Free State Business 2018 edition

FREE STATE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE FREE STATE
2018 EDITION
JOIN JOIN US ONLINE US ONLINE
WWW.GLOBALAFRICANETWORK.COM | WWW.FREESTATEBUSINESS.CO.ZA
| WWW.LIMPOPOBUSINESS.CO.ZA

MESSAGE
A commitment to
inclusive growth
CEO of the FDC Ikhraam Osman invites business people
to explore the opportunities on offer in the Free State.
IKHRAAM OSMAN
CEO, Free State Development
Corporation
The recovery in agricultural
output had been accompanied
by increased consumer
confidence. Adding to the
good news, manufacturing output
expanded in August for the
first time in 2017. Both external
and domestic as well as cyclical
and structural factors have
contributed to the slowdown
in emerging markets. On average,
external factors have been
the main cause of the slowdown.
Such factors have included weak
global demand due to falling
commodity prices.
Export trade has been shifting
towards emerging market economies
such as China and India, with
the advanced economies’ combined
share of the overall export
basket having declined. The rest
of Africa has become one of the
largest markets for South Africa’s
merchandise exports, accounting
for 27.8% of the overall export
basket in 2016, up from a 25.4%
share in 2010. The extent of South Africa’s trade concentration is higher
at the sectoral level, but has also been improving. The manufacturing
sector accounted for 60% of the merchandise export basket in 2016,
compared to 57.1% in 2010.
In line with Free State Growth & Development Strategy and the
mandate of broadening access to economic opportunities to Free
State-based business sector, the Free State Development Corporation
will continue to unlock business opportunities for both local direct
and foreign direct investors.
This 2018-2019 Free State Business publication presents the Free
State’s value proposition as a business and tourism destination. The
province is open for business with the annual Macufe “Mangaung
African Cultural Festival” that brings up to 150 000 travellers into the
City of Roses, “Bloemfontein” as is commonly known. The “Tabalaza
Initiative” which is a brainchild of MEC for Economics, Small Business,
Tourism and Environmental Affairs, Dr Benny Malakoane, will continue
to link start-up start up innovative business initiatives in the Free State
with funding and mentoring support from established business.
Key opportunities in the Free State includes the following:
• A leading agricultural commodities producer presenting significant
opportunities across the agro-processing value chain.
• Mangaung Metro has announced a R100-billion infrastructure investment
programme to unlock, business, retail, real estate and
infrastructure development along the N8 Corridor.
• A newly launched Special Economic Zone attracting investments in
Food Processing, Manufacturing, Logistics and Beverages.
• An attractive incentive package is available for manufacturing
entrepreneurs that sign a minimum of five-year lease agreements.
• The FDC in partnership with the dti is in a process of revitalising
existing industrial parks and developing new ones.
The FDC investment facilitation team can help you to explore
business opportunities in the Free State. www.fdc.co.za
FREE STATE BUSINESS 2018

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

CONTENTS
CONTENTS
Free State Business 2018 Edition.
Introduction
Foreword6
Free State Business is a unique guide to business, investment
and tourism in the province.
FDC message
CEO of the FDC Ikhraam Osman invites business people to
explore the opportunities on offer in the Free State.
Special features
IFC
Regional overview of the Free State 8
The launch of the Maluti-A-Phofung Special Economic Zone
was a significant event for the economy of the Free State.
The N8 Corridor 12
Linking communities and creating economic opportunities.
Free State Development Corporation opportunities 14
The Free State Development Corporation is driving a number
of exciting investment opportunities in the Free State province.
Establishing a business in SA 26
The barriers to doing business in South Africa have been eased
for local and international companies.
SA investment incentives 28
The South African government has a range of incentives
available to investors, existing companies, entrepreneurs and
co-operatives across many sectors.
FREE STATE BUSINESS 2018
2

UIF SAVING JOBS
THROUGH SOCIALLY
RESPONSIBLE INVESTMENTS
The National Development Plan is a blueprint serving as
a guideline to government departments and state entities
on how they can play a role in government wide efforts
of creating decent work, reducing unemployment and
poverty. The Unemployment Insurance Fund is among
the leading state entities in the implementation of the
provisions of the NDP to address the slow economic
growth, unemployment and poverty in South Africa.
The UIF social investment mandate ensures that,
additional to earning good financial returns, investments
must be supportive of long term economic, social and
adhere to sustainable environmental outcomes. The
investments must also yield a good social return for the
country. These investments have sustained 6 860 jobs of
which 3 024 are permanent, 3 836 are temporary/seasonal
and 195 are new jobs created during the financial year
ending in March 2016.
UIF INVESTMENTS IN RENEWABLE ENERGY
The UIF investments are contributing to the energy
requirements of South Africa and the investments in the
renewable energy sector provides a total capacity of 192
megawatt of electricity of which 117 megawatt is solar
energy and 27 megawatt is wind generated electricity.
The De Aar project is a shining example of the UIF energy
investments and this project produces 90 megawatt of
electricity and was completed in April 2016. The solar plant
in the area generates enough electricity to power 15 000
houses. Another mainstay project is the Phakwe Group ran
projects undertaken in the Northern and Eastern Cape.
INVESTMENT IN FOOD SECURITY
The UIF investments in this regard are undertaken under
the banner of the UIF Agri-Fund in partnership with
Futuregrowth and Day Breaker Poultry Project. The UIF
Agri-Fund has invested in 4 farms situated in Mable Hall
in Limpopo. One of the farms is a cash crop farm spanning
450 hectares. The farm in the last financial year produced
235 hectares of white maize, and cotton was planted in an
area covering 28 hectares.
A further three farms are located in the Saron area in the
Western Cape. In this project a total of 178 hectares has
been used to plant grapes, 37 hectares has been used to
pant citrus fruit. Furthermore, there is potential to plant an
additional 92 hectares of grapes. The Daybreaker Poultry
project operates in Gauteng, Limpopo and Mpumalanga
and the combined projects have facilities to grow 1.6
million broiler chickens.
INVESTMENTS IN HEALTH CARE FACILITIES
The UIF concluded two investments in this regard that
include a BEE hospital manager, Busamed to build a
private hospital in Modderfontein and Fund Manager
Razorite Heatlhcare that focus on the provision of
affordable heathcare facilities that include rehabilitation
and sub-acute centres.
The Modderfontein hospital is a 220 hospital bed with subacute
facilities. This hospital is under construction. While
the RH Fund Manager has concluded seven investments
that include:
• Busamed with four hospital facilities
• HealthMed with two facilities
INVESTMENTS IN EDUCATION
UIF has invested in three investments that play a role
to unlock access to education. The investments were
concluded with Eduloan – an organisation that provides
financial support to tertiary students and South Point and
Educor organisations that provide student accommodation.
By March 2016, Eduloan had disbursed about R446 986.64
benefiting 34 047 students, whiles South Point provided
about 10 000 student with accommodation.
UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT
The UIF has concluded two investments with the aim of
supporting small and medium enterprises. In this regard
the PIC on behalf of UIF has concluded investment deals
with Musa Capital and TOSACO.
The investments will support more than 250 SMMEs across
various sectors inclusive of agriculture and affordable
housing. Musa Capital for example has a supply chain of
over 250 SMME’s that have facilitated the creation of 2 500
jobs.
TOSACO investments is planning to advance capital to
young black entrepreneurs who aspire to own and manage
Total Filling stations around the country.
For more information:
Call: 0800 843 843 or
visit: www.labour.gov.za

CONTENTS
Economic sectors
Agriculture38
Record maize harvests are helping the national economy.
Mining40
Diamonds are sparkling in the Free State.
Manufacturing49
Regional industrial policy aims to attract investors.
Oil and gas 50
Free State gas fields could feed new power stations.
Tourism54
The game industry is set to boost the wider tourism sector.
Education and training 56
Access to education is improving.
Banking and financial services 57
Many agricultural companies are active in financial services.
Development finance and SMME support 58
A business park in Sasolburg is supporting black industrialists.
Government
Free State provincial and local government 62
A guide to the provincial government departments,
metropolitan, district and local municipalities.
Reference
Sector contents 36
MUNICIPALITIES IN THE FREE STATE
North West
Gauteng
Metsimaholo
Fezile Dabi
Ngwathe
Mafube
Mpumalanga
Maps
Nala
Moqhaka
Nketoana
Phumelela
Regional map 11
Municipal map 64
Northern Cape
Tokologo
Matjhabeng
Tswelopele
Lejweleputswa
Masilonyana
Setsoto
Thabo Mofutsanyana
Maluti-a-Phofung
Dihlabeng
KwaZulu
Natal
Mangaung
Mantsopa
Letsemeng
Xhariep
Naledi
LESOTHO
N
Mohokare
Kopanong
Metropolitan/District
Municipality boundary
Local Municipality Boundary
FREE STATE BUSINESS 2018 4
Eastern Cape
District Municipality
Local Municipality
Xhariep
Naledi

I’M AN
ENTREPRENEUR.
AN INNOVATOR.
AND A GAME
CHANGER.
NOW I JUST NEED BIG VALUE
FOR MY SMALL BUSINESS.
You’ve got what it takes to succeed. All you need now
is for your money to up its game for your business,
with a business bundle from Nedbank. Save up to 40%
on banking fees, get 35 free transactions a month,
Greenbacks rewards, discount on your point-of-sale
device, and a dedicated banker. All this and more for only
R219 per month! For more information call 0860 116 400
or search ‘Business Bundle’ on nedbank.co.za.
SAVE UP TO
40%
ON BANKING
FEES
nedbank.co.za
Terms and conditions apply.
see money differently
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

FOREWORD
Free State Business
A unique guide to business and investment in
the Free State.
Free State Business 2018 is the eighth edition of this successful
production. Since its launch in 2008, Free State Business has
established itself as the premier business and investment
guide to the Free State Province. Supported and utilised by
the Free State Development Corporation (FDC), the publication is
unique in that its focus is exclusively on the business and investment
environment of the Free State.
The print journal is supported by the ebook edition at
www.freestatebusiness.co.za and updates, business news and event
listings can be found on the monthly Business SA e-newsletter, with
a circulation of over 30 000.
Global Africa Network Media (www.globalafricanetwork.com), the
publisher of Free State Business, specialises in business-to-business
print publications, producing a series of region-specific, annual print
journals. Every province in South Africa is covered by this unique
range of journals and websites, complemented by a national business
guidebook, South African Business.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
www.globalafricanetwork.com
CREDITS
Publisher: Chris Whales
Publishing director:
Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Colin Carter
Production: Lizel Olivier
Ad sales: Sydwell Adonis, Nigel
Williams, Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Siyawamkela Sthunda,
Vanessa Wallace, Jeremy Petersen
and Reginald Motsoahae
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
Free State Business is distributed nationally on outgoing and
incoming trade missions; via the Free State Development
Corporation (FDC); at top national and international events;
through the offices of foreign representatives in South Africa;
as well as nationally and regionally via chambers of commerce,
tourism offices, trade and investment agencies, provincial government
departments, municipalities, airport lounges and
companies.
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
Member of the Audit Bureau
of Circulations ISSN 1999-5059
COPYRIGHT | Free State Business is an independent publication published
by Global Africa Network Media (Pty) Ltd. Full copyright to the
publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Pictures supplied by flickr.com, Public Domain
Images, Wikimedia Commons, skyscrapercity.com, Eugene Armer
RailPictures, Roodt Architects and Pixabay.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in Free State Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.
FREE STATE BUSINESS 2018
6

A REGIONAL OVERVIEW OF
FREE STATE
PROVINCE
A new Special Economic Zone is
attracting investors
The official launch in April 2017 of the Maluti-A-Phofung Special Economic Zone was a
significant event for the economy of the Free State.
By John Young
Although agriculture and mining remain
the mainstays of the provincial economy,
diversification and expansion through
initiatives such as Special Economic
Zones (SEZs) are key to the future of the centrally
located province.
Sectors prioritised at the Maluti-A-Phofung SEZ
(which is located on South Africa’s busiest highway,
the N3) include logistics, ICT, automotive, pharmaceuticals,
manufacturing and agri-processing. The
1 000ha site will have four zones: agri-processing, light
industrial, heavy industrials and a container terminal.
The reference to agri-processing points to a
broader trend in economic planning in South Africa
– the desire to create value-added goods out of raw
materials. This applies to agriculture (in which the
Free State enjoys great riches) and minerals.
Five agri-parks are planned in each of the Free
State’s district municipalities which will boost production
so that more produce is available for beneficiation.
Within these parks, support for rural smallholders
will be available in terms of equipment hire
from a central source, storage facilities, packaging of
produce and getting products to market. The use
of small towns such as Cornelia, Tweeling, Excelsior
and Tweespruit as hubs under the Comprehensive
Rural Development Programme (CRDP) should
boost the rural economy and provide opportunities
for investors.
The idea of clustering developments is also
behind the N8 Corridor concept which covers
Bloemfontein, Botshabelo and Thaba Nchu. Within
this are several projects including the ICC Precinct
(hotel and convention centre in Bloemfontein), Bio-
Medical Park, Airport Node (logistics and supply
chain, warehouses, residential apartments, hospitals,
schools, hotels and new shopping malls), and tourism
infrastructure for the Naval Hill Development.
Another important pillar of the economy of the
Free State, the chemicals and fuels hub at Sasolburg,
is modernising and expanding. International fuel,
gas and chemicals company Sasol regularly invests
in new technologies and in expanding production
of its various products.
FREE STATE BUSINESS 2018
8

SPECIAL FEATURE
The Provincial Government
of the Free State has hosted
two events targeting foreign
investors, called the Free State
Global Investors Trade Bridge.
In November 2016 the first Free
State/Madeira Flower Festival took
place in Parys. This is a first step in
creating links to export markets in
floriculture and horticulture.
A new water pipeline from
the Xhariep Dam is being built to
serve the Xhariep District and the
Mangaung Metro. A steady and
reliable water source is an important
component in attracting
investment.
Five major national highways
intersect the centrally
located province which is also
well served by rail and air links.
The Bram Fischer International
Airport in the provincial capital
city of Bloemfontein is the site of
a multi-phase industrial and commercial
development. Two leading universities (the
University of the Free State and the Central University
of Technology) have several campuses across
the province.
Game-changing development
A potentially game-changing development in the
local economy is the building of a R200-million
helium extraction plant to exploit a natural gas and
helium field near the towns of Virginia, Welkom and
Theunissen. With proven reserves of 25-billion cubic
feet, the rights to the field are owned by Renergen
and they will be worked by Afrox, a subsidiary of the
Linde Group of Germany.
Another emerging sector is solar energy. The
Xhariep, Lejweleputswa and Mangaung regions
have among the best direct solar radiation kWh/m²
in the country. Rezoning for solar farms has already
taken place in Theunissen, Bloemfontein, Fauresmith
and Hoopstad.
The Free State shares borders with six other
provinces, in addition to the Mountain Kingdom of
Lesotho. A summer-rainfall region with a mean annual
rainfall of 532mm, the Free State’s climate, soil
types and topography vary greatly within the province,
with plains in the west and mountains in the
east. The western and southern areas are semi-desert,
with some Karoo vegetation occurring in the south.
The Free State produces significant proportions
of South Africa’s wheat (30%), sunflowers (45%) and
maize (45%). As such, it is ranked third in contribution
to national GDP in agriculture.
Municipalities in Free State
The Free State has one metropolitan municipality
(Mangaung), four district municipalities and 19 local
municipalities.
Mangaung Metropolitan Municipality
Mangaung Metropolitan Municipality is a Category
A municipality which governs Bloemfontein,
Botshabelo and Thaba Nchu. The sixth-largest city
in the country, the Mangaung municipal area covers
more than 6 263km² and has a population of about
850 000 people. The languages spoken in the area
are mainly Sesotho, Afrikaans, English and Setswana.
Bloemfontein, which is responsible for about
25% of provincial GDP, is at the centre of a development
node known as the N8 Corridor which is
intended to boost development along the road
from Lesotho to Kimberley and Upington in the
North West province. Several projects are under
way in and around the provincial capital, including
an Airport Node (logistics, supply chain, flats,
shopping malls), Naval Hill (projected new hotel
in the nature reserve), expansion of Hamilton
Business Park.
The city’s Fresh Produce Market is an important
cog in the distribution of agricultural produce in the
region while it is connected to all other centres by
good rail and road links. There is a marshalling yard,
a petroleum depot and two airports (one military).
The national Supreme Court of Appeal is located in
Bloemfontein and the National Museum has superb
rock art exhibits.
9
FREE STATE BUSINESS 2018

SPECIAL FEATURE
Xhariep District Municipality
Towns: Trompsberg, Koffiefontein, Zastron,
Philipollis, Edenburg, Fauresmith, Smithfield,
Wepener
The southernmost region of the Free State is a largely
dry area with open grasslands predominating, although
it is also home to the Gariep Dam, South
Africa’s largest dam. Crops are produced in the
northern parts of the district whereas sheep farming
predominates in the south. Trompsberg has the
second-biggest sheep-shearing barn in the country.
Diamonds, gravel and clay are mined at
Koffiefontein. Jagersfontein is one of the first places
where diamonds were found, and it has its own version
of the Big Hole to prove it. The town of Bethulie
is a good stopping-over place for tourists wanting
to experience the water sports available on the
Gariep Dam.
The dam is also the site of small hydro-power
and aquaculture projects which are intended to
create employment and tackle food security. The
nearby Tussen die Riviere Nature Reserve and the
Mynhardt Game Reserve have a variety of wildlife in
spectacular settings. Jacobsdal’s Landzicht winery
has proved itself as a worthy producer of wine. San
rock paintings and Anglo-Boer War sites are plentiful.
Fauresmith hosts an annual horse endurance
race and Smithfield is the venue for a “Chill” festival
every winter, the “Bibber Fees”. The steel
bridge over the Caledon River at Wepener is a
national monument.
Lejweleputswa District Municipality
Towns: Welkom, Virginia, Boshof, Christiana,
Bultfontein, Bothaville
Mining is the most important economic activity in
this area, also known as the Free State Goldfields,
but it is also the most important maize-growing
area in South Africa. A large natural gas field has
been discovered on what used to be gold turf.
Bothaville is the self-proclaimed Mielie Capital of
South Africa but it is a name that is apt. The town
hosts the annual NAMPO maize festival and the
headquarters of Grain SA.
Mining town Welkom is the major urban centre
in the district. The town of Virginia is the site of a
jewellery school and it is intended that this will
form the nucleus of a jewellery beneficiation hub
and an IT hub.
The area has tourist assets such as a holiday
resort on the Allemanskraal Dam, the Goldfields
Wine Cellar in Theunissen and the Willem Pretorius
Game Reserve but there is potential for growth in
the heritage sector.
Fezile Dabi District Municipality
Towns: Sasolburg, Parys, Kroonstad, Frankfort,
Heilbron, Viljoenskroon
The chemical complex at Sasolburg is the economic
driver in the district, which shares a border with
Gauteng province along the Vaal River. The town of
Heilbron is another important industrial centre and
Frankfort does important agricultural processing
FREE STATE BUSINESS 2018
10

Ulco
Northern
Cape
De Aar
Smithfield
Bethulie
Rouxville
Zastron
SPECIAL FEATURE
Balfour
Mpumalanga
Potchefstroom
Vereeniging
Ottosdal Klerksdorp
Parys Lethabo
Sasolburg
N12
Vredefort
Standerton
Wolmaransstad
Viljoenskroon
Villiers
R30
N1
Heilbron
North West
Frankfort
Volksrust
Bothaville
R34
R57
Bloemhof
Vrede
Kroonstad
N3
Hoopstad
Odendaalsrus
Reitz
Newcastle
Christiana Wesselsbron
R76
Warden
Welkom
R26
Virginia
Ventersburg
Warrenton
R70
Theunissen
Harrismith
Bultfontein
N5 Bethlehem
Senekal
Van Reenen
Clarens
Phuthaditjhaba
Dealesville
Winburg
Fouriesburg Golden Gate
Ladysmith
R64
National Park R74
Marquard
Ficksburg
N3
Colenso
N8
Clocolan
Winteron
BLOEMFONTEIN
Jacobsdal
Petrusburg
Thaba Nchu
Estcourt
N12
Ladybrand
Botshabelo
R26
Hobhouse
Koffiefontein
N1
MASERU
Edenburg Dewetsdorp
LESOTHO KwaZulu-
Wepener
Underberg Natal
N6
Trompsburg
FREE STATE PROVINCE
N
KIMBERLEY
Eastern Cape
Gauteng
Motorway
Main Road
Railway
work. Kroonstad is the district’s second-largest
town and has a number of engineering works and
a railway junction. A new kraft paper factory has
been planned for Frankfort.
A good proportion of South Africa’s grain crop
is sourced from this district and when the vast
fields of sunflowers and cosmos flowers are in
bloom, a marvellous vista is created. The Vaal
River presents opportunities for yachting, rafting
and resort-based enterprises. Parys is a charming
town and Vredefort is home to a World Heritage
Site – the Vredefort Dome where a meteor crashed
to earth.
Fezile Dabi District Municipality is the biggest
contributor towards the provincial GDP, contributing
approximately 35%. The Fezile Dabi area is
mostly dominated by the industrial power of Sasol,
with the manufacturing of refined petroleum, coke
and chemical products adding largely to its GDP.
The establishment of ChemCity, a wholly
owned subsidiary of Sasol, has also added a business
incubator that allows SMMEs to feed off and
diversify from the opportunities that prevail due
to the energy consortium operating in the area.
Thabo Mofutsanyana District Municipality
Towns: Phuthaditjhaba, Bethlehem, Tweespruit,
Ladybrand, Clarens, Harrismith, Vrede,
Ficksburg
Tourism and fruit farming are the two principal
economic activities of this area which is characterised
by beautiful landscapes: the Maluti and the
Drakensberg mountain ranges, wetlands in the
north, well-watered river valleys and the plains of
the north and west. The most famous asset is the
Golden Gate National Park.
Industrial activity is undertaken at Harrismith and
Phuthaditjhaba, where the Free State Development
Corporation is promoting investment. The Maluti-a-
Phofung Special Economic Zone (SEZ) at Harrismith
is a multi-modal transport and logistics hub.
The commercial centre of the district is
Bethlehem while Clarens and Ficksburg have
become famous for their artists and cherries respectively.
Marquard produces 90% of South
Africa’s cherries. The north of the district has many
sunflower seed farms.
The Basuto cultural village in Qwa Qwa offers
beautifully made crafts, and rock paintings.
11
FREE STATE BUSINESS 2018

The N8 Corridor
Linking communities and creating economic opportunities.
The Free State capital city of Bloemfontein is well
known for its central location. Three major national
highways pass through the city: the N1
is South Africa’s main north-south connection,
the N6 links Bloemfontein with a coastal industrial
development zone in East London and the N8 connects
the provincial capital with Lesotho’s capital,
Maseru, in the east and the Northern Cape city of
Kimberley to the west. While the first two roads carry
significant amounts of cargo and are well-utilised,
the N8 still has untapped potential.
The N8 Corridor is the focus of a range of initiatives
which aim to improve connections, stimulate
economic activity and improve the delivery of services
and housing to Free State citizens, particularly
to those who live in Botshabelo and Thaba Nchu.
A plan for the coordinated development of
the N8 Corridor has been approved by a range of
bodies and is being funded by the Development
Bank of Southern Africa (DBSA) and the Mangaung
Metropolitan Municipality.
To understand the scope of the plans, one has
only to list the other interested parties in the project:
South African National Roads Agency (SANRAL),
Airports Company South Africa (ACSA), Interstate
Buslines (IBL), Transnet, Mangaung Chamber
of Commerce and Industry, Motheo District
Municipality, Free State Provincial Government, private
developers and financial bodies.
The N8 Corridor concept covers Bloemfontein,
Botshabelo and Thaba Nchu. Within this are
several projects including the ICC Precinct (hotel
and convention centre in Bloemfontein),
Bio-Medical Park, tourism infrastructure for the
development of Naval Hill and the planned
Airport Node. The illustration is a concept design
for an office park at the Airport Node by the
Paragon Group.
Infrastructure
Existing infrastructure is being used as the hub for
additional developments and schemes. Bram Fischer
International Airport, the province’s major airport, is
managed by Airports Company South Africa (Acsa).
Facilities at Bloemfontein Airport are shared with Air
Force Base (AFB) Bloemspruit, which serves the central
region, and the SA Red Cross Air Mercy Service.
A project covering 2 000ha and expected to cost
in the region of R100-billion over several phases has
been initiated at the airport. A development plan
for the area has designated five precincts: Terminal,
Boulevard, General Aviation, Airport Industria
and Grasslands. The Road Lodge Hotel was built
within this conceptual plan. A range of land uses
beyond the hotel are envisaged, including warehousing,
hospital care, commercial, service stations,
FREE STATE BUSINESS 2018
12

SPECIAL FEATURE
conferencing, retail, motor vehicle dealerships, car
rental, logistics hub and a showground.
New infrastructure in the form of the new Naval
Hill Reservoir has been established to service the
additional businesses and houses which the N8
Corridor development will create. The reservoir will
ultimately have a capacity of 70ml.
Power utility Eskom is to be approached with
a view to rerouting the power lines along the N8
which currently inhibit development in the area
around the Corridor.
Botshabelo has a manufacturing sector which
employs more than 10 000 people in textiles, plastics
and other sectors. However, the bulk of the
employed population of Botshabelo commute to
Bloemfontein every day, using buses or taxis. A
number of factory buildings and parcels of publicly
owned land in Botshabelo and along the N8 are
either not used or under-utilised.
Close to 30% of the residents of the greater
Mangaung metropole live in Botshabelo. Many
residents are employed in the informal economy in
the area. This is also true of Thaba Nchu, which is a
short distance further down the N8 towards Lesotho.
CBD development
An important part of the Mangaung Metropolitan
Municipality’s most recent Integrated Development
Plan (IDP) relates to reviving or stimulating the central
business districts (CBDs) of the three towns in
the metro.
Thab Nchu has a small central business district
but mostly comprises 42 rural villages which fall
under the Chieftancy of the Baralong boo Seleka
of Thaba Nchu.
The opening of the Botshabelo Mall in November
2016 was a big event for the residents of the area
and a significant step towards boosting the town’s
CBD. The 21 000m² facility is a joint venture between
Khora Investments and STANLIB Direct Property
Investments. Nine hundred jobs were created in
the building phase of the R350-million project, with
a further 1 100 jobs in the operational phase.
Large retailers, furniture stores and banks have
established a presence at the mall, which is on the
corner of N8 and the Main Road. Being able to shop
at the mall means far less travelling on the busy road
to Bloemfontein.
Efficiency, inclusion and sustainability are the
three watchwords for planners in relation to all
plans with regard to the CBDs of Botshabelo and
Thaba Nchu.
The IDP includes a suggestion that the use of
bridges be explored as a way of linking spaces within
the city of Bloemfontein.
Housing
The 2016/17 IDP brings together the concept of the
N8 Corridor with a number of important principles
related to providing better housing:
• Travel distances within the city need to be shorter.
Therefore, the city should embark on denser
mixed developments.
• In rural areas, settlements patterns must balance
the social, cultural and agricultural needs
of families.
• Improved access to work and social amenities,
including sports and recreational facilities.
• De-racialising the built environment through the
accelerated release of land and the development
of the seven land parcels in Cecilia, Brandkop,
Pellisier, Vista Park and Hillside View, to bring
integration and create economic opportunities.
13 FREE STATE BUSINESS 2018

FOCUS
Free State Development Corporation
investment opportunities
The Free State Development Corporation is driving a number of exciting investment
opportunities in the Free State province.
SCIENCE PARK
To develop a world-class science park through the
provision of a purpose-built facility designed to
provide fully serviced office and laboratory space
for conducting cutting-edge research in a range
of fields including agri-technology, applications
development, computer programming, datamining
and management, digital content production,
design, food research, game development,
healthcare technologies, medical innovation,
product design and development, law and intellectual
property, linked to the University of the
Free State and Central University of Technology.
Concept
To develop world-class infrastructure to support
incubation of a network for companies to
do research, product development, technology
testing, software applications development,
programming and housing of innovative startup
enterprises. The Science Park will house the
following:
• Innovation Centre
• Bio Centre
• IT Centre
• Catalyst
• Enterprise House
These will create a platform for a joint research
and research collaboration between universities
and biotechnology companies, to migrate both
the University of the Free State (UFS) and Central
University of Technology (CUT) registered research
patents into new business opportunities.
Facilities and services
• All-inclusive, flexible, short-term rental agreements
at competitive rates
• 24/7 access
• High-quality broadband access (up to 1GB)
with ICT Active accreditation
• Free onsite parking
• A dedicated Customer Service team
• Free PR service for residents
• Direct links to the University of the Free State
– offering the advantage of technology and
knowledge transfer, and access to equipment
and library facilities.
Conference and meeting room facilities
• Wide range of conference and meeting rooms
at discounted rates with video conferencing
• Networking zone with free wi-fi
• Shared laboratory facilities
• Virtual Offices, flexible co-working and hot desk
facilities.
Research and development
• Links to the University of the Free State and
Central University of Technology Research
Teams and partnership funded by the dti
(Department of Trade & Industry) and the
Department of Science an Technology and
its agencies
• N8 Research Partnership, Universities of Leeds,
Sheffield and York
• On-site management and dedicated team.
FREE STATE BUSINESS 2018
14

Project location
Bloemfontein, Mangaung Metro, N8 Corridor
Required Investment
ZAR 400m
To discuss these opportunities, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800
Email: frank@fdc.co.za | Email: invest@fdc.co.za
Prof Ryk Lues, Director
Tel: +27 51 507 3145 | Email: rlues@cut.ac.za
Ms ZP Sintiya, Administrative Assistant
Tel: +27 51 507 3121 | Email: zsintiya@cut.ac.za
15
FREE STATE BUSINESS 2018

FOCUS
BETHLEHEM SAND MINING PROJECT
MEDICAL WASTE TREATMENT
There is an opportunity to establish a sand mining
business 6km outside Bethlehem – called Bethlehem
Water and Sand (Pty) Ltd – to supply Bethle
hem and the surrounding towns with build ing,
plaster and brick-making sand.
Milestones
• Business plan completed.
• Geological report available.
• EIA completed and ROD is available.
• Mining permit obtained.
Project Requirements
The project sponsor requires capital injection
and participation by BEE partners with experience
in the sand mining value chain, or sand
distribution.
Location
Dihlabeng Local Municipality in Bethlehem.
Investment Required
The project requires funding to the tune of
R120-million. The project has the potential to
create 120 jobs when fully operational.
A technology partner and investor is required to
partner with a local investor to set up a medical
waste treatment facility.
Concept
To design a modern medical and solid waste
treatment facility. The company implements
Electro-Thermal Deactivation processes
to dispose of healthcare risk waste.
This is a non-burn technology that has
zero emissions. Pathogens are treated with
50 000V within the ETD (Microwave) and this
renders the waste clean and harmless.
Location
Virginia in Matjhabeng.
Investment Required
Estimated project cost R30-million.
To discuss opportunities on this page, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade &
Investment
Tel: +27 51 4000 800 | Email: frank@fdc.co.za
Email: invest@fdc.co.za
DPE & PVC PIPES MANUFACTURING
A private-sector investor is required to establish
and operate a plastic extrusion facility at Parys in
the Ngwathe Local Municipality.
Concept
Plastics extrusion is a high-volume manufacturing
process in which raw plastic is melted and
formed into a continuous profile. Extrusion produces
items such as pipe/tubing, weather stripping,
fencing, deck railings, window frames, plastic
films and sheeting, thermoplastic coatings and
wire insulation.
Project Requirements
A technology partner is required for individual
investors that have expressed interest.
Investment Required
Investment required is estimated at R10-million.
Manufactured products and manufacturing
processes must be SABS-certified.
FREE STATE BUSINESS 2018
16

Reasons to invest in the Free State
FOCUS
The Free State offers an abundance of opportunities for local and international investors
and traders, through the Free State Development Corporation.
About the Free State
Situated in the heart of South Africa, the Free State
is the country’s third-largest province and borders
Lesotho as well as six of the eight other provinces,
including the country’s economic centre, Gauteng.
The Free State is an ideal trading partner both
within South Africa, and with Africa and other international
markets. The province has excellent infrastructure
and transport links, and provides easy
access to the main ports of Durban, East London
and Port Elizabeth.
Factors that favour investment in the Free State
Factors positioning the province as a favourable
business and investment destination:
• Centrally located with easy access to markets
within South Africa and Africa.
• Availability of a large and affordable labour
pool.
• Excellent infrastructure (roads,rail, airports, offices,
education, banking and medical facilities).
• Competitive land and building costs.
• Low factory rentals.
• Abundance of natural resources.
• Recreational and lifestyle facilities.
• Most developed telecommunications network
in Africa.
• Open to business, trade and foreign investment.
• Availability of required skills pool.
• Attractive investment regime.
17
FREE STATE BUSINESS 2018

FOCUS
Maluti-A-Phofung SEZ
investment opportunities
Maluti-A-Phofung Special Economi c Zone
(SEZ) has been established in terms of
the Special Economic Zones Act, Act No.
16 of 2014. The programme is intended
to deepen industrial development and improve
manufacturing competitiveness in the Maluti-A-
Phofung Municipality.
Located in Harrismith and Tshiame in the Eastern
Free State, MAP SEZ is strategically located on the N3
national road, halfway between Johannesburg and
Durban. MAP SEZ offers in total up to 1 000 hectares
of land for industrial development. Since Durban
port is the busiest in the southern hemisphere, this
therefore means that N3 carries majority of the traffic
to different locations in South Africa and the neighbouring
countries such as Lesotho and Swaziland.
MAP SEZ constitutes the Free State leg of the
massive Durban-Free State-Gauteng logistics and
industrial corridor that is intended to strengthen
the logistics and transport corridor between South
Africa’s main industrial hubs to:
• Improve access to Durban’s export/import facilities.
• Integrate Free State Industrial Strategy activities
into the corridor.
• Build a new port in Durban.
• Expand an aerotropolis around OR Tambo
International Airport.
SEZ Project Pipeline
There are already 18 manufacturing companies
(ranging from pharmaceutical to automobile companies)
that have signed letters of intent to locate
in the MAP SEZ. Some of the sectors targeted for
establishment within the MAP SEZ are as follows:
• Pharmaceuticals.
• Medical devices.
• Logistics and distribution.
• Agro-processing.
• Food processing.
• Trade facilitation.
• Rail-based container terminal
(Transnet Freight Rail).
• Automotive cross docking facilities.
• Logistics and supply chain management.
• Information & Communi cation Technology.
• Logistics.
Benefits
Benefits that will be derived from locating within
MAP SEZ includes:
• 15% Corporate Tax, national is 28%.
• Building Allowance.
• Employment Incentive.
• Customs Controlled Area.
• 12i Tax Allowance.
MAP SEZ Milestones
• MAP SEZ was launched by President Zuma on 25
April 2016 and is open for business.
• Maluti-A-Phofung SEZ operator permit granted by
Minister of Trade & Industry after cabinet approval.
• Perimeter fencing has been completed.
• Bulk infrastructure roll-out is in process.
• Marketing and promotion to build a robust IDZ
project pipeline is in process.
To discuss these opportunities, contact
Sipho MG Tshabalala, Marketing & Communications Manager
Tel: +27 51 4000 804 | Cell: +27 78 076 8676 | Email: Sipho@mapsez.co.za | Website: www.mapsez.co.za
FREE STATE BUSINESS 2018
18

FOCUS
FOOD PROCESSING PARK
The building of a world-class, integrated food
processing park to include food processing,
warehousing, cold storage and manufacturing
facilities to enhance production efficiencies.
Location
MAP SEZ Food Processing precinct.
Milestones
• Concept developed.
• Business plan completed.
• Marketing the opportunity to prospective
investors.
Investment Required
Investment estimated at R750-million.
MEDICAL EQUIPMENT AND DEVICES
MANUFACTURING
The FDC has signed an investment agreement
with two leading Chinese companies (in the
medical devices and electronic equipment
value chain) to establish a medical devices and
medical apparatus and instrumentation manufacturing
plant in the newly designated Maluti-
A-Phofung SEZ.
Location
Maluti-A- Phofung SEZ.
Milestones
• Investment agreement signed.
• South African subsidiary of the Chinese
company (Medipro) has been registered.
• Negotiations to fast-track investment are in
process.
• The company has CE certification.
Investment Required
Investment estimated at R600-million.
FRANKFORT PAPER MILLS
The establishment of a Kraft paper factory that
will predominantly use waste container board
paper and virgin pulp to produce Kraft liner, linerboard,
fluting and semi-extensible sack Kraft.
Production capacity is about 180 000 tonnes
per annum.
Concept
The mill will use both virgin (20%) and recycled
pulp (80%) as raw material in its production
process with the aim of capturing small
and medium corrugators. Pulp to be used is
unbleached and manufactured by suppliers
using the Kraft process.
The Kraft process produces strong unbleached
papers that can be used for bags and boxes.
Location
Frankfort, Free State.
Milestones
• Feasibility phase.
• Project designs completed.
Project Requirements
• A technology partner and investor that is a
player in the wood and paper value chain is
required to partner with the IDC and local
paper convertors to establish and operate
Frankfort Paper Mill SA.
• Project partners will be responsible for bulk
take-off.
Investment Required
Investment estimated at R1.4-billion.
To discuss this opportunity, contact
Lizeka Matshekga, Head: Forestry & Wood
Products Business Unit, Industrial
Development Corporation
Tel: +27 11 269 3779,
Email: lizekam@idc.co.za
Email: invest@fdc.co.za
To discuss the above opportunities, contact
Sipho MG Tshabalala,
Marketing & Communications Manager
Tel: +27 51 4000 804 | Cell: +27 78 076 8676
Email: Sipho@mapsez.co.za
19
FREE STATE BUSINESS 2018

FOCUS
Why invest in solar generation
plants in South Africa
• South Africa’s solar irradiation levels are among
the best in the world (>2 000kWh/m²).
• Transition to a cleaner energy mix (low carbon
path).
• Strong local content from government (glass,
mirrors).
• Strong, established local construction
companies.
• Experience in building power stations and mines.
• Current steel and pipes production meeting CSP
requirements.
• A target to generate 45% of all new electricity
from renewable sources by 2030.
• The ongoing success of the renewables procurement
programme and the growing interest of international
developers and funders are helping South
Africa to improve its ranking from nowhere to top
10 investment destinations in the world (Renewable
Energy Country Attractiveness Index 2014).
• South Africa is the region’s clear leader for clean
energy development with record investments of
over US$10-billion in 2012 and 2013.
Drivers for PV and CSP investments
• Environmental issues such as pollution and
exploitation of natural resources.
• Climate change due to CO2 emissions from
fossil fuels.
• Energy security through diversification of supply.
• Sustainable development.
FOREIGN INVESTMENTS IN THE FREE STATE
POWER PLANT
LOCATION
DATE
OF
COMMISSION
INSTALLED/
PLANNED
CAPACITY
STATUS OPERATOR INVESTMENT VALUE
COUNTRY
OF ORIGIN
LETSATSI PV
PROJECT
PULIDA SOLAR
PARK
BOSHOFF SOLAR
PARK
XHARIEP SOLAR
HUB
EVEREST
SOLAR PLANT
Bloemfontein,
Tokologo LM
Jacobsdal,
Letsemeng LM
May 2014 64MW Operational Solar Reserve
Aug 2016
82MW
Under
construction
Enel
Green Power
3.8-billion, 1-billion cost
of financing
2.4-billion
Tokologo LM Nov 2014 64MW Operational Sun Edison 1.8-billion USA
Kopanong,
Bethulie LM
Matjhabeng LM
Planned
Planned
600MW
Planned
75MW
Planned
Concept
develop ment
and project
design
New
development
Korean
Solar Power
Consortium
FRV Energy
South Africa
16-billion
Project occupies 180ha
of the Farm Beyers 186
(393ha)
USA
Italy
Korea
TBC
GROOTKOP
SOLAR
FACILITY
Matjhabeng LM
Planned
75MW
Planned
New
development
FRV Energy
South Africa
Project will occupy 180ha
of the Farm
Beyers 186 (393ha)
TBC
FREE STATE BUSINESS 2018
20

FOCUS
SOLAR GENERATION PARKS
The project aim is to recruit a private investor to
set up a solar park in the Xhariep, Lejweleputswa
and Mangaung regions, as these offer some of the
best direct solar radiation (kWh/m²).
Process
Investors may participate in both off-grid and
on-grid supply solutions. Off-grid is where the
solar generation plant is directly supplying an
independent user or seller, for example a mine
or an industrial estate. On-grid is where investors
participate in South Africa’s successful
Renewable Energy Independent Power Producer
Procurement (REIPPP) Programme managed by
the Department of Energy (DOE) and finally supply
the grid.
Projects Location
Xhariep District, Mangaung Metro as well as
Lejwele putswa.
Conversion Technologies
Both photovoltaic modules and concentrated
solar power (CSP) plant conversion technologies
can be implemented.
SOLAR WATER HEATERS
A private investor is required to set up a solar
water heaters manufacturing plant in Botshabelo
Industrial Area. The manufacturing process may
involve the following:
• Fabrication of panel storage tanks.
• Assembly of tank, panel coil and other
components.
• Inspection and commissioning.
• Required raw materials for the manufacturing
of solar water heaters are copper aluminium MS
sheet, pipe, glass fibre, GI sheets, thermostat
and insulation material.
Why Solar Water Heaters
• Eskom electricity demand management
programme.
• Strong local content on SWH procurement by
DOE and Eskom.
• Financial and technology capabilities to manufacture
and supply locally produced systems.
• Construction Sector Education Training
Authority (CETA) and Energy Sector Education
Training Authority offers accredited Level 4
plumbing qualification.
• Availability of plumbing skills currently serv ing
the mining, gas and petroleum industries.
Location
Botshabelo within the N8 Corridor.
Investment Required
To be determined at feasibility.
To discuss these opportunities, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800 | Cell: +27 71 674 5730
Email: frank@fdc.co.za or invest@fdc.co.za
21
FREE STATE BUSINESS 2018

FOCUS
GREEN ENERGY IT
Green Energy is a South African company that
assembles solar home lighting systems. The
idea behind this project is to contribute towards
harnessing solar energy to generate power.
Location
The company intend to locate its solar home
lighting manufacturing plant in Maluti-A-Phofung.
Milestones
The FDC financed seed funding to the tune of
R210 000 for the following:
• Product development to redesign its products
so that they can meet international standards
for export market.
• IP registration.
• Business case development to solicit financial
and possibly technology partner for future
growth.
• A team of three are driving business
development.
Investment Required
The project requires an experienced technology
partner that is a player within the solar and
LED lights value chain and an investor that will
guarantee take-off of products manufactured.
To discuss this opportunity, contact
Frank Tlhomelang, Manager: Research &
Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800
Email: frank@fdc.co.za
POULTRY PRODUCTION AND
PROCESSING
Concept
The intention is build 10 x 40 000 broiler houses,
10 x 220 000 broiler hatcheries and 8 x 20 000 layer
houses.
Location
These facilities could be located in the following
municipalities: Lejweleputswa, Fezile Dabi, Thabo
Mofutsanyana.
Investment Required
R6.5-billion is required to increase the size of the
poultry production market in the Free State.
PRODUCTION OF SUNFLOWER,
SOYA, BEANS AND LUCERNE
Concept
The FDC is promoting an opportunity to increase
the production of sunflower, soya beans, dry
beans and lucerne. If investment is forthcoming
448 981ha could be put into production by 2030.
Location
Various agricultural areas in the Free State.
Investment Required
An estimated R585.8-million is needed.
To discuss these opportunities, contact
Dr Tankiso Masiteng Tel: +27 82 568 2447
Email: masiteng@agric.fs.gov.za
FREE STATE BUSINESS 2018
22

FOCUS
ROOFSHEET MANUFACTURING
Concept
The FDC is keen to facilitate the production of
roofsheets made from corrugated iron, IRB and
chromadek.
Location
Matjhabeng Local Municipality.
Investment Required
R25-million in capital expenditure is needed.
APPLE PRODUCTION
Concept
Investment is required to add 2 000ha of apple
orchards on agricultural land in the Eastern
Free State.
Location
Maluti Fruit, a pack house in Bethlehem, Free State,
has launched Remmoho, a BEE project that will focus
on increasing apple production in the province.
One of the advantages of growing apples in the
Free State is that the fruit from the region is the first
to be harvested during the Southern Hemisphere
growing season – a full two to three weeks before
fruit from the more traditional growing areas in the
Western Cape.
A business plan has been completed and would be
available to prospective investors.
To discuss these opportunities, contact
Frank Tlhomelang, Tel: +27 51 4000 800 | Cell: +27 71 674 5730
Email: frank@fdc.co.za or invest@fdc.co.za
MINING TOURISM
Concept
Convert an old, unused mining shaft into a tourist
attraction that will enable people to experience
life below the surface.
Location
Virginia (Matjhabeng).
Investment Required
R300-million.
JEWELLERY MANUFACTURING
Concept
An opportunity exists to set up a jewellery design
and manufacturing operation adjacent to an
existing jewellery school.
Location
Virginia (Matjhabeng).
Investment Required
R20-million.
To discuss these opportunities, contact
Mpolokeng Mokalobe, Tel: +27 51 400 9585
Email: mokalobem@detea.fs.gov.za
23
FREE STATE BUSINESS 2018

FOCUS
CLOTHING MANUFACTURE
Concept
There are plans to establish a Cut, Make and Trim
(CMT) factory in order to manufacture clothing
in the Free State.
Location
Maluti-A-Phofung Municipality (QwaQwa).
Investment Required
Finance is sought for purchase of machinery
and working capital for 12 months.
WASTE RECYCLING
Concept
The establishment of a plant for waste recycling
and conversion into usable products as well as the
generation of energy from waste.
Location
Mangaung Metropolitan Municipality
(Bloemfontein, Botshabelo and Thaba Nchu).
Investment Required
R65-million.
A business plan has been completed and would
be available to prospective investors.
LED LIGHT MANUFACTURE
TOOLING AND MACHINERY
MANUFACTURE
Concept
Manufacturing of metal, steel and plastic products
for automotive, rail, aviation, mining and other
similar industries.
Location
Botshabelo.
Investment Required
R15.1-million in capital expenditure is needed.
Concept
The manufacture and retail of light-emitting
diodes (LEDs).
Location
Anywhere within the Free State.
Investment Required
R15-million.
TEXTILE MANUFACTURING
Concept
To establish a textile manufacturing facility producing
spun yarn and woven cloth for supply to
Cut, Make and Trim (CMT) facilities in the Free State
and the rest of South Africa.
Location
Maluti-A-Phofung Municipality (QwaQwa).
Investment Required
R76-million is required.
To discuss these opportunities, contact
Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment
Tel: +27 51 4000 800 | Cell: +27 71 674 5730
Email: frank@fdc.co.za or invest@fdc.co.za
FREE STATE BUSINESS 2018
24

Free State trade opportunities
FOCUS
The Free State province offers a wide range of trading opportunities
The Free State’s main exports are:
• Mineral products.
• Plastics and articles thereof.
• Chemical products.
• Vehicle and transport equipment.
• Agricultural equipment.
• Semi-precious stones, metals, imitation jewellery.
• Base metals and articles thereof.
• Textile and textile articles.
• Vegetable and fruit products.
• Wood and articles of wood.
• Raw hides and skins, leather and articles thereof.
• Medical or surgical instruments and apparatus.
• Live animals.
Additional breakdown of products:
• Minerals (gold, coal, diamonds, clay, limestone,
salt, gypsum, granite, sand stone aggregates).
• Agriculture (maize, wheat, sorghum, potatoes,
sunflower, red meat, vegetables, dry beans, fruit,
peanuts, wool, poultry, dairy, cherries).
• Floriculture (cut flowers).
• Chemicals (fuels, waxes, synthetic fuel, liquid
carbons).
• Agricultural machinery and equipment.
• Vehicles (trailers).
• Arts and crafts.
THE FREE STATE DEVELOPMENT CORPORATION OFFICE DETAILS
HEAD OFFICE
FDC House, 33 Kellner Street, cnr of Markgraaff
Street, Westdene, Bloemfontein 9300
Tel: +27 51 4000 800 | Fax: +27 51 447 0929
MOTHEO DISTRICT OFFICES
Botshabelo Office
35 Orange Str, Industrial, Botshabelo 9781
Tel: +27 51 534 1101/02/03 | Fax: +27 51 534 1104
Thabo-Nchu/Motheo Office
102 Manyane High Way, Selosesha, Thaba Nchu 7983
Tel: +27 51 873 3901 2476 | Fax: +27 51 873 3402
XHARIEP DISTRICT OFFICE
Xhariep Office
Cnr Van Riebeeck and Voortrekker, Khoisan
Building, Trompsburg 9913 Tel: +27 51 713
0342/3 | Fax: +27 51 713 0342
THABO MOFUTSANYANA DISTRICT OFFICES
Thabo Mofutsanyana Office
357K Clubview, Phuthditjhaba
Tel: +27 58 714 0060/64
Fax: +27 58 714 0071
Industriqwa/Harrismith Office
Cnr Amanda and de Lange, Tshiame A,
Harrismith 9880
Tel: +27 58 635 1112
Fax: +27 58 973 2603
FEZILE DABI DISTRICT OFFICES
Fezile Dabi Office
31 NJ Van der Merwe Crescent, Sasolburg 1942
Tel: +27 16 976 8944/5
Fax: +27 16 973 2603
For additional information on trading opportunities please contact
the Free State Development Corporation on +27 51 4000 800.
www.fdc.co.za | wecare@fdc.co.za | invest@fdc.co.za
25
FREE STATE BUSINESS 2018

Establishing a business in SA
South Africa has eased the barriers to doing business in South Africa for
locals as well as international companies and individuals.
South Africa has a sophisticated legal, regulatory
and banking system. Setting up
a business in South Africa is a relatively
straight-forward process with assistance
being offered by organisations such as the Department
of Trade and Industry and provincial investment
agencies like the Free State Development
Corporation (FDC).
South African law regulates the establishment
and conduct of businesses throughout the country.
Tax, investment incentives, regulations governing
imports, exports and visas are uniform throughout
the country. The particular environment varies from
province to province with regard to the availability
of human and natural resources, the infrastructure
and support services, business opportunities and
the quality of life.
In this respect, the FDC can offer specific advice
about the business environment in the province.
Business is regulated by the Companies Act and
the Close Corporation Act, which cover accounting
and reporting requirements. Under new legislation,
no new Close Corporations can be created but CCs
can convert to companies.
Registration of company
The company must be registered with the
Comp anies and Intellectual Properties Commission,
(CPIC) in Pretoria within 21 days of the company
being started. There are a range of administrative
procedures that need to be fulfilled.
Bank account
A business bank account must be opened in the
company’s name with a bank in South Africa.
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable
on money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the
Department of Labour regarding mandatory contributions
to the Unemployment Insurance Fund (UIF).
Register with Compensation Commissioner for
Compensation Fund: Files with the Compensation
Fund (in the Department of Labour) for accident
insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh foodstuffs
or health matters.
Other procedures
Checking exchange control procedures (note
that non-residents are generally not subject to
exchange controls except for certain categories of
investment)
• Obtaining approval for building plans
• Applying for industry and export incentives
FREE STATE BUSINESS 2018
26

SPECIAL FEATURE
• Applying for import permits and verifying import
duties payable
• Registering as an exporter if relevant and
applying for an export permit
Business entities
There are a variety of forms which businesses can
take, including private and public companies,
personal liability companies , non-profit companies,
state-owned companies and even branches of
foreign companies (or external companies).
Branches of foreign companies fall under section
23 of the Companies Act of 2008 and are required
to register as “external companies” with the CIPC.
An external company is not required to appoint a
local board of directors but must appoint a person
resident in South Africa who is authorised to accept
services of process and any notices served on the
company. It must also appoint a registered local auditor
and establish a registered office in South Africa.
Patents, trademarks and copyrights
Trademarks (including service marks) are valid for an
initial period of 10 years and are renewable indefinitely
for further 10-year periods. Patents are granted
for 20 years, normally without an option to renew.
The holder of a patent or trademark must pay an annual
fee in order to preserve its validity. Patents and
trademarks may be licensed but where this involves
the payment of royalties to non-resident licensors,
prior approval of the licensing agreement must be
obtained from the dti. South Africa is a signatory to
the Berne Copyright Convention.
Permits for foreign nationals
Work permits
In considering whether or not to grant a work
permit, the Department of Home Affairs will first
evaluate the validity of the offer of employment
by conducting a number of checks to confirm the
following:
• Has the Department of Labour been contacted?
• Has the position been widely advertised?
• Is the prospective employer able to prove that he
or she has tried to find a suitably qualified local
employee prior to hiring a foreigner?
• Is the prospective employee appropriately qualified
and do they have the relevant experience?
Business permits
Foreign nationals who wish to establish their own
business or a partnership in South Africa must, apart
from having sufficient funds to support themselves
and their family, be able to invest at least R2.5-million
in the business.
The funds must originate overseas, be transferable
to South Africa and belong to the applicant
(ie emanate from the applicant’s own bank
account). The business must also create jobs for
South African citizens. After six months to a year,
proof will have to be submitted that the business
is employing South African citizens or permanent
residents, excluding family members of
the employer.
Applications for work permits for self-employment
can only be lodged at the South African
Consulate or Embassy in the applicant’s country of
origin. The processing fee is US$186. The applicant
would also have to lodge a repatriation guarantee
with the consulate/embassy equivalent to the price
of a one-way flight from South Africa back to his or
her country of origin.
This guarantee is refundable once the applicant
has either left South Africa permanently or obtained
permanent residence. Any application for an extension
of a business permit may be lodged locally. The
processing fee per passport holder is R425. Some
countries also need to pay R108 per return visa.
A list of countries to which this applies is
available from the Department of Home Affairs.
The FDC assists investors in applying for the
relevant work permits to conduct their business.
What would the FDC do for you?
The FDC will help new businesses by assisting in
project appraisal and packaging, putting investors
in touch with relevant agencies and government
departments, alerting investors to
investment incentives and setting up joint ventures
where required.
A full description of the services offered by the
FDC is reflected elsewhere in this publication.
27 FREE STATE BUSINESS 2018

SPECIAL FEATURE
South African
investment incentives
The South African government, particularly the Department of Trade and Industry,
has a range of incentives available to investors, existing companies,
entrepreneurs and co-operatives across many sectors.
South Africa wishes to diversify its economy
and incentives are an important part of
the strategy to attract investors to the
country. The Department of Trade and
Industry (the dti) is the lead agency in the incentives
programme, which aims to encourage local and
foreign investment into targeted economic sectors,
but the Industrial Development Corporation
(IDC) is the most influential funder of projects across
South Africa.
There a variety of incentives available and these
incentives can broadly be categorised according to
the stage of project development:
• Conceptualisation of the project – including feasibility
studies and research and development
(grants for R&D and feasibility studies, THRIP,
Stp, etc)
• Capital expenditure – involving the creation
or expansion of the productive capacity
of businesses (MCEP, EIP, CIP, FIG, etc)
• Competitiveness enhancement – involving the
introduction of efficiencies and whetting the
competitive edge of established companies and
commercial or industrial sectors (BBSDP, EMIA,
CTCIP, etc)
• Some of the incentives are sector-specific for
FREE STATE BUSINESS 2018
28

SPECIAL FEATURE
example the Aquaculture Development and
Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
Manufacturing
Key components of the incentive programme are
the Manufacturing Incentive Programme (MIP) and
the Manufacturing Competitiveness Enhancement
Programme (MCEP). The initial MCEP, launched in
2012, was so successful that it was oversubscribed
with almost 890 businesses receiving funding. A
second phase of the programme was scheduled
for launch in 2016. The grants are not handouts
as the funding covers a maximum of 50% of the
cost of the investment, with the remainder to be
sourced elsewhere.
The Enterprise Investment Programme (EIP)
makes targeted grants to stimulate and promote
investment, BEE and employment creation in the
manufacturing and tourism sectors. Aimed at smaller
companies the maximum grant is R30-million.
Specific tax deductions are permissible for larger
companies investing in the manufacturing sector
under Section 12i of the Income Tax Act.
Other incentives
Other incentives available to investors and existing
businesses in more than one sector include the:
• Technology and Human Resources for Industry
Programme (THRIP)
• Support Programme for Industrial Innovation
(SPII)
• Black Business Supplier Development Programme
(BBSDP), which is a cost-sharing grant offered to
black-owned small enterprises
• Critical Infrastructure Programme (CIP) that covers
between 10% and 30% of the total development
costs of qualifying infrastructure
• Co-operative Incentive Scheme, which is a 90:10
matching cash grant for registered primary
co-operatives
• Sector Specific Assistance Scheme, which is a
reimbursable 80:20 cost-sharing grant that can
be applied for by export councils, joint action
groups and industry associations.
Incentives for SMMEs
A lot of emphasis is placed on the potential role of
small, medium and micro enterprises in job creation
and a number of incentives are designed to promote
the growth of these businesses. These include:
• Small Medium Enterprise Development
Programme (SMEDP)
• Isivande Women’s Fund
• Seda Technology Programme (Stp).
Seda is the Small Enterprise Development
Agency, an agency of the Department of Small
Business Development that exists to promote
SMMEs.
Trade-related incentives
The Export Marketing and Investment Assistance
(EMIA) Scheme includes support for local businesses
that wish to market their businesses internationally
to potential importers and investors. The scheme
offers financial assistance to South Africans travelling
or exhibiting abroad as well as for inbound potential
buyers of South African goods.
ONLINE RESOURCES
Official South African government incentive
schemes: www.investmentincentives.co.za
Department of Trade and Industry:
www.thedti.gov.za
Industrial Development Corporation:
www.idc.co.za
Free State Development Corporation (FDC):
www.fdc.co.za
29 FREE STATE BUSINESS 2018

ADVERTORIAL
Making it easier to do business with Nedbank
Whole-view Business Banking
Kevin de Beer, Nedbank Provincial General Manager for Retail and
Business Banking for Free State and Northern Cape, explains how
Nedbank can help business owners in these regions.
on what’s most important to you – running your
business,’ says de Beer.
In line with our new brand proposition encouraging
clients to see money differently, our Free State and
Northern Cape agriteams are committed to providing
key support, as well as advisory and business services
to all roleplayers involved in the agrispace in both
provinces. We will share our financial expertise
and play a role in advancing profitable, sustainable
practices throughout the agricultural production and
consumption value chain.
There is good news for Free State and
Northern Cape business owners and
entrepreneurs seeking a unique banking
experience. Nedbank Business Banking
has business managers, located across
both provinces, specialising in commercial
industries as well as the agricultural sector.
De Beer says his team is ready to assist clients with
professional advice, industry-specific solutions
and a comprehensive range of financial products
and services.
‘At Nedbank Business Banking we believe that you
need a financial partner who not only understands
your circumstances and aspirations, but also provides
you with relevant solutions and a banking experience
that is hassle-free. This allows you to concentrate
We recognise that farmers today face many
challenges, and to remain competitive, they
continually have to improve and adopt best practices
and new technologies.
‘We encourage you to see money differently with
Whole-view Business Banking, says de Beer.
‘We are also involved in a number of initiatives with
the public sector, ensuring that such partnerships
support provincial government goals in respect of job
creation and growing the economy,’ de Beer
concludes.
If you are interested in taking your business to the next
level, please call Kevin de Beer on
+27 (0)51 400 5813, send an email to
kevindeb@nedbank.co.za or
visit www.nedbank.co.za.

ADVERTORIAL
Nedbank Business Bundle is a game changer
with savings and personalised services for
small enterprises
The new Business Bundle from Nedbank is a game changer for small
enterprises in the Free State and Northern Cape, offering the best value
for money when compared to rival offerings.
With the country’s challenging economic
environment, the Business Bundle not only
offers you personalised banking services,
but also critical tools to save – with up to
40% savings on monthly banking fees –
contributing directly to the bottomline at a
time when every cent counts.
In line with Nedbank’s new brand proposition to see
money differently, the Business Bundle resonates with
the bank’s commitment to do good by promoting
small enterprises.
‘As a bank for small businesses we are committed
to partnering with entrepreneurs to help grow their
businesses. As such, Nedbank is always looking at
ways in which we can help unlock the value of our
clients’ businesses. We support their business growth
journeys by providing practical tools to help them
run their businesses,’ says Kevin de Beer, Nedbank
Provincial General Manager, Retail and Business
Banking for Free State and Northern Cape.
‘Small businesses are the lifeblood of our economy.
Nedbank has, over the years, instituted various
interventions aimed at giving support to the smallbusiness
sector.’
To see how Nedbank can help your small business reach
its goals, call Kevin de Beer on +27 (0)51 400 5813,
send an email to kevindeb@nedbank.co.za or
visit www.nedbank.co.za.
Trust us to protect
your business
against everyday
risk
Shareen Gobichund,
Regional Manager of
Broker Channels for
Free State and Northern
Cape, says Nedbank
Insurance is not a onesize-fits-all
business.
Nedbank Insurance has evolved into a business
that provides integrated insurance to individual
and business clients. Our offering comprises
comprehensive short-term and life insurance
solutions, as well as investments.
Nedbank Insurance provides a comprehensive
offering of short-term products on behalf of
blue-chip insurers. If you are interested in
expert advice on the type of cover that is
right for your business needs, look no further.
Nedbank has a team of specialists ready to provide
you with the information you need to make an
informed decision. For more information call
Shareen Gobichund on +27 (0)31 364 3308, send
an email to shareeng@nedbankinsurance.co.za
or visit www.nedbank.co.za.
Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial
Authorised services financial services and registered and registered credit credit provider provider (NCRCP16).

OLD MUTUAL ENABLING
POSITIVE FUTURES
IN THE FREE STATE
Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling positive
futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life
assurance, asset management, banking, healthcare and general insurance.
To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership boards
in each province to serve as links between the province and the business. These Provincial Management Boards, or PMBs,
are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of
this province and its people.
MEET SILAS SEBILOANE
Chairperson of the Free State Provincial Management Board
“What brings all of us together as a business is our customers, and they are the centre of
everything that we do and they inform the decisions that we make. Our primary objective in
the Free State and across the group is to collaborate and share our resources, expertise and
wisdom always with our customers’ interests at heart at all times. This approach will always will enable us
to deliver a holistic financial solution ecosystem of financial support and guidance to each and every one
of our customers, and enable us to do great things and enable positive futures.”
We undertake to:
• Build a workable internal relationship across all business units.
• Strengthen our external relationships with key stakeholders by introducing each other in the market.
• Integrate market activities and resources in order to defend our market share and close for competitors.
• Joint stakeholder functions.
• Collaborative community and CSI projects that will represent one Old Mutual in the community.
GET IN TOUCH: FreeStatePMB@oldmutual.com
ombds 4.17.10479.02
INVESTMENTS I SAVINGS I PROTECTION
Old Mutual is a Licensed Financial Services Provider

OUR BEST ADVICE TO YOU IS:
ADVICE MATTERS
As custodians of the savings and
investments of millions of South
Africans, we know that ADVICE
MATTERS when making financial
decisions.
How to choose the right financial adviser
A good financial adviser is a professional who
considers all your financial needs and goals, and has
the knowledge, experience and support to give you
Advice That Matters.
1. Ask to see the adviser’s training credentials and FAIS
accreditation.
2. Choose a financial adviser who represents a
respected financial institution.
3. Look for a financial adviser who has access to a
range of specialist support services.
NEED HELP WITH RETIREMENT AND RISK
COVER OPTIONS FOR YOUR EMPLOYEES?
Old Mutual Corporate provides
industry-leading retirement fund
solutions, pre and post retirement
investments, group death, disability,
critical illness and funeral cover
as well as financial education and
consulting services to a broad range
of public and private businesses and
institutions, from small businesses to
large corporates.
This can also be accessed via Old Mutual SuperFund,
which provides a comprehensive employee benefit
solution that is flexible enough to meet the needs of all
types of businesses and their employees.
NEED A ONE-STOP-SHOP INTEGRATED
FINANCIAL SERVICE?
The Old Mutual Mass Foundation Cluster (MFC) has an
integrated approach to financial services and offers
customers solutions to meet their needs. This spans a
transactional account called the Old Mutual Money
Account, savings products, life and disability cover, as
well as funeral cover, debt management solutions and
short-term insurance. Our aim is to
help our customers manage their
finances and to plan and provide
a better future for themselves and
their loved ones.
NEED DIRECT CAR & HOME INSURANCE?
Old Mutual iWYZE offers affordable and reliable
insurance cover to protect everything you’ve worked for.
The wide range includes car insurance, home
insurance as well as value-added products
such as iWYZE Scratch
& Dent and iWYZE
Tyre & Rim Cover.
iWYZE, the wise
insurance choice.
NEED FUNERAL COVER?
With Old Mutual’s range of
Funeral Plans (Care, Standard and
Comprehensive+) customers can cover
themselves, their spouse/partner,
children, parents, parents-in-law and
extended family members. We also
have a plan for single parents to cover themselves and
their dependent children without having to pay for a
spouse they do not have.
You can choose the amount of cover you need, who
you’d like to cover and whether you’d like to add
additional benefits. You can get funeral cover for up to
R70 000.
NEED HELP WITH SAVING FOR BOTH
LONG AND SHORT TERM?
To make it easy for customers to
save from as little as R170 a month,
Old Mutual offers the innovative
2-IN-ONE SAVINGS PLANS.
This product with its two pockets,
allows customers to save for their long-term goals,
like their children’s tertiary education, while they have
access to their funds in emergencies.

NEED HELP WITH HOLISTIC FINANCIAL
PLANNING AND SAVING?
Old Mutual Personal Finance specialises in providing
holistic financial planning - Advice That Matters. We
offer a wide range of wealth creation and protection
products. For example:
The Old Mutual Invest Tax-Free Savings Plan, which
offers a low, entry level premium and refunds you 50%
of admin charges when you reach your maximum
premium limit in a year.
NEED LIFE AND DISABILITY
COVER?
Old Mutual Personal Finance marketleading
risk protection range offers
the most comprehensive illness range
with clear claim definitions, including
GREENLIGHT.
NEED TO PROTECT YOUR BUSINESS?
Old Mutual Insure are experts in
agriculture, engineering and marine
insurance. We offer a range of insurance
solutions to protect your business against
everything from fire and theft to business interruption
and legal liability costs.
NEED DEBT CONSOLIDATION AND
TRANSACTIONAL BANKING?
Through Old Mutual Finance you can gain access to:
• My Money Plan, which enables
you to consolidate your debt, and
choose from a range of personal
loans at a fixed interest rate.
• Money Account, which links a
transactional (SWIPE) account and an investment
(SAVE) account so you automatically invest a
set amount into a unit trust every time you make
a purchase with your card. *(In association with
Bidvest Bank Ltd)
NEED HELP WITH INVESTING?
Old Mutual Wealth is a fully integrated, advice-led
wealth management business. We have a personalised
and integrated approach to grow and preserve your
wealth over time. Our specialist capabilities include
Private Client Securities, Old Mutual Multi-Managers,
Fiduciary Services and Offshore Investing.
We partner with leading financial
planners to provide you with a
tailored lifetime wealth plan to help
you achieve the best outcome in
line with your objectives, goals and
aspirations.
NEED A FINANCIAL PARTNER THAT
MAKES A POSITIVE IMPACT ON SOCIETY?
Old Mutual is deeply committed to playing a significant
role in building a strong and financially inclusive South
Africa.
As a responsible business committed to caring for our
communities, the Old Mutual Foundation
addresses socio-economic challenges
through investing in:
• Small business development and
entrepreneurship
• Youth unemployment through skills training
• Strategic education initiatives
• Caring for vulnerable communities
In 2016 alone the Old Mutual Foundation invested
R25 686 172 in various community projects across our
nation (actual grant funding payments made during
2016).
In the Free State the Old Mutual Foundation invested
a total of R486 756 across its various community
empowering portfolios in the region.
Our staff are the hearts and hands of Old Mutual
in the communities we operate in, and we support
our staff volunteers through various programmes.
In the Free State, 14 organisations have received
a total R279 850 as a result of staff volunteering
efforts.
INVESTMENTS I SAVINGS I PROTECTION
ombds 7.2017 L10479.8
Old Mutual is a Licensed Financial Services Provider

OLD MUTUAL FOUNDATION CASE STUDIES
IN THE FREE STATE
The Old Mutual Education Flagship Project (OMEFP) is a national education
initiative started in 2013 to invest R350 million over seven years into underresourced
schools in key provinces such as Ntemoseng High School in
Botshabelo, Free State. The overarching goal of the project is to increase the
number of bachelor passes in maths and science so that more students can
access university education. In partnership with the University of the Free
State, this project was able to increase the scope of mentoring programmes
for school teachers in key subjects. It is interventions such these which have
contributed to Ntemoseng High School becoming one of the top-performing
schools out of 14 schools in Botshabelo.
The MASISIZANE FUND focuses on enterprise
development and job creation to help alleviate poverty
and improve food security in South Africa. This is
achieved through encouraging entrepreneurship and
capacity development and financing of micro, small
and medium enterprises (SMMEs). Preference is given
to SMMEs with 51% plus ownership by women, youth
or people with disabilities.
Masisizane Fund disbursed R147m worth of funds
in 2016 through soft loans in the three high-impact
sectors and facilitated the creation of 862 jobs against
a target of 625 jobs.
In the Free State Masisizane disbursed funds of
R3 649 172 to two clients which created 50 new jobs.
MASISIZANE CASE STUDY IN THE FREE
STATE (CENTRAL REGION: FREE STATE/
GAUTENG/NORTH WEST PROVINCE)
Pick n Pay Spaza Township Economy
Revitalisation Programme
The programme was initiated by the Gauteng
Department of Economic Development (GDED)
following a township revitalisation roadshow that
included a visit by the provincial government and its
partners to 65 townships across Gauteng in 2014.
The five new stores co-funded by Masisizane Fund
(R6 118 733), Old Mutual Foundation (R2 000 000),
and others are expected to create or retain a total of
75 jobs. Once phase one is fully implemented and
proof of concept has been achieved, Pick n Pay is
planning a national rollout. The next phase will target
additional stores in Gauteng and Western Cape.
Masisizane Fund intends to further participate in the
rollout, attracting other partners.
WANT TO HELP BUILD THE PLATFORM FOR
FINANCIAL INCLUSION?
Financial education is the gateway to financial
inclusion. The Old Mutual Financial Wellbeing
programmes promote financial literacy and awareness
across market segments in line with the Financial Sector
Charter. We offer highly effective financial education
and support programmes to help South Africans take
control of their finances.
Between 2007 and end of 2016 more than 589 808
people were reached through face-to-face workshops
held for communities as well as employees in the public
and private sector.
In 2016 more than 88 000 individuals participated in
our On the Money workshops nationally, with 24 674
participating in our Fin360 programmes.
In the Free State 8 969 individuals were trained in
our Old Mutual On the Money financial education
programmes.
For more information, contact Silas Sebiloane
at FreeStatePMB@oldmutual.com

KEY SECTORS
Overview of the main economic
sectors in the Free State
Agriculture 38
Mining 40
Manufacturing 49
Oil and gas 50
Tourism 54
Education and training 56
Banking 57
Development finance and
SMME support 58

OVERVIEW
Agriculture
Record maize harvests are helping the national economy.
SECTOR INSIGHT
Value addition and agriprocessing
are sector priorities.
• The drought cut potato
yields by two thirds.
Agriculture makes up 4% of the Free State’s gross domestic
product but the province’s efficient farming operations
contributed a total of 10% of South Africa’s agricultural
output.
There was great relief in late 2016 and early 2017 when the long
national drought broke in the central and northern areas of the
country. Potato yields in the eastern Free State were reduced below
10 tons per hectare during the worst period, against previous
years where yields of better than 30 tons (and sometimes 45 tons)
were achieved.
So good was the recovery–particularly in the Free State’s great
strength, grains–that agriculture helped push the national economy
into positive growth in the middle of 2017. A record maize crop of
16.4-million tons was good news for exporters and consumers. A
25kg bag of maize meal was 8% cheaper in June 2017 than it was a
year before (Business Times).
The Free State has 32 000km² of cultivated land and a further
87 000km² of grazing land and natural veld. A summer-rainfall region
with a mean annual rainfall of 532mm, the Free State’s climate, soil
types and topography vary greatly within the province, with plains
in the west and mountains in the
east. The western and southern
areas are semi-desert, with some
Karoo vegetation occurring in
the south.
The province supplies significant
proportions of the nation’s
sorghum (53%), sunflowers
(45%), potatoes (33%), groundnuts
(32%), dry beans (26%), wool
(24%) and almost all of its cherries
(90%). Red meat and dairy
are other important products.
Game hunting is a growing sector,
and several large Free State
farms have been converted from
stock to game farms. Crop production
represents about two
thirds of the province’s gross
agricultural income. The main
crops are maize and wheat.
Sunflowers, sunflower seeds, sorghum
and soy beans are other
major crops. The Mangaung
Fresh Produce Market plays a
vital role in the sector, catering
as it does to householders, bulk
buyers, informal traders, agents
and farmers.
FREE STATE BUSINESS 2018
38

The NAMPO Harvest Day held
in Bothaville every year is one of
the biggest agricultural festivals
and exhibitions of its kind in the
world. The annual Farmer Patent
Competition is sponsored by
Grain SA and Omnia, the fertiliser
company.
Bothaville is located in
the Lejweleputswa District
Municipality on the western
boundary of the Free State with
North West. So far west is Bothaville
that Senwes counts it as part of its
North West region. The giant agricultural
company, with its headquarters
in the North West city of
Klerksdorp, has three separate regions
for the rest of the Free State.
The company deals with no less
than 20% of the country’s oilseeds
and grain through its 68 silos.
VKB Agriculture, another of
the province’s large agricultural
companies, has invested heavily
in the Grain Field Chicken abattoir
in Reitz (together with the broiler
houses in Tweeling). The Industrial
Development Corporation (IDC),
which has a 23% stake in the project,
intends to help develop the
Free State as the poultry hub of
South Africa.
VKB’s headquarters are in Reitz
in the north-eastern part of the
province and the group has nine
brands in sectors such as fuel,
grains, animal feed and foods. The
financial division held information
sessions with emerging famers in
2016 to explain how farmers can
benefit from the partnership between
VKB and the Land Bank. VKB
has development programmes
with 51 emerging commercial
farmers in the province and data
on 140 developing farmers.
Agri-processing
OVERVIEW
The Free State Department of Agriculture and Rural Development (DARD)
has highlighted the fact that only 11% of the province’s primary agricultural
production is processed within the province’s boundaries.
In 2017 DARD hosted a summit on “Repositioning the Free State
Province for Agricultural Value Adding and Processing Towards 2030”.
Investors are being encouraged to look at baby vegetables, wholesale
meat production (including poultry) and leather manufacturing.
Key to commercialising these agricultural options is access to finance
and the IDC has been very active in the province in this sphere. There are
hopes that the official launch of the Maluti-A-Phofung Special Economic
Zone will also boost the agri-processing and agri-logistics sectors.
Five agri-parks are planned in each of the Free State’s district municipalities.
Within these parks, support for rural smallholders will be available
in terms of equipment hire from a central source, storage facilities,
packaging of produce and getting products to market. The agri-parks
are intended to provide a network for farmers and manufacturers, and
training will be available.
Clover has three factories in the Free State: Bethlehem (milk powder,
whey mixtures and creamers); Frankfort (butter, the largest such factory
in the country, where ghee and roller dried milk powder is also made)
and in Heilbron (whey, buttermilk, condensed milk and packaging).
The Homsek Group is an integrated dairy-products producer with one
of the biggest Ayreshire herds in the world. Its factories in Bloemfontein
supply Woolworths. The head office of Country Bird Holdings is in
Bloemfontein: its brands are Supreme Chicken, Nutri Feeds and Ross
(breeding). Country Bird Logistics controls 45 chilled and frozen vans.
CONTACT INFO
Department of Agriculture and Rural Development
Physical address: Gielie Joubert Street, Glen, Bloemfontein 9360
Tel: 051 861 8510 | Fax: 051 861 8578 / 086 723 8206
Website: www.ard.fs.gov.za
ONLINE RESOURCES
Agricultural Research Council: www.arc.agri.za
Free State Department of Agriculture and Rural Development:
www.ard.fs.gov.za
Grain SA: www.grainsa.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
39 FREE STATE BUSINESS 2018

OVERVIEW
Mining
Diamonds are sparkling in the Free State.
SECTOR INSIGHT
Quality diamonds have been
extracted at Koffiefontein
since 1870.
• Seriti Resources has
bought the New Vaal
Colliery from Anglo
American.
Diamonds, coal and gold are the three main minerals found
in the Free State but the decline of gold mining is a cause
for concern. Several summits and a Mining Indaba have
focussed on what kind of economic activity can replace
gold mining.
The mining sector makes up 11% of provincial GDP and continues
to play a vital role in the economy. A minerals beneficiation strategy
has been developed because this sector is seen as a key area for
potential growth.
Coal is mostly found in the northern part of the Free State and the
gold fields, which form part of the Witwatersrand Basin, stretch from
north of Welkom to south of Virginia.
Petra Diamonds’ Koffiefontein mine is on the western edge of the
province, about 80km from Kimberley. The mine is regarded as a lowgrade
deposit, but the diamonds produced are of high value. White
stones of excellent quality are produced and fancy pink diamonds are
sometimes found. The first mine was found in the area in 1870 and
Petra plans to continue mining until 2025 but there are indications that
mining could go on even beyond that date.
Petra will increase production
at Koffiefontein from 50 500 carats
per annum (ctpa) in 2017 to about
85 000 ctpa in 2019. The mine increased
revenue to $25.7-million
in 2016, an increase of 44%. The
price achieved per carat rose by
10% from 2016, reaching $506
in 2017. Petra has seven mines
in South Africa. The Star mine, in
which Petra (75%) is in partnership
with Sedibeng Mining, is the
other Free State asset.
The Lace Mine near Kroonstad
went into business rescue in
November 2016 after heavy rains
affected operations. In May 2017
owner DiamondCorp put its
listed holding company into administration.
The primary lender
was the Industrial Development
Corporation (IDC).
De Beers’ Voorspoed diamond
mine will have a production capacity
of 800 000 carats per
year when it is fully operational.
During the building phase, about
FREE STATE BUSINESS 2018
40

OVERVIEW
R70-million was generated in the
region, and the company intends
spending R400-million per year
on developing its capacity.
In 2016 De Beers, the South
African government and the
South African diamond-cutting
industry launched a project to
encourage diamond beneficiators.
Among the first companies
involved are Thoko’s Diamonds,
African Diamonds, Nungu
Diamonds and Kwame Diamonds.
Coal
The Sigma-Mooiplas mine is run
by Sasol Mining and supplies
Infrachem in Sasolburg with twomillion
tons of coal per year.
Seriti Resources has purchased
the New Vaal Colliery from Anglo
American. Together with two
other mines in Mpumalanga
Province, Seriti paid R2.3-billion.
New Vaal is in the middle of a triangle
of three towns that play an
important part in industrial production:
Vereeniging, Sasolburg
and Vanderbijlpark. The mine employs
more than 900 people and
supplies about 15-million metric
tons of coal to Eskom’s Lethabo
power station annually.
in the Free State but most of its gold assets are in Gauteng. Reports
in August 2017 suggested that the company was looking to retrench
more than 7 000 workers across several mines.
AngloGold Ashanti’s Vaal River Complex operations are mostly near
the town of Orkney in the North West Province. However, the Great
Noligwa, Kopanang and Moab Khotsong mines are all across the Vaal
River in the Free State. The complex includes one uranium plant, four gold
plants and one sulphuric acid plant. In 2017 two of the company’s gold
mines, including Kopanang in the Free State, were shut down because
getting to the ore body was becoming too expensive and too dangerous.
Village Main Reef runs the Tau Lekoa mine in the same vicinity.
Taung Gold, a Chinese company, runs the Jeanette mine near Welkom.
Most of Harmony’s operations, including a tailings treatment, are in
the Free State. The mines are Tshipong and Phakisa (near Odendaalsrus),
Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near
Theunissen) and Bambanani at Welkom. Phakisa has mineral reserves
of just over five-million ounces of gold and Harmony has invested
heavily in the project.
Gold mines in the Free State also supply a substantial portion of
the total silver produced in the country, and large concentrations of
uranium occurring in the gold-bearing conglomerates of the goldfields
are extracted as a by-product.
Other minerals
By-products of gold operations (uranium, silver, platinum-group metals
and sulphuric acid) and bentonite are also found in the province.
Among the companies running large quarries in the Free State are
Lafarge, Raumix and Corobrik. Sand, stone aggregate, gypsum and
granite are found at various sites throughout the province. Limestone
and calcrete occur in the western Free State where salt is also panned.
Production is concentrated around the Florisbad salt pan, north-west
of Bloemfontein. The Ocean Bentonite Mine near Koppies in the northwest
Free State is one of only two in the country.
Gold
Sibanye Gold came into existence
as a result of the unbundling of
Gold Fields but it has now been
rebranded as Sibanye Stillwater
because of the purchase of a platinum
and palladium mine in the
US of that name. The company is
responsible for the Beatrix mine
ONLINE RESOURCES
Chamber of Mines of South Africa: www. chamberofmines.org.za
Geological Society of South Africa: www.gssa.org.za
Mining Qualifications Authority: www.mqa.org.za
National Department of Mineral Resources: www.dmr.gov.za
South African Mining Development Association:
www.samda.co.za
Southern African Institute of Mining and Metallurgy:
www.saimm.co.za
41 FREE STATE BUSINESS 2018

INTERVIEW
Making a lasting impact
Malcom Hendrickse, General Manager of De Beers’ Voorspoed
Mine, notes the importance of a highly trained and competent
workforce.
Malcom Hendrickse
What is the history of Voorspoed Mine?
The history of Voorspoed Mine dates back to 1906. In 1912, the mine
shut down, mainly as a result of the kimberlite ore that was very hard
to mine with the technology of the day. It lay dormant until 2005
when the De Beers board approved an investment of R1.3-billion.
Mining officially began in December 2007, and our very first carat was
produced in June 2008. There was always something special about
the gem quality produced at Voorspoed, and even today, the mine is
renowned for its special stones.
How important is employee training at Voorspoed?
Our people are core to our business, and their safety and personal
development is of paramount importance to us. Our priority is that
every employee goes home safely after every shift, and that’s why we
are proud of our record of no Lost Time Injuries since 1 October 2014. In
addition to safety, we strive to create a competent and highly trained
workforce through our skills training programmes. We had a very young
workforce when we started operating, and we have done a lot in terms
of broadening their scope from a development perspective through
accredited, relevant and transportable qualifications.
BIOGRAPHY
Malcom Hendrickse attained
a BEng Chem degree at the
University of Stellenbosch and
worked for the Anglo American
Gold Division before returning
to De Beers. On secondment to
Debswana he held various positions
at plant manager level.
He has been Ore Processing
Manager (Venetia Mine), Operations
Manager (The Oaks Mine)
and SASSA Business Unit Manager
for De Beers Marine. After
a spell as General Manager of
Kimberley Mine, he took the
same post at Voorspoed Mine
in 2016.
Are there programmes to advance women in the workplace
at the mine?
The number of women at the helm of the load and haul operations
makes us particularly proud of the progress we have made in advancing
women at Voorspoed. The Mining Charter aims to promote women
in the industry, and there’s an active drive at De Beers to support this.
For us, it has not just been a numbers game; we are far exceeding
our targets.
What is the life of the mine?
Our mining right licence expires in 2023; however, based on our cost
operating model, the current life of the mine is 2020.
How has Voorspoed Mine contributed to community
development?
We are proud and passionate about our communities and we always
get involved in projects that make a significant and lasting impact. We
believe that the relationships we have forged with our communities
are contributing positively towards the socio-economic development
of the Free State.
FREE STATE BUSINESS 2018
42

FOCUS
Working together
to prosper
Senior Human Resources Manager Sihle Nkomo ready to
take his test.
Ethical business practice entails caring
for the environment and sustainable
community development. De Beers’
Voorspoed Mine is actively involved in a
wide range of community events, health
drives and educational initiatives. The
mine partners with NGOs, government
departments and charities to work with
communities in improving social conditions
and the lives of community members.
Voorspoed employee Maria Salani signs up for the HIV
awareness campaign.
A stage play to dramatise important points on Global
Safety Day.
Stakeholder engagement meeting at the Town Hall,
September 2017.
Ready for the lecture to begin at Career Youth Day.
Voorspoed Mine teamed up with the SA National Council for
the Blind to raise awareness about the challenges faced by
blind people.
43 FREE STATE BUSINESS 2018

FOCUS
Building a
lasting legacy
Mine community development.
Thumbs up for the new media centre: DBCM CEO Phillip Barton
and Education MEC Tate Makgoe with the Executive Mayors, school
principal, KST trustees and learners of Ntsoanatsatsi Primary.
The De Beers Voorspoed Mine is located within the Fezile Dabi
District Municipality in the northern part of the Free State province.
The nearest big town is Kroonstad.
The mine’s Social and Labour Plans (SLP) are founded on its geographic
location and on building relationships with surrounding
entities such as the local municipalities of Ngwathe and Moqhaka.
As Corporate Affairs Manager Andrew Moremi explains, “Before we
can embark on any mine community development process we have to
consult these two municipalities and consult the integrated development
plans (IDP).” Once the needs of the communities (including the
“labour sending areas”) are investigated, projects are then planned. The
key document for social investment is the SLP, a mandated requirement
for mines.
The latest SLP has been developed to guide social investment for
the five-year period from 2017 to 2021.
Education the cornerstone
A thorough needs analysis was undertaken which resulted in most of
the investment being in the field of education. This was true for the
previous SLP (2012-2016) and for the SLP that will last beyond the closure
of the mine. “The company has taken a deliberate decision,” says
Moremi, “that for empowerment to be really permanent and sustainable
you’ve got to base it on education because that cannot be taken away.
It is a means to an end and not an end in itself. We wanted to act based
on sustainable thinking.”
The Social and Labour Plan
which informed Voorspoed’s mine
community development for the
years 2012 to 2016 had four main
planks:
1. Educational support and upliftment:
Teacher development
and support for mathematics
and science. A financial assistance
programme assists with
tuition at tertiary institutions.
2. Rural schools development
programme: Infrastructure
such as classrooms, media
centres or libraries.
3. Social upliftment programme:
Poverty alleviation
programmes and support for
local NGOs such as creches,
health interventions, soup
kitchens and programmes for
the elderly.
4. Zimele Voorspoed Hub:
Enterprise and supplier development,
which is dealt with
separately in this publication.
In every case, the budget for the
support for these programmes
has been exceeded. An amount
in excess of R30-million was
spent against an original commitment
of R14.2-million. The reason
is simple, says Moremi, the need
was greater than was anticipated.
“When we got to the schools and
discovered the scope of work
required, we realised we needed
FREE STATE BUSINESS 2018
44

FOCUS
to go the extra mile to really
make those schools conducive
for a good learning environment.”
Into the future
The latest SLP builds on the previous
plans, with a continued
focus on education. The projected
budget for the 2015-2017
SLP is R25.3-million.
But the company looks beyond
compliance. Moremi says, “The
underlying message is that you
make sure that you address the
real need. We’re not promising to
overspend but we are driven more
by the need to address the social
impacts that are there.” Phuleng
Primary School is an example of
a legacy project we are targetting
in a labour sending area. Located
in the Maokeng township of
Kroonstad, the 120-year-old school
had classrooms that were found
by structural engineers to be too
poor to repair. Voorspoed Mine
has committed to building new
structures. Technical designs of
the school have been completed
and consultations are under way
with all the affected parties. The
building process is expected to
begin in early 2018.
On 16 November 2017
Voorspoed launched a new media
centre at Ntsoanatsatsi Primary
School which is part of the Free
State School Build Programme.
To assist school pupils,
Voorspoed sponsored a camp in
October. “There was a full week
of tuition support for about 373
students who were from the 12
schools in the district.” The results
for matric pupils in the Free State
have improved dramatically recently, but Moremi is careful to say that
Voorspoed was “part of the success” and acknowledges the role played
by partners such as the Kagiso Shanduka Trust and the Department
of Education. Under the Higher Education and Training Support programme,
17 students were funded in 2017 and students will again
receive support in 2018. This support is offered at the tertiary institution
of the student’s choice, whether a TVET college or a university. Support
for local municipalities for the provision of basic services is also part of
the legacy plan for Voorspoed. This relates to bulk water, electricity and
sanitation. Moremi reflects, “The intention is to give some support to the
two municipalities on basic infrastructure because we’ve realised with
the drought that struck the Free State and these two municipalities in
the past, there were challenges with regard to infrastructure. We want
to really work in partnership with the two municipalities and boost areas
where there’s a need for support, so that will also be carried through
for the next five years.”
Voorspoed Mine community projects scorecard
Project
Free State School Build Programme
Municipal basic services
in fra struc ture support
Mathematics and science teacher
development and Winter School
Parys Day Care Centre for the Aged
Healthcare infrastructure support
programme
Corporate social investment via local
area committees (various)
Higher education and training
sup port programme
Progress
• Ntsoanatsatsi media centre:
complete
• Mahlabatheng refurbishment:
complete
• Phuleng new classrooms: designs
complete
Scoping and costing to be initiated
Implemented, October 2017
Scoping, plans and costing to be initiated
Scoping and costing to be initiated
Projects selected and implementation in
progress
17 students identified, approved and paid
45 FREE STATE BUSINESS 2018

FOCUS
Preparing for success
in business
Enterprise and supplier development.
A
busy and complex mining operation such as Voorspoed needs
a range of suppliers. Whether it involves transporting workers to
and from work, catering or maintenance, there is a great deal of
work to be done that goes beyond the core business of diamond mining.
This presents an opportunity to support and develop the local
economy where the mine operates. But simply making a decision to
use local suppliers is not enough, because the skills needed to do the
work (or run a business efficiently and profitably) may not be there.
This is where an enterprise and supplier development programme
becomes a key element in the plan to support local entrepreneurs
and service providers.
Incubation
The Voorspoed Mine Enterprise and Supplier Development Manager
is Theodor Moeti. He explains the underlying concept as incubation.
“This is where we equip people with business management skills.”
The incubation programme aims to create independent businesses
that are able to go beyond a craftsman using their skills or someone
having a product to sell in a once-off transaction, to becoming thriving
businesses that will last and grow. “All applications were from Fezile Dabi
district and then a shortlist was compiled from those applicants. This
ensures that the successful candidate is also local.”
Other business ideas that have been raised in the Incubation Programme
include agri-processing, bio-diesel manufacturing, compost manufacturing,
landscaping and waste recycling. The key, as Moeti stresses, is
that they should be “stand-alone businesses”, independent of the mine
and mine contracts.
Supplier devopment programme
The company that supplies the specialist training for business management
skills is TrioPlus Development. Eight local companies have
been identified to learn more about business skills such as financial
management, pricing and costing, human resources, marketing, operational
management and entrepreneurial awareness. Also included
are the key skills of management
and leadership.
Moeti notes that the appointed
service provider is responsible for
mentorship. “We appointed TrioPlus
Development to ensure that the
businesses succeed, and they
become sustainable in the long run.
During this mentorship the service
provider addresses and develops and
trains the business owner.”
Important objectives are to make
sure that they render a quality service
to the mine, and that the business
remains sustainable even after the
life of mine.
Not all training is outsourced.
Says Moeti, “Say for instance if we see
that a contractor is taking too long
to replace a bolt, we then get one
of our engineers internally, a mine
employee, to come and train on site.
In this way we also give support.”
A shining star
In 2016 four people wanted to
apply for the plant cleaning and
maintenance contract but they
were not registered as a business.
The Voorspoed enterprise
and supplier development unit
assisted them with business registration
and with an application
to get the capital to buy equipment.
A significant discount was
negotiated on the machinery
FREE STATE BUSINESS 2018
46

FOCUS
and the loan was obtained from mining-related sectors. Local residents are being assisted to prepare
Zimele, the Anglo American for a broader range of employment and business opportunities.
funder of small enterprises.
With funding of R3.2-million,
Blue Motion General Construction
went from strength to strength to
the point that they now employ
26 people. The four-person team
(including one female and two
youths) are now in discussions
rspoed with Mine mentors about how they
might expand their range beyond
the mine.
rporate Affairs One way Publication of stimulating local
September 2017
supplier development is to ensure
that contracts are awarded to local
Members of Mmetlakgola Transport own a share in the company transporting
Voorspoed Mine workers.
suppliers wherever they can offer
the pre-requisite skills.
The transport sector is another
area of opportunity. For example,
Mmetlakgola Transport, a company
formed by 36 members of two
Kroonstad Taxi Associations, owns a
26% share in Multi Transport through
an empowerment deal facilitated
by De Beers for the transportation
of its employees. Anglo Zimele
has recently approved a loan of
R4.2-million to assist Mmetlakgola
Transport to purchase busses. A small
dividend has already been paid by TrioPlus Development provides SMME training.
the venture.
A contract was awarded in 2016
to Lekoa Technologies to run the
mine’s conveyor belt maintenance.
Voorspoed and Dunlop Industrial
have since conducted specialist
training sessions for employees of
Lekoa, where certificates of competence
have been awarded.
Looking ahead
Voorspoed is looking ahead
to the future. Incubators are
no longer focussing purely on De Beers Voorspoed Mine Incubation Support Programme was launched in
June 2017 in Kroonstad with 35 entrepreneurs with potential.
construction and catering and
47 FREE STATE BUSINESS 2018

FOCUS
Broadening horizons
Voorspoed Mine training focuses on widely applicable skill
sets to empower employees.
Work Experience trainees.
Mines, like many other businesses, have a natural life span, which
obviously has implications for the workforce and the wider
community. The important thing is that proper plans are put
in place so that challenges can be met.
Hans Kgasago is leading the Voorspoed mine closure project and in this
project works with the Voorspoed community and workforce as part of
preparing for the future. His focus is to manage the transition, specifically
focusing on environmental rehabilitation and integrated closure plans.
The current Voorspoed mine workforce is 407 employees with 59% of
these being from the local labour sending areas of Ngwathe and Moqhaka
municipalities. Thirty-one percent of the total workforce are women.
Voorspoed has consistently progressed towards the advancement of
women. Human Resources Business Partner, Lungile Zimu, explains that
a programme was started in 2014 to develop women to be ready for
promotion when opportunities become available. The aim was to “start
a programme to create a pipeline of opportunity,” and as a consequence,
women with potential working as operators have risen beyond foreman
roles to being shift-bosses.
But while the advancement of women has been a focus area, this has
not been at the exclusion of other initiatives to advance the workforce
generally, and to enable those with potential to advance. In keeping with
the strategy for securing the future, Voorspoed’s bursary programme is
expanding beyond the technical fields such as engineering or metallurgy.
“We want to focus on diversifying to create a positive legacy,” says Ms Zimu.
For a young person without experience, getting a job is a challenge.
Even applying for job can be a daunting prospect.
Understanding this, the department hosted a job entry and work
conduct workshop for the community, especially youth, in September 2017,
and a group of 17 Work Experience graduates are currently gaining work
experience at Voorspoed. In some cases, this is necessary for converting
their qualifications into a national diploma
Portable skills
Valuable skills are those that can
be applied to more than one
kind of industry, and “portable
skills” forms a key component of
Voorspoed’s planning for the future.
As Johnny Deyzel, HR Practitioner,
explains, “De Beers aims to facilitate
training skills to enable employees
to meaningfully compete for
opportunities post Voorspoed
Mine. All our skills programmes
and learnerships are geared so
that all the operators have a skill
that they can apply somewhere
else.” After a consultative process
involving organised labour, 10 of
the most transferrable skills were
prioritised for 2017, and Voorspoed
is ensuring that these skills are
receiving the appropriate focus in
its training programmes. In addition,
a programme to offer skills training
to community members has been
included in Voorspoed Mine’s most
recent Social and Labour Plan.
Informed by the Social Impact
Assessment conducted in 2016,
community development needs
were included in the SLP. Three areas
of training that were identified as
being particularly important were
plumbing, welding and water
treatment. In addition to offering
artisan training. Voorspoed Mine
has together with the Department
of Labour identified 15 local women
as deserving candidates and they
currently attend courses in these
key disciplines.
FREE STATE BUSINESS 2018
48

Manufacturing
Regional industrial policy aims to attract investors.
OVERVIEW
Manufacturing makes up 9% of Free State gross domestic
product, and this comprises 4% of South Africa’s total. The
Free State Regional Industrialisation Policy is being reviewed
to ensure integration of infrastructure, bulk service provision,
industrial sites and export and tax incentives to attract investment.
The Industrial Park in Botshabelo was relaunched in June 2016. This
R60-million project, part of a scheme to revitalise industrial parks in the
province, hosts 12 manufacturing companies. A Risk Sharing Funding and
Black Industrialist Scheme supports black industrialists.
Innovation in manufacturing is encouraged at the Product Development
Technology Station (PDTS) at the Central University of Technology (CUT).
The PDTS helps small businesses with the technology to design
new products, to test them or to improve existing products. The PDTS
is funded by the Technology Innovation Agency (TIA) and works in
partnership with another CUT unit, the Centre for Rapid Prototyping
and Manufacturing (CRPM).
Tax and other incentives are attracting manufacturers to the province’s
Special Economic Zone (SEZ), the 1 000ha Maluti-a-Phofung SEZ
at Harrismith on the N3. Companies from China, Bulgaria and India have
expressed interest. Among the projects in the pipeline are a factory
making transformers and one to make medical equipment.
The existing manufacturing sector has capacity in many sectors including
chemicals, agri-processing, textiles, carpets, engineering, packaging,
furniture and jewellery.
CONTACT INFO
Department of Economic, Small Business Development,
Tourism and Environmental Affairs
MEC: Dr Benny Malakoane
Postal address: Private Bag X20801, Bloemfontein 9300
Tel: 086 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
ONLINE RESOURCES
Free State Development Corporation: www.fdc.co.za
National Department of Trade and Industry: www.dti.gov.za
The Manufacturing Circle: www.manufacturingcircle.co.za
SECTOR INSIGHT
The Industrial Park in
Botshabelo has been
relaunched.
Harrismith is home to Nouwens
Carpets and Boxmore Plastics.
Boxmore Packaging’s new PET
beer bottles are the first PET bottles
specifically designed for beer
on the SA market. Empire Gloves
makes industrial gloves. Kroonstadbased
Octa Engineering makes
specialised rail carriages for the
mining sector. In Bloemfontein,
Transnet Engineering manufactures
new wagons for the Transnet
group, including iron ore and
cement wagons and fuel tankers.
The Industrial Development
Corporation is supporting the
clothing and textile industry with
loans and investments. The towns
of Botshabelo, QwaQwa and Thaba
Nchu have factories employing
several thousand people.
Nearly 20% of the Free State’s
manufacturing sites are devoted
to food and beverages. Landzicht
Wine Cellar, an operation that distributes
2.4-million litres of wine
every year from Jacobsdal, has a
new bottling plant.
Chemicals are a major sector
within the Free State manufacturing
basket. Sasol, Omnia and AECI
are the major companies.
49 FREE STATE BUSINESS 2018

OVERVIEW
Oil and gas
Free State gas fields could feed new power stations.
SECTOR INSIGHT
Sasol has converted its
Sasolburg operations from
coal to gas.
• Afrox is building a helium
plant.
A
new national focus on gas as a fuel to supply energy will
benefit the Free State. Sasol’s Sasolburg operations in the
northern part of the Free State are a key national asset in
the gas sector and there are early signs that there are large
gas fields in the province.
Natural gas is an inexpensive alternative to coal. Although the coal is
still powering most power stations in South Africa, it is a finite resource.
Petroleum Agency SA is the state agency responsible for promoting
and regulating exploration and production of oil and gas in the country.
Data suggests that the Free State has 23-billion cubic feet of gas
underground but only exploration can confirm this. If the gas is found
in large quantities, then up to four new power stations could be built
in the province.
Four applications for gas exploration in the Free State have recently
been made. The two from Rhino Oil and Gas Exploration South Africa
are part of a series of applications that the British Virgin Islands-based
company has made across three
provinces, “most of which”, according
to the Mail & Guardian,
have been granted. Rhino’s two
Free State applications cover
2.8-million hectares. The other
two are from Motuane Energy
in the Lejweleputswa District
Municipality (between Virginia and
Senekal) and Sungu Sungu Gas in
the Thabo Mofutsanyana District
Municipality (south of Memel).
Both applications have been opposed
by farmers: Sungu Sungu
withdrew its application before a
High Court hearing in November
2016.
Sasol is doing its own conversions
at its plants. The major economic
sectors using gas are the
metals sector and the chemical,
pulp and paper sector. Brick and
glass manufacturers are also big
consumers.
A major investment by Afrox
(a member of the Linde group)
will see a R200-million plant built
to extract helium near Virginia.
Renewable energy company
FREE STATE BUSINESS 2018
50

OVERVIEW
Renergen owns the right to the
natural gas and helium field
around Virginia (which has proven
reserves of 25-billion cubic feet).
Afrox will operate the plant and sell
the helium. Bus companies will buy
another product which the plant
will supply, compressed natural
gas. This is a cheaper alternative
than diesel.
Renergen’s natural gas subsidiary,
Tetra4, has secured a R218-
million loan from the Industrial
Development Corporation to
build a 107km pipeline network
from Virginia.
Afrox operates a CO2 liquefier
at Sasolburg which supplys the
bottling and hospitality markets,
where demand is strong.
Alternatives
An energy-from-methane power
plant now running at the Beatrix
gold mine neatly encapsulates
a shift from the old economy to
the new. Although the Sibanyeowned
gold mine still has significant
reserves of the mineral, it is
the shift to this new technology
that is sparking interest and showing
the way to creative energy
solutions.
Sibanye’s predecessor as owner
of the mine, Gold Fields, was the
first gold miner to sell certified
emissions reductions (carbon
trading units) and now the mine
is producing 2MW of power
for the mine’s operations. The
Beatrix Project was registered as a
methane-gas-capture project with
the United Nations Framework
Convention on Climate Change
(UNFCCC). Aggreko, a company
that specialises in providing temporary power, is running the operation in
partnership with Sibanye. During the 2010 FIFA World Cup in South Africa,
Aggreko supplied 253 generators to stadiums and broadcast centres.
Oil
The Natref fuel refinery is one of only four in South Africa, and the
country’s only inland refinery. It is strategically placed at Sasolburg near
to the industrial hub of southern Gauteng. The petrochemical complex
at Sasolburg is a major national asset. Among the many chemical, oil
and gas companies operating out of Sasolburg are several companies
within the Sasol group.
One of these, Sasol New Energy, has been working on moving the
group away from reliance on fossil fuels. The resulting savings will improve
Sasol’s profit margins, reduce carbon dioxide emissions and take pressure
off the national electricity grid.
The Natref refinery is a joint venture between Sasol Oil (63.6%) and
Total SA (36.3%). It is a technologically advanced facility, which refines
heavy crude oil into petrol, diesel, commercial propane, jet fuel and bitumen.
The capacity is 92 000 barrels per day. Between 60% and 70% of
petroleum is distributed by pipeline, 20% to 25% by road and 5% by rail.
The products sold by Sasol Oil include both lead replacement and
unleaded petrol, Sasol turbodiesel, a range of lubricants, industrial fuel
oils, illuminating paraffin and liquid petroleum gas, in addition to marine
diesel oil and bitumen.
CONTACT INFO
Department of Economic, Small Business Development,
Tourism and Environmental Affairs
Physical address: Bojanala Building, 34 Markgraaff Street,
Bloemfontein 9300
Tel: 086 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
ONLINE RESOURCES
Liquefied Petroleum Gas Association of Southern Africa:
www.lpgas.co.za
National Department of Energy: www.energy.gov.za
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency SA: www.petroleumagencysa.com
South African Oil and Gas Alliance: www.saoga.org.za
Transnet Pipelines: www.transnet.net
51 FREE STATE BUSINESS 2018

Sasol supports access to
health care in the Free State
Blood pressure testing formed part of the range of tests done during
Phase 2 of the Sasol HIV/Aids and TB support programme. Community
members also had access to HIV, TB, STI and blood glucose testing.
Sasol recognises that we have an important
role to play in socio-economic development,
particularly in the communities in which we
operate.
Our social investment programmes focus
on Education and Skills Development,
mainly Science, Technology, Engineering
and Mathematics education and vocational
skills development. Entrepreneurship
training aimed at youth, Small Business
Development and Environment is also a
focus area. In addition we concentrate on
Community Development which comprises
mainly programmes to enable access to
healthcare and well-being, collaborating to
improve the delivery of municipal services.
As it is a key focus to bring healthcare
closer to our communities, we invest in
preventative and corrective programmes to
enhance the well-being of the members of
our communities.
In partnership with the Free State
Department of Health we upgraded and
expanded three clinics in Zamdela and
provided four fully equipped mobile clinics.
These support the Department of Health’s
‘back to care’ strategy of providing homebased
care services to rural areas that
are far from local community clinics. The
four mobile clinics treat more than 35 000
patients per year.
In addition, Sasol recently built the new
Sasolburg Clinic that will contribute
immensely towards four strategic
outcomes in respect of the right of access
to healthcare articulated by the Free State

The new Sasolburg Clinic built by Sasol opened
its doors in April 2017 to serve more than
16 000 people in Metsimaholo.
Premier during the 2017 SOPA. The new
Sasolburg Clinic serves a catchment area of
over 16 000 people.
Sasol also successfully conducted the
second phase of the Sasol HIV/Aids and TB
Support Programme in cooperation with the
Free State Department of Health and a local
NGO during 2017. The programme, aligned
with the new National Strategic Plan on HIV,
TB and STIs, placed testing villages in the
Fezile Dabi District. Towns such as Zamdela,
Deneysville, Oranjeville, Parys, Tumahole,
Koppies, Villiers, Frankfort, Tweeling,
Kroonstad and Viljoenskroon were visited.
More than 200 community health workers
conducted testing and screening at the
villages, while also going from door-to-door
in the community. During both phases more
than 73 000 people were tested.
Over 3 800 of the people tested were
referred for TB treatment while about
4 000 of the patients were referred for HIV
treatment. Testing for sexually transmitted
infections (STIs) was introduced for the
first time during Phase 2. As part of the
service, patients also had access to blood
pressure and blood glucose testing while
also distributing 830 300 condoms in the
communities.

OVERVIEW
Tourism
The game industry is set to boost the wider tourism sector.
SECTOR INSIGHT
The Phillip Saunders Resort
in Bloemfontein is to become
a hotel school.
• A biodiversity corridor
will bring benefits to a
Qwaqwa community.
Tourism is one of the Free State’s fastest-growing economic sectors,
with leisure and business tourism enjoying the best growth
within the industry.
The Free State Department of Economic, Small Business
Development, Tourism and Environmental Affairs believes that the
R7.7-billion game industry sector could grow even further across three
subsectors, namely:
• auctions and translocations
• game ranching and eco-tourism (including hiking trails, bird watching,
photographic safaris, 4x4 trails, canoeing, abseiling, lodges
and conferences)
• a combination of lodges, game breeding, eco-tourism and hunting.
In support of this trend, new protected areas are being proclaimed
in areas where tourism can bring employment and economic growth.
There are ambitious plans to create a biodiversity corridor between
the Golden Gate Highlands National Park, the Royal Natal National Park
and the Sterkfontein Nature Reserve which will involve the Qwaqwa
community living at the base of the Drakensberg mountains. Near
Memel, the Sneeuwberg Protected Environment, a multi-owner private
initiative, has added 17 500ha to the province’s protected asset base.
When the Ingula Nature Reserve is declared in 2017, another 8 000ha
will be added.
Existing special schools within the province are to become designated
vocational schools, with at least one of these schools specialising
in hospitality. The Phillip Saunders Resort in Bloemfontein is to become
a hotel school. The annual National Tourism Careers Expo is held in
Mangaung and attracts 10 000
participants over three days.
The Free State is putting a focus
on culture. A Heroes’ Park is
to be constructed at Thaba Nchu
and Tumahole with statues of
Oliver Tambo and Fidel Castro.
The Mangaung African Cultural
Festival (Macufe) has become a
national and international event.
Offerings range from music and
craft stalls to poetry, film and
theatre, a soccer tournament and
boxing matches.
South Africa’s largest hotel
groups have several brands
that cater to different markets.
In the Free State, Protea Hotels
has five properties: Protea
Hotel Bloemfontein by Marriott
and Protea Hotel Willow Lake
(both four-star), Protea Hotel
Bloemfontein Central (threestar),
Protea Hotel Montrose
(Harrismith) and Protea Hotel
Clarens.
The four-star Southern Sun
Bloemfontein, part of the Tsogo
Sun group, has 147 rooms, and
the Goldfields Casino in Welkom is
FREE STATE BUSINESS 2018
54

OVERVIEW
another Tsogo Sun property. The
City Lodge Bloemfontein boasts
151 rooms, and there is a Road
Lodge at the airport.
The Rantsoareng Group operates
exclusively in the Free State
and has three properties, the
biggest of which is the President
Hotel in Bloemfontein.
Sun International runs the
Lesotho Sun and the Maseru
Sun in neighbouring Lesotho.
In Bloemfontein, the Windmill
Casino and Entertainment Centre
offers slot machines and gaming
tables, plus the ability to host conferences
for up to 250 delegates.
The four-star Willow Lodge has
80 rooms. The Naledi Sun Hotel
and Casino is about 65km from
Bloemfontein.
Forever Resorts has a popular
resort with chalet accommodation
and a caravan park on
the banks of the Gariep Dam.
Overlooking the dam is the
43-room de Stijl Gariep Hotel
which has wedding and
conference facilities.
Routes
Each of the province’s district
municipalities has its own
tourism brand or route:
Cheetah Route (Mangaung
Metro and surrounds):
Bloemfontein has a host of historical
and cultural sites, including
the Naval Hill Precinct (home
to the Digital Planetarium), the
Anglo-Boer War Museum, the
National Museum (which has
the Florisbad skull), the Choet
Visser Rugby Museum, the SA
Armour Museum and the Fire
Station Museum. Nearby Thaba Nchu is where the great statesman
Moshoeshoe held court in the second half of the 19th century, and
created a nation against the odds.
Springbok Route (Xhariep District): Travellers can start their journey
at a diamond mine, visit a wine farm and finish on the top of the
Gariep Dam. Several Anglo-Boer War battles sites and superb San rock
engravings can be found dotted around the district.
Flamingo Route (Lejweleputswa District): One of the biggest agricultural
expos in the world takes place at Bothaville. Phakisa race
track in Welkom attracts large crowds and it has so far hosted six
World Motorcycle Grand Prix events, providing a big boost to the
regional economy. The district has several game farms, game reserves
and resorts.
Lion Route (Fezile Dabi District): The banks of the Vaal River provide
for boating, yachting and camping. Parys is a popular destination and
Deneysville has a crocodile farm. Cape wines can be tasted on the
Riemland Wine Route. The Vredefort Dome, site of a meteorite strike
in the distant past, is a World Heritage Site.
Eagle Route (Thabo Mofutsanyane District): This route encompasses
the Golden Gate Highlands National Park and Resort. Ficksburg has
claims to be the world’s Cherry Capital and nearby Clarens is very
popular with weekenders looking for art in a rustic village atmosphere.
Bethlehem hosts an annual Bethlehem Air Show and the Maize Fair
in October. Phuthaditjhaba is a good starting point for the Basotho
Cultural Village and access to the Vulture Restaurant and Witsieshoek
Mountain Resort.
CONTACT INFO
Department of Economic, Small Business Development,
Tourism and Environmental Affairs
MEC: Dr Benny Malakoane
Physical address: Bojanala Building, 34 Markgraaff Street,
Bloemfontein 9300
Postal address: Private Bag X20801, Bloemfontein 9300
Tel: 086 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
ONLINE RESOURCES
Free State Gambling and Liquor Authority: www.gla.fs.gov.za
Free State Tourism: www.freestatetourism.org
South African National Parks: www.sanparks.org
South African Tourism: www.southafrica.net
South African Tourism Services Association: www.satsa.com
55 FREE STATE BUSINESS 2018

OVERVIEW
Education and training
Free State students are learning advanced skills in China and Turkey.
The Free State
Provincial
Government is
implementing
South Africa’s largest
global skills development
programme in
support of implementation
of the National Development Plan (NDP). The Free State Premier,
Dr Ace Magashule, strongly supports the free overseas training programme,
with about 905 students studying in leading universities in
China, India, Germany, Portugal, Russia, Turkey and Belarus.
Fields of study range from all kinds of engineering, to computer
science, medicine and pharmacy. India is hosting 32 students in the
health sciences sector. Germany is hosting 68 students in sustainable
mining and remediation, computer engineering, international trade
economics, electrical and chemical engineering, molecular biology
and genetics, and civil engineering. Belarus has 17 students in the
field of informatics, applied chemistry and radio electronics. Turkey
hosts 206 students.
Russia is hosting 230 students in the fields of medicine, agri-processing,
veterinary medicine, agronomy and agriculture. Portugal is
hosting 119 students in tourism and hospitality management, civil
engineering, medicine, veterinary science, agronomy and aeronautics,
and 17 students are doing internships in information technology
at Acin IT in Portugal. Upon completion, these Free State graduates
will be part of shaping the future of the Free State and South Africa.
Domestically, there are 8 232 students at tertiary institutions on
provincial bursaries.
A new focus on very young children has seen 846 educators
given advanced training in Early Childhood Development. A total of
47 200 children were on ECD programmes in 2017/18. Grade R access
is also being improved, with an additional 80 public schools due
ONLINE RESOURCES
Central University of Technology: www.cut.ac.za
National Department of Higher Education and Training:
www.dhet.ac.za
Free State Department of Education: www.education.fs.gov.za
University of the Free State: www.ufs.ac.za
SECTOR INSIGHT
There are 8 000 provincial
government bursaries.
to receive this class in 2017/18.
A Science, Technology,
Engineering and Mathematics
Academy (STEM Academy) is
a joint undertaking of the Free
State Department of Education
and the Central University of
Technology. A pilot project at
Qelo School, Botshabelo, is testing
the idea of specialist skills
schools.
Matriculants from these
schools will be better prepared
to attend one the province’s
four Technical and Vocational
Education and Training (TVET)
Colleges. The Free State has just
over 14 000 students at four TVET
colleges, taught by 400 lecturers.
The colleges have multiple
sites. Maluti TVET College in
Phuthaditjhaba, for example,
offers classes at seven sites.
Flavius Mareka TVET College
has Kroonstad and Sasolburg
venues. Motheo TVET College
operates in Bloemfontein and
Thaba Nchu, while Goldfields
TVET College is in Welkom.
High-quality research is conducted
at the University of the
Free State (UFS) and the Central
University of Technology (CUT).
UFS caters for 17 500 students at
two sites and a further 3 000 who
study by correspondence.
FREE STATE BUSINESS 2018
56

Banking and financial services
Many agricultural companies are active in financial services.
OVERVIEW
South Africa will soon have several new banks. Companies in
the agricultural sector are also increasing their stake in finance.
No fewer than three new banks are set to make their debuts
on the South African market. Life insurer MMI Holdings is also
entering a partnership with African Bank to enable it to start taking deposits
and loaning money.
Agricultural company Afgri, which has a strong presence in the Free
State, has bought the South African Bank of Athens from the National Bank
of Greece Group. The deal is subject to regulatory approval. With its own
banking licence, Afgri will not have to continue to rely on a partnership
with the Land Bank to offer loans and insurance through Unigro. Afgri’s
GroCapital Financial Service offers futures trading contracts and the two
divisions collectively manage a R12-billion debtors book.
All of the planned new banks come from state enterprises: Ithala,
Postbank and a Human Settlements Development Bank. The Ithala
Development Finance Corporation is an enterprise funder in KwaZulu-
Natal that has applied for a banking licence.
In 2016 Postbank (part of the South African Post Office, SAPO) received
a first-level licence. Once a board of directors has been appointed and a
company formed, the Reserve Bank is likely to grant the full licence. The current
Postbank focusses on taking deposits and savings accounts. Postbank
has secured a R3.7-billion loan to enable it to open its own loan book.
CONTACT INFO
Provincial Treasury
MEC: Ms Elzabe Rockman
Physical address: 55 Elizabeth Street, Fidel Castro Building,
Bloemfontein 9300
Tel: +27 51 403 4141 | Fax: +27 51 403 3244
Website: www.treasury.fs.gov.za
ONLINE RESOURCES
Auditor-General South Africa: www.agsa.co.za
Financial Services Board: www.fsb.co.za
Insurance South Africa: www.insurance.za.org
Post Bank: www.postbank.co.za
South African Insurance Association: www.saia.co.za
SECTOR INSIGHT
Afgri has bought the Bank of
Athens (South Africa).
Three state entities are merging
to create the new Human
Settlements Development Bank:
the National Housing Finance
Corporation, the Housing Loan
Fund and the National Urban
Reconstruction and Housing
Agency. The focus will be on financing
housing for poorer households
and for large state-funded housing
projects.
For many decades, South Africa
had a retail banking Big Four –
Standard Bank, Nedbank, Absa/
Barclays and First National Bank.
In recent years Capitec Bank has
joined them as a major player in
the retail market. The big banks all
have agricultural specialists in the
province and dedicated units such
as Nedbank Agribusiness.
Senwes is another big agricultural
company active in the province,
although its headquarters are
in Klerksdorp, North West. In 2017
Senwes and its holding company
Senwesbel became the first new
stocks to be listed on the country’s
new stock exchange, the ZAR X.
CertiSure is a joint venture between
NWK and Senwes that offers shortterm
insurance, crop insurance, financial
planning, medical funds and funeral
policies. Reitz-based VKB offers
loans and insurance products.
57 FREE STATE BUSINESS 2018

OVERVIEW
Development finance and
SMME support
A business park in Sasolburg is supporting black industrialists.
A
172ha business park in Sasolburg designed to incubate
black industrialists is a joint venture between the National
Department of Trade and Industry (dti) and Sasol. There are
five buildings on the site, training is provided and companies
have access to the supply chains of Sasol’s many companies.
The dti’s Enterprise Investment Programme (EIP) is successfully supporting
Extractive Technologies, a company in the electro-technical
sector. This is a focus area of national policy and the targeted company
used its grant to create additional employment for youth in the
Sasolburg area.
The Free State Provincial Government spent R1.2-billion on SMMEs
through its state procurement programme in the 2016/17 financial
year up to the end of December 2016. The Department of Economic,
Small Business Development, Tourism and Environmental Affairs is
prioritising support to SMMEs. Programmes include: giving assets to
manufacturing micro-enterprises that show the potential to employ five
or more people; assisting with the rent payments of 35 SMMEs at the
container park in Bloemfontein; rolling out the Mangaung SMME hub;
offering accredited skills training for six months in three main sectors,
automotive, manufacturing, and agri-processing sectors.
Mospak Trading and Projects Primary Co-Operative is a recent national
winner of the manufacturing category of the Eskom Business
Investment Competition (BIC).
The National Department of Small Business Development (DSBD) has
several programmes to assist SMMEs and co-operatives. These include:
CONTACT INFO
Department of Economic, Small Business Development,
Tourism and Environmental Affairs
MEC: Dr Benny Malakoane
Physical address: Bojanala Building, 34 Markgraaff Street,
Bloemfontein 9300
Postal address: Private Bag X20801, Bloemfontein 9300
Tel: 086 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
SECTOR INSIGHT
A Phuthaditjhaba co-operative
is a national winner.
• The Black Business Supplier
Development Programme, a
cost-sharing grant to promote
competitiveness
• The Co-operative Incentive
Scheme, a 100% grant.
The Small Enterprise
Development Agency (Seda) is a
subsidiary of the DSDB and supports
entrepreneurs. Seda focusses
on training and administrative
support, although the agency will
help SMMEs get in touch with
financial bodies.
The National Gazelles is a national
SMME accelerator jointly
funded by Seda and the DSBD.
The aim is to identify and support
SMMEs with growth potential
across priority sectors aligned with
the National Development Plan.
The major banks all have
SMME offerings. Standard Bank
runs a Community Investment
Fund and Nedbank offers an enterprise
development product for
businesses with turnovers up to
R35-million.
Agribusiness and agriprocessing
are among the sectors
targeted by the Masisizane Fund
for loan financing.
FREE STATE BUSINESS 2018
58

Bringing services
to the people
The Free State Development Corporation is bringing services
closer to the people through its strategic partnership programme.
FOCUS
CIPC Commissioner Adv Rory Voller (left) and FDC CEO Ikhraam Osman (right)
at the SST official launch at Rent-A-Desk.
The strategic partnership between FDC (Free State Development
Corporation) and CIPC (Companies & Intellectual
Property Commission) brings relief to SMMEs (small, medium
and micro-enterprises) by bringing services to their doorstep.
The CEO of FDC, Ikhraam Osman, and CIPC Commissioner,
advocate Rory Voller, launched an Electronic Self Service Terminal
(SST) at Rent-A-Desk on 2 June 2017. This initiative assists aspirant
Free State entrepreneurs and SMMEs as they are now able to
register their companies with CIPC at a minimal cost of R175. In
addition to cutting the transport cost of having to travel to Pretoria for
registering their business, they receive their registration certificate
within two days after registering.
According to CIPC, the facility is a government response to meet
the needs of emerging businesspeople by bringing services at low
cost to their doorstep.
FDC CEO Ikhraam Osman indicated that Rent-A-Desk is a
co-working space of affordable shared services that provides
SMMEs and other businesses an opportunity for collaboration
and networking, secure parking facilities, boardroom, full reception
services and high-speed Internet. Other advantages include
housekeeping services, access to a fully equipped kitchen, printing
and email facilities.
Botshabelo Industrial Area
In November 2017, the Free State Premier, Ace Magashule, and
his delegation conducted site visits to Botshabelo Industrial
Area to assess the state of development of manufacturing en-
trepreneurs. Companies visited
included CMT operators,
tyre manufacturers, roofsheet
manufacturing, LSF frames,
trusses and hall panel manufacturers,
PVC ceiling manufacturers
and suppliers, household
electric goods manufacturers
and broiler producers.
The purpose of the visit
was to assess for himself the
state of the development of
manufacturing entrepreneurs
and the conditions under
which they operate. This was
intended to ensure that government
enterprise development
support programmes
respond to specific needs of
manufacturers such as ensuring
that provincial government
and municipalities source from
local manufacturers to help to
sustain their business and
generate much-needed jobs.
The FDC and DESTEA
(Department of Economics,
Small Business, Tourism and
Environmental Affairs) were
directed by the Premier to
implement targeted market
access and product development
interventions to enable
the Botshabelo SMMEs to
grow their business and facilitate
access for them to the
incentives that are available
for their business expansion
projects.
59 FREE STATE BUSINESS 2018

INTERVIEW
The Black Management
Forum Free State
Kaiser Khoza, Provincial Chairperson of Free State BMF,
outlines the goals of the organisation.
Kaiser Khoza
Please outline the main objectives of the Black Management
Forum.
The BMF advocates for excellence in Managerial Leadership. It is a champion
for socio-economic transformation as an enabler for equity. The
BBBEE Act must be implemented by government and corporate SA.
What is your current focus?
Our focus is still on transformation. We have issued the Transformation
Barometer and are now engaged in the Transformation Master Plan. We
are looking at the regulatory environment and are teasing out aspects
that have resulted in a slow pace of transformation. We are looking at
strengthening Employment Equity as most companies do not comply.
BIOGRAPHY
Kaiser Khoza has been an admitted
attorney since 2001,
having graduated from the
University of Durban-Westville.
He has worked as a state attorney,
in the national Department
of Higher Education, the
Presidency and several Free
State provincial government
departments. He has served
as secretary of the Black Lawyers
Association, Free State,
Deputy Chair of the State Litigation
Management Forum,
a member of the Information
Officers Forum and is a member
of SASREA Appeal Board and
a trustee of the Lebone Trust.
What are some of the most recent achievements of the
Free State BMF?
We partnered with the ILO on SME research and other programmes
in the Free State. We have entered into MoUs with the UFS Business
School and PwC for training and development. We have partnered with
a number of corporates regarding placing graduates and community
development programmes.
Does the BMF work with other organisations?
We work closely with all stakeholders; our role in the N3 De Beers Pass
is a case in point, as it was a serious threat to economic stability of the
Free State. The recently launched Maluti-A-Phofung SEZ was threatened
by the De Beers Pass and our work with labour, government and civil
society saw us achieving great milestones.
What issues lie ahead?
We remain concerned about the slow pace of transformation. Most
black SMEs rely on government work to survive. We need to work with
corporates on their enterprise development initiatives and ensure that
the rand rotates around the Free State. We are part of the Buy Black
Business Day Movement which encourages black people to buy from
and amongst each other.
FREE STATE BUSINESS 2018
60

Mangaung Chamber of
Commerce and Industry
PROFILE
The voice of business in the Free State.
The Chamber seeks to be the voice of business in
Mangaung and to assist in promoting economic
development and investment in the province.
In these endeavours the MCCI won the PMI Africa
award for the organisation doing the most for
business development as well as triple BEE in
the province.
The new Chamber of Commerce and Industry was
constituted in 2003. In 2013 we reregistered as the
Mangaung Chamber of Commerce and Industry
in order to include the whole metropole.
Although the MCCI is the oldest business chamber
in the Free State, in 2017 we strongly believe
that we have the progressive outlook befitting
a chamber complying with the modern-day
requirements of the business world. MMCI have
won the Africa PMR Awards for the last 3 years.
Objectives
• Entrepreneurs are the engines of communitywide
economic development. The MCCI is
creating a sufficient number of entrepreneurs
to transform this region’s economy.
• We serve our members and the community
with innovative approaches to establish a
vibrant business network that will promote all
levels and stages of businesses.
• Signing and implementing MOU’s with
stakeholders that can make a difference.
• To give practical credibility to the term “Local
Economic Development” not only in Mangaung,
but in other areas in the Free State as well.
• To promote and support local businesses through
specific interventions like the “Member-support-
Member” campaign.
• To promote triple BEE by, among other initiatives,
linking big and small businesses through
the chamber’s network.
• To do advocacy on behalf of our members so that
we can influence and monitor relevant authorities
and role-players.
• To promote the development of the city and
surrounds as a destination of choice for tourists.
• To become a strategic vehicle for the participation
of member businesses in social responsibility
programmes.
• To promote and support initiatives aimed at
renewable and alternative energy sources.
Benefits for members
• Innovative networking events and opportunities
• SMME development and support centre
• Import and export support centre
• Seminars, training, workshops and business
mentoring
• Advertising opportunities for our members
• Lobbying municipalities, local and provincial
government
CONTACT INFO
Mangaung Chamber of Commerce
and Industry
Tel: +27 51 522 1710
Email: President@bcci.co.za
Website: www.mcci.co.za
61 FREE STATE BUSINESS 2018

LISTING
Free State Provincial Government
A guide to Free State’s provincial government departments.
Visit: www.freestateonline.fs.gov.za
Office of the Premier
Premier: Mr Ace Magashule
4th Floor, OR Tambo Building, Cnr St Andrews and Markgraaff Streets,
Bloemfontein 9300
Tel: +27 51 405 5799
Fax: +27 51 405 4803
Website: www.premier.fs.gov.za
Department of Agriculture and Rural
Development
MEC: Mr Motete Daniel Khoabane
Main Building, Gielie Joubert Street, Glen, Bloemfontein 9360
Tel: +27 51 861 8401
Fax: +27 51 861 8578 / 086 723 8206
Website: www.ard.fs.gov.za
Department of Cooperative Governance
and Traditional Affairs
MEC: Mrs Sefora Ntombela
7th Floor, Lebohang Building, Cnr St Andrews and Markgraaff Streets,
Bloemfontein 9301
Tel: +27 51 403 3224
Website: www.cogta.fs.gov.za
Department of Economic, Small Business
Development, Tourism and
Environmental Affairs
MEC: Dr Benny Malakoane
Bojanala Building, 34 Markgraaff Street, Bloemfontein 9300
Tel: +27 86 110 2185 | Fax: +27 51 400 9593
Website: www.edtea.fs.gov.za
Department of Education
MEC: Mr Pule Makgoe
Free State Provincial Government Building, 55 Elizabeth Street,
Bloemfontein 9300
Tel: +27 51 404 8411 | Fax: +27 51 404 8269
Website: www.education.fs.gov.za
Department of Health
MEC: Mr Butana Komphela
Cnr Harvey and Charlotte Maxeke Streets, Bloemfontein 9300
Tel: +27 51 408 1677 | Fax: +27 51 408 1107
Website: www.fshealth.gov.za
Department of Human Settlements
MEC: Mrs Sefora Ntombela
7th Floor, Lebohang Building, Cnr Markgraaff and St Andrews Streets,
Bloemfontein 9300
Tel: + 27 51 405 3883 | Fax: + 27 51 403 3699
Web: www.humansettlements.fs.gov.za
Department of Police, Roads and Transport
MEC: Mr Sam Mashinini
4th Floor, Perm Building, 45 Charlotte Maxeke Street, Bloemfontein 9301
Tel: +27 51 409 8849 | Fax: +27 51 409 8864
Website: www.policeroadstransport.fs.gov.za
Department of Public Works and Infrastructure
MEC: Ms Dora Kotzee
Cnr Markgraaff and St Andrews Streets, Bloemfontein 9301
Tel: +27 51 405 4692 | Fax: +27 51 405 4490
Website: www.publicworks.fs.gov.za
Department of Social Development
MEC: Ms Limakatso Mahasa
Civilia Building, 14 Elizabeth Street, Bloemfontein 9300
Tel: +27 51 409 0619 | Fax: +27 51 409 0618
Website: www.socdev.fs.gov.za
Department of Sports, Arts,
Culture and Recreation
MEC: Mrs NS Leeto
4th Floor, Business Partners Building, Cnr Henry and Eastburger Streets,
Bloemfontein 9300
Tel: +27 51 410 4727 | Fax: +27 51 410 4758
Website: www.fssacr.gov.za
FREE STATE BUSINESS 2018
62

LISTING
Provincial Treasury
MEC: Ms Elzabe Rockman
55 Elizabeth Street, Fidel Castro Building, Bloemfontein 9300
Tel: +27 51 403 4141
Fax: +27 51 403 3244
Website: www.treasury.fs.gov.za
Free State Local Government
A guide to metropolitan, district and local municipalities in the Free State Province.
MANGAUNG METROPOLITAN
MUNICIPALITY
Physical address: Bram Fischer Building, cnr Nelson Mandela and
Markgraaff Streets, Bloemfontein 9301
Postal address: PO Box 3704, Bloemfontein 9300
Tel: +27 51 405 8911
Fax: +27 51 405 8663
Website: www.mangaung.co.za
FEZILE DABI DISTRICT MUNICIPALITY
Physical address: John Vorster Road, Sasolburg 1947
Postal address: PO Box 10, Sasolburg 1947
Tel: +27 16 970 8600
Fax: +27 16 970 8747
Website: www.feziledabi.gov.za
Mafube Local Municipality
Tel: +27 58 813 1051 | Fax: +27 58 813 3072
Website: www.mafubemunicipality.gov.za
Metsimaholo Local Municipality
Tel: +27 16 973 8301 | Fax: +27 16 973 2191
Website: www.metsimaholo.gov.za
Moqhaka Local Municipality
Tel: +27 56 216 9111 | Fax: +27 56 216 9122
Website: www.moqhaka.gov.za
Ngwathe Local Municipality
Tel: +27 56 816 2700 | Fax: +27 56 817 6343
Website: www.ngwathe.fs.gov.za
LEJWELEPUTSWA DISTRICT MUNICIPALITY
Physical address: cnr Jan Hofmeyer and Tempest Streets, Welkom 9460
Postal address: PO Box 2163, Welkom 9460
Tel: +27 57 353 3094
Fax: +27 57 353 3382
Website: www.lejweleputswa.co.za
Masilonyana Local Municipality
Tel: +27 57 733 0105
Fax: +27 57 733 2217
Website: www.masilonyana.fs.gov.za
Matjhabeng Local Municipality
Tel: +27 57 391 3359
Fax: +27 57 357 4393
Website: www.matjhabeng.co.za
Nala Local Municipality
Tel: +27 56 514 9200
Fax: +27 56 515 3922
Website: www.nala.org.za
Tokologo Local Municipality
Tel: +27 53 541 0014
Fax: +27 53 541 0360
Website: www.tokologo.fs.gov.za
Tswelopele Local Municipality
Tel: +27 51 853 1111
Fax: +27 51 853 1332
Website: www.tswelopele.fs.gov.za
63
FREE STATE BUSINESS 2018

LISTING
THABO MOFUTSANYANA DISTRICT
MUNICIPALITY
Physical address: Old Parliament Building, 1 Mamopi Street,
Phuthaditjhaba 9870
Postal address: Private Bag X810, Witsieshoek 9870
Tel: +27 58 718 1000
Fax: +27 58 718 4090
Website: www.thabomofutsanyana.gov.za
Dihlabeng Local Municipality
Tel: +27 58 303 5732
Fax: +27 58 303 4703
Website: www.dihlabeng.gov.za
Maluti-a-Phofung Local Municipality
Tel: +27 58 718 3700 | Fax: +27 58 718 3777
Website: www.map.fs.gov.za
Mantsopa Local Municipality
Tel: +27 51 924 0654 | Fax: +27 51 924 0020
Website: www.mantsopa.fs.gov.za
Nketoana Local Municipality
Tel: +27 58 863 2811 | Fax: +27 58 863 2523
Website: www.nketoana.fs.gov.za
MUNICIPALITIES IN THE FREE STATE
North West
Phumelela Local Municipality
Tel: +27 58 913 8300 | Fax: +27 58 913 2317
Website: www.phumelela.gov.za
Setsoto Local Municipality
Tel: +27 51 933 9300 | Fax: +27 51 933 9383
Website: www.setsoto.info
XHARIEP DISTRICT MUNICIPALITY
Physical address: 20 Louw Street, Trompsburg 9913
Postal address: Private Bag X136, Trompsburg 9913
Tel: +27 51 713 9300 | Fax: +27 51 713 0461
Website: www.xhariep.gov.za
Kopanong Local Municipality
Tel: +27 51 713 9200 | Fax: +27 51 713 0292
Website: www.kopanong.gov.za
Letsemeng Local Municipality
Tel: +27 53 330 0200 | Fax: +27 53 205 0144
Website: www.letsemeng.gov.za
Mohokare Local Municipality
Tel: +27 51 673 9600 | Fax: +27 51 673 1550
Website: www.mohokare.co.za
Gauteng
Fezile Dabi
Ngwathe
Metsimaholo
Mafube
Mpumalanga
Nala
Moqhaka
Nketoana
Phumelela
Tswelopele
Matjhabeng
Thabo Mofutsanyana
Northern Cape
Tokologo
Lejweleputswa
Setsoto
Dihlabeng
Maluti-a-Phofung
Masilonyana
KwaZulu-
Natal
Mantsopa
Letsemeng
Mangaung
Xhariep
LESOTHO
N
Mohokare
Kopanong
Metropolitan/District
Municipality boundary
Local Municipality Boundary
District Municipality
Local Municipality
Xhariep
Setsoto
Eastern Cape
FREE STATE BUSINESS 2018
64

SEE MONEY DIFFERENTLY WITH
WHOLE-VIEW
TM
BUSINESS BANKING
With Whole-view Business Banking from Nedbank, there’s one bank with one view across
your business, allowing us to create unique business and financial solutions together.
You’ll get partnership advice from a dedicated local client service team, supported by
a team of specialists. By having the full picture we’ll have a deeper understanding of your
business, which will take it further than ever before.
Sometimes, a change in approach can change everything. Partner with Nedbank today.
Search Whole-view Business Banking or email business@nedbank.co.za.
see money differently
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

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