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Limpopo Business 2017-18 edition

A unique guide to business and investment in Limpopo. Limpopo Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2007, established itself as the premier business and investment guide to the Limpopo Province. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo. This book contains detailed insights into the plans of the Limpopo Economic Development Agency (LEDA) and the recently launched bus rapid transport system for the provincial capital, Leeto la Polokwane, together with a comprehensive register of all provincial government and municipal contact details. Investment news related to mining, telecommunications and tourism is carried in overviews of all the main economic sectors. To complement the extensive distribution of the print edition of the magazine, the publication is also available online at www.limpopobusiness.co.za.

A unique guide to business and investment in Limpopo.
Limpopo Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2007, established itself as the premier business and investment guide to the Limpopo Province. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
This book contains detailed insights into the plans of the Limpopo Economic Development Agency (LEDA) and the recently launched bus rapid transport system for the provincial capital, Leeto la Polokwane, together with a comprehensive register of all provincial government and municipal contact details. Investment news related to mining, telecommunications and tourism is carried in overviews of all the main economic sectors.
To complement the extensive distribution of the print edition of the magazine, the publication is also available online at www.limpopobusiness.co.za.

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LIMPOPO<br />

BUSINESS<br />

<strong>2017</strong>/<strong>18</strong> EDITION<br />

THE GUIDE TO BUSINESS<br />

AND INVESTMENT IN<br />

LIMPOPO PROVINCE<br />

JOIN JOIN US ONLINE US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.LIMPOPOBUSINESS.CO.ZA<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.LIMPOPOBUSINESS.CO.ZA


Gauteng<br />

Musina<br />

Musin<br />

Great<br />

North<br />

Transport<br />

N11<br />

Alldays<br />

Blouberg<br />

Makhado<br />

N1<br />

Vhe<br />

Great North Transport (GNT) operates across members who otherwise would not generate revenue<br />

the length and breadth of <strong>Limpopo</strong> and on the contracted parking space.<br />

the eastern part of Mpumalanga. With its<br />

head office in Polokwane and 11 depots<br />

Enterprise development<br />

phalale based in the five districts of the province and one in Enterprise development is at the heart of socio-<br />

Molemole<br />

Bohlabele, Mpumalanga, the company transported economic development polices and strategies of the<br />

22-million passengers and commuters Mogalakwena<br />

during the national, provincial and local government. Through its<br />

2016/17 financial year.<br />

procurement spending, GNT advances the sustainable BOTSWAN R81<br />

development of emerging enterprises. Over the years<br />

ephalale Strategy<br />

the company has continued to procure its supplies<br />

GNT is a business offering primarily services. The service<br />

mix is standardised (scheduled services) with companies based in <strong>Limpopo</strong>.<br />

from emerging enterprises Capricorn<br />

with preference given to<br />

Gre<br />

some level of customisation (in certain cases new The company has also subcontracted Polokwane some routes<br />

Waterberg<br />

routes require customisation). The business model<br />

Mokopane<br />

to emerging bus companies and provided mentorship<br />

is directed towards standardisation and replication. to ensure they become sustainable beyond the critical<br />

GNT’s offering is both broad and deep and the years of inception.<br />

Lepele-Nkum<br />

focus is regional but the reach is international. GNT<br />

has both a business-to-consumer focus (scheduled Youth development<br />

services) and a business-to-business focus (contract The N1company partners with private and public sector<br />

services, hiring, advisory services).<br />

companies to organise business seminars focusing on<br />

bi<br />

Mookgophong young people. The annual seminar provides a platform Fetakgo<br />

Human resource development Lim 368 for engagements between institutions that provide<br />

Annually, Great North Transport recruits students for financial and non-financial N11 products and services to Thaba<br />

learnership and internship programmes as part of ensure that aspirant youth entrepreneurs are afforded<br />

human resource development for the country, Modimolle<br />

and an opportunity to kick-start their business ideas.<br />

<strong>Limpopo</strong> Province in particular. In the current year,<br />

Makhuduthamaga<br />

10 learners were Bele-Bela<br />

recruited and absorbed into various Great North Transport owns and operates buses at<br />

disciplines ranging from HR Management, Marketing the following locations: Ephraim<br />

and <strong>Business</strong> Development to Finance, Bela-Bela Internal Audit,<br />

Mogale<br />

IT and Operations.<br />

• Bapedi (Burgersfort) • Marble Hall<br />

Community development<br />

• Bushbuckridge • Motetema<br />

The company signs contracts with members of communities<br />

for overnight parking for its buses in the • Giyani<br />

• Phalaborwa<br />

(Bohlabela) • Mokopane North W<br />

different villages across the province. This is seen by • Hoedspruit Greater • Seshego Groblersdal<br />

the company as empowering to those community • Makhado • Tzaneen<br />

M<br />

POLOKWA


A<br />

Services<br />

Lephalale<br />

Lephalale<br />

Waterberg<br />

Mogalakwena<br />

Mokopane<br />

Musina<br />

R81<br />

Capricorn<br />

ZIM<br />

Musina<br />

Tshipise<br />

• Private hire Alldays<br />

Vhembe<br />

• Commuter services<br />

Blouberg<br />

Makhado<br />

• Inter-towns services<br />

N11<br />

N1<br />

• Cross-border partial services<br />

Makhado<br />

Greater Letaba<br />

Molemole<br />

POLOKWANE<br />

Polokwane<br />

Lepele-Nkumpi<br />

Tzaneen<br />

Greater Tzaneen<br />

Th<br />

B<br />

zimbi<br />

Thabazimbi<br />

est<br />

Vision<br />

Mookgophong<br />

Lim 368<br />

N1<br />

Modimolle<br />

Sekhukhune<br />

To be Southern Africa's preferred transport services provider Makhuduthamaga<br />

supporting economic<br />

growth and development Bele-Bela in the region.<br />

Ephraim<br />

Mission<br />

Bela-Bela<br />

Mogale<br />

To invest in world-class operating systems that will ensure sustainable, safe,<br />

consistent and dependable transport services for the benefit of our stakeholders.<br />

N11<br />

Fetakgomo-Greater<br />

Tubatse<br />

Greater Groblersdal<br />

Mpum<br />

Tel: +27 15 291 2641 | Fax: +27 15 291 2648<br />

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

22 Hans Van Rensburg Street, Polokwane, 0700, <strong>Limpopo</strong>, South Africa


CONTENTS<br />

CONTENTS<br />

<strong>Limpopo</strong> <strong>Business</strong> <strong>2017</strong>/<strong>18</strong> Edition<br />

Introduction<br />

Foreword6<br />

A unique guide to business and investment in <strong>Limpopo</strong><br />

<strong>Limpopo</strong> welcomes investors to the<br />

“gateway” province 8<br />

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

Honourable Chupu Stanley Mathabatha.<br />

A springboard for regional integration 10<br />

<strong>Limpopo</strong> Economic Development Agency Managing<br />

Director Benjamin Mphahlele.<br />

Special features<br />

Regional overview of <strong>Limpopo</strong> 14<br />

Special economic zones are set to boost the<br />

manufacturing sector.<br />

<strong>Limpopo</strong> Development Plan 20<br />

Improving lives, and creating a conducive environment<br />

for investment.<br />

Special Economic Zones 22<br />

Investor-friendly measures are attracting investors to<br />

designated growth zones in <strong>Limpopo</strong>.<br />

Sector contents<br />

Agriculture40<br />

The strong agri-processing sector still has massive<br />

potential to grow in <strong>Limpopo</strong>.<br />

Mining44<br />

Special economic zones open up possibilities for<br />

investors in processing.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

4


UIF SAVING JOBS<br />

THROUGH SOCIALLY<br />

RESPONSIBLE INVESTMENTS<br />

The National Development Plan is a blueprint serving as<br />

a guideline to government departments and state entities<br />

on how they can play a role in government wide efforts<br />

of creating decent work, reducing unemployment and<br />

poverty. The Unemployment Insurance Fund is among<br />

the leading state entities in the implementation of the<br />

provisions of the NDP to address the slow economic<br />

growth, unemployment and poverty in South Africa.<br />

The UIF social investment mandate ensures that,<br />

additional to earning good financial returns, investments<br />

must be supportive of long term economic, social and<br />

adhere to sustainable environmental outcomes. The<br />

investments must also yield a good social return for the<br />

country. These investments have sustained 6 860 jobs of<br />

which 3 024 are permanent, 3 836 are temporary/seasonal<br />

and 195 are new jobs created during the financial year<br />

ending in March 2016.<br />

UIF INVESTMENTS IN RENEWABLE ENERGY<br />

The UIF investments are contributing to the energy<br />

requirements of South Africa and the investments in the<br />

renewable energy sector provides a total capacity of 192<br />

megawatt of electricity of which 117 megawatt is solar<br />

energy and 27 megawatt is wind generated electricity.<br />

The De Aar project is a shining example of the UIF energy<br />

investments and this project produces 90 megawatt of<br />

electricity and was completed in April 2016. The solar plant<br />

in the area generates enough electricity to power 15 000<br />

houses. Another mainstay project is the Phakwe Group ran<br />

projects undertaken in the Northern and Eastern Cape.<br />

INVESTMENT IN FOOD SECURITY<br />

The UIF investments in this regard are undertaken under<br />

the banner of the UIF Agri-Fund in partnership with<br />

Futuregrowth and Day Breaker Poultry Project. The UIF<br />

Agri-Fund has invested in 4 farms situated in Mable Hall<br />

in <strong>Limpopo</strong>. One of the farms is a cash crop farm spanning<br />

450 hectares. The farm in the last financial year produced<br />

235 hectares of white maize, and cotton was planted in an<br />

area covering 28 hectares.<br />

A further three farms are located in the Saron area in the<br />

Western Cape. In this project a total of 178 hectares has<br />

been used to plant grapes, 37 hectares has been used to<br />

pant citrus fruit. Furthermore, there is potential to plant an<br />

additional 92 hectares of grapes. The Daybreaker Poultry<br />

project operates in Gauteng, <strong>Limpopo</strong> and Mpumalanga<br />

and the combined projects have facilities to grow 1.6<br />

million broiler chickens.<br />

INVESTMENTS IN HEALTH CARE FACILITIES<br />

The UIF concluded two investments in this regard that<br />

include a BEE hospital manager, Busamed to build a<br />

private hospital in Modderfontein and Fund Manager<br />

Razorite Heatlhcare that focus on the provision of<br />

affordable heathcare facilities that include rehabilitation<br />

and sub-acute centres.<br />

The Modderfontein hospital is a 220 hospital bed with subacute<br />

facilities. This hospital is under construction. While<br />

the RH Fund Manager has concluded seven investments<br />

that include:<br />

• Busamed with four hospital facilities<br />

• HealthMed with two facilities<br />

INVESTMENTS IN EDUCATION<br />

UIF has invested in three investments that play a role<br />

to unlock access to education. The investments were<br />

concluded with Eduloan – an organisation that provides<br />

financial support to tertiary students and South Point and<br />

Educor organisations that provide student accommodation.<br />

By March 2016, Eduloan had disbursed about R446 986.64<br />

benefiting 34 047 students, whiles South Point provided<br />

about 10 000 student with accommodation.<br />

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT<br />

The UIF has concluded two investments with the aim of<br />

supporting small and medium enterprises. In this regard<br />

the PIC on behalf of UIF has concluded investment deals<br />

with Musa Capital and TOSACO.<br />

The investments will support more than 250 SMMEs across<br />

various sectors inclusive of agriculture and affordable<br />

housing. Musa Capital for example has a supply chain of<br />

over 250 SMME’s that have facilitated the creation of 2 500<br />

jobs.<br />

TOSACO investments is planning to advance capital to<br />

young black entrepreneurs who aspire to own and manage<br />

Total Filling stations around the country.<br />

For more information:<br />

Call: 0800 843 843 or<br />

visit: www.labour.gov.za


Metropolitan/District Municipality<br />

Boundary<br />

Local Municipality Boundary<br />

District Municipality<br />

Local Municipality<br />

Lephalale<br />

CREDITS<br />

Energy60<br />

An energy complex is planned for Lephalale.<br />

Water61<br />

Major bulk water projects are under way.<br />

Transport and logistics 62<br />

<strong>Limpopo</strong>’s location makes it ideal for logistics operations.<br />

Information and telecommunications technology 68<br />

<strong>Limpopo</strong> is getting better connected.<br />

Banking and financial services 76<br />

The provincial government is creating an<br />

insurance company.<br />

Development finance and SMME support 78<br />

A new strategy for the economies of townships and<br />

villages will boost SMMEs.<br />

Education and training 84<br />

Relevant training for employment is a provincial priority.<br />

Tourism86<br />

Cultural tourism is growing fast in <strong>Limpopo</strong>.<br />

Government<br />

<strong>Limpopo</strong> Provincial Government 91<br />

A guide to <strong>Limpopo</strong>’s provincial departments<br />

and their MECs.<br />

<strong>Limpopo</strong> Local Government 92<br />

A guide to district and local municipalities in<br />

<strong>Limpopo</strong> Province.<br />

References<br />

Sector contents 38<br />

Overview of the main economic sectors of <strong>Limpopo</strong>.<br />

Index96<br />

Map<br />

<strong>Limpopo</strong> locator map. 21<br />

<strong>Limpopo</strong> municipalities map. 93<br />

MUNICIPALITIES IN LIMPOPO PROVINCE<br />

BOTSWANA<br />

Lephalale<br />

Lephalale<br />

Thabazimbi Thabazimbi<br />

Waterberg<br />

Waterberg<br />

Bele-Bela<br />

N11<br />

Mogalakwena<br />

Mookgophong Lim 368<br />

Bela-Bela<br />

Mokopane<br />

N1<br />

Modimolle<br />

Alldays<br />

Blouberg<br />

N11<br />

Molemole<br />

Makhado<br />

Musina<br />

N1<br />

Makhado<br />

Tshipise<br />

R81<br />

Tzaneen<br />

Capricorn<br />

Greater Tzaneen<br />

Polokwane<br />

POLOKWANE<br />

Ephraim<br />

Mogale<br />

Musina<br />

Lepele-Nkumpi<br />

Makhuduthamaga<br />

Vhembe<br />

Greater Letaba<br />

Fetakgomo-Greater<br />

Tubatse<br />

Sekhukhune<br />

ZIMBABWE<br />

Thohoyandou<br />

Thulamela<br />

R81<br />

Greater<br />

Giyani<br />

Kruger National<br />

Kruger Park District<br />

National Management<br />

Area<br />

Park<br />

Mopani<br />

Phalaborwa<br />

Ba-Phalaborwa<br />

Bohlabela<br />

(Cross-border<br />

Municipality)<br />

R40<br />

Maruleng<br />

Bushbuckridge<br />

MOZAMBIQUE<br />

Kruger National<br />

Park District<br />

Management<br />

Area<br />

North West<br />

Greater Groblersdal<br />

Mpumalanga<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

6<br />

Gauteng


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FOREWORD<br />

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

A unique guide to business and investment in <strong>Limpopo</strong>.<br />

<strong>Limpopo</strong> <strong>Business</strong> <strong>2017</strong>/<strong>18</strong> is the ninth <strong>edition</strong> of this highly successful<br />

publication that has, since its launch in 2007, established<br />

itself as the premier business and investment guide to the<br />

<strong>Limpopo</strong> Province. This <strong>edition</strong> of <strong>Limpopo</strong> <strong>Business</strong> is officially<br />

endorsed by the Office of the Premier of <strong>Limpopo</strong>.<br />

This book contains detailed insights into the plans of the <strong>Limpopo</strong><br />

Economic Development Agency (LEDA) and the recently launched bus rapid<br />

transport system for the provincial capital, Leeto la Polokwane, together<br />

with a comprehensive register of all provincial government and municipal<br />

contact details. Investment news related to mining, telecommunications and<br />

tourism is carried in overviews of all the main economic sectors.<br />

To complement the extensive distribution of the print <strong>edition</strong> of the<br />

magazine, the publication is also available online at www.limpopobusiness.<br />

co.za. Updated information and news is dissemenated through our monthly<br />

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

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

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 />

ABOUT THE COVER<br />

De Beers is currently undertaking a major project to convert Venetia<br />

Mine from an open-pit operation to an underground mine. Open<br />

pit mining is expected to continue until 2021 and production in<br />

the underground mine is scheduled to commence in 2022 and will<br />

continue to 2043.<br />

CREDITS<br />

Publisher: Chris Whales<br />

Publishing director:<br />

Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Colin Carter<br />

Production: Lizel Olivier<br />

<strong>Business</strong> development manager:<br />

Shiko Diala<br />

Ad sales: Sydwell Adonis, Nigel<br />

Williams, Gavin van der Merwe,<br />

Sam Oliver, Gabriel Venter,<br />

Siyawamkela Sthunda,<br />

Vanessa Wallace, Jeremy Petersen<br />

and Reginald Motsoahae<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

DISTRIBUTION<br />

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

and incoming trade missions; to foreign offices in South<br />

Africa’s main trading partners; at top national and international<br />

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

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, trade and investment agencies,<br />

provincial government departments, municipalities, airport<br />

lounges and companies.<br />

Member of the Audit Bureau of Circulations<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 | Pictures supplied by: Chris Kirchoff, Wikimedia,<br />

Flickr, Anglo American, ANB Investments, Du Roi Nursery, South African<br />

Tourism, MediaclubSA, Ridgeway College, Malan Koetze, Marthinus<br />

Duckitt, Brand South Africa and Skycraper City.<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 completeness<br />

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 />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

8


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MESSAGE<br />

<strong>Limpopo</strong> welcomes investors to the<br />

“gateway” province<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 gives me great pleasure to<br />

welcome the readers of <strong>Limpopo</strong><br />

<strong>Business</strong> to the heartland of<br />

Southern Africa. <strong>Limpopo</strong> is also<br />

known as the “gateway” province<br />

because of our strategic location<br />

on the Great North Road to<br />

Zimbabwe, our links to the Port of<br />

Maputo in Mozambique via the<br />

Phalaborwa Spatial Development<br />

Initiative and the Maputo Corridor<br />

and our close proximity to the<br />

Republic of Botswana and three<br />

South African provinces, Gauteng,<br />

North West and Mpumalanga.<br />

Trade in the mining and agricultural products of <strong>Limpopo</strong> is<br />

supported by an excellent transport and logistics sector which recently<br />

received an additional boost with the approval by the South African<br />

national government of a new Special Economic Zone in the province.<br />

The Musina-Makhado Special Economic Zone will leverage the existing<br />

advantages in mining and logistics of the northern part of <strong>Limpopo</strong><br />

and special tax and customs regimes will be attractive to investors. A<br />

mining-focussed SEZ at Tubatse is also under consideration and we<br />

expect to attract about R44-billion in investments into these two zones.<br />

The rich soils of <strong>Limpopo</strong> produce great quantities of high-quality<br />

minerals and fruit and vegetables. Investors with the ability to beneficiate<br />

minerals or add value to agricultural produce through processing<br />

can take advantage of the favourable terms offered by Special<br />

Economic Zone legislation.<br />

Power generation, steel and coking plants and plasma waste gasification<br />

are among the possibilities for the Musina SEZ, while the focus<br />

at Tubatse will be platinum group metals beneficiation and also the<br />

manufacturing of goods that are used in the mining industry.<br />

Working together with the private sector, our provincial government<br />

has identified 10 major projects with a combined value of R46-billion.<br />

This will go a long way towards helping us to expand the productive<br />

capacity of our economy. We invite other investors to explore with us<br />

the possibilities for further projects that will support our effort to put<br />

<strong>Limpopo</strong> on a higher trajectory of economic growth and development.<br />

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

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

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

same vision and imperatives regarding poverty reduction, elimination<br />

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

We are pleased that <strong>Limpopo</strong> has recorded the second-highest<br />

employment gains in 2016. In the fourth quarter, <strong>Limpopo</strong> managed<br />

to create 64 000 new jobs. Jobs gained were mainly in the areas of<br />

construction, mining and agriculture.<br />

We are committed to improving infrastructure in the province,<br />

both to improve the quality of life of our citizens and as a way of<br />

enabling investment.<br />

<strong>Limpopo</strong> Connexion, a subsidiary of the <strong>Limpopo</strong> Economic<br />

Development Agency, has begun in earnest with the rollout of<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

10


MESSAGE<br />

infrastructure for the broadband telecommunication<br />

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

The programme implementation is in two phases,<br />

with the first phase commencing in quarter two of<br />

the <strong>2017</strong>/<strong>18</strong> financial year. This phase rolls out the<br />

broadband infrastructure in Polokwane, including<br />

the identified key provincial growth points. The second<br />

phase of the programme will cover over 80%<br />

of the provincial population, as per the provincial<br />

spatial development framework.<br />

A Provincial Infrastructure Hub has recently been<br />

created, with 68 professionals already appointed.<br />

This body will help to coordinate the delivery of<br />

strategic social-economic infrastructure across the<br />

province.<br />

Heritage and culture are increasingly being recognised<br />

as potential economic drivers. A provincial<br />

performance theatre is to be built in Polokwane at<br />

the corner of Oost and Grobler streets. This project<br />

will among other things help ignite the cultural<br />

industry, promote our rich and diverse cultures and<br />

create job opportunities.<br />

Two <strong>Limpopo</strong> festivals are already proving the<br />

rich potential of cultural events. The Mapungubwe<br />

Festival a signature event in the country’s entertainment<br />

calendar. During the last Mapungubwe<br />

Festival, a number of crafters generated substantial<br />

income.<br />

Another striking event on the province’s social<br />

calendar is the annual Marula Festival. The festival<br />

regularly attracts about 30 000 people including<br />

hundreds of visitors from neighbouring countries<br />

such as Mozambique, Zimbabwe and Zambia.<br />

This year’s guest list includes people from as far<br />

as South America. The economic spinoffs of this<br />

festival are unrivalled. More than 13 cooperatives<br />

under Mukumbi Industries brews 12 000 litres of<br />

marula beverages for the public throughout the<br />

festival. Apart from marula beverages, local entrepreneurs<br />

also sell other by-products of marula,<br />

such as jam, cooking oil, soap, hand and body<br />

lotions and nuts.<br />

Tourism remains one of the key competitive<br />

advantages for <strong>Limpopo</strong>. The Kruger National Park<br />

is South Africa’s number-one tourist attraction. A<br />

number of private concessions have been granted<br />

along the public park’s edge and there are several<br />

private game reserves scattered throughout<br />

the province’s diverse landscapes. Golf tourism<br />

is another growth sector with proximity to the<br />

country’s major point of entry at Johannesburg’s<br />

OR Tambo International Airport a big selling point.<br />

Whether you are a tourist, a business person or<br />

an investor, <strong>Limpopo</strong> is a province that is rich in opportunities.<br />

We look forward to welcoming you.<br />

www.limpopo.gov.za<br />

11<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


MESSAGE<br />

A springboard for regional<br />

integration and commerce<br />

Mr Benjamin Mphahlele, Managing Director of the<br />

<strong>Limpopo</strong> Economic Development Agency.<br />

the continent’s largest economies, and bordering as it does Botswana,<br />

Zimbabwe and Mozambique, <strong>Limpopo</strong> Province enjoys a perfectly<br />

natural geographical advantage to enhance regional integration towards<br />

the manifestation of African Agenda 2063, with the ideal of “an<br />

integrated, prosperous and peaceful Africa, driven by its own citizens<br />

and representing a dynamic force in the global arena.”<br />

Benjamin Mphahlele<br />

The African continent and African<br />

economies present massive investment<br />

opportunities in terms<br />

of large infrastructure projects,<br />

innovative and renewable energy<br />

sources, as well as large markets<br />

that encompass retail, commodities,<br />

ICT, manufacturing, arts and<br />

culture, travel and tourism, transportation<br />

and logistics, and other<br />

sectors. As a province in one of<br />

LIMPOPO PROVINCE HAS A PERFECTLY<br />

NATURAL GEOGRAPHICAL ADVANTAGE<br />

TO ENHANCE REGIONAL INTEGRATION<br />

TOWARDS THE MANIFESTATION OF<br />

AFRICAN AGENDA 2063 WITH THE IDEAL<br />

OF “AN INTEGRATED, PROSPEROUS<br />

AND PEACEFUL AFRICA, DRIVEN BY ITS<br />

OWN CITIZENS AND REPRESENTING A<br />

DYNAMIC FORCE IN THE GLOBAL ARENA.”<br />

As a lead economic development agency for <strong>Limpopo</strong>, the <strong>Limpopo</strong><br />

Economic Development Agency (LEDA) is best positioned to articulate<br />

and drive the following:<br />

• Working with its shareholder, the <strong>Limpopo</strong> Provincial Government,<br />

to implement provincial economic strategy in the context of the<br />

National Development Plan and the cluster-based <strong>Limpopo</strong><br />

Development Plan<br />

• Establishing the industrial cluster fora necessary to create and<br />

accumulate the required social capital, thus creating a common<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

12


MESSAGE<br />

THE SPECIAL ECONOMIC<br />

ZONES, MUSINA-MAKHADO<br />

AND TUBATSE, ARE INTEGRAL<br />

TO REALISING THE ECONOMIC<br />

GROWTH OF THE PROVINCE<br />

vision for each respective industrial cluster within<br />

an identified geographical space and develop<br />

cluster action plans<br />

• Coordinating key stakeholders within each cluster<br />

or project and facilitating the pace of implementation<br />

through an agreed-upon programme<br />

of action<br />

• Creating investment opportunities in the factorendowed<br />

yet rural province and providing infrastructure<br />

requisite for the industrialisation of the<br />

province. Such infrastructure includes the building<br />

and revitalisation of industrial parks, and the<br />

building of the ICT, green economy and energy<br />

sectors to enhance sustainable global competitiveness.<br />

The Special Economic Zones, Musina-<br />

Makhado and Tubatse, are integral to realising the<br />

economic growth of the province. <strong>Limpopo</strong> is<br />

rich in mineral resources, and 17 new mines were<br />

established in the greater Tubatse/ Burgersfort/<br />

Steelport area between 2001 and 2016, with a<br />

further 22 new mines planned. Beneficiation of<br />

platinum group metals (PGM), magnetite, vanadium<br />

and chrome provides opportunities that<br />

include catalytic converters, platinum jewellery,<br />

hydrogen fuel cells and solar energy component<br />

manufacturing. The Zones provide to investors<br />

a package of tax-based incentives and provision<br />

of infrastructure necessary to build globally<br />

competitive firms<br />

• Building the Sub-Tropical Fruit Industrial Cluster<br />

by expanding primary production capacity, thus<br />

creating demand and growth of the upstream<br />

agricultural inputs production as well expanding<br />

the provincial presence in the fruit export markets<br />

and the downstream food processing businesses<br />

• Securing Foreign Direct Investment through international<br />

finance and partnerships, while scanning<br />

the global markets for critical skills requisite<br />

for developing the <strong>Limpopo</strong> economy<br />

• Developing Tourism Destination Assets: the<br />

<strong>Limpopo</strong> Tourism Agency markets the province<br />

from a tourism perspective, where key heritage<br />

attractions include Mapungubwe and its<br />

artefacts, Makapan’s Cave (a sister project to<br />

the Cradle of Humankind) and the hot springs<br />

at Bela-Bela. But it remains LEDA's mandate to<br />

match the province's natural and professional<br />

services assets/industries to global business value<br />

chains, cross-industry corporate transactions,<br />

as well the hosting and capacitation of diplomatic<br />

missions at home and abroad. Integral to this<br />

objective is the provision of up-to-date market<br />

intelligence about the province's economy and<br />

providing marketing and public relations tools<br />

to sell <strong>Limpopo</strong> as an attractive and competitive<br />

investment destination.<br />

KEY STRATEGIC INTERVENTIONS<br />

• Facilitate business-to-business linkages<br />

• Delivery of large-scale catalytic projects<br />

• Create investment opportunities in<br />

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

• Drive investor education and secure<br />

Foreign Direct Investment<br />

• Stimulate large-scale farming and<br />

agro-processing<br />

• Encourage creation of urban city regions<br />

• Drive destination marketing<br />

CONTACT INFO<br />

Head office: Enterprise Development<br />

Finance House, Main Road, Lebowakgomo,<br />

Polokwane 0699<br />

Tel: +27 15 633 4700 | Fax: +27 15 633 4854<br />

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

13 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


MESSAGE<br />

Efficient, reliable, secure public<br />

transport<br />

A message from the Executive Mayor of Polokwane Local Municipality,<br />

Councillor Thembisile Nkadimeng.<br />

Thembisile Nkadimeng,<br />

Executive Mayor<br />

The Municipality of Polokwane<br />

welcomes the introduction of<br />

Leeto la Polokwane which is set<br />

to provide our residents with<br />

much improved public transport<br />

and stimulate the local economy.<br />

Leeto la Polokwane, which means “Our journey”, will provide<br />

an efficient, reliable, secure, cost-effective public transport service<br />

that reduces congestion on public roads, protects the environment<br />

and connects people to daily life. It will also spur economic growth<br />

through sustainable job creation and the facilitation of seamless<br />

trade and business.<br />

Investment in transport infrastructure leads to job creation and<br />

skills transfer while reducing travel times for people to acquire<br />

goods and services. Moreover, the project also provides valuable<br />

public health benefits by reducing road fatalities, crashes and injuries;<br />

reducing personal exposure to harmful air pollutants and increasing<br />

physical activity for users. Such improvements will have a positive<br />

impact in promoting local businesses and stimulating investments<br />

within Polokwane.<br />

The service is initially slated to run from the Central <strong>Business</strong> District,<br />

past Seshego and into Moletjie. Already, 2.5km of Dedicated Lanes<br />

towards Seshego township have been completed, with a further 1.5km<br />

under construction. This will culminate in 50km of road construction<br />

for trunk and feeder routes.<br />

Moreover, there have also been trunk extension rehabilitation<br />

and upgrades – 13.8km completed with 32.6km in the CBD. To date,<br />

12.8km of roads falling under the national Department of Transport<br />

have been completed, with 24.8km from partnerships with other<br />

grant providers. They cater for pedestrians and cyclists though the<br />

provision of sidewalks, cross walks, paths and cycle lanes.<br />

Special needs facilities including tactile paving for the blind, boarding<br />

bridges to ensure level boarding between the stops, stations and<br />

buses and easy-to-use pedestrian and passenger information signage<br />

have been put in place.<br />

The target for having the first buses rolling is 20<strong>18</strong>. We are reaching<br />

out to the community to make them aware of Leeto la Polokwane.<br />

We are engaging in a number of stakeholder engagement sessions,<br />

community outreach events, media events and door-to-door<br />

interactions to share progress with the communities we serve<br />

and to receive feedback. We are also active on the various social<br />

media platforms.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

14


City of Polokwane set to grow<br />

Message from the Municipal Manager of Polokwane Municipality, Dikgape Makobe.<br />

MESSAGE<br />

Polokwane is an obvious destination for logistics operations. With<br />

a well-established rail network and Polokwane International Airport,<br />

there are good connections to neighbouring provinces and countries<br />

such as North West, Mpumalanga and the Republic of Botswana. The<br />

large national logistics company, Value Group, only has four big depots<br />

in South Africa: one of them is in Polokwane.<br />

Polokwane is the biggest manufacturing centre in the province,<br />

with several agri-processing firms. Enterprise Foods has a large canning<br />

and emulsion processing plant in the city, Sasko runs a mill and other<br />

big manufacturers include SAB, Tiger Brands and Unilever. Charcoal is<br />

also manufactured in the city.<br />

Polokwane has a well-established financial sector that can assist<br />

with the financing of new infrastructure.<br />

Dikgape Makobe<br />

The Municipality of Polokwane<br />

is ready to achieve its objectives<br />

for development<br />

and service delivery and<br />

welcomes investors who want<br />

to take advantage of the many<br />

opportunities that we offer.<br />

The City of Polokwane is one of<br />

the fastest-growing urban areas<br />

in the north and it is the centre for<br />

regional economic development<br />

in the area. The city has many economic<br />

and business opportunities<br />

for the astute investor.<br />

Strategically located on the<br />

Great North Road linking South<br />

Africa’s economic heartland<br />

of Gauteng with Zimbabwe,<br />

Preparing the way<br />

Council has successfully put in place measures to tackle ageing<br />

infrastructure, water and sanitation backlog, rural electrification and to<br />

develop a solid maintenance programme for its infrastructure. Progress<br />

is under way to improve the total road network in the city.<br />

The city is hard at work to ensure that smart connectivity in the<br />

city is created to have access to broadband and WiFi. The municipality<br />

will continuously implement the Smart City Concept in other service<br />

delivery fields to create an encouraging environment for investment<br />

growth. We have achieved consensus with the business community<br />

to find ways to unlock job opportunities and we aim to find smart<br />

ways to unlock economic growth using the land that the city owns.<br />

There is a great potential for investment in central city property<br />

management and the entertainment sector. The arts theatre project<br />

also brings with it massive investment opportunities in the entertainment<br />

sector. The city centre is ripe for revitalisation and remodelling.<br />

A list of investment opportunities in Polokwane appears in the Local<br />

Government section. Polokwane is also looking for private partners to<br />

assist in rolling out these important catalytic projects:<br />

• Smart Metering Solutions<br />

• 90MW Solar Plant<br />

• Waste Water Treatment Plant (Dalmada and Polokwane)<br />

• Replacement of Asbestos Pipes<br />

• Construction of Polokwane International Convention Centre<br />

• Student Accommodation<br />

• Broadband Fibre Network<br />

• Science and Technology Park<br />

15 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


A REGIONAL OVERVIEW OF<br />

LIMPOPO<br />

The <strong>Limpopo</strong> Development Plan outlines concrete steps to industrialisation, infrastructure<br />

development, promotion of SMMEs and expanding the knowledge economy.<br />

By John Young<br />

<strong>Limpopo</strong>’s location gives it a strategic importance<br />

that enhances the province’s strengths<br />

in mining and agriculture. Neighbouring<br />

countries Botswana, Zimbabwe and<br />

Mozambique all provide economic opportunities<br />

and the province’s proximity to the powerhouse<br />

of Gauteng ensures a ready market for goods<br />

and services.<br />

Existing manufacturing in the province is centred<br />

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

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

Polokwane (food and beverages). Agri-processing<br />

is strong, with Pioneer Foods, McCain, Granor<br />

Passi, Kanhym, Westfalia and Enterprise Foods<br />

prominent, but this sector still has potential<br />

to grow.


SPECIAL FEATURE<br />

The Great North Road<br />

passes through <strong>Limpopo</strong><br />

from the south to the border<br />

town of Musina and on<br />

to Zimbabwe and its neighbours<br />

in the Southern African<br />

Development Community.<br />

The busy N11 highway links<br />

the province to Botswana to<br />

the west and Mpumalanga<br />

Province to the east.<br />

Most of South Africa's logistics<br />

operators have a presence<br />

in the provincial capital<br />

city of Polokwane and freight<br />

logistics hubs have been<br />

established at that city and<br />

at Musina.<br />

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

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

population (5.4-million). The main languages<br />

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

and Tshivenda but English is widely used in<br />

business and government.<br />

Transport within the city of Polokwane is being<br />

transformed by the introduction of a bus<br />

rapid transport system, Leeto la Polokwane. In<br />

the province as a whole, 22.6% of households in<br />

<strong>Limpopo</strong> use bus transport and 45.8% use taxis.<br />

Great North Transport falls under the<br />

<strong>Limpopo</strong> Economic Development Agency.<br />

The company has more than 500 buses,<br />

covers about 36-million kilometres every<br />

year on 279 routes, employs more than<br />

1 200 people and transports 37.6-million<br />

passengers.<br />

The Polokwane International Airport (PIA) is<br />

wholly owned by the provincial government<br />

and run by the Gateway Airport Authority<br />

Ltd (GAAL), an agency of the Department of<br />

Roads and Transport. It has the potential to<br />

be an important regional cargo airport. SA<br />

Airlink offers 21 flights to Johannesburg six<br />

days a week. The airline also provides links<br />

between Phalaborwa and Johannesburg,<br />

and between Hoedspruit and Johannesburg<br />

and Cape Town.<br />

The province also has a sophisticated rail network<br />

which Transnet Freight Rail aims to further<br />

expand, primarily to haul the province’s vast reserves<br />

of coal away to the coast at Richards Bay.<br />

Special Economic Zones<br />

One of the ways in which <strong>Limpopo</strong> is leveraging its<br />

strategic location is through the establishment of the<br />

Musina-Makhado Special Economic Zone. Recently<br />

promulgated by national government, the SEZ will<br />

have among its core functions the clustering of logistics<br />

operations. Located in the Vhembe District in<br />

the far north, this SEZ is near the border of Zimbabwe<br />

and on the Great North Road, thus linking with the<br />

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

Other focus sectors are agri-processing, energy<br />

and mineral beneficiation. Exxaro and De Beers have<br />

large mining operations nearby. A consortium of<br />

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

into the Musina-Makhado SEZ to run the mineral<br />

beneficiation operations.<br />

A second application for an SEZ has been made<br />

within the province’s platinum belt in the east of<br />

the province. The Tubatse SEZ, in the Sekhukhune<br />

District Municipality, will focus on the beneficiation<br />

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

manufacturing.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

<strong>18</strong>


SPECIAL FEATURE<br />

The following areas have been identified as<br />

priority zones for the province’s industrialisation<br />

strategy: Polokwane, Lephalale, Tubatse, Tzaneen<br />

and the Makhado-Musina corridor.<br />

Economic strengths<br />

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

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

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

vegetables that the province's farmers cultivate.<br />

Potatoes are grown, together with 75% of South<br />

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

(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 (www.<br />

worldstopexports.com). <strong>Limpopo</strong> has been a major<br />

contributor to the country’s excellent export 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 />

The province has huge reserves of coal, platinum,<br />

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

limestone and tin. Demand will always fluctuate,<br />

and the commodities cycle has recently been very<br />

volatile, but the world will always need minerals.<br />

<strong>Limpopo</strong> assets 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 />

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

history of South Africa have recently been undertaken<br />

in <strong>Limpopo</strong>. Both the Medupi power station<br />

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

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

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

The combined land area of <strong>Limpopo</strong>'s<br />

wnational, provincial and private game and nature<br />

reserves is 3.6-million hectares. According to the<br />

Premier’s office, the tourism sector employs about<br />

22 400 people.<br />

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

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

for the region. <strong>Limpopo</strong> has two World<br />

Heritage Sites: the Mapungubwe National Park (the<br />

19 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


SPECIAL FEATURE<br />

site of a 12th-century iron-age civilisation) and the<br />

Makapans Valley (Ndebele history and palaeontological<br />

exhibits).<br />

Industrialisation<br />

The official approval of Special Economic Zone<br />

status for Musina-Makhado in 2016 was closely followed<br />

by the decision of the <strong>Limpopo</strong> Provincial<br />

Government to apply for SEZ status for Tubatse.<br />

This marks a determined shift in economic policy<br />

towards promoting industrialisation and manufacturing<br />

through beneficiation.<br />

Heavy industries that have been identified as possible<br />

tenants for the Musina-Makhado SEZ include<br />

several that are dependent on the mining industry<br />

to supply feedstock – possible processing facilities<br />

that have been suggested to investors include plants<br />

for coking, ferrochrome and ferrosilicon production,<br />

pig-iron metallurgy, steel, stainless steel and lime.<br />

A proposed petrochemical zone in the SEZ might<br />

include a coal-to-liquids plant and a synthetic bitumen<br />

plant.<br />

A Chinese company has signed an agreement<br />

to manage the Energy and Metallurgical Cluster<br />

within the Musina-Makhado SEZ. Shenzhen Holmor<br />

Resources Holdings will invest about R40-billion to<br />

create the infrastructure for a range of private investors<br />

to come in and produce steel, ferrochrome, pig<br />

iron and the like.<br />

The Tubatse Platinum SEZ is even more closely<br />

related to the mining industry, as its name implies.<br />

According to the <strong>Limpopo</strong> Economic Development<br />

Agency (LEDA), 17 new mines were established in<br />

the greater Tubatse/Burgersfort/Steelport area between<br />

2001 and 2016, and a further 22 new mines<br />

are planned. The completion of the large new De<br />

Hoop Dam makes these plans possible.<br />

The focus at Tubatse will be on the beneficiation<br />

of platinum group metals (PGM), magnetite,<br />

vanadium and chrome. Some of the products suggested<br />

are: catalytic converters, platinum jewellery,<br />

hydrogen fuel cells and solar energy component<br />

manufacturing (wind turbines and PV modules).<br />

A Mining Supply Park is envisaged which will be a<br />

big boost for local businesses and suppliers. Getting<br />

local small, medium and micro-enterprises (SMMEs)<br />

engaged with and supplying to the mining sector<br />

is a goal of the provincial authorities. A <strong>Limpopo</strong><br />

Mining Forum has been proposed and the provincial<br />

government would like to see 30% of every<br />

contract issued on capital, consumables and services<br />

stay in the province, subject to their being a supplier<br />

who is able to fulfil the contract.<br />

Regions<br />

<strong>Limpopo</strong>’s dry, cattle-rearing, western areas contrast<br />

with the subtropical regions of the east where<br />

forestry thrives and the central regions where vast<br />

plantations produce 60% of the country’s tomatoes.<br />

The area north of the Soutpansberg Mountains is<br />

semi-arid. The Waterberg mountains stretch over<br />

5 000km² through the northern reaches of<br />

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% of<br />

the provincial GDP. The cultivation of citrus, potatoes<br />

and tomatoes is done on a large scale in the district.<br />

Polokwane is the province's main centre for industry,<br />

commerce, education and medical services.<br />

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

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

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

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

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

600 industrial enterprises of a smaller scale.<br />

Polokwane has good hotel and conferencing facilities.<br />

Park Inn by Radisson Polokwane is the newest<br />

hotel to open in the city. Nearby Moria attracts up to<br />

a million people every year, when the Zion Christian<br />

Church celebrates Easter.<br />

Greater Sekhukhune District<br />

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

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

The vast majority of households are rural (94%)<br />

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

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

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

20


SPECIAL FEATURE<br />

ZIMBABWE<br />

NAMIBIA<br />

BOTSWANA<br />

North West<br />

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

LIMPOPO<br />

Mpumalanga<br />

Gauteng<br />

SWAZI-<br />

LAND<br />

MOZAMBIQUE<br />

Northern Cape<br />

Free State<br />

LESOTHO<br />

KwaZulu-<br />

Natal<br />

Western Cape<br />

Eastern Cape<br />

vegetables, sunflower seeds and cotton on a large<br />

scale. Agriculture makes up 25% of the economy.<br />

Burgersfort is an important town because of<br />

platinum mining.<br />

Mopani District<br />

Giyani is the administrative capital of the district<br />

and is key to the local economy. The public sector is<br />

one of the largest employers and the key sectors are<br />

agriculture and mining. Mopani has an established<br />

food manufacturing 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 every year.<br />

A subtropical climate and fertile soils combine<br />

to make greater Tzaneen very productive in terms<br />

of fruit and vegetables. <strong>Limpopo</strong>’s second most<br />

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

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

mangoes, avocadoes and tomatoes. Forty sawmills<br />

operate in the area, drawing on the heavily forested<br />

hills around the city.<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. Game<br />

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

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

South Africa’s largest diamond producer.<br />

Thohoyandou is the administrative centre of<br />

Thulamela Local Municipality, Vhembe District<br />

Municipality and the University of Venda. The Ivory<br />

Route passes through the district. Other attractions<br />

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

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

and Nwanedi Provincial Park.<br />

Waterberg District<br />

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

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

Several towns in the district are located in the<br />

mineral-rich Bushveld Igneous Complex.<br />

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

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

tin and platinum at Mookgophong. The town of<br />

Lephalale is at the heart of the region’s coal-mining<br />

and power-generation 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 mark it as a popular<br />

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

golf estates.<br />

21 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


SPECIAL FEATURE<br />

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

Improving lives, and creating a conducive environment for investment.<br />

Improving the lives of the citizens of <strong>Limpopo</strong> is<br />

the overarching aim of the <strong>Limpopo</strong> Development<br />

Plan. The economic levers that can bring<br />

that improvement about present investment opportunities,<br />

particularly in the sectors that have been<br />

identified as key drivers of growth: mining, tourism<br />

and agriculture.<br />

The <strong>Limpopo</strong> Development Plan (LDP) is targeting<br />

three broad areas for improvement and development:<br />

socio-economic, infrastructural and institutional.<br />

Every department of the <strong>Limpopo</strong> Provincial<br />

Government has targets within the LDP which<br />

are translated into actionable programmes to be<br />

implemented within time-frames.<br />

Development is defined as broad-based improvements<br />

in the standard and quality of life for<br />

the people living throughout the province, to which<br />

all institutions (including government, business,<br />

labour and citizens) contribute. Increased job creation,<br />

higher incomes, better access to good public<br />

services and sound environmental management are<br />

the measures of the development plan.<br />

The plan, currently in its implementation<br />

phase, is further supported by a spatial investment<br />

framework in public and private sector<br />

infrastructure, an integrated public transport policy<br />

and land policies.<br />

This article focusses on the economic aspects<br />

and the potential of the LDP for private investors<br />

to participate.<br />

Key elements of the <strong>Limpopo</strong> Development Plan<br />

are: industrialisation (beneficiation of mining and<br />

agricultural products and produce); mining (local<br />

suppliers, improved training and access to sector<br />

for entrepreneurs); infrastructure development;<br />

agri-processing; SMME promotion; and ICT and the<br />

knowledge economy (establish a WAN footprint).<br />

Mining is currently the most important part of<br />

the provincial economy, contributing nearly 30% to<br />

GDPR. Many platinum mining developments on the<br />

eastern limb of the Bushveld Complex have spurred<br />

growth in that region. One of the goals of the LDP<br />

is to see more beneficiation from the mining sector,<br />

which will support the goal of further industrialising<br />

the province’s economy. Related to this is an<br />

emphasis on the manufacturing sector.<br />

In response, the two Special Economic Zones<br />

(SEZs) at Musina and Tubatse promote manufacturing.<br />

Specific manufacturing value-chains are identified<br />

for each area, based on the base mineral being<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

22


SPECIAL FEATURE<br />

mined. The LDP notes that it<br />

is also important for planners<br />

to “promote diversification and<br />

multi-skilling of the workforce,<br />

in order to mitigate the risks of<br />

shocks associated with commodity<br />

price dips and mine<br />

closures”.<br />

The following areas have<br />

been identified as priority<br />

zones for the industrialisation<br />

strategy: Polokwane, Lephalale,<br />

Tubatse, Tzaneen and the<br />

Makhado-Musina corridor.<br />

Strategic infrastructure<br />

In as much as the <strong>Limpopo</strong><br />

Development Plan is aligned<br />

with the broader National<br />

Development Plan, there are<br />

several national Strategic Infrastructure Projects<br />

(SIPs) which affect <strong>Limpopo</strong>.<br />

Three in particular will make a big impact, namely<br />

SIP 1 (Unlocking the Northern Mineral Belt with<br />

Waterberg as the Catalyst), SIP 6 (Integrated Municipal<br />

Infrastructure Project) and SIP 7 (Integrated Urban Space<br />

and Public Transport Programme). The last two influence<br />

developments in the provincial municipalities of<br />

Lephalale, Mopani, Sekhukhune, Capricorn, Vhembe<br />

and Polokwane.<br />

Other national SIPs of relevance relate to green<br />

energy, agri-logistics and rural infrastructure,<br />

regional integration and water and sanitation<br />

infrastructure.<br />

Within <strong>Limpopo</strong>, the Premier’s Infrastructure<br />

Coordinating Committee (PICC) is a vital component<br />

in the rollout of new infrastructure. There are<br />

several locally driven projects boosting the provincial<br />

economy and are being promoted within<br />

the context of this <strong>Limpopo</strong> Development Plan:<br />

construction of Nwamitwa Dam; raising of Tzaneen<br />

Dam wall; integrated Mooihoek Water Scheme; reticulation<br />

from De Hoop and Nandoni Dams; purified<br />

water supply to Bela-Bela, Modimolle and<br />

Mookgopong local municipalities; rural access roads<br />

in support of agriculture and tourism clusters; solar<br />

photovoltaic electricity generation; information<br />

and communication technology; infrastructure at<br />

Polokwane International Airport; nodal infrastructure<br />

for the priority growth points; and adequate maintenance<br />

for all existing infrastructure.<br />

Each of these infrastructure improvements will<br />

make life better for local residents, and they will also<br />

create a more conducive environment for investors.<br />

The <strong>Limpopo</strong> Department of Economic<br />

Development, Environment and Tourism (LEDET)<br />

is coordinating the province’s strategy to attract investors.<br />

Key to the plan is public investment into<br />

priority growth points in selected economic sectors.<br />

These cluster priorities underpin the economic part<br />

of the plan:<br />

• Coal: Petrochemical and Energy Cluster in Lephalale<br />

(Green City urban development, Growth Point)<br />

• Platinum Cluster in Mokopane and Tubatse (Mining<br />

Supplier Park)<br />

• Musina-Makhado Corridor Mining Cluster<br />

• Phalaborwa Mining Cluster (Copper, Phosphate<br />

and Magnetite)<br />

• Polokwane and Musina Logistical Hubs<br />

• Various Agricultural Clusters, based on Agri-parks<br />

• Various Tourism Clusters, in every district.<br />

Existing tourism assets include two UNESCO World<br />

Heritage Sites (Mapungubwe National Park and the<br />

Makapan Valley) and the iconic Kruger National Park.<br />

There is enormous potential for growth in cultural<br />

tourism where small villages could offer experiences<br />

based on traditional practices, unique arts and crafts<br />

and local cuisine.<br />

Cluster Value-Chain Development Strategies,<br />

including beneficiation opportunities, have been<br />

developed for each of these clusters by the LEDET.<br />

International relations is the responsibility of<br />

national government, but the LDP has flagged a<br />

number of potential areas for regional integration<br />

that would be mutually beneficial: relationships with<br />

Botswana and Zimbabwe relating to the Coal and<br />

Energy Cluster in Lephalale and the Mining Cluster<br />

in the Musina-Makhado Corridor; an agreement<br />

with Zimbabwe to improve the efficiency of the Beit<br />

Bridge Border Post, as part of the Logistics Cluster;<br />

and an agreement with Mozambique relating to<br />

tourism and nature conservation.<br />

23 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


Special Economic Zones<br />

Investor-friendly measures are attracting investors to designated growth<br />

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

Special Economic Zones are created in<br />

terms of the Special Economic Zones Act<br />

of 2014 (Act 16 of 2014). The act defines an<br />

SEZ as “geographically designated areas of<br />

the country that are set aside for specifically targeted<br />

economic activities, and supported through special<br />

arrangements and systems that are often different<br />

from those that apply to the rest of the country”.<br />

Lower corporate tax rates and duty-free imports<br />

are among the advantages that accrue to investors.<br />

Infrastructure at a Special Economic Zone (SEZ)<br />

supports the specific industry and attracts foreign<br />

investors with a strong focus on beneficiation of<br />

local produce or materials. SEZs are designed to<br />

attract investment, create jobs and boost exports.<br />

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

SEZ programme.<br />

The National Department of Trade and Industry<br />

(dti) is the lead agent in the creation of Special<br />

Economic Zones, which are part of the national<br />

Industrial Policy Action Plan (IPAP).<br />

Several incentives are available to investors in<br />

SEZs. These include tax breaks from the South<br />

African Revenue Service (SARS), subsidised interest<br />

rates from the Industrial Development<br />

Corporation (IDC), subsidies for employees<br />

earning below a certain level and subsidies for<br />

the training of the workforce, incentives and<br />

grants from the dti, and incentives from national<br />

electricity utility Eskom.<br />

Other benefits might include a building allowance,<br />

employment incentives and the fact that an<br />

SEZ is a customs-controlled area. Within the dti’s<br />

Manufacturing Competitiveness Enhancement<br />

Programme, there is a Green Energy Efficiency<br />

Fund, all of which are designed to make investment<br />

in the zones more attractive, and to bolster<br />

the country’s manufacturing sector.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

24


SPECIAL FEATURE<br />

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

will result in the mine producing until the 2040s.<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 the<br />

Musina-Makhado SEZ where they will operate the<br />

mineral 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 />

Provision in being made in the planning phase<br />

for light, medium and heavy industry at the SEZ.<br />

A petrochemical zone is envisaged which could<br />

contain any or all of the following facililties:<br />

• coal-to-liquids plant<br />

• coking coal plant and power generation<br />

• methanol plant<br />

• synthetic bitumen plant<br />

• plasma waste gasification plant<br />

• water treatment plant.<br />

Tubatse SEZ<br />

Musina-Makhado SEZ<br />

In July 2016 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-Makhado is strategically located<br />

near the border of Zimbabwe and on the Great<br />

North Road which links South Africa to the broader<br />

Southern African region.<br />

The location of the Musina-Makhado SEZ, with<br />

links to Zimbabwe, Botswana and Mozambique,<br />

promotes the Trans-<strong>Limpopo</strong> Spatial Development<br />

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

of the SEZ.<br />

Other sectors to be concentrated on include<br />

agri-processing (Foskor has a plant in nearby<br />

Phalaborwa), energy and mineral beneficiation.<br />

Exxaro has coal- mining operations in the north and<br />

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

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

Tubatse is in the Sekhukhune District Municipality<br />

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

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

of platinum group metals (PGM) 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>.<br />

Phase one of the SEZ project would see a 280ha<br />

site developed to accommodate:<br />

• a mining suppliers park<br />

• light manufacturing<br />

• heavy manufacturing<br />

• logistics<br />

• a solar energy cluster<br />

• a PGM beneficiation cluster.<br />

Among the products that might be produced at<br />

the SEZ are catalytic converters, hydrogen fuel cells,<br />

chemotherapeutic agents, wind turbine blades,<br />

platinum jewellery and photo-voltaic solar modules.<br />

Metal processing that holds potential includes the<br />

conversion of magnetite to pig iron and steel, magnetite<br />

to vanadium pentoxide and waste to titanium.<br />

25 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


FOCUS<br />

LEDA: Enterprise<br />

Development and<br />

Finance Division<br />

Enabling business to grow while reducing risk.<br />

The Enterprise Development and Finance Division (EDFD) within<br />

the <strong>Limpopo</strong> Economic Development Agency (LEDA) provides<br />

financial products in support of businesses which are starting out<br />

or which need funds to tackle a project.<br />

Funding is available in a wide range of sectors, including manufacturing,<br />

agri-business (agri-processing), construction, mining and mining<br />

beneficiation, tourism, business support services, retail, professional<br />

services, transport services and ICT.<br />

Projects in the following sectors do not qualify for LEDA products:<br />

primary agriculture; infrastructure development; residential and commercial<br />

property; explorations; product development and licensing;<br />

non-profit organisations(NPOs) and Trusts.<br />

Among the most important criteria which the Enterprise Development<br />

and Finance Division uses to assess the desirability of a business or project<br />

are the possible developmental impact in terms of new jobs being<br />

created or a facility being built, proof that there is a viable market for the<br />

product or service about to be offered and profitability.<br />

Core funding products<br />

• Asset / equipment finance<br />

• Procurement / bridging finance<br />

• Working capital finance<br />

• Start-up finance<br />

• Franchise finance<br />

Although LEDA is active in each of these product divisions, the most<br />

popular in recent years has been procurement/bridging finance option.<br />

This financial product requires no collateral and is linked to the business<br />

owner having a government contract. This reduces risk for all parties.<br />

“There are three parties involved,” says Loan Proposals and Origination<br />

Manager Chavani Khosa. “There is the employer government department<br />

that issues the contract for work, the client (or business undertaking<br />

the work) and LEDA. All three parties sign the agreement which states<br />

that the whole amount must be paid to LEDA when the client has<br />

completed the job.”<br />

TEN IMPORTANT<br />

STEPS TO SECURE<br />

LEDA FUNDING:<br />

1. Safety of the facility<br />

2. Background of the client<br />

3. Financial position of the<br />

client<br />

4. Needs of the client<br />

5. Security / collateral<br />

6. Desirability and<br />

developmental impact<br />

7. Demonstrate the market<br />

8. Profitability<br />

9. Cash flow available for<br />

debt service<br />

10. Source of loan<br />

repayment<br />

The client needs to show LEDA<br />

that he or she has a purchase order<br />

from a government department.<br />

That will unlock funding to allow<br />

work to begin on the project and<br />

the client will then submit regular<br />

progress reports to LEDA. Once the<br />

job is done and the full payment<br />

paid to LEDA, the loan amount and<br />

interest is subtracted by LEDA and<br />

the balance paid out to the client<br />

or contractor.<br />

In the case of an application<br />

being received for a working<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

26


FOCUS<br />

capital finance product, the client<br />

must prove that they have a<br />

market for the product or service.<br />

In addition, says Khosa, “LEDA<br />

will go and verify that this is a legitimate<br />

business with an on-site<br />

inspection.” Then money can be<br />

released to buy stock or building<br />

materials.<br />

LEDA has <strong>Business</strong> Origination<br />

Officers who take clients through<br />

the qualification criteria required<br />

when an application is made. Any<br />

one of these types of business<br />

ownership models can apply:<br />

sole trader; close corporation;<br />

private company; co-operative.<br />

Partnerships, policies<br />

and profit<br />

LEDA has entered into several<br />

partnerships as it extends and<br />

diversifies its funding portfolio.<br />

These include large companies<br />

such as Foskor, the Dwarsriver<br />

mine near Steelport, provincial<br />

government departments, various<br />

municipalities, ABSA bank<br />

and the Industrial Development<br />

Corporation (IDC).<br />

The credit policy and the<br />

Credit Procedure Manual are under<br />

consideration by the approval<br />

authority. During the previous financial<br />

year, LEDA had a return<br />

on investment in the Enterprise<br />

Development and Finance<br />

division of R4-million.<br />

NEW BUSINESS<br />

Projected cash flow statement –<br />

12 months<br />

Projected financial statements –<br />

3 years<br />

Interim financial statements<br />

Current budget<br />

Bank statement<br />

Criteria for funding<br />

• The business must be<br />

registered<br />

• Tax clearance certificate from<br />

the relevant authorities is<br />

required<br />

• Non-refundable application<br />

fee. (R500 - R5 000)<br />

• Management must comply<br />

with the business statues of<br />

South Africa<br />

• Viable business plan or<br />

company profile:<br />

EXISTING BUSINESS<br />

Cash flow projections – 12 months<br />

Financial statements - 3 years<br />

Projected financial statements -<br />

3 years<br />

Interim financial statements<br />

Current budget<br />

Bank statements (3 months)<br />

BUSINESS AND TECHNICAL TRAINING<br />

OFFERED BY LEDA EDFD<br />

• Public service supply chain procedure and related processes<br />

• Development of business plan<br />

• <strong>Business</strong> customer relations<br />

• <strong>Business</strong> marketing<br />

• Understanding income tax<br />

• Project management<br />

• Financial management<br />

• <strong>Business</strong> cost determination and pricing<br />

• Automotive<br />

• Construction and building related vocation skills including,<br />

bricklaying, plastering, carpentry, plumbing, electrical and<br />

welding<br />

• Hospitality<br />

• Farming and agricultural training<br />

BUSINESS<br />

SUPPORT OFFERED<br />

BY LEDA EDFD<br />

• Co-operative development<br />

• <strong>Business</strong> incubation<br />

• <strong>Business</strong> advisory services<br />

• <strong>Business</strong> registration and<br />

statutory compliance<br />

• Development of business<br />

plans and profiles<br />

• <strong>Business</strong> linkages<br />

• Mentoring and counselling<br />

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FOCUS<br />

Risima Housing and<br />

Finance Corporation<br />

Providing access to housing and unlocking<br />

value in rural areas.<br />

The Risima Housing and Finance Corporation, a subsidiary of <strong>Limpopo</strong><br />

Economic Development Agency (LEDA), exists to provide<br />

housing finance for citizens of <strong>Limpopo</strong>. The word Risima is derived<br />

from the Tsonga word for “value”.<br />

The CEO of the organisation, Dr Shima Nokaneng, says that the particular<br />

target market is the lower-income group, who “sometimes have<br />

challenges getting approvals from commercial banks”.<br />

A primary focus for Risima is the “gap” market. This refers to prospective<br />

home owners who earn too much to qualify for state assistance (for example,<br />

RDP housing) but not enough to qualify for mortgage loans. Typically,<br />

this covers incomes ranging from about R3 500 to R15 000 per month.<br />

Partnerships<br />

Two important programmes are run by Risima in conjunction with<br />

national and provincial government departments.<br />

Government Employees Housing Scheme (GEHS): Together with<br />

the National Department of Public Service and Administration, Risima<br />

arranges for a non-mortgaged financial<br />

product to assist government<br />

employees get a foot on the<br />

property ladder.<br />

Dr Nokaneng reports that a<br />

default rate of less than 2% proves<br />

the value of such a scheme: “Our<br />

advantage is that we target government<br />

employees which helps<br />

to reduce risk. Applicants have<br />

to be employed with a good<br />

credit risk and then we check affordability<br />

and match that with<br />

documentation such as payslips.”<br />

Finance Linked Individual<br />

Subsidy Programme (FLISP): In<br />

partnership with the <strong>Limpopo</strong><br />

Department of Cooperative<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

28


FOCUS<br />

Affairs, Human Settlements and<br />

Traditional Affairs (COGHSTA),<br />

Risima distributes grants to applicants<br />

who qualify for money<br />

to make up the shortfall between<br />

an asking price and what the applicant<br />

can afford or if a deposit<br />

is needed but the applicant can’t<br />

fund it. The gap market is the<br />

target market for FLISP.<br />

The subsidy is being rolled out<br />

in the Polokwane suburb of Bendor,<br />

Lephalale and other regions of the<br />

province. This comprises threebedroomed<br />

houses and semidetached<br />

townhouses.<br />

Mining houses: A new area of<br />

cooperation is imminent in that<br />

Risima and a number of mining<br />

houses such as Exxaro, Amplats<br />

and Northam (at Thabazimbi) have<br />

been in discussion about working<br />

together to deliver housing.<br />

Preparatory work has been done<br />

and concrete steps should be seen<br />

in the fourth quarter of <strong>2017</strong>.<br />

Expansion<br />

Risima’s mandate extends across<br />

each of the five regions of the<br />

province of <strong>Limpopo</strong> and it<br />

currently has four offices. As of<br />

October <strong>2017</strong>, the company head<br />

office will be in the provincial<br />

capital, Polokwane, on the corner<br />

of Rabie and Van Rensburg<br />

streets. “Our new offices will be<br />

bigger,” says Dr Nokaneng, “and<br />

we will be more accessible to<br />

customers and stakeholders.”<br />

New offices are also to be<br />

established in areas such as<br />

Makhado (Louis Trichardt),<br />

Lephalale, Musina and Modimolle<br />

to further widen the company’s<br />

footprint.<br />

This geographic expansion is proof that demand is on the rise and<br />

that Risima’s more aggressive approach is paying off. The large coal<br />

mine and new power station at Lephalale mean that a further project<br />

comprising 2 700 units is in the works in that area.<br />

LOANS GRANTED<br />

Region<br />

Loans granted<br />

Capricorn 61 653 927<br />

Mopani 10 587 032<br />

Sekhukhune 9 174 632<br />

Vhembe 14 998 829<br />

Waterberg 14 439 211<br />

Total 110 853 631<br />

GOALS 2016/17<br />

Risima 2016/17 Target Achieved<br />

Home loans 190 191<br />

Loan approvals R78.9-million R110.8-million<br />

Contribution to LEDA income 5.7% 7.5%<br />

29<br />

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FOCUS<br />

The company has loans to the value of R432.4-million as at 31 March<br />

<strong>2017</strong>. “Because of the expansion of our footprint we are in the process<br />

of raising more capital,” reports Dr Nokaneng. The CEO stresses the<br />

point that Risima is self-sustaining, with no grant paid by the Provincial<br />

Treasury. A clean audit was also achieved in the most recent financial<br />

reporting period. “Our profit for the most recent financial year was<br />

R32-million.”<br />

Innovation<br />

An innovative approach to unlocking the value of land in traditional<br />

areas may be on the cards if the National Home Builders Registration<br />

Council (NHBRC) approves a plan related to the conversion of Permissions<br />

to Occupy (PTO). Where there are no title deeds it is difficult to establish<br />

value, get loans or use land as collateral for buying anything else. Risima<br />

sees potential in converting PTOs to title deeds and is looking at deep rural<br />

areas such as Vhembe and Sekhukhune. Even people who might work in<br />

cities don’t want to give up their ties to traditional land, but they also want to<br />

get certainty of ownership and the right to leverage that ownership if they<br />

RISIMA HOUSING FINANCE CORPORATION<br />

Risima Housing Finance Corporation (Pty) Ltd was originally<br />

known as Gazankulu Finance Company (Pty) Ltd, established<br />

in April 2000. Risima is a wholly owned subsidiary of LEDA; it<br />

falls under Schedule 3D of the Public Finance Management Act<br />

1 of 1999 (PFMA) as a provincial public entity, established by<br />

<strong>Limpopo</strong> Department of Economic Development, Environment<br />

and Tourism in terms of the <strong>Limpopo</strong> Development Corporation<br />

Act 5 of 1994 (LDCA).<br />

Risima was established for the purpose of giving effect to<br />

Section 3 (1) of the LDCA which requires LEDA, among others, to<br />

provide housing in <strong>Limpopo</strong>. Risima has been created to respond<br />

to the need to create access to home loan finance to all residents<br />

of <strong>Limpopo</strong>, irrespective of where they live, in so doing: assist<br />

LEDA to achieve its objective of job creation and empowerment<br />

in <strong>Limpopo</strong> through housing construction, in support of the<br />

Provincial Employment, Growth and Development Plan.<br />

Key focus areas are to:<br />

• To provide access to home loan finance and property development<br />

finance to residents of the province in both rural and<br />

urban areas<br />

• To create shareholder value and facilitate employment<br />

creation and economic growth<br />

• Ensure the economic, social and environmental sustainability<br />

of Risima.<br />

want to. The Risima scheme will be<br />

limited to government employees,<br />

thus reducing risk to the lender.<br />

Risima financial<br />

products<br />

• Residential building construction:<br />

for clients to build a house<br />

• Purchasing of existing residential<br />

houses: clients buy existing<br />

houses<br />

• Purchasing of sites: clients purchase<br />

vacant sites<br />

• Extensions and renovations:<br />

clients improving their houses<br />

• Switch bonds: moving<br />

a bond from another<br />

financial institution<br />

to Risima<br />

• Installation of solar water heating<br />

systems<br />

• Additional loan: clients with<br />

equity on their properties can<br />

apply for additional loans<br />

• Access bond: available to clients<br />

who pay more than the<br />

required instalment on their<br />

home loans. Clients can apply<br />

for the funds when they<br />

need them.<br />

CONTACT INFO<br />

Lebowakgomo (head<br />

office)<br />

Tel: +27 15 633 4732 or<br />

+27 15 633 4700<br />

Polokwane (regional office)<br />

Tel: +27 15 295 5120<br />

Ritavi (regional office)<br />

Tel: +27 15 303 1731<br />

Thohoyandou (regional<br />

office)<br />

Tel: +27 15 962 4900<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

30


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

Transitioning from a resource-based economy to a<br />

knowledge economy.<br />

FOCUS<br />

<strong>Limpopo</strong> Province is taking active steps to develop its information<br />

and communications technology (ICT) sector to the point<br />

where it can take the provincial economy to a higher level<br />

and improve the delivery of government services.<br />

The agency charged with achieving these aims is <strong>Limpopo</strong><br />

Connexion. Baldwin Ramosobane, Acting CEO: <strong>Limpopo</strong> Connexion,<br />

gives the broad aims of the agency in these terms: “A key measure is<br />

to say how would <strong>Limpopo</strong> Connexion transform <strong>Limpopo</strong> from a<br />

resource-based province to a knowledge-based province.”<br />

The Knowledge Economy refers to the use of knowledge to produce<br />

economic benefits through tangible and intangible assets. The concept<br />

refers to the manner in which various high-technology businesses,<br />

especially computer software, telecommunications and virtual services,<br />

as well as educational and research institutions, could contribute<br />

to a country's economy. Creating a strong and innovative ICT sector is<br />

a vital step on the way to establishing a knowledge-based economy.<br />

World leaders are increasingly adapting to the fact that a Fourth<br />

Industrial Revolution is under way. The first was powered by<br />

water and steam, the second used<br />

electricity and introduced mass<br />

production and the third revolution<br />

in the global economy related<br />

to automation, electronics and<br />

computers. Now a Fourth Industrial<br />

Revolution is combining a range of<br />

scientific breakthroughs at great<br />

speed: central to the concept is<br />

connectivity and access to data.<br />

This new economy is creating<br />

new jobs and creating the potential<br />

for jobs in the future in sectors<br />

that don’t yet exist. Only by having<br />

a strong and adaptable communications<br />

and data network can a<br />

regional economy take advantage<br />

of these changes as they occur.<br />

31<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


FOCUS<br />

Ramosobane cites aspects such as digitalisation, robotics, 3D printing,<br />

green solutions and big data as elements of the new economy that<br />

are driven through ICT. As a consequence, one of the key objectives<br />

of <strong>Limpopo</strong> Connexion is the development of broadband telecommunication<br />

infrastructure for the province.<br />

Planners are looking beyond the ICT sector in isolation. As<br />

Ramosobane notes, “There have to be ways of using technology in<br />

different sectors of the economy, because ICT is all pervasive. Whether<br />

it’s finance, whether it’s roads, or it's construction or mining, ICT and<br />

technology will be used in those sectors.”<br />

With <strong>Limpopo</strong>’s great strength as a resource-based economy, what are<br />

the ways that ICT can further develop the mining and agricultural sectors?<br />

Miners can cut costs enormously if they use up-to-date data- collection<br />

methods rather than traditional methods. Data-driven research can<br />

help to make sure that communities benefit to a greater degree when<br />

beneficiation of minerals or agricultural produce takes place.<br />

And Ramosobane believes that there is great potential beyond<br />

the resource economy: “When you talk about tourism, how do we sell<br />

<strong>Limpopo</strong> globally without actually going there, but using innovation<br />

systems and technology?”<br />

Strategic objectives<br />

Open access broadband telecommunications network infrastructure:<br />

Government, business, rural communities, students and citizens<br />

at large should all be able to access affordable broadband infrastructure<br />

services. This initiative should empower community members to<br />

participate in the mainstream economy. Says Ramosobane, "Any person<br />

in the province, be it plumbers, be it students at the universities,<br />

learners and educators at high schools, ordinary people, households;<br />

they should all be able to have access to the affordable broadband<br />

infrastructure services and cheaper technologies."<br />

A science and technology park (STP): An STP is a space, physical or<br />

cyberspatial, managed by a specialised professional team that provides<br />

value-added services, whose aim is to increase the competitiveness<br />

of its region or territory of influence by stimulating a culture of quality<br />

and innovation among its associated businesses and knowledge-based<br />

institutions, organising the transfer of knowledge and technology from<br />

its sources to companies and to the marketplace, and by actively fostering<br />

the creation of new and sustainable innovation-based companies<br />

through incubation and spin-off processes. It must attract international<br />

ICT companies to the province where they can interact and partner with<br />

academic institutions and local businesses. The international companies<br />

can originate (and pay for) research projects that are directly<br />

relevant to the work they are doing, rather than doing research for<br />

research’s sake. Provide direct links between the private sector, government<br />

and universities.<br />

Free and open source software<br />

(FOSS): Providing free<br />

and open source software<br />

to the citizens of <strong>Limpopo</strong><br />

cuts the cost of ICT, thus enabling<br />

small businesses to gain access to<br />

the advantages of the Knowledge<br />

Economy without having to pay<br />

high prices for licensed software<br />

packages.<br />

A provincial FOSS strategy<br />

has been adopted and<br />

several pilot programmes<br />

rolled out.<br />

These programms include<br />

systems such as a Wildlife Trade<br />

Permit System, Tourism Guide<br />

Registration Systems, a Consumer<br />

Affairs System, a Farmer’s Portal<br />

and Mobile Application, and an<br />

eHeritage Database and Portal<br />

among others.<br />

<strong>Limpopo</strong> Connexion, in partnership<br />

with Tirelo Bosha-Public<br />

Service Improvement Facility, a<br />

bilateral programme between<br />

Belgium and South Africa<br />

facilitated by the Department of<br />

Public Service and Administration<br />

(DPSA), has implemented an open<br />

source-based offline content<br />

project in 15 schools previously<br />

without Internet connectivity.<br />

With feedback from the <strong>Limpopo</strong><br />

Department of Education and<br />

principals from schools, the project<br />

will be expanded by a further<br />

grant from the Belgium government<br />

to 45 more schools in the<br />

Province. There was significant<br />

improvement in the matric results<br />

due to the introduction of<br />

the system.<br />

Training in FOSS is being undertaken<br />

in partnership with<br />

SUSE, a large international open<br />

source software company.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

32


FOCUS<br />

ICT Skills and SMME<br />

Development to promote small,<br />

medium and micro-enterprises<br />

(SMMEs): The objective is to ensure<br />

that small enterprise owners<br />

and entrepreneurs are able to<br />

create and grow their businesses.<br />

With access to broadband and<br />

to free and open source software,<br />

SMME owners can be “part of<br />

the global village”, according to<br />

Ramosobane. Not only can ICT<br />

empower SMMEs and entrepreneurs<br />

to improve their businesses<br />

in terms of marketing, ordering<br />

and stock-taking, but there are<br />

myriad opportunities for SMMEs<br />

where ICT is central to the business<br />

itself: web design, e-commerce<br />

and online multi-media are<br />

some examples.<br />

A study has shown that 75%<br />

of ICT SMMEs are in the Capricorn<br />

and Waterberg districts. Better access<br />

for other areas is one of the<br />

goals of <strong>Limpopo</strong> Connexion. To<br />

incubate, support and accelerate<br />

start-up companies, <strong>Limpopo</strong><br />

Connexion wants to ensure<br />

that the core location between<br />

the major corporation and the<br />

research institution and government<br />

will support the commercial<br />

research items. From within<br />

the Science and Technology<br />

Park there will be opportunities<br />

for mentorship and access to a<br />

range of information for SMME<br />

operators.<br />

Broadband for all<br />

Rolling out broadband within<br />

<strong>Limpopo</strong> is a key responsibility of<br />

<strong>Limpopo</strong> Connexion. A priority<br />

goal of the <strong>Limpopo</strong> Provincial<br />

Government is to establish a secure,<br />

shared, open access and affordable broadband Wide Area<br />

Network (WAN) within <strong>Limpopo</strong>.<br />

Broadband infrastructure also forms part of the strategic objectives<br />

identified in the Department of Communication Strategic Plan, the<br />

National Information Society and Development Plan, the Green Paper<br />

on the National Integrated ICT Policy, and e-Government initiatives.<br />

Both the <strong>Limpopo</strong> Development Plan (LDP) and the Provincial Inclusive<br />

Information Society Strategy outline specific ICT objectives.<br />

Several investment opportunities for the private sector are associated<br />

with the rollout of broadband in <strong>Limpopo</strong>. “<strong>Limpopo</strong> Province<br />

will be a key opportunity for entrepreneurs and investors,” reports<br />

Ramosobane. There are the opportunities for both large and small<br />

companies, “The major companies will do the construction of the big<br />

fibre infrastructure and then the small companies will actually connect<br />

households through last mile connectivity.”<br />

Phase one of the rollout will see the city of Polokwane, the Capricorn<br />

District and provincial key points connected. This phase of the project<br />

will kick in during the third quarter of <strong>2017</strong>.<br />

Phase two will see broadband connectivity expanded to cover the<br />

whole province of <strong>Limpopo</strong>. Given the geographic and economic<br />

footprint of the province, a large number of companies, government<br />

departments and businesses will actually be covered by phase one.<br />

At this stage, phase one is envisaged to last for a period of three<br />

years, but Ramosobane says that the active involvement of the private<br />

sector may hasten progress:<br />

"As government, we want to work with the private sector. We want<br />

to say, the private sector must understand what is the vision of the<br />

<strong>Limpopo</strong> Connexion and <strong>Limpopo</strong> Province in terms of broadband.<br />

If they continue working with us, we believe that with the private<br />

sector we can achieve the goal of connecting all of <strong>Limpopo</strong> quicker<br />

than we thought."<br />

33<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


ADVERTORIAL<br />

Making it easier to do business with Nedbank<br />

Whole-view <strong>Business</strong> Banking<br />

Loderick Lubisi, Nedbank Provincial General Manager for Retail and<br />

<strong>Business</strong> Banking for Mpumalanga and <strong>Limpopo</strong>, explains how<br />

Nedbank can help business owners in the region.<br />

on what’s most important to you – running your<br />

business,’ says Lubisi.<br />

In line with our new brand proposition encouraging<br />

clients to see money differently, our Mpumalanga<br />

and <strong>Limpopo</strong> agriteams are committed to providing<br />

key support, as well as advisory and business services<br />

to all roleplayers involved in the agrispace in both<br />

provinces. We will share our financial expertise<br />

and play a role in advancing profitable, sustainable<br />

practices throughout the agricultural production and<br />

consumption value chain.<br />

There is good news for Mpumalanga<br />

and <strong>Limpopo</strong> business owners and<br />

entrepreneurs seeking a unique banking<br />

experience: Nedbank <strong>Business</strong> Banking<br />

has business managers, located across<br />

both provinces, specialising in commercial<br />

industries as well as the agricultural sector.<br />

Lubisi says his team is ready to assist clients with<br />

professional advice, industry-specific solutions<br />

and a comprehensive range of financial products<br />

and services.<br />

‘At Nedbank <strong>Business</strong> Banking we believe that you<br />

need a financial partner who not only understands<br />

your circumstances and aspirations, but also provides<br />

you with relevant solutions and a banking experience<br />

that is hassle-free. This allows you to concentrate<br />

We recognise that farmers today face many<br />

challenges and that to remain competitive they<br />

continually have to improve and adopt best practices<br />

and new technologies.<br />

‘We encourage you to see money differently with<br />

Whole-view <strong>Business</strong> Banking’, says Lubisi.<br />

‘We are also involved in a number of initiatives with<br />

the public sector, ensuring that such partnerships<br />

support provincial government goals in respect of job<br />

creation and growing the economy,’ Lubisi concludes.<br />

Should you be interested in taking your business to the<br />

next level, please call Loderick Lubisi on<br />

+27 (0)13 759 4910, send an email to<br />

loderickl@nedbank.co.za or<br />

visit www.nedbank.co.za.


ADVERTORIAL<br />

Nedbank <strong>Business</strong> Bundle is a game changer<br />

with savings and personalised services for<br />

small enterprises<br />

The new <strong>Business</strong> Bundle from Nedbank is a game changer for small<br />

enterprises in Mpumalanga and <strong>Limpopo</strong>, offering the best value for<br />

money when compared to rival offerings.<br />

With the country’s challenging economic<br />

environment, the <strong>Business</strong> Bundle not only<br />

offers you personalised banking services,<br />

but also critical tools to save – with up to<br />

40% savings on monthly banking fees –<br />

contributing directly to the bottomline at a<br />

time when every cent counts.<br />

In line with Nedbank’s new brand proposition to see<br />

money differently, the <strong>Business</strong> Bundle resonates with<br />

the bank’s commitment to do good by promoting<br />

small enterprises.<br />

‘As a bank for small businesses we are committed<br />

to partnering with entrepreneurs to help grow their<br />

businesses. As such, Nedbank is always looking at<br />

ways in which we can help unlock the value of our<br />

clients’ businesses. We support their business growth<br />

journeys by providing practical tools to help them<br />

run their businesses,’ says Loderick Lubisi, Nedbank<br />

Provincial General Manager, Retail and <strong>Business</strong><br />

Banking for Mpumalanga and <strong>Limpopo</strong>.<br />

‘Small businesses are the lifeblood of our economy.<br />

Nedbank has, over the years, instituted various<br />

interventions aimed at giving support to the smallbusiness<br />

sector.’<br />

Trust us to protect your business against<br />

everyday risk<br />

Stella Tedeschi, Regional Manager of Broker<br />

Channels for Mpumalanga and <strong>Limpopo</strong>, says<br />

Nedbank Insurance is not a one-size-fits-all<br />

business.<br />

Nedbank Insurance has evolved into a business<br />

that provides integrated insurance to individual<br />

and business clients. Our offering comprises<br />

comprehensive short-term insurance solutions,<br />

life insurance solutions and investments.<br />

Nedbank Insurance provides a comprehensive<br />

offering of short-term products on behalf of<br />

blue-chip insurers. Should you be interested in<br />

expert advice on the type of cover that is exactly<br />

right for your business needs, look no further.<br />

Nedbank has a team of specialists ready to provide you with<br />

information necessary to allow you to make an informed<br />

decision. For more information call Stella Tedeschi on<br />

+27 (0)12 436 7659, send an email to<br />

stellat@nedbankinsurance.co.za,<br />

or visit www.nedbank.co.za.<br />

To see how Nedbank can help your small business reach its<br />

goals call Loderick Lubisi on +27 (0)13 759 4910, send an<br />

email to loderickl@nedbank.co.za or<br />

visit www.nedbank.co.za/business.<br />

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial<br />

Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).


OLD MUTUAL ENABLING<br />

POSITIVE FUTURES<br />

IN LIMPOPO<br />

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to<br />

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MEET LAWRENCE GABELA<br />

<strong>Limpopo</strong> Provincial Management Board, Chairperson<br />

“Plans remain ideas until they are executed.”<br />

<strong>Limpopo</strong> is a growing region with lots of business investment opportunities such as the<br />

Waterberg and Musina districts.<br />

As PMB CHAIRPERSON I undertake to:<br />

• Commit to serve the Board according to the mandate and the vision of the Board constitution and take the<br />

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GET IN TOUCH: email <strong>Limpopo</strong>PMB@oldmutual.com<br />

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socio-economic challenges through investing in:<br />

• Small business development and entrepreneurship<br />

• Youth unemployment through skills training<br />

• Strategic education initiatives<br />

• Caring for vulnerable communities<br />

In 2016 alone the Old Mutual Foundation invested<br />

R25 686 172 in various community projects across our<br />

nation (actual grant funding payments made during<br />

2016).<br />

In <strong>Limpopo</strong> the Old Mutual Foundation invested a<br />

total of R2 864 500 across its various community<br />

empowering portfolios in the region.<br />

Our staff are the hearts and hands of Old Mutual<br />

in the communities we operate in, and we support<br />

our staff volunteers through various programmes.<br />

In 2016, 136 organisations have received a total of<br />

R2 692 500 as a result of staff volunteering efforts.<br />

INVESTMENTS I SAVINGS I PROTECTION<br />

ombds 6.<strong>2017</strong> L10479.6<br />

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDY IN LIMPOPO<br />

Old Mutual encourages and supports staff to get engaged in community projects by<br />

volunteering their personal time or contributing financial support. Through the Staff Payroll<br />

Giving programme, employees can support social causes through monthly donations from their<br />

salaries. Their donations are further matched rand-for-rand by the Old Mutual Foundation and<br />

then distributed to deserving organisations, such as the Elim Hlanganani Care for the Aged in<br />

<strong>Limpopo</strong>. Funding of R500 000 was recently provided towards the holistic care of the frail and<br />

aged in the area. One of the ways assistance is given is through the training of home-based<br />

caregivers to attend to the needs of the elderly. As Director Florence Khosa says, “We ensure that<br />

no-one in our community is left alone without help.”<br />

The MASISIZANE FUND focuses on enterprise<br />

development and job creation to help alleviate poverty<br />

and improve food security in South Africa. This is<br />

achieved through encouraging entrepreneurship and<br />

capacity development and financing of micro, small<br />

and medium enterprises (SMMEs). Preference is given<br />

to SMMEs with 51% plus ownership by women, youth<br />

or people with disabilities.<br />

The Masisizane Fund disbursed R147m worth of funds<br />

in 2016 through soft loans in the three high-impact<br />

sectors and facilitated the creation of 862 jobs against<br />

a target of 625 jobs.<br />

In <strong>Limpopo</strong> Masisizane disbursed funds of<br />

R14 013 840 across four clients creating 68 new jobs.<br />

MASISIZANE CASE STUDY IN LIMPOPO<br />

Sasesikani Co-operative<br />

Sasesikani Co-op is situated in Mahonisi Village in<br />

the Vhembe District Municipality. The co-op was<br />

established in 2004 and is managed by a board of<br />

directors of the co-op that consists of nine members<br />

who are all contributing actively in the business. The<br />

co-op has created eight jobs for the people around the<br />

village (excluding themselves).<br />

Most of the members are from the village and not<br />

very literate. However, there have been changes in<br />

management since the previous General Manager,<br />

Mr Khoza was involved. There are now more clearly<br />

defined roles in the business as there is a treasurer,<br />

an administrator and a production manager. The other<br />

members are supervising transport, cleaning of chicken<br />

houses and the process as a whole.<br />

The co-op members have gone for training in egg<br />

production, marketing and business management.<br />

Despite all of this there is still a need for further<br />

training in business management and administration to<br />

effectively run this business.<br />

Masisizane Fund Loan R2.16 m<br />

Number of jobs<br />

17 jobs facilitated<br />

WANT TO HELP BUILD THE PLATFORM<br />

FOR FINANCIAL INCLUSION?<br />

Financial education is the gateway to financial<br />

inclusion. The Old Mutual Financial Wellbeing<br />

programme promotes financial literacy and awareness<br />

across market segments in line with the Financial Sector<br />

Charter. We offer highly effective financial education<br />

and support programmes to help South Africans take<br />

control of their finances.<br />

Between 2007 and end of 2016 more than 589 808<br />

people were reached through face-to-face workshops<br />

held for communities as well as employees in the public<br />

and private sector.<br />

In 2016 more than 88 000 individuals participated in<br />

our On the Money workshops nationally, with 24 674<br />

participating in our Fin360 programmes.<br />

In <strong>Limpopo</strong> 7 687 individuals were trained in our<br />

Old Mutual On the Money programmes.<br />

For more information, contact Lawrence<br />

Gabela at <strong>Limpopo</strong>PMB@oldmutual.com


SPECIAL FEATURE<br />

KEY SECTORS<br />

Overviews of the main economic<br />

sectors of <strong>Limpopo</strong><br />

Agriculture 40<br />

Mining 44<br />

Energy 60<br />

Water 61<br />

Transport and logistics 62<br />

ICT 68<br />

Banking and financial services 76<br />

Development finance and<br />

SMME support 78<br />

Education and training 84<br />

Tourism 86<br />

IMAGE COURTESY OF DE BEERS VENETIA MINE<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

40


LISTING<br />

41 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Agriculture<br />

The strong agri-processing sector still has massive potential to grow in <strong>Limpopo</strong>.<br />

Agriculture has been identified as a key driver of the regional<br />

economy by the Provincial Government of <strong>Limpopo</strong>. Agriprocessing<br />

in particular is being targeted as a means of<br />

increasing the levels of manufacturing in the province.<br />

The percentage contribution of <strong>Limpopo</strong> agriculture to national<br />

agriculture is 7.6% although its contribution to provincial GDP is<br />

just 2.3%. Agri-processing has enormous potential to expand in<br />

every sub-sector.<br />

The establishment of agri-parks and co-operatives and support for<br />

youth in taking to farming are among the key initiatives that provincial<br />

government is implementing in support of these goals.<br />

The agricultural riches of the province are well known and its fruits<br />

and vegetables form an important part of South Africa’s export basket.<br />

Companies like ZZ2 are major contributors to the country’s<br />

annual production of 120 000 tons of avocadoes. Of the current crop,<br />

SECTOR INSIGHT<br />

Thousands of hectares are<br />

being planted with avocadoes<br />

and macadamias.<br />

• Agri-parks will help<br />

emerging farmers.<br />

• The Industrial<br />

Development Corporation<br />

(IDC) is investing in citrus<br />

farming.<br />

about half is currently produced<br />

in two <strong>Limpopo</strong> regions, Letaba<br />

and Tzaneen. Exports to the US<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

42


OVERVIEW<br />

and Europe, which constitute almost<br />

all of South Africa’s foreign<br />

market for avocadoes, are rising<br />

exponentially.<br />

In response to this demand,<br />

and the potential of the Chinese<br />

market, almost 1 000ha per year<br />

of new land is being planted with<br />

avocadoes in South Africa.<br />

The same amount of new<br />

macadamia planting is under<br />

way every year, according to the<br />

Southern African Macadamia<br />

Growers’ Association (SAMAC),<br />

adding to the existing 19 000ha.<br />

The other two really big sellers<br />

are mangoes and tomatoes.<br />

<strong>Limpopo</strong> grows three-quarters of<br />

South Africa’s mangoes and twothirds<br />

of its tomatoes.<br />

The Waterberg District produces<br />

large quantities of red<br />

meat, Capricorn has potatoes in<br />

abundance, Vhembe in the north<br />

specialises in citrus and subtropical<br />

fruits, Mopani has those fruits<br />

too – and the Mopani worm.<br />

The Sekhukhune region in the<br />

south-east is a grain-producing<br />

area. One of the best-known<br />

products of the region is Amarula<br />

cream liqueur.<br />

Initiatives<br />

Five Agri-parks will be established<br />

in <strong>Limpopo</strong>, as part of<br />

the R2-billion plan of the national<br />

Department of Rural<br />

Development and Land Reform<br />

to roll out services that will help<br />

farmers get better access to market<br />

and storage facilities.<br />

Support in terms of equipment<br />

hire and information will be<br />

available. Markets where farmers<br />

can sell their produce and processing plants such as abattoirs will form<br />

part of the parks and farmers will gain access to market information and<br />

bigger markets through the Rural Urban Marketing Centre.<br />

Training will also be on offer at the parks and the aim is to get local<br />

farmers owning 70% of the facility.<br />

The University of Venda and the University of <strong>Limpopo</strong> are working<br />

on research into crop and seed improvements, particularly related to<br />

climate change adaptation.<br />

The provincial government gave support to 3 000 households<br />

to produce their own food in their backyard gardens during the<br />

2016/17 financial year and hopes to increase this number to over<br />

5 000 households.<br />

The Ilima/Letsema conditional grant, which strives to improve<br />

productivity of emerging farmers in <strong>Limpopo</strong>, disbursed funds to 47<br />

projects benefiting a total of 2 333 beneficiaries. A total of 680 farmers<br />

were assisted in gaining access to markets. In the <strong>2017</strong>/<strong>18</strong> financial year,<br />

the Ilima/Letsema grant total of R67-million will support 90 projects, 15<br />

538 emerging farmers: 2 7<strong>18</strong> smallholder farmers, 12 791 subsistence<br />

farmers and 29 black commercial farmers.<br />

Other programmes were badly affected by drought conditions, the<br />

Fetsa Tlala programme, for example, having to be scaled back to work<br />

only with farming areas with enough irrigation water. Having come<br />

through the long-term drought in the early months of <strong>2017</strong>, <strong>Limpopo</strong><br />

and several other northern provinces then had to deal with the effects<br />

of the Fall Army Worm. It was detected early and strong measures were<br />

taken to mitigate its effect.<br />

The Phethwane Integrated Aquaculture Project stalled after a bright<br />

start in 2011, but a Fishery Imbizo held at the Tompi Seleka College<br />

of Agriculture in Marble Hall aimed to resuscitate the project. The<br />

national Deputy Minister of Agriculture visited the project in late 2015<br />

and encouraged local fishers to aim to supply 500 tons of fish. Iran was<br />

mentioned as a potential market for the fish.<br />

The Tompi Seleka College is itself in the spotlight, having been<br />

reopened in 2015. Together with Madzivhandila College (in the Thula-<br />

Thula Municipality in Vhembe District), enrolment has increased from<br />

140 in 2015 to 222 in 2016. <strong>Limpopo</strong> is trying to grow its own farmers.<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 centre of<br />

South Africa.<br />

Within <strong>Limpopo</strong>, the Mooketsi Market has used its central position<br />

to boost trade in farming produce. The market is at the crossroads<br />

of two busy routes: Polokwane to Giyani (R81) and Tzaneen to Louis<br />

Trichardt (R36-N1).<br />

43 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

The market is owned by ZZ2, FGX (which facilitates transactions<br />

between buyers and sellers) and the RSA Group, which is the market<br />

agent and has about 30% of market share of fresh produce markets<br />

in South Africa.<br />

The Vhembe District in the far north and the Letaba Valley in the<br />

eastern Mopani District are major contributors to the Johannesburg<br />

Fresh Produce Market, with <strong>Limpopo</strong> growers as a group contributing<br />

about 45% of the produce sold at Johannesburg Fresh Produce Market,<br />

Africa’s biggest market.<br />

ZZ2 is the major brand of Bertie van Zyl (Pty) Ltd, which produces<br />

160 000 tons of tomatoes per year. The company also specialises in<br />

onions, both of which appear in different forms under 12 brand names.<br />

The company has large farms in four areas of the province: Mooketsi,<br />

Politsi, Polokwane and Musina; it also operates in the Western and<br />

Eastern Cape. The company has 8 000 full-time employees and is<br />

increasing its production of avocadoes and litchis.<br />

Westfalia is another huge enterprise, part of the Hans Merensky<br />

Group, and it is world’s largest avocado grower. It also produces significant<br />

quantities of mango, litchi, citrus and macadamia and has three<br />

agri-processing plants in the province.<br />

Avocado oil is processed in Tzaneen, juice and avocado purée<br />

is made at Politsi and dried mangoes are produced at Hoedspruit.<br />

Westfalia has large farms in the Letaba River Valley (Constantia Estate),<br />

the Hoedspruit district (Marieskop Estate) and in the Mooketsi Valley<br />

(Goedgelegen Estate). Organic avocados are also farmed in KwaZulu-<br />

Natal Province.<br />

The Westfalia Nursery produces more than 130 000 trees every year.<br />

Westfalia Technological Services has six teams researching areas such<br />

as pathology, horticulture and genetic resources.<br />

Relatively new entries into commercial farming are former cooperatives,<br />

and they have proved successful. The two most active in<br />

<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<br />

annual production to 195 000 tons of soya beans and 60 000 tons<br />

of sunflower, the result of a<br />

capital injection of R<strong>18</strong>0-million<br />

in 2011. Greenway Farms supplies<br />

about 45% of the fresh-market<br />

carrots consumed in Southern<br />

Africa under the Rugani brand. A<br />

R6-million carrot combineharvester<br />

is the only one of its<br />

kind in South Africa.<br />

Letaba Citrus Processors is a<br />

part of the African Realty Trust,<br />

which also owns two large farms:<br />

Letaba Estates and Richmond<br />

Estates. The Rhodes Food Group<br />

has a canned vegetable facility<br />

near Louis Trichardt.<br />

Cotton is grown at Loskop,<br />

North and South Flats, Wiepe and<br />

Dwaalboom/Thabazimbi. There<br />

are 2 855ha under irrigation and<br />

a further 326ha of dry land operations.<br />

<strong>Limpopo</strong> provides about<br />

32% of the national harvest.<br />

Citrus<br />

Most of South Africa’s citrus and<br />

subtropical fruit comes from the<br />

eastern part of <strong>Limpopo</strong>. Soft and<br />

time-sensitive fruits, like avocados,<br />

are exported out of the Port<br />

of Cape Town and transported to<br />

that city by truck. Citrus is taken to<br />

the ports of Durban or Maputo.<br />

The Industrial Development<br />

Corporation (IDC) is getting behind<br />

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

Falling under the IDC’s Agro-<br />

Industries Strategic <strong>Business</strong> Unit,<br />

a funding agreement has been<br />

signed with Naranja Packers<br />

which will see new farms established,<br />

established farms converted<br />

to different cultivars and<br />

the packing house expanded. The<br />

brands Clemengold and Sweet C<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

44


OVERVIEW<br />

are marketed under Indigo Fruit<br />

Farming, which is wholly owned<br />

by ANB Investments. The packing<br />

house in Burgersfort processes up<br />

to 600 large crates of fruit a day<br />

in season, with each crate containing<br />

about 350kg of fruit – or<br />

slightly more than 2 000 tons.<br />

Citrus exports to the EU have<br />

grown steadily. In volume, exports<br />

to the EU in 2015 accounted for<br />

40% of total citrus exports (30%<br />

oranges, 66% mandarins, 24%<br />

lemons), up from 36% in the<br />

prior season.<br />

A new entrant to the export<br />

market is the GOGO Group, located<br />

in the Loskop Valley, where<br />

intensive citrus cultivation takes<br />

place. Exports will be sent to the<br />

United States of America through<br />

parent company EKM Exports.<br />

The Zebediela Citrus Estate<br />

has been bought by the Bjatlhadi<br />

community with the support of<br />

the <strong>Limpopo</strong> Local Economic<br />

Development Programme, and<br />

the focus has shifted from bulk<br />

supply to producing smaller,<br />

consumer-friendly quantities.<br />

Livestock<br />

Government planning at provincial<br />

level includes the promotion<br />

of red and white meat “clusters”<br />

along all the development corridors<br />

identified in the province.<br />

This includes the promotion of<br />

hygienic practices, the establishment<br />

of small-scale abattoirs<br />

and assistance in marketing of<br />

products.<br />

The province has about onemillion<br />

beef cattle, about 7.5%<br />

of the national herd. A new<br />

indigenous breed of cattle has been developed called the Pinz²yl, from<br />

breeding Pinzgauer and Nguni stock. This is an initiative of the same<br />

farming group that grows the ZZ2 tomato, with the name derived from<br />

the famous European breed and the name of the farmer who started<br />

it all, Mr 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 of<br />

the market.<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 />

<strong>Limpopo</strong> Department of Agriculture: www.lda.gov.za<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 />

South African Sugar Association: www.org.za<br />

45 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Mining<br />

Special economic zones open up possibilities for investors in processing.<br />

IMAGE COURTESY OF DE BEERS VENETIA MINE<br />

Diamonds in the north, platinum and chrome in the west and<br />

east and coal just about everywhere – <strong>Limpopo</strong> Province has<br />

extraordinary mineral wealth. The mining sector routinely<br />

contributes up to 30% of regional GDP but this has fallen back<br />

somewhat with reduced platinum operations in response to a weak<br />

global market for the commodity.<br />

Although there are efforts under way to try to diversify the <strong>Limpopo</strong><br />

economy to reduce the dependence on the mineral sector, there is a<br />

parallel effort to use the underground riches of the province to stimulate<br />

the growth of the manufacturing sector. A series of measures have been<br />

developed by the <strong>Limpopo</strong> Economic Development Agency (LEDA)<br />

to create the circumstances where processing plants and products<br />

can add value to the minerals. A large part of strategy centres around<br />

Special Economic Zones (SEZs), a nationally certified geographic area<br />

where special concessions and tax breaks apply, intended to encourage<br />

inward investment.<br />

The Provincial Government of <strong>Limpopo</strong> wants to see the supply chain<br />

of mines heavily weighted in favour of local businesses and particularly<br />

small, medium and micro-enterprises (SMMEs). The government has<br />

committed to upgrading informal settlements around mining towns.<br />

Major investments in <strong>Limpopo</strong> include an ongoing project by De<br />

Beers in Musina to convert its Venetia mine from an open-pit mine to<br />

SECTOR INSIGHT<br />

Carbon-neutral mining is the<br />

goal for researchers at De<br />

Beers’ Venetia mine.<br />

• Impala’s refinery is to be<br />

powered by fuel cells.<br />

• Exxaro has launched<br />

its vision for mining<br />

sustainably.<br />

• Ivanplats’ new Platreef<br />

mine may become the<br />

biggest PGM mine in the<br />

world.<br />

a vertical shaft mine and a multibillion<br />

new platinum mine project<br />

led by a Canadian firm (in partnership<br />

with Japanese companies).<br />

Silicon Smelters (the largest<br />

charcoal producer in Africa) and<br />

Anglo Platinum’s smelting facility,<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

46


OVERVIEW<br />

one of three run by the company,<br />

are both located in Polokwane.<br />

Northam Platinum’s metallurgical<br />

complex at its Zondereinde mine<br />

processes Merensky and UG2 ores<br />

separately.<br />

Platinum<br />

With a depressed platinum price,<br />

platinum miners are hoping that<br />

demand from the fuel cell industry<br />

will replace the decline in<br />

demand for catalytic converters.<br />

Impala Platinum (Implats)<br />

has an interest in two big operations<br />

on the eastern limb of<br />

the Bushveld Igneous Complex.<br />

Marula (in which Implats is a<br />

73% shareholder) is in <strong>Limpopo</strong><br />

province, about 50km north of<br />

Burgersfort. South of the same<br />

town, in Mpumalanga, Implats<br />

(49%) is in a joint venture with<br />

African Rainbow Minerals (ARM)<br />

at the Two Rivers mine. The mine<br />

has a concentrator plant and has<br />

a life-of-mine offtake agreement<br />

with Impala Refining Services.<br />

Impala announced in early<br />

<strong>2017</strong> that it intends to take the<br />

refinery (in Springs) off the Eskom<br />

grid, and power the refinery<br />

using fuel cell technology. Power<br />

will come from an 8MW Doosan<br />

Fuel Cell.<br />

Even though the Twickenham<br />

mine of Anglo American Platinum<br />

(Amplats) has been put on care<br />

and maintenance, lots of work<br />

is going on there. Amplats is<br />

testing trackless mechanised<br />

mining in that hope that automation<br />

will bring down costs sufficiently<br />

to make it economical to<br />

mine again.<br />

Despite uncertainty on the global market, Northam Platinum<br />

has continued to buy assets. In 2015 it bought Everest South from<br />

Aquarius, a move that will allow it to consolidate operations with<br />

its adjacent property, Booysendal South. Northam, which also has<br />

assets in the North West province, aims to produce 850 000oz of<br />

PMGs from 2022.<br />

A court ruling in February <strong>2017</strong> has opened the way for Ivanhoe<br />

to build its Platreef Project on the northern limb of the Bushveld<br />

Igneous Complex. Local communities objected to the proposed<br />

multi-billion project because it was said the mine would cause<br />

ancestral graves to be moved. R70-million has been commited to<br />

the first phase.<br />

In July, Ivanhoe released a feasibility study that was positive about<br />

prospects for mining for platinum group elements, nickel, copper<br />

and gold. Ivanplats, the subsidiary of the Canadian company, will<br />

run the mine in the Waterberg District Municipality near Mokopane<br />

south-west of Polokwane. Ivanhoe has a 64% stake in Ivanplats with<br />

10% owned by a group of Japanese companies including ITOCHU<br />

Corporation and Japan Gas Corporation.<br />

If the mine achieves the projected production rate of 12 Mtpa<br />

with 1.2-million ounces of PGM, it will rank as the biggest mine in<br />

the world. Engineering companies engaged in the project include<br />

FLSmidth (winding equipment), Aveng (shaft one) and Murray &<br />

Roberts (shaft two).<br />

47 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Coal<br />

<strong>Limpopo</strong> contributes 4% of coal mining in South Africa, according to<br />

the National Department of Mineral Resources, but it seems likely that<br />

within the next three decades, the province will be supplying about<br />

half of South Africa’s coal. <strong>Limpopo</strong>’s Waterberg coal field is estimated<br />

to contain about 75-billion tons of coal.<br />

Supplying coal to power-producer Eskom has for many<br />

years been part of the bread-and-butter income for coal mining<br />

operators. In 2015, Exxaro supplied Eskom with nearly<br />

30% of the coal it needed to run its power stations, about<br />

33-million tons of coal.<br />

Exxaro spent several billion rand expanding its Grootgeluk mine<br />

(which has 3 200 employees) in the expectation that it would supply<br />

coal to Eskom’s Medupi power station. However, construction of the<br />

giant power station has been severely delayed, with the result that<br />

Exxaro is now having to look to export its coal. The plan was for the<br />

mine to supply Medupi with 14.6-million tons of coal every year for 40<br />

years. Exxaro is exploring new technologies at Lephalale, working on<br />

the possibilities of Underground Coal Gasification (UCG).<br />

The diversified resources company recently launched the New<br />

Exxaro Tomorrow (NXXT) programme, which is part of the company’s<br />

2030 vision that has a strong focus on sustainability.<br />

Sibanye Gold has acquired a 51% stake in Waterberg Coal,<br />

further evidence that it intends looking after its own power<br />

supply, at least to some extent.<br />

Coal of Africa is active in <strong>Limpopo</strong>, with the Vele colliery (coking and<br />

thermal) in the far north of the province and the Greater Soutpansberg<br />

Project /MbeuYashu, which includes CoAL’s Makhado Project (coking<br />

and thermal coal).<br />

Diamonds<br />

Anglo American is investing R2-billion to expand production at<br />

its diamond mine near the town of Musina. Venetia Mine is by far<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.dme.gov.za<br />

South African Institute of Mining and Metallurgy:<br />

www.saimm.co.za<br />

the most important part of De<br />

Beers’ South African operation,<br />

accounting for 3.1-million of<br />

the 5.4-million carats recovered<br />

by the company from its six<br />

operations.<br />

Good progress is being made<br />

to convert the mine from an<br />

open-pit mine to an underground<br />

operation, a project that will extend<br />

the life of the mine to the<br />

middle of the 2040s. The project<br />

will employ more than 2 000 people<br />

at its peak period. The first<br />

diamonds to come from the new<br />

mine are expected in 2021 with<br />

the underground mine becoming<br />

the only source of diamonds<br />

in 2023.<br />

The Venetia mine is also the<br />

site of some ground-breaking<br />

research that the De Beers group<br />

is putting in to finding ways to<br />

store carbon by mineralising<br />

kimberlite tailings. It is thought<br />

that kimberlite has the potential<br />

to be carbonised and thus able to<br />

store carbon. The goal is carbonneutral<br />

mining.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

48


INTERVIEW<br />

Localisation brings<br />

business opportunities<br />

Benford Mokoatle, Venetia Mine General Manager, details<br />

how new policies are creating jobs in the Musina area.<br />

Benford Mokoatle<br />

Will the underground mine project affect production levels?<br />

When you go underground you reduce waste but the ore mined will<br />

remain constant, if not marginally improve. The carats will marginally<br />

improve from the current production profile.<br />

What plans do you have to transition your workforce to<br />

the underground environment?<br />

The skills required for the underground operation will be completely<br />

different from the current skill levels and requirements. We can<br />

accommodate those who have an aspiration of going underground<br />

by retraining them.<br />

BIOGRAPHY<br />

Benford Mokoatle has 21 years<br />

of mining experience. He began<br />

his professional career in<br />

the Wits Basin and spent time<br />

in West Wits (Western Deep<br />

Levels and East Mine), the<br />

Free State (Tshepong Mine)<br />

and Vaal Reefs before joining<br />

De Beers. He has worked at<br />

Kimberley Mines, Oaks Mine,<br />

Voorspoed Mine and Venetia<br />

Mine. At Venetia Mine, Benford<br />

is responsible for leading and<br />

directing Venetia Mine and its<br />

leadership team.<br />

Does the investment in Venetia underground mine signify<br />

investor confidence?<br />

I have no doubt about that. This is a project of a minimum of<br />

US$2-billion. This shows that the investors have confidence first and<br />

foremost in the country, and secondly in the project itself. It also says<br />

that there is still a market in diamond sales.<br />

Does the mine impact on socio-economic development?<br />

In our region, for every employee that is employed there’s indirectly<br />

10 people that benefit. We are on a drive to localise businesses and<br />

suppliers that we do business with. We will continue to create partnerships<br />

and invest in the local economy.<br />

Are local companies benefitting?<br />

When we started with the BEE drive we needed to be doing business<br />

with empowered or black-owned suppliers. Now that we are at 88% or<br />

90% BEE credentials, we need to localise and do business with entities<br />

that originate from our labour-sending area. So far we have rolled out<br />

about 35 local business opportunities, 50 to 60% of those are sourced<br />

from our labour-sending areas such as Musina and Blouberg.<br />

49 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


INTERVIEW<br />

New shaft sinking<br />

method prioritises<br />

safety<br />

Head of De Beers Venetia Underground Project,<br />

Christoff Kühn, reports on progress in one of<br />

<strong>Limpopo</strong>’s biggest projects.<br />

Christoff Kühn<br />

BIOGRAPHY<br />

Christoffel Kühn has Master's<br />

degrees in mechanical engineering<br />

and project management<br />

from the universities of<br />

Potchefstroom and Pretoria<br />

which he has put into practice<br />

in Southern Africa, South<br />

America and Australia. Starting<br />

as an engineer on a gold mine,<br />

he has since delivered several<br />

capital projects in the mining industry.<br />

His experience includes<br />

engineering and project management,<br />

project development<br />

and techno-economic evaluation.<br />

Kühn’s previous post<br />

was head of the project management<br />

support and review<br />

department at Anglo American.<br />

What is the scope of De Beers’ investment into the<br />

Venetia Underground Project?<br />

We committed US$2-billion in replacing the open mine with a new<br />

underground mine. This will approximately double the life of the<br />

mine to the middle of the 2040s.<br />

When do you expect to start producing diamonds?<br />

We start intersecting the kimberlite orebodies in the 2020s. The first<br />

significant production will be in 2021, on a smaller component of<br />

the mine. The open pit will halt all operation in 2023 and from then<br />

on, the underground will become the main source. The open pit is<br />

currently mining three distinct kimberlite pipes. The underground<br />

mine will mine two of those.<br />

How many jobs have been created?<br />

We have about 750 people on the project. At our peak, the numbers<br />

will increase to about 2 000 to 2 500 people – these will decrease as<br />

the project execution comes to an end.<br />

The underground mine will not significantly change the number<br />

of De Beers’ employees on the mine, although there might be different<br />

contractors that are required on the underground operation<br />

from those we used on the open pit because of the changed nature<br />

of the mining.<br />

We forecast that we will stay at similar employment levels as before.<br />

We currently have approximately 1 350 employees, excluding contractors.<br />

The situation with contractors is very dynamic, and changes<br />

as workload alters. It is not consistent work over the life of the mine.<br />

Are local businesses involved?<br />

Some portions of the project are unique, and require established<br />

experienced contractors to deliver. We have gone on a campaign<br />

to try to build to establish as many local SMMEs as possible. There<br />

are a few success stories, such as our partnership with a company<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

50


INTERVIEW<br />

IMAGES COURTESY OF DE BEERS VENETIA MINE<br />

called Renuna for accommodation. Smaller local<br />

building contractors are also helping us to develop<br />

structures on site.<br />

How long is the tunnel from the surface to<br />

the mine?<br />

We are developing three access points. The decline is<br />

2.5km and the vertical depth is about 400m. The decline<br />

assists with developing the top of the mine. The<br />

decline will be completed this month and we have<br />

started with lateral development towards ore bodies.<br />

The two vertical shafts, which are about 550m<br />

below the surface, will eventually be 1km in depth.<br />

At what speed are the vertical shafts<br />

being developed?<br />

We are currently achieving approximately 40-45m<br />

per month.<br />

What are some of the key challenges you<br />

face in this project?<br />

Some of the key challenges we have is obtaining<br />

specialist skills required for shaft sinking. We are<br />

competing with a project in Mongolia and one in<br />

Zambia. Obtaining the correct skills set within the SA<br />

environment is tricky, including the skills set<br />

that we require for the operational phase of the<br />

underground mine.<br />

Are there any new techniques being used<br />

on the project?<br />

The shaft sinking methodology we are employing<br />

through Murry & Roberts is the first of its kind in<br />

South Africa. We awarded it to Murray & Roberts<br />

based on the safety associated with its method.<br />

The old method did concrete lining concurrently<br />

with development. We do everything in line, making<br />

sure we don’t expose people to people working<br />

on top of them. This affects the advance rate,<br />

but it is a significantly safer method.<br />

From a safety record perspective, we are doing<br />

well compared to other similar projects in SA.<br />

Shaft sinking is typically associated with severe<br />

accidents. While we have not yet achieved our goal<br />

of zero harm, we have progressed significantly on<br />

our journey.<br />

51 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


FOCUS<br />

De Beers Venetia Mine<br />

Community Development<br />

A partner in poverty alleviation and job creation.<br />

Venetia Mine lies approximately 80km west of Musina and<br />

36km north-east of Alldays in the <strong>Limpopo</strong> Province. The<br />

mine is located in the Musina Local Municipality of the Vhembe<br />

District, off the R521 road between Alldays and Pondrift,<br />

approximately 540km north of Johannesburg. The majority of the mine<br />

employees are from the Blouberg and Musina municipalities, which<br />

are therefore its primary labour sending areas.<br />

A total of 40% of the workforce comes from Musina while 21% of the<br />

workers come from Blouberg, with a further 15% coming from other<br />

parts of <strong>Limpopo</strong> and the balance from further afield.<br />

The Mine Community Development Programme for Venetia Mine<br />

is based on De Beers Consolidated Mine’s Community Development<br />

strategy and the Venetia Mine Socio-Economic Assessment, which<br />

focused on the possible impacts that Venetia Mine would have on the<br />

communities of Vhembe and Capricorn District Municipalities, and<br />

more specifically the two host municipal areas, Blouberg and Musina.<br />

The programme is integrated<br />

with the Integrated Development<br />

Plans (IDPs) of the Blouberg and<br />

Musina municipalities and demonstrates<br />

a commitment to the<br />

sustainable upliftment of these<br />

communities.<br />

The legacy of Venetia Mine<br />

will stretch over and above the<br />

direct economic benefits that<br />

the mine will bring to the region.<br />

Venetia Mine aims to become<br />

fully integrated within the local<br />

communities and to be a partner<br />

in poverty alleviation and job<br />

creation.<br />

PROJECT NAME AREA BUDGET ACTUAL STATUS<br />

<strong>Limpopo</strong> Rural Schools Programme Blouberg R3 000 000 R5 488 432 Completed<br />

Student Financial Aid Scheme<br />

Maths and Science Programme<br />

Enterprise Development Zimele<br />

Musina and<br />

Blouberg<br />

Musina and<br />

Blouberg<br />

Musina and<br />

Blouberg<br />

R300 000 R245 723 Completed<br />

R300 000 R257 700 Completed<br />

R400 000 R1 058 827.13 Completed<br />

Teacher Subvention Musina R1 800 000 R3 028 478 Completed<br />

Building Materials Project Musina R600 000 R222 300 Completed<br />

Ventilation Pipes Project Blouberg R600 000 R159 600 Completed<br />

TOTAL R 9 000 000 R 10 461 060.13<br />

VENETIA MINE COMMUNITY DEVELOPMENT PROJECTS (2016)<br />

NB: OVER AND ABOVE THE PROJECTS LISTED IN THE TABLE ABOVE, DE BEERS VENETIA MINE ALSO ASSISTED BLOUBERG MUNICIPALITY<br />

WITH THE GRADING OF COMMUNITY ROADS IN THE TAAIBOSCHGROET AREA AT A TOTAL COST OF R32 429.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

52


<strong>Limpopo</strong> Rural Schools<br />

Programme<br />

De Beers Venetia Mine has entered<br />

into a ground-breaking<br />

partnership with the <strong>Limpopo</strong><br />

Department of Education,<br />

through the <strong>Limpopo</strong> Education<br />

Trust, to provide infrastructure to<br />

needy schools within the Venetia<br />

Mine labour sending areas. Both<br />

partners contributed R3-million<br />

each towards schools that were<br />

jointly identified. Since its inception<br />

in 2006, this partnership has<br />

resulted in 13 schools around<br />

Musina and Blouberg areas<br />

being supported.<br />

The latest project under this<br />

partnership was the construction<br />

of Mphengwa Secondary School<br />

in Eldorado Village in Blouberg.<br />

The project started in March 2016<br />

and was completed in December<br />

2016. The scope of this project<br />

included the building of 12 new<br />

classrooms, an administration<br />

block, provision of water and<br />

fencing at the school. Prior to this<br />

intervention, the situation at the<br />

school was dire, with infrastructure<br />

that was dilapidated and on the<br />

verge of collapse.<br />

FOCUS<br />

located in Venetia Mine’s labour sending communities of Blouberg or<br />

Musina, they must be academically deserving and/or be dependants<br />

of Venetia Mine employees that are in the bargaining unit category. A<br />

learner must be registered with a public tertiary institution.<br />

Maths and Science Programme<br />

Venetia Mine introduced a Mathematics and Science Programme to<br />

support learners in the Musina and Blouberg areas. In 2016, the focus<br />

of this programme was on Grade 12 learners from 10 high schools to<br />

help them improve their pass rate in these subjects. In 2016, De Beers<br />

Venetia Mine partnered with the University of Venda (UNIVEN). A total<br />

of 282 learners benefitted from this insightful programme. The partnership<br />

with UNIVEN started in 2016, and has seen the Maths and Physical<br />

Science Grade 12 results in the Bahananwa Circuit improve by 3% in 2016.<br />

Enterprise Development Zimele<br />

The Blouberg and Musina Local Municipalities have agreed to support all<br />

their future entrepreneurial projects through the De Beers Zimele Venetia<br />

Mine <strong>Business</strong> Hub. The hub aims to create sustainable jobs by providing<br />

low-interest business loans paired with significant mentorship, coaching<br />

and skills development for small to medium-sized enterprises (SMMEs).<br />

Since its establishment it has created over 495 jobs in the community.<br />

Teacher Subvention<br />

The primary objective for this programme is to provide local schools in<br />

the Musina area with funding for them to employ additional educators<br />

and administration personnel. Schools currently benefitting are Musina<br />

High School, Eric Louw High School and Messina Primary School. Many<br />

of Venetia Mine employees’ children are enrolled at these schools.<br />

Student Financial Aid<br />

Scheme<br />

This scheme provides learners<br />

with educational grants of up to a<br />

maximum of R15 000 per student,<br />

per annum, towards their tuition<br />

fees. This amount is paid directly<br />

into the tertiary institution’s account.<br />

For learners to qualify for<br />

this grant they must come from<br />

a financially destitute family<br />

53 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


FOCUS<br />

De Beers Venetia Mine Economic<br />

Development and Procurement<br />

At the heart of building local businesses.<br />

De Beers Venetia Mine is adopting a multi-faceted approach<br />

to supporting and incubating local businesses. From partnerships<br />

with agencies and business development training<br />

programmes and joint ventures, the mining company is<br />

working to ensure that economic development and job creation<br />

become a reality for the wider community of businesses and entrepreneurs<br />

in which the mine operates.<br />

The company’s goal is to incubate 50 local businesses in <strong>2017</strong> and<br />

to continue on that trajectory into 20<strong>18</strong> and 2019. A partnership with<br />

the Small Enterprise Development Agency (Seda) has already paid<br />

off in the sense that detailed training sessions are empowering local<br />

business people. One such participant, Buto Tabengwa from Musinabased<br />

B-Graphics and IT Solutions, reported, “The training has been<br />

mind-blowing. This group has certainly been empowered through the<br />

knowledge they have downloaded – well done to De Beers for putting<br />

local business on the map.” Topics dealt with in training included costing<br />

and pricing, access to funding and banking as well as joint ventures<br />

and cash-flow management. Gregory Petersen, De Beers Consolidated<br />

Mines Supplier and Enterprise Development Manager, explains the<br />

rationale, “By collaborating with industry leaders such as Seda we<br />

maximise the impacts of our Enterprise Development Programme<br />

and deliver smart, meaningful services to local companies which,<br />

with coaching and support, could<br />

become suppliers to Venetia Mine<br />

in the future.”<br />

Addressing a <strong>Business</strong><br />

Breakfast at the Diamond Club<br />

in March <strong>2017</strong>, Venetia Mine<br />

Assistant General Manager,<br />

Hendrick Matjila, discussed local<br />

procurement as well as supplier<br />

and enterprise development<br />

strategies. “<strong>Business</strong> cannot exist<br />

in isolation,” he said. “At Venetia<br />

Mine we are cognisant of the fact<br />

that we cannot sustain our operation<br />

without ploughing back in<br />

our communities. We know that if<br />

we are to achieve our goal of leaving<br />

a lasting legacy beyond the<br />

life of Venetia Mine, it starts with<br />

supporting local enterprises and<br />

developing our entrepreneurs<br />

and small businesses.”<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

54


FOCUS<br />

Guests, who included members<br />

of the Musina <strong>Business</strong><br />

Chamber and Musina Local<br />

Municipality, representatives of<br />

the Beitbridge and Zoutpansburg<br />

Chambers of Commerce and the<br />

Musina Youth in <strong>Business</strong> Forum,<br />

discussed collective ways to turn<br />

Musina around together.<br />

Strategy<br />

Venetia Mine’s procurement team<br />

has successfully completed the<br />

following initiatives in recent<br />

months:<br />

De Beers community fair:<br />

Crowds of local business people<br />

and entrepreneurs visited<br />

the Supplier Development and<br />

Zimele exhibits, giving them an<br />

opportunity to understand the<br />

requirements for doing business<br />

with Venetia.<br />

Community SMS database: The<br />

Community Fair creates the opportunity<br />

to build a database of<br />

over 100 potential suppliers in<br />

Musina and Blouberg who the<br />

mine can now communicate<br />

with directly regarding business<br />

opportunities.<br />

Opportunities specifically<br />

targeting local business: HDSAowned<br />

entities are sought which<br />

can provide products and services<br />

such as supplying kitchen<br />

consumables, electric fencing,<br />

rodent and pest control, manpower<br />

required during shutdowns<br />

and emergency repairs<br />

and ad hoc work in the treatment<br />

plant, repairs on tyre protection<br />

chains, cleaning services and alien<br />

plant control.<br />

Community-focussed marketing<br />

strategy: A comprehensive<br />

campaign has been launched on local radio stations Mohodi FM<br />

and Musina FM, local newspapers such as the Polokwane Observer<br />

and the Northern Gazette and on posters at local municipalities,<br />

tribal offices as well as public areas such as post offices.<br />

Supplier Development Programme<br />

At the end of the second quarter of <strong>2017</strong>, a total of 226 local businesses<br />

had expressed their interest in being involved through the<br />

mine’s Local Procurement Drive. Of these, 58 companies were<br />

shortlisted and fifteen local companies were awarded contracts,<br />

with another seven to follow shortly afterwards.<br />

Thirty-seven of the targeted 50 opportunities had already been<br />

launched by July, and a further seven were due to be rolled out in<br />

the third quarter. The focus for these vendor opportunities is in:<br />

• road maintenance and construction<br />

• repairs to bund walls<br />

• cleaning at the Venetia Primary Crusher<br />

• Venetia Mine takeaway canteen<br />

• supply of LDV tyres, batteries and rims<br />

• small civil works at Venetia Underground Project<br />

• construction of the HTTS building at Venetia Underground<br />

Project.<br />

Six local companies have an established relationship with<br />

the Venetia Mine and they are already enrolled in the Supplier<br />

Development Programme. As companies win contracts, they are<br />

added to the programme. Entrepreneurs or companies who have<br />

been unsuccessful in application or in tendering are encouraged to<br />

participate in the De Beers Incubator or other initiatives. The Seda<br />

programme is an example of such a support programme.<br />

Bussing Empowerment Deal<br />

The Venetia Mine and VM Diamond Transport have called for locally<br />

owned businesses in the Musina area to put their names forward<br />

to be 40% shareholders in bus companies covering the Musina and<br />

Blouberg areas. An empowerment initiative aimed at Historically<br />

Disadvantaged South Africans (HDSA), the plan is for an eight-year<br />

contract to transport workers to the mine at the centre of a share<br />

purchase agreement. Technical training will be provided by VM<br />

Diamond Transport as part of a two-year business development<br />

programme and the local partners are expected to become majority<br />

shareholders within a five-year period.<br />

Similar opportunities in the broader transport sector include a<br />

partnership with Bridgestone, Global Wheel and Willard to establish<br />

a locally owned distribution centre for tyres, rims and batteries that<br />

will service Venetia Mine and the wider community.<br />

55 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


PROFILE<br />

Unlocking opportunity<br />

Ivanplats brings a new dawn to Mokopane.<br />

Ivanplats is developing a world-class underground<br />

platinum-group elements, nickel, copper and gold<br />

mine in Mokopane, <strong>Limpopo</strong>. The company plans<br />

to use highly mechanised methods to mine the<br />

deposit.<br />

Ivanplats’ Managing Director, Dr Patricia Makhesha,<br />

says: “We are proud to have shared our almost 20<br />

years of exploration and development achievements<br />

at Platreef with supportive stakeholders.<br />

These stakeholders, including more than 150 000<br />

local Mokopane area residents, see international<br />

investment and professionally managed development<br />

of natural resources as keys to unlock widely<br />

shared opportunities and prosperity.”<br />

The Platreef mine is projected to require a workforce<br />

of approximately 2 200 within four years of<br />

the start of production operations and Ivanplats<br />

will have invested a total of R160-million in the<br />

Platreef social and labour plan from 2014 to 2019.<br />

The approved plan includes R67.2-million for the<br />

development of job skills among local residents<br />

and R87.7-million for local economic development<br />

projects.<br />

“In establishing our social and labour plan, Ivanplats<br />

has been mindful of the South African government’s<br />

National Development Plan and its priority<br />

of securing undertakings that create jobs and<br />

advance socio-economic development to alleviate<br />

poverty and unemployment,” says Dr Makhesha.<br />

“The social and labour plan programmes that we<br />

are currently implementing demonstrate Ivanplats’<br />

commitment to ensuring that people in our<br />

host communities benefit from our operations,<br />

directly and indirectly, in ways that contribute to<br />

improving their quality of life and expanding their<br />

opportunities.”<br />

The year <strong>2017</strong> was tagged by Ivanplats as “The Year of the<br />

Youth” and the company focused on bringing information<br />

and connectivity to the people in its host communities. The<br />

project, called Maru a Mokopane (Sepedi for the Clouds<br />

of Mokopane), saw the installation of eight free Wi-Fi<br />

hotspots in Ivanplats’ host communities, the development<br />

of an online communication portal and the creation of 17<br />

micro digital enterprises that are responsible for training<br />

people in how to use this free system. One of the digital<br />

trainers, Pitso Oupa Zono, is training a resident at Tshamahansi<br />

Wi-Fi hotspot on how to use Maru a Mokopane.<br />

Mrs Lizzie Seema from Sekgoboko was<br />

one of the participants in a non-core<br />

training programme Ivanplats initiated.<br />

She completed the electrical training<br />

module sponsored by Ivanplats and<br />

started an electrical business focusing<br />

on tubing and wiring of houses with the<br />

support of her trainer.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

56


Developing a world-class highly mechanised, underground<br />

platinum-group elements, nickel, copper and gold mine in Mokopane.<br />

Bringing socio-economic development to<br />

Mogalakwena Municipality, <strong>Limpopo</strong> and beyond.


FOCUS<br />

Efficient mining at Lephalale<br />

Grootegeluk mine: A world leader in more than one way.<br />

Exxaro Resources Limited is one of the largest<br />

South Africa-based diversified resources<br />

groups with interests in the coal, titanium<br />

dioxide, ferrous and energy markets. It<br />

is the second-largest coal producer in South Africa,<br />

with current production of close to 44-million<br />

tonnes per annum, and is listed on the JSE Limited,<br />

where it is a constituent of the Socially Responsible<br />

Investment indices.<br />

Exxaro’s flagship mine, Grootegeluk, is situated in<br />

Lephalale, <strong>Limpopo</strong> province. It is among the most<br />

efficient mining operations in the world, and operates<br />

the world’s largest coal beneficiation complex<br />

from a single pit with mineable reserves of more<br />

than 30 years. Products include thermal, metallurgical<br />

and semi-soft coking coal. More than 80% of the<br />

coal produced is distributed to the nearby Matimba<br />

and Medupi power stations.<br />

Grootegeluk is committed to ensuring a safe<br />

and healthy workplace through Exxaro’s sustainability<br />

vision of Zero Harm and has seen a decline<br />

in all incident frequencies over the past five years<br />

and the emergence of world-class safety statistics.<br />

Grootegeluk has maintained its ISO and OHSAS<br />

certification for the past 10 years and has not<br />

experienced a fatality since 2012.<br />

On the environmental front, Grootegeluk is in<br />

possession of all required authorisations to operate<br />

and strives to fully implement the conditions relating<br />

to these licences. Operating in a water-scarce area<br />

like the <strong>Limpopo</strong> province also poses some challenges<br />

and Grootegeluk is continuously striving to<br />

actively and innovatively reuse the water inside the<br />

mine’s reticulation system, thereby contributing to<br />

the conservation and demand management of the<br />

water in the Mokolo catchment.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

58


IT’S ALL ABOUT DOING WELL AND GOOD.<br />

EXX_<strong>2017</strong>0222<br />

At Exxaro, we know that if our goal is significant growth, it means achieving that goal through<br />

operational excellence. If one objective is to grow to become a significant company and generate<br />

returns above the cost of capital, it also means implementing a well developed strategy. If leveraging<br />

innovation and technologies is part of our vision, it means making a valuable economic contribution<br />

for the benefit of all our stakeholders. For us the power of good business means leadership, and the<br />

possibilities in leadership mean good business. We look at both sides of the coin.


FOCUS<br />

Maximising benefits for<br />

local communities<br />

Marula is one of the first operations to have been developed on the relatively<br />

under-exploited eastern limb of the Bushveld Complex in South Africa. The mine<br />

is located in the <strong>Limpopo</strong> province, some 50 kilometres north of Burgersfort.<br />

Marula’s partners together own 27% of the company. Each of the<br />

following parties hold a 9% stake in the business:<br />

• The Marula Community Trust, ensuring sustainable benefit flows<br />

to the local community;<br />

• Tubatse Platinum, a broad-based HDSA empowerment consortium<br />

from local business; and<br />

• Mmakau Mining, an established mining entity.<br />

Implats, as the largest stakeholder, brings technical, managerial,<br />

financial and operational expertise to the mine.<br />

The pursuit of sustainable development and zero harm are seen as<br />

imperatives. Marula focuses on addressing those social, economic and<br />

environmental issues that are seen as having a material impact on the<br />

business, the sustainability of the economy, the environment and the<br />

communities in which it operates.<br />

Marula is determined to maximise the benefits of the mine for<br />

its local communities and the social investment strategy focuses on<br />

addressing the urgent needs identified in these areas. Preference<br />

is given to local contractors and suppliers of goods and services. In<br />

addition, Makgoma Chrome, a<br />

joint venture that assists local communities<br />

with the extraction and<br />

marketing of chrome from tailings,<br />

has realised substantial financial<br />

and other benefits for these<br />

communities.<br />

CONTACT INFO<br />

Group Corporate Relations<br />

Manager: Alice Lourens,<br />

Tel: +27 11 731 9033<br />

E-mail: alice.lourens@<br />

implats.co.za<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

60


OVERVIEW<br />

Energy<br />

An energy complex is planned for Lephalale.<br />

One of South Africa’s biggest engineering projects is under<br />

way in the western part of <strong>Limpopo</strong>, the building of the<br />

Medupi power station. The facility is being built near the<br />

existing Matimba power station and the giant Exxaro coal<br />

mine at Grootgeluk.<br />

Unit 5 of Medupi Power Station has achieved commercial operation<br />

status, joining Unit 6 in supplying 800MW to the national grid. When<br />

the Medupi power plant is completed, the Lephalale area will become<br />

a petrochemical hub and energy complex.<br />

An Integrated Energy Centre (IEC) has been launched in the<br />

Fetakgomo-Greater Tubatse Municipality. Energy company Shell SA<br />

has invested R<strong>18</strong>-million in the community centre, which has created<br />

16 jobs. IECs, an initiative of the national Department of Energy (DoE),<br />

are one-stop energy shops that assists local residents in getting access<br />

to energy and providing information on energy resources.<br />

The national Department of Energy’s Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP) has<br />

been very successful so far. Three photovoltaic solar projects located<br />

in <strong>Limpopo</strong> will generate 1<strong>18</strong>MW at full capacity.<br />

Most approved projects have been solar and wind. Now planners<br />

want to promote projects using biogas, landfill gas and small-scale<br />

hydro-electric.<br />

The provincial government’s Green Economy Plan has identified<br />

solar and biomass as the main kinds of renewable energy for <strong>Limpopo</strong>.<br />

Energy generation is not the only component of the plan: with huge<br />

silicon reserves in the province, there is potential to produce solar<br />

panels and solar charges for cellphones.<br />

ONLINE RESOURCES<br />

National Department of Energy: www.energy.gov.za<br />

South African Photovoltaic Industry Association:<br />

www.sapvia.co.za<br />

South African Wind Energy Association: www.sawea.org.za<br />

Southern African Biofuels Association: www.saba.za.org<br />

Sustainable Energy Africa: www.sustainable.org.za<br />

SECTOR INSIGHT<br />

Solar and biomass hold great<br />

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

Nine biogas digesters have<br />

been installed in the Vhembe<br />

District to be controlled by<br />

young entrepreneurs trained by<br />

the University of Venda. A group<br />

of 31 students is studying Energy<br />

Management Systems as part of<br />

the provincial plan.<br />

The mining and agricultural<br />

sectors are the two biggest and<br />

most important sectors of the<br />

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

They are big consumers of energy<br />

and they hold the key to advancing<br />

alternate technologies.<br />

Implats recently negotiated<br />

the supply of natural gas supply to<br />

its refinery in Springs. Phase one<br />

of the project will see 20 Doosan<br />

fuel cells generating 8MW of<br />

power. The long-term goal is to<br />

generate 22-30MW.<br />

Anglo Platinum has launched<br />

an underground mining locomotive<br />

powered by a fuel cell.<br />

Platinum coating greatly enhances<br />

the hydrogen absorption<br />

capacity of fuel cells.<br />

Mining group Exxaro is sponsoring<br />

the rollout of alternative energy<br />

near its remote Tshikondeni<br />

mine east of Musina.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

62


Water<br />

Major bulk water projects are under way.<br />

OVERVIEW<br />

Several major projects are currently being carried out in<br />

<strong>Limpopo</strong>, including bulk water schemes at Mooihoek/<br />

Tubatse, Sekhukhune and Moutse.<br />

The completion of the De Hoop Dam has made possible<br />

the provision of water to many communities in the eastern part of<br />

<strong>Limpopo</strong>. The building of the dam is part of the greater Olifants River<br />

Water Resources Development Project. Five other water projects and<br />

65 associated schemes in the Sekhukhune District are delivering other<br />

water infrastructure, including pipes to get water to Moutse from the<br />

Loskop Dam.<br />

In the <strong>2017</strong>/<strong>18</strong> financial year, the provincial government has committed<br />

to providing 210 more schools with potable drinking water and<br />

<strong>18</strong>5 more schools with decent sanitation facilities.<br />

The mining and agriculture sectors are heavily dependent on a<br />

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> has very different rainfall patterns in its three main geographical<br />

regions: the escarpment (sub-humid with annual rainfall of<br />

more than 700mm); semi-arid middle veld and Highveld; and the arid<br />

and semi-arid Lowveld. The long drought that affected many parts of<br />

South Africa had a big impact in <strong>Limpopo</strong>. The provincial government<br />

declared a disaster in November 2015 and released funds to supply<br />

feed for livestock. By early <strong>2017</strong> the drought was broken in northern<br />

areas such as <strong>Limpopo</strong>.<br />

ONLINE RESOURCES<br />

<strong>Limpopo</strong> Department of Economic Development, Environment<br />

and Tourism: www.ledet.gov.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Olifants River Forum: www.orf.co.za<br />

South African Association of Water Utilities: www.saawu.co.za<br />

Water Institute of South Africa: www.wisa.org.za<br />

SECTOR INSIGHT<br />

Potable water will be<br />

delivered to 210 schools.<br />

The province’s rivers are under<br />

threat from the damaging effects<br />

of the mining industry, power stations,<br />

chemicals used in agriculture<br />

and from sewage treatment<br />

in catchment areas. Opportunities<br />

exist in this sector for innovative<br />

solutions.<br />

The Water and Sanitation<br />

Services branch of Polokwane<br />

Municipality operates five waterpurification<br />

plants and three<br />

sewage-purification plants. As<br />

part of its Regional Water Scheme<br />

programme, Polokwane provides<br />

water to the residents of the rural<br />

areas of Mothapo, Mothiba and<br />

Makotopong. A reservoir has<br />

been built and new pipes laid.<br />

The Capricorn District<br />

Municipality funds a water-testing<br />

laboratory on the campus of the<br />

University of <strong>Limpopo</strong>. Mocha Lab<br />

has been operating in Polokwane<br />

since 2008, and has the capability<br />

to provide services to the mining<br />

and engineering sector, as well as<br />

to water authorities.<br />

63 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Transport and logistics<br />

<strong>Limpopo</strong>’s location makes it ideal for logistics operations.<br />

SECTOR INSIGHT<br />

Polokwane is investing in a<br />

bus rapid transport system.<br />

• The N1 and N11 highways<br />

link South Africa to its<br />

neighbours.<br />

The N1 highway, “The Road to the North” is an extremely busy road<br />

and growing mining operations are putting pressure on secondary<br />

routes in the province. In this context, Transnet Freight Rail’s<br />

stated aim of getting larger quantities of freight moved from road<br />

back to rail is good news for everyone.<br />

A similar theme is behind the bus rapid transport system being<br />

introduced in the provincial capital, Polokwane, except here the goal<br />

is to get commuters into public busses. The scheme is called Leeto la<br />

Polokwane. Within the province more broadly, 22.6% of households<br />

in <strong>Limpopo</strong> use bus transport and 45.8% use taxis (2013 Household<br />

Travel Survey).<br />

Increasing rail volumes out of the coal-rich Waterberg area is something<br />

that has been on the cards for some time but this project may<br />

have to wait until commodity prices recover. Transnet Freight Rail (TFR)<br />

is conducting a feasibility study. An extension of 464km would cost<br />

about R37-billion, so TFR may look for private partners. If more coal<br />

mines are developed, then capacity could be ramped up in stages.<br />

All of this would be delivered to Richards Bay via the line through<br />

Mpumalanga and KwaZulu-Natal. Eskom’s huge new power station in<br />

western <strong>Limpopo</strong> (Medupi) will need lots of coal but is experiencing<br />

long delays in construction.<br />

Logistics is a vital feature of the <strong>Limpopo</strong> economy for two reasons<br />

– the province has huge volumes of raw produce to be transported to<br />

markets elsewhere, and the province<br />

is strategically positioned. In<br />

addition to the N1 highway, the<br />

N11 is a primary road corridor<br />

and there are nine provincial<br />

road corridors.<br />

Freight volumes on the N11<br />

(to Botswana and Mpumalanga)<br />

have increased markedly since<br />

2006, whereas the R33 has carried<br />

less traffic.<br />

South Africa’s major logistics<br />

companies have facilities in<br />

Polokwane, and some have warehouses<br />

and forwarding facilities in<br />

other parts of the province. RTT<br />

has offices in Makhado. <strong>Limpopo</strong>’s<br />

biggest exports (minerals and fruit<br />

and vegetables) require dramatically<br />

different levels of handling.<br />

Minerals are poured in great volumes<br />

into the freight trucks of TFR<br />

and taken onward to Richards Bay<br />

Coal Terminal, whereas some of<br />

the province’s fruits like avocadoes<br />

have to be handled with<br />

extreme care. They must be delivered<br />

to ports as quickly as possible<br />

as they are delicate and the<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

64


OVERVIEW<br />

deadlines for getting fruit to market<br />

in Europe are tight. Companies<br />

such as Freezerlines, Fast ‘n Fresh<br />

and Cold Chain have developed<br />

specialist techniques in getting<br />

these fruits to market and to<br />

port undamaged. Grindrod has a<br />

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<br />

outside of Gauteng: in Cape<br />

Town, Durban, Nelspruit – and<br />

Polokwane. This illustrates the<br />

importance of the <strong>Limpopo</strong><br />

Province and its capital city in the<br />

national logistics chain.<br />

Imperial Logistics Southern<br />

Africa has 70 companies in its<br />

group structure, including Kobus<br />

Minaar Transport, a concern that<br />

began in Tzaneen transporting<br />

fruit and vegetables. Other active<br />

companies in <strong>Limpopo</strong> include<br />

Dawn Wing Logistics, Kargo, F&R<br />

Logistics and Aramex SA.<br />

Outside of Polokwane, the<br />

towns of Tzaneen, Lephalale,<br />

Burgersfort and Musina (a border<br />

post with Zimbabwe) are all important<br />

in the field of logistics.<br />

Roads Agency <strong>Limpopo</strong> (RAL),<br />

of which the provincial government<br />

is the sole shareholder,<br />

accounts for about a third of<br />

the budget of the <strong>Limpopo</strong><br />

Department of Public Works,<br />

Roads and Infrastructure.<br />

The provincial government<br />

has a scheme whereby pupils in<br />

rural areas up to 10km away from<br />

schools are provided with bicycles.<br />

The province’s scholar transport<br />

network will be expanded in<br />

the course of <strong>2017</strong> to 255 schools.<br />

Great North Transport falls under the <strong>Limpopo</strong> Economic<br />

Development Agency. The company has more than 500 buses, covers<br />

about 37.6-million kilometres every year on 279 routes, employs more<br />

than 1 200 people and transports 37.6-million passengers.<br />

Air<br />

The Polokwane International Airport (PIA) is wholly owned by the<br />

provincial government and run by the Gateway Airport Authority Ltd<br />

(GAAL), an agency of the <strong>Limpopo</strong> Department of Roads and Transport.<br />

It has the potential to be an important regional cargo airport.<br />

SA Airlink caters mainly to the business market and offers 21 flights<br />

to Johannesburg six days a week. The airline also provides links between<br />

Phalaborwa and Johannesburg, and between Hoedspruit and<br />

Johannesburg and Cape Town.<br />

Many game reserves have airstrips, and regional airports in the<br />

eastern part of the province provide easy access to the Kruger National<br />

Park. Hoedspruit Airport is situated within an airforce base and has the<br />

second-longest runway in South Africa, long enough to serve as an<br />

emergency landing area for space shuttles. The airport is served by SA<br />

Express. Phalaborwa’s airport is notable for its African-themed terminal<br />

which includes a zebra-patterned floor. Musina, near the border with<br />

Zimbabwe in the north, hosts the province’s other regional airport.<br />

ONLINE RESOURCES<br />

Gateway Airport Authority <strong>Limpopo</strong>: www.gaal.co.za<br />

Hoedspruit Airport: www.eastgateairport.co.za<br />

<strong>Limpopo</strong> Department of Transport: www.ldot.gov.za<br />

<strong>Limpopo</strong> Economic Development Agency (LEDA): www.lieda.co.za<br />

Railroad Association of South Africa: www.rra.co.za<br />

Roads Agency <strong>Limpopo</strong>: www.ral.co.za<br />

South African National Roads Agency Limited: www.sanral.co.za<br />

Transnet Freight Rail: www.transnet.net<br />

65 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


PROFILE<br />

Leeto: Our journey to<br />

seamless mobility<br />

Building a better city.<br />

By Musa Ndlangamandla<br />

Seamless, smart and sustainable urban mobility that<br />

ensures the quick and free movement of people,<br />

goods and services while reducing pollution, traffic<br />

and accidents. This has become a major priority for<br />

the future growth of cities around the world.<br />

For the City of Polokwane, an efficient and costeffective<br />

public transport system which connects<br />

people to jobs, education, recreational facilities<br />

and public services is a fundamental part of human<br />

development. That is why Polokwane Local<br />

Municipality has pulled out all the stops and is<br />

making great progress in the implementation of<br />

the ground-breaking Leeto la Polokwane project,<br />

which will provide its citizens with a safer, faster,<br />

affordable, efficient and environmentally friendly<br />

public transport service. The name, which means<br />

the Journey of Polokwane, derives from the SePedi<br />

language and is symbolic of the collective journey<br />

of the people of Polokwane.<br />

Leeto la Polokwane is making a positive impact on<br />

the city’s socio-economic development, through<br />

upgrades in public physical infrastructure within a<br />

well-planned spatial context. The project has also<br />

ensured sustainable job creation while ushering in<br />

a clean, green, safe and healthy city. Such improvements<br />

have a positive impact in promoting local<br />

businesses and stimulating investments.<br />

Historical Background<br />

A brief historical background would help unpack<br />

the milestones of this project which have been<br />

realised over the last five years and give context<br />

Polokwane Municipality Executive, Mayor Cllr Thembi<br />

Nkadimeng on the occassion of Leeto la Polokwane<br />

system name launch.<br />

to Polokwane Local Municipality’s efforts towards<br />

creating a city where people and community come<br />

first. Polokwane is among 13 cities identified by<br />

government to introduce an Integrated Rapid Public<br />

Transport System (IRPTS). This is aligned with the<br />

objectives of the National Transport Action Plan,<br />

incorporating South Africa’s Public Transport<br />

Strategy, which was approved by Cabinet in 2007.<br />

Leeto la Polokwane is funded in tranches through<br />

the Public Transport Network Grant (PTNG) and integrates<br />

Bus Rapid Transit (BRT) with non-motorised<br />

transport, progressive land use approaches, and<br />

car-restriction interventions. It is implemented in<br />

phases and operates on fully or partly dedicated<br />

roads and feeder routes that connect with existing<br />

networks of minibus taxis, buses, walkways and cycling<br />

lanes. Over the past 10 years, National Treasury<br />

has contributed R167-billion towards infrastructure<br />

and operations subsidies, with an average annual<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

66


PROFILE<br />

growth of <strong>18</strong>%. Due to economic challenges which<br />

have had a negative impact on funding, the operational<br />

plan for Phases One and Two of Leeto<br />

la Polokwane was revised to deliver on quality,<br />

while reducing the financial deficit to Polokwane<br />

Local Municipality.<br />

The interim phase is to be operated by the Vehicle<br />

Operating Company inclusive of the four affected<br />

taxi associations (Seshego-Polokwane, Moletjie,<br />

Westenburg and Flora Park).<br />

Go-Live targets<br />

As the clock ticks towards the Go-Live phase of the<br />

project, the Polokwane Transportation Directorate<br />

has come a long way in meeting the standards and<br />

requirements outlined by the national Department<br />

of Transport (DoT).<br />

Construction work on the initial stage of Leeto<br />

la Polokwane is progressing well and the project<br />

will ultimately include about 50 kilometres of<br />

road construction and improvements. This entails<br />

trunk and feeder routes. Presently, 2.5km of<br />

dedicated lanes have been completed, with 1.5km<br />

under way. Trunk extension rehabilitation and<br />

upgrades are also progressing well with 13.8km<br />

having been completed. There has also been tangible<br />

progress in the rehabilitation of the central<br />

Ms Anza Ligege, Young Professional in Transportation.<br />

business district (CBD) routes. To that end, 32.6km has<br />

been completed. Such milestones are a confidence<br />

booster and will bring about far-reaching benefits for<br />

public transport users and all residents and visitors.<br />

Non-Motorised Transport and<br />

Universal Accessibility Facilities<br />

The City of Polokwane is encouraging residents and<br />

visitors to walk, cycle or use public transport rather<br />

than private vehicles to get around the city. Through<br />

Leeto la Polokwane the City is promoting alternative<br />

modes of transportation, including non-motorised<br />

and public transport. Leeto la Polokwane will also<br />

ensure there is an accessible public transport system<br />

for people living with disability, the elderly and<br />

people with special needs.<br />

In terms of non-motorised transport, 12.8km of such<br />

facilities has been completed utilising resources<br />

allocated to Leeto la Polokwane, with 24.8km from<br />

partnerships with other grants. These facilities have<br />

lanes that cater for pedestrians and cyclists such<br />

as sidewalks, cross walks, paths and cycle lanes<br />

aimed at ensuring harmony and a working balance<br />

between non-motorised transportation modes and<br />

motorised transport.<br />

Moreover, in line with the specification of the DoT,<br />

the fleet required comprises universally accessible<br />

buses. The project accommodates all people with<br />

special needs, be it people in wheelchairs, those<br />

with hearing and visual impairments, the elderly<br />

and children. Special needs facilities including tactile<br />

paving for the blind, boarding bridges to ensure level<br />

boarding between the stops, stations and buses and<br />

easy-to-use pedestrian and passenger information<br />

signage which are part of the project.<br />

Intelligent Transport System<br />

Leeto la Polokwane is using the latest technology<br />

advancements to ensure an intelligent transport<br />

system to provide long term, high-quality service<br />

to all users. One area is that of an Automated Fare<br />

Collection (AFC) system and entails a flat fare for<br />

67 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


PROFILE<br />

the trunk route regardless of distance travelled, a<br />

tap-in system and fare gates on trunk stations. There<br />

will also be fare verification devices on board the<br />

buses and a number of roaming inspectors to ensure<br />

all passengers using the Leeto system have paid<br />

the required fares. An Automated Public Transport<br />

Management System (APTMS) will be implemented<br />

in a revised form and referred to as “APTMS Lite”<br />

concept. This includes Vehicle Tracking (AVL), realtime<br />

map display, kilometres travelled report (productive<br />

vs unproductive), incident and exception<br />

reports, driver panic button and two CCTV cameras<br />

on board. Leeto la Polokwane has also invested<br />

considerable resources in investigating the existing<br />

Urban Traffic Control System and lasting solutions<br />

to prevent and deal with congestion areas have<br />

been identified.<br />

Depot, Control Centre and Stations<br />

A depot and layover facility to house the fleet of<br />

buses will be built in Seshego. A 2km access road<br />

has been constructed. A scalable Control Centre is<br />

being constructed at the Old Peter Mokaba Stadium.<br />

The Control Centre will contain a number of equipment<br />

elements such as a video wall; workstations,<br />

communications, database, applications and<br />

Internet servers; back-up systems; vehicle tracking<br />

applications; driver communications systems; and<br />

systems engineering/integration components. For<br />

improved safety and comfort of users a number of<br />

stations will be established along the route. To date,<br />

50 stops and bus laybys have been constructed. All<br />

stations will have cashier services (selling AFC cards<br />

and transit products); Leeto information (routes,<br />

timetables transit products, hours of operation and<br />

general assistance).<br />

Bus Procurement<br />

In order to comply with National Treasury regulations<br />

for IRPTS a new, specialised vehicle fleet will<br />

be procured for the Leeto system. This fleet must<br />

have particular specifications including universal<br />

accessibility, and environmental friendliness.<br />

Mr Jan Baloyi (48) Bloodriver using Leeto la Polokwane<br />

NMT infrastructure to cycle to work.<br />

An old lady using universally accessible Non-<br />

Motorised Transport infrastructure.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

68


PROFILE<br />

<strong>Limpopo</strong> Premier Mr Chuphu Mathabatha and Executive Mayor of Polokwane Cllr. Thembi Nkadimeng<br />

unveiling Leeto la Polokwane.<br />

Vehicle Operating Company, Industry<br />

Transition<br />

Polokwane Local Municipality is determined to adhere<br />

to the statutory requirement that no taxi or<br />

bus operator should be rendered worse off as a<br />

result of the implementation of Leeto la Polokwane.<br />

There are ongoing negotiations with industry players<br />

to ensure that they become and remain part of<br />

the system. Four directly affected taxi operators,<br />

the Greater North Transport and industry players<br />

and the Transportation Directorate have signed a<br />

Memorandum of Agreement (MoA). This instrument<br />

is based on the Integrated Public Transport<br />

System Model.<br />

The model is divided into three phases as depicted<br />

below:<br />

• Pre-interim Phase (Period Until GoLive)<br />

• Interim Phase (20<strong>18</strong>-2021)<br />

• 12 Year Contract Phase (2021-2033)<br />

Moreover, market surveys and Operation License<br />

(OL) verification processes have been completed.<br />

There is a good working relationship and positive<br />

contribution from all parties involved.<br />

Corporate Identity<br />

Leeto la Polokwane prides itself in working with<br />

the people of Polokwane throughout all the stages<br />

of the project, particularly in coming up with the<br />

official name. This fosters a sense of pride and ownership<br />

among the community of the project. The<br />

buses will be visible and recognisable with Leeto<br />

la Polokwane branding. Drivers and station staff<br />

will undergo training in Leeto customer service<br />

standards. A customer service feedback facility has<br />

been put in place. Moreover, a second round of<br />

Stakeholder Engagement sessions is ongoing; a<br />

corporate identity (CI Manual) has been finalised and<br />

a website registered and is live.<br />

About Polokwane<br />

Polokwane (“Place of Safety” in Sotho) falls under<br />

the <strong>Limpopo</strong> province and is also often referred<br />

to by its former official name, Pietersburg.<br />

Polokwane is strategically located near to the economic<br />

heartland of South Africa (Johannesburg is<br />

300km away). The population of Polokwane grew<br />

from 271 911 in 2001 to 628 999 currently. It has<br />

178 001 households.<br />

69 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Information and communications<br />

technology (ICT)<br />

<strong>Limpopo</strong> is getting better connected.<br />

SECTOR INSIGHT<br />

<strong>Limpopo</strong> Connexion is<br />

rolling out broadband<br />

infrastructure.<br />

• 949 community members<br />

received ICT skills training<br />

in the past year.<br />

When leaders and policy-makers met in the fourth quarter<br />

of 2016 at the <strong>Limpopo</strong> Economic Summit, one of the<br />

six pillars identified as pivotal to the province’s progress<br />

was ICT and the knowledge economy.<br />

A wide area network (WAN) for the province was listed as a key<br />

objective and it was decided that a combination of fibre and wireless<br />

technology should be used to reduce cost. A science and technology<br />

master plan is also to be developed.<br />

The body responsible for rolling out the infrastructure is <strong>Limpopo</strong><br />

Connexion, a subsidiary of the <strong>Limpopo</strong> Economic Development<br />

Agency (LEDA). The first phase began in <strong>2017</strong> with broadband infrastructure<br />

in Polokwane as the focus. The second phase will cover more<br />

than 80% of the provincial population, as per the provincial spatial<br />

development framework.<br />

In the 2016/17 financial year, 949 community members received ICT skills<br />

training in a programme run by the <strong>Limpopo</strong> Department of Economic<br />

Development, Environment and<br />

Tourism (LEDET).<br />

One way of achieving higher<br />

connectivity in rural areas is<br />

to focus on schools and libraries.<br />

The Universal Service and<br />

Access Agency of South Africa<br />

(USAASA) provides ICT services<br />

to public and private schools,<br />

hospital and training colleges.<br />

<strong>Limpopo</strong> is one of five provinces<br />

that USAASA concentrates on<br />

with respect to school connectivity:<br />

more than R25-million has<br />

been spent since 2010 on this<br />

project and more than 400 smart<br />

devices distributed.<br />

Private telecommunications<br />

companies also have community<br />

responsibilities in terms<br />

of the National Development<br />

Plan. They must help connect<br />

under-serviced areas to the telecommunications<br />

and Internet<br />

networks.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

70


OVERVIEW<br />

A National Library of South<br />

Africa (NLSA) project, supported<br />

by Vodacom, will connect about<br />

300 community libraries via VSAT<br />

and Vodacom ADSL services. The<br />

project covers South Africa’s three<br />

most rural provinces – North West,<br />

<strong>Limpopo</strong> and Mpumalanga.<br />

When national libraries starting<br />

using an open source system<br />

known as Library Information<br />

Management System (LIMS), it was<br />

a good opportunity to upgrade<br />

the more remote libraries. Meso<br />

ICT Solutions was the company<br />

used by Vodacom and the NLSA<br />

to roll out the project, which will<br />

also give community members<br />

in those areas (including teachers<br />

and students) better access to<br />

the Internet. 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 ICT<br />

sector, both in terms of its regulatory<br />

role, the incentives offered to<br />

companies and in terms of its own<br />

purchasing power through national<br />

departments and agencies.<br />

The State Information<br />

Technology Agency (SITA) supports<br />

a wide range of national and provincial<br />

departments and municipalities<br />

across the province, and is working<br />

on establishing a comprehensive<br />

provincial network. SITA played a<br />

role in the 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 to<br />

help South Africa’s teachers obtain<br />

laptops will have an impact on<br />

the sector.<br />

South African Vanguard of Technology (Savant) is a Department of<br />

Trade and Industry (dti) programme. It is the marketing and awareness<br />

programme for the South African ICT and electronics sector. The aim<br />

is to develop South African exports and to attract foreign investment.<br />

The National Department of Communications is responsible for<br />

the Independent Communications Authority of South Africa (ICASA,<br />

the regulator of communications, broadcasting and postal services),<br />

the SA Broadcasting Corporation (SABC) and three other agencies.<br />

The Telkom Foundation began supporting ICT at Manyangan High<br />

School and several others like it a decade ago. Schools in rural areas<br />

were given a wireless networked e-Learning Resource Centre consisting<br />

of 20 computers, a server, a printer, all Microsoft supplied software,<br />

insurance and a three-year maintenance plan. Internet access was<br />

included, powered by Vsat satellite technology.<br />

Ten schools have been identified 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 supports initiatives<br />

that use science to bring benefits to wider society. This can relate to<br />

boosting distant rural computer literacy or for scientists working at the<br />

University of Venda who have received THRIP funding for soil research.<br />

Intermediate computer-literacy classes are given at some <strong>Limpopo</strong><br />

schools by the Internet Service Providers’ Association (ISPA), and<br />

the CoZa Cares project of Uniforum SA. The Maths Centre has received<br />

funding from the Citigroup Foundation to help it expand<br />

the Anglo American project for maths and science using specially<br />

developed software.<br />

ISPA and Uniforum SA run a Super Teacher of the Year award for the<br />

educator who has best imparted their newly acquired IT knowledge<br />

to pupils and members of their community when they return from<br />

training courses.<br />

ONLINE RESOURCES<br />

<strong>Limpopo</strong> Department of Economic Development, Environment<br />

and Tourism: www.ledet.gov.za<br />

<strong>Limpopo</strong> Economic Development Agency (LEDA): www.lieda.co.za<br />

Seda Technology Programme: www.seda.org.za<br />

South African Vanguard of Technology: www.savant.co.za<br />

State Information Technology Agency: www.sita.co.za<br />

Support Programme for Industrial Innovation: www.spii.co.za<br />

Technology Innovation Agency: www.tia.org.za<br />

71 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


Long-term investments are<br />

paying off for Vodacom <strong>Limpopo</strong><br />

Customers are reaping the benefits of improved connectivity.<br />

Vodacom <strong>Limpopo</strong>'s major investments in infrastructure<br />

are paying dividends for customers who<br />

now benefit from converged services that go well<br />

beyond the popular baseline of voice and data.<br />

This has resulted in an improved user experience<br />

and wider access to services, including customers<br />

in deep rural areas.<br />

The enhanced infrastructure means not only better<br />

performance for existing services, but has also<br />

brought with it a growing customer base wanting<br />

access to an expanded rollout of digital services<br />

such as video and music streaming, and the<br />

Internet of Things (IoT).<br />

Vodacom <strong>Limpopo</strong> prides itself on delivering innovative<br />

solutions while at the same time improving<br />

customer care and driving down costs for customers.<br />

In particular, businesses and government<br />

departments are seeing tangible benefit and this<br />

has contributed to solid growth in the region’s<br />

Enterprise <strong>Business</strong> Unit. Public sector departments,<br />

large enterprises and small businesses are<br />

attracted to a range of products and services that<br />

are scalable, reliable and fully customised to fit<br />

specific requirements. Our dedicated back-end<br />

support and customer obsession gives Vodacom<br />

<strong>Limpopo</strong> an edge as a partner of choice.<br />

investments. "To achieve this, we secured funding<br />

to continue the investment into the network<br />

which is the platform that underpins everything<br />

we provide."<br />

Chris adds: "We are fully aligned to the provincial<br />

government plans to invest in key economic zones,<br />

again highlighting the link between communications<br />

and an improved standard of living."<br />

The investment in the region in <strong>2017</strong> amounted to<br />

R217-million, which mostly went into the network<br />

expansion on LTE (long term evolution), 3G cellular<br />

network expansion, new towers and, importantly,<br />

into the migration and introduction of the more<br />

recent transmission network infrastructure. The<br />

expansion of these programmes enables customers<br />

to access higher data speeds.<br />

Managing Executive for the <strong>Limpopo</strong> region, Chris<br />

Lazarus, has witnessed first-hand the direct correlation<br />

with an increase in access to communications<br />

and an improvement in living standards. "Vodacom<br />

is about changing lives," he says, and illustrates<br />

this with reference to the company's significant<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

72


PROFILE<br />

The Vodacom <strong>Limpopo</strong> team: from left to right: Ishmael Mathinya, Executive Head of Division Operations<br />

<strong>Limpopo</strong>; Busi Dlamini, Senior Manager EBU <strong>Limpopo</strong>; Chris Lazarus, Managing Executive <strong>Limpopo</strong><br />

Region; and Qiniso Nyathi, Executive Head of Division CBU <strong>Limpopo</strong>.<br />

In 2016 alone the region upgraded more than 250<br />

3G towers, and also doubled its 4G footprint, in one<br />

year to 72% of the population. In the 20<strong>18</strong> financial<br />

year, the region will upgrade more than 200 3G<br />

towers leading to a guaranteed increase in data<br />

connectivity of at least 2Mbps per user. As part of<br />

Vodacom’s commitment to accelerating investment<br />

in deep rural areas, 38 sites have been earmarked<br />

to be upgraded at a cost of more than R23-million.<br />

Polokwane city as well as other towns and informal<br />

areas now enjoy 4G connectivity.<br />

These technical rollouts have had a direct impact<br />

on the business environment in <strong>Limpopo</strong>. Senior<br />

Manager Enterprise <strong>Business</strong> Unit <strong>Limpopo</strong>, Busi<br />

Dlamini explains how business owners benefit from<br />

partnerships with Vodacom: "Our satisfied customers,<br />

especially within the SMME sector, bear testament<br />

to significant growth in their business and that<br />

this is directly attributed to reduced communications<br />

costs and tailored business solutions that have<br />

aided them to function optimally."<br />

The EBU itself has recorded good growth and the<br />

unit's products and solutions are gaining momentum<br />

within the region. Busi attributes this positive<br />

uplift to "our robust and agile business offerings<br />

and – most importantly – our value proposition to<br />

our customers and partners".<br />

Overall, Chris notes that, "Data has exploded in<br />

<strong>Limpopo</strong> with places like Lephalale counting among<br />

the top data towns in SA while at the same time<br />

managing to grow demand for voice. Our investment<br />

in Fibre has continued in various parts of the<br />

province and we remain the first Vodacom region<br />

to have deployed Fibre using an overhang methodology.<br />

Given that we own these poles, we this<br />

year started to use them to advertise subject to<br />

municipal approvals.<br />

"Growth in voice usage can be attributed to our<br />

Just4You proposition, which provides customers<br />

with relevant, personalised prices. In fact, <strong>Limpopo</strong><br />

is the number-one region in this space. There is<br />

no doubt that <strong>Limpopo</strong>’s above-median growth<br />

in market share.”<br />

Another critical contributor to this success is the determination<br />

of employees. Says Chris: "An ethos that<br />

stands true with many of us at Vodacom <strong>Limpopo</strong> is<br />

to ensure that our province does not come second<br />

73<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


in terms of access to technologies that are<br />

found in other provinces."<br />

Broader investment<br />

Ishmael Mathinya, Executive Head of Operations,<br />

says the investment narrative goes beyond the capital<br />

poured into infrastructure development. "The<br />

region has received investments in excess of R577-<br />

million over the past three years, with the majority<br />

of the investment going to upgrading and integrating<br />

the radio, core and transmission infrastructure.<br />

Over and above the annual investment, the Group<br />

CEO has made a commitment through an investment<br />

of R23-million specifically to deep rural areas,"<br />

according to Ishmael.<br />

Following the network investment we are seeing<br />

an increase in adoption of smartphones on the<br />

<strong>Limpopo</strong> network with a 66% increase in data traffic;<br />

however, <strong>Limpopo</strong> continues to dominate the<br />

number of 2G devices on the network.<br />

Structure<br />

Vodacom <strong>Limpopo</strong> has three core units to serve the<br />

province of <strong>Limpopo</strong>:<br />

• The Consumer <strong>Business</strong> Unit, focused on retail<br />

customers<br />

• The Enterprise <strong>Business</strong> Unit focused on businesses<br />

and the public sector<br />

• The Technology division, focused on building,<br />

operating and maintaining the<br />

network.<br />

The executive in <strong>Limpopo</strong> is<br />

empowered to make decisions,<br />

backed with requisite resources<br />

and believes strongly in local<br />

economic development.<br />

further notes that the unit is training an additional<br />

five engineering interns, all from <strong>Limpopo</strong> province,<br />

four of whom are female. This is linked to<br />

Vodacom's investment and commitment to the<br />

upliftment of communities through its contribution<br />

towards education.<br />

Consumer <strong>Business</strong> Unit<br />

Qiniso Nyathi, Executive Head Consumer <strong>Business</strong><br />

Unit, says our unique rates and a superb value<br />

proposition have grown voice and data usage at<br />

a rapid rate. Just4You has proven to be very popular<br />

with voice customers. Investment in Fibre by<br />

Vodacom has enabled and supported this growth,<br />

with improved speeds and an increased distribution<br />

footprint. The province is attracting an increase<br />

in shopping mall developments allowing<br />

us to broaden the reach we have to our customers,<br />

but also an opportunity to localise the ownership<br />

of stores.<br />

Enterprise <strong>Business</strong> Unit (EBU)<br />

The Enterprise <strong>Business</strong> Unit provides solutions to<br />

corporates, the public sector as well as small and<br />

medium enterprises. Our EBU customers have grown<br />

in the province due to the network investments<br />

made by Vodacom.<br />

Solutions range from basic communications to complex<br />

big data to sensing technologies. As Enterprise<br />

<strong>Business</strong> Unit Head Busi Dlamini explains, "Our<br />

Within the Technology division,<br />

"at least 70% of the staff members<br />

are originally from <strong>Limpopo</strong><br />

province", an important contribution<br />

towards local economic<br />

development and utilisation of<br />

local talent, says Ishmael. He<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

74


PROFILE<br />

offerings are end-to-end technology-based solutions<br />

that help customers' transition into the digital<br />

world. The objective is to streamline business operations<br />

while performing at optimal levels while<br />

reducing total cost of ownership.<br />

"The EBU is a product and solution leader in various<br />

segments and always strives to be first in the market<br />

with technology innovations, thus giving us the traction<br />

in gaining a sizeable market share."<br />

Busi says that the new One Net <strong>Business</strong> product<br />

is ideal for smaller enterprises, with Vodacom hosting<br />

everything in the cloud and freeing a business<br />

from having to install a full Private Automatic Branch<br />

Exchange (PABX) system. "If a sales representative<br />

is not in the office, calls are automatically routed<br />

to the correct person," says Busi. "It gives you total<br />

enterprise mobility. There’s no connection cost, it’s<br />

a free call."<br />

Chris adds the national perspective: "While<br />

<strong>Limpopo</strong> cannot boast the same number of large<br />

enterprises as other provinces, what we do have is<br />

a large number of SMEs. In this category we have<br />

superseded larger provinces using smaller yet<br />

scalable technologies."<br />

Technology<br />

The prime responsibility of the Technology team is to<br />

provide a mobile and fixed network to the people of<br />

<strong>Limpopo</strong> region. As Ishmael Mathinya, the Executive<br />

Head, Operations, puts it, "The network is the underlying<br />

platform to everything we provide."<br />

The provision of the fibre medium serves as an enabler<br />

to allow our customers to seamlessly access the<br />

Internet and applications of their choice. Through<br />

its consistent and intensive investment programme<br />

over many years, Vodacom <strong>Limpopo</strong> has expanded<br />

its network footprint to cover the provincial population<br />

with 99.9% 2G, 98.9% 3G and 76% 4G. New<br />

transmission network infrastructure, new towers<br />

and migration allow for constantly improved service<br />

and provide the framework for future upgrades. The<br />

expansion programmes allow customers to have<br />

access to higher data speeds.<br />

Looking further ahead, Vodacom is planning for<br />

the Internet of Things (IoT), which will require a<br />

network that can handle increased demand for<br />

data analytics, agility and security. This explains why<br />

Vodacom has been at the forefront of increasing its<br />

readiness to effortlessly embrace this technology<br />

evolution. What cloud and IoT will bring to Vodacom<br />

75 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


customers is convenience, easy accessibility<br />

to information, improved transportation,<br />

safety, etc.<br />

Social investment<br />

The focus of Corporate Social Investment for<br />

Vodacom is education and the region has done<br />

exactly that. The education portal marketed to<br />

learners and teachers has the highest registration<br />

of users nationally. The sign-up and use of the portal<br />

is free.<br />

In 2016, Vodacom launched the NXT LVL proposition<br />

to youth under the age of 25. <strong>Limpopo</strong> province<br />

has the highest number of youth customers using<br />

this proposition. As part of the launch, youth<br />

nationally were encouraged to sign up to the soccer<br />

academy programme. Of the 24 youth chosen,<br />

12 were from <strong>Limpopo</strong>.<br />

In the <strong>Limpopo</strong> province continue to invest and<br />

support eight ICT centres across the province where<br />

the main purpose is to train teachers in mathematics<br />

and science and this way help to integrate ICT in<br />

the school curriculum. In the Vhembe District we<br />

have partnered with CISCO to equip unemployed<br />

youth with relevant ICT skills to assist with the installation<br />

of IT equipment as well as provide instruction<br />

in high-end computer skills.<br />

In addition to this, the region adopted the Ntetele<br />

day-care facility in Bloodriver by refurbishing the<br />

centre as well as the drilling of a borehole. We<br />

must thank our partners, Gift of the Givers and<br />

MM Telecoms, who provided much support.<br />

NXT LVL proposition is aimed at youth under the<br />

age of 25.<br />

Children at Madiphatlakgomo school with their<br />

Mandela Day food packs.<br />

Vodacom, in partnership with Sapa Yopa bikers,<br />

dug a borehole for a charity organisation.<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

76


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OVERVIEW<br />

Banking and financial services<br />

The provincial government is creating an insurance company.<br />

SECTOR INSIGHT<br />

New banks will improve<br />

access for rural residents<br />

• NTK and VKB provide<br />

financial services to<br />

farmers.<br />

Three new banks are set to make their debuts on the South African<br />

market. In addition, the <strong>Limpopo</strong> Provincial Government, through<br />

the <strong>Limpopo</strong> Economic Development Agency, intends to establish<br />

a local life insurance company which it expects to start<br />

operating in <strong>2017</strong>.<br />

All of the banks are state-owned entities. The intention behind<br />

this (and the provincial insurance) initiative is to make banking more<br />

accessible for rural communities and to make finance more readily<br />

available to small and micro-sized businesses. Trying to integrate small<br />

business into the mainstream economy is a major goal of national and<br />

provincial governments in South Africa.<br />

Life insurer MMI Holdings is also entering a partnership with African<br />

Bank to enable it to start taking deposits and loaning money. It intends<br />

to establish a R10-billion loan book.<br />

All the new banks come from state enterprises: Ithala, Postbank<br />

and Human Settlements Development Bank. The Ithala Development<br />

Finance Corporation is an enterprise funder in KwaZulu-Natal that has<br />

applied for a banking licence.<br />

In 2016, Postbank (part of the South African Post Office, SAPO)<br />

received a first-level licence. Once a board of directors has been<br />

appointed and a company<br />

formed, the Reserve Bank is likely<br />

to grant the full licence. The current<br />

Postbank focusses on taking<br />

deposits and savings accounts.<br />

Postbank has secured a R3.7-<br />

billion loan to enable it to open<br />

its own loan book.<br />

Three state entities are merging<br />

to create the new Human<br />

Settlements Development Bank:<br />

the National Housing Finance<br />

Corporation, the Housing Loan<br />

Fund and the National Urban<br />

Reconstruction and Housing<br />

Agency. The focus will be on<br />

financing housing for poorer<br />

households and for large statefunded<br />

housing projects. Part<br />

of the drive is to integrate cities<br />

better and to combat the legacy<br />

of the spatial divide that apartheid<br />

left behind. Private sector<br />

investment will be sought.<br />

<strong>Limpopo</strong> has its own bank,<br />

VBS Mutual Bank, which grew out<br />

of the Venda Building Society and<br />

operates mainly in the northern<br />

parts of the province. The Public<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

78


OVERVIEW<br />

Investment Corporation holds<br />

34% of equity. The corporate office<br />

is in Johannesburg (which<br />

also hosts a branch) and there<br />

are four branches in <strong>Limpopo</strong>,<br />

including Thohoyandou.<br />

Ubank is owned by a trust that<br />

is managed by the Chamber of<br />

Mines and the National Union of<br />

Mineworkers (NUM). It has about<br />

100 branches and a strong presence<br />

in <strong>Limpopo</strong> because of its<br />

focus on the mining sector. Ubank<br />

has about half-a-million clients.<br />

The two most active agricultural<br />

companies in <strong>Limpopo</strong> are<br />

both registered to participate in<br />

the financial sector. NTK, a subsidiary<br />

of the Free State-based<br />

VKB, has access to lending for<br />

farmers and insurance products.<br />

Afgri offers the same services<br />

under the brand Unigro, and it<br />

has another service called Gro<br />

Capital Financial Services which<br />

offers more sophisticated products<br />

such as trade finance, foreign<br />

exchange and currency and<br />

interest rate hedging.<br />

For many decades, South<br />

Africa had a retail banking Big<br />

Four – Standard Bank, Nedbank, Absa/Barclays and First National Bank.<br />

All of them have continue to be well represented in the province, but<br />

Capitec Bank has now also become a major player in the retail market.<br />

Banks are working hard to offer products to the previously unbanked.<br />

Nedbank has partnerships with shops such as Boxer Stores<br />

and Pick n Pay where customers can have access to financial services<br />

in previously unserviced areas and also on all days of the week such as<br />

public holidays and Sundays. Nedbank also has Approve-it, which allows<br />

customers to accept or reject an Internet transaction by cellphone.<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 very remote rural areas. Shops such as Shoprite, Pep and Spar<br />

are connected, as are certain spazas.<br />

The insurance market has become more varied over time, with a<br />

greater variety of products now available to more market segments,<br />

including middle-income earners. A typical example of a specific product<br />

that is responding to new realities is Old Mutual’s iWYZE medical<br />

gap cover, designed to pay the difference between what a medical aid<br />

scheme is willing to pay and what the hospital or doctor is charging.<br />

ONLINE RESOURCES<br />

Insurance South Africa: www.insurance.za.org<br />

National Credit Regulator: www.ncr.org.za<br />

Office of the Auditor-General of South Africa: www.agsa.co.za<br />

Post Bank: www.postbank.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />

South African Institute for Chartered Accountants:<br />

www.saica.co.za<br />

79 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Development finance<br />

and SMME support<br />

A new strategy for the economies of townships and villages will boost SMMEs.<br />

SECTOR INSIGHT<br />

Shanduka Black Umbrellas<br />

has 20 client businesses in<br />

Lephalale.<br />

• A co-operative is to be<br />

established to do bulk<br />

buying for SMEs and<br />

co-operatives.<br />

A<br />

concerted strategy to strengthen and develop the economies<br />

of the townships and villages of <strong>Limpopo</strong> has<br />

been launched. Spearheaded by the <strong>Limpopo</strong> Economic<br />

Development Agency (LEDA), a unit of the <strong>Limpopo</strong><br />

Department of Economic Development, Environment and Tourism<br />

(LEDET), the plan has eight focus areas which include making licences<br />

and permits easier to obtain, that government departments buy from<br />

small, medium and micro-enterprises (SMMEs), indigenous products<br />

are supported and protected, and encouraging small businesses to<br />

support one another through the clustering approach.<br />

LEDET has signed memorandums of understanding with the South<br />

African Bureau of Standards (SABS) and with Productivity South Africa.<br />

These agreements aim to help SMMEs within the province become<br />

more competitive.<br />

Gaining access to markets is crucial for SMMEs and the programme<br />

aims to assist in that regard. Ten SMMEs and 10 co-operatives are<br />

currently being assisted in getting access to the mainstream market.<br />

Agricultural entrepreneurs will benefit from the Agri-park scheme.<br />

A series of meetings around the province began in June <strong>2017</strong>,<br />

organised by LEDET. The aim was to hear from owners of small businesses<br />

such as plumbers, panel-beaters, mini-bus taxis, street vendors<br />

and taverns. Among the problems identified are:<br />

• financial products that do not address the needs of entrepreneurs<br />

• dominance of ownership by foreign entrepreneurs<br />

• retail shopping malls crowding<br />

out local traders<br />

• lack of bargaining power of<br />

smaller retailers.<br />

LEDA is to establish a bulkbuying<br />

co-operative. The plan is<br />

to enlist more than 200 members<br />

whose collective buying power<br />

will give them an advantage in<br />

purchasing stock.<br />

An infrastructure project that<br />

will assist SMMEs and co-operatives<br />

is under way near Polokwane<br />

at the Seshego Industrial Park.<br />

The National Department of<br />

Trade and Industry has committed<br />

R21-million to revitalising the<br />

park which will provide trading<br />

and storage space for businesses<br />

of all sizes.<br />

The construction by the provincial<br />

government of market<br />

stalls is aimed at supporting<br />

small-scale farmers and traders.<br />

Market stalls have been erected<br />

at Mopani District and will be<br />

put up in Elias Motsoaledi Local<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

80


OVERVIEW<br />

Municipality in the Sekhukhune<br />

District and Molemole Local<br />

Municipality in the Capricorn<br />

District.<br />

The National Department<br />

of Small <strong>Business</strong> Development<br />

(DSBD) has several programmes to<br />

assist SMMEs and co-operatives.<br />

These include:<br />

• The Black <strong>Business</strong> Supplier<br />

Development Programme, a<br />

cost-sharing grant to promote<br />

competitiveness<br />

• The Co-operative Incentive<br />

Scheme, a 100% grant.<br />

The Small Enterprise<br />

Development Agency (Seda) is<br />

a subsidiary of the DSDB and is<br />

one of the most active agencies in<br />

supporting entrepreneurs. Seda is<br />

not a financial agency, focussing<br />

rather on training and administrative<br />

support, although the agency<br />

will help SMMEs get in touch with<br />

financial bodies.<br />

The Seda <strong>Limpopo</strong> Jewellery<br />

Incubator (SLJI) develops entrepreneurship<br />

among jewellers in<br />

<strong>Limpopo</strong>. In the south-east of the<br />

province the Biofuels Incubator<br />

promotes skills in that important<br />

sector.<br />

Seda has initiated a national<br />

programme designed to make<br />

co-operatives and jointly owned<br />

enterprises stronger. As part of<br />

the Cooperatives and Community<br />

Public Private Partnership (CPPP)<br />

programme, Seda is supporting a<br />

project in Tarentaal.<br />

The National Gazelles is a national<br />

SMME accelerator jointly<br />

funded by Seda and the DSBD.<br />

The aim is to identify and support<br />

SMEs with growth potential<br />

across priority sectors aligned<br />

with the National Development<br />

Plan and Seda’s SMME strategy. <strong>Business</strong>es can receive up to R1-million<br />

for training, productivity advice, business skills development and the<br />

purchase of equipment.<br />

The Industrial Development Corporation (IDC) disburses about R400-<br />

million annually in <strong>Limpopo</strong>. Projects include an Nguni cattle breeding<br />

scheme, a new hospital in Lebowakgomo, the development of a<br />

ferrochrome smelter and a facility for making coking coal briquettes.<br />

The Development Bank of Southern Africa (DBSA) is another major<br />

funder of public projects.<br />

Private sector<br />

One of the best ways of supporting SMMEs in <strong>Limpopo</strong> is through<br />

the supply chain for the province’s mines. The provincial Premier has<br />

challenged mines to achieve a 20% SMME procurement target.<br />

A private initiative that has used the supply chain to create employment<br />

is Anglo American’s Zimele, which has established 29 small<br />

business hubs in areas such as Mokopane and Burgersfort.<br />

More than 20 small businesses are registered as clients with the<br />

Shanduka Black Umbrella incubator in Lephalale. The sectors in which<br />

these companies operate range from plant hire and construction<br />

to training and marketing. Individual mentors for these enterprises<br />

are drawn from the local TVET college, the <strong>Limpopo</strong> Economic<br />

Development Agency and private businesses.<br />

The major banks all have SMME offerings. Standard Bank runs a<br />

Community Investment Fund and Nedbank offers an enterprise development<br />

product for businesses with turnovers up to R35-million.<br />

Agri-business and agri-processing are among the three sectors that<br />

are targeted by the Masisizane Fund for loan financing. The others are<br />

franchising/commercial and supply chain/manufacturing. Over and<br />

above loans that are available, training is offered through a <strong>Business</strong><br />

Accelerator Programme.<br />

ONLINE RESOURCES<br />

Development Bank of Southern Africa: www.dbsa.org<br />

Gazelles: www.nationalgazelles.org.za<br />

Industrial Development Corporation: www.idc.co.za<br />

<strong>Limpopo</strong> Department of Economic Development, Environment and<br />

Tourism: www.ledet.gov.za<br />

National Department of Small <strong>Business</strong> Development:<br />

www.dsbd.gov.za<br />

Shanduka Black Umbrellas: www.shandukablackumbrellas.org<br />

Small Enterprise Development Agency: www.seda.org.za<br />

Small Enterprise Finance Agency: www.sefa.co.za<br />

81 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


MASISIZANE FUND<br />

<strong>2017</strong> marks the tenth anniversary of the<br />

Masisizane Fund. Established as an initiative<br />

of Old Mutual South Africa in 2007 following<br />

the closure of the Unclaimed Shares Trust, the<br />

Masisizane Fund has made good inroads<br />

toward fulfilling their mandate to contribute<br />

meaningfully to employment creation, poverty<br />

eradication, the reduction of inequality,<br />

economic growth and attraction of investments.<br />

In 2016, loans to the value of R<strong>18</strong>.4 million<br />

were approved for the <strong>Limpopo</strong> region,<br />

R14 million was dispersed, four enterprises were<br />

funded and 68 jobs were facilitated .<br />

The Masisizane Fund offers tailored, integrated<br />

and flexible financial and non-financial<br />

solutions including financial education,<br />

capacity development and mentoring<br />

support. "We take time to fully understand<br />

each enterprise’s needs, challenges and<br />

characteristics. The partnerships this<br />

understanding creates with small business<br />

owners adds value and offers innovative<br />

enterprise finance models aimed at ensuring<br />

long-term enterprise growth, sustainability<br />

and development impact", says Maphala<br />

Mosomane, Provincial Manager, <strong>Limpopo</strong><br />

and Mpumalanga.<br />

Maphala Mosomane,<br />

Provincial Manager<br />

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

Mpumalanga<br />

A Masisizane Client Competition was launched<br />

in the second half of 2016 to celebrate<br />

our clients’ outstanding achievements. This<br />

competition comprises five provincial<br />

events followed by a national event in<br />

July <strong>2017</strong> when we celebrate our 10th<br />

anniversary and announce the national<br />

winner.<br />

The <strong>Limpopo</strong> event held in December 2016 saw<br />

the Mashashane Filling Station (Pty) Ltd win the<br />

Best Youth Owned <strong>Business</strong> of the Year award.<br />

Alongside Trading & Projects CC won<br />

the Entrepreneur of the Year award and<br />

Mathosim Trimming & Upholstery CC<br />

received two awards, namely Best Female<br />

Owned <strong>Business</strong> and Best <strong>Business</strong> of the Year.<br />

Mashashane Filling Station (Pty) Ltd is a<br />

legacy business established by the late<br />

Mr GM Ledwaba. The business ceased its<br />

operation in 2003. The Ledwaba family<br />

retained ownership but rented the business to<br />

someone else until early 2012 when it was<br />

inherited by Lucas Ledwaba who worked to<br />

formalise the operations and register it as a<br />

private company. Since then the<br />

Mashashane Filling Station (MFS) has only<br />

improved and grown under Lucas’<br />

leadership.<br />

Lucas is a self-made man who, in spite of<br />

not having a formal tertiary education, has<br />

natural business acumen, understands the<br />

nature of his business, has experience and is<br />

a formidable entrepreneur.<br />

Making full use of the three underground tanks<br />

for petrol with a total capacity of 41000 litres<br />

for ULP 95, ULP 93 and LRP 93, a disciplined<br />

Old Mutual is a Licensed Financial Services Provider


Lucas managed to increase the fuel sales from<br />

3 000 litres to approximately 62 000 litres<br />

per month. He then went on to improving<br />

the business by building a convenience<br />

store, fencing off the property and buying a<br />

business vehicle.<br />

employs 6 petrol attendants and 3 cashiers.<br />

They started operating 24 hours a day, seven<br />

days a week as of December 2015. MSF is<br />

even prepared with a standby generator in<br />

case of load shedding, though at the moment,<br />

it is not a major problem in the area.<br />

In 2015 Masisizane provided Lucas with<br />

a loan which he used to acquire two more<br />

overland diesel tanks, each with a capacity<br />

of 9 000 litres. He also had the foresight<br />

of having an awning constructed that would<br />

provide much-needed shade to his customers<br />

and employees in this extremely warm part of<br />

South Africa with its harsh climatic conditions.<br />

The Mashashane Filling Station under Lucas’<br />

direction now uses a tag system in the forecourt,<br />

As a well-respected and concerned member of<br />

the Mashashane community, Lucas Ledwaba<br />

recognised the deficit caused by a lack of<br />

internet access in the area.<br />

To redress this he provided an office on the<br />

MFS premises to a young unemployed youth<br />

from the area who now successfully operates<br />

the only Internet Café in the area, providing<br />

services ranging from faxing to internet access.<br />

Lucas with some of his employees at MFS.<br />

Lucas receiving the award for the<br />

Best Youth Owned <strong>Business</strong> in <strong>Limpopo</strong> from<br />

management of the Masisizane Fund.<br />

Kokstad Flagship Office 039 727 3100 NDlamini2@oldmutual.com<br />

Eastern Cape 043 704 0116 PMlilo@oldmutual.com<br />

Gauteng (incl. North West, Free State) 011 217 1746 NBoqo@oldmutual.com<br />

Western Cape 021 509 5074 ASnyders@oldmutual.com<br />

KwaZulu-Natal 031 335 0402 SNkosi4@oldmutual.com<br />

<strong>Limpopo</strong> (Incl. Mpumalanga) 015 287 4279 BSemenya@oldmutual.com<br />

More information on Masisizane can also be accessed from our<br />

website: www.masisizane.co.za<br />

An initiative of the<br />

Group<br />

bds L10404 29.03


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<br />

partnership 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 />

apolitical, 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 2016 is to:<br />

Polokwane Chamber of <strong>Business</strong> 2016 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 / +27 15 297 8058<br />

Email: admin@pcob.co.za<br />

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

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

84


The Black Management<br />

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

FOCUS<br />

Advancing socio-economic transformation.<br />

The Black Management Forum (the BMF) is the foremost organisation<br />

in the development of managerial leadership and advancement<br />

of socio-economic transformation in South Africa. Our<br />

focus in <strong>Limpopo</strong> is to ensure that we support and develop those<br />

already in managerial positions. We also support those who aspire to<br />

be managers. The newly-elected leadership lead by Dr John Mudau as<br />

the provincial Chairperson has recommitted assisting past and current<br />

members to hold the highest ethical standards.<br />

The current programmes include:<br />

• Engagement with district mayors. This programme is aimed at<br />

ensuring that municipalities at all levels are assisted to get out<br />

of the difficulties they find themselves in, particularly related to<br />

audit opinions. It is the view of this leadership that the BMF should<br />

provide technical support and, in some cases, competent human<br />

capital that will assist municipalities. It is unacceptable to the BMF<br />

that two decades after independence the province still struggles<br />

to get competent people. We think BMF should encourage its<br />

members to make their skills available to municipalities. We are<br />

equally happy with the support we are getting from both district<br />

and local mayors in this regard.<br />

• Support for women in business. It is the considered view of the BMF<br />

in <strong>Limpopo</strong> that if the economy of the province is to be rejuvenated<br />

and the province’s contribution to national GDP is to increase, BMF<br />

must do the right thing. This means supporting women in business.<br />

BMF has reached an agreement with IDC. The agreement requires<br />

BMF to submit a list of women-owned agri-processing companies<br />

to the IDC. The Chief Executive Officer of the IDC had committed<br />

that the corporation will fund these companies. This is the right<br />

thing to do and will assist the province greatly.<br />

• The development of young entrepreneurs. The provincial leadership<br />

is embarking on a youth entrepreneurship programme<br />

through the BMF Young Professional wing. The idea is to encourage<br />

young professionals to start their own businesses which they will<br />

manage on their own. This will help to truly transform the economy<br />

of the province.<br />

Dr John Mudau, Black<br />

Management Forum<br />

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

Chairperson<br />

CONTACT INFO<br />

Physical address: 73 Biccard<br />

Street, Maneo House PWC,<br />

Polokwane 0700<br />

Acting Provincial<br />

Administrator (<strong>Limpopo</strong>)<br />

Black Management Forum<br />

(BMF): David S Maatsie<br />

Tel: +2715 297 0780<br />

Mobile: +27 076 267 <strong>18</strong>49<br />

E-mail: BMFL@bmfonline.<br />

co.za<br />

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

85 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Education and training<br />

Relevant training for employment is a provincial priority.<br />

The <strong>Limpopo</strong> Provincial Government is running a national pilot<br />

project in training for Tool, Dye and Mould-Making.<br />

There is a plan to establish a Manufacturing Support Centre to<br />

make sure that the right skills are being taught to support industry.<br />

Participants include the <strong>Limpopo</strong> Tooling Initiative Advisory Board, the<br />

Technology Information Agency and universities.<br />

During the 2016/17 financial year, the provincial government<br />

employed 134 graduates. A further 120 trainee field rangers were<br />

recruited through the Jobs Fund. Deployment to work in game and<br />

nature reserves began in April 2016 and continued through <strong>2017</strong>, in<br />

consultation with traditional authorities around the province. Another<br />

6 362 young people were trained in business and technical skills and<br />

3 907 were employed in either the public and private sector. A further<br />

8 300 will be absorbed in the <strong>2017</strong>/<strong>18</strong> financial year as part of the same<br />

programme. In a specialist programme to develop skills in the green<br />

economy, 31 young people are studying energy management systems.<br />

Other training achievements include:<br />

• 31 being certified as energy managers<br />

• 6 fully accredited as artisans<br />

• 949 community members receiving ICT skills training.<br />

The Medupi Power Station Joint Venture (Grinaker-LTA, Murray &<br />

Roberts and Concor) has a training facility where about 1 300 local people<br />

have been trained to qualify for jobs on this complex building site.<br />

De Beers has established a Skills Development Centre, linked to its<br />

Venetia Mine. The centre caters not only to mine employees, but also<br />

EDUCATION STATISTICS, <strong>2017</strong><br />

Scholar transport schools 255<br />

NSNP beneficiaries* 3 854<br />

No-fee school pupils<br />

1.7-million<br />

Primary Schools offering Grade R 2 339<br />

Classrooms built 2015/16 354<br />

New schools built 2015/16 5<br />

Teachers given extra training:2013-2016 1 400<br />

* National Schools Nutrition Programme<br />

SOURCE: LIMPOPO PREMIER’S STATE OF PROVINCE SPEECH, <strong>2017</strong><br />

SECTOR INSIGHT<br />

Trainee field rangers have<br />

been recruited through the<br />

Jobs Fund.<br />

for local school pupils and adults<br />

from the community of Alldays.<br />

Impala Platinum, with<br />

<strong>Limpopo</strong> subsidiary Marula<br />

Platinum, has a partnership with<br />

the National Department of<br />

Mineral Resources and the Da<br />

Vinci Institute for Technology<br />

Management, which focuses on<br />

the training of black women in<br />

the mining industry.<br />

Anglo Platinum (Amplats) has<br />

a new Mining Training Centre<br />

(Eastern Limb) at its Twickenham<br />

mine which will also deliver training<br />

and assessment to staff of<br />

other operations.<br />

There are seven Technical<br />

and Vocational Education and<br />

Training (TVET) colleges in<br />

<strong>Limpopo</strong>: Capricorn College,<br />

Lephalale College, Mopani East<br />

College, Mopani South College,<br />

Sekhukhune College, Vhembe<br />

College and Waterberg College.<br />

Capricorn College has three<br />

campuses, each of which has a<br />

slightly different focus. The city<br />

campus in Polokwane offers business<br />

studies, engineering and<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

86


OVERVIEW<br />

National Curriculum Vocation<br />

(NCV) subjects. Seshego (near<br />

Polokwane) has an engineering<br />

focus while Senwabarwana is<br />

situated in a rural area and concentrates<br />

on teaching hospitality<br />

and hairdressing.<br />

At Lephalale TVET College<br />

students can study <strong>Business</strong><br />

Studies, Hospitality, Engineering<br />

Studies, Nature Management<br />

and Computer Science. The college<br />

has a satellite campus at<br />

Modimolle. Murray & Roberts is<br />

training hundreds of artisans at<br />

the Tlhahlong training centre in<br />

partnership with the college and<br />

merSETA.<br />

Waterberg College operates<br />

as five business training centres<br />

across two municipalities,<br />

namely Lepelle-Nkumbi and<br />

Mogalakwena.<br />

Tertiary<br />

Sixty students proudly enrolled<br />

in January 2016 at the School<br />

of Medicine at Turfloop. This<br />

forms part of the reconstituted<br />

Faculty of Health Sciences of the<br />

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

Polokwane Municipality has<br />

made the land available for the<br />

construction of the <strong>Limpopo</strong><br />

Academic Hospital and the national<br />

Ministry of Finance has announced<br />

that it will be working<br />

towards the realisation of plans<br />

for both the <strong>Limpopo</strong> Academic<br />

Hospital and the new Medical<br />

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

The curriculum for the<br />

undergraduate programme<br />

has been approved by the<br />

Health Professions Council<br />

The Sumbandila Scholarship Trust supports poor pupils in the<br />

Vhembe District at Ridgeway College.<br />

of South Africa (HPCSA) and the Council for Higher Education<br />

accrediting committee.<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.<br />

The University of Venda for Science and Technology (Univen) is<br />

situated in Thohoyandou in the far north-eastern part of the province.<br />

Univen has eight schools, with Environmental Sciences, Agriculture and<br />

Rural Development and Forestry illustrating the practical emphasis of<br />

the institution. The School of Environmental Sciences is planning to<br />

establish a mining-engineering programme.<br />

The University of South Africa (Unisa), which mostly has correspondence<br />

students, has a regional support centre in Polokwane and<br />

agencies at Makhado and Giyani.<br />

The Turfloop Graduate School of Leadership is based in Edupark,<br />

Polokwane, and offers three master’s degrees. These are the Master<br />

of <strong>Business</strong> Administration (MBA), the Master of Public Administration<br />

(MPA) and the Master of Development (MDev).<br />

ONLINE RESOURCES<br />

Council of Higher Education: www.che.ac.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: www.univen.ac.za<br />

Waterberg College: www.waterbergcollege.co.za<br />

87 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Tourism<br />

Cultural tourism is growing fast in <strong>Limpopo</strong>.<br />

SECTOR INSIGHT<br />

Rural villagers have been<br />

encouraged to host tourists.<br />

• 80% of game hunting<br />

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

• Park Inn by Radisson<br />

Polokwane has opened.<br />

<strong>Limpopo</strong> Province has very varied tourism assets that include<br />

the bare bushveld of the north, misty mountains in the central<br />

highlands, hot springs, a unique cycad forest, great golf courses<br />

and the northern part of the Kruger National Park. There are<br />

numerous private game reserves and many provincial game and nature<br />

reserves.<br />

<strong>Limpopo</strong>’s national parks are run by South African National Parks<br />

(SANParks). These are Kruger, Mapungubwe and Marakele national<br />

parks. There are more than 50 provincial nature reserves managed by<br />

the <strong>Limpopo</strong> Department of Economic Development, Environment<br />

and Tourism (LEDET). They serve to promote tourism, develop the local<br />

economies and promote ecological conservation. Many of these<br />

reserves are communally owned but jointly managed by the province<br />

and communities.<br />

The provincial government has committed to enhancing the value<br />

of <strong>Limpopo</strong>’s two UNESCO World Heritage Sites, Mapungubwe Heritage<br />

Site and Makapans Valley. This is also a priority programme in the National<br />

Tourism Sector Strategy. The Waterberg Biosphere Reserve is a UNESCO<br />

protected site.<br />

<strong>Limpopo</strong> in 2016/17 attracted 405 734 visitors to the province, generating<br />

an amount of R1.8-billion for the provincial economy.<br />

A new drive to promote home-stays is under way in the northern<br />

part of the province. Promoting<br />

local culture and small enterprises<br />

is in keeping with the designation<br />

of the year <strong>2017</strong> by the United<br />

Nations as the International Year<br />

of Sustainable Tourism.<br />

Getting tourists to eat mopani<br />

worms and learn about local<br />

traditions and cultural practices<br />

would help to generate income<br />

for villages and hamlets otherwise<br />

outside the mainstream<br />

economy.<br />

In support of the arts and<br />

culture sector, a potential area of<br />

growth for tourism in <strong>Limpopo</strong>, a<br />

performance theatre is to be built<br />

in Polokwane.<br />

The Mapungubwe Festival<br />

is growing in stature every year.<br />

In addition to the popular musical<br />

performances, crafters have<br />

an opportunity to display their<br />

crafts and generate good income<br />

during the festivities.<br />

The Marula Festival has been<br />

even more of a success. The event<br />

regularly attracts 30 000 festival-<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

88


OVERVIEW<br />

goers. Several neighbouring<br />

countries are well represented in<br />

the crowds and 13 co-operatives<br />

operating under the Mukumbi<br />

Industries brand normally brew<br />

about 12 000 litres of marula<br />

beverages for the thirsty crowds.<br />

Other marula products are also<br />

sold such as nuts, body lotions,<br />

jam, cooking oil and soap.<br />

The South African Golf Tourism<br />

Association says that up to 10%<br />

of visitors to the country are attracted<br />

by its golf courses, and<br />

<strong>Limpopo</strong>’s offering has been extended<br />

and improved in recent<br />

years. At the high-end of the luxury<br />

offering are the Zebula Golf<br />

Estate and Spa (west of Bela-Bela)<br />

and the Legend Golf and Safari<br />

Resort which has the single most<br />

dramatic golf hole in the world: a<br />

par-three where golfers tee off the<br />

top of a mountain and take aim at<br />

an Africa-shaped green way down<br />

at the bottom of the hill.<br />

Adventurous visitors can<br />

choose from off-road biking,<br />

hunting, elephant rides and tough<br />

4x4 trails. A vast array of different<br />

cultures extend from the Rain<br />

Queen and her people in the central<br />

districts, to the myth-inspired<br />

art of the Venda in the north, to<br />

the bright geometric house designs<br />

of the Ndabele people in<br />

the Sekhukhune District.<br />

Although most of the province’s<br />

resorts and lodges are in<br />

private hands, the province has<br />

three national parks, and the<br />

provincial government runs<br />

54 nature reserves of different<br />

types. The combined land area<br />

of <strong>Limpopo</strong>’s national, provincial<br />

and private game and nature reserves<br />

is 3.6-million hectares.<br />

According to the <strong>Limpopo</strong> Premier’s office, the tourism sector<br />

employs about 22 414 people.<br />

The <strong>Limpopo</strong> Tourism Agency is pursuing a multi-national<br />

tourism strategy, with the <strong>Limpopo</strong>-Zambezi brand initiative one<br />

example of new approaches to marketing the province.<br />

Hotels and casinos<br />

A new 160-room Park Inn by Radisson Polokwane has opened in the<br />

provincial capital. Located near the golf course and the Peter Mokaba<br />

Stadium, the hotel also has conference and event facilities.<br />

Tsogo Sun runs the Garden Court Polokwane, which has <strong>18</strong>0 rooms<br />

ranging from executive suites to family rooms.<br />

The Protea Hotel group has three hotels in the province. In the<br />

capital city of Polokwane, the Protea Hotel Landmark has 80 rooms<br />

and six conference venues. Just outside the city is the Protea Hotel<br />

Ranch Resort where guests can walk with lions. The hotel is on a 1 000-<br />

hectare nature conservancy and specialises in catering for weddings.<br />

In Mokopane near the Waterberg mountains, the Protea Hotel The Park<br />

has 125 rooms and can cater for up to 400 conference delegates. The<br />

three-star hotel recently added 25 self-catering units.<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. The<br />

<strong>Limpopo</strong> Gambling Board regulates the industry and grants licences.<br />

The Mopani District was recently granted two new bingo licences.<br />

The most recent casino licence was awarded to Peermont Global<br />

Resorts for the official launch and operation of the Thaba Moshate<br />

Casino, Hotel and Conference Centre in the Greater Tubatse Local<br />

Municipality. During construction 751 people were employed and<br />

a further <strong>18</strong>0 permanent jobs are expected when the casino is<br />

fully operational.<br />

There are now 237 limited pay-out gambling machines in the<br />

province, and licences of one sort or another generated R50-million<br />

for the 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 area<br />

particularly rich in birdlife. This community-owned project needs a<br />

89 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

private investor with about R10-million to invest in upgrading the<br />

lodge’s six chalets and adding another 14. A master plan and environmental<br />

impact assessment report already exists.<br />

Several resorts in a variety of climatic regions fall under the control<br />

of the provincial body, <strong>Limpopo</strong> Wildlife Resorts. Fourteen of the<br />

province’s resorts have been targeted for refurbishment, creating 320<br />

temporary and 120 permanent jobs. Annual revenue of R10-million is<br />

expected to be gained from these revamped resorts, which include<br />

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 rich in private game<br />

reserves, some of which are regarded as among the finest luxury tourist<br />

offerings in the world. The Sabi Sands Game Reserve has several<br />

accommodation options within its 65 000 hectares, ranging from the<br />

luxurious to the ultra-luxurious. Like the Manyaleti Game Reserve to<br />

its north, Sabi Sands effectively forms the western boundary of the<br />

Kruger Park, with animals free to roam in and out of 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 located<br />

within the Entabeni Safari Conservancy in the Waterberg District.<br />

The exclusive Jackalberry Lodge (16 guests at a time) lies to the east<br />

within the Thornybush Game Reserve which is a reserve of 10 500ha<br />

of pristine bush just outside the Kruger National Park.<br />

Forever Resorts encompasses 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 <strong>Limpopo</strong>’s<br />

successful partnership with a neighbouring country. A grant of more<br />

than R600 000 from the <strong>Limpopo</strong><br />

Local Economic Development<br />

programme aims to link the poorer<br />

rural communities along the route<br />

with the more mainstream economic<br />

nodes. Open Africa is the<br />

lead agent in developing community<br />

tourism.<br />

From game reserves in<br />

<strong>Limpopo</strong> (including the Kruger<br />

National Park) to the beaches of<br />

Xai-Xai in Mozambique, the route<br />

has been supported by private operators<br />

and investors and therefore<br />

is able to offer excellent products<br />

and services to complement<br />

the natural scenery. The Bush to<br />

Beach Tourism Route is one of several<br />

such routes in the province,<br />

including:<br />

• Kruger to Canyon, linking<br />

Phalaborwa to the Blyde River<br />

Canyon through the Kruger<br />

National Park<br />

• Seraki Blouberg, in the<br />

Blouberg mountain range, including<br />

two nature reserves<br />

and encompassing the land of<br />

the 160 000 people living in 117<br />

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.<br />

A 3 000-year-old baobab,<br />

43 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 />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

90


INTERVIEW<br />

Park Inn by Radisson<br />

Polokwane<br />

Mr Mofasi Lekota, owner of Polokwane’s latest<br />

new hotel, outlines his vision.<br />

Mofasi Lekota<br />

BIOGRAPHY<br />

Mofasi Lekota gained his first<br />

degree from the University of<br />

<strong>Limpopo</strong> which was followed<br />

by an MBA from Rutgers University<br />

(USA) and he is currently<br />

studying for a doctorate<br />

in <strong>Business</strong> Management. He<br />

has Board Leadership Development<br />

qualifications from American<br />

and South African schools<br />

of business. He has been on<br />

the boards of JSE-listed companies<br />

like Adcorp Holdings<br />

and is currently the executive<br />

chairman of Amazin Hotels<br />

and the non-executive Chairman<br />

of the <strong>Limpopo</strong> Economic<br />

Development Agency.<br />

Why have you invested in Polokwane?<br />

I am originally from Polokwane so I have ties with the province and<br />

the city. I spend quite a lot of time here, and I’m also involved in the<br />

<strong>Limpopo</strong> Economic Development Agency (LEDA) as non-executive<br />

Chairman. I’ve been in other parts of the country and spent some<br />

time overseas. I have invested in a variety of businesses including<br />

cement manufacturing.<br />

My interest in hospitality started a few years ago with a B&B in<br />

Midrand, followed by a lodge in Makhado and a 70-room hotel in<br />

Mbombela. The investment decision was influenced to some extent by<br />

the fact that I come from here, I understand the community and there<br />

is an embedded wish to invest back in the community I come from.<br />

What is the target market?<br />

Globally the Park Inn brand targets both business and leisure travellers<br />

who attach importance to quality of service and value for money. A<br />

clean, comfortable hotel that provides best-in-class service.<br />

As a relatively new entrant in the hospitality market mainstream, it<br />

was important to match the project to a clear gap. I wanted to address<br />

an existing need and Polokwane came to mind.<br />

Why Radisson?<br />

I looked at almost all the major international hotel operators in my<br />

thorough research. The first thing I liked about Radisson was the principle<br />

that they don’t own, but operate hotels, so there is no potential for<br />

conflict of interest. The second thing was their vision for Africa. They<br />

are one of the fastest growing brands on the African continent. I liked<br />

the energy and the support that their management give, especially<br />

the technical support during the development phase. The choice<br />

was very deliberate.<br />

How important will the events/conferences side of the<br />

business be?<br />

It is important to us. We have large enough facilities, to cater for select<br />

groups and the latest conferencing technology. We offer some of the<br />

best in the province.<br />

91 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<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 />

Outdoor pursuits<br />

National parks: The Kruger<br />

National Park covers nearly 20 000<br />

square kilometres and attracts<br />

more than a million visitors annually.<br />

It has six ecosystems, 1 982<br />

species of plants, 517 species of<br />

birds and 147 species of mammals<br />

– including each of the “Big Five”:<br />

lion, leopard, African elephant,<br />

African buffalo and 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 mountains<br />

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 in<br />

the Olifants and Blyde canyons in<br />

the east of the province. Mountain<br />

biking is a favourite activity in the<br />

Magoebaskloof area, while quadbiking<br />

can be found in parts of the<br />

province.<br />

Hunting: The centre of hunting<br />

is the north-western town of<br />

Lephalale, with other northern<br />

towns like Alldays, Vivo, Musina<br />

and Dendron near to private game farms on which hunting is undertaken.<br />

This lucrative activity is strictly controlled by the Professional<br />

Hunters’ Association (PHA), with certain restrictions in place to protect<br />

the long-term future of the environment. The PHA estimated the value<br />

of the industry in 2010 at R7.6-billion.<br />

About 80% of the hunting that takes place in South Africa occurs in<br />

<strong>Limpopo</strong> on approximately 4 500 farms. Wildlife auctions are popular<br />

events in <strong>Limpopo</strong>. Wild Life Rancher website gives regular updates<br />

on the latest auctions. Some examples of prices achieved at auctions<br />

in <strong>2017</strong> include R3.6-million for a Nyala bull, R24.8-million for three<br />

buffalo cows (Piet du Toit auctions) and a combined turnover at an<br />

auction held by Dries Visser Pure Bred Game of R44.7-million. These<br />

figures give an indication of the potential of this market.<br />

Birding: The Blouberg Nature Reserve is an excellent site for Cape<br />

Vultures, containing as it does one of the largest breeding colonies.<br />

Four birding routes criss-cross the province, illustrating the diversity of<br />

birds found in the province’s varied terrain. More than 600 bird species<br />

have 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, Environment<br />

and Tourism: www.ledet.gov.za<br />

<strong>Limpopo</strong> Department of Sport, Arts and Culture:<br />

www.sac.limpopo.gov.za<br />

Marula Festival: www.limpopomarulafest.co.za<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 />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

92


<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 />

Mowaneng Building, 40 Hans van Rensburg Street, Polokwane 0700<br />

Tel: +27 15 287 6515 | Fax: +27 15 291 3911<br />

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

Department of Agriculture<br />

MEC: Mr Seaparo Charles Sekoati (Acting)<br />

Temo Towers, 69 Biccard Street, Polokwane 0699<br />

Tel: +27 15 294 3147 | Fax: +27 15 294 4506<br />

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

Department of Co-operative Governance,<br />

Human Settlements and Traditional Affairs<br />

MEC: Ms Makoma Makhurupetje<br />

20 Rabie Street, Hensa Building, Polokwane 0700<br />

Tel: +27 15 284 5060 | Fax: +27 15 291 3988/086 576 4784<br />

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

Department of Economic Development,<br />

Environment and Tourism<br />

MEC: Mr Charles Seaparo Sekoah<br />

Evridiki Towers, 20 Hans van Rensburg Street, Polokwane 0699<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 />

Department of Education Building, cnr Biccard and Excelsior Streets,<br />

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 />

<strong>18</strong> College Street, Polokwane 0699<br />

Tel: +27 15 293 6000 | Fax: +27 15 293 2836<br />

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

Department of Public Works, Roads and<br />

Infrastructure<br />

MEC: Mr Jeremiah Ndou<br />

43 Church Street, Polokwane 0699<br />

Tel: +27 15 284 7000<br />

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

Department of Security, Safety and Liaison<br />

MEC: Ms Nandi Ndalane<br />

32 Schoeman Street, Polokwane 0699<br />

Tel: +27 15 290 7600 | Fax: +27 15 295 8979<br />

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

Department of Social Development<br />

MEC: Ms Joyce Mashamba<br />

<strong>18</strong> College Street, Polokwane 0700<br />

Tel: +27 15 293 6027/04 | Fax: +27 15 293 6170/50<br />

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

Department of Sport, Arts and Culture<br />

MEC: Ms Oniccah Moloi<br />

Olympic Towers, 21 Biccard Street, 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 />

MEC: Ms Nandi Ndalane<br />

Pomoko Towers, cnr Bodenstein and Church Streets, Polokwane<br />

Tel: +27 15 295 1000 | Fax: +27 15 295 1163<br />

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

Provincial Treasury<br />

MEC: Mr Rob Tooley<br />

Ismini Towers, 46 Hans van Rensburg Street, Polokwane 0699<br />

Postal address: Private Bag X9486, Polokwane 0700<br />

Tel: +27 15 298 536<br />

Fax: +27 15 295 8873/7010<br />

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

93 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


LISTING<br />

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

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

CAPRICORN DISTRICT MUNICIPALITY<br />

Physical address: 41 Biccard Street, Polokwane 0699<br />

Postal address: PO Box 4100, Polokwane 0700<br />

Tel: +27 15 294 1000<br />

Fax: +27 15 294 1292<br />

Website: www.cdm.org.za<br />

Blouberg Local Municipality<br />

Tel: +27 15 505 7100 | Fax: +27 15 505 0296<br />

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

Lepelle-Nkumpi Local Municipality<br />

Tel: +27 15 633 4500 | Fax: +27 15 633 6896<br />

Website: www.lepelle-nkumpi.gov.za<br />

Molemole Local Municipality<br />

Tel: +27 15 501 0243 | Fax: +27 15 501 0419<br />

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

Polokwane Local 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 />

MOPANI DISTRICT MUNICIPALITY<br />

Physical address: Government Building, Main Road, Giyani 0826<br />

Postal address: Private Bag X9687, Giyani 0826<br />

Tel: +27 15 811 6300<br />

Fax: +27 15 812 4301<br />

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

Ba-Phalaborwa Local Municipality<br />

Tel: +27 15 780 6300<br />

Fax: +27 15 781 0726<br />

Website: www.ba-phalaborwa.gov.za<br />

Greater Giyani Local Municipality<br />

Tel: +27 15 811 5500<br />

Fax: +27 15 812 2068/1683<br />

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

Greater Letaba Local Municipality<br />

Tel: +27 15 309 9246<br />

Fax: +27 15 309 9419<br />

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

Greater Tzaneen Local Municipality<br />

Tel: +27 15 307 8000<br />

Fax: +27 15 307 8049/48<br />

Website: www.tzaneen.gov.za<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 />

Elias Motsoaledi Local Municipality<br />

Tel: +27 13 262 3056 | Fax: +27 13 262 2547/4530<br />

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

Ephraim Mogale Local Municipality<br />

Tel: +27 13 261 8400 | Fax: +27 13 261 2985<br />

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

Fetakgomo-Greater Tubatse Local<br />

Municipality<br />

Tel: +27 15 622 8000 | Fax: +27 15 622 8026<br />

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

Makhuduthamaga Local Municipality<br />

Tel: +27 13 265 8600 | Fax: +27 13 265 1975/1076<br />

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

VHEMBE DISTRICT MUNICIPALITY<br />

Physical address: Old Parliament, Government Complex,<br />

Tusk Venda 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 />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

94


LISTING<br />

Makhado Local Municipality<br />

Tel: +27 15 519 300 | Fax: +27 15 516 1195<br />

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

Musina Local Municipality<br />

Tel: +27 15 534 6100 | Fax: +27 15 534 2513<br />

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

Mutale Local Municipality<br />

Tel: +27 15 967 9600 | Fax: +27 15 967 9677/9654<br />

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

Thulamela Local 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 X10<strong>18</strong>, Modimolle 0510<br />

Tel: +27 14 7<strong>18</strong> 3300<br />

Fax: +27 14 717 2931<br />

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

Bela-Bela Local Municipality<br />

Tel: +27 14 736 8000 | Fax: +27 14 736 3288<br />

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

Lephalale Local Municipality<br />

Tel: +27 14 763 2193<br />

Fax: +27 14 763 5662/086 534 3440<br />

Website: www.lephalale.com<br />

Lim 368 Local Municipality<br />

Tel: +27 14 7<strong>18</strong> 2000 | Fax: +27 14 717 4077<br />

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

Mogalakwena Local Municipality<br />

Tel: +27 15 491 9630<br />

Fax: +27 15 491 9755<br />

Website: www.mogalakwena.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 />

Bele-Bela<br />

N11<br />

Mogalakwena<br />

Mookgophong<br />

Bela-Bela<br />

Lim 368<br />

Mokopane<br />

N1<br />

Modimolle<br />

Alldays<br />

Blouberg<br />

N11<br />

Capricorn<br />

Molemole<br />

R81<br />

N1<br />

Makhado<br />

POLOKWANE<br />

Polokwane<br />

Ephraim<br />

Mogale<br />

Makhado<br />

Lepele-Nkumpi<br />

Makhuduthamaga<br />

Vhembe<br />

Tshipise<br />

Greater Letaba<br />

Tzaneen<br />

Greater Tzaneen<br />

Fetakgomo-Greater<br />

Tubatse<br />

Sekhukhune<br />

Thohoyandou<br />

Thulamela<br />

Kruger<br />

R81<br />

National<br />

Area<br />

Greater Park<br />

Giyani<br />

Mopani<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 />

95 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


PROFILE<br />

City of Polokwane<br />

<strong>Business</strong> opportunities on offer in multiple sectors.<br />

Polokwane is the capital of the <strong>Limpopo</strong> Province<br />

and the seat of the Provincial Legislature and Premier.<br />

It is centrally located in the Capricorn District and is<br />

the biggest urban centre in the province.<br />

Polokwane contributes 13% of the provincial GDP<br />

and is the province’s main centre for industry, commerce,<br />

education and medical services. It covers an<br />

area of 3 766km².<br />

The city lies on the N1 highway leading from<br />

Johannesburg to Zimbabwe, the Great North<br />

Road, and consequently logistics is a thriving sector.<br />

Polokwane International Airport handles an average<br />

of 3 700 aircraft, carrying 60 000 arriving and<br />

departing passengers a year.<br />

Polokwane is the most densely populated part of<br />

the <strong>Limpopo</strong> Province and the population of close<br />

to 800 000 provides a ready market for goods and<br />

services. The biggest economic sectors of the city<br />

currently are community and government services<br />

(32%), finance (23%) and wholesale and retail trade.<br />

Other significant sectors include transport and<br />

logistics, manufacturing and mining.<br />

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

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

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

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

in the world) and a big brewery run alongside at<br />

least 600 industrial enterprises of a smaller scale. The<br />

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

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

and fruit juice manufacture; confectionery; bricks;<br />

clothing; meat processing; packaging; jewellery.<br />

Nearby agricultural citrus estates send their products<br />

to Polokwane for processing, as do the potato and<br />

tomato farmers who plant on a large scale in the<br />

district. The strong retail sector was strengthened<br />

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

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

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

metres, 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 facilities,<br />

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

trips into the province and beyond. The newly<br />

opened 160-room Park Inn by Radisson Polokwane<br />

is an indication of investor confidence in the city.<br />

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

that forms part of a national group, in this case,<br />

Tsogo Sun.<br />

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

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

Easter.<br />

Polokwane has a number of impressive art galleries<br />

and historical buildings. The city has its own<br />

game reserve and the Peter Mokaba Stadium – a<br />

2010 Soccer World Cup venue – regularly hosts big<br />

football matches and events. Polokwane falls in a<br />

summer rainfall area. The average temperature is<br />

17°C and the average annual rainfall is 598mm<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

96


Identified investment opportunities<br />

Pre-feasibility studies and partners are sought for<br />

a range of investment opportunities across several<br />

sectors.<br />

Manufacturing<br />

To address complete backward and forward linkages<br />

from farmers to the consumers, the following<br />

facilities are required:<br />

• Collection Centres<br />

• Logistics Support Facilities<br />

• Terminal Market Centre<br />

• Other Support Facilities<br />

The Polokwane International Airport could also be<br />

used to transport high-value produce internationally.<br />

Logistics<br />

Agri-Logistics Hub: will manage the logistics of agricultural<br />

produce and agri-processed products in and<br />

near the Agri-Processing Park. It will include road, air<br />

and rail options, which will provide further opportunity<br />

to develop air cargo facilities at Polokwane<br />

International Airport.<br />

Truck Stop and Filling Station: a dedicated truck<br />

stop should include a full range of services focussed<br />

on truck maintenance and driver support.<br />

Air cargo: four blocks of hangars with four hangars<br />

in each block could be converted to cargo storage<br />

facilities. There are currently no storage facilities at<br />

the airport. Each hangar offers approximately 540m²<br />

of floor space. Air cargo facilities will open new international<br />

trade markets for products from the city of<br />

Polokwane, Capricorn District and <strong>Limpopo</strong> Province.<br />

This may allow the local trade market to diversify.<br />

Retirement precinct<br />

The Retirement Village Housing will provide housing<br />

for a large number of retirees who will require many<br />

services. In addition, it will provide housing to those<br />

who are physically and mentally handicapped within<br />

special care units.<br />

This will have to be supported by a business complex<br />

where doctors, specialists and other medical personnel<br />

can operate and a retail area where residents of<br />

the retirement village can purchase groceries and<br />

other goods.<br />

• Retirement village housing<br />

• Retirement village business complex<br />

• Private fragile care centre<br />

• Special needs care units<br />

PROFILE<br />

Education<br />

Polokwane has a much better educated adult population<br />

in 2015 than that of Capricorn and <strong>Limpopo</strong>.<br />

Some 19.34% of Polokwane’s population had Grade<br />

12, a certificate, or diploma, compared to Capricorn’s<br />

15.5% and <strong>Limpopo</strong>’s 13.76%. In addition, 10.54%<br />

of Polokwane’s population had higher education<br />

compared to Capricorn’s 7.6% and <strong>Limpopo</strong>’s 5.1%.<br />

• Private schools<br />

• Special needs schools<br />

• Student housing<br />

Tourism<br />

Medical tourism packages: with hospital and medical<br />

staff who specialise in the medical requirements<br />

of the aged, physically and mentally handicapped,<br />

Polokwane can develop medical tourism with<br />

specific focus on these areas. This in turn will increase<br />

transport to and from Polokwane, including<br />

increased air passenger demand at Polokwane<br />

International Airport and accommodation for these<br />

persons in places such as hotels, frail care and<br />

recovery centres.<br />

The School of Medicine is a relatively newly established<br />

school within the Faculty of Health Sciences<br />

of the University of <strong>Limpopo</strong>, located just outside<br />

Polokwane. Additional tourism investment<br />

opportunities include:<br />

• Hotel<br />

• Wedding venue development<br />

CONTACT INFO<br />

Postal address: Polokwane Municipality,<br />

PO Box 111, Polokwane Civic Centre<br />

Tel: +27 15 290 2495 | Fax: +27 15 290 2009<br />

Email: economist@polokwane.gov.za<br />

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

97 LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong>


LISTING<br />

INDEX<br />

Black Management Forum.................................................................................................................................... 83<br />

De Beers Group of Companies – Venetia Mine.............................................................................. 47 - 53<br />

Exxaro Resources Limited....................................................................................................................................... 56<br />

Great North Transport.............................................................................................................................................IFC<br />

Implats................................................................................................................................................................................ 58<br />

IvanPlats............................................................................................................................................................................ 54<br />

LEDA Enterprise Development and Finance Division .......................................................................... 24<br />

Leeto la Polokwane...................................................................................................................................12, 64 - 67<br />

<strong>Limpopo</strong> Connexion...................................................................................................................................... 26 - 28<br />

<strong>Limpopo</strong> Economic Development Agency (LEDA) ............................................................................... 10<br />

<strong>Limpopo</strong> Office of the Premier ..............................................................................................................................8<br />

Masisizane Fund........................................................................................................................................................... 80<br />

Nedbank...........................................................................................................................................................7, 32 , OBC<br />

Old Mutual............................................................................................................................................................ 34 - 37<br />

Park Inn by Radisson Polokwane ............................................................................................................... 5, 89<br />

Polokwane Chamber of <strong>Business</strong> ..................................................................................................................... 82<br />

Polokwane Municipality .................................................................................................................................. 13, 94<br />

Risima Housing Finance Company..........................................................................................................29 - 31<br />

Unemployment Insurance Fund (UIF)...............................................................................................................3<br />

Vodacom.........................................................................................................................................................70 - 75, IBC<br />

LIMPOPO BUSINESS <strong>2017</strong>/<strong>18</strong><br />

98


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