limpopo</strong><br />

Economic Development Agency), GNT has been<br />

in existence for more than 43 years and its core<br />

mandate is to provide reliable, safe, convenient and<br />

comfortable public transport passenger services<br />

to the public. GNT was one of the first companies<br />

to successfully operate negotiated contracts in<br />

South Africa.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

38


PROFILE<br />

Operations<br />

GNT operates 228 buses under<br />

negotiated contracts and<br />

238 buses on interim contract<br />

arrangements with the provincial<br />

departments of Roads<br />

and Transport of <strong>Limpopo</strong> and<br />

Mpumalanga provinces. There<br />

are also 67 buses that operate<br />

without any contract arrangements,<br />

from the provincial Roads<br />

and Transport Department<br />

(Bapedi and Phalaborwa<br />

depots).<br />

<strong>Business</strong> model<br />

Great North Transport (Soc) Ltd<br />

is a state-owned company, wholly owned by the<br />

<strong>Limpopo</strong> Economic Development Agency (LEDA)<br />

and established in terms of schedule 3D of the<br />

Public Finance Management Act 1 of 1999 (PFMA)<br />

as amended.<br />

In terms of this listing, Great North Transport (GNT)<br />

is a profit-driven subsidiary of LEDA. It operates<br />

according to business principles and practices.<br />

GNT sources its business partly from government,<br />

through a competitive open-market-tendering<br />

system, and from the private sector.<br />

The (Soc) Ltd listing of GNT warrants that any provision<br />

of the Companies Act that applies to a private<br />

company also applies to state-owned companies,<br />

including those provisions defining fiduciary and<br />

due care duties and responsibilities of directors of<br />

a company.<br />

To this end, GNT operates under the supervision<br />

of an independent Board of Directors whose nonexecutive<br />

members are appointed by the shareholder<br />

(LEDA). GNT strives at all times to comply<br />

with the principles contained in the King Code on<br />

Corporate Governance in South Africa (2009), the<br />

King III Report.<br />

Secrets to success<br />

Key attributes leading to Great North Transport’s<br />

success include:<br />

• Customer loyalty<br />

• Reliable service<br />

• A dependable and modernised fleet<br />

• Staff commitment<br />

• Effective maintenance<br />

• Sound financial partnerships<br />

We believe that with the support of the Board and<br />

committed staff, and the continued modernisation<br />

of the fleet and depots, performance will improve<br />

and lead to continued sustainability of the<br />

company.<br />

CONTACT INFO<br />

Physical address: Bonitas Building, 22 Hans<br />

van Rensburg Street, Polokwane 0700<br />

Tel: +27 15 291 2641<br />

Fax: +27 15 291 2648<br />

Email: marketing@gntpassenger.co.za<br />

Website: www.gntpassenger.co.za<br />

39 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


FOCUS<br />

A full range of<br />

business solutions<br />

Relevant financial and advisory services are offered to<br />

clients throughout <strong>Limpopo</strong>.<br />

Managing a business entails a range of challenges. As a business<br />

grows, different problems and opportunities demand<br />

specific solutions – what worked in the past might not be<br />

the best approach now.<br />

Nedbank <strong>Business</strong> Banking’s team in <strong>Limpopo</strong> offers a full range of<br />

financial and advisory services to businesses in and around the province.<br />

The bank’s expertise, combined with a deeper understanding<br />

of the local economy, allows us to provide you with relevant, timeous<br />

solutions that can make taking your business to the next level happen.<br />

Advantages of banking with Nedbank<br />

A single point of contact<br />

A relationship manager, located in your region and supported by a<br />

team of specialists, is dedicated to servicing your business and managing<br />

your banking needs, whether your business is just starting or<br />

established and growing.<br />

Industry-tailored solutions<br />

Specialist industries require specialist solutions. Nedbank has designed<br />

solutions that address the specific needs of the franchising, agricultural<br />

and government and public sector. Speak to our team of specialists<br />

with first-hand knowledge and experience in these industries.<br />

Transactional banking<br />

Nedbank <strong>Business</strong> Banking fully understands the importance of transactional<br />

banking requirements as the core of any business operation.<br />

Our transactional banking solutions integrate seamlessly into your<br />

business processes.<br />

Nedbank <strong>Business</strong> is a highly secure, world-class internet-based<br />

electronic banking system that will transform your business. Imagine<br />

your day-to-day banking, only 100% more efficient. Our incredibly versatile<br />

and easy-to-use structure will prove infinitely more functional and<br />

will improve the practicality of your company’s banking enormously:<br />

Loderick Lubisi, Nedbank’s<br />

Regional <strong>Business</strong> Head in<br />

<strong>Limpopo</strong> and Mpumalanga<br />

• First bank to use token<br />

technology<br />

• Segregation of duties and<br />

account permissions<br />

• Accurate transaction referencing<br />

on all channels<br />

• Multiple statement formats<br />

• Free statement downloads<br />

• Free five-year history online<br />

• Free online cheque and<br />

deposit slip images<br />

For more information about<br />

our specialised service offering<br />

please contact Loderick<br />

Lubisi, Nedbank’s Regional<br />

<strong>Business</strong> Head in <strong>Limpopo</strong> and<br />

Mpumalanga, at loderickl@<br />

nedbank.co.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

40


Making banking accessible<br />

to all and supporting<br />

small business<br />

Branch of the Future comes to Turfloop.<br />

FOCUS<br />

Nedbank prides itself in making things happen and is committed<br />

to making banking accessible to all in South Africa.<br />

As a bank, Nedbank repositioned its strategy to become<br />

a bank for all – and we continue to grow our footprint in<br />

communities where we were previously not represented. We have<br />

recently launched our new “Branch of the Future” in Turfloop in April.<br />

This is a client-centred branch engineered to provide a distinct client<br />

experience enabled through state of the art technology. Innovative<br />

features deployed in our new branches include video banking facilities,<br />

state-of-the-art cash-depositing ATMs, queue management that<br />

reduces waiting times, as well as internet banking facilities.<br />

From a small business perspective, Nedbank is a bank for entrepreneurs.<br />

We recognise the challenges of unemployment facing the<br />

country, and we have an extensive list of interventions to support small<br />

business as they are key in creating jobs, and boosting our economy.<br />

Providing solutions for entrepreneurs<br />

Nedbank has built a solid foundation and reputation as a bank for small<br />

businesses through national initiatives like:<br />

• Small <strong>Business</strong> Seminars — are held biannually and are free. The<br />

seminars provide practical advice and solutions on basic financial<br />

planning, cash flow management etc.<br />

• SimplyBiz — is an electronic platform which is free and used for<br />

networking and sharing of best practices for business owners in<br />

same industries. Check out the portal SimplyBiz.co.za<br />

• Nedbank sponsors and partners with external stakeholders, like,<br />

Raizcorp, who are holding workshops for entrepreneurs wishing<br />

to obtain advice on how to pitch their business ideas effectively.<br />

Nedbank also caters for business owners, households, young<br />

professionals and professional banking.<br />

Maki Mahlaba, Regional<br />

Manager Retail Relationship<br />

Banking<br />

For more information about<br />

our Small <strong>Business</strong> Services and<br />

Professional Banking call Maki<br />

Mahlaba +27 010 235 3007 or<br />

send an email to margaretma@<br />

nedbank.co.za<br />

41<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


INTERVIEW<br />

MASISIZANE FUND<br />

Boosting local business<br />

BUILDING SUSTAINABLE<br />

BUSINESSES THROUGH<br />

SUCCESSFUL PARTNERSHIPS<br />

The Masisizane Fund invests in SMMEs that have a<br />

registered business, in addition to a clear marketable<br />

product or service, and that create and retain jobs.<br />

What opportunities does <strong>Limpopo</strong> offer?<br />

There are vast opportunities in the province for SMMEs, as trading long in grain as and dairy prod<br />

focused on development of value<br />

they keep their ears and eyes on the ground and take the opportunities<br />

as they become available. There are areas in the partnerships province with Omnia, Gra<br />

mechanization, storage and micro<br />

without malls, therefore this creates opportunities for mall<br />

Association<br />

development<br />

and municipalities, th<br />

and franchising. Companies such as Broll, Twin City<br />

their planting significantly in 2014<br />

Maphala Mosomane<br />

channeled<br />

and the<br />

towards Grain Co as<br />

Moolman Group are expanding their property portfolio, within rural<br />

The Masisizane Fund (NPC), is an initiative towns of and Old this Mutual further South creates Africa, employment, established business opportunities Masisizane opera<br />

in 2007 following the closure of the Unclaimed and uplifts Shares Trust. the local This was economies. done in consultation<br />

nationally with it<br />

with the National Treasury of South Africa. The mandate of the Fund at inception was<br />

Agro-processing and manufacturing are other business sectors Gauteng and r<br />

and remains to contribute meaningfully to employment creation, poverty eradication<br />

with growth opportunities. We have an abundance of rain offices in the in KwaZu<br />

and reduction of inequality, economic growth and the attraction of investment. This is<br />

province and we’ve got good soil conditions, so agriculture <strong>Limpopo</strong>, offers Eastern<br />

done mainly through promotion of entrepreneurship, enterprise finance and support to<br />

many opportunities. For example <strong>Limpopo</strong> produces less than 10%<br />

small,<br />

BIOGRAPHY<br />

micro and medium enterprises (SMME’s).<br />

Western Cape.<br />

of its maize consumption and if we go back to the basics we can<br />

The process to follow when apply<br />

Maphala Mosomane is the reclaim our position as the bread basket of South Africa. from the Masisizane Fund is:<br />

The Fund provides loan finance in the following sectors:<br />

Provincial Manager: <strong>Limpopo</strong><br />

Submit the following documents fo<br />

• Agriculture<br />

& Mpumulanga of the Old Mutual<br />

Masisizane Fund. Maphala There are parts of the province with high concentrated sun projections; heat<br />

What is the potential in terms of solar energy? relevant provincial office:<br />

• Manufacturing<br />

• Comprehensive business plan<br />

• Supply Chain<br />

• Franchising<br />

started his career at Ga-Segonyana<br />

and we should look at exploiting such opportunities and • linkages For established businesses –<br />

• Commercial Enterprise<br />

Municipality working as a to Eskom to provide solar energy. Areas like Phalaborwa, Giyani,<br />

three years) and the latest man<br />

Non-financial value adding services include capacity<br />

• For start-up businesses – financ<br />

Local Economic Development Vhenda, Moletjie and Matlala can play a catalystic role in the provision<br />

financial of solar education, energy. market development and product/<br />

• Off take agreements and/or l<br />

development, business management and technical support,<br />

• Tax clearance certificate;<br />

Officer before joining ABSA<br />

Bank as an Enterprise Development<br />

service quality standards and compliance. A <strong>Business</strong><br />

• Signed consent for a credit ch<br />

Consultant. From there he<br />

moved to Standard Bank as an<br />

Acquisition Manager. In 2013,<br />

Maphala joined the Masisizane<br />

Fund as Provincial Manager<br />

of <strong>Limpopo</strong> and Mpumalanga<br />

What are the hallmarks of a successful SMME?<br />

It’s important for entrepreneurs to be committed and focused, but<br />

managing your cashflow is essential, otherwise you will get into<br />

serious difficulties. It’s also important to continuously develop your<br />

product range and to keep on marketing your business. If you get<br />

that right you will make money and have a successful business.<br />

Provinces. He has a Bachelor<br />

of Commerce in Economics degree<br />

in addition to a Certificate<br />

in Project Management.<br />

Are there any clients you are particularly proud to have<br />

helped?<br />

Every funding proposal presented to us and approved gives me<br />

The target market is enterprises that are 51% or more owned<br />

by the previously disadvantaged individual(s) giving priority<br />

to rural and peri-urban/township areas. Masisizane funding<br />

is biased towards 51% plus owned women, youth and<br />

people with disabilities. Masisizane will target productive<br />

and labour absorbing sectors as approved by the Board of<br />

Directors from time to time.<br />

The Fund’s success is driven through a focused approach on<br />

high impact industry sectors, coupled with a comprehensive<br />

SMME finance solution that includes business support.<br />

Acceleration Program has been e<br />

clients receive training and suppo<br />

eligible to receive financial suppo<br />

The growth of the Masisizane Fu<br />

inception. Although the initial foc<br />

the fund has gradually grown to b<br />

fund with the vision of being able<br />

as a sustainable entity and thereb<br />

for many years to come. The fu<br />

R1b and it plans to invest R420<br />

SMME’s by the end of 20<strong>17</strong>.<br />

The development of agri-clusters<br />

Masisizane Fund’s approach in<br />

entail the clustering of small sca<br />

the farmers benefit from economi<br />

on value chain financing, agro-p<br />

partnerships.<br />

In 2013 the Fund initiated a p<br />

Harry Gwala municipalities co<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

42


INTERVIEW<br />

great joy, as we would have made a meaningful<br />

contribution to entrepreneurship, employment<br />

and have made an impact on the economy.<br />

Having said that, I’m happy for all my clients and<br />

happy to have facilitated change in their lives.<br />

What is the ideal SMME company or cooperative<br />

you would hope to be able to<br />

help over the next year?<br />

I want to leverage the agricultural clusters that<br />

are currently doing well in the province. There is<br />

a cluster of maize growers doing around 2 000<br />

hectares of maize, and my plan in <strong>2016</strong> is to get<br />

them to 5000 hectares and assist them to become<br />

commercial.<br />

For the <strong>2016</strong> and 20<strong>17</strong> financial year I would like<br />

to help clients to develop a franchise group within<br />

the province and assist PDIs to gain ownership<br />

with the franchising space.<br />

There’s a lot of groundwork that needs to be<br />

done, you need to make sure that you’ve done<br />

your research and you are informed by the facts.<br />

Access to finance is much easier when you have<br />

thought it all through and based your numbers<br />

on facts. You need to have your ducks in a row if<br />

you want to take it to the next level.<br />

CONTACT INFO<br />

<strong>Limpopo</strong> & Mpumulanga<br />

Physical address: 5th Floor, Old Mutual<br />

Building, 70 Hans van Rensburg Street,<br />

Polokwane<br />

Tel: +27 15 287 4279<br />

Website: www.masisizane.co.za<br />

43 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

44


KEY SECTORS<br />

Overview of the main economic<br />

sectors of <strong>Limpopo</strong>.<br />

Agriculture 44<br />

Mining 48<br />

Transport and logistics 52<br />

Renewable energy 58<br />

Water 60<br />

ICT and telecommunications 62<br />

Tourism 74<br />

Banking and financial services 78<br />

Development finance<br />

and SMME support 80<br />

Education and training 89<br />

45 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Agriculture<br />

<strong>Limpopo</strong>’s avocadoes and macadamias are in big demand<br />

throughout the northern hemisphere.<br />

Some of South Africa’s biggest agricultural businesses are located<br />

in <strong>Limpopo</strong>, with the province’s fruit and vegetables<br />

forming a significant portion of the nation’s export offering.<br />

This is particularly the case with regard to avocadoes,<br />

mangoes, tomatoes and macadamia nuts, the last of which is a rapidly<br />

expanding subsector.<br />

About 1 000 new hectares are being planted every year, according<br />

to the Southern African Macadamia Growers’ Association<br />

(SAMAC), adding to the existing 19 000 hectares already under<br />

macadamias.<br />

The Kruger National Park was the venue for the 7th International<br />

Macadamia Symposium in August 2015, an indicator of <strong>Limpopo</strong>’s<br />

status. Production of nut-in-shell was nearly 5% up in 2015, at<br />

46 950 tons. About 45% of the previous year’s crop was exported,<br />

mostly to the USA and Europe. Growing conditions are ideal in the<br />

Levubu and Tzaneen districts. Neighbouring Mpumalanga is the<br />

other big macadamia province.<br />

There are about 450 farmers growing the nuts, but this includes<br />

several large farms, some of which have integrated operations in<br />

which the farms supply their own cracking factories. There are 14<br />

cracking factories in South Africa.<br />

The sector employs about 4 500 people, of which 1 500 are<br />

permanent employees.<br />

The macadamia nut has high protein, calcium and potassium<br />

content. Macadamia oil is popular and has a high Omega7 content.<br />

Ground macadamias can be used as a healthy substitute for flour.<br />

Location<br />

<strong>Limpopo</strong>’s location gives it a strategic advantage in terms of providing<br />

fresh produce to Gauteng, the densely urbanised economic<br />

centre of South Africa.<br />

Cattle and game ranching occur in the higher and drier areas of<br />

the province, while the lower-lying regions are rich in fruit, tea, citrus<br />

and vegetables. One of the best known products of the region is<br />

Amarula cream liqueur.<br />

SECTOR INSIGHT<br />

Investment in citrus is paying<br />

off.<br />

• Two recently reopened<br />

agricultural colleges have<br />

increased enrolment.<br />

• The Mooketsi Market’s<br />

strategic position is<br />

boosting trade in farm<br />

produce.<br />

• <strong>Limpopo</strong> hosted an international<br />

macadamia<br />

symposium in 2015.<br />

• Fish for Iran may be a jobbooster.<br />

Within <strong>Limpopo</strong>, the Mooketsi<br />

Market has used its very central<br />

position to boost trade in farming<br />

produce. Although the town<br />

itself is quite small, the market’s<br />

location north-east of Polokwane<br />

and north of Tzaneen, with access<br />

to the northern reaches of<br />

the province via the R36 and R81<br />

roads, has proved a winner since<br />

it opened in 2014. The market is<br />

owned by ZZ2, FGX (which facilitates<br />

transactions between buyers<br />

and sellers) and the RSA Group<br />

(which holds 30% representative<br />

market share of the fresh produce<br />

market in South Africa).<br />

The <strong>Limpopo</strong> growers from<br />

the Vhembe District in the far<br />

north and the Letaba Valley in<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

46


OVERVIEW<br />

the eastern Mopani District contribute<br />

45% of the produce sold<br />

at Johannesburg Fresh Produce<br />

Market, Africa’s biggest market.<br />

They are also major contributors<br />

to the Johannesburg Fresh<br />

Produce Market.<br />

ZZ2 farms a collection of tomotoes,<br />

onions, avocadoes, apples,<br />

pears and cattle. It is the major<br />

brand of Bertie van Zyl (Pty)<br />

Ltd, and a world leader in tomato<br />

production, producing 160 000<br />

tons of tomatoes per year. The<br />

company’s product range appears<br />

under 12 different brand<br />

names. ZZ2 owns large farms in<br />

four areas of <strong>Limpopo</strong> Province:<br />

Mooketsi, Politsi, Polokwane and<br />

Musina; it also operates in the<br />

Western and Eastern Cape. The<br />

company provides employment<br />

to 8 000 people.<br />

Westfalia, part of the Hans<br />

Merensky Group, is the world’s<br />

largest avocado grower. It also<br />

produces significant quantities<br />

of mango, litchi, citrus and<br />

macadamia and has three agriprocessing<br />

plants in the province.<br />

Avocado oil is produced<br />

in Modjajiskloof near Tzaneen<br />

on the farm Westfalia estate,<br />

juice and guacamole (avocado<br />

purée) is processed in Politsi, also<br />

near Tzaneen, and mangoes are<br />

dried and packed at the factory<br />

in Hoedspruit. Westfalia is the<br />

leading mango supplier in Africa.<br />

In <strong>Limpopo</strong>, estate farms<br />

include Westfalia (Tzaneen),<br />

Macnoon (Modjadjiskloof),<br />

Agrivet (Morebeng) and<br />

Goedgelegen (Mooketsi<br />

Valley). Organic avocadoes are<br />

also farmed in KwaZulu-Natal<br />

Province.<br />

The Westfalia Nursery produces more than 100 000 avocado trees<br />

every year. Westfalia Technological Services is the research division of<br />

Westfalia Fruit , promoting development of new cultivars and superior<br />

avocado rootstocks<br />

Relatively new entries into commercial farming are former cooperatives,<br />

and they have proved very successful. The two most active<br />

in <strong>Limpopo</strong> are NTKLA (with its headquarters in Modimolle) and Afgri,<br />

South Africa’s biggest agricultural company, which has its headquarters<br />

in Centurion (Gauteng).<br />

NTKLA is a shareholder in Venda Roller Mills in Thohoyandou and<br />

operates 10 grain silos, 23 retail outlets, 28 flour depots and one coldstorage<br />

facility.<br />

Crops<br />

The Levubu Valley in the north is particularly fertile with guavas and<br />

macadamia nuts among the crops that thrive there.<br />

Valley Farms is a successful enterprise that grows fruits such as mangoes<br />

and guavas, and produces concentrates, purées and dried fruits.<br />

Afgri’s soya plant at Mokopane (Nedan) has increased annual production<br />

to 195 000 tons of soya beans and 60 000 tonnes of sunflower,<br />

the result of a capital injection of R180-million in 2011.<br />

Greenway Farms supplies about 45% of the fresh-market carrots<br />

consumed in Southern Africa under the Rugani brand. A R6-million<br />

carrot combine-harvester is the only one of its kind in South Africa.<br />

The revival of the Tshivhase Tea Estate has not only given South<br />

Africans a truly local tea, it has also boosted employment in <strong>Limpopo</strong>.<br />

A number of brands have been developed, including Midi Gold which<br />

is the premium blend of the estate. Like the other teas, it is processed<br />

locally at the Mukumbani Tea Factory.<br />

Letaba Citrus Processors is a part of the African Realty Trust, which<br />

also owns two large farms: Letaba Estates and Richmond Estates.<br />

The Rhodes Food Group has a canned vegetable facility near<br />

Louis Trichardt.<br />

Cotton is grown at Loskop, North and South Flats, Wiepe and<br />

Dwaalboom/Thabazimbi. There are 2 855 hectares under irrigation<br />

and a further 326 hectares of dry land operations. <strong>Limpopo</strong> provides<br />

about 32% of the national harvest.<br />

Citrus<br />

Most of South Africa’s citrus and subtropical fruit comes from the<br />

eastern part of <strong>Limpopo</strong>. Soft and time-sensitive fruits, like avocados,<br />

are exported out of the Port of Cape Town and transported to that city<br />

by truck. Citrus is taken to the ports of Durban or Maputo.<br />

47 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

The Industrial Development Corporation (IDC) is getting behind<br />

citrus farming in <strong>Limpopo</strong>. Falling under the IDC’s Agro-Industries<br />

Strategic <strong>Business</strong> Unit, a funding agreement has been signed with<br />

Naranja Packers that will see new farms established, established farms<br />

converted to different cultivars and the packing house expanded. The<br />

brands Clemengold and Sweet C are marketed under Indigo Fruit<br />

Farming, which is wholly owned by ANB Investments. The packing<br />

house in Burgersfort processes up to 600 large crates of fruit a day in<br />

season, with each crate containing about 350kg of fruit – or slightly<br />

more than 2 000 tons.<br />

Despite concerns about trade from within the EU about the socalled<br />

“black spot” on some fruit (which the South African farming community<br />

has explained is a purely aesthetic problem) citrus exports from<br />

South Africa to the EU grew 22% in 2015. South Africa’s citrus industry<br />

is valued at R10-billion. So valuable is the EU as a client (accounting<br />

for about 40% of citrus exports) that South Africa has, according to<br />

<strong>Business</strong> Day, spent close to R1-billion to solve the “black spot” issue.<br />

Citrus exports to the EU had grown at a rate of 22% from January<br />

to November 2015. In volume, exports to the EU accounted for 40%<br />

of total citrus exports (30% oranges, 66% mandarins, 24% lemons), up<br />

from 36% in the prior season.<br />

A new entrant to the export market is the GOGO Group, located in<br />

the Loskop Valley, where intensive citrus cultivation takes place. Exports<br />

will be sent to the USA through the parent company EKM Exports.<br />

The Zebediela Citrus Estate has been bought by the Bjatlhadi community<br />

with the support of the <strong>Limpopo</strong> Local Economic Development<br />

Programme, and the focus has shifted from bulk supply to producing<br />

smaller, consumer-friendly quantities.<br />

Livestock<br />

Government planning at provincial level includes the promotion<br />

of meat “clusters” along all the development corridors identified<br />

in the province. This includes the promotion of hygienic practices,<br />

the establishment of small-scale abattoirs and assistance in the<br />

marketing of products.<br />

The province has about one-million beef cattle, about 7.5% of the<br />

national herd. A new indigenous breed of cattle has been developed<br />

called the Pinz²yl, from breeding Pinzgauer and Nguni stock. This is an<br />

initiative of the same farming group that grows the ZZ2 tomato, with<br />

the name derived from the famous European breed and the name of<br />

the farmer who started it all, Bertie van Zyl.<br />

International demand for venison is in the region of 50 000 tons<br />

per year and South Africa only supplies about 2 000 tons of it – a<br />

clear opportunity for <strong>Limpopo</strong> entrepreneurs to grow their share<br />

of the market.<br />

Water<br />

Although parts of <strong>Limpopo</strong> are<br />

well-watered, many areas are<br />

dry, which means that irrigation<br />

projects take on enormous importance.<br />

Four irrigation schemes<br />

below the Flag Boshielo Dam<br />

have prospered (542 hectares<br />

in extent). All four schemes have<br />

potato crops with Krokodil also<br />

having a maize component.<br />

The long drought that has affected<br />

many parts of South Africa<br />

has had a big impact in <strong>Limpopo</strong>.<br />

The provincial government declared<br />

a disaster in November<br />

2015 and released funds to supply<br />

feed for livestock in areas where<br />

it is scarce.<br />

Amazingly, the demand for fish<br />

in Iran may mean that small water<br />

bodies in the Sekhukhune District<br />

will be devoted to cultivating<br />

fish. The Phethwane Integrated<br />

Aquaculture Project stalled after<br />

a bright start in 2011, but a Fishery<br />

Imbizo held at the Tompi Seleka<br />

College of Agriculture in Marble<br />

Hall aimed to resuscitate the project.<br />

The goal is to supply 500 tons<br />

of fish.<br />

The Tompi Seleka College is<br />

itself in the spotlight, having been<br />

reopened in 2015. Together with<br />

the Madzivhandila College (in<br />

the Thula-Thula Municipality in<br />

the Vhembe District), enrolment<br />

has increased from 140 in 2015 to<br />

222 in <strong>2016</strong>. <strong>Limpopo</strong> is trying to<br />

skill its own farmers.<br />

Irrigation technology is at the<br />

heart of a project in Strydkraal<br />

in Sekhukhune, where MBB<br />

Consulting Engineers has designed<br />

a 300-hectare scheme<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

48


OVERVIEW<br />

to produce maize and potatoes.<br />

An experienced commercial<br />

farmer will oversee the management<br />

of the scheme, which<br />

is funded by the <strong>Limpopo</strong><br />

Department of Agriculture and<br />

Rural Development and is intended<br />

to benefit the community of<br />

Ikageng.<br />

Food security<br />

A national rural development<br />

strategy has been established<br />

by the National Department<br />

of Agriculture, Forestry and<br />

Fisheries (DAFF), the key component<br />

of which is food security.<br />

The entire value chain of agriculture<br />

is under scrutiny, with the<br />

aim to help small-scale farmers<br />

by improving infrastructure, creating<br />

new markets and assisting<br />

them to gain access to the big<br />

buyers such as supermarkets.<br />

In many areas, private companies<br />

such as South African<br />

Breweries, Woolworths and Pick<br />

n Pay are already active. Massmart<br />

has committed to creating opportunities<br />

for emerging farmers<br />

through its Direct Farm<br />

Programme.<br />

DAFF aims to increase the<br />

number of smallholder producers<br />

in the country. As the DAFF strategic<br />

plan says, “there is a need to<br />

coordinate and integrate all the<br />

support provided to smallholder<br />

and subsistence producers”.<br />

Memorandums of understanding<br />

have been signed with<br />

three Chinese provinces (Anhui,<br />

Jilin and Henan), and the province<br />

is in talks with the National<br />

Department of Agriculture about<br />

putting mangoes and avocadoes (two of <strong>Limpopo</strong>’s biggest products)<br />

on the priority list of exports to China.<br />

The <strong>Limpopo</strong> Economic Development Agency has identified specific<br />

investment opportunities: private partnerships to resuscitate<br />

state irrigation schemes, cut flowers, baby vegetables, almonds, table<br />

grapes and pork. Sunflowers, soya beans and maize are other crops,<br />

all of which hold great potential for growth.<br />

A R2.2-million project near Tzaneen aims to improve food security.<br />

The Limani Project is a joint undertaking of Pioneer Foods, Trees for<br />

Africa and the Dreamfields Foundation. Schools receive seeds, tools<br />

and lessons in how to grow organic gardens.<br />

TechnoServe, an NGO, and food-supply company Qutom are helping<br />

three emerging <strong>Limpopo</strong> farmers produce 700 tons of tomatoes<br />

for Woolworths and other markets. TechnoServe is handling the loan<br />

and has found an experienced farmer to mentor the three new farmers:<br />

the mentor’s remuneration will depend on the production levels<br />

of his charges.<br />

The Eskom Development Foundation acknowledges hard work<br />

in the agricultural sector through its <strong>Business</strong> Entrepreneurship<br />

Investment Competition Awards. The winners in 2015 was Greenland<br />

Landscaping (Thohoyandou) with first runner-up’s position going to<br />

Livhuki General Trading (Pty) Ltd (Makhado).<br />

ONLINE RESOURCES<br />

Agro-Food Technology Station, <strong>Limpopo</strong> University:<br />

www.ul.ac.za<br />

ARC-Institute for Tropical and Subtropical Crops:<br />

www.arc.agric.co.za<br />

Citrus Growers Association: www.cga.co.za<br />

Deciduous Fruit Producers Trust: www.dfpt.co.za<br />

Food & Trees For Africa: www.trees.co.za<br />

<strong>Limpopo</strong> Department of Agriculture: www.lda.gov.za<br />

<strong>Limpopo</strong> Economic Development Agency: www.lieda.co.za<br />

<strong>Limpopo</strong> Local Economic Development Programme:<br />

www.limpopoled.com<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

South African Fruit Farms: www.safruitfarms.com<br />

South African Macadamia Growers’ Association:<br />

www.samac.org.za<br />

South African Subtropical Growers’ Association:<br />

www.subtrop.net<br />

49 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Mining<br />

The Waterberg region is attracting mining companies.<br />

SECTOR INSIGHT<br />

After several years of rising prices and increasing demand,<br />

the global commodities market experienced lower prices<br />

and shrinking demand in 2015. This had a lot to do with<br />

slower growth in China, but South African mining companies<br />

also had to deal with rising energy prices, labour upheavals and<br />

legislative uncertainty.<br />

There have consequently been some big changes to the mining<br />

landscape, and not just in South Africa. One of the most significant is<br />

the change of focus by Anglo American, one of the world’s biggest<br />

resource companies. It decided to focus sharply on diamonds, copper<br />

and platinum. This is not just in the company’s South African mines, but<br />

rather a global decision which will affect Anglo’s operations in North<br />

and South America, Australia and South Africa. In 2015 the Anglo group<br />

had 55 mines, employed 128 000 people and had revenue of $23-billion.<br />

The sale of Anglo’s iron-ore and coal assets has provided an opportunity<br />

for other mining companies that want to mine differently or<br />

acquire new assets.<br />

Sibanye Gold, going beyond the name it acquired when Goldfields<br />

was unbundled in 2013, bought platinum mines in Rustenburg<br />

Chinese companies have<br />

been very active in the<br />

<strong>Limpopo</strong> mining sector.<br />

• Sibanye Gold is buying<br />

platinum assets.<br />

• Hebei Iron and Steel and<br />

the IDC may build a steel<br />

mill in <strong>Limpopo</strong>.<br />

• A provincial mining roundtable<br />

was held to promote<br />

industrialisation.<br />

• A national Energy<br />

Metallurgical Base Project<br />

will anchor the planned<br />

Special Economic Zone at<br />

Musina.<br />

• Phalaborwa Copper will<br />

spend R9.3-billion on<br />

extending the life of the<br />

mine.<br />

• Anglo American is selling<br />

some assets, but investing<br />

more money in diamond<br />

mining in <strong>Limpopo</strong>.<br />

• Exxaro is investigating<br />

Underground Coal<br />

Gasification.<br />

from Anglo American Platinum<br />

(Amplats) in 2015 and has expressed<br />

interest buying coal assets,<br />

mostly to offset rising energy<br />

costs at its own mines.<br />

Anglo’s 16.8% share in the<br />

copper mine, smelter and<br />

refinery in Phalaborwa was dis-<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

50


OVERVIEW<br />

posed of in 2013 (Rio Tinto was<br />

the majority shareholder). The<br />

main shareholders in the purchasing<br />

holding company are<br />

Hebei Iron and Steel (of China)<br />

and South Africa’s Industrial<br />

Development Corporation, holding<br />

35% and 20% respectively.<br />

The new shareholders have<br />

undertaken to spend R9.3-billion<br />

on the mine complex to extend<br />

the life of the mine which is South<br />

Africa’s only producer of refined<br />

copper. The mine produces<br />

about 80 000 tons of refined<br />

copper every year, and the refinery<br />

produces continuous cast<br />

rod for the domestic market and<br />

cathodes for the export market.<br />

Hebei and the IDC have<br />

jointly committed to spending<br />

a further $5-billion on building<br />

a new steel plant in South Africa.<br />

One of the sites being considered<br />

is Phalaborwa (the others<br />

are Witbank in Mpumalanga and<br />

Richards Bay). Other steel producers<br />

have been stressed by<br />

low prices and over-production<br />

on the global market, but the<br />

IDC believes that they can make steel cheaper and supply the<br />

African market.<br />

Mining activities at the Kumba iron-ore Thabazimbi mine ceased<br />

at the end of September 2015 and processing activities ceased on 31<br />

March <strong>2016</strong>.<br />

In contrast to these pull-backs, Anglo American has announced a<br />

further investment of $20-million to expand production at its diamond<br />

mine near the town of Musina. Venetia Mine is by far the most important<br />

part of De Beers’ South African operation, accounting for 3.1-million of<br />

the 5.4-million carats recovered by the company from its six operations.<br />

<strong>Limpopo</strong>’s mineral riches<br />

<strong>Limpopo</strong> has a very rich and varied mineral asset base. Platinum occurs<br />

on both limbs of the Bushveld Igneous Complex (BIC), and the<br />

Waterberg district is seen as the answer to South Africa’s coal needs<br />

for the next several decades.<br />

The provincial government reports that the mining sector constituted<br />

26% of <strong>Limpopo</strong>’s gross domestic product in 2013. In 2015 a<br />

Mining Roundtable was held under the title “<strong>Limpopo</strong>’s Minerals for a<br />

Broad-Based Industrialisation Agenda” and attended by 250 delegates<br />

from the mining sector, universities, NGOs and government. A key focus<br />

area is to try to ensure that 20% of procurement in the mining sector<br />

goes to small businesses and co-operatives.<br />

Silicon Smelters (the largest charcoal producer in Africa) and Anglo<br />

Platinum’s smelting facility, one of three run by the company, are both<br />

located in Polokwane.<br />

Northam Platinum’s metallurgical complex at its Zondereinde mine<br />

processes Merensky and UG2 ores separately.<br />

51 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

At the University of <strong>Limpopo</strong>, the Materials and Modelling Centre<br />

has a nationally-appointed Chair in Computational Modelling of<br />

Materials. The chair, which is funded by the National Department of<br />

Science and Technology and the National Research Foundation, is<br />

held by distinguished Professor Phuti Ngoepe. High-level research is<br />

undertaken into magnesium and titanium compounds and into issues<br />

such as the nanostructures of lithium-ion which are relevant to the<br />

electric-car industry.<br />

Platinum and coal<br />

Despite reduced global demand in the short term, Platinum Group<br />

Metals (PGMs) are very much linked to the modern global economy<br />

and high-technology products of every sort: catalytic converters<br />

and fuel cells are just two examples. Jewellery is another application.<br />

According to marketing agency Johnson Matthey, South Africa has, in<br />

percentages of world supply of Platinum Group Metals: 75% platinum;<br />

35% palladium and 86% of rhodium.<br />

Implats’ major <strong>Limpopo</strong> asset is a 73% holding in Marula (eastern<br />

limb) which is 50km north of Burgersfort. Jubilee is the minority<br />

shareholder.<br />

Lonmin runs the <strong>Limpopo</strong> mine near Polokwane on the eastern limb<br />

of the BIC but most of its mines are in North West province. Lonmin’s<br />

other <strong>Limpopo</strong> assets include the Baobab mine, a concentrator and<br />

a half share (with Mvelaphanda Resources) of the Doornvlei project.<br />

Northam Platinum has the mines Zondereinde (on the western<br />

limb) and Booysendal in the east and in 2015 acquired the Everest<br />

mine from Aquarius. The company is increasing production and made<br />

a profit in 2015 of R595.8-million.<br />

Junior mining companies active<br />

in <strong>Limpopo</strong> include Lesogo<br />

Platinum (the Phosiri Project on<br />

the eastern limb), Nkwe Platinum<br />

and Bauba Platinum.<br />

A new platinum project got<br />

underway near Mokopane in<br />

2015, where Ivanhoe Mines<br />

Platreef Project (64% owned by<br />

Ivanplats) will spend $1.6-billion.<br />

<strong>Limpopo</strong> contributes 4%<br />

of coal mining in South Africa,<br />

according to the National<br />

Department of Mineral<br />

Resources, but it seems likely<br />

that within the next three<br />

decades, the province will be<br />

supplying about half of South<br />

Africa’s coal.<br />

Coal is massively in demand<br />

because of South Africa’s urgent<br />

need for more electricity.<br />

<strong>Limpopo</strong>’s Waterberg coal field<br />

is estimated to contain about<br />

75- billion tons of coal.<br />

Supplying coal to power-producer<br />

Eskom has for many years<br />

been part of the bread-andbutter<br />

income for coal mining<br />

operators. In 2015, Exxaro supplied<br />

Eskom with nearly 30%<br />

of the coal it needed to run its<br />

power stations, about 33-million<br />

tons of coal.<br />

Exxaro spent several billion<br />

rand expanding its Grootgeluk<br />

mine in the expectation that it<br />

would supply coal to Eskom’s<br />

Medupi power station. However,<br />

construction of the giant power<br />

station has been severely delayed,<br />

with the result that Exxaro<br />

are now having to look to export<br />

their coal. The plan was for the<br />

mine to supply Medupi with<br />

14.6-million tons of coal every<br />

year for 40 years.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

52


OVERVIEW<br />

Exxaro is exploring new technologies<br />

at Lephalale, working on<br />

the possibilities of Underground<br />

Coal Gasification (UCG).<br />

Sibanye Gold has acquired<br />

a 51% stake in Waterberg Coal,<br />

further evidence that it intends<br />

looking after its own power<br />

supply, at least to some extent.<br />

Coal of Africa is active in<br />

<strong>Limpopo</strong>. Its subsidiary, <strong>Limpopo</strong><br />

Coal, mines the Vele colliery in the<br />

far north of the province.<br />

Other minerals<br />

The Phalaborwa phosphate mine<br />

of Foskor has an annual capacity<br />

of 2.85-million tons. It uses<br />

the phosphate rock it mines to<br />

manufacture phosphate fertiliser<br />

and phosphoric acid.<br />

The largest concentrations<br />

of chromite are found on the<br />

eastern limb of the Bushveld<br />

Igneous Complex where<br />

Samancor runs Eastern Chrome<br />

Mines at Steelport (with three<br />

concentrators) and ASA Metals’<br />

upscaled smelting furnaces now<br />

produce 400 000 tons of charge<br />

chrome per year at the Dilokong<br />

Chrome Mine, located between<br />

Burgersfort and Polokwane.<br />

South Africa produces 39% of the<br />

world’s chromite.<br />

Andalusite, a vital component<br />

in spark-plug ceramics, is<br />

mined near Thabazimbi and at<br />

Maroelasfontein in the west of<br />

the province. The Consolidated<br />

Murchison Mine (ConMurch)<br />

at Gravelotte, just west of<br />

Phalaborwa, is the single biggest<br />

producer of antimony in the<br />

world outside China, producing<br />

about 20% of the world’s supply. Attapulgite is mined by G&W Base<br />

and Industrial Minerals at Dwaalboom. Sephaku Holdings is optimistic<br />

about tin, copper, fluorspar mineralisation at its site west<br />

of Mokopane.<br />

Investors in a new cement factory in Thabazimbi include the Jidong<br />

Development Group, the China African Development Fund and the<br />

South African Women Investment Holdings Portfolio. An amount<br />

of R1.6-billion was invested, creating 550 temporary jobs and 231<br />

full-time jobs.<br />

ONLINE RESOURCES<br />

Chamber of Mines of South Africa: www.bullion.org.za<br />

Geological Society of South Africa: www.gssa.org.za<br />

Mining Qualifications Authority (MQA): www.mqa.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

South African Institute of Mining and Metallurgy:<br />

www.saimm.co.za<br />

53 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Transport and logistics<br />

Transport and logistics are vital to <strong>Limpopo</strong>’s export trade<br />

Logistics is a vital feature of the <strong>Limpopo</strong> economy for two<br />

reasons: the province has huge volumes of raw produce to<br />

be transported to markets elsewhere, and the province is also<br />

strategically positioned on the great road to the north.<br />

All of South Africa’s major logistics companies have facilities in<br />

Polokwane, and some (like RTT, which also has offices in Makhado) have<br />

warehouses and forwarding capabilities in other parts of the province.<br />

<strong>Limpopo</strong>’s biggest exports (minerals, fruit and vegetables) require<br />

dramatically different levels of handling. Minerals are poured in great<br />

volumes into the freight trucks of Transnet Freight Rail (TFR) and taken<br />

onward to the Richards Bay Coal Terminal, whereas some of the province’s<br />

fruits (for instance avocadoes) have to be handled with extreme<br />

care. They also have to be delivered to ports as quickly as possible as<br />

they are delicate and the deadlines for getting fruit to market in Europe<br />

can be extremely challenging. Companies such as Freezerlines, Fast<br />

SECTOR INSIGHT<br />

Transnet Freight Rail wants<br />

to get freight off the roads<br />

and onto rail.<br />

• Roads Agency <strong>Limpopo</strong><br />

has a budget of R737-<br />

million for <strong>2016</strong>/<strong>17</strong>.<br />

• SA Express flies regularly<br />

to Eastgate airport near<br />

the Kruger Park.<br />

‘n Fresh and Cold Chain have developed<br />

specialist techniques for<br />

getting these fruits to market and<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

54


OVERVIEW<br />

to port undamaged. Grindrod has<br />

a Perishable Cargo division which<br />

specialises in transporting cargo<br />

by air.<br />

The large national logistics<br />

company Value Group has only<br />

four major regional depots outside<br />

of Gauteng: in Cape Town,<br />

Durban, Nelspruit and Polokwane.<br />

This illustrates the importance<br />

of the <strong>Limpopo</strong> Province and<br />

its capital city in South Africa’s<br />

logistics chain.<br />

Logistics giant Imperial<br />

Logistics Southern Africa has 70<br />

companies in its group structure,<br />

including Kobus Minaar Transport,<br />

a concern that began in Tzaneen<br />

transporting fruit and vegetables.<br />

Other active companies<br />

in <strong>Limpopo</strong> include Dawn Wing Logistics, Kargo, F&R Logistics and<br />

Aramex SA.<br />

Outside of Polokwane, the towns of Tzaneen, Lephalale, Burgersfort<br />

and Musina (a border post with Zimbabwe) are all important in the<br />

field of logistics.<br />

There has been interest for some years in increasing rail volumes out<br />

of the coal-rich Waterberg area (TFR is conducting a feasibility study<br />

into building a major new rail link) but depressed commodity prices<br />

worldwide will make it more difficult to get this project up and running<br />

in the near future. An extension of 464km would cost about R37-billion,<br />

but it is possible that TFR will look for private partners to invest in the<br />

project. If more coal mines are developed then capacity could be<br />

ramped up in stages from the current four-million tons-per-year to<br />

around 80-million tons, which would all be delivered to Richards Bay<br />

via the line through Mpumalanga and KwaZulu-Natal. Eskom’s huge<br />

new power station in western <strong>Limpopo</strong> (Medupi) will need massive<br />

supplies of coal but is experiencing long delays in construction.<br />

The N1 highway (“The Road to the North”) is an incredibly busy and<br />

sometimes overcrowded road, and growing mining operations are<br />

putting pressure on secondary routes throughout the province, which<br />

55 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

is why it is good news for <strong>Limpopo</strong> that the stated aim of Transnet<br />

Freight Rail is to lead the country in getting larger quantities of freight<br />

moved from road back to rail.<br />

On the national scene, the Passenger Rail Agency of South Africa<br />

(Prasa) is set to spend about R123-billion on upgrading and modernising<br />

the country’s rail system and rolling stock. This would include<br />

an investment in the building of 360 new coaches every year for<br />

two decades.<br />

Roads<br />

The Roads Agency of <strong>Limpopo</strong> (RAL), of which the provincial government<br />

is the sole shareholder, accounts for about one-third of the<br />

budget of the <strong>Limpopo</strong> Department of Public Works, Roads and<br />

Infrastructure. In <strong>2016</strong>/<strong>17</strong>, RAL has been allocated R737.3-million.<br />

The Department of Transport looks after transport infrastructure<br />

(other than roads) and public transport, and it has budgeted R1.9-billion<br />

for these facilities in <strong>2016</strong>/<strong>17</strong>. A bus monitoring system is due to be<br />

purchased by the province.<br />

Since 2009 RAL has built 21 bridges, upgraded about 407km of<br />

gravel roads to tar and rehabilitated more than <strong>17</strong>0km of tarred roads.<br />

Roughly 30% of the roads in <strong>Limpopo</strong> are tarred and some provincial<br />

expenditure is allocated to ensure access to schools and clinics.<br />

Another project whereby households living along routes are tasked<br />

with maintaining roads has been rolled out, and 25 such projects will<br />

be supported to the tune of R278-<br />

million, led by local municipalities.<br />

The provincial transport department<br />

has also made bicycles<br />

available to some school pupils<br />

who live further than 10km from<br />

their school.<br />

National government has<br />

spent ever-increasing amounts of<br />

money on road allocations over<br />

the last five years, increasing at a<br />

rate of 16% every year. The South<br />

African National Roads Agency<br />

Limited (Sanral) has successfully<br />

raised several billion rand through<br />

bonds and capital markets in<br />

pursuit of its mandate to finance,<br />

manage and maintain the national<br />

road network. In 2014, several<br />

provincial roads in <strong>Limpopo</strong> were<br />

transferred to Sanral.<br />

Great North Transport has<br />

more than 500 buses, covers<br />

about 36-million kilometres every<br />

year, employs more than 1 200<br />

people and transports 37.6-million<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

56


OVERVIEW<br />

passengers. A wholly-owned subsidiary<br />

of the <strong>Limpopo</strong> Economic<br />

Development Agency (LEDA), it<br />

operates on 279 routes with 11<br />

depots supporting the network<br />

of bus routes. These depots are<br />

located at: Seshego, Mokopane,<br />

Bapedi, Phalaborwa, Marble Hall,<br />

Giyani, Motetema, Hoedspruit,<br />

Tzaneen, Bushbuckridge and<br />

Makhado.<br />

In 2013, Great North Transport<br />

purchased 80 buses valued at<br />

approximately R140-million from<br />

MAN Truck & Bus. With an average<br />

round-trip distance of 100km<br />

on gravel roads, the Lion Explorer<br />

HB4 was judged to be well-suited<br />

to the robust local conditions.<br />

Air<br />

The Polokwane International<br />

Airport (PIA) is wholly owned<br />

by the provincial government<br />

and run by the Gateway Airports<br />

Authority Limited (GAAL), an<br />

agency of the Department of<br />

Roads and Transport. The airport<br />

has undergone a R35-million upgrade<br />

and been transformed into<br />

a regional hub. It has the potential<br />

to be an important regional cargo<br />

airport.<br />

SA Airlink caters mainly to the<br />

business market and offers 21<br />

flights to Johannesburg six days<br />

a week. The airline also provides<br />

links between Phalaborwa and<br />

Johannesburg, as well as between<br />

Hoedspruit, Johannesburg<br />

and Cape Town.<br />

Many game reserves have airstrips,<br />

while regional airports in<br />

the eastern part of the province<br />

provide easy access to the Kruger<br />

National Park. East Gate at Hoedspruit is situated within an airforce<br />

base and has the second-longest runway in South Africa, which is<br />

long enough to serve as an emergency landing area for space shuttles.<br />

The airport is served by SA Express. Phalaborwa’s airport is notable<br />

for its African-themed terminal, which includes a zebra-patterned<br />

floor. Musina, near the border with Zimbabwe in the north, hosts the<br />

province’s other regional airport.<br />

ONLINE RESOURCES<br />

Air Traffic and Navigation Services: www.atns.co.za<br />

Civil Aviation Authority: www.caa.co.za<br />

Eastgate Airport: www.eastgateairport.co.za<br />

Great North Transport: www.limdev.co.za<br />

Gateway Airports Authority Limited: www.gaal.co.za<br />

<strong>Limpopo</strong> Department of Roads and Transport:<br />

www.ldrt.gov.za<br />

Railroad Association of South Africa: www.rra.co.za<br />

Roads Agency <strong>Limpopo</strong>: www.ral.co.za<br />

South Africa Bus Operators Association: www.saboa.co.za<br />

South African National Roads Agency Limited:<br />

www.sanral.co.za<br />

South African Rail Commuter Corporation Ltd:<br />

www.sarcc.co.za<br />

Transnet Freight Rail: www.transnet.net<br />

57 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Gateway Airports<br />

Authority Limited<br />

With a vision to be an optimally functioning airports authority and centre of excellence<br />

through Airport City Services in the <strong>Limpopo</strong> region, Gateway Airports Authority<br />

Limited is committed to unlocking maximum benefit for its stakeholders.<br />

Mandate and success<br />

GAAL’s mandate is to manage all non-private airports<br />

in <strong>Limpopo</strong> (including Polokwane International<br />

Airport) in compliance with various legislative and<br />

administrative ccts such as the South African Civil<br />

Aviation Authority (SACAA). GAAL currently manages<br />

Polokwane International Airport and has increased<br />

its tariffs as a result of benchmarking itself<br />

against other peer group industry partners. The<br />

agency has contributed to a much-needed injection<br />

of cash into the organisation and has contracted<br />

Air Traffic Navigation Services to collect approach<br />

fees (fees which they had not previously collected).<br />

The management of GAAL are confident that this<br />

intervention will assist the organisation to further<br />

address all the compliance and maintenance issues<br />

that the organisation faces. In addition, the airport’s<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

58


PROFILE<br />

Thulani Zulu,<br />

CEO of Gateway<br />

Airports Authority<br />

Limited.<br />

maintenance is carried<br />

out, along with implementing<br />

projects that will<br />

lead to the construction<br />

of the Fire and Rescue<br />

Training facility, construction<br />

of a non-public parking<br />

management system,<br />

in addition to asset acquisitions<br />

such as the purchase<br />

of X-ray screening<br />

machines for passenger<br />

security screening.<br />

compliance status has been confirmed by the Civil<br />

Aviation Authority’s audit inspection during the year<br />

under review. As a result of this audit, the airport<br />

received International Airport status and has also<br />

being recognised as an institution that contributes<br />

significantly to economic growth and development<br />

throughout <strong>Limpopo</strong>.<br />

Driving revenue<br />

The organisation’s financial sustainability will be<br />

significantly improved by development and implementation<br />

programmes that will result in an increase<br />

in aeronautical fees (including landing, passenger,<br />

parking and baggage-handling fees) as well as fuel<br />

throughput and non-aeronautical revenue streams.<br />

These revenue streams include the rental income<br />

from office space, car parking fees, water and electricity<br />

tariffs, the sale of permits and sale of tender<br />

documents. Passenger statistics are the most important<br />

figure in terms of the business’ operations<br />

as they generate the key performances, and assist<br />

with budget target planning in addition to the actual<br />

achievements in the business.<br />

Infrastructural improvements<br />

The airport is in the initial stages of a supply<br />

chain process that will ensure that infrastructure<br />

Services and products<br />

Located within <strong>Limpopo</strong>’s Capricorn District,<br />

Polokwane International Airport offers access to<br />

one scheduled domestic airline, namely SA Airlink<br />

(connecting to OR Tambo International Airport).<br />

Economic opportunities<br />

The increase in domestic passenger movement<br />

and the introduction of the new scheduled private<br />

charter flights – with the corresponding development<br />

of new routes – is a breath of fresh air to the<br />

local economy. This is an initiative that is aligned<br />

with a number of others that are not only aimed at<br />

improving the provincial transport landscapes, but<br />

also contribute significantly to the socio-economic<br />

impact in the province.<br />

CONTACT INFO<br />

Physical address: Gateway Road,<br />

Polokwane 0700<br />

Postal address: PO Box 1309,<br />

Polokwane 0700<br />

Tel: +27 15 288 0122<br />

Fax: +27 15 288 0125<br />

Email: info@gaal.co.za<br />

Website: www.gaal.co.za<br />

59 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Renewable energy<br />

Solar and bio-mass have the greatest potential in <strong>Limpopo</strong>.<br />

SECTOR INSIGHT<br />

Two big events have changed the energy landscape in <strong>Limpopo</strong><br />

province: firstly, the giant Medupi power station started delivering<br />

power to the national grid in August 2015; secondly, <strong>Limpopo</strong><br />

became the site of three projects that are part of the national<br />

programme to encourage independent power producers to build<br />

capacity in that field.<br />

At this stage the former event is much more significant than<br />

the latter: Unit 6 at Medupi on its own will generate 794MW and<br />

the plan is to have all six units doing the same. Compared to these<br />

volumes of energy, the amount so far allocated to <strong>Limpopo</strong> in the<br />

renewable energy field is really small. And there is no doubt that<br />

coal-fired power stations such as Medupi will mean that South Africa<br />

will continue to rely on coal for many years to come – but this means<br />

that the coal fields and power stations of <strong>Limpopo</strong> will also continue<br />

to remain significant.<br />

However, the shift away from a carbon-economy is happening,<br />

and it is happening at astonishing speed (and there is also the fact<br />

that Medupi and Kusile, the other big power station, have been<br />

delayed for a very long time and, at time of going to print, a date for<br />

full functionality remains, at best, a guess).<br />

The Matimba Power Station nearby will continue to hold its title as<br />

the world’s largest dry-cooling plant only until such time as Medupi<br />

is commissioned. Matimba functions close to 3 700MW capacity.<br />

Although <strong>Limpopo</strong> has only been allocated three projects so far,<br />

the national Department of Energy’s Renewable Energy Independent<br />

South Africa’s independent<br />

renewable energy power<br />

producers’ programme has<br />

attracted R53.2-billion in<br />

foreign investment.<br />

• Medupi power station<br />

is feeding power to the<br />

national grid after long<br />

delays.<br />

• Nine biogas digesters are<br />

running as part of a pilot<br />

project.<br />

• <strong>Limpopo</strong> is home to a<br />

large silicon smelter and<br />

silicon is a component of<br />

solar panels.<br />

Power Producer Procurement<br />

Programme (REIPPP) has been<br />

astonishingly successful in a very<br />

short period of time. Local and<br />

foreign companies have been<br />

bidding in a “closed envelope”<br />

process to build renewable<br />

energy plants (solar, wind, biomass,<br />

hydroelectric) and the<br />

Department of Energy (DoE) selects<br />

the winning company or<br />

consortium, which then gets to<br />

build the plant and sell what it<br />

generates into the national grid<br />

at a competitive price.<br />

Over the four bidding “windows”<br />

to September 2015, a total<br />

of 92 contracts have been signed<br />

to supply electricity with a nameplate<br />

capacity of 6 327MW and<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

60


OVERVIEW<br />

South Africa has received R53.2-<br />

billion in foreign investment.<br />

The overwhelming majority<br />

of projects approved have been<br />

solar and wind and there is now<br />

going to be a focus on finding<br />

ways to promote projects using<br />

biogas, landfill gas and small-scale<br />

hydro electric.<br />

<strong>Limpopo</strong>’s three REIPPP projects<br />

are all of the photovoltaic<br />

solar type, and together they will<br />

generate 118MW at full capacity.<br />

The provincial government’s<br />

Green Economy Plan has identified<br />

solar and biomass as the main<br />

kinds of renewable energy that<br />

the province can pursue.<br />

Nine biogas digesters have<br />

been installed in the Vhembe<br />

District and these will be controlled<br />

by young entrepreneurs<br />

trained by the University of<br />

Venda. A demonstration model<br />

is at the university. A group of<br />

31 students are studying Energy<br />

Management Systems as part of<br />

<strong>Limpopo</strong>’s Green Economy Plan.<br />

Energy generation is not the<br />

only component of the plan: with<br />

huge silicon reserves in the province,<br />

there is potential for the production<br />

of solar panels and solar<br />

chargers for cellphones.<br />

Alternatives<br />

The mining and agricultural sectors<br />

are the two biggest and most<br />

important sectors of the <strong>Limpopo</strong><br />

provincial economy. They are big<br />

consumers of energy and hold<br />

the key to advancing alternate<br />

technologies.<br />

Many mines are looking increasingly<br />

at going off-grid and<br />

are therefore using renewable strategies to achieve that. The agricultural<br />

sector obviously controls all sorts of feedstocks that can be used<br />

to generate power.<br />

Anglo Platinum has launched an underground mining locomotive<br />

powered by a fuel cell. Platinum coating greatly enhances the hydrogen<br />

absorption capacity of fuel cells. The locomotive was developed<br />

together with Vehicle Projects, Trident South Africa and Battery Electric.<br />

Anglo Coal’s operations at Lephalale produce a huge amount of<br />

methane gas. A third of this gas is now being used to power fuel cells.<br />

Anglo Platinum is a <strong>17</strong>.5% shareholder in Johnson Matthew Fuel<br />

Cells. Anglo Platinum bought the second-hand demonstration unit<br />

from UTC Power, a US company. It can produce up to 200 kilowatts<br />

of electricity.<br />

Bioethanol, biodiesel and methane gas from waste and renewable<br />

resources are among the types of biofuels being investigated.<br />

A new set of national government guidelines has shifted the emphasis<br />

towards finding fuel stock from crops that are unlikely to affect<br />

food security, like sugar cane, sugar beet, canola and sunflower seeds.<br />

<strong>Limpopo</strong> is well placed to exploit these crops and has several other<br />

advantages as a potential green economy:<br />

• Thousands of hectares of open space that could be traded in the<br />

carbon-trading market<br />

• High solar intensity<br />

• Relevant mineral deposits such as silica, which are useful in making<br />

solar products<br />

• A well-established and well-equipped agricultural sector, capable<br />

of producing crops for use as biofuel<br />

NGO Project 90x2030 has a demonstration site in <strong>Limpopo</strong>, showing<br />

off the latest technology in renewable energy. At Tshulu-HaMakuya,<br />

the 20-unit computer room of the Tshulu Trust is powered by a solar<br />

photovoltaic system, as is the lighting for the facility. More and more<br />

game lodges are moving off the grid through the use of solar panels.<br />

Mining group Exxaro is sponsoring the roll-out of alternative energy<br />

near its remote Tshikondeni mine east of Musina. The Alternative<br />

Energy Development Corporation (AEDC) has installed zinc air fuel cells<br />

in homes and in street lights. With this technology, oxygen and zinc<br />

combine in fuel cells to generate renewable energy.<br />

ONLINE RESOURCES<br />

African Biofuels: www.africanbiofuels.co.za<br />

CDM Africa Climate Solutions: www.cdmafrica.com<br />

Mapfura Makhura Incubator: www.biodieselmmi.co.za<br />

National Department of Energy: www.energy.gov.za<br />

Southern African Biofuels Association: www.saba.za.org<br />

Sustainable Energy Africa: www.sustainable.org.za<br />

61 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Water<br />

A <strong>Limpopo</strong> Water Master Plan will be tabled during <strong>2016</strong>.<br />

SECTOR INSIGHT<br />

<strong>Limpopo</strong> in the site of two of<br />

South Africa’s largest infrastructure<br />

projects - Mokolo<br />

Crocodile Augmentationn<br />

Project and Oliefants<br />

River Water Resources<br />

Dvelopment Project.<br />

A<br />

Provincial Water and Sanitation Summit has resolved that a<br />

<strong>Limpopo</strong> Water Master Plan has to be urgently developed.<br />

Floods have been known in parts of <strong>Limpopo</strong> (and they<br />

have been serious), but the more pressing threat is drought:<br />

a disaster area was declared in late 2015 in response to the latest<br />

prolonged shortage of water.<br />

National and provincial government set aside budgets for the<br />

provision of feed to livestock farmers. In addition to this emergency<br />

aid, downward revisions also have had to be made to schemes that<br />

include irrigation, such as the Fetsa Tlala programme.<br />

The province’s two most important economic sectors (mining<br />

and agriculture) depend on a steady and sustainable supply of water.<br />

Several <strong>Limpopo</strong> towns have struggled to supply clean water to<br />

residents, and this has led to tension between residents and municipal<br />

officials. In response, the National Minister of Public Works has put<br />

together a technical team to support the municipalities.<br />

<strong>Limpopo</strong>’s three distinct regions attract very different levels of<br />

rainfall: the escarpment (sub-humid with annual rainfall of more than<br />

700mm); semi-arid middle veld and Highveld; and the arid and semiarid<br />

Lowveld.<br />

The province’s rivers are also<br />

under threat from the damaging<br />

effects of the mining industry,<br />

power stations, chemicals used<br />

in agriculture and from sewage<br />

treatment in catchment areas.<br />

Opportunities exist in this sector<br />

for innovative solutions.<br />

The National Department of<br />

Water and Sanitation (DWS) has<br />

attached a figure of R570-billion<br />

to the amount of investment<br />

needed in South Africa’s water<br />

supply chain in the years to 2022.<br />

Water resources infrastructure<br />

alone is said to need R162-<br />

billion. <strong>Limpopo</strong> is the site of<br />

two of the biggest of these<br />

projects: the Mokolo Crocodile<br />

Augmentation Project (west)<br />

and the Olifants River Water<br />

Resources Development Project<br />

in the east.<br />

Each of <strong>Limpopo</strong>’s five district<br />

municipalities function as a Water<br />

Service Authority and the Lepelle<br />

Northern Water company has a<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

62


OVERVIEW<br />

strong presence in the central,<br />

eastern and southern parts of the<br />

province.<br />

North<br />

Parts of <strong>Limpopo</strong>’s most northern<br />

district are extremely dry.<br />

Surface water mainly originates<br />

in the mountainous areas and<br />

is regulated by several dams in<br />

the upper and middle reaches<br />

of the rivers. Over-exploitation<br />

of groundwater is a problem.<br />

An innovative water-catching<br />

project run by meteorology students<br />

of the University of Pretoria<br />

is providing a community in<br />

the Soutpansberg with clean<br />

drinking water.<br />

Instead of relying on tankers<br />

to bring water to their dry area,<br />

schoolchildren in the Tshiavha<br />

village collect water from giant<br />

sheets that trap the water that<br />

has gathered as fog. Threemetre-high<br />

nets set up around<br />

the school provide about 2 500<br />

litres per day.<br />

West<br />

The Mokolo Crocodile<br />

Augmentation Project is designed<br />

to supply water to Medupi,<br />

the new power station being built<br />

at Lephalale, and to the coal mining<br />

operations that will feed it. A<br />

pump station and a 45km pipeline<br />

between the site of the power<br />

station and the Mokolo Dam are<br />

being built by the Trans-Caledon<br />

Tunnel Authority.<br />

Mokolo Crocodile Consultants,<br />

a group of five consulting<br />

firms which includes Aurecon, is providing engineering services to<br />

this project.<br />

East and south<br />

When the Olifants River Water Resources Development Project is fully<br />

developed, it will be supplying water to 23 platinum mines. The De<br />

Hoop Dam is at the centre of the scheme.<br />

Water developments in the Sekhukhune district have not been<br />

restricted to the De Hoop Dam. Five water projects with 65 associated<br />

schemes had delivered other water infrastructure, including pipes to<br />

get water to Moutse from the Loskop Dam.<br />

A concerned group of water users (from mining, heavy industry and<br />

conservation circles) have formed the Olifants River Forum to monitor<br />

change in the big catchment area. The forum is funding a team of<br />

researchers from several universities and the Council for Scientific and<br />

Industrial Research (CSIR) to conduct tests on the quality of water and<br />

threats to the same in the upper reaches of the Olifants.<br />

Polokwane<br />

The Water and Sanitation Services branch of the Polokwane Municipality<br />

operates five water-purification plants and three sewage-purification<br />

plants. As part of its Regional Water Scheme programme, Polokwane provides<br />

water to the residents of the rural areas of Mothapo, Mothiba and<br />

Makotopong. A 600-kilolitre reservoir was built and new pipes were laid.<br />

The Capricorn District Municipality funds a water-testing laboratory<br />

on the campus of the University of <strong>Limpopo</strong>.<br />

Mocha Lab has been operating in Polokwane since 2008 and has<br />

the capability to provide services to the mining and engineering sector,<br />

as well as to water authorities.<br />

ONLINE RESOURCES<br />

<strong>Limpopo</strong> Department of Economic Development,<br />

Environment and Tourism: www.ledet.gov.za<br />

National Department of Water and Sanitation:<br />

www.dwa.gov.za<br />

Olifants River Forum: www.orf.co.za<br />

South African Association of Water Utilities:<br />

www.saawu.co.za<br />

Water Institute of South Africa: www.wisa.org.za<br />

Water Research Commission: www.wrc.org.za<br />

63 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

ICT and telecommunications<br />

Connecting rural areas is a priority for <strong>Limpopo</strong> authorities.<br />

SECTOR INSIGHT<br />

Ten schools are piloting an<br />

Offline Content Solution.<br />

• The <strong>Limpopo</strong> ICT Youth<br />

Conference was held in<br />

2015.<br />

• An ICT Centre of<br />

Excellence is to be<br />

established in <strong>2016</strong>.<br />

Connectivity is difficult to achieve in remote rural areas, and<br />

large parts of <strong>Limpopo</strong> are rural. One way of achieving<br />

higher connectivity is to focus on schools and libraries.<br />

The Universal Service and Access Agency of South Africa<br />

(USAASA) has as its brief to provide ICT services to public and private<br />

schools, hospitals and training colleges. <strong>Limpopo</strong> is one of five provinces<br />

that USAASA concentrates on with respect to school connectivity:<br />

more than R25-million has been spent since 2010 on this project and<br />

more than 400 smart devices distributed.<br />

Private telecommunications companies also have community responsibilities<br />

in terms of the National Development Plan. They must<br />

help connect under-serviced areas to the telecommunications and<br />

Internet networks.<br />

A National Library of South Africa (NLSA) project, supported by<br />

Vodacom, will connect about 300 community libraries via VSAT and<br />

Vodacom ADSL services. The project covers South Africa’s three most<br />

rural provinces – the North West, <strong>Limpopo</strong> and Mpumalanga.<br />

When national libraries started using an open-source system known<br />

as Library Information Management System (LIMS), it was a good opportunity<br />

to upgrade the more remote libraries. Meso ICT Solutions was<br />

the company used by Vodacom and the NLSA to roll out the project,<br />

which will also give community members in those areas better access<br />

to the Internet (including teachers<br />

and students). Each library has 14<br />

work stations and Vodacom can<br />

carry both fixed-line and satellite<br />

connectivity.<br />

The state is a big factor in the<br />

ICT sector, both in terms of its<br />

regulatory role, the incentives offered<br />

to companies and in terms<br />

of its own purchasing power<br />

through national departments<br />

and agencies.<br />

The State Information<br />

Technology Agency (SITA) supports<br />

a wide range of national<br />

and provincial departments and<br />

municipalities across the province,<br />

and is working on establishing<br />

a comprehensive provincial<br />

network. SITA played a role in the<br />

NLSA/LIMS project.<br />

SITA has a client base of more<br />

than 5 000 offices and offers services<br />

in WAN support, support<br />

of the provincial mainframe, ICT<br />

training and website development,<br />

among others. A SITA initiative<br />

to help all of South Africa’s<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

64


OVERVIEW<br />

teachers obtain laptops will have<br />

an impact on the sector.<br />

South African Vanguard<br />

of Technology (Savant) is a<br />

Department of Trade and Industry<br />

(dti) programme. It is the marketing<br />

and awareness programme<br />

for the South African ICT and<br />

electronics sector. The aim is to<br />

develop South African exports<br />

and to attract foreign investment.<br />

The National Department<br />

of Communications is responsible<br />

for the Independent<br />

Communications Authority of<br />

South Africa (ICASA, the regulator<br />

of communications, broadcasting<br />

and postal services), the SA<br />

Broadcasting Corporation (SABC),<br />

and three other agencies.<br />

The Telkom Foundation began<br />

supporting ICT at Manyangan<br />

High School and several others<br />

like it a decade ago. Schools in<br />

rural areas were given a wireless<br />

networked e-Learning<br />

Resource Centre consisting of<br />

20 computers, a server, a printer,<br />

all Microsoft-supplied software,<br />

insurance and a three-year maintenance<br />

plan. Internet access<br />

was included, powered by Vsat<br />

satellite technology.<br />

More than 800 young people<br />

attended the <strong>Limpopo</strong> ICT Youth<br />

Conference in 2015 where they<br />

and the owners and small and<br />

medium-sized ICT businesses<br />

shared ideas about the pitfalls<br />

and opportunities in the sector.<br />

An ICT Centre of Excellence will be<br />

established in <strong>2016</strong>, taking into account<br />

the input of the delegates.<br />

Alternative and innovative solutions<br />

are also being followed.<br />

Ten schools have been identified<br />

by the ICT Internet Connectivity<br />

Project and the national Department of Education to pilot the Offline<br />

Content Solution. Tirelo Bosha will pay R1.4-million towards this project.<br />

Tirelo Bosha is a public service improvement grant administered by the<br />

national Department of Public Service and Administration.<br />

The Technology and Human Resources for Industry Programme<br />

(THRIP) is a programme of the National Research Foundation and supports<br />

an average of 235 projects per year. THRIP funding totals around<br />

R150-million (with approximately R240-million from industry per year)<br />

and supports initiatives that use science to bring benefits to wider<br />

society. This can relate to boosting distant rural computer literacy (as<br />

in a project in the Eastern Cape which will have relevance to <strong>Limpopo</strong>)<br />

or, for example, to scientists working at the University of Venda who<br />

have received THRIP funding relating to soil research.<br />

Intermediate computer-literacy classes are being provided at some<br />

<strong>Limpopo</strong> schools by the Internet Service Providers’ Association (ISPA),<br />

and the CoZa Cares project of Uniforum SA. Maths Centre has received<br />

funding from the Citigroup Foundation to help it expand the Anglo<br />

American project for maths and science using specially developed<br />

software. ICT company Edukite Learning Services is the developer.<br />

The sponsorship includes digital tablets and projectors to be used in<br />

the training of teachers.<br />

ISPA runs courses for teachers in all parts of South Africa. Since<br />

2004, ISPA and Uniforum SA awarded a Super Teacher of the Year award<br />

to the educator who has best imparted their newly acquired IT knowledge<br />

to pupils and members of their community when they return<br />

from these courses. These <strong>Limpopo</strong> teachers and schools were winners<br />

in 2009 (Lesibe Jimmy Rawane, Thomo Primary School), 2010 (Melia<br />

Moeketsi, Maribe Primary), 2011 (Phuthi Ragophala, Pulamadibogo<br />

Primary), 2012 (Sadike Welheminah Kekana, Toronto Secondary) and<br />

2013 (Mokhudu Cynthia Machaba, Ngwanamago Primary School).<br />

ONLINE RESOURCES<br />

National Department of Communications: www.doc.gov.za<br />

National Department of Trade and Industry:<br />

www.thedti.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

Seda Technology Programme: www.seda.org.za<br />

South African Vanguard of Technology: www.savant.co.za<br />

Support Programme for Industrial Innovation: www.spii.co.za<br />

State Information Technology Agency: www.sita.co.za<br />

Technology and Human Resources for Industry Programme:<br />

htttp://thrip.nrf.ac.za<br />

Technology Innovation Agency: www.tia.org.za<br />

65 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


PROFILE<br />

Getting the<br />

message through<br />

Vodacom is a leading African mobile communication<br />

company providing a wide range of communication services including<br />

mobile voice, messaging, data and converged services to over 61-million customers.<br />

From our roots in South Africa, we have<br />

grown our mobile network business<br />

to include operations in Tanzania, DRC,<br />

Mozambique and Lesotho. The mobile<br />

networks cover a total population of approximately<br />

200-million people.<br />

Through Vodacom <strong>Business</strong> Africa (VBA) we also<br />

offer business managed services to enterprises in<br />

over 40 countries across the continent.<br />

Vodacom is majority owned by Vodafone<br />

(65% holding) one of the world’s largest mobile<br />

communications companies by revenue.<br />

Our Strategies<br />

What we need to do?<br />

This is everything we need to do boiled down into<br />

five strategies:<br />

• Deliver the best customer experience<br />

• Grow data, enterprise, new services and<br />

grow internationally<br />

• Make our processes and businesses more<br />

efficient<br />

• Build a diverse and talented team<br />

• Transform society and build stakeholder<br />

trust<br />

Values and Vision<br />

Our Purpose<br />

Connecting you, creating possibilities,<br />

changing lives.<br />

Why we exist?<br />

Our reason to get up in the morning: knowing<br />

that what we do has the potential to change things<br />

for the better, and that we have the opportunity<br />

to do things better every single day by innovating.<br />

Our Vision<br />

Best network, best value, best service.<br />

Where are we going?<br />

We’re focusing on making our vision real, specifically<br />

through our brand promise of best network, best<br />

value, best service and everything that goes into<br />

keeping our promise.<br />

Our Way<br />

Speed, simplicity and trust<br />

How we need to do it?<br />

The Vodacom Way is the antidote to bureaucracy;<br />

if something fails this test we find another solution.<br />

CONTACT INFO<br />

Physical address: 93 Biccard Street,<br />

Polokwane 0699<br />

Tel: +27 82 277 5001 | 082 277 5001<br />

Web: www.vodacom.co.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

66


Broadband Connect<br />

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C S I &<br />

YOUTH<br />

Vodacom staff packing<br />

food parcels for their<br />

67 minutes for Mandela Day<br />

Children at Madiphatlakgomo<br />

school with their Mandela<br />

Day food packs<br />

Vodacom, in partnership with<br />

Sapa Yopa bikers, built a<br />

wendy house for a charity<br />

organisation<br />

Vodacom was part of awarding <strong>Limpopo</strong>’s top Matric students


Vodacom brought easy learning<br />

to Bakenberg as part of their<br />

e-School portal<br />

Vodacom Foundation in<br />

partnership with Oprah Winfrey<br />

Foundation takes technology to<br />

Vele School at Gogogo Village<br />

in Vhembe District<br />

Vodacom, together with LEDET<br />

at Students for the Advancement<br />

of Global Entrepreneurship<br />

Stationery Drive at Glansheil<br />

Vodacom empowering the youth of<br />

Nkowankowa together with GTFM<br />

Vodacom, in partnership with<br />

Sapa Yopa bikers, dug a borehole<br />

for a charity organisation<br />

Students of Malusi High School<br />

at Avon Village experience<br />

easy learning through the<br />

Vodacom e-School portal<br />

Vodacom donated blankets<br />

during National Science Week


INTERVIEW<br />

Chris Lazarus: driving<br />

Vodacom <strong>Limpopo</strong><br />

Chris Lazarus is Vodacom’s dynamic and driven Managing<br />

Executive for the <strong>Limpopo</strong> region (home to 3.9-million<br />

customers) who is pushing the frontiers of the online<br />

revolution in <strong>Limpopo</strong>.<br />

Chris Lazarus, Managing<br />

Executive: <strong>Limpopo</strong><br />

BIOGRAPHY<br />

Before joining Vodacom, Chris<br />

Lazarus was Head of Content<br />

Solutions for I-Net Bridge until<br />

2005, when he joined Vodacom<br />

as Executive Head Data Sales.<br />

In 2009 he established the<br />

Public Sector division and then<br />

moved to Enterprise Products/<br />

Services. In 2011 he became<br />

Managing Executive Product/<br />

Services, managing the enterprise<br />

business product suite. In<br />

2013 he started the Emerging<br />

Markets division and in 2014 he<br />

became Managing Executive<br />

Gauteng Region and successfully<br />

turned around the regional<br />

channel engagement plans<br />

and increased growth in data<br />

revenue, 3G devices and LTE.<br />

He holds an MBA from Henley<br />

Management College, UK.<br />

Vodacom is investing hundreds of millions of rands into<br />

its network to get as many people as possible connected<br />

around the province. Where do you see the greatest changes<br />

and benefits for <strong>Limpopo</strong>?<br />

The investment is about rolling out<br />

more sites to ensure we provide<br />

more base station coverage to<br />

areas where we have gaps but<br />

also investing to ensure that our<br />

customers have a better voice<br />

and data experience. There is<br />

also investment in the underlying<br />

transmission to ensure we have<br />

sufficient capacity to cater for<br />

current and future growth.<br />

<strong>Limpopo</strong> is the first Vodacom<br />

region to deploy overhanging<br />

fibre using concrete poles. As more<br />

customers obtain smartphones<br />

and other smart devices, this<br />

investment will ensure a richer<br />

user experience.<br />

What motivated your move from Managing Executive for<br />

Gauteng to Managing Executive for <strong>Limpopo</strong>?<br />

The opportunity for me was to manage a region end-to-end, covering<br />

all aspects of our business. The exciting part that I am thoroughly<br />

enjoying is the network side, learning lots about our technologies and<br />

seeing the benefit to our customers. <strong>Limpopo</strong> has so many untouched<br />

business opportunities.<br />

You will find in <strong>Limpopo</strong> we do a couple of things a bit faster and<br />

some things we do uniquely. For example, our fibre using concrete<br />

poles along the side of the road. Now it’s cheaper to do, and faster. We<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

70


INTERVIEW<br />

literally lay the cables above ground as opposed to<br />

digging trenches. We finished the first fibre ring and<br />

now we are building three other rings. The demand<br />

for capacity in <strong>Limpopo</strong> is off the charts and it is also<br />

a migratory province, so for instance in December<br />

millions of people cross the border to come home.<br />

We have to ensure that customers returning from<br />

urban areas in Gauteng have the same or better user<br />

experience in rural areas. This is our goal even though<br />

we have made much progress with both 3G and 4G<br />

but the journey is not over, we still have work to do.<br />

PEOPLE IN LIMPOPO<br />

ARE STILL TALKING<br />

What are some of the innovations you<br />

have initiated?<br />

Vodacom is in the process of rolling out our CARE<br />

strategy, a programme that is going to transform the<br />

way we serve our customers, so here in <strong>Limpopo</strong> we<br />

have taken this to our retail stores as they deal with<br />

our customers daily. Every one of our Red stores has<br />

a process to record network complaints and then escalate<br />

to the regional office. Customers can also email<br />

us directly at limpopocustomercare@vodacom.co.za.<br />

Where are the opportunities for you in<br />

terms of the public sector?<br />

Given that our public sector wants to be more<br />

citizen-centric, we have a huge opportunity to use<br />

technology to enhance the lives of our people but<br />

also to make it easier for people to engage government.<br />

If we take one area such as education,<br />

Vodacom has already brought to market the 3G<br />

tablet, which retails for under R1 000. In addition,<br />

we have launched a free education portal. We have<br />

also partnered with the Department of Education<br />

to assist with managing the teacher centres around<br />

the country.<br />

In addition, Vodacom has invested in building the<br />

police car of the future to showcase what we are able<br />

to achieve using current technologies. We have also<br />

developed and implemented an application that is<br />

used by clinics and hospitals to manage their stock.<br />

What insight do you have in terms of how<br />

apps and cloud computing will increasingly<br />

become a game changer in terms of<br />

<strong>Limpopo</strong>’s development and growth?<br />

At all levels of the province we must firstly embrace<br />

both applications and cloud computing. I think we<br />

should encourage the young people in our province<br />

that have a passion for the development of applications.<br />

Cloud computing allows businesses and<br />

people in the province to access any content, even<br />

though it may not reside in the province. Small-tomedium<br />

businesses can have access to technologies<br />

that will make their businesses more efficient. Any<br />

business in <strong>Limpopo</strong> can now access the same tools<br />

as any other company across the country. There is<br />

one particular area (machine-to-machine) that is<br />

not receiving sufficient attention in the province,<br />

but we are working on changing this. This allows<br />

businesses to become more efficient and, in certain<br />

areas, even save money.<br />

What did you learn from your role overseeing<br />

the expansion of the distribution of<br />

the M-Pesa mobile payments platform in<br />

South Africa?<br />

The role you are referring to was not just about<br />

M-Pesa but also about balancing Vodacom’s distribution.<br />

We embarked on an exercise to understand<br />

what I refer to as the last mile of distribution, which<br />

is spaza shops. The first learning was developing<br />

71 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


52296-Prepaid Funeral - A1 Poster 2_rev02.indd 1<br />

<strong>2016</strong>/04/04 3:20 PM<br />

formal relationships with owners of these<br />

businesses, and this was not easy and was expensive.<br />

You have to be ready with the product<br />

and service you want to implement as keeping informal<br />

outlets updated is no easy task… and often<br />

they don’t understand the delays and so on.<br />

Vodacom<br />

Power to you<br />

What is most exciting thing for you about<br />

the big drive to add base stations and to<br />

connect sites with high-speed service?<br />

Adding more sites and increasing the performance<br />

of our network provides immediate benefit to our<br />

customers, and we see these benefits immediately.<br />

The vision is to provide people of <strong>Limpopo</strong> with<br />

the same level of connectivity as any other place<br />

in South Africa.<br />

What is the impact of this throughout the<br />

townships in <strong>Limpopo</strong>?<br />

We believe with certainty that our network overall<br />

is superior. We have more sites than any of our competitors<br />

and will continue to grow this. You can no<br />

longer stereotype and assume that our customers<br />

in the informal areas do not have access to high-end<br />

devices. They are already using Facebook, Twitter,<br />

WhatsApp and so on. In fact many of our customers<br />

use Twitter to inform Vodacom about network<br />

concerns they have from some of the rural areas.<br />

What have you seen as the greatest<br />

growth areas and major developments of<br />

which you are most proud during your 11<br />

years with Vodacom?<br />

The growth of 2G to 4G has to be a highlight. We also<br />

today market our own brand of Vodacom devices<br />

across 3G and LTE. The overall growth of data is<br />

amazing – people have adapted to new technologies<br />

so quickly and are using applications to perform so<br />

many things that they otherwise would not have<br />

done, or would have done differently.<br />

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It has been a bit hard from a personal perspective<br />

but in November I said to Shameel, our CEO,<br />

when he visited the region, that, after 10 years with<br />

Vodacom, this is probably the job with the most<br />

levels of satisfaction.<br />

The reason I feel this way is because I have almost<br />

complete autonomy and also, having been around<br />

for 10 years, my seniors know I will get stuff done.<br />

Overall it’s been really fulfilling. Another great positive<br />

is when you see the results – like any job, there’s<br />

nothing that beats the feeling when you have put the<br />

effort in, you’ve made your plan and implemented<br />

your strategy and you see it come to fruition. I don’t<br />

think anything beats that.<br />

You have been with Vodacom for a long<br />

time, so this opportunity must be a really<br />

interesting challenge for you?<br />

I’ve been with Vodacom for 11 years and they’ve<br />

been pushing me to consider a regional position,<br />

so this year I said to myself, “Let me give this a try.”<br />

The network has a huge responsibility for<br />

growth in <strong>Limpopo</strong> as it impacts on the<br />

lives and businesses of so many people.<br />

The vision for me is to leave <strong>Limpopo</strong> from a connectivity<br />

perspective in a better place than when<br />

I arrived. It is proven worldwide that access to<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

72


INTERVIEW<br />

the Internet has direct impact on improving the<br />

lives of people. This is no different for <strong>Limpopo</strong>.<br />

In addition to that, there are a number of<br />

unique aspects to how we operate in <strong>Limpopo</strong><br />

and what our market needs. For example, data usage<br />

is growing exponentially and we are still one<br />

of the fastest-growing data regions for Vodacom,<br />

even though we are coming off a smaller base.<br />

However, what I find fascinating is that voice has<br />

also been growing – so people in <strong>Limpopo</strong> are<br />

still talking. It’s a good thing and a bad thing.<br />

It’s good that people talk because we still make<br />

money from it, although not at the rate that we<br />

used to previously because there’s been so much<br />

of a reduction in the pricing, which most customers<br />

don’t believe but there has been, so that’s the<br />

one thing. And then the second thing is that we<br />

still have in the region of about four-million 2G<br />

devices on the network. Now that represents an<br />

opportunity – it’s an opportunity for customers<br />

to have a better experience, so we no longer roll<br />

out 2G –only base stations. Now we only roll out<br />

2G and 3G. Vodacom is pushing customers towards<br />

knowing the benefits of having improved<br />

technology at their fingertips in terms of data<br />

usage. We also educate customers on new 3G<br />

and LTE devices that range in price from R299<br />

to R1 399. You don’t have to go out and buy 2G<br />

phones because you’re scared that someone is<br />

stealing your data. Vodacom will make a substantial<br />

investment in customer education this year.<br />

How are you guys able to give work to<br />

SMMEs and what are the opportunities<br />

for businesses in <strong>Limpopo</strong>?<br />

There are three angles to the business we manage<br />

in <strong>Limpopo</strong>. The network is the underlying product,<br />

Consumer business relates to our retail customers<br />

and Enterprise business talks specifically to business<br />

customers and the public sector. On the network<br />

side there are tons of areas of opportunity, from the<br />

company that supplies the diesel to the company<br />

that has to survey the land and get permission from<br />

the local municipality to enable us to build a site,<br />

and the list goes on to areas such as maintenance.<br />

One of the companies that constructs sites for us<br />

in the region is called Boniswa, and it’s owned by<br />

an African black woman so I’m very proud of that<br />

relationship. She employs 150 people of which 75%<br />

are from Polokwane and has been so great that<br />

we’re one of the regions that made our accelerated<br />

site roll-out target. When you have suppliers<br />

who share your vision and passion to win then your<br />

job becomes easier. We give a lot of work to small<br />

and medium businesses and some of them are no<br />

longer small; they may have started off small but<br />

they’ve grown up and are flourishing, and that’s on<br />

the network side. We have in excess of 1 000 sites<br />

and 3.9-million customers to manage. Without the<br />

many small-medium businesses partnering with us,<br />

we would not be able to deliver to our customers.<br />

IF COMPANIES LIKE<br />

OURSELVES ARE<br />

NOT PUTTING IN THE<br />

INVESTMENTS IN RESOURCES<br />

AND INFRASTRUCTURE NOW,<br />

IN FIVE YEARS IT’S GOING TO<br />

BE TOO LATE.<br />

On the consumer side we have a massive distribution.<br />

We have 50 franchise stores in the province besides<br />

our national chain partners like PEP, Edgars, Game, etc.<br />

One of our local franchisees, Mohabi Mahape, is<br />

from Seshego. While he still owns the store there,<br />

he also owns 11 other stores including the store<br />

in the recently launched Mall of the South. So this<br />

thing has spread its tentacles, but underneath this<br />

whole <strong>Limpopo</strong> development is the fact that we are<br />

starting to have an influence on the greater business<br />

community. The company is also really committed<br />

to small/medium enterprise growth and Vodacom<br />

is really embracing the spirit of giving back to<br />

73<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


communities, not just<br />

through our foundation work<br />

but also through commercial<br />

activities.<br />

<strong>Limpopo</strong> has had challenges<br />

with education over the<br />

years. Is Vodacom doing<br />

anything to assist?<br />

We now offer a free education<br />

portal, and this is so important<br />

because education is one of the<br />

areas which all of us have to focus<br />

on if we want South Africa<br />

to go forward. <strong>Limpopo</strong> has had<br />

its challenges in the education<br />

system, but we’re getting closer<br />

to the schools and are engaging<br />

with them, showing them solutions that are now<br />

available. We can today run a simulated class environment<br />

between two towns, two provinces, to<br />

anywhere in the world, as when you buy a tablet or a<br />

smartphone from Vodacom, you are given access to<br />

our free education portal. You will be amazed how<br />

many people still don’t know about this, so we’ve<br />

got to spread this message about education. There<br />

are also many solutions we’re working on in the area<br />

of health, and for me those two areas are critical. We<br />

are going to put a lot more effort in on the education<br />

side because if there is one area that we can<br />

make a difference in this province, it’s education.<br />

What is your employment footprint?<br />

Vodacom employs 70 people here in <strong>Limpopo</strong>. Our<br />

50 franchise stores also employ people that reside in<br />

<strong>Limpopo</strong> as well as the 100 field agents that work<br />

across the province.<br />

What excites you about the <strong>Limpopo</strong> story?<br />

I think underlying the <strong>Limpopo</strong> story is that we can<br />

only go forward from where we are. We also have<br />

a young population who we think is capable of<br />

making positive contributions to the province. We<br />

also employ a few interns from the province at our<br />

offices and when I see the impact these young<br />

engineers are doing, I am confident that there is a<br />

brighter tomorrow for <strong>Limpopo</strong>.<br />

You also cannot ignore the investment being<br />

made by government and the private sector –this<br />

too is ensuring we continue to grow and harness<br />

the natural resources we have. All this investment<br />

and growth has a direct link to the investment in<br />

telecommunications.<br />

WE STILL HAVE IN THE<br />

REGION OF FOUR-MILLION<br />

DEVICES ON THE<br />

NETWORK<br />

We believe that in three to five years <strong>Limpopo</strong> is<br />

going to be better, hence Vodacom has decided<br />

to be in the province and continue to expand the<br />

network. As for the four-million 2G devices, that’s another<br />

major opportunity, but remember that people<br />

are not going to go backward to the old Nokia 105,<br />

they are going to leap forward. I am not saying those<br />

phones won’t be around, but the new customers in<br />

particular are going to leap forward and I think that,<br />

through this improved experience for customers,<br />

people will be able to do things more efficiently.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong> 74


INTERVIEW<br />

things. There are lots of people<br />

who are not yet using Facebook<br />

and who have probably never<br />

heard of WhatsApp, so for me the<br />

upside is great.<br />

WE’RE PUTTING IN REAL AND<br />

PROPER INFRASTRUCTURE<br />

BECAUSE WE BELIEVE IN<br />

LIMPOPO AND WE ARE<br />

READY TO PARTNER WITH<br />

CONSUMERS AND BUSINESSES<br />

Describe <strong>Limpopo</strong>’s shortto<br />

medium-term growth<br />

prospects?<br />

Vodacom is going to continue to<br />

invest some R220-million into the<br />

network this year. We aim to cover<br />

all people in the province with 3G<br />

whilst we will also roll out LTE to<br />

keys areas.<br />

While <strong>Limpopo</strong> is not uniquely affected<br />

by the national economic<br />

pressures, we expect the investment<br />

projects like Lephalale to<br />

continue.<br />

Our view of the province is<br />

definitely not short term but we will this year seek<br />

out innovative ways of expanding the network by<br />

constructing sites that are less costly so we can do<br />

more. We’re putting in real and proper infrastructure<br />

because we believe in <strong>Limpopo</strong> and we are ready to<br />

partner with consumers and businesses, so that we<br />

make <strong>Limpopo</strong> a better place that can improve the<br />

lives for the people of the province.<br />

The next generation are going to realise that they<br />

can sit anywhere and manage their business and<br />

communicate with their clients and suppliers. They<br />

don’t have to go to the tender office in the future<br />

as these documents and the information would be<br />

downloaded off a website, even though they are in<br />

the middle of a rural district. You and I might take<br />

such facilities for granted from where we are sitting<br />

in the fancier parts of South Africa, yet in many other<br />

places they have still not heard of some of these<br />

CONTACT INFO<br />

Physical address: 93 Biccard Street,<br />

Polokwane 0699<br />

Tel:+27 82 277 5000 | 082 277 5001<br />

Web: www.vodacom.co.za<br />

75<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Tourism<br />

The Kruger National Park, which is partly situated in <strong>Limpopo</strong>, is a favourite destination for<br />

domestic and foreign tourists.<br />

SECTOR INSIGHT<br />

The Marula Festival is growing<br />

in popularity every year.<br />

• Tourism contributes about<br />

3% to South African GDP.<br />

• Golf tourism is on the rise<br />

in <strong>Limpopo</strong>.<br />

• <strong>Limpopo</strong> is home to two<br />

World Heritage Sites,<br />

Mapungubwe Heritage<br />

Site and Makapans Valley.<br />

The Kruger National Park is the undisputed jewel in <strong>Limpopo</strong>’s<br />

tourism crown, but there are several other sectors that also offer<br />

major opportunities for investment and employment.<br />

The South African Golf Tourism Association says that up to 10% of<br />

visitors to the country are attracted by its golf courses, and <strong>Limpopo</strong>’s<br />

offering has been extended and improved in recent years. At the highend<br />

of the luxury offering are the Zebula Golf Estate and Spa (west of<br />

Bela-Bela) and the Legend Golf and Safari Resort, which has the single<br />

most dramatic golf hole in the world: a par three where golfers tee<br />

off from the top of a mountain and take aim at a green located on the<br />

plateau below, shaped like the African continent.<br />

The growth of the Marula Festival, held annually in February in<br />

Phalaborwa, caters more to the local market, although guests from<br />

Cuba, Venezuela, Mozambique and Namibia were spotted at the latest<br />

gathering. At least 13 000 litres of marula beer were brewed by the 13<br />

co-operatives that were on duty, and more than 14 000 people turned<br />

up for the outdoor music concerts that were a feature of the festivities.<br />

<strong>Limpopo</strong> Province has many varied tourism assets that include the<br />

bare bushveld of the north, misty mountains in the central highlands,<br />

hot springs, a unique cycad forest, great golf courses and the northern<br />

Kruger National Park. There are numerous private game reserves and a<br />

large number of provincial game<br />

and nature reserves.<br />

In 2015 the provincial government<br />

committed itself to enhancing<br />

the value of <strong>Limpopo</strong>’s<br />

two World Heritage Sites,<br />

Mapungubwe Heritage Site and<br />

Makapans Valley. This is also a priority<br />

programme in the National<br />

Tourism Sector Strategy.<br />

Adventurous visitors can<br />

choose from off-road biking, hunting,<br />

elephant rides and tough 4x4<br />

trails. A vast array of different cultures<br />

extend from the Rain Queen<br />

and her people in the central districts,<br />

to the myth-inspired art<br />

of the Venda in the north, to the<br />

bright geometric house designs<br />

of the Ndebele people in the<br />

Sekhukhune district.<br />

Although most of the province’s<br />

resorts and lodges remain<br />

in private hands, the province<br />

has three national parks, and<br />

the provincial government runs<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

76


OVERVIEW<br />

54 nature reserves of different<br />

types. The combined land area of<br />

<strong>Limpopo</strong>’s national, provincial and<br />

private game and nature reserves<br />

is 3.6-million hectares.<br />

According to the <strong>Limpopo</strong><br />

Premier’s office, the tourism<br />

sector employs in the region of<br />

22 414 people. The <strong>Limpopo</strong><br />

Tourism Agency is pursuing a<br />

multi-national tourism strategy,<br />

with the <strong>Limpopo</strong>-Zambezi<br />

brand initiative one example of<br />

new approaches to marketing the<br />

province.<br />

Hotels and casinos<br />

Tsogo Sun runs the Garden Court<br />

Polokwane, which has 180 rooms<br />

ranging from executive suites to<br />

family rooms.<br />

The Protea Hotel group has<br />

three hotels in the province. In<br />

the capital city of Polokwane, the<br />

Protea Hotel Landmark has 80<br />

rooms and six conference venues,<br />

while just outside the city is the<br />

Protea Hotel Ranch Resort, where<br />

guests can walk with lions. The<br />

hotel is on a 1 000-hectare nature<br />

conservancy and specialises in catering<br />

for weddings. In Mokopane,<br />

the Protea Hotel The Park has 125<br />

rooms and can cater for up to 400<br />

conference delegates. The threestar<br />

hotel recently added 25 selfcatering<br />

units.<br />

The Rezidor Hotel Group will<br />

open a Park Inn by Radisson in<br />

Polokwane in <strong>2016</strong>. This is the<br />

group’s third hotel in South Africa,<br />

with the others located in Cape<br />

Town and Johannesburg.<br />

The new hotel will be very<br />

close to the Peter Mokaba sports<br />

complex and near the local golf course. The Rezidor Hotel Group intends<br />

opening hotels in each of South Africa’s nine provincial capitals and the<br />

biggest economic centres.<br />

The Fusion Boutique Hotel in the provincial capital offers five-star<br />

quality in 30 en-suite rooms and two exclusive suites. Sun International<br />

runs the Meropa Casino and Entertainment World near Polokwane. In<br />

the province’s northern regions at Thohoyandou, there is the Khoroni<br />

Hotel, Casino and Convention Resort. This is a Peermont venture and<br />

there is a three-star Peermont Metcourt Hotel in the complex.<br />

Three new casino licences have recently been awarded in <strong>Limpopo</strong>.<br />

One of the recipients was Peermont Global Resorts for the official launch<br />

and operation of the Thaba Moshate Casino, Hotel and Conference<br />

Centre in the Greater Tubatse Local Municipality. During construction<br />

751 people were employed and a further 180 permanent jobs are<br />

expected when the casino is fully operational.<br />

There are now 237 limited pay-out gambling machines in the province,<br />

and licences of one sort or another generated R50-million for the<br />

provincial government in 2015.<br />

Nature<br />

The National Department of Tourism is facilitating the upgrade of a<br />

lodge in the Vhembe District. Wisani Lodge is about 20 minutes drive<br />

from the Punda Maria gate of the Kruger National Park and is in an<br />

area particularly rich in birdlife. This community-owned project is in<br />

need of a private investor with about R10-million to invest in upgrading<br />

the lodge’s six chalets and adding another 14. A master plan and<br />

environmental impact assessment report already exists.<br />

A number of resorts in a variety of climatic regions fall under the<br />

control of the provincial body branded as <strong>Limpopo</strong> Wildlife Resorts.<br />

77 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Fourteen of the province’s resorts have been targeted for refurbishment,<br />

creating 320 temporary and 120 permanent jobs. Annual revenue<br />

of R10-million is expected to be gained from these revamped resorts,<br />

which include these facilities in the Waterberg:<br />

• Nylsvley Birding Lodge, a registered RAMSAR wetland area<br />

• D’nyala Game Lodge<br />

• Mokolo Dam<br />

• Nwanedi Resort (Vhembe Region)<br />

• Modjadji Nature Resort (Mopani Region)<br />

• Blouberg Nature Reserve (Capricorn Region)<br />

• Tambotie River Lodge (Sekhukhune Region)<br />

Private game reserves, resorts and lodges<br />

The area adjacent to the Kruger National Park is particularly rich in<br />

private game reserves, some of which are regarded as among the<br />

finest luxury tourist offerings in the world. The Sabi Sands Game<br />

Reserve has several accommodation options within its 65 000 hectares,<br />

ranging from the luxurious to the ultra-luxurious. Like the Manyaleti<br />

Game Reserve to its north, Sabi Sands effectively forms the western<br />

boundary of the Kruger Park, with animals free to roam in and out of<br />

the private reserves.<br />

Legend Lodges, Hotels and Resorts has three properties in <strong>Limpopo</strong>.<br />

Both Entabeni Safari Lodges and the Legend Golf & Safari Resort are<br />

located within the Entabeni Safari Conservancy in the Waterberg district.<br />

The exclusive Jackalberry Lodge (16 guests at a time) lies to the<br />

east within the Thornybush Game Reserve which is a reserve of 10 500<br />

hectares of pristine bush just outside the Kruger National Park.<br />

Forever Resorts encompass the warm water springs of the southern<br />

Waterberg (Warmbaths at Bela-Bela), the exotic baobab trees of the<br />

north (Tshipise Resort), the adventurous offerings of the Blyde River<br />

Canyon (Swadini Resort) and the true bushveld experience on the edge<br />

of the Kruger National Park (Phalaborwa Safari Park at Phalaborwa Gate).<br />

All but the latter of these resorts have conference facilities ranging from<br />

130 to 700 delegates.<br />

Tourism routes and clusters<br />

The Bush to Beach Tourism Route covers sites and sights between<br />

Phalaborwa and the east coast of Mozambique, an example of<br />

<strong>Limpopo</strong>’s successful partnership with a neighbouring country. A<br />

grant of more than R600 000 from the <strong>Limpopo</strong> Local Economic<br />

Development programme aims to link the poorer rural communities<br />

along the route with the more mainstream economic nodes. Open<br />

Africa is the lead agent in developing community tourism.<br />

From game reserves in <strong>Limpopo</strong><br />

(including the Kruger National<br />

Park) to the beaches of Xai-Xai in<br />

Mozambique, the route has been<br />

supported by private operators<br />

and investors and therefore is<br />

able to offer excellent products<br />

and services to complement the<br />

natural scenery.<br />

The Bush to Beach<br />

Tourism Route is one of several<br />

such routes in the province,<br />

including:<br />

• Kruger to Canyon, linking<br />

Phalaborwa to the Blyde<br />

River Canyon through the<br />

Kruger National Park<br />

• Seraki Blouberg, in the<br />

Blouberg mountain range, including<br />

two nature reserves<br />

and encompassing the land<br />

of the 160 000 people living<br />

in 1<strong>17</strong> traditional settlements<br />

• Land of Legends, in the land<br />

of the VhaVenda (northern<br />

<strong>Limpopo</strong>). Thohoyandou is<br />

the hub for exploring the area<br />

around the Soutpansberg<br />

mountain range that contains<br />

more than 500 species<br />

of trees. Features include the<br />

sacred sites of Lake Fundudzi,<br />

the Thathe Vondo Forest<br />

and the Phiphidi Waterfall. A<br />

3 000-year-old baobab, 43<br />

metres around, is found near<br />

Sagole Spa.<br />

Other tourism routes in the<br />

province include: the African<br />

Ivory Route, the Golf Route,<br />

the <strong>Limpopo</strong> Valley Route,<br />

the Mapungubwe Route, the<br />

Ribolla Open Africa Route, the<br />

Soutpansberg-<strong>Limpopo</strong> Birding<br />

Route, the Valley of the Olifant<br />

Route and the Waterberg<br />

Biosphere Experience.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

78


OVERVIEW<br />

Outdoor pursuits<br />

National parks: The Kruger<br />

National Park covers nearly<br />

20 000 square kilometres and attracts<br />

more than a million visitors<br />

annually. It has six ecosystems,<br />

1 982 species of plants, 5<strong>17</strong> species<br />

of birds and 147 species of<br />

mammals – including each of the<br />

“Big Five”: lion, leopard, African<br />

elephant, African buffalo and<br />

rhinoceros.<br />

The Marakele National Park<br />

is situated on the Waterberg escarpment<br />

in the south-west of<br />

the province, relatively near to<br />

Gauteng. The Sterkstroom River<br />

runs through it and it is home to<br />

elephant, rhino and rare vultures.<br />

Adventure tourism: The<br />

mountains of the Waterberg, the<br />

Soutpansberg and the northern<br />

reaches of the Drakensberg offer<br />

opportunities for abseiling, caving,<br />

kloofing and rock-climbing.<br />

White-water rafting and tubing<br />

are other popular activities, especially<br />

in the <strong>Limpopo</strong> Valley and<br />

in the Olifants and Blyde canyons<br />

in the east of the province.<br />

Mountain biking is a favourite<br />

pastime in the Magoebaskloof<br />

area, while quad-biking can<br />

be found in several parts of<br />

the province.<br />

Hunting: The centre of hunting is the north-western town of Lephalale,<br />

with other northern towns like Alldays, Vivo, Musina and Dendron near<br />

to private game farms on which hunting is undertaken. This lucrative<br />

activity is strictly controlled by the Professional Hunters’ Association<br />

(PHA), with certain restrictions in place to protect the long-term future<br />

of the environment. The PHA estimated the value of the industry in 2010<br />

at R7.6-billion. A Thabazimbi game auction in 2012 achieved a turnover<br />

of R69.8-million, but the individual price achieved in 2009 for a single<br />

buffalo bull (R3.4-million) is an indication of the potential of this market.<br />

Birding: The Blouberg Nature Reserve is an excellent site for Cape<br />

Vultures, containing one of the largest breeding colonies. Four birding<br />

routes criss-cross the province, illustrating the diversity of birds<br />

found in the province’s varied terrain. More than 600 bird species have<br />

been recorded.<br />

ANNUAL EVENTS<br />

<strong>Limpopo</strong> Marula Festival, Phalaborwa (February)<br />

Polokwane Show and Music Festival (March)<br />

Kiwifruit Festival, Magoebaskloof (April)<br />

Zion Christian Church gathering, Moria (Easter)<br />

Thabazimbi Tourism & Game Expo. Potato Festival, Vivo (May)<br />

Ellisras Bushveld Festival. Polokwane Arts Festival (June)<br />

Musina Show (July)<br />

Oppikoppi, music festival, Northam. Trout Festival, Haenertsburg<br />

(August)<br />

Magoebaskloof Spring Festival (September)<br />

Biltong Festival, Mokopane (October)<br />

Mapungubwe Arts and Cultural Festival, Polokwane (December)<br />

ONLINE RESOURCES<br />

<strong>Limpopo</strong> Department of Economic Development,<br />

Environment and Tourism: www.ledet.gov.za<br />

<strong>Limpopo</strong> Tourism and Parks: www.golimpopo.com<br />

<strong>Limpopo</strong> Wildlife Resorts: www.lwr.co.za<br />

Open Africa. www.openafrica.org<br />

Polokwane Show: www.polokwaneshow.co.za<br />

South African Golf Tourism Association: www.sagta.co.za<br />

South African National Parks: www.sanparks.co.za<br />

South African Tourism: www.southafrica.net<br />

Tourism Enterprise Partnership:<br />

www.sahiddentreasures.co.za<br />

Tourism Grading Council of South Africa:<br />

www.tourismgrading.co.za<br />

79 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Banking and financial services<br />

<strong>Limpopo</strong> is a rural province and so the challenge of getting formal banking services to the<br />

population are greater than in most other provinces.<br />

SECTOR INSIGHT<br />

Farmers can get access to finance<br />

through NTK and Afgri.<br />

• Capitec has massively<br />

expanded its <strong>Limpopo</strong><br />

branch network.<br />

• Most of South Africa’s<br />

banks have linked up with<br />

cellphone companies.<br />

The “Big Four” banks–Nedbank, Standard Bank, Absa and FNB<br />

are active in <strong>Limpopo</strong> province.<br />

Relative newcomer in the retail banking sector, Capitec, seems<br />

to be working harder than most on building infrastructure in<br />

<strong>Limpopo</strong>. In 2012 the bank had 40 branches in the province; as of March<br />

<strong>2016</strong> there were 59 branches/ATMS. This included the small town of<br />

Swartklip (population 3 5<strong>17</strong>, according to Wikipedia), although there<br />

is a mine in the area. Capitec is clearly not convinced that cellphones<br />

are the only way to increase its client base.<br />

In the same month Capitec came out top of the world in a new<br />

global banking survey (Bank Quality Ratings) compiled by international<br />

banking advisory group Lafferty. In 2015 the bank had 6.7-million<br />

clients, up from 3.7-million just three years earlier, and it has 11 000<br />

employees.<br />

The two most active agricultural companies in <strong>Limpopo</strong> are both<br />

registered to participate in the financial sector. NTK, a subsidiary of the<br />

Free State-based VKB, has access to lending for farmers and insurance<br />

products. Afgri offers the same services under the brand Unigro, and it<br />

has another service called Gro Capital Financial Services, which offers<br />

more sophisticated products such as trade finance, foreign exchange<br />

and currency and interest rate hedging.<br />

<strong>Limpopo</strong> has its own bank,<br />

VBS Mutual Bank, which grew<br />

out of the Venda Building Society<br />

and operates mainly in the northern<br />

parts of the province. The<br />

Public Investment Corporation<br />

holds 34% equity. The head office<br />

is in Makhado and the credit<br />

department operates out of<br />

Thohoyandou.<br />

Reaching the unbanked<br />

Finscope’s 2014 survey of South<br />

African banking and financial<br />

surveys shows that between<br />

2004 and 2014 a remarkable<br />

eight-million people were connected<br />

to the financial system<br />

in some way. Overall, the<br />

“financially included” reached<br />

31.4-million (up from <strong>17</strong>.7-million<br />

in 2004). In a category called<br />

“formally served” which includes<br />

services other than formal banks<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

80


OVERVIEW<br />

with branch networks, the percentage<br />

of South Africans so<br />

served grew from 50% to 80%.<br />

In the “banked” category (more<br />

traditional but including new devices),<br />

the percentage grew from<br />

46% to 75%.<br />

With cellphone access in that<br />

time having grown from 42% to<br />

90%, one would expect that to<br />

have been the main reason for<br />

this growth, but that is not the<br />

case. James Francis, writing for<br />

Brainstorm, points out that of<br />

the nine-million South Africans<br />

who use mobile money, only 3%<br />

fall in the LSM 1-4 category (ie,<br />

poorer members of the population).<br />

He writes that “mobile<br />

money in South Africa has been<br />

catastrophic”. However, the South<br />

African banking sector’s excellent<br />

infrastructure (plus the efforts of<br />

the Big Four and Capitec to reach<br />

out to new markets) has made up<br />

for this failure.<br />

Banks and cellphone companies<br />

continue to believe that<br />

they need one another. Vodacom<br />

and Bidvest are working on the<br />

mobile money M-Pesa scheme,<br />

Standard Bank and MTN collaborate<br />

on mobile banking and<br />

there have been recent moves<br />

linking Old Mutual and Telkom,<br />

and Sanlam and African Bank.<br />

(The “good” African Bank that is,<br />

with the bank having been split<br />

up into two entities after taking<br />

on too much unsecured debt).<br />

Sifiso Skenjana has noted in the<br />

Sunday Times that African Bank<br />

still has 400 branches and 150 000<br />

people per month going through<br />

these branches, so this represents<br />

a huge potential market for a<br />

financial services company.<br />

Telkom is apparently hoping that its link-up with Old Mutual will prove<br />

attractive to customers wanting funeral insurance.<br />

Skenjana also points out that South Africa has a ‘stokvel’ (savings club)<br />

market valued at R44-billion, and Sanlam recently launched new products<br />

aimed at tapping into that market.<br />

Among other recent innovations designed to reach the unbanked<br />

were Teba Bank’s initiative that allows customers to deposit money at<br />

supermarkets, Pick n Pay Go Banking (a division of Nedbank), the fact that<br />

70% of Absa’s new ATMs (400 in one year) were visited in poorer areas and<br />

the launch of two mobile banks, FNB also created mobile branches and<br />

most of Standard Bank’s new sites were planned for townships (Finscope).<br />

Absa’s partnership with Thumbzup allows shops to accept card payments<br />

with smartphones and tablets. Introduced in 2012, the device<br />

turns phones into terminals. In the same year, Absa took over Edcon’s<br />

card portfolio, massively increasing the bank’s reach (Edcon brands<br />

include Edgars, CNA and Jet).<br />

Absa’s Entry Level and Inclusive Banking (Elib) branches have proved<br />

popular, accounting for an increasingly high percentage of the bank’s<br />

loans, despite still representing quite a small number of actual branches.<br />

Nedbank has Approve-it, which allows customers to accept or<br />

reject an Internet transaction by cellphone.<br />

FNB has a wide range of cellphone-banking options and a Facebook<br />

application whereby cellphone vouchers can be posted on the socialnetworking<br />

site. The eWallet application converts the voucher into<br />

cash or airtime.<br />

Standard Bank’s community-banking initiative offers a low-cost<br />

cellphone-banking service. Retailers can act as agents for the bank,<br />

even in remote rural areas. Shops such as Shoprite, Pep and Spar are<br />

connected, as are certain spazas.<br />

Ubank is owned by a trust that is managed by the Chamber of<br />

Mines and the National Union of Mineworkers (NUM). It has about 100<br />

branches and an important presence in <strong>Limpopo</strong> because of its strong<br />

focus on the mining sector. Ubank has about half-a-million clients.<br />

ONLINE RESOURCES<br />

Banking Association South Africa: www.banking.org.za<br />

Financial Services Board: www.fsb.co.za<br />

Institute of Bankers in South Africa: www.iob.co.za<br />

National Credit Regulator: www.ncr.org.za<br />

Office of the Auditor-General of South Africa: www.agsa.co.za<br />

Ombudsman for Banking Services: www.obssa.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />

81 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Development finance and<br />

SMME support<br />

Mining supply chains can boost SMMEs in <strong>Limpopo</strong>.<br />

SECTOR INSIGHT<br />

Seda’s jewellery and biogas<br />

incubators are supporting<br />

entrepreneurship.<br />

• The South African Bureau<br />

of Standards (SABS) is<br />

helping small business<br />

develop good products.<br />

• Anglo American’s Zimele<br />

initiative has six funds to<br />

support SMMEs.<br />

There are a number of bodies that support small, medium<br />

and micro enterprises in <strong>Limpopo</strong>, and development-finance<br />

institutions are making it easier for new businesses to start up.<br />

The Small Enterprise Development Agency (Seda) is a<br />

subsidiary of the National Department of Trade and Industry (dti) and<br />

is one of the most active agencies in supporting entrepreneurs. Seda is<br />

not a financial agency, focussing rather on training and administrative<br />

support, although the agency will help small-medium and microenterprises<br />

(SMME) in getting in touch with financial bodies.<br />

The Seda <strong>Limpopo</strong> Jewellery Incubator (SLJI) develops entrepreneurship<br />

among jewellers in <strong>Limpopo</strong>. In the south-east of the province<br />

the Biofuels Incubator promotes skills in that important sector.<br />

In 2014/15, Seda trained 696 business people in skills they need and<br />

the support for the national incubator programme created 1 963 jobs.<br />

Seda has initiated a national programme designed to make cooperatives<br />

and jointly owned enterprises stronger. As part of the<br />

Cooperatives and Community Public Private Partnership (CPPP)<br />

programme, Seda is supporting a project in Tarentaal.<br />

A new initiative on the part of the <strong>Limpopo</strong> Department of<br />

Economic Development, Environment and Tourism (LEDET) trains<br />

women in working with and developing products for the textile and<br />

clothing sector. The aim is to see the establishment of home-based<br />

enterprises in rural areas and townships, as well as co-operatives.<br />

The construction by the provincial government of market stalls<br />

is aimed at supporting small-scale farmers and traders. Market stalls<br />

have been erected in Mopani<br />

District and will be put up in Elias<br />

Motsoaledi Local Municipality<br />

in the Sekhukhune District and<br />

Molemole Local Municipality in<br />

the Capricorn District.<br />

In <strong>2016</strong> the national<br />

Department of Small <strong>Business</strong><br />

Development will jointly host a<br />

<strong>Limpopo</strong> Province SMME summit,<br />

which will also deal with issues relating<br />

to co-operatives. One of the<br />

best ways of supporting SMMEs<br />

in <strong>Limpopo</strong> is through the supply<br />

chain for the province’s mines.<br />

The provincial Premier has challenged<br />

mines to achieve a 20%<br />

SMME procurement target.<br />

A private initiative that has<br />

used the supply chain to extraordinarily<br />

good effect in creating<br />

employment is Anglo American’s<br />

Zimele. It has launched more<br />

than 1 800 businesses with a<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

82


OVERVIEW<br />

combined annual turnover approaching<br />

R6-billion and employment<br />

numbers rising to 38 000.<br />

Zimele has established 29 small<br />

business hubs in areas such as<br />

Mokopane and Burgersfort.<br />

Quality issues in the SMME<br />

sector in <strong>Limpopo</strong> are being<br />

addressed through the support<br />

of the South African Bureau of<br />

Standards (SABS), which has undertaken<br />

to help SMMEs ensure<br />

that their products are up to<br />

scratch. Similarly, Productivity SA<br />

is involved in <strong>Limpopo</strong>: in 2014<br />

Ximambane Brickmaking Cooperative<br />

won the Productivity<br />

SA provincial award.<br />

The city of Polokwane was<br />

South Africa’s fastest-growing<br />

urban area between 2005 and<br />

2010, with a growth rate that<br />

was higher than 5%. The South<br />

African Cities Network study<br />

that came to this conclusion also<br />

noted that further research was<br />

needed to establish the reasons,<br />

but a growing economy is a good<br />

incubator for entrepreneurship.<br />

The services sector inevitably<br />

grows as cities grow.<br />

According to research done<br />

by Absa, SMMEs were supporting<br />

60% of the country’s employable<br />

population in 2011, against a<br />

figure of just 18% in 1998.<br />

Finance<br />

The LEDET approved about R20-<br />

million in 2014 in financing youth<br />

businesses in the province. In<br />

presenting his 2015/16 budget,<br />

The <strong>Limpopo</strong> MEC for Economic<br />

Development, Environment<br />

and Tourism, Seapora Sekoati,<br />

pledged R30-million to support co-operatives and an additional<br />

R80-million for SMME debt and equity financing and R10-million for<br />

non-financial support. This programme is a joint venture with various<br />

national state-owned enterprises, which all have a presence in<br />

<strong>Limpopo</strong>: the Small Enterprise Development Agency (an allocation<br />

of R10.3-million for non-financial support to SMMEs and cooperatives);<br />

Small Enterprise Finance Agency (R45-million for SMME financial<br />

support); and the Industrial Development Corporation, (which normally<br />

spends about R400-million in <strong>Limpopo</strong>). The IDC’s annual overall<br />

budget for financing is R20-billion.<br />

The IDC often takes shareholdings in companies to provide the<br />

capital required for these companies to scale up production or to offer<br />

new products. Some 48% of the 45 900 jobs created or saved by IDC<br />

initiatives are created in rural areas.<br />

<strong>Limpopo</strong> projects attracting the funding support of the IDC include<br />

an Nguni-cattle breeding scheme, a new hospital in Lebowakgomo,<br />

the development of a ferrochrome smelter and a facility for making<br />

coking coal briquettes.<br />

The Development Bank of Southern Africa (DBSA) is another major<br />

funder of public projects. It announced in 2012 that it planned to invest<br />

heavily in public health (R20-billion), water, sanitation and energy<br />

(R40-billion) and transport infrastructure (between R30-billion and<br />

R50-billion).<br />

All of the major banks have SMME offerings. Absa Bank’s SME Fund is<br />

driven by its Small <strong>Business</strong> Division, Standard Bank runs a Community<br />

Investment Fund and Nedbank offers an enterprise development<br />

product for businesses with turnovers of up to R35-million. The commercial<br />

division of FNB has sections that deal with Start-up Funding<br />

and BEE Funding.<br />

<strong>Business</strong> Partners disbursed R966.2-million in SME funding in the<br />

2015/16 financial year.<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Partners: www.businesspartners.co.za<br />

Development Bank of Southern Africa: www.dbsa.org<br />

Industrial Development Corporation: www.idc.co.za<br />

Land and Agricultural Development Bank of South Africa:<br />

www.landbank.co.za<br />

<strong>Limpopo</strong> Department of Economic Development,<br />

Environment and Tourism: www.ledet.gov.za<br />

National Empowerment Fund: www.nefcorp.co.za<br />

Small Enterprise Development Agency: www.seda.org.za<br />

Small Enterprise Finance Agency: www.sefa.co.za<br />

Zimele: www.anglozimele.co.za<br />

83 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


INTERVIEW<br />

Seda <strong>Limpopo</strong><br />

Koenie Slabbert is the Provincial Manager for Seda<br />

<strong>Limpopo</strong>, which provides business development<br />

and support services for small enterprises.<br />

Koenie Slabbert<br />

BIOGRAPHY<br />

Koenie Slabbert is the Provincial<br />

Manager of Seda <strong>Limpopo</strong>,<br />

having previously been<br />

the Chief Operations Officer<br />

of Seda’s Enterprise Development<br />

Division. His previous<br />

work experience includes being<br />

responsible for implementing<br />

the South African government’s<br />

national manufacturing<br />

programme in <strong>Limpopo</strong>, as well<br />

as being the General Manager<br />

and an Industrial Advisor for<br />

Limac, assisting and developing<br />

small and medium enterprises<br />

in the manufacturing sector in<br />

<strong>Limpopo</strong> province.<br />

What is Seda <strong>Limpopo</strong>’s competitive advantage for your<br />

target market?<br />

The scope of our work is non-financial support in all sectors through<br />

the entire business life-cycle (360-degree). Our competitive advantage<br />

is our ability to comprehensively diagnose businesses and ideas in<br />

order to provide holistic guidance towards sustainability and growth<br />

interventions in all stages of business, from informal, survivalist, micro,<br />

small to medium businesses. Secondly, to bring expertise through<br />

seasoned professionals to enterprises which, under normal circumstances,<br />

would not have afforded or realised the value thereof. Seda<br />

provides business development services to small and medium enterprises<br />

throughout the province, with a network of branch offices in<br />

all five districts of the province, in partnership with other role-players.<br />

We also implement programmes targeted at business development<br />

in areas prioritised by government.<br />

In what ways does Seda <strong>Limpopo</strong> help clients with their<br />

specific business needs and objectives?<br />

To assist our clients, we have created a number of key programmes<br />

that are tailored to guiding smaller businesses through their individual<br />

problem areas as well as giving them support for growth and<br />

advancement.<br />

For instance, our Franchise Support Programme promotes franchising<br />

businesses to new and current entrepreneurs, offering them advice<br />

about potential franchisee and franchisor opportunities, while our<br />

Export Development Programme plays a key role in helping to develop<br />

export-ready small enterprises that are globally competetive and are<br />

thus able to grow local as well as international markets.<br />

We have a Trade Fair Programme that forms part of a wider network,<br />

and this is aimed at helping local small and medium enterprises to<br />

participate in global trade.<br />

Our Seda Technology Programme seeks to stimulate economic<br />

growth and development through facilitating technology transfer, in<br />

addition to increasing the access to and use of technologies, as well<br />

as offering technical support to small enterprises.<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

84


INTERVIEW<br />

The Co-operatives and Community Public Private<br />

Partnerships (Co-ops and CPPP) Programme promotes<br />

the establishment and growth of viable,<br />

sustainable co-operatives and collectively owned<br />

enterprises, while the Women Owned Enterprise<br />

Development Programme plays a role in developing<br />

women-owned enterprises through a number<br />

of capacity-building programmes.<br />

The EMPRETEC Programme promotes the use<br />

of entrepreneurial competences, while the BESD<br />

Programme’s approach utilises one-on-one coaching<br />

as an innovative methodology to facilitate<br />

and reinforce business skills transfer and developmental<br />

support to emerging entrepreneurs. The<br />

latter programme is conducted by formerly unemployed<br />

individuals and especially trained so-called<br />

Entrepreneurial Development Practitioners (EDPs).<br />

What individuals or organisations should<br />

contact Seda <strong>Limpopo</strong> for assistance?<br />

Seda is able to assist anyone with innovative ideas<br />

who wants to start a business in any sector. In particular<br />

we give preference to value-adding ventures<br />

(manufacturing and processing), as well as wholesalers<br />

and retailers who have the necessary market<br />

access that can enable them to take locally produced<br />

content nationally and/or internationally. Agriculture<br />

and agro-processing are two other sectors on which<br />

we place a high priority.<br />

What challenges do businesses in the<br />

province of <strong>Limpopo</strong> face?<br />

The main challenge we have noticed is in terms of<br />

access to markets, as this is made more difficult as<br />

a result of competitveness that arises due to the<br />

distance we are located away from major markets<br />

as well as suppliers. Raw material (input) and distribution<br />

costs greatly increase in comparison with<br />

businesses in the metros (closer to sources/markets).<br />

Skills/knowledge management, especially in the<br />

agricultural sector: an example of this is land reform<br />

initiatives that have not gone to plan as well as skills<br />

transfers that just did not happen at the scale and/<br />

or pace originally envisaged.<br />

Access to funding is a challenge as the requirements<br />

to qualify for funding are very tight, whether<br />

this be from DFIs or private banking.<br />

What are the major opportunities in the<br />

province for SMMEs?<br />

• Exporting of primary produce<br />

• Value-adding through agro-processing initiatives<br />

85 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


INTERVIEW<br />

Any advice or insight for co-operatives<br />

operating (or looking to operate) in<br />

<strong>Limpopo</strong>?<br />

• That they should be run as a business and not<br />

as an NPO<br />

• Keep your operation lean as large groups have<br />

too many dynamics to manage which can result<br />

in a lot of conflict<br />

• When forming/establishing a co-operative, look<br />

to include value-adding members<br />

• Secondary co-op formations can assist with highlevel,<br />

focused negotiations with the market and<br />

suppliers, strengthening production capabilities<br />

through resource and experience sharing (bulk<br />

buying of inputs, etc)<br />

The Co-operatives and CPPP Programme supports<br />

non-traditional organisational forms of business<br />

and focuses on creating opportunities in rural<br />

areas. Seda’s Co-operatives and Community Public<br />

Private Partnership Programme (Co-ops and CPPP)<br />

was formed at the end of 2008 and combines the<br />

previous Sector Development and Co-operatives<br />

Programme and the revived CPPP Programme<br />

The programme supports non-traditional enterprise<br />

organisational forms with a special focus on<br />

rural areas and uses of local resources. By creating<br />

the programme, Seda’s ability to satisfy the needs<br />

of rural clients is enhanced. The programme focuses<br />

on the following sectors:<br />

• Agri-business<br />

• Cultural tourism<br />

• Mining and mineral beneficiation<br />

• Trading and auxiliary services<br />

The vision was to provide leadership in the establishment<br />

in addition to growth of viable, sustainable<br />

co-operatives and collectively owned enterprises<br />

in various sectors, and to facilitate their successful<br />

participation in the economy.<br />

Purpose<br />

• Promote the establishment of co-operatives and<br />

collectively owned enterprises, in partnership<br />

with other stakeholders<br />

• Establish linkages with other government initiatives<br />

that support co-operatives and collectively<br />

owned enterprises<br />

• Increase access by co-operatives and collectively<br />

owned enterprises to information, business skills<br />

and markets<br />

• Foster a culture of cooperation among co-operative<br />

beneficiaries<br />

Offerings<br />

• Development of a viable business plan<br />

• Development of marketing and feasibility studies<br />

• Due diligence<br />

• Capacity building<br />

• Facilitation of access to markets<br />

• Facilitation of access to finance<br />

• Promoting value additions<br />

• Ensure compliance to statutory requirements<br />

• Conduct market research<br />

How has Seda <strong>Limpopo</strong> made it easier for<br />

SMMEs to utilise your services?<br />

SMMEs have ready access to our services through<br />

our BESD Programme as well as our many satellite<br />

offices. We have also taken the innovative step<br />

of deciding that all of our <strong>Business</strong> Advisors (BAs)<br />

are certified on the Growth Wheel International, as<br />

this will ensure that <strong>Business</strong> Advisors will not just<br />

be comparing themselves with <strong>Business</strong> Advisors<br />

LIMPOPO BUSINESS <strong>2016</strong><br />

86


Seda contacts<br />

Provincial Office<br />

Koenie Slabbert - Provincial Manager<br />

Tel: +27 15 287 2940<br />

Fax: +27 15 297 4022<br />

Email: kslabbert@seda.org.za<br />

2nd Floor Suite 6, Maneo Building, 73 Biccard Street, Polokwane 0700<br />

Postnet Suite 32 Private Bag X 9307 Polokwane 0700<br />

Seda Vhembe Branch<br />

Mr Marcus Mukumela - Branch Manager<br />

Tel: +27 15 960 8700<br />

Fax: 086 634 8964<br />

Email: mmukumela@seda.org.za<br />

Old Mutual Building, Old Group Scheme Offices, Mphephu Road, Thohoyandou 7950<br />

Seda Capricorn Branch<br />

Mr Peter Maredi - Branch Manager<br />

Tel: +27 15 290 8720<br />

Fax: +27 15 290 8736<br />

Email: pmaredi@seda.org.za<br />

1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699<br />

Seda Waterberg Branch<br />

Mr Steve Botha - Branch Manager<br />

Tel: +27 15 492 9600<br />

Fax: +27 15 491 7361<br />

Email: sbotha@seda.org.za<br />

Old Nedbank Building, 40 Retief Street, Mokopane<br />

Seda Mopani Branch<br />

Martin Rafferty - Acting Branch Manager<br />

Tel: +27 15 306 6400<br />

Fax: +27 15 307 2233<br />

Email: mrafferty@seda.org.za<br />

27 Peace Street, 1st Floor, Prosperitas Building, Tzaneen 0850<br />

Seda Sekhukhune Branch<br />

Mr Sabelo Ntshangase - Branch Manager<br />

Tel: +27 13 262 9430<br />

Email: sntshangase@seda.org.za<br />

Bareki Mall, Shop No. 20B, Cnr Chris Wild and Van Riebeek Street, Groblersdal 0407<br />

For more information contact us at: 015 287 2940 or visit our website: www.seda.org.za<br />

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


INTERVIEW<br />

internationally but they will also be able to interact<br />

and link with the best <strong>Business</strong> Advisors in the<br />

world, who are certified users of the tool. One of the<br />

most important aspects of the Growth Wheel is the<br />

360-degree screening, as this helps our Advisors to<br />

quickly create an overview of all the challenges that<br />

might be relevant to the entrepreneur in question.<br />

The Advisor and the entrepreneur will be able to<br />

draw up a visual profile of how the business is doing,<br />

and this will assist them in identifying future growth<br />

opportunities and obstacles.<br />

The framework will be able to assist the parties to<br />

ascertain where they are in terms of their business<br />

development and provide a roadmap for where they<br />

could be going. The Advisor and the entrepreneur<br />

will be able to create a common language and offer<br />

ideas for new directions. This process will inspire<br />

entrepreneurs to set their agenda in terms of which<br />

decisions to make.<br />

The worksheets will help them to make decisions<br />

faster because they contain graphic checklists<br />

to quickly understand alternative options so they<br />

can get ideas for new ones. The 30 – 60 – 90 day<br />

plan is the tool that is ideal for entrepreneurs to<br />

keep track of their decisions and actions. It will<br />

also help the BA to keep track of actions that the<br />

entrepreneur had to undertake. The entrepreneur<br />

will then be able to focus on getting things done<br />

and who should do it.<br />

Can you share some examples of successful<br />

SMMEs that Seda <strong>Limpopo</strong> has<br />

helped over the past few years?<br />

The greatest impact we have had has been in terms<br />

of increased turnover and net profit. We don’t aim<br />

to make an impression in terms of employment opportunities,<br />

as most businesses always target minimum<br />

labour in order to reduce production costs and<br />

increase efficiency.<br />

Companies we have had particular success<br />

with include PCS (Polokwane Chemical Supplies),<br />

Goodlife, Rosika Trading, Tshedza Concrete Art,<br />

Sasekisani Co-operative, Mofamadi Bed and<br />

Breakfast, TKY Trading, Mogalaletsi Trading, Twins<br />

Trailers, <strong>Limpopo</strong> Ceramics, Pavecon, Bellstein<br />

Trading and Are Hudisaneng Agricultural Primary<br />

Co-operative.<br />

What message would you like to send to<br />

more established businesses and investors<br />

in terms of how they can help to support<br />

SMMEs and what the long-term benefits<br />

of offering such support are for the<br />

regional and national economy?<br />

It is very important to assist SMMEs where possible<br />

by providing access to markets. I would also<br />

recommend that it can be wise to invest in SMMEs<br />

as innovation usually forms the basis of their business.<br />

It is also a good idea to partner with Seda for<br />

development of our current BEE suppliers.<br />

Seda, in collaboration with the Department of<br />

Small <strong>Business</strong> Development (DSBD), has embarked<br />

on the Gazelles Programme, which seeks to change<br />

the landscape in the SMME sector of South Africa.<br />

Gazelles are found in all sectors of the economy<br />

and a common characteristic is that they are usually<br />

fast-growing entities. This growth occurs at a<br />

specific phase in a businesses development, after<br />

which they revert to the industry norm in terms<br />

of their continued growth, although this does<br />

not preclude the possibility of future fast growth.<br />

While these fast-growing companies are known as<br />

Gazelles, researchers also identified the “elephants”<br />

which are the big and ponderous companies that<br />

do not necessarily employ much (if any) staff. Lastly,<br />

researchers also speak of “mice”, which are the small<br />

and micro companies that will either not grow or<br />

whose owner-managers are not necessarily growth<br />

driven. For the purpose of this programme, South<br />

African “Gazelles” will be formal entities that grow<br />

exponentially and have an annual turnover of at least<br />

R1-million and are subject to definitions in terms<br />

of the Small <strong>Business</strong> Act of 1995 as amended.<br />

CONTACT INFO<br />

Physical address: Suite Number 6,<br />

2nd Floor, Maneo Building, 73 Biccard Street,<br />

Polokwane 0699<br />

Tel: +27 15 287 2940<br />

Fax: +27 15 297 4022<br />

Website: www.seda.org.za<br />

LIMPOPO BUSINESS <strong>2016</strong><br />

88


Global Africa Network<br />

Promoting business, trade and investment in SA’s nine provinces<br />

www.gan.co.za<br />

www.southafricanbusiness.co.za<br />

www.easterncapebusiness.co.za<br />

www.freestatebusiness.co.za<br />

www.gautengcompanies.co.za<br />

www.kwazulunatalbusiness.co.za<br />

www.limpopobusiness.co.za<br />

www.mpumalangabusiness.co.za<br />

www.northerncapebusiness.co.za<br />

www.northwestbusiness.co.za<br />

www.westerncapebusiness.co.za<br />

Tel 021 657 6200<br />

Email sales@gan.co.za<br />

Web www.gan.co.za


PROFILE<br />

Polokwane Chamber<br />

of <strong>Business</strong><br />

The Chamber seeks to support and develop local businesses<br />

and encourage investment in the city.<br />

Vision<br />

To be the home that advocates<br />

the voice of business.<br />

Mission<br />

• To create value for members.<br />

• To unlock business opportunities<br />

for members.<br />

• To facilitate a platform for best<br />

business practice.<br />

• To promote sound governance<br />

principles by maintaining high<br />

business ethics.<br />

• To encourage socially responsible<br />

corporate citizens in business.<br />

• To provide a platform for dialogue and partnership<br />

within business and public sector.<br />

Policy<br />

The policy of the chamber is to, without reference<br />

to colour of skin, race, gender, culture or religious<br />

conviction:<br />

• Attend to the interests of its members as an<br />

a-political, non-racial organisation<br />

• Effect, maintain and promote an optimum free<br />

market system in a predominantly capitalist<br />

system<br />

• Promote and protect free enterprise and protect<br />

the interests of its members as business persons<br />

and to act as a representative for its members<br />

Strategy<br />

The overall strategy for <strong>2016</strong> is to:<br />

Polokwane Chamber of <strong>Business</strong> <strong>2016</strong> Exco.<br />

• Reposition the Chamber as a respected contributor<br />

to the <strong>Limpopo</strong> economy through active<br />

engagement of key stakeholders for the promotion<br />

of Chamber interests and benefits for its<br />

members.<br />

• Enhance value-add to its members through<br />

effective networking opportunities.<br />

• Engage on pertinent business issues within the<br />

province.<br />

• Enhance closer working relations between the<br />

Chamber and its members and stakeholders.<br />

CONTACT INFO<br />

Physical address: No 47, 19th Industria<br />

Street, Polokwane<br />

Tel: +27 15 297 8057<br />

Fax: 086 513 2644 / 015 297 8058<br />

Email: admin@pcob.co.za<br />

Website: www.pcob.co.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

90


Education and training<br />

South Africa’s newest medical school opened in <strong>Limpopo</strong> in <strong>2016</strong>.<br />

OVERVIEW<br />

SECTOR INSIGHT<br />

A new tool, dye and mouldmakers<br />

programme has been<br />

launched.<br />

• <strong>Limpopo</strong>’s mining companies<br />

run training<br />

programmes.<br />

• Students can study<br />

Nature Management at<br />

Lephalale TVET College.<br />

A<br />

total of 60 students proudly enrolled at the School of Medicine<br />

at Turfloop in January <strong>2016</strong>. This forms part of the reconstituted<br />

Faculty of Health Sciences of the University of <strong>Limpopo</strong>.<br />

The decision to have this medical school (the country’s ninth,<br />

and the first to be opened in the democratic era), reverses the merger<br />

of the Turfloop and Medunsa campuses of a decade ago.<br />

The curriculum for the undergraduate programme has been approved<br />

by the Health Professions Council of South Africa (HPCSA) and<br />

the Council for Higher Education accrediting committee. Post-graduate<br />

medical students will continue to study in Polokwane. The national<br />

Department of Health has invested R10-million in bursaries to assist the<br />

first intake of students and enrolment is expected to rise to 80 in <strong>2016</strong>.<br />

The Nedbank Chair of Accounting was an important part of the<br />

University of <strong>Limpopo</strong>’s strategy to get national accreditation for its<br />

accounting classes, which has been achieved. Other major contributions<br />

came from:<br />

• FASSET, the financial sector SETA (R10-million in bursaries)<br />

• Absa Bank, R3-million in staff salary subventions<br />

• Thuthuka Project supported by the National Skills Fund, R97-million<br />

The University of Venda for Science and Technology (Univen) is situated<br />

in Thohoyandou, in the far north-eastern part of the province. Univen<br />

has eight schools, with Environmental Sciences, Agriculture and Rural<br />

Development and Forestry illustrating the practical emphasis of the<br />

institution.<br />

The School of Environmental<br />

Sciences is planning to establish a<br />

mining-engineering programme.<br />

The University of South Africa<br />

(Unisa), which mostly has correspondence<br />

students, has a regional<br />

support centre in Polokwane and<br />

agencies at Makhado and Giyani.<br />

The Turfloop Graduate<br />

School of Leadership is based<br />

in Edupark, Polokwane, and<br />

offers three masters degrees.<br />

These are the Master of <strong>Business</strong><br />

Administration (MBA), the Master<br />

of Public Administration (MPA)<br />

and the Master of Development<br />

(MDev). There are also short-term<br />

management certificate courses,<br />

which range in duration from six<br />

to 12 months.<br />

The Development Facilitation<br />

and Training Institute (DevFTI) is<br />

housed in the Graduate School<br />

of Leadership. DevFTI has an outward<br />

focus, with training provided<br />

for NGOs and government departments<br />

in various parts of Africa.<br />

91 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


OVERVIEW<br />

Training<br />

National and provincial government<br />

are investing heavily in<br />

training. The <strong>Limpopo</strong> Provincial<br />

Government has a national<br />

pilot project in training for Tool,<br />

Dye and Mould-Making. In 2015<br />

<strong>Limpopo</strong>’s first 20 trainees qualified.<br />

There is a plan to establish a<br />

Manufacturing Support Centre to<br />

make sure that the right skills are<br />

being taught to support industry.<br />

Involved parties will be the<br />

<strong>Limpopo</strong> Tooling Initiative Advisory<br />

Board, the Technology Information<br />

Agency and universities.<br />

During 2014/15 the provincial<br />

government made R12-million<br />

available for internships, bursaries<br />

and learnerships. The allocation<br />

for 2015/16 was 50 bursaries and<br />

a commitment to employ 98 interns<br />

with a view to helping them<br />

train for the job market. A specialist<br />

programme to develop skills in<br />

the green economy has 31 young<br />

people supported by the provincial<br />

government studying Energy<br />

Management Systems.<br />

There is a National Student<br />

Financial Aid Scheme, which is<br />

under pressure following a concentrated<br />

protest across South<br />

Africa against high university fees.<br />

Bursaries are also available under<br />

the National Skills Fund.<br />

The Medupi Power Station<br />

Joint Venture (MPSJV: Grinaker-<br />

LTA, Murray & Roberts and<br />

Concor) has a training facility<br />

where about 1 300 local people<br />

have been trained to qualify for<br />

jobs on this complex building site.<br />

Far in the north of the province,<br />

De Beers has established a<br />

Skills Development Centre, linked to its Venetia Mine. The centre caters<br />

not only to mine employees, but also for local school pupils and adults<br />

from the community of Alldays.<br />

Impala Platinum (along with its <strong>Limpopo</strong> subsidiary Marula Platinum)<br />

has a partnership with the National Department of Mineral Resources<br />

and the Da Vinci Institute for Technology Management, which focuses<br />

on the training of black women in the mining industry. A Master of<br />

Science degree in Technology and Innovation is available to candidates,<br />

several of whom are now in management positions at Impala Platinum.<br />

Anglo Platinum (Amplats) has a new Mining Training Centre (Eastern<br />

Limb) at its Twickenham mine, and this will also deliver training and<br />

assessment to staff of other operations.<br />

What for several years were known as Further Education and Training<br />

Colleges (FET) have now been re-branded as Technical and Vocational<br />

Education and Training (TVET) Colleges. There are seven TVET colleges<br />

in <strong>Limpopo</strong>: Capricorn College, Lephalale College, Mopani East College,<br />

Mopani South College, Sekhukhune College, Vhembe College and<br />

Waterberg College.<br />

Capricorn College has three campuses, each of which has a slightly<br />

different focus. The city campus in Polokwane offers business studies,<br />

engineering and National Curriculum Vocation (NCV) subjects. Seshego<br />

(outer Polokwane) has an engineering focus while Senwabarwana is<br />

situated in a rural area and concentrates on teaching hospitality and<br />

hairdressing.<br />

At Lephalale TVET College, students can study <strong>Business</strong> Studies,<br />

Hospitality, Engineering Studies, Nature Management and Computer<br />

Science. The college has a satellite campus at Modimolle. Murray<br />

& Roberts is training hundreds of artisans at the Tlhahlong training<br />

centre in partnership with the college and the merSETA. Siemens has<br />

supported this centre with significant capital investment.<br />

Waterberg College operates as five business training centres across<br />

two municipalities, namely Lepelle-Nkumbi and Mogalakwena.<br />

ONLINE RESOURCES<br />

Capricorn TVET College: www.capricorncollege.co.za<br />

Council of Higher Education: www.che.ac.za<br />

Lephalale TVET College: ww.lephalalefetcollege.co.za<br />

Mining Qualifications Authority: www.mqa.org.za<br />

Sumbandila Scholarship Trust: www.sumbandila.org<br />

Turfloof Graduate School of Leadership: www.ul.ac.za<br />

University of <strong>Limpopo</strong>: www.ul.ac.za<br />

University of South Africa: www.unisa.ac.za<br />

University of Venda for Science and Technology:<br />

www.univen.ac.za<br />

Waterberg College: www.waterbergcollege.co.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

92


FOCUS<br />

Skills development a<br />

priority of youth-focused initiatives<br />

The Provincial Government of <strong>Limpopo</strong> is determined to improve the prospects of young<br />

people in the region.<br />

Given the South African demographic profile, with an estimated<br />

36.2% of the total population between 15 and<br />

34 years of age, youth development is a priority issue for<br />

government entities nationwide. This includes the provincial<br />

government of <strong>Limpopo</strong>. With <strong>2016</strong> marking 40 years since the<br />

Soweto uprising, projects undertaken during this year have taken on<br />

a particular significance.<br />

The Youth Directorate in the Office of the Premier is involved with<br />

a number of interventions to improve the prospects for young people<br />

in <strong>Limpopo</strong> Province. A number of these programmes and projects<br />

relate to education.<br />

Improved opportunities for education<br />

and skills development<br />

In 2015 the <strong>Limpopo</strong> provincial government announced the re-opening<br />

of the Madzivhandila and Tompi Seleka agricultural colleges. These<br />

colleges have already begun to make an impact in skills development<br />

in the agricultural sector.<br />

A particular highlight for <strong>2016</strong> was the opening of the first medical<br />

school in the province. Sixty students were enrolled for the first<br />

year of training at the medical school attached to the University<br />

of <strong>Limpopo</strong> and these students were offered full bursaries by the<br />

provincial government.<br />

In order to encourage the development of skills of a different kind,<br />

the provincial government has identified a site for the location of a<br />

theatre, which will provide a platform for young people to showcase<br />

their talents and acquire performing arts skills.<br />

Promoting entrepreneurship<br />

Young people in the province are also encouraged to develop entrepreneurial<br />

and business skills. In June <strong>2016</strong>, the Office of the Premier<br />

partnered with local commercial radio station, Capricorn FM, in hosting<br />

a youth seminar. The seminar highlighted opportunities for young<br />

people in the agri-business sector.<br />

During an address to young<br />

people participating in <strong>2016</strong><br />

Youth Day celebrations, Premier<br />

Mathabatha reminded those present<br />

of the national interventions<br />

designed to assist youth-owned<br />

businesses. He made particular<br />

reference to the Department of<br />

Small <strong>Business</strong> Development,<br />

which is implementing a variety<br />

of programmes to uplift small<br />

businesses, particularly those<br />

that are owned by young people.<br />

Youth-owned co-operatives<br />

can access financial support up<br />

to R350 000 through the Cooperative<br />

Incentive Scheme<br />

in the Department of Small<br />

<strong>Business</strong> Development.<br />

Access to information<br />

As part of <strong>Limpopo</strong>’s Youth Month<br />

activities, MEC Ramathuba officially<br />

opened the fully equipped<br />

Eldorado Youth Centre outside<br />

Senwabarwana. This centre will<br />

enable members of the community<br />

to access the Internet and<br />

valuable information such as<br />

employment opportunities and<br />

bursaries or details on applying<br />

to tertiary institutions.<br />

93 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


LISTING<br />

South African National Government<br />

An overview of South Africa’s national government departments.<br />

President<br />

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X1000, Pretoria 0001<br />

Tel: +27 12 300 5200 | Fax: +27 12 323 8246<br />

Website: www.thepresidency.gov.za<br />

Website: www.economic.gov.za<br />

Deputy President<br />

Address: Union Buildings, Government Avenue, East Wing,<br />

1st Floor, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X1000, Pretoria 0001<br />

Tel: +27 12 300 5200 | Fax: +27 12 323 8246<br />

Website: www.thepresidency.gov.za<br />

Minister in the Presidency<br />

Address: Union Buildings, Government Avenue, East Wing,<br />

1st Floor, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X1000, Pretoria 0001<br />

Tel: +27 12 300 5200 | Fax: +27 12 300 5795<br />

Website: www.thepresidency.gov.za<br />

Ministry in the Presidency responsible<br />

for Women (Minister of Women in the<br />

Presidency)<br />

Address: East Wing, Union Buildings, Pretoria 0001<br />

Postal address: Private Bag X931, Pretoria 0001<br />

Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473<br />

Website: www.women.gov.za<br />

Minister for Public Service & Administration<br />

Address: 123 Poyntons Building, West Block, cnr Schubart and Church<br />

streets, Pretoria 0001<br />

Postal address: Private Bag X136, Pretoria 0001<br />

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111<br />

Website: www.dcs.gov.za<br />

Dept of Agriculture, Forestry and Fisheries<br />

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street<br />

and Soutpansberg Road, Arcadia, Pretoria<br />

Postal address: Private Bag X250, Pretoria<br />

Tel: +27 12 319 7319 | Fax: +27 12 319 6681<br />

Website: www.daff.gov.za<br />

Department of Arts and Culture<br />

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza<br />

Bopape streets, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X899, Pretoria 0001<br />

Tel: +27 12 441 3000<br />

Fax: +27 12 440 4485<br />

Website: www.dac.gov.za<br />

Department of Basic Education<br />

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001<br />

Postal address: Private Bag X9034, 8000<br />

Tel: +27 12 357 3000<br />

Fax: +27 12 323 5989<br />

Website: www.education.gov.za<br />

Department of Communications<br />

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival<br />

Street), Hatfield, Pretoria 0001<br />

Postal address: Private Bag X745, Pretoria 0001<br />

Tel: +27 12 473 0000 | Fax: +27 12 462 1646<br />

Website: www.doc.gov.za<br />

Department of Cooperative Governance and<br />

Traditional Affairs<br />

Address: 87 Hamilton Street, Arcadia, Pretoria 0083<br />

Postal address: Private Bag X802, Pretoria 0001<br />

Tel: +27 12 334 0705 | Fax: +27 12 326 4478<br />

Website: www.cogta.gov.za<br />

Department of Correctional Services<br />

Address: 123 Poyntons Building, West Block,<br />

cnr Schubart and Church streets, Pretoria 0001<br />

Postal address: Private Bag X136, Pretoria 0001<br />

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111<br />

Website: www.dcs.gov.za<br />

Department of Economic Development<br />

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &<br />

Esselen streets, Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X149, Pretoria 0001<br />

Tel: +27 12 394 1006 | Fax: +27 12 394 0255<br />

Website: www.economic.gov.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

94


LISTING<br />

Department of Defence and Military<br />

Veterans<br />

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001<br />

Postal address: Private Bag X427, Pretoria 0001<br />

Tel: +27 12 355 6101 | F ax: +27 12 347 0118<br />

Website: www.dod.mil.za<br />

Department of Energy<br />

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001<br />

Postal address: Private Bag X96, Pretoria 0001<br />

Tel: +27 12 406 8000<br />

Fax: +27 12 319 6681<br />

Website: www.energy.gov.za<br />

Department of Environmental Affairs<br />

Address: Environment House, 473 Steve Biko and Soutpansberg Road,<br />

Arcadia, 0083<br />

Postal address: Private Bag X447, Pretoria 0001<br />

Tel: +27 12 310 3537 | Fax: +27 086 593 6526<br />

Website: www.environment.gov.za<br />

Department of Finance<br />

Address: 40 WF Nkomo Street,<br />

Old Reserve Bank Building, 2nd Floor, Pretoria<br />

Postal address: Private Bag X115, Pretoria 0001<br />

Tel: +27 12 323 8911 | Fax: +27 12 323 3262<br />

Website: www.treasury.gov.za<br />

Department of Health<br />

Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets,<br />

Pretoria 0001<br />

Postal address: Private Bag X399, Pretoria 0001<br />

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165<br />

Website: www.doh.gov.za<br />

Department of Higher Education<br />

and Training<br />

Address: 123 Francis Baard Street, Pretoria 0001<br />

Postal address: Private Bag X893, Pretoria 0001<br />

Tel: +27 12 312 5555 | Fax: +27 12 323 5618<br />

Website: www.dhet.gov.za<br />

Department of Home Affairs<br />

Address: 909 Arcadia Street, Hatfield 0083<br />

Postal address: Private Bag X114, Pretoria 0001<br />

Tel: +27 12 432 6648 | Fax: +27 12 432 6675<br />

Website: www.dha.gov.za<br />

Department of Human Settlements<br />

Address: Govan Mbeki House, 240 Justice Mahomed,<br />

Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X644, Pretoria 0001<br />

Tel: +27 12 421 1310 | Fax: +27 12 341 8513<br />

Website: www.dhs.gov.za<br />

Department of International Relations and<br />

Cooperation<br />

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,<br />

Pretoria 0001<br />

Postal address: Private Bag X152, Pretoria 0001<br />

Tel: +27 12 351 1000 | Fax: +27 12 329 1000<br />

Website: www.dirco.gov.za<br />

Department of Justice and Correctional<br />

Services<br />

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard<br />

Streets, Pretoria 0001<br />

Postal address: Private Bag X276, Pretoria 0001<br />

Tel: +27 12 406 4669 | Fax: +27 12 406 4680<br />

Website: www.doj.gov.za<br />

Department of Labour<br />

Address: 215 Laboria House, cnr Francis Baard and<br />

Paul Kruger Streets, Pretoria 0001<br />

Postal address: Private Bag X499, Pretoria 0001<br />

Tel: +27 12 392 9620 | Fax: +27 12 320 1942<br />

Website: www.labour.gov.za<br />

Department of Mineral Resources<br />

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007<br />

Postal address: Private Bag X59, Pretoria 0001<br />

Tel: +27 12 444 3000 | Fax: +27 86 624 5509<br />

Website: www.dmr.gov.za<br />

Department of Police<br />

Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001<br />

Postal address: Private Bag X463, Pretoria 0001<br />

Tel: +27 12 393 2800 | Fax: +27 12 393 2812<br />

Website: www.saps.gov.za<br />

Department of Public Enterprises<br />

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001<br />

Postal address: Private Bag X15, Hatfield 0028<br />

Tel: +27 12 431 1000 | Fax: +27 12 431 1039<br />

Website: www.dpe.gov.za<br />

95 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


LISTING<br />

Department of Public Service and<br />

Administration<br />

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria<br />

Postal address: Private Bag X884, Pretoria 0001<br />

Tel: +27 12 336 <strong>17</strong>00 | Fax: +27 12 336 1809<br />

Website: www.dpsa.gov.za<br />

Department of Public Works<br />

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street<br />

Postal address: Private Bag X65, Pretoria 0001<br />

Tel: +27 12 406 21978 | Fax: +27 086 276 8757<br />

Website: www.publicworks.gov.za<br />

Department of Rural Development and<br />

Land Reform<br />

Address: 184 Old Building, cnr Jeff Masemola<br />

and Paul Kruger Streets, Pretoria 0001<br />

Postal address: Private Bag X833, Pretoria 0001<br />

Tel: +27 12 312 9300 | Fax: +27 12 323 3306<br />

Website: www.ruraldevelopment.gov.za<br />

Department of Science and Technology<br />

Physical address: DST Building, Building No 53, CSIR South Gate<br />

Entrance, Meiring Naude Road, Brummeria, Pretoria 0001<br />

Postal address: Private Bag X727, Pretoria 0001<br />

Tel: +27 12 843 6300<br />

Fax: +27 12 349 1041/8<br />

Website: www.dst.gov.za<br />

Department of Small <strong>Business</strong> Development<br />

Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street,<br />

Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X84, Pretoria 0001<br />

Tel: +27 12 394 1006 | Fax: +27 12 394 1006<br />

Website: www.dsbd.gov.za<br />

Department of Social Development<br />

Physical address: HSRC Building, North Wing,<br />

134 Pretorius Street, Pretoria 0001<br />

Postal address: Private Bag X904, Pretoria 0001<br />

Tel: +27 12 312 7479 | Fax: +27 086 715 0829<br />

Website: www.dsd.gov.za<br />

Department of State Security<br />

Physical address: Bogare Building, 2 Atterbury Road, Menlyn,<br />

Pretoria 0001<br />

Postal address: PO Box 1037, Menlyn 0077<br />

Tel: +27 12 367 0700<br />

Fax: +27 12 367 0749<br />

Website: www.ssa.gov.za<br />

Department of Sport and Recreation South<br />

Africa<br />

Physical address: Regent Place, 66 cnr Madiba and<br />

Florence Ribeiro Street, Pretoria 0001<br />

Postal address: Private Bag X896, Pretoria 0001<br />

Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583<br />

Website: www.srsa.gov.za<br />

Department of Tourism<br />

Physical address: <strong>17</strong> Trevena Street, Tourism House,<br />

Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X424, Pretoria 0001<br />

Tel: +27 12 444 6780 | Fax: +27 12 444 7027<br />

Website: www.tourism.gov.za<br />

Department of Trade and Industry<br />

Physical address: The dti, 77 Meintjie Street, Block A, Floor 3,<br />

Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X274, Pretoria 0001<br />

Tel: +27 12 394 1568 | Fax: +27 12 394 0337<br />

Website: www.thedti.gov.za<br />

Department of Transport<br />

Physical address: Forum Building, 159 Struben Street,<br />

Room 4111, Pretoria 0001<br />

Postal address: Private Bag X193, Pretoria 0001<br />

Tel: +27 12 309 3131 | Fax: +27 12 328 3194<br />

Website: www.transport.gov.za<br />

Telecommunications and Postal Services<br />

Physical address: Iparioli Office Park, 399 Jan Shoba Street,<br />

Hatfield, Pretoria 0001<br />

Postal address: Private Bag X860, Pretoria 0001<br />

Tel: +27 12 427 8000<br />

Fax: +27 12 427 8016<br />

Website: www.dtps.gov.za<br />

Department of Water and Sanitation<br />

Physical address: Sedibang Building, 185 Frances Baard Street,<br />

Pretoria 0001<br />

Postal address: Private Bag X313, Pretoria 0001<br />

Tel: +27 12 336 8733 | Fax: +27 12 336 8850<br />

Website: www.dwa.gov.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

96


<strong>Limpopo</strong><br />

Provincial Government<br />

A guide to <strong>Limpopo</strong>’s provincial government departments.<br />

Visit: www.limpopo.gov.za<br />

LISTING<br />

Office of the Premier<br />

Premier: Mr Chupu Stanley Mathabatha<br />

Physical address: Mowaneng Building, 40 Hans van Rensburg Street,<br />

Polokwane 0700<br />

Postal address: Private Bag X9483, Polokwane 0700<br />

Tel: +27 15 287 6515<br />

Fax: +27 15 291 3911<br />

Website: www.limpopo.gov.za<br />

Department of Agriculture and<br />

Rural Development<br />

MEC: Ms Joyce Matshoge<br />

Physical address: Temo Towers, 69 Biccard Street, Polokwane 0699<br />

Postal address: Private Bag X9487, Polokwane 0700<br />

Tel: +27 15 294 3147 | Fax: +27 15 294 4506<br />

Website: www.lda.gov.za<br />

Department of Co-operative<br />

Governance. Human Settlements<br />

and Traditional Affairs<br />

MEC: Ms Makoma Makhurupetje<br />

Physical address: 20 Rabie Street,<br />

Hensa Building, Polokwane<br />

Postal address: Private Bag X9485, Polokwane 0700<br />

Tel: +27 15 284 5060<br />

Fax: +27 15 291 3988/086 576 4784<br />

Website: www.limpopo.coghsta.gov.za<br />

Department of Economic<br />

Development, Environment<br />

and Tourism<br />

MEC: Mr Charles Seaparo Sekoah (Acting)<br />

Physical address: Evridiki Towers, 20 Hans van Rensburg Street,<br />

Polokwane 0699<br />

Postal address: Private Bag X9484, Polokwane 0700<br />

Tel: +27 15 290 7600 | Fax: +27 15 297 0885<br />

Website: www.ledet.gov.za<br />

Department of Education<br />

MEC: Mr Ishmael Kgetjepe<br />

Physical address: Department of Education Building, cnr Biccard and<br />

Excelsior Streets, Polokwane 0700<br />

Postal address: Private Bag X9489, Polokwane 0700<br />

Tel: +27 15 290 9301 | Fax: +27 15 297 0885/086 531 0539<br />

Website: www.edu.limpopo.gov.za<br />

Department of Health<br />

MEC: Dr Phophi Ramathuba<br />

Physical address: 18 College Street, Polokwane 0699<br />

Postal address: Private Bag X9302, Polokwane 0700<br />

Tel: +27 15 293 6000<br />

Fax: +27 15 293 2836<br />

Website: www.doh.limpopo.gov.za<br />

Department of Public Works,<br />

Roads and Infrastructure<br />

MEC: Mr Jeremiah Ndou<br />

Physical address: 43 Church Street, Polokwane 0699<br />

Postal address: Private Bag X9490, Polokwane 0700<br />

Tel: +27 15 284 7000<br />

Website: www.dpw.limpopo.gov.za<br />

Department of Social Development<br />

MEC: Happy Joyce Mashamba<br />

Physical address: 18 College Street, Polokwane 0700<br />

Postal address: Private Bag X9302, Polokwane 0700<br />

Tel: +27 15 293 6027/04<br />

Fax: +27 15 293 6<strong>17</strong>0/50<br />

Website: www.dhsd.limpopo.gov.za<br />

97 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


LISTING<br />

Department of Sport,<br />

Arts and Culture<br />

MEC: Ms Nandi Ndalane<br />

Physical address: Olympic Towers, 21 Biccard Street, Polokwane 0700<br />

Postal address: Private Bag X9549, Polokwane 0700<br />

Tel: +27 15 284 4009/8 | Fax: +27 15 284 4500<br />

Website: www.sac.limpopo.gov.za<br />

Department of Transport,<br />

Security and Liaison<br />

Provincial Treasury<br />

MEC: Mr Rob Tooley<br />

Physical address: Ismini Towers, 46 Hans van Rensburg Street,<br />

Polokwane 0699<br />

Postal address: Private Bag X9486, Polokwane 0700<br />

Tel: +27 15 298 5361<br />

Fax: +27 15 295 8873/7010<br />

Website: www.limtreasury.gov.za<br />

Premier: Mapula-Mokako Phukwana<br />

Physical address: 32 Schoeman Street, Polokwane 0699<br />

Postal address: Private Bag X9492, Polokwane 0700<br />

Tel: +27 15 290 7600 | Fax: +27 15 295 8979<br />

Website: www.dssl.limpopo.gov.za<br />

0 50 km<br />

Beitbridge<br />

LIMPOPO PROVINCE<br />

0 25 miles<br />

Musina<br />

Evangelina<br />

Palapye<br />

Pafuri<br />

Motorway<br />

Alldays<br />

Tshipise<br />

Main Road<br />

Railway<br />

Oorwinning<br />

Waterpoort<br />

Tom Burke<br />

Thohoyandou<br />

Mahalapye<br />

Makhado<br />

BOTSWANA<br />

North West<br />

Sun City<br />

N<br />

R81<br />

Kruger<br />

N11<br />

N1<br />

Senwabarana<br />

National<br />

Monte Christo<br />

Steilloopbrug<br />

Giyani Park<br />

Morebeng<br />

R81<br />

Lephalale<br />

Gilead<br />

Modjadjiskloof<br />

Seshego<br />

Groesbeek<br />

Tzaneen<br />

Elmeston<br />

Gravelotte Phalaborwa<br />

POLOKWANE<br />

Mokopane<br />

Ofcolaco<br />

Sentrum<br />

Vaalwater<br />

Zebedelia<br />

N1<br />

Lebowa Kgomo<br />

Mookgophong<br />

Thabazimbi<br />

Crecy<br />

Modimolle<br />

Bela-Bela<br />

N11<br />

Burgersfort<br />

Gauteng<br />

Marble Hall<br />

Lydenburg<br />

Groblersdal<br />

Stoffberg<br />

R40<br />

Hoedspruit<br />

Klaserie<br />

Pilgrim’s Rest<br />

Graskop<br />

White River<br />

ZIMBABWE<br />

Sabie<br />

Mpumalanga<br />

Hazyview<br />

MOZAMBIQUE<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

98


<strong>Limpopo</strong> Local Government<br />

LISTING<br />

A guide to the district and local municipalities in <strong>Limpopo</strong>.<br />

South African local government has undergone<br />

considerable transformation<br />

over the past decade, as outlined in the<br />

Constitution of South Africa (1996). The Local<br />

Government: Municipal Structures Act of 1998<br />

reduced the total number of municipalities in the<br />

country from 843 to 284 (now 283) and laid out criteria<br />

for determining whether an area should have a<br />

Category A Municipality (Metropolitan Municipalities),<br />

a Category B Municipality (Local Councils or<br />

Municipalities) or a Category C Municipality (District<br />

Municipalities).<br />

Six Metropolitan Municipalities were created,<br />

namely the City of Cape Town Metropolitan<br />

Municipality in the Western Cape, the City of<br />

Tshwane Metropolitan Municipality, Ekurhuleni<br />

Metropolitan Municipality and the City of<br />

Johannesburg Metropolitan Municipality in<br />

Gauteng, eThekwini Municipality in KwaZulu-<br />

Natal and Nelson Mandela Bay Municipality in<br />

the Eastern Cape.<br />

Forty-seven District Municipalities were identified<br />

(<strong>Limpopo</strong> has five district municipalities,<br />

namely Capricorn District Municipality, Mopani<br />

District Municipality, Vhembe District Municipality,<br />

Waterberg District Municipality and Greater<br />

Sekhukhune District Municipality), as well as 230<br />

Local Municipalities (with 24 in <strong>Limpopo</strong>).<br />

In July 2008, the Municipal Demarcation<br />

Board proposed that Mangaung (Free State),<br />

Buffalo City (Eastern Cape) and Msunduzi<br />

(KwaZulu-Natal) municipalities change from<br />

Category B local municipalities to Category<br />

A metropolitan municipalities. Mangaung<br />

and Buffalo City were subsequently granted<br />

metropolitan status.<br />

Capricorn District Municipality<br />

Physical address: 41 Biccard Street,<br />

Polokwane 0699<br />

Postal address: PO Box 4100,<br />

Polokwane 0700<br />

Tel: +27 15 294 1000<br />

Fax: +27 15 294 1292<br />

Email: mayor@cdm.org.za or<br />

Website: www.cdm.org.za<br />

Local municipalities encompassed:<br />

Aganang Municipality<br />

Tel: +27 15 295 1400<br />

Fax: +27 15 295 1401/1447<br />

Website: www.aganang.gov.za<br />

Blouberg Municipality<br />

Tel: +27 15 505 7100 | Fax: +27 15 505 0296<br />

Website: www.blouberg.gov.za<br />

Lepelle-Nkumpi Municipality<br />

Tel: +27 15 633 4500 | Fax: +27 15 633 6896<br />

Website: www.lepelle-nkumpi.gov.za<br />

Molemole Municipality<br />

Tel: +27 15 501 0243 | Fax: +27 15 501 0419<br />

Website: www.molemole.gov.za<br />

Polokwane Municipality<br />

Tel: +27 15 290 2100 | Fax: +27 15 290 2106 or<br />

086 608 0290 (SA only)<br />

Website: www.polokwane.gov.za<br />

99 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


LISTING<br />

Sekhukhune District Municipality<br />

Physical address: 3 Wes Street, Groblersdal 0470<br />

Postal address: Private Bag X8611, Groblersdal 0470<br />

Tel: +27 13 262 7300<br />

Fax: +27 13 262 5849<br />

Website: www.sekhukhune.gov.za<br />

Local municipalities encompassed:<br />

Elias Motsoaledi Municipality<br />

Tel: +27 13 262 3056<br />

Fax: +27 13 262 2547/4530<br />

Website: www.eliasmotsoaledi.gov.za<br />

Ephraim Mogale Municipality<br />

Tel: +27 13 261 8400<br />

Fax: +27 13 261 2985<br />

Website: www.ephraimmogalelm.gov.za<br />

Fetakgomo Municipality<br />

Tel: +27 15 622 8000<br />

Fax: +27 15 622 8026<br />

Website: www.fetakgomo.gov.za<br />

Greater Tubatse Municipality<br />

Tel: +27 13 231 1000 | Fax: +27 13 231 7467<br />

Website: www.tubatse.gov.za<br />

Makhudutamaga Municipality<br />

Tel: +27 13 265 8645<br />

Fax: +27 13 265 1975/1076<br />

Website: www.makhuduthamaga.gov.za<br />

Mopani District Municipality<br />

Physical address: Government Building, Main Road, Giyani 0826<br />

Postal address: Private Bag X9687,<br />

Giyani 0826<br />

Tel: +27 15 811 6300<br />

Fax: +27 15 812 4301<br />

Website: www.mopani.gov.za<br />

Local municipalities encompassed:<br />

Ba-Phalaborwa Municipality<br />

Tel: +27 15 780 6300<br />

Fax: +27 15 781 0726<br />

Website: www.ba-phalaborwa.gov.za<br />

Greater Giyani Municipality<br />

Tel: +27 15 811 5500<br />

Fax: +27 15 812 2068/1683<br />

Website: www.greatergiyani.gov.za<br />

Greater Letaba Municipality<br />

Tel: +27 15 309 9246 Fax: +27 15 309 9419<br />

Website: www.greaterletaba.gov.za<br />

Greater Tzaneen Municipality<br />

Tel: +27 15 307 8000<br />

Fax: +27 15 307 8049/48<br />

Website: www.tzaneen.gov.za<br />

Vhembe District Municipality<br />

Physical address: Old Parliament, Government Complex, Tusk Venda<br />

Street, Thohoyandou 0950<br />

Postal address: Private Bag X5006, Thohoyandou 0950<br />

Tel: +27 15 960 2000/2008 | Fax: +27 15 962 0904<br />

Website: www.vhembe.gov.za<br />

Local municipalities encompassed:<br />

Makhado Municipality<br />

Tel: +27 15 519 3000 | Fax: +27 15 516 1195<br />

Website: www.makhado.gov.za<br />

Musina Municipality<br />

Tel: +27 15 534 6100 | Fax: +27 15 534 2513<br />

Website: www.musina.gov.za<br />

Mutale Municipality<br />

Tel: +27 15 967 9600 | Fax: +27 15 967 9677/9654<br />

Website: www.mutale.gov.za<br />

Thulamela Municipality<br />

Tel: +27 15 962 7500 Fax: +27 15 962 4020<br />

Website: www.thulamela.gov.za<br />

Waterberg District Municipality<br />

Physical address: Harry Gwala Street, Modimolle 0510<br />

Postal address: Private Bag X1018,<br />

Modimolle 0510<br />

Tel: +27 14 718 3300<br />

Fax: +27 14 7<strong>17</strong> 2931<br />

Website: www.waterberg.gov.za<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

100


Thabazimbi Municipality<br />

Thabazimbi Municipality is located in the southwestern part of <strong>Limpopo</strong><br />

Province, has Botswana as its international neighbour, and is a mere<br />

two hours’ drive from the city of Tshwane.<br />

PROFILE<br />

Thabazimbi is known as the “mountain of iron”,<br />

which is the Tswana name for this peaceful, productive<br />

town. The name refers to the highly lucrative<br />

iron-ore reef first discovered in the municipality<br />

in 1919. Iron and steel production started in<br />

1930 and the town was proclaimed in 1953.<br />

Today, Iscor Steelworks in Tshwane still draws<br />

much of its raw material from Thabazimbi Kumba<br />

Resources (iron-ore mine). Apart from iron ore, the<br />

Thabazimbi Municipality is surrounded by platinum-producing<br />

mines such as Northam Platinum<br />

Mine and Anglo Platinum Mines (Amandelbult,<br />

Tumela, Swartklip Union Section). Other minerals<br />

produced in the area include andalusite (mined<br />

by Rhino Mine) and limestone for the production<br />

of cement (mined by Pretoria Portland Cement).<br />

The municipality falls within the Waterberg District<br />

municipal area and the boundaries of Thabazimbi<br />

Municipality incorporate areas such as: Thabazimbi;<br />

Northam; Leeupoort; Rooiberg and Dwaalboom.<br />

Main industries<br />

Thabazimbi has demonstrated strength in the tourism,<br />

agriculture and mining sectors, with the latter<br />

showing tremendous growth potential. The mining<br />

sector has huge potential to absorb many skills within<br />

the municipality. There is also a need to establish<br />

opportunities in small-scale mining. Agriculture has<br />

also proven to be a strong economic sector in the<br />

municipality. Agricultural commodities produced<br />

include wheat, beans and maize.<br />

Main attractions<br />

Thabazimbi Municipality boasts one of the country’s<br />

most sought-after tourist attractions. The<br />

municipality’s main attraction is the Marakele<br />

National Park, which is a subsidiary of South<br />

African National Parks and of the same standard<br />

as the Kruger and Mapungubwe national parks.<br />

The game lodges scattered around the municipal<br />

area help to promote the environmental sustainability<br />

of the region as a tourist destination. Other<br />

attractions include the Atherstone Nature Reserve<br />

and Ben Alberts Golf Course.<br />

CONTACT INFO<br />

Key personnel:<br />

Molatelo Mabitsela, HOD: Planning and<br />

Economic Development<br />

Email: mmabitsela@thabazimbi.gov.za<br />

Molatlhegi Peter Motlhabane, LED Manager<br />

Email: motlhabanemp@thabazimbi.gov.za<br />

Tel: +27 14 777 1525 Ext 107<br />

Fax: +27 14 777 1531<br />

Physical address: 7 Rietbok Street,<br />

Thabazimbi 0380<br />

Postal address: PO Box 90, Thabazimbi 0380<br />

Website: www.thabazimbi.gov.za<br />

Thabazimbi Tourism Centre<br />

Tel: 014 777 1011 / 014 777 1062<br />

Email: info@infothabazimbi.co.za<br />

Email: office@infothabazimbi.co.za<br />

101 LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong>


LISTING<br />

Local municipalities encompassed:<br />

Bela-Bela Municipality<br />

Tel: +27 14 736 8000<br />

Fax: +27 14 736 3288<br />

Website: www.belabela.gov.za<br />

Lephalale Municipality<br />

Tel: +27 14 763 2193<br />

Fax: +27 14 763 5662/086 534 3440<br />

Website: www.lephalale.com<br />

Modimolle Municipality<br />

Tel: +27 14 718 2000 | Fax: +27 14 7<strong>17</strong> 4077<br />

Website: www.modimolle.gov.za<br />

Mogalakwena Municipality<br />

Tel: +27 15 491 9630<br />

Fax: +27 15 491 9755<br />

Website: www.mogalakwena.gov.za<br />

Mookgophong Municipality<br />

Tel: +27 14 743 6600<br />

Fax: +27 14 743 2434<br />

Website: www.mookgophong.gov.za<br />

Thabazimbi Municipality<br />

Tel: +27 14 777 1525<br />

Fax: +27 14 777 1531<br />

Website: www.thabazimbi.gov.za<br />

MUNICIPALITIES IN LIMPOPO PROVINCE<br />

Musina<br />

Musina<br />

ZIMBABWE<br />

Metropolitan/District Municipality<br />

Boundary<br />

Local Municipality Boundary<br />

District Municipality<br />

Waterberg<br />

Local Municipality<br />

Lephalale<br />

BOTSWANA<br />

Thabazimbi<br />

Lephalale<br />

Lephalale<br />

Thabazimbi<br />

Waterberg<br />

Modimolle<br />

Bele-Bela<br />

N11<br />

Mogalakwena<br />

Mookgophong<br />

Bela-Bela<br />

Mokopane<br />

N1<br />

Modimolle<br />

Alldays<br />

Blouberg<br />

N11<br />

Mookgophong<br />

N1<br />

Makhado<br />

POLOKWANE<br />

Polokwane<br />

Makhado<br />

Molemole<br />

Aganang<br />

Capricorn R81<br />

Lepele-Nkumpi<br />

Fetakgomo<br />

Vhembe<br />

Tshipise<br />

Greater Letaba<br />

Tzaneen<br />

Greater Tzaneen<br />

Sekhukhune<br />

Makhuduthamaga<br />

Greater<br />

Tubatse<br />

Ephraim<br />

Mogale<br />

Thohoyandou<br />

Thulamela<br />

Kruger<br />

R81<br />

National<br />

Area<br />

Greater Park<br />

Mopani<br />

Mutale<br />

Giyani<br />

Ba-Phalaborwa<br />

R40<br />

Maruleng<br />

Kruger National<br />

Park District<br />

Management<br />

Phalaborwa<br />

Bushbuckridge<br />

MOZAMBIQUE<br />

Bohlabela<br />

(Cross-border<br />

Municipality)<br />

Kruger National<br />

Park District<br />

Management<br />

Area<br />

North West<br />

Greater Groblersdal<br />

Mpumalanga<br />

Gauteng<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

102


LISTING<br />

INDEX<br />

Capricorn District Municipality ................................................................................. 101 - 103<br />

Corridor Mining Resources ...................................................................................................32<br />

Gateway Airports Authority Limited (GAAL) ........................................................................56<br />

Great North Transport ...........................................................................................................36<br />

Industrial Development Corporation (IDC) ......................................................................OBC<br />

<strong>Limpopo</strong> Economic Development Corporation (LEDA) .................................IFC, 10, 26 - 37<br />

<strong>Limpopo</strong> Office of the Premier .........................................................................................8, 18<br />

Masisizane Fund ....................................................................................................................40<br />

Musina Special Economic Zone ...........................................................................................28<br />

Nedbank .................................................................................................................................38<br />

Polokwane Chamber of <strong>Business</strong> ........................................................................................88<br />

Risima Housing Finance Corporation ..................................................................................34<br />

Small Enterprise Development Agency (SEDA) ....................................................... 5, 82 - 86<br />

Thabazimbi Municipality .......................................................................................................99<br />

Tubatse Platinum Special Economic Zone ..........................................................................30<br />

Unemployment Insurance Fund (UIF) ....................................................................................3<br />

Vodacom .................................................................................................................64 - 73, IBC<br />

LIMPOPO BUSINESS <strong>2016</strong>/<strong>17</strong><br />

106


10001033SM/LIMP<br />

75 YEARS OF INDUSTRIAL<br />

DEVELOPMENT<br />

OF INDUSTRIAL DEVELOPMENT<br />

SINCE 1940<br />

For 75 years, the IDC has been committed to leading industrial<br />

development in South Africa. It is this commitment that has<br />

enabled us to grow key industries and facilitate job creation,<br />

ensuring a positive contribution to the growth of our economy.<br />

If you’re an entrepreneur and have a business plan that is<br />

relevant to an industry that the IDC supports and require funding<br />

of R1 million or more, take the lead and make history. Call the<br />

Polokwane office on 015 299 4080 or visit idc.co.za to learn more<br />

about the funding criteria for the sectors that the IDC supports.

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