South African Business 2022

SOUTH AFRICAN 

BUSINESS 

2022 EDITION 

THE GUIDE TO BUSINESS AND INVESTMENT 

IN SOUTH AFRICA 

SOUTH AFRICAN 

BUSINESS 



2021 EDITION 

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Let’s come together and heal as a nation. 

Let’s focus on Renewing, Restoring and Rebuilding 

successful partnerships and investment opportunities so we 

can get back to promoting our city as the ideal destination 

for business and pleasure to the rest of the world. 

Your support coupled with our world-class infrastructure, 

innovative business environment and ever evolving 

investment opportunities, means we can get back to 

‘connecting continents’ in no time. 

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Tel: +27 31 311 4227 

Email: invest@durban.gov.za 

web: invest.durban 

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The city of 

Durban (eThekwini 

Municipality) is South 

Africa’s second most 

important economic 

region 

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Extensive first-world 

road, rail, sea and air 

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TradePort 

and King 

Shaka 

International 1 

Airport - 60- 

year Master 

Plan - driving 

growth of 

aerotropolis, 

or airport 

city 

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Rated in top 5 

‘Quality of Living’ 

cities in Africa and 

Middle East by 

Mercer Consulting in 

2015 

Named one of the 

New 7 Wonders Cities 

by the Swiss-based 

New 7 Wonders 

Foundation in 2014 

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Building the South African Nation Brand 

The Brand South South Africa Africa Acting of today Chief is definitely Marketing not Officer the same Mpumi country Mabuza administration outlines the can be achieved, i 

strategic 

that 

steps 

emerged 

being 

from 

taken 

a tumultuous 

to position 

history 

the 

only 

country 

25 years 

in the 

ago 

region 

in viewed 

and the 

against 

world. 

the background 

1994. During 2019, the country’s sixth democratically elected of the broader competitive and 

Brand administration South Africa took is taking office, active under steps the leadership economic of infrastructure. President South comparative Africa is also one advantages of the up its 

Cyril Ramaphosa. to take a critical look at the current state highest-ranking developing proverbial economies and sleeve. surpasses 

As the of country the country completes and propose its first quarter possible century countries of democracy, such as Hungary, the Italy, Brazil South and Africa Thailand. is, for example 

solutions on how we can successfully Diverse sectors: South Africa has the most 

strategic objectives of the sixth administration were made clear during one of the most transparen 

navigate our way to a better tomorrow in terms of dynamic economy on the continent, with key 

his positively first State positioning of the Nation the Nation Address Brand. (SONA) of the productive new administration sectors ranging state from governance finance, mining, systems in 

(20 June We 2019). recently In hosted this SONA, the Nation the President Brand Forum stated that, manufacturing, “As we enter agriculture, this the pharmaceuticals world. Ranking and second ou 

new under administration, the theme #BelieveinSA. we will focus Brand on South seven Africa priorities: healthcare, transport and logistics, of 102 communications 

countries in the Open 

• sought Economic to create transformation a platform that and kind job of creation forward and information technology Budget Index, and also ranking 

thinking. It also aimed to highlight the objectives Ease of doing business: According to the World 

• Education, skills and health 

as first out of 141 countries fo 

of the Reconstruction and Recovery Plan, in order Bank, it costs just R175 to start a business in South 

• 

to 

Consolidating 

reassure South Africa 

the social 

and the 

wage 

world 

through 

that we are 

reliable 

Africa, 

and 

which 

quality 

is cheaper 

basic 

than 

Budget 

90% of the 

Transparency, 

rest of the 

in the 

a services country committed to rebuilding and creating a world. Reserving a company World name Economic and registering Forum Globa 

• better Spatial country integration, for all. human settlements and local with government 

the Companies and Competitiveness Intellectual Property Index (WEF GCI) 

• Social South cohesion Africans have and proven safe communities 

themselves as a very Commission (CIPC) can cost In terms less than of its R200. financial South systems it is 

• resilient A capable, nation. ethical We pride and ourselves developmental on our ability state Africa is ranked 10th for its evident start-up that affordability, the country is a world 

to overcome adversity. Brand South Africa has to with a total cost relative to the monthly average 

• A better Africa and world.” 

leader in that it ranks 19th in the 

remind the world, and sometimes South Africans, income of 3%. Most neighbouring countries have 

that The we South continue Africa to be a of nation the inspiring sixth administration new ways. considerably is a country higher with cost-to-income Finance percentages. pillar of the WEF GCI. Bu 

much to offer its citizens, and the world. Objectives set by the current it does not stop there. 

South Africa’s unique selling points 

Covid-19 collaboration 

Economic prowess: South Africa is the economic We have highlighted the cross-sectoral collaboration 

SOUTH powerhouse AFRICAN of the BUSINESS African continent, 2020 with a Gross that 4 has taken place with a broad spectrum of 

Domestic Product (GDP) of R1.9-trillion (US$283bn) stakeholders who have found innovative solutions 

– four times that of its Southern African neighbours to the health, economic and social challenges 

and comprising 30% of the entire GDP of Africa. caused by the pandemic. 

South Africa has strong entrepreneurial and dynamic South Africa has reiterated the importance of 

investment environment due to highly developed equitable access to vaccines which will ensure that 

SOUTH AFRICAN BUSINESS 2022 

4

f 

, 

t 

t 

r 

l 

. 

t 

we end the pandemic sooner and then we can 

build-back-better. 

We also firmly believe that our call for the World 

Trade Organisation to waive intellectual property 

rights tied to Covid-19 vaccines would be the correct 

decision for humanity, and if implemented it would 

allow more pharmaceutical companies, including our 

own, to manufacture life-saving vaccines. 

Encouraging active citizenship and Nation 

Brand Advocacy 

Play Your Part was in its 10th year in 2021 and 

continues to encourage all South Africans to be 

active citizens, placing it upon themselves to be 

the change that they want to see and impact those 

around them to do the same. Play Your Part has 

been successful in highlighting what ordinary South 

Africans are doing to change the social and material 

conditions of the most vulnerable sections of South 

African society. The most impactful projects through 

the PYP campaign are those related to education 

and gender-based violence. 

PYP has become an important slogan, an 

essential part of South African society, where we 

are all tasked with contributing positively in order 

to create the country that we all deserve. 

Equally important is the Global South Africans 

programme which aims to build Nation Brand 

advocacy among South Africans in the diaspora. 

South African living abroad are encouraged to be 

patriotic and fly the South African flag high wherever 

they are. Brand South Africa’s role is to create 

opportunities and platforms for Global South Africans 

to connect and also empower them with messages 

and information about key issues in the country. 

Promoting South Africa in the region and beyond 

Regional forums such as SADC and the AU are hugely 

important for South Africa in that they continue to 

highlight the role we play as a key player, especially 

in terms of regional governance, peace and security. 

Health and climate diplomacy are proving to be 

key pillars of foreign policy for many states. Through 

our TRIPS (Trade-Related Aspects of Intellectual 

Property Rights) waiver request to the World Trade 

Organization, South Africa showed its commitment 

to ensuring equitable access to vaccines for African 

countries. South Africa is a country brand that is 

synonymous with championing causes that seek to 

improve the lives of all Africans. 

Mpumi Mabuza, Brand SA Acting Chief 

Marketing Officer 

The BRICS nations (Brazil, Russia, India, China 

and South Africa) have identified the need to 

strengthen cooperation among themselves to 

support economic recovery, ensure financial stability 

and guard against future uncertainties, such as those 

brought about by Covid-19. The strengthening of 

international cooperation and establishing a crossborder 

regulatory mechanism for further improving 

the investment environment and enhancing capital 

flows is the next goal for BRICS countries. Some 

notable outcomes are the New Development Bank 

and the Contingent Reserve Arrangement which 

have marked significant progress in expanding the 

tangible financial cooperation among BRICS nations. 

The fact that the Secretary General of the African 

Continental Free Trade Area (AfCFTA) is South African 

is a great selling point for the country and Brand 

South Africa. We have a well-established relationship 

with the Secretariat and we aim to collaborate on a 

number of strategic projects that will seek to better 

educate South Africans and the rest of the continent 

on what opportunities are available through the 

AfCFTA. We are also keen to bring the Nation Brand 

message to the continent by proposing that African 

nations adopt Nation Brand strategies with the aim 

of creating carefully curated narratives that seek to 

position them better as key destinations for trade and 

investment under the AfCFTA. We believe that our 

experience as the oldest Nation Brand agency in Africa 

will be of great benefit to our brothers and sisters on 

the continent. ■

CONTENTS 

CONTENTS 

South African Business 2022 Edition 

Introduction 

Foreword 9 

A unique guide to business and investment in South Africa. 

Special features 

An economic overview of South Africa 10 

Growing the economy while simultaneously paying off debt 

presents a huge challenge but infrastructure plans and green 

financing options offer opportunities. 

Provinces of South Africa 13 

Special Economic Zones 16 

Several SEZs are focussing on green energy and green technology. 

A snapshot of South Africa’s provinces. 

Gas exploration is reaping dividends – 

mining could be next 32 

A vital refinery could start receiving new feedstock 

to prolong its life. 

Economic sectors 

Agriculture 40 

Rooibos has won the battle for unique regional status. 

Mining 44 

Record earnings for miners have been good for the national Treasury. 

Energy 48 

Generation exemption has changed the energy landscape. 

Oil, gas and petrochemicals 54 

Offshore gas discoveries could boost South Africa’s economy. 

Water 58 

A three-year programme will tackle dam storage problems. 


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CONTENTS 

Engineering 62 

Renewable energy projects are coming on stream. 

Construction and property 64 

Covid-19 has shaken up sector priorities. 

Manufacturing 65 

Vaccine manufacturing is accelerating. 

Transport and logistics 66 

The private sector is set to play a bigger role in transport. 

Automotive 72 

Total manufacture and exports rebounded well in 2021. 

ICT 73 

Covid-19 has increased demand for faster data speeds. 

Tourism 74 

The summer of 2021/22 will be vital for the sector. 

Banking and financial services 75 

120 years on, Cape Town has a stock exchange again. 

Development finance and SMME support 76 

The IDC has assets of R144-billion. 

References 

Key sector contents 38 

Overviews of the main economic sectors of South Africa. 

Index 80 

SOUTH AFRICAN 

BUSINESS 



SOUTH AFRICAN 

BUSINESS 

2021 EDITION 

2022 EDITION 

ABOUT THE COVER: 

The Deepsea Stavanger oil drilling rig has been active off South Africa’s coast (PASA). Top right 

to bottom left: Rooibos is now protected (SA Rooibos Council); the Port of Richards Bay (TNPA); 

zebras (Sifiso/Brand SA); a farmhouse near Clarens in the Free State (Flickr/SA Tourism); the zinc 

project in the Northern Cape (Kevin Wright/Vedanta Zinc International). 

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8

South African Business 

A unique guide to business and investment in South Africa. 

FOREWORD 

Credits 

Publishing director: 

Chris Whales 

Editor: John Young 

Managing director: Clive During 

Online editor: Christoff Scholtz 

Designer: Tyra Martin 

Production: Aneeqah Solomon 

Ad sales: 

Gavin van der Merwe 

Sam Oliver 

Jeremy Petersen 

Gabriel Venter 

Vanessa Wallace 

Shiko Diala 

Tahlia Wyngaard 

Administration & accounts: 

Charlene Steynberg 

Kathy Wootton 

Distribution and circulation 

manager: Edward MacDonald 

Printing: FA Print 

Welcome to the 10th edition of the South 

African Business journal. First published in 

2011, the publication has established itself as 

the premier business and investment guide 

to South Africa, supported by an e-book edition at www. 

southafricanbusiness.co.za. 

Regular pages cover all the main economic sectors 

of the South African economy and give a snapshot of 

each of the country’s provinces. This issue has a focus on 

Special Economic Zones which are being rolled out across 

the country with specific economic areas of focus. The 

importance of the revival of minerals exploration and the 

significance of onshore and offshore gas discoveries is the 

subject of another special feature. 

South African Business is complemented by nine 

regional publications covering the business and investment 

environment in each of South Africa’s provinces. The e-book 

editions can be viewed online at www.globalafricanetwork. 

co.za. These unique titles are supported by a monthly 

business e-newsletter with a circulation of over 23 000. In 

2020, the inaugural African Business joined the Global African 

Network stable of publications. ■ 

Chris Whales 

Publisher, Global Africa Network | Email: chris@gan.co.za 

DISTRIBUTION 

South African Business is distributed internationally on outgoing 

and incoming trade missions, through trade and investment 

agencies; to foreign offices in South Africa’s main trading 

partners around the world; 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, airport lounges, provincial 

government departments, municipalities and companies. 

PUBLISHED BY 

Global Africa Network Media (Pty) Ltd 

Company Registration No: 2004/004982/07 

Directors: Clive During, Chris Whales 

Physical address: 28 Main Road, Rondebosch 7700 

Postal address: PO Box 292, Newlands 7701 

Tel: +27 21 657 6200 | Fax: +27 21 674 6943 

Email: info@gan.co.za | Website: www.gan.co.za 

Member of the Audit Bureau 

of Circulations ISSN 2221-4194 

COPYRIGHT | South African 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 | Addo Elephant National Park; Bosch Holdings; BTE 

Renewables; Council for Geoscience; Dedisa Peaking Plant; Dominic 

Bonnesse Architects; Eskom; Fortress REIT; Gestamp Renewable 

Industries; Glencore; Harmony; Kristof Basson Architects; PASA; PG 

Bison; Pilanesberg Platinum Mines; Primocane Capital; Renergen; Seda; Sun 

International; Thungela Resources; Transnet National Port Authority. 

. 

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, 

has used all reasonable efforts to ensure that the information contained in 

South African 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. 

9 SOUTH AFRICAN BUSINESS 2022

SPECIAL FEATURE 

AN ECONOMIC OVERVIEW OF 

SOUTH AFRICA 

Growing the economy while simultaneously paying off debt presents 

a huge challenge but infrastructure plans and green financing 

options offer opportunities. 

By John Young 

Two numbers came to the fore in 

2021, one quite modest, the other 

extremely large. Both the 100MW 

extension granted on the ability of 

private power generators to go ahead with 

a project without the need for licensing and 

the R130-billion pledged in green financing 

to South Africa by several rich countries 

at the COP26 conference could have farreaching 

consequences for the trajectory of 

South Africa’s economy. 

South Africa’s economy has to grow and 

the country’s debt has to be reduced. How to 

do these things simultaneously is the challenge 

for the country’s new Minister of Finance, Enoch 

Godongwana, who was appointed in August 

2021, replacing Tito Mboweni, who asked to be 

relieved of his duties. Like many of his cabinet 

colleagues and the president, Godongwana cut 

his political teeth in the trade union movement 

but in his first budget presentation, the midterm 

budget in November, he did not present 

any new items of expenditure. Rather, he 

presented a budget that reflected the fact that 

there is currently no money to spend on new 

programmes. There has to be less spending, 

fewer borrowings and the public debt has to be 

controlled. Finding a way to grow the economy 

in that environment will be tough. 

As to signals of what the new Finance 

Minister intends doing in the future, one 

commentator found significance in how 

Godongwana spent the unexpected windfall 

of R120-billion that came the way of Treasury 

because of the high prices of commodities in 

2021. Professor Haroon Bhorat of the University 

of Cape Town broke down “every R1 of tax 

revenue the government received from this 

lottery” as follows: 51 cents on debt; 17 cents to 

civil servant wages; 32 cents on relief packages. 


10


Bhorat’s conclusion was that government is 

committed to fiscal consolidation “while being 

willing to spend within limits on direct transfers”. 

Which is why the two numbers mentioned 

above become so critical. When President 

Ramaphosa announced that private power 

investors could create up to 100MW of power 

without having to wait for licensing, he 

potentially opened up a path to growth, a path 

that has been constrained for some time by the 

limitations of the national utility, Eskom. Eskom’s 

inability to provide enough electricity to power 

the economy (and its huge debt) rank as the 

biggest risks to the South African economy. 

Opportunities for private consortiums such as 

the Dedisa Peaking Power Plant at the Coega 

SEZ (pictured) will expand. 

Eskom’s unbundling will be another spur to 

growth. The legal separation of transmission is 

expected to be completed by December 2021 

with the other two elements, generation and 

distribution, to follow. The idea is not to privatise 

the entities but to find private partners and to 

allow for competition within the various fields. 

The R130-billion pledged by the EU, 

the US, Germany, France and the UK is not 

straightforward; it comes as a mixture of grants, 

risk-sharing instruments and concessional 

finance but it will allow South Africa to fund 

projects that will help the country to move 

away from fossil fuels without further stretching 

Eskom’s precarious finances. 

The commodities attracting the most 

attention are those which have the potential 

to power the green economy, platinum group 

metals (PGMs) and chrome among them. In 

August 2021, exports were reportedly 44% 

higher than the year before. Covid obviously had 

a lot to do with that figure, but R166.5-billion 

still represented a good number. 

Recovery plan 

The government’s recovery plan is called the 

Economic Reconstruction and Recovery Plan 

(ERRP) and it has a focus on expanding and 

improving infrastructure, a public employment 

stimulus, local industrial development and the 

expansion of energy generation. 

The plan intends to unlock R1-trillion in 

private investment. Furthermore, a commitment 

is made to improving the capability of the state 

and to remove barriers to doing business or 

investing in the country. 

Enabled in 2020 by an amendment to 

legislation that allowed them to work with 

the evidence presented to the state capture 

commission, National Prosecuting Authority 

(NPA) prosecutors quickly finalised cases and 

arrests started happening. After a decade in which 

it seemed that immunity was guaranteed for 

corrupt officials and employees of state-owned 

enterprises, the tide started to turn. In 2021 expresident 

Zuma’s refusal to appear before the 

commission led to him spending time in jail. His 

trial on substantive corruption charges lies ahead. 

The outbreak of looting and violence that 

appeared to be triggered by Zuma’s jailing probably 

had more to do with the frustration felt by many 

South Africans at the culture of impunity which has 

surrounded many politicians and thieving business 

people than it did with the specifics of the Zuma 

case. The looting happened at supermarkets after 

all, not where Zuma was incarcerated. 

Prosecutions obviously do not provide certainty 

against future corruption, but at least the prospect 

of arrest might be a deterrent. One of the biggest 

obstacles to economic recovery is South Africa’s level of 

debt, and that is caused largely by the state electricity 

utility, Eskom, where corruption was rife for years. 

The government’s directory lists 131 stateowned 

entities but there are said to be about 

700 altogether, at various levels of government. 

Entities include the Central Energy Fund, the 

Commission for Conciliation, Mediation and 

Arbitration, the Commission for Employment 

Equity and the Companies and Intellectual 

Property Commission (CIPC) but the three 

biggest, all of which fall under the Department 

of Public Enterprises, are Eskom, South African 

Airways (SAA) and Transnet, with five large 

divisions covering ports, railways and logistics. 

Eskom and SAA are significant drains on the 

country’s finances and getting control of all of 

the country’s SOEs is another major priority. 

At municipal level, the decision by Clover to 

relocate their large cheese factory away from 

11 

SOUTH AFRICAN BUSINESS 2022


The Council for Geoscience is running a passive water remediation pilot project in Mpumalanga. Credit: CGS 

Lichtenberg in the North West to Queensburgh 

in KwaZulu-Natal had everything to do with 

a dysfunctional local government unable to 

supply basic services. If South Africa’s rural 

areas and smaller towns are to thrive, more 

interventions at this level are needed. 

Agriculture was another industry that saw 

some positives during the Covid-19 lockdown. 

Although sectors like wine suffered badly, a 

reported increase in maize exports, as well as 

greater international demand for citrus fruits 

and pecan nuts, helped the industry expand by 

15% (StatsSA). Grain crops such as maize, wheat, 

barley and soya beans are among the county’s 

most important crops. Only rice is imported. 

Wine, corn and sugar are other major exports. 

Basing economic growth on a devaluing 

currency is not always the best long-term method 

of boosting economic growth, but high-value 

agricultural exports and increased numbers of 

high-spending international tourists hold some 

promise for helping to get the South African 

economy back on a growth path. Horticulture in 

particular is seen as holding great potential not 

only for increased earnings, but for creating jobs. 

South Africa’s traditional strength in minerals 

still holds good. Although gold mining is 

declining in volumes (even while prices rise), the 

major investment of Vedanta Zinc International 

in a project in the Northern Cape and Sibanye- 

Stillwater’s acquisition drive in the PGM sector are 

significant economic drivers. Coal and iron ore 

continue to be exported in large volumes through 

the Richards Bay Coal Terminal on the east coast 

and the Port of Saldanha on the west coast. 

Automotive manufacturing and automotive 

components remain vital sectors, with major 

investments by most of the major marques and 

increased exports a feature of recent activity. There 

has been inward investment in recent years, most 

notably by the Beijing Automotive International 

Corporation (BAIC) in the Coega Special Economic 

Zone outside Port Elizabeth. The Tshwane 

Automotive Special Economic Zone (TASEZ) has 

been launched at Silverton in Pretoria. 

A new SEZ has been formally declared in the 

northern part of Limpopo, the Musina-Makhado 

SEZ. The Namakwa SEZ in the Northern Cape is 

awaiting its license, as is the Fetakgomo-Tubatse 

SEZ in eastern Limpopo. ■ 


12


Provinces of South Africa 

A snapshot of South Africa’s nine provinces. 


Eastern Cape 

Capital: Bhisho 

Main towns: Port Gqeberha Elizabeth, (formerly East 

London, Port Elizabeth), Uitenhage, East London, Graaff- 

Reinet, Kariega Mthatha, (formerly Grahamstown 

Uitenhage), 

(Makhanda) 

Graaff-Reinet, Mthatha, Makhanda 

Population: 6 916 200 (2015) 

Area: 168 966km² (13.8% 

of South Africa) 

Premier: 

Lubabalo Oscar Mabuyane (ANC) 

Key sectors: Automotive, 

agriculture, agri-processing, 

agro-processing, 

forestry, finance, retail, tourism, 

renewable energy. 

Infrastructure: Coega Industrial 

Development Zone, East London 

Industrial Development Zone, 

ports of East London, Port 

Elizabeth and Ngqura, airports at 

Port Gqeberha Elizabeth and and East East London. London. 

Notable tourism assets: Addo 

Elephant National Park, Mountain 

Zebra National Park, Wild Coast, 

Jeffreys Bay, National Arts Festival. 

Provincial government website: 

www.ecprov.gov.za 

Eastern Cape Development 

Corporation: www.ecdc.co.za 

Free State 

Capital: Bloemfontein 

Main towns: Welkom, Sasolburg, 

Parys, Kroonstad 

Population: 2 817 900 (2015) 

Area: 129 825km² (10.6% 


Premier: 

Sefora Hixsonia Ntombela (ANC) 

Key sectors: Agriculture, 

agri-processing, agro-processing, chemical 

manufacturing, mining, transport 

and logistics. 

Infrastructure: Maluti-A-Phofung 

Special Economic Zone, Bram 

Fischer International Airport, 

University of the Free State, 

Central University of Technology, 

N8 Corridor. 

Notable tourism assets: Vaal 

River, Gariep Dam, Golden Gate 

Highlands National Park, Cherry 

Festival, Mangaung African 

Cultural Festival (Macufe). 


www.freestateonline.fs.gov.za 

Free State Development 

Corporation: www.fdc.co.za 

Gauteng 

Capital: Johannesburg 

Main towns: Tshwane (including 

(including Pretoria), Ekurhuleni, Pretoria), Ekurhuleni, Vanderbijl- 

Vanderbijlpark, Roodepoort Roodepoort 

Population: 13 200 300 (2015) 

Area: 18 178km² (1.5% 


Premier: 

David Makhura (ANC) 

Key sectors: Financial and banking, 

banking, manufacturing, manufacturing, trade, creative trade, 

creative industries, industries, media. media. 

Infrastructure: OR Tambo 

International Airport, Gautrain, ORT Special 

major Economic universities Zone, Gautrain, and research major 

institutions, universities and large research convention institutions, 

large FNB convention Stadium (Soccer centres, City). 

centres, 

FNB Stadium (Soccer City). 

Notable tourism assets: Cradle of 

Humankind, Notable tourism Apartheid assets: Museum, Cradle of 

Constitution Humankind, Hill, Apartheid Magaliesberg, Museum, 

Soweto Constitution tours, Hill, Dinokeng. Magaliesberg, 

Soweto tours, Dinokeng. 


www.gauteng.gov.za 


Gauteng www.gauteng.gov.za 

Growth and 

Development Gauteng Growth Agency: and Development 

Agency: www.ggda.co.za www.ggda.co.za 

SOUTH AFRICAN BUSINESS 2021 2020 16 20

SPECIAL 



KwaZulu-Natal 

Capital: Pietermaritzburg 

Main towns: Durban, Newcastle, 

Ballito, Port Shepstone, 

Empangeni, Ulundi 

Population: 10 919100 100 (2015) 

Area: 125 755km² (7.7% of 

of South South Africa) Africa) 

Premier: 

Premier: Sihle Zikalala (ANC) 

Sihle Zikalala (ANC) 

Key sectors: Chemicals, dissolving 

Key pulp sectors: manufacture, Chemicals, sugar, dissolving forestry, 

pulp automotive, manufacture, textiles sugar, and forestry, footwear, 

automotive, mining, oil textiles and gas, and logistics. footwear, 

mining, Infrastructure: oil and gas, King logistics. Shaka 

Infrastructure: International King Airport, Shaka Dube 

International 

TradePort, Richards 

Airport, Dube 

Bay Industrial 

TradePort, 

Richards 

Development 

Bay Industrial 

Zone, 

Development 

ports of 

Zone, 

Richards 

ports 

Bay 

of Richards 

and Durban, 

Bay and 

Albert 

Durban, 

Luthuli International 

Albert Luthuli International 

Convention 

Convention 

Centre Complex. 

Centre Complex. 

Notable 

Notable 

tourism 

tourism 

assets: 

assets: 

HluhluweiMfolozi 

HluhluweiMfolozi 

Park, 

Park, 

the 

the 

Drakensberg 

Drakensberg 

mountains, 

mountains, 

iSimangilso 

iSimangaliso 

Wetlands 

Wetland 

Park, 

Park, 

Durban 

Durban 

beaches, 

beaches, 

South 

South 

Coast, 

Zulu 

Coast, 

cultural 

Zulu 

heritage, 

cultural 

historical 

heritage, 

historical battlefields. 

battlefields. 



www.kznonline.gov.za 

www.kznonline.gov.za 

Trade and Investment KwaZulu- 

Trade and Investment KwaZulu- 

Natal: www.tikzn.co.za 

Natal: www.tikzn.co.za 

Limpopo 

Capital: Polokwane 

Main towns: Musina, Ba-Phalabora, 

Ba-Phalabora, Bela-Bela, Steelpoort, Bela-Bela, Tzaneen, 

Steelpoort, Thohoyandou Tzaneen, Thohoyandou 

Population: 5 726 800 (2015) 

Area: 125 755km² (10.2% of 

of South South Africa) Africa) 

Premier: 

Premier: Chupu Stanley Mathabatha (ANC) 

Chupu Stanley Mathabatha (ANC) 

Key sectors: Mining, agriculture, 

Key tourism, sectors: logistics. Mining, agriculture, 

tourism, logistics. 

Infrastructure: Musina-Makhado 

Infrastructure: Special Economic Musina-Makhado 

Zone, 

Special 

Fetakgomo-Tubatse 

Economic Zone, 

Special 

N1 

highway 

Economic 

and 

Zone, 

rail 

N1 

network, 

highway 

new 

and 

Medupi 

rail network, 

power 

new 

station. 

Medupi power 

station. 

Notable 

Notable 

tourism 

tourism 

assets: 

assets: 

Kruger 

Kruger 

National 

National 

Park, 

Park, 

Mapungubwe 

Mapungubwe 

Heritage 

World Heritage 

Site, Makapans 

Site, Makapans 

Valley, 

Marula 

Valley, Marula 

Festival, 

Festival, 

Waterberg 

Waterberg 

Biosphere. 

Biosphere. 



www.limpopo.gov.za 

www.limpopo.gov.zaLimpopo 

Limpopo Economic 

Economic Development Agency: 

Development Agency: 

www.lieda.gov.za 

www.lieda.gov.za 

Mpumalanga 

Capital: Mbombela 

Main towns: Emalahleni, 

Middelburg, 

Middelburg, Sabie, 

Sabie, 

Lydenburg 

Lydenburg 

Population: 

Population: 4 

283 

283 

900 

900 

(2015) 

(2015) 

Area: 76 495km² (6.3% of 

Area: 76 495km² (6.3% 

South Africa) 


Premier: 

Refilwe Premier: Mtshweni-Tsipane (ANC) 

Refilwe Mtshweni-Tsipane (ANC) 

Key sectors: Agriculture, forestry, 

mining, steel manufacturing, 

petrochemicals, 

Key sectors: Agriculture, 

pulp and 

forestry, 

paper, 

power mining, generation, steel manufacturing, tourism. 

petrochemicals, pulp and paper, 

Infrastructure: power generation, Nkomazi tourism. Special 

Economic Infrastructure: Zone, Nkomazi Mbombela Special 

International Economic Zone, Fresh Mbombela Produce 

Market, International Maputo Fresh Development 

Produce 

Corridor, Market, Maputo Kruger Development 

Mpumalanga 

International Corridor, Kruger Airport. Mpumalanga 

International Airport. 

Notable tourism assets: Kruger 

National Park, Blyde River Canyon, 

Canyon, Barberton Barberton Makhonjwa Makhonjwa Mountains 

Mountains (a UNESCO World (a UNESCO Heritage World Site). 

Heritage Site). 


Provincial www.mpumalanga.gov.za 

government website: 

www.mpumalanga.gov.za 

Mpumalanga Economic Growth 

Mpumalanga Agency: www.mega.gov.za 

Economic Growth 

Agency: www.mega.gov.za 

21 

17 SOUTH AFRICAN BUSINESS 2021 

SOUTH AFRICAN BUSINESS 2020 

SOUTH AFRICAN BUSINESS 2022 14



Northern Cape 

Northern Cape 

Capital: Kimberley 

Capital: Main towns: Kimberley Douglas, Upington, 

Main De Aar, towns: Port Nolloth, Douglas, Colesberg Upington, 

De Aar, Port Nolloth, Colesberg 

Population: 1 185 600 (2015) 

Population: Area: 372 889km² 1 185 600 (30.5% (2015) of 

Area: South 372 Africa) 889km² (30.5% 


Premier: 

Premier: Dr Zamani Saul (ANC) 

Dr Zamani Saul (ANC) 

Key sectors: Agriculture, mining, 

Key renewable sectors: energy, Agriculture, astronomy. mining, 

renewable energy, astronomy. 

Infrastructure: Upington Special 

Economic Zone, Sol Plaatje 

Infrastructure: University, Vaalharts Upington Irrigation Special 

Economic Scheme, Square Zone, Kilometre Sol Plaatje Array 

University, telescope project, Vaalharts Namakwa Irrigation 

Scheme. Special Economic Zone 

(proposed). 

Notable tourism assets: Six 

Notable national tourism parks including assets: Six the 

national Kgalagadi parks Transfrontier including Park, the 

Kgalagadi Orange River, Transfrontier spring flower Park, 

Orange displays, River, diamond spring routes. flower 

displays, diamond routes. 


www.northern-cape.gov.za 

Department of Economic 

Development and Tourism: 

www.northern-cape.gov.za/dedat 

North West 

North West 

Capital: Mahikeng 

Capital: Main towns: Mahikeng Klerksdorp, 

Main Rustenburg, towns: Klerksdorp, Brits, Potchefstroom 

Rustenburg, Brits, Potchefstroom 

Population: 3 707 000 (2015) 

Area: 104 882km² (8.6% of 

Population: South Africa) 3 707 000 (2015) 

Area: 104 882km² (8.6% 


Premier: 

Premier: Bushy Maape Professor (ANC) Tebogo Job 

Mokgoro (ANC) 

Key sectors: Mining, agriculture, 

Key agri-processing, sectors: Mining, automotive agriculture, 

agri-processing, components. automotive 

components. 

Infrastructure: Hartbeespoort 

Infrastructure: Dam, Pelindaba Hartbeespoort 

nuclear research 

Dam, unit, North Pelindaba West nuclear University, research 

unit, Bakwena North Platinum West University, Highway. 

Bakwena Platinum Highway. 

Notable tourism assets: Sun City, 

Mmbatho Palms Hotel Casino 

Notable Convention tourism Resort, assets: Pilanesberg Sun City, 

Mmbatho National Park, Palms 18 Hotel luxury Casino lodges in 

Convention Madikwe Game Resort, Reserve. Pilanesberg 

National Park, 18 luxury lodges in 

Madikwe Game Reserve. 


Provincial www.nwpg.gov.za government website: 

www.nwpg.gov.za 

North West Development 

North Corporation: West Development 

www.nwdc.co.za 

Corporation: www.nwdc.co.za 

Western Cape 

Western Cape 

Capital: Cape Town 

Capital: Main towns: Cape Stellenbosch, 

Town 

Main George, towns: Plettenberg Stellenbosch, Bay, Beaufort 

George, West, Oudtshoorn, Plettenberg Worcester, Bay, Beaufort 

West, Malmesbury Oudtshoorn, Worcester, 

Malmesbury 

Population: 6 200 100 (2015) 

Population: Area: 129 462km² 6 200 100 (10.6% (2015) of 

Area: South 129 Africa) 462km² (10.6% 


Premier: 

Premier: Alan Winde (DA) 

Alan Winde (DA) 

Key sectors: Agriculture, agriprocessing, 

sectors: wine Agriculture, and grapes, agri- 

Key 

processing, financial services, wine and manufacturing, grapes, 

financial tourism, oil services, and gas, manufacturing, 

boatbuilding. 

tourism, Infrastructure: oil and Ports gas, of boatbuilding. Cape Town, 

Infrastructure: Saldanha and Mossel Ports of Bay, Cape Mossgas 

Town, oil-to-gas Saldanha refinery, and Cape Mossel Town Bay, 

Mossgas International oil-to-gas Airport, refinery, Cape Town Cape 

Town International International Convention Airport, Centre, Cape 

Town Koeberg International nuclear power Convention station. 

Centre, Notable Koeberg tourism nuclear assets: Table power 

station. Mountain, Garden Route National 

Notable Park, Karoo tourism National assets: Park, Table West 

Mountain, Coast National Garden Park, Route Kirstenbosch National 

Park, Botanical Karoo Gardens, National Cape Park, Point, West 

Coast V&A Waterfront, National Park, Plettenberg Kirstenbosch 

Botanical Bay, Route Gardens, 62, Zeitz Cape Museum Point, of 

V&A Contemporary Waterfront, Art. Plettenberg 

Bay, Route 62, Zeitz Museum of 

Contemporary Provincial government Art. website: 

www.westerncape.gov.za 

Provincial Wesgro: www.wesgro.co.za 

government website: 

www.westerncape.gov.za 

Wesgro: www.wesgro.co.za 

15 SOUTH AFRICAN BUSINESS 2022 

SOUTH AFRICAN BUSINESS 2021 2020 18 22

Special Economic Zones 

Several SEZs are focussing on green energy and green technology. 

A 

key component of the strategy to boost 

the value of South African mineral and 

agricultural products is to develop 

infrastructure where manufacturing can 

take place, namely Special Economic Zones (SEZs) 

and industrial parks. 

South Africa has 12 registered SEZs and several 

more are in the planning or registration phase. 

National and provincial incentives are in place to 

attract investors to the SEZs, with the added benefits 

of existing infrastructure and access to companies 

relevant to an investor’s value chain. A 2021 report 

by the Centre for Development and Enterprise has 

suggested that the zones are not sufficiently special, 

and that experimentation with greater flexibility in 

terms of labour regulations would reap dividends. 

The CDE notes that if companies were exporting, 

the issue of competing with local concerns would 

not arise. The CDE has suggested the Coega SEZ as 

the site for such an experiment. 

Each province has been allocated SEZs that 

play to regional strengths. Limpopo has two 

SEZs, both of which aim to use the province’s rich 

mineral resource as a base for other economic 

activities. One is already attracting investors and 

the other is in the process of being registered. 

The Musina-Makhado SEZ (MMSEZ) in the far 

north and the Fetakgomo-Tubatse SEZ (FTSEZ) in 

the east are central to the strategy of expanding 

Limpopo’s manufacturing capacity. Building 

new industrial parks and reviving existing areas 

support the same goal. 

As of February 2020, Shaanxi CEI Investment 

Holdings had committed to a $5-billion investment 

in a vanadium and titanium smelter project at 

the MMSEZ and a further $1.1-billion had been 

pledged from other sources. The first-phase focus 

is on energy and metallurgical processes but agroprocessing, 

logistics and general manufacturing 

are expected to follow. 

The FTSEZ is located in the heart of the one 

of the most mineral-rich localities on earth, the 


16


• Auto-catalysts from PGMs. 

• Components for vehicle and trucking industry 

(and assembly of the same). 

Investors in education and skills are invited to 

collaborate with MERSETA, the Limpopo Economic 

Development Agency (LEDA) and companies in the 

mining sector. 

GRI Towers South Africa is making wind turbine towers 

in the Atlantis SEZ, a green technology hub. Credit: Gestamp 

Renewable Industries 

eastern limb of the Bushveld Igneous Complex 

which includes the Merensky reef. Dozens of 

mining operations are in the Sekhukhune District, 

all of which need mining supplies. A Mining Input 

Suppliers Park has been developed and a budget of 

R20-million has been allocated for the integration of 

that facility into the SEZ. 

The existence of the mines and the supplier 

park will be leveraged to create opportunities to 

industrialise the manufacturing of these supplies 

and also to beneficiate the mined product. The 

broader aim is to build the regional economy 

with strong upstream and downstream links in 

the mining value chain, particularly with regard to 

platinum group metals (PGMs). 

Within the Fetakgomo-Tubatse SEZ there are 

opportunities for investors in the manufacture of: 

• Vehicle components designed for green 

hydrogen fuel cells and electrolytes energy 

from PGMs. 

• Vehicle batteries and related components. 

Green focus 

One of the unique selling propositions of the FTSEZ 

is in its potential as a hub for green technology, 

both in terms of energy generation and in terms 

of manufacturing. It is being billed as a “Centre of 

Excellence on advanced energy technology”. 

Several minerals and metals mined in the area 

are vital components for the manufacture of items 

that the world needs to transition away from a fossilfuel 

economy to a greener, renewable future. This 

includes hydrogen fuel cells and battery technology. 

A pre-feasibility study related to battery minerals is 

underway at the Burgersfort Nickel Project. 

Another SEZ that is tackling the challenges of 

the green economy is the Atlantis SEZ, about 40km 

north of Cape Town. 

The focus at Atlantis is green manufacturing such 

as solar panels, wind turbines and battery storage. 

With the South African automotive manufacturing 

sector heavily dependent on exports, it will have to 

comply with tougher environmental requirements 

being implemented in Europe, the US and the UK. 

The year 2030 has been designated as the last for the 

petrol car in Europe. Atlantis intends to be the site for 

the manufacture of the components that will cater 

to the new market for cleaner vehicles. 

Two of the earliest investors at Atlantis SEZ 

are Kaytech, manufacturers of construction 

sheeting made out of recycled plastic, and GRI 

Towers South Africa, a subsidiary of the giant 

international renewable energy company, 

Gestamp Renewable Industries. 

Making industrial parks themselves greener is 

the focus of a programme of the National Cleaner 

Production Centre (NCPC) in partnership with 

the National Department of Trade, Industry and 

Competition (the dtic) and the United National 

Industrial Development Organisation (UNIDO). 



The Glencore Magareng Chrome Mine opened in 2011 and is one of the many mines in the vicinity of 

the Fetakgomo-Tubatse SEZ. Credit: Glencore 

The Global Eco-Industrial Parks Programme 

(GEIPP) aims to create eco-industrial parks out of 

older, dirtier facilities. The first three parks to be 

targeted are the state-owned parks in East London 

(ELIDZ) and in the Free State (Phuthaditjhaba 

Industrial Park) and Gauteng (Ekandustria). 

The key components of the GEIPP are: 

• Park management services and governance. 

• Resource-efficient and cleaner production. 

• Industrial and infrastructure synergies. 

• Healthy and integrated workforce and industryurban 

synergies. 

• Special planning and zoning. 

Areas of focus 

Fairly near to Atlantis is the Saldanha Bay SEZ, where 

the focus is oil and gas and marine engineering and 

related activities. As of October 2021, the SEZ had 35% 

occupancy and has launched a facility to support 

small, medium and micro-enterprises (SMMEs) in 

terms of workspace and Internet connectivity. 

In the Pretoria area, already home to several 

Original Equipment Manufacturers (OEMs), the 

Tshwane Automotive Special Economic Zone 

(TASEZ) has been launched. It is a joint project 

of the Gauteng Province, the Department of 

Trade, Industry and Competition, and the City of 

Tshwane. The implementing agent is the Coega 

Development Corporation (CDC), the developer 

and operator of the Coega Special Economic Zone. 

Coega SEZ is at the Port of Ngqura near Gqeberha 

(formerly Port Elizabeth) in the Eastern Cape and it too 

has an automotive component, recently strengthened 

by the large investment of the Beijing International 

Automobile Corporation (BIAC). East London’s 

Industrial Zone has many companies that sell to and 

service the nearby Mercedes-Benz plant while both 

coastal SEZs have a strong suite in logistics and are 

planning expanded aquaculture parks. 

Energy is a key infrastructural requirement for 

the growth of any economy, and SEZs are playing 

a role. The Coega SEZ has been named as the site 

for one of two liquefied natural gas (LNG) plants to 

be built (if partners can be found) in terms of the 

national gas-to-power plan. 

The Richards Bay Industrial Development 

Zone (RBIDZ) in KwaZulu-Natal is the other site 

designated for a LNG plant, with the capacity 

planned for 2 000MW. RBIDZ is also the location of a 

new biomass plant. 

The OR Tambo SEZ in Gauteng underscores 

Ekurhuleni’s strengths in manufacturing and 

logistics. The OR Tambo SEZ has launched the 

biggest food processing operation in the southern 

hemisphere (and the world’s second-largest 

refrigeration plant). With a special focus on exportoriented 

value-added industry, the OR Tambo SEZ 

leverages its connection to the country’s busiest 

airport. The focus of this SEZ is on agro-processing, 

jewellery manufacturing and mineral beneficiation 

as well as the development of hydrogen fuel cell 

technology. The SEZ is a subsidiary of the Gauteng 

Growth and Development Agency (GGDA). ■ 


18

10 REASONS 

WHY YOU SHOULD INVEST IN SOUTH AFRICA 

01. 

HOT EMERGING 

MARKET 

Growing middle class, affluent consumer 

base, excellent returns on investment. 

02. 

MOST DIVERSIFIED 

ECONOMY IN AFRICA 

South Africa (SA) has the most industrialised economy in Africa. 

It is the region’s principal manufacturing hub and a leading 

services destination. 

LARGEST PRESENCE OF MULTINATIONALS 

ON THE AFRICAN CONTINENT 

SA is the location of choice of multinationals in Africa. 

03. 

Global corporates reap the benefits of doing business in 

SA, which has a supportive and growing ecosystem as a 

hub for innovation, technology and fintech. 

05. 

FAVOURABLE ACCESS TO 

GLOBAL MARKETS 

ADVANCED FINANCIAL SERVICES 

& BANKING SECTOR 

SA has a sophisticated banking sector with a major 

footprint in Africa. It is the continent’s financial hub, 

with the JSE being Africa’s largest stock exchange by 

market capitalisation. 

The African Continental Free Trade Area will boost 

intra-African trade and create a market of over one 

billion people and a combined gross domestic product 

(GDP) of USD2.2-trillion that will unlock industrial 

development. SA has several trade agreements in 

place as an export platform into global markets. 

YOUNG, EAGER LABOUR FORCE 

09. 

SA has a number of world-class universities and colleges 

producing a skilled, talented and capable workforce. It 

boasts a diversified skills set, emerging talent, a large pool 

of prospective workers and government support for training 

and skills development. 

07. 

04. 

06. 

08. 

PROGRESSIVE 

CONSTITUTION 

& INDEPENDENT 

JUDICIARY 

SA has a progressive Constitution and an independent judiciary. The 

country has a mature and accessible legal system, providing certainty 

and respect for the rule of law. It is ranked number one in Africa for the 

protection of investments and minority investors. 

ABUNDANT NATURAL 

RESOURCES 

SA is endowed with an abundance of natural resources. It is the leading producer 

of platinum-group metals (PGMs) globally. Numerous listed mining companies 

operate in SA, which also has world-renowned underground mining expertise. 

WORLD-CLASS 

INFRASTRUCTURE 

AND LOGISTICS 

A massive governmental investment programme in infrastructure development 

has been under way for several years. SA has the largest air, ports and logistics 

networks in Africa, and is ranked number one in Africa in the World Bank’s 

Logistics Performance Index. 

10. 

SA offers a favourable cost of living, with a diversified cultural, cuisine and 

sports offering all year round and a world-renowned hospitality sector. 

EXCELLENT QUALITY 

OF LIFE 

Page | 2 

19 

SOUTH AFRICAN BUSINESS 2020

MESSAGE 

Limpopo’s Special Economic 

Zones to drive industrialisation 

MEC for Economic Development, Environment and Tourism Thabo Mokone 

invites investors to be part of an exciting journey to creating a green energy 

supply to bolster localised manufacturing. 

MEC Thabo Mokone 

The Provincial Government of Limpopo 

invites investors to partner with us in 

developing a low-carbon green economy 

while at the same time enhancing energy 

security and developing local industries. 

Special Economic Zones (SEZs) are the key 

tools within our Economic Reconstruction plans to 

ensure that we create sustainable job opportunities 

for all. This applies to both the Fetakgomo-Tubatse 

SEZ as well as the Musina Makhado SEZ. 

True development is about people 

When South Africa achieved democracy nearly 

three decades ago, who would have dreamed of a 

Special Economic Zone in the Steelpoort area. But 

today, a Special Economic Zone is our new reality. 

The proposed FTSEZ is gearing up to become a 

centre of excellence for green energy manufacturing, 

agro-processing and mineral beneficiation. The SEZ 

is positioned to be a game-changer in shaping and 

adding momentum to the industrialisation growth 

path as espoused in the socio-economic recovery 

plan of Limpopo Province. 

It is strategically located in the industrial 

hub of Steelpoort between two huge mining 

establishments, the Samancor smelter and the Lion 

ferrechrome smelter, which are strategic landmarks 

for the establishment of the SEZ. 

The Fetakgomo-Tubatse SEZ will not only play 

the role of a consumer of hydrogen in the Special 

Economic Zone but will strive to become a producer 

of hydrogen and other clean energy technologies. 

In Limpopo we see the Hydrogen Economy 

as a potential game-changer to reindustrialise the 

provincial economy. 

For the Fetakgomo-Tubatse SEZ, the Hydrogen 

Valley platform has the potential to drive the demand 

for mining inputs supplies, thereby creating an 

opportunity for large-scale industrialisation for 

both the manufacturing of mining inputs and the 

beneficiation of mining outputs. 

The efforts which we have put into Fetakgomo- 

Tubatse SEZ have so far led to us acquiring: 

• 1 220ha of land. 

• An EIA process is currently underway. 

• The application for a Record of Decision (RoD) 

process has commenced. 

• The SEZ Master Plan (Development Framework) and 

layout is complete with full infrastructure designs 

and costs in readiness for infrastructure roll-out. 

• 16 companies have shown a keen interest in the 

SEZ by signing letters of intent (combined investment 

value of approximately R38-billion). 

• Four companies have shown a readiness to locate 

inside the SEZ by 2022. A due diligence process 

is underway. 

We envisage creating 8 000 jobs in the short 

term and 20 000 jobs in 10 years. The main objective 

of this SEZ is to develop a low-carbon green 

economy which will offer promising opportunities 

not only to fight climate change, but to enhance 

energy security and develop local industries. 

The strategic aim of the SEZ is to develop a green 

primary energy supply for localised manufacturing 

of both upstream and downstream activities of the 

platinum group metals and chrome value chains. 

Our passion in ensuring operational Special 

Economic Zones within local municipalities as well 

as working with various private partners is a clear 

indication that we are committed to “Building better 

communities together”. ■

Deputy Minister oversight 

visit highlights SEZ potential 

The Fetakgomo-Tubatse Special Economic Zone will establish a centre of excellence 

for green energy technology and mineral beneficiation as well as manufacturing of 

mining equipment. 

The Deputy Minister of Trade, Industry and 

Competition, Mr Fikile Majola, conducted 

an oversight visit to the proposed 

Fetakgomo-Tubatse Special Economic 

Zone in Steelpoort, Limpopo, in October 2021. 

Deputy Minister Majola was joined by the MEC for 

Economic Development, Environment and Tourism 

in Limpopo, Mr Thabo Mokone, MEC for Finance in 

Limpopo, Mr Seaparo Sekwati, the Executive Mayor 

of Sekhukhune District Municipality, Councillor 

Stanley Ramaila, and the Acting Mayor of Fetakgomo- 

Tubatse Local Municipality, Councillor Hlatsoayo. 

The purpose of the oversight visit was to 

assess progress registered in the implementation 

of the proposed Special Economic Zone (SEZ) 

project and to meet with potential private sector 

partners. According to Mr Majola, the visit was part 

of a consultative process on the SEZ Programme. 

Information on the new approach in the 

implementation of the Programme was also shared. 

“This new approach encourages collaborative 

engagements through which the implementation of 

the SEZ Programme is aligned with national, provincial 

and local objectives, as well as planning strategies to 

maximise synergies and promote cooperation. This 

will result in provinces and municipalities benefiting 

from strong National Government support in areas of 

limited capacity,” said Mr Majola. 

He added that the South African Government 

was seeking to transform the economy into a 

globally competitive economy, built on the full 

potential of all citizens and regions. 

“To achieve this, the government is driving a 

robust industrialisation agenda supported by Spatial 

Industrial Development Programmes such as the 

SEZ Programme. Our department is driving the SEZ 

Programme as one of the strategic interventions to 

catalyse economic and industrial development in 

the country,” he added. ■ 

Solly Kgopong, Executive Manager 

Solly Kgopong is the Executive 

Manager of the Fetakgomo- 

Tubatse SEZ. Before joining 

the Department for Economic 

Development, Environment and 

Tourism, he was General Manager 

of Absa Bank. His work experience 

started as Business Analyst at Trade 

and Investment Limpopo until he became Executive 

Manager Strategic and Economic Planning. During this 

period, Solly was a part-time lecturer at the University 

of Limpopo. A USA-Mandela Scholar Alumni, Solly 

holds a MSc in Economics degree from the Ohio State 

University. He was recently seconded to Head the 

Fetakgomo-Tubatse SEZ Project Management Unit by 

the Provincial Government. 

Contact details 

Tel: 082 455 4220 

Email: Solly.Kgopong@lieda.co.za 

Bunjiwe Gwebu, Project Executive 

Bunjiwe Gwebu is the Project Executive 

for the Fetakgomo-Tubatse Special 

Economic Zone, having joined the 

Limpopo Economic Development 

Agency in 2014 when the Special 

Economic Zones programme was 

being rolled out nationally. She is an 

Economic Development Specialist who 

holds a Master’s in Development Studies from the University 

of KwaZulu-Natal. She has held positions at executive and 

senior management levels in government and nongovernmental 

institutions such as eThekwini Municipality, 

Slum Dwellers International, uTshani Fund and the Housing 

Development Agency where she was responsible for 

strategy, programme planning and management, 

implementation and monitoring and evaluation. 


Tel: 076 521 5077 

Email: Bunjiwe.Gwebu@lieda.co.za

SEZ project pipeline 

A globally recognised Centre of Excellence for Green Energy Technology and Mineral Beneficiation 

Tubatse SEZ – Getting Platinum Moving- A world centre of excellence 

for PGMs.” 

Fetakgomo-Tubatse SEZ, as depicted in the SEZ Master Plan. 

DSI | Turner & Townsend | LEDA 

4 

08 November 2021 

The Fetakgomo-Tubatse Special Economic 

Zone received from the Limpopo 

Department of Economic Development, 

Environment and Tourism an allocation of 

R35-million (FY 2021/22) which was earmarked for 

the following activities and projects: District Skills 

Audit, environmental impact assessments (EIAs), 

township establishment (land rezoning), engineering 

designs and costing for the perimeter fence, site 

clearance, Eskom cost estimation and acceptance of 

quote, engineering designs for an Eskom switching 

station, water allocations (assessment of demand per 

industry), an Implementation Readiness Study and 

engineering designs. 

The whole R35-million is committed to the 

enlisted projects. 

Existing and current projects in the District 

Project Value Responsible institution Status 

Steelpoort Wastewater 

Treatment Works 

Steelpoort Water 

Treatment Works 

Ga-Malekana Water Treatment 

Works upgrade 

R70-million DBSA/Sekhukhune District Municipality Existing WTW on private land. 

Construction at Steelpoort. 

R65-million DBSA Complete. 

R121-million Sekhukhune District Municipality Technical report approved; 

planning stage. 

R37 and R555 main roads R2-billion SANRAL Underway. 

Steelpoort railway siding Not given Transnet Initiation phase. 

Regional External Master Plan R1.6-million Sekhukhune District Municipality Initiation phase. 

Steel Bridge upgrade R70-million Roads Agency Limpopo and mining 

companies 

Initiation phase. 

SEZ human settlement scoping report Not given CoGHSTA/HDA Underway. 


22

Why businesses locate 

in the FT-SEZ 

structure supporting the SEZ 

Outstanding incentives and world-class facilities. 

n cubic 

iping 

The 348-million cubic metre capacity De Hoop Dam 

ensures reliable water supply for investors in the Special 

Economic Zone. 

The Fetakgomo-Tubatse SEZ provides 

a secure business environment 

17 

and is 

designing a world-class manufacturing and 

logistics platform that will be positioned to 

support transportation efficiencies through road, rail 

and heliport connectivity to ports and border posts. 

As part of the SEZ Master Plan, the 

environmental impact assessment (EIA) is expected 

to be ready for 2022. 

A number of infrastructure new builds and 

upgrades are underway, including: 

• Security and site clearance 

• Extension of rail link to the SEZ industries and to 

the Musina-Makhado SEZ (Beit Bridge) 

• Electricity substation designs underway for 

substation 

• Upgrading of R37 and R555 roads 

• Building of new steel bridge 

• Engineering works for piping water from the 

De Hoop Dam to the SEZ site 

Why businesses locate to the FTSEZ 

• Enabling infrastructure and warehouses 

• Close proximity to mining operations 

• Carbon credits 

• Reduced carbon tax 

• Reliable and low-carbon green energy 

• Global leadership in production of chrome and 

huge resources of platinum group metals 

• Land and security 

• State-of-the-art top infrastructure 

• Water provision 

• Reliable road and rail network 

Generic SEZ incentives 

• Vat and customer relief 

• Employment tax incentives 

• Building allowance 

• Reduced corporate income tax (15% corporate tax) 

• 12i tax allowance and incentives 

• One Stop Shop Facility 

Distances • to Infrastructure key points (water, roads and elec 

• Port • of Maputo 11419 (Mozambique) m 2 of industrial 380km space is availa 

• Port • of Richards 130 000 Bay m600km 

2 of developable land is av 

• Musina Beit Bridge Border Post 400km 

The Mining Inputs Supplier Park has more than 11 000m² of 

industrial space available now with a further 130 000m² of land 

available for development and ready for top structures to be 

installed. Water, roads and electricity are in place. 

For more information contact: 

Fetakgomo –Tubatse SEZ PMU 

Address: Southern Gateway Extension 4, N1 Main 

Road, Polokwane, Limpopo 

Tel: +27 82 455 4220 and +27 76 521 5077 

Limpopo Economic Development 

Agency (LEDA) 

Address: PO Box 760, Enterprise House, 

Lebowakgomgo 0737 

Tel: +27 15 633 4700 | Email: info@lieda.co.za 

Website: www.lieda.co.za 


Prime location in 

Limpopo’s mining LOCATION hub OF THE SEZ 

Special Economic Zone will catalyse economic growth. 

DSI | Turner & Townsend | LEDA 

TUBATSE 

November 2021 

The proposed Fetakgomo-Tubatse SEZ 

FETAKGOMO-TUBATSE 

(FTSEZ) is located 

SPECIAL 

in the south-east of 

NOMIC ZONE/INDUSTRIAL the Limpopo Province HUBof South Africa. 

It is hosted by the Fetakgomo -Tubatse 

Municipality in Sekhukhune District and is located 

tse Special Economic Zone is hosted by the Fetakgomotse 

Municipality in the Sekhukhune District and is located 

within the Bushveld Igneous Complex (Eastern 

Limb), which hosts the well-known Merensky Reef 

in the Bushveld Igneous Complex (Eastern Limb), which 

in the Limpopo Province. 

s the well-known Marensky reef in the Limpopo Province. 

The area boasts one of the highest 

demand for concentrations mining input supplies of rich mineral created resources an opportunity in the 

rge-scale world industrialization and is a global for both leader the manufacturing of platinum group of 

ng inputs metals and the and beneficiation chrome resources, of mining outputs. hosting The over aim 40 

support a mining broader-based operations industrialization which also includes growth vanadium, path, 

nced regional iron ore industrial and selected growth battery and development minerals. The of more FTSEZ 

petitive and is projected productive to regional be a catalyst economies for economic with strong growth, updownstream 

industrialisation links strategic and value mineral chains, beneficiation especially in by 

S. localising the various links of the value chain, both 

upstream and downstream. 

The proposed FTSEZ forms part of the South 

ha of land African has been Government’s identified for SEZ the Programme development which of this is 

-of-the-art aiming Centre to of enhance Excellence the on country’s advanced manufacturing 

energy 

nology 

and export capabilities 

and attract foreign direct 

investment. Anchored in the 

Limpopo Development Plan 

(LDP), the FTSEZ is positioned 

and designed to be a top 

investment destination for 

companies seeking to be at 

the forefront of pushing the 

green energy “Just Transition” 

frontier outward, towards 

communities, towards local 

and international firms and 

markets seeking to build lowcarbon 

economies. 

The priority industries in the 

FTSEZ will enhance local 

manufacturing capacity and 

FETAKGOMO TUBATSE SEZ/INDUSTRIAL contribute to HUB a low-carbon 

green economy which will offer socio-economic 

opportunities (for jobs and small businesses), not 

only to fight climate change, but to enhance energy 

security and develop local industries over the next five 

to 10 years. 

The FTSEZ is being developed in a quadripartite 

partnership between the Department of Trade 

Industry and Competition (dtic), the Limpopo 

Provincial Government, Sekhukhune District 

Municipality and Fetakgomo-Tubatse Municipality. ■ 


24

Targeted commodity 

clusters at Fetakgomo-Tubatse SEZ 

Varied investment opportunities. 

Identified Cluster Opportunities 

Agro-processing 

Development of ICT infrastructure 

Mineral Beneficiation 

• Chrome, platinum group metals, iron ore and 

magnetite 

• Development of platinum refinery 

Green Energy 

• Production of solar and biomass energy 

• Hydrogen energy from fuel cells as part of 

the South African Hydrogen Valley led by the 

Department of Science and Innovation 

Manufacturing 

• Production and refurbishment of batteries 

• Auto-catalysts 

• Green energy automotive components and 

electric vehicles (manufacture and assembly) 

• Trucking components 

• Mining machinery, equipment and components 

FTSEZ Implementation Approach 

The Tubatse Hydrogen Valley and Mineral 

Beneficiation Journey 

Phase 1: West of R555: Integrate the 36ha 

Mining Integrated Supply Park (MISP), set up top 

infrastructure, fence and clear 280ha site. 

Anchor Investments: Input manufacturing suppliers 

and green vehicle components cluster. 

Phase 2: East of R555: Clear site and fence the 980ha 

site and provide bulk services and begin housing 

development. 

Anchor investments: Renewable energy companies, 

smelter and refinery and chrome products. 

Phase 3: Design and build a logistics hub for export 

markets. Just-on-time delivery and efficiencies. 

Anchor investments: Logistics Hub Station with a 

strong 4IR platform. 

Green automotive technology is a key focus of the FTSEZ. 

Construction Phases of FTSEZ 

The Fetakgomo-Tubatse SEZ will cover a total area 

of 1 220ha of land. Phase 1 consists of 316ha which 

is reserved mainly for a mix of light and heavy 

industrial use and other hydrogen energy related 

uses, while Phases 2 and 3 will be developed in line 

with market demands and will include: 

• Renewable energy 

• Heavy industry 

• Additional light industry space 

• Mixed use and residential 

More than six tenants have already committed to 

setting up operations for Phase 1 implementation 

in chrome-related beneficiation, hydrogen energy 

components assembly, electric vehicles, solar 

energy and pharmaceuticals. ■ 

Smelting operations will serve to beneficiate the many 

minerals found in the area. Credit: Amplats 


Green technology manufacturers 

welcome at Atlantis SEZ 

Business Development Executive Jarrod Lyons explains how the ASEZ offers a 

great location to trade with Africa and to benefit from South Africa’s renewable 

energy procurement programme. 

The Atlantis Special Economic Zone (ASEZ) 

for green technologies is located on the 

West Coast of South Africa, in the Cape 

Town Metro. The zone is dedicated to 

manufacturing and provision of services in the 

green technology space. Wind turbines, solar 

panels, insulation, biofuels, electric vehicles, 

materials recycling and green building materials are 

examples of green technology that are welcomed. 

The Atlantis Special Economic Zone SOC 

(ASEZCo) has undertaken over the past few 

years to establish itself as a globally-competitive 

company operating state-of-the-art infrastructure 

in Cape Town. The ASEZCo is equipped to assist 

both local and foreign investors in landing their 

green technology manufacturing investment in a 

seamless, well-managed process which eliminates 

unnecessary red tape and promotes a fast-tracking 

to market. 

As a value proposition, the ASEZ offers 

Greentech manufacturers benefits from colocation 

and clustering. Our partners’ competitive 

advantage rests on making more productive use 

of inputs, which requires continual innovation. We 

achieve this through the Living Lab by providing 

our partners with a platform to share knowledge, 

resources and outputs in a manner which 

promotes profitability through resource efficiency. 

Our established partnerships with tertiary 

institutions contribute to our ability to provide 

our partners with well-curated skills driven 

by their needs, as well as the needs of a 

transitioning, traditional, coal-based economy 

to a green economy. 

The ASEZCo has enterprise development 

initiatives in place, which provide our partners 

with a suitable list of entities from which they 

can procure goods and services. Integration 

into our Living Lab bodes well for new partners, 

as we assist them in identifying collaborative 

opportunities with existing partners and 

facilitating engagements, which will lead to an 


26

ithout 

ff line 

FOCUS 

improvement in the overall triple-bottom-line of all 

partners located in the ASEZ. 

New partners sought 

The Business Development Unit of the ASEZCo 

has placed a tremendous amount of its marketing 

energy in the community-focused communications 

and events for the direct benefit of the community. 

There comes a time, however, when community 

expectations need to be met. This can only be 

done through the landing of new and expansion of 

existing partners in the ASEZ with the view to create 

jobs and employment opportunities for the broader 

SMME network in the Atlantis and surrounding areas. 

The Business Development Unit has taken the 

stance of a more commercially-focused entity by 

reaching out to specifically targeted investors who 

want to benefit from integrating into the Living Lab 

of the ASEZ. 

The unit benefits from expertise in the green 

economy and leverages relationships with 

organisations like Wesgro and GreenCape to 

remain relevant in green economy investment 

promotion. With ASEZCo’s comprehensive 

understanding of Greentech value chains, the unit 

has the ability to identify partners with capabilities 

of servicing the needs of the South African and 

African Greentech markets. 

Servicing the growing African market with 

green technologies which contribute to sustainable 

infrastructure development is a superb way in 

which SEZs can make a difference. The ASEZ for 

green technology manufacturing is perfectly suited 

to enhance trade opportunities with Africa and the 

rest of the globe as it is well located on the southern 

tip of Africa close to two ports with capabilities 

of landing and exporting bulk goods, as well as 

containers filled with sub-components. 

With the awarding of 25 projects in Round 

5 of the REIPPPP, and the stringent localisation 

requirements associated with the REIPPPP, the 

ASEZ is well positioned to capitalise on component 

manufacturing opportunities to service the IPP 

projects recently awarded. The ASEZCo is utilising 

this market opportunity to coordinate a collaborative 

sales pitch to partners which can establish their 

manufacturing facilities in the ASEZ. 

This collaborative approach encompasses 

InvestSA (the dtic), Wesgro, InvestCT and GreenCape 

and has demonstrated significant success in the 

past. We continue to engage with potential partners 

with our ASEZ and are adamant that we will achieve 

significant success in this regard over the next 12 to 

18 months. ■ 

CONTACT 

For additional information on investing in Atlantis 

Special Economic Zone and understanding the 

Greentech landscape in South Africa, please contact 

Jarrod Lyons at jarrod@atlantissez.co.za 


FOCUS 

Harnessing the green economy 

for growth and increased 

job opportunities 

The Atlantis SEZ has dedicated Infrastructure and Integrated Ecosystem (IES) 

teams. Integrated Ecosystem Executive Ellen Fischat explains how they help to 

create shared value. 

The IES team, left to right: Christelle Brown, Ellen 

Fischat (Integrated Ecosystem Executive), Michael 

Webster, Ursula Wellmann, Charlotte Perang and 

Florenchia Solomons. 

The Atlantis Special Economic Zone 

Company (ASEZCo) for green technologies 

aims to harness the green economy for 

growth and increased job opportunities. 

It does this by driving sustainable, socioeconomic 

development and job creation, while 

positioning itself as a world-class eco-industrial 

park through its Living Lab. A Living Lab (LL), in 

contrast to a traditional laboratory, operates in a 

real-life context with a user-centric approach. The 

physical or organisational boundaries of a Living 

Lab are defined by purpose, scope and context. 

The scope, objectives, activities, resources and 

degree of participation and boundaries of a living 

laboratory are open for definition by its participants. 

These participants consist of multi-disciplinary 

stakeholders, from public to private sector, tertiary 

to research institutions and most importantly 

the local community and civic society. Industries 

adopting Living Labs share an approach to finding 

innovative solutions to open and real-world 

contexts, as opposed to closed laboratory settings. 

The task of convening and connecting the 

multi-disciplinary stakeholders falls mostly on 

the Infrastructure and Integrated Ecosystem 

(IES) teams, both supporting the ASEZCo’s 

establishment as a resource-efficient, carbonneutral 

and socially-inclusive industrial hub. 

Through its positioning as this eco-industrial 

park the ASEZ aims to attract Greentech investors 

who embody the elements and ethos of green 

technology manufacturing. It also means bringing 

the principles of the green economy into how the 

Atlantis SEZ is run and how the utility service needs 

of the investors are ultimately met and delivered. 

In recent years, purpose has gained 

momentum in business. With societal issues on 

the rise, government and community resources 

are under pressure. And increasingly, consumers 

expect organisations to step in and play a greater 

role in advancing social or environmental issues. 

But, while companies understand the moral 

imperative in delivering value for all stakeholders, 

a huge opportunity exists in seeing the business 

imperative. This can be explained through a simple 

but powerful idea: a company’s success and social 

progress are interdependent. This is the key 

principle of shared value. 

Tourism companies can’t thrive if a 

pandemic prevents us from travelling. Food 

suppliers can’t thrive if extreme weather 

events spoil farmers’ crops. Farmers can’t 

thrive if supply chains are fragmented. And 

communities go hungry when there is limited 

access to food supplies. And financial services 

can’t thrive amid financial hardship. 


28

ithout 

ff line 

FOCUS 

In this context, purpose has an important place 

within business strategy. When used to its full 

potential, it can reach beyond risk mitigation – or 

doing no harm – to actually create new value for 

business (and society). Shared value is a framework 

designed to create business solutions to social and 

environmental problems. Put differently, it’s a means 

to deliver on your purpose, profitably. 

Shared value 

The creation of both societal and business value is 

integral to shared value. 

Societal value comes from vastly improving 

the conditions in which we live; advancing health 

outcomes, education, employment, financial or 

digital inclusion, service access and participation 

and/or helping to reduce our impact on the 

environment. 

Meanwhile, business value can range from 

increased revenue or market share to improved 

productivity, greater efficiency, reduced costs, 

improved quality, a more secure supply chain or a 

more skilled or productive workforce. 

The principle of striving towards shared value 

in our work with the local community, existing 

industrialists and new investors is underpinned by 

commitment to positive contribution towards the 

United Nation’s Sustainable Development Goals 

(SDG). The SDGs form a blueprint of addressing 

global inequities and achieving a more sustainable 

future for all. 

Working in close collaboration with the 

Infrastructure team, the IES team supports 

the Atlantis community through skills and 

enterprise development, coupled with 

community integration. This is done to enable 

the Atlantis community, notably its youth, to tap 

into increased job opportunities, locally as well 

as in the buoyant green economy. Green skills 

development and growing technical capabilities 

within the community form part of the ASEZCo’s 

strategic objectives, aligned to the legislative 

requirement of the SEZ Act to grow the regional 

economy and drive socio-economic impact. This 

includes a range of interventions to support 

the skills development pipeline, some starting 

at foundational level, going through to school, 

college and ultimately at the workplace. 

The IES programmes are anchored by 

intentional, continuous and wider stakeholder 

community engagement, through our Community 

Stakeholder Network (CSN). This elected group of 

community leaders hail from a variety of sectors, 

such as small business and informal traders, 

education, youth, women and people with 

disabilities, Early Childhood Development, faithbased 

and traditional council and cultural groups. 

The CSN serves as a conduit for meaningful 

communication between the ASEZCo and the 

Greater Atlantis Community, therefore ensuring 

dialogue between the public and private sector 

and the community at large. The principles of 

multi-stakeholder engagement and collaboration 

provide a feeding ground for fostering local 

innovation, the co-creation of solutions and a 

conducive business environment. 

References 

https://sharedvalue.org.au/about/shared-value/ 

https://www.un.org/sustainabledevelopment/ 

sustainable-development-goals/ 


FOCUS 

Sectoral strengths of 

South African provinces 

SECTORAL STRENGTHS OF 

SOUTH AFRICA’S PROVINCES 

A wide variety of investments are available. 

Gauteng: 

• Financial and business services 

• Information and communications 

technology 

• Transport and logistics 

• Basic iron and steel, steel products 

• Fabricated metal products 

• Motor vehicles, parts and accessories 

• Appliances 

• Machinery and equipment 

• Chemical products, pharmaceuticals 

North West: 

• Agro-processing 

• Mining 

• Agriculture and agro-processing 

• Tourism 

• Metal products 


• Renewable energy (solar) 

Northern Cape: 

• Mining 


• Fisheries and aquaculture 

• Renewable energy (solar, wind) 

• Jewellery manufacturing 

Limpopo: 

• Mining 

• Fertilisers 

• Tourism 

• Agriculture 

• Agro-processing 

• Energy, including 

renewables (solar) 

Mpumalanga: 

• Mining 

• Tourism 

• Forestry, paper and paper 

products, wood and wood 

products 

• Agriculture and agroprocessing 

• Metal products 

FOCUS 

KwaZulu-Natal: 


• Tourism 

• Motor vehicles, parts and 

accessories 

• Petrochemicals 

• Aluminium 

• Clothing and textiles 


• Agriculture and agroprocessing 

• Forestry, pulp and paper, 

wood and wood products 

Western Cape: 

• Tourism 

• Financial and business services 


• ICT 


• Fisheries and aquaculture 


• Basic iron and steel 


• Renewable energy (solar, wind) 

Free State: 


• Mining 



• Tourism 

Eastern Cape: 

• Motor vehicles, parts and 

accessories 

• Forestry, wood and wood products 


• Pharmaceuticals 

• Leather and leather products 

• Tourism 

• Renewable energy (wind) 

Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary 

Source: Industrial Development Corporation (IDC) 

(South African Investment Conference, 2018). 

Page | 40 

SOUTH AFRICAN BUSINESS 2021 2022 20 30 

23 SOUTH AFRICAN BUSINESS 2020

Logo without 

pay-off line 

At Atlantis SEZ tenants can expect 

energy and waste security and efficient 

management of waste 

Matt Cullinan, Infrastructure Executive of the Atlantis Special Economic Zone, outlines 

the importance of combining a high standard of service with green principles. 

The Atlantis Greentech 

SEZ is there to support 

green technology 

industrialisation and job 

creation in South Africa. The ASEZ 

represents South Africa’s leading 

foray into green industrialisation 

and is a tool to unlock green 

industrial development. 

Good-quality and reliable 

utility infrastructure underpins 

any good industrial zone. We are 

building the zone around worldclass 

utility services that offer 

energy and water security and 

resource-efficient management 

of waste – all done in a manner 

that contributes to sustainable 

development. A well-maintained 

and security-conscious operating 

environment is also important. 

Our aim as the Atlantis SEZ is 

to work together with our tenants 

to create mutually-supportive 

systems that ensure production 

efficiency and continuity. 

The ASEZ long-term 

infrastructure plan envisages four 

green utility infrastructure goals. 

These are: 

Net Zero Carbon: This involves using renewable energy 

embedded into the zone and servicing the industrial manufacturing 

plants. We aim to offer a high degree of energy security while reducing 

carbon emissions. This plan is complemented by an existing City of 

Cape Town load-mitigation programme, provided that load-reduction 

targets are met. This is resource efficiency in action. 

Net Zero Water: This aims to ensure long-term water security and 

efficient water use in what is a water-stressed region. This includes 

steps to enhance on-site water capture and re-use. Our programmes 

will also focus on helping to improve production efficiency and, 

through that, reduced use of water and/or water recycling. 

Net zero waste to landfill: There is growing recognition of the 

importance of the circular economy to sustainable development. 

Exploring how the waste of one production process can act as an 

input resource for another is another way of reducing waste to landfill. 

The City of Cape Town and the Western Cape already have high 

standards and targets for waste that cannot be sent to landfill. This 

creates opportunities to find ways to reduce costs of our tenants’ waste 

management and possibly even create new revenue opportunities. 

Working with nature: The Atlantis industrial area is located 

within an important fynbos biodiversity corridor, one of the largest 

green lungs remaining in Cape Town. It contains both endangered 

and critically endangered lowlands vegetation fynbos types. There 

is an ongoing process of removing invasive aliens, searching for 

and rescuing endangered and critically endangered species and 

relocating these to a land bank. The aim is to use some of these 

same species for landscaping the zone once factories have been 

built, doing as much as possible to work with the natural features 

and flora in the area. The ASEZ has an indigenous landscaping plan 

to support this objective. 

These goals aim to create low-carbon, resource-efficient 

operations for the zone and the tenants. We subscribe to UNIDO’s 

Eco-Industrial Park (EIP) principles and are constantly exploring ways 

to be more resource efficient and reduce carbon. These are also crucial 

contributors to the Sustainable Development Goals and meeting the 

objectives of significant global protocols, such as that COP26. 

In future, all industrial development should be done this way, 

especially if we are to achieve a semblance of sustainability, grow the 

circular economy and tackle the drivers exacerbating the climate crisis. ■ 



Gas exploration is reaping 

dividends — mining could be next 

A vital refinery could start receiving new feedstock to prolong its life. 

Credit: PASA 

Welkom in the Free State used to be a 

thriving town, based on gold mining, 

but it lasted only four decades. The 

economy of the coastal town of Mossel 

Bay relied heavily on the gas-to-liquids refinery on 

the town’s outskirts before the gas ran out. 

The depletions were expected in both cases but 

when the gold price experienced a drop of $600 in 

1989, the writing was on the wall sooner rather than 

later for many gold mines. The lack of feedstock for 

Mossgas, the refinery run by the country’s national 

oil company, PetroSA, came to a head when the 

Central Energy Fund reported to parliament that 

reserves were expected to run out by December 

2020. The Fund stated, “there is still no sustainable 

techno-economic long-term solution for the gas-toliquid 

refinery”. 

Since that gloomy report, two gas drilling 

projects have indicated that both towns could 

boom again. Petroleum Agency South Africa (PASA) 

is in charge of oil and gas exploration and one of its 

goals is to increase the percentage of gas used in the 

South Africa energy mix. Licences issued for offshore 

drilling off the southern coast off Mossel Bay and 

onshore at Virginia near Welkom have both paid off, 

with discoveries indicating significant reserves. 

A similar focus is needed in the mining sector 

to unlock the country’s resources for economic 

growth. Studies have shown that South Africa is 

currently attracting just 1% of global spending on 

mining exploration, a figure that normally reaches 

R160-billion annually. Several industry leaders 

have expressed concern about the low level of 

exploration activity but in 2020 they were joined by 

the Economic Transformation Committee (ETC) of 

the African National Congress (ANC), the country’s 

majority political party. The ETC sees exploration as 

a way of broadening the scope of ownership within 

the mining industry. 

Gwede Mantashe, South Africa’s Minister of 

Mineral Resources and Energy, wants to see South 

Africa attracting at least 5% of global exploration. For 

exploration to expand a reliable cadastre is required. 

A cadastre is a record of property boundaries 

and ownership. Drone technology could take 

the mapping process forward, allowing for more 

exploration at a lower cost. 

In his 2019/20 budget vote, Mantashe noted 

that about 4 000 permanent jobs would be created 

by the recent investment of about R45-billion 

through projects such as Exxaro’s Belfast expansion 

(coal), Sasol’s coal mine replacement programme 

and Vedanta Resources’ huge zinc mine in the 

Northern Cape. 

The Council for Geoscience, another of the 

agencies of the Department of Mineral Resources 

and Energy (DMRE), develops and maintains the 

national geoscience knowledge infrastructure 

for both the onshore and offshore environment. 

The Council for Geoscience provides data which 

is used in exploration for minerals and has found 

signs that there might be a future for gold mining 

in Mpumalanga. In addition, the council is actively 

involved in several projects which could help to 

take mining into the cleaner energy future. These 


32


include a carbon capture project and a scheme to 

treat polluted water in such a way that the finished 

product is useable. 

New gas finds 

Gold mining started in the Welkom area in 1949 

and started tapering off from 1989. Renergen, 

through its company Tetra4, has made good 

progress on its Virginia Gas Project (pictured) 

which covers 187 000ha of gas fields across 

Welkom, Virginia and Theunissen. The company 

has exploration and production rights and recent 

finds have confirmed the earlier, very positive, 

reports about the size and quality of the resource. 

Hiring has increased rapidly since 2019 as 

the project ramps up from the first phase in 

which a pilot compressed natural gas (CNG) 

plant was constructed in 2016. The second phase 

encompasses liquid natural gas (LNG) and helium. 

Production of helium is expected to grow from 

350kg per day to five tons in the second phase. 

The first sector to respond to the potential of 

this gas find was the logistics sector. Bulk Hauliers 

International Transport (BHIT) has signed an 

agreement to take LNG to fuel 50 of its trucks, which 

should lead to lower operating and maintenance 

costs. South African Breweries is another client. 

Renergen has signed an agreement with 

TotalEnergies for distribution and sales. 

The exciting offshore discovery was made by 

Total and its partners at a site called Brulpadda 

off the coast of Mossel Bay. The nearby Luiperd 

prospect in Block 11B/12B delivered more exciting 

news when gas condensate was also found there. 

The block, in the Outeniqua Basin 175km off the 

southern coast, covers an area of about 19 000km² 

in water depths of 200m-1 800m. The exploration 

was done by the semi-submersible rig Deepsea 

Stavanger (pictured), which journeyed twice from 

Norway to lead the exploration projects. 

The two finds raise the odds of Total investing 

in what it calls a “world-class” offshore gas site. The 

drilling campaign employed 195 South Africans 

with specialist skills but the potential spinoff is 

enormous for the Western Cape and South Africa, 

if the find leads to drilling and commercialisation. 

PASA has noted the significance of 

international oil companies committing to 

exploration off South Africa’s coast. In the 

context of the great interest caused in the global 

market by discoveries in the Rovuma Basin off 

Mozambique in 2020, South Africa’s potential is 

sure to be in the spotlight. More exploration will 

guarantee that interest is maintained. ■ 

Credit: Renergen 


VIEW 

INTERVIEW 

An intensive new geological 

mapping programme 

is underway 

ding new ways of 

ucing and reusing carbon 

Spending on geology is an investment in the country’s economic future, 

explains Council for Geoscience CEO Mosa Mabuza. 

What is the mandate of the Council for Geoscience (CGS)? 

il for Geoscience CEO, Mosa Mabuza, is excited about new research on 

Our legislative mandate is to be the custodian of geoscientific 

n capture and is intent on expanding knowledge his organisation’s in the Republic. There relevance are five dimensions to the to our work. 

African economy. 

The first one is minerals and energy. Society always suspects 

that we are an exploration company of sorts but we are much 

more than that. 

How will the Council 

The second 

for Geoscience 

one relates to 

(CGS) 

seismic 

carbon 

events 

capture 

such as the 

and 

tremors 

the 

felt between Johannesburg and Alberton. It is the responsibility 

storage project in Mpumalanga expand South Africa’s energy mix and 

of the Council for Geoscience to record those events, to study 

decrease the country’s them, communicate carbon footprint? with the public and to indicate the risks and 

We abbreviated work the closely project with to the CCUS: National Carbon Disaster Capture Management for the Committee. two Cs, U 

for utilisation, storage There as is the an last example stage. Once of this the in carbon the Carltonville is captured area. it has Our 

numerous applications. preliminary Not results only suggest would that you there be able might to have reduce to be the a relocation carbon 

content that is emitted of a village. into It’s our not climate, a small but place, you those can also are apply villages it in that fertiliser were 

manufacturing supporting and a number the gold of mines. other The applications. nexus between deep gold mining, 

Mosa Mabuza, CEO We see it as dolomites, a scientific acid intervention mine drainage that as gets well as us non-maintenance as a country to breathe of water 

infrastructure, all of that is causing this proliferation of sinkholes. 

life into the climate mitigation measures, in terms of the international 

Now you can’t apportion the blame on this one alone or that one 

climate protocol 

alone 

that 

and 

we 

I don’t 

have 

think 

committed 

blaming will 

to. 

help 

If 

but 

the 

it’s 

science 

good to 

is 

know 

proven, 

what 

not only will South the problem Africa is meet so that but it is it never will replicated. go far beyond the minimum 

commitments that We we are have also made doing as a land country. susceptibility mapping exercise. 

BIOGRAPHY 

But we’ve got When to we let the had science continuous take rain place, in KwaZulu-Natal we’ve got to let there were pilot 

project prove that many indeed, properties it is and a sensible road infrastructure scientific intervention, that collapsed. that If you the do 

After qualifying as a geologist from 

economics make the study sense, today, that not science when and it rains, the then intentions you either are don’t met. develop Only 

Wits University, Mosa held various 

it here or if you were to develop it here, then make sure that you 

positions at De Beers and once Anglo we have proven all of those three attributes, would we be confident 

reinforce the infrastructure. 

abuza, CEO American and worked in enough jurisdictions 

as varied as West Africa then and coal can continue to play a critical role in our energy mix. 

to say that, indeed, we can continue. We think that, if it is proven, 

Environment and water management is the third main area 

of our brief. Then we have Geosciences Innovation where we are 

Canada. From his appointment as now beginning to use artificial intelligence applications. It is a 

the Director of Mineral Economics Is this pilot at one fantastic site new or is area. it multiple The last sites? one is “geosciences for diplomacy” – 

in the former Department The of Minerals 

and Energy, he was promoted emission to sites our in Mpumalanga international counterparts. where there is a higher concentration of 

first one is on this one relates site. to We exchanges have chosen in geosciences a pilot very where close we to connect the major with 

APHY 

Deputy Director-General of power Mineral stations, as well as the Sasol plant. If we get that right we can 

Policies and (Investment) Promotion have our contribution What are your to carbon priorities pollution at the CGS? reduced by between 60% 

ying as a geologist in 2012. from He has Wits been CEO and of CGS 80%. 

We have not yet mapped the country at the right scale of 1:50 000. 

Mosa held since various 2017. positions 

Our predecessors have done a fantastic job of mapping the entire 

s and Anglo American and What are the other priorities of the CGS in Mpumalanga? 

jurisdictions SOUTH as AFRICAN varied as BUSINESS The 2022 CGS mandate is that 34 we are the custodians of geoscientific information 

a and Canada. From his 

ent as the Director of Mineral 

and knowledge in the country so we have quite a number of programmes in 

Mpumalanga. One of them which is really very exciting and is at an advanced

country at a scale of 1:250 000. They have handed 

the baton to us and we have now made the political 

leaders appreciate the importance of mapping the 

country at that scale. 

Our key priority is what we call the integrated 

multi-disciplinary mapping programme. If an 

area does not have water, we can quickly look at 

the geology at that scale and say that you can 

complement your water resources supply with 

groundwater. Until we get there, these are the 

kinds of questions that are difficult to answer. 

The team is moving at an incredible pace. 

When we started, we were just under 5% coverage 

and we are targeting to reach 9.5% at the end of 

this financial year. 

Do you have the necessary resources? 

The political leadership has started to appreciate 

the importance of science so that they can 

make science-based decisions. I have the utmost 

support of the Minister. We recently presented in 

parliament and they are fully behind us. They are 

arguing on our behalf that the social programme is 

not sustainable if we are not investing in economic 

catalysing activities today. Geology is a national 

investment; it is not a cost. 

Do you have other priorities? 

The blue economy. We have not even begun 

to map our oceans. If there is one thing that 

embarrasses us as a nation it is that we do not 

have a single map from our oceans. For the first 

time, we published a number of marine geology 

maps. Marine research is showing us exciting 

things, and once you have the information then 

you can make informed choices. 

We are opening our eyes to a whole frontier 

economy right under our noses which we have 

not exploited optimally. When we looked at the 

geological work that has been done, we found 

that there was limited information there. We have 

put forward an aggressive plan to map offshore. 

I recently had a very productive meeting with 

the chief of the navy. We have struck a partnership 

with the navy so that we can have a collaboration 

to leverage their vessels so that we can fast-track 

the mapping. That will help us to accelerate the 

mapping and help us to catch up. 

Schematic illustration of a proposed CCUS plant near 

Leandra, Mpumalanga Province 

The same would apply to Department in 

Fisheries vessels. We have amazing expertise of 

marine geology at the Council for Geoscience, and 

we are beginning to unleash that potential. 

How important is the CGS carbon capture and 

storage project in Mpumalanga? 

We have abbreviated it to CCUS, with the U 

representing utilisation, and storage as the last 

stage. Once the carbon is captured it has numerous 

applications. Not only would you be able to reduce 

the carbon content that is emitted into our climate, 

but you can also apply it in fertiliser manufacturing 

and in a number of other applications. 

We see it as a scientific intervention that gets 

us as a country to breathe life into the climate 

mitigation measures, in terms of the international 

climate protocol that we have committed to. If 

the science is proven, not only will South Africa 

meet, but it will go far beyond the minimum 

commitments that we have made as a country. 

But we’ve got to let the science take place, 

we’ve got to let the pilot project prove that, 

indeed, it is a sensible scientific intervention, that 

the economics make sense, that science and the 

intentions are met and only once we have proven 

all of those three attributes, would we be confident 

enough to say that, indeed, we can continue. We 

think that, if it is indeed proven, then coal can 

continue to play a critical role in our energy mix. 

Is this pilot at one site or is it multiple sites? 

The first one is on one site. We have chosen 

a pilot very close to the major emission sites 

in Mpumalanga where there is a higher 

concentration of power stations, as well as the 


INTERVIEW 

a particular position that takes into account South 

Africa’s specific societal circumstances. 

What are your goals with regard to staff? 

Our biggest competitive advantage is our human 

capital. We have around 500 people in total and 

two thirds of them are geoscientists. We intend 

to create at least 10 A-rated geoscientists on the 

global scale in the next five to 10 years because 

once you have created a capable institution then 

all these other things become very easy. Anything 

and everything is possible when you have 

competent, agile, committed world-class rated 

scientists. Currently, 37% of our scientific staff have 

Master’s degrees and doctorates. We have a very 

ambitious target of 60%. 

A geo-environmental baseline study for gas in 

the Karoo has recently been completed and the 

report is being compiled. 

Sasol plant. If we get that right we can have our 

contribution to carbon pollution reduced by 

between 60% and 80%. 

What role is the CGS playing in the debate over 

the just transition? 

We will not be driving the whole debate but the 

carbon capture utilisation and storage is a scientific 

intervention that asks the fundamental question – 

does transition necessarily mean transition from 

coal or does the transition mean we are making 

a commitment to transition from high carbon to 

low carbon? 

Over many years we have developed the 

capacity to generate our base load from coal, we 

still have vast of resources of coal in South Africa 

and we have installed generation infrastructure. 

On the other hand, we have correctly made 

commitments to be part of climate change 

protocols. There is no debate on the contribution 

of carbon in accelerating the climate change, 

there’s absolutely no debate there. 

As the Council for Geoscience, our contribution 

in the main is limited to the science. The Council 

for Geoscience must also play a prominent and 

critical role as a leader in mobilising society around 

What is CGS doing in terms of regulating the sector? 

We have realised that since the current legislation 

that governs us was enacted we have not 

developed the regulations to provide the 

framework for how to handle that data. Regulations 

clarify the provisions of the legislation. 

Historically, we have a disconnect where 

mining companies were collecting geological 

information and very few of them were making 

it available to the state. Now some of them 

have closed shop and left South Africa and that 

information is nowhere to be found. We are trying 

to correct that. Draft regulations were published in 

April 2021 and we requested comments. 

An absolute priority is to have the 

regulations finalised in the current financial year. 

Where information is commercially sensitive 

for active projects, we will give reassurance 

that the information is treated as such. We are 

not nationalising geoscience. It is global best 

practice that a condition of your right is that you 

must provide the geological information you 

have collected. You bank the information with 

the “library” and the library promises not to sell it 

to someone else until such time as your project 

is finished. 

Are your teams finding new areas of potential? 

Unless we study the geology, we will not be 

able to know what we have. Our scientists 

have now confirmed rare earth element (REE)- 


36

The Council for Geoscience has launched its own research vessel, RV Nkosi, named for a renowned mineralseparation 

technician who passed away in 2019. Mapping the oceans is being done in support of the national 

Blue Economy programme. 

bearing rocks in the Northern Cape. Rare earth 

elements are vital in new industries such as 

renewable energy. 

We are looking at Northern Cape base metals 

like nickel, copper and chrome by adopting a 

mineralising system approach. We are investigating 

findings suggesting that the Wits Basin extends 

further into Mpumalanga and possibly the Free 

State area. 

The geo-environmental baseline study for gas 

in Beaufort West in the Karoo is complete and is 

being written. An environmental baseline study 

does not cover economic modelling but if the 

amounts of shale gas that we believe we have are 

indeed present, this may have a huge impact on 

our national fiscus. 

Are discussions taking place about a new 

Cadastre for SA mining? 

The Cadastre is the responsibility of the 

Department of Mineral Resources and Energy 

(DMRE) but we are having conversations as to 

where is the best place for it. Now a Cadastre 

without geological information is not complete. 

People want to be able to go onto that system and 

click there within your right and say well let’s see 

what geology is there. That currently doesn’t exist. 

We are not legislators, we are a science council. 

But we have geological information which is a 

critical component. Bridging that gap is what we 

have to resolve but we are having a conversation 

around that. The goal would be to have a 

geologically informative Cadastre. ■ 


KEY SECTORS 

Overviews of the main economic 

sectors of South Africa 

Agriculture 40 

Mining 44 

Energy 48 

Oil and gas 54 

Water 58 

Engineering 62 

Construction and property 64 

Manufacturing 65 

Transport and logistics 66 

Automotive 72 

ICT 73 

Tourism 74 

Banking and financial services 75 

Development finance and SMME support 76

The eMendi building at Port of Ngqura is within the Coega Special Economic Zone (Coega SEZ) and is shown with 

the busy port and Algoa Bay behind it. The building, designed by Dominic Bonnesse Architects and completed in 

2017, became the national headquarters of the TNPA in 2021. Credit: Credit: Dominic Bonnesse Architects

OVERVIEW 

Agriculture 

Rooibos has won the battle for unique regional status 

SECTOR INSIGHT 

Mohair is making a comeback 

via the Responsible Mohair 

Standard. 

Blueberries are a good investment. Credit: Primocane Capital. 

South Africa has a number of unique agricultural 

products but winning the right to exclude other global 

producers from using the name of the product is a 

tough task. 

In June 2021 rooibos became the first South African crop to win 

from the EU the status of protected designation of origin (PDO). 

Champagne or Port wine are the best-known products that fall into 

the protected category. The PDO identifies and links a product to a 

region, making sure that the consumer will get “the real thing” that is 

specific to that area. 

Products that are included in the Geographical Indication 

Register of the EU currently generate about R1.24-trillion annually. 

The Western Cape Provincial Government is investigating ways in 

which other products such as Aloe Ferox, Buchu and various types of 

flora unique to the province can be added to the list. Karoo lamb is 

another sought-after delicacy with its own distinct flavour. 

With about 350 commercial farmers cultivating 70 000ha (and a 

further 100 small-scale farmers), the industry produces about 15 000 

tons of rooibos, about half of which is exported, mostly to Europe 

and Japan. The EU designation could lead to higher prices being 

available to producers. 

Another product of the Karoo is mohair. Although more than half 

the world’s mohair is produced in a relatively small geographical area 

north of the small Karoo town of 

Jansenville, there is no chance 

of getting a PDO for the fleece 

of the Angora goat because 

the first animals were imported 

into South Africa. However, a 

certificate of another kind has 

had a big effect in recent months 

in helping to revive the sector. 

The mohair industry 

took strain after a television 

documentary claimed that 

animals were routinely abused. 

This was denied at the time 

but the introduction of the 

Responsible Mohair Standard 

allows consumers to have peace 

of mind that animals have 

been well treated. The RST was 

set to confirm with standards 

established by a non-profit 

organisation, Textile Exchange. 

A unique product that is 

generating a lot of interest is 

the marula fruit, found in large 

quantities in Mpumalanga and 

Limpopo. A Marula Industrial 

Hub is envisaged for the 

Palaborwa area which will 

provide a platform to further 

exploit the tasty marula fruit, 

which has a high vitamin C 

content and is already produced 

as a beer and a liqueur. The 

Limpopo Department of 

Economic Development and 


40

OVERVIEW 

Tourism (LEDET) is encouraging research into the uses of marula 

and the development of commercial products such as cosmetics 

and jams. The University of Limpopo is making good progress with a 

marula wine. 

Horticulture is growing 

Wandile Sihlobo of Agbiz promotes the idea of South Africa focussing 

on horticulture, partly because it is so labour intensive. He cites 

blueberries, which need 2.64 workers for every hectare planted. Signs 

are promising; gross value rose from R15.8-million in 2008 to R1.25- 

billion in 2018 with the total area planted expanding four times. 

More than 70% of the blueberry crop is exported as blueberries are 

growing in popularity globally as a “superfood”. In Mpumalanga an 

agri-focussed private equity firm, Primocane Capital, manages a large 

blueberry farm near Barberton on behalf of a mining company, Pan 

African Resources, which has set up the farm as part of its corporate 

social responsibility programme. 

Another subsector to experience rapid export growth is oranges. 

As a source of vitamin C, oranges grew in popularity as the Covid-19 

pandemic spread. South Africa is the world’s second-largest citrus 

exporter, after Spain, and the number 11 in the world in terms of 

production. Citrus exports earned South Africa about R20-billion in 2019. 

By contrast, flower growers were badly hit by the effects of the 

global shutdown. Normally, Europe accounts for 80% of exports with 

the Americas and Japan accounting for the balance. Wool exports 

suffered too, although this was mostly related to China stopping 

imports due to a foot-and-mouth disease scare. About 70% of South 

Africa’s export of this commodity are to China in a normal year. 

Avocado exports were worth about R4.3-billion in 2019, with 

more than 1 000ha of new plantings taking place every year to try to 

meet growing demand. South Africa is among the top three countries 

exporting to Europe and the Chinese market is growing at a rapid rate. 

Total South African agricultural exports reached R175-billion in 2019 

with about 40% going to other African countries and 25% to Europe. 

The grain and fruit harvests in 2020 were good with the maize return 

of 15.5-million tons the second-largest ever and 38% better than the 

previous year’s figure. 

ONLINE RESOURCES 

Agricultural Research Council: www.arc.agric.za 

Grain SA: www.grainsa.co.za 

National Department of Agriculture, Forestry and Fisheries: 

www.daff.gov.za 

SA Table Grape Industry: www.satgi.co.za 

South African Berry Producers’ Association: www.berriesza.co.za 

Rice and palm oil are 100% 

dependent on imports and half 

of the maize that South Africans 

consume comes from abroad. South 

Africa imports 80% of its fertiliser and 

98% of its agri-chemicals. 

While agriculture’s contribution 

to national GDP is variously given 

in the range of 2.0%-2.5%, the 

upstream and downstream links 

to agriculture through processing 

and logistics mean that the real 

contribution is more like 15%. 

AgriSA states that the amount 

of agricultural land in South Africa 

in 2016 stood at 93.5-million 

hectares. This represents 76.3% of 

South Africa’s total land mass of 

122.5-million hectares and about 

3% less than in 1994. 

A total of 70% of South Africa’s 

grain production is maize, which 

covers 60% of the cropping area 

of the country. KwaZulu-Natal 

and Mpumalanga produce 

sugar, but volumes are down. 

The Free State Province supplies 

significant proportions of the 

nation’s sorghum, sunflower, 

potatoes, groundnuts, dry beans, 

and almost all of its cherries. 

South Africa is famous for its 

fruit, of which 35% is citrus, 23% 

subtropical and nuts, 26% pome 

fruit, 11% stone fruit and 9% table 

grapes. Most of South Africa’s citrus 

and subtropical fruit comes from 

the eastern part of Limpopo. There 

are about 3 500 wine producers 

in South Africa, with the majority 

located in the Western Cape. 

The Eastern Cape is the largest 

livestock province. South Africa 

has a beef herd of 14-million. 

South Africa’s milk producers 

normally produce about 

3.3-billion litres of milk every year 

(Milk Producers Association). ■ 

41 


FOCUS 

The Responsible 

Mohair Standard 

has restored trust 

South African mohair is once again 

popular with global fashion brands. 

The mohair industry has embraced the Responsible 

Mohair Standard as we are all aware that the consumer 

of today is rightfully far more conscious, not only of 

the impact of their purchases on the environment, but 

also the impact their purchases have on the people 

producing the goods. 

The Responsible Mohair Standard is all-inclusive and is very 

specific as to its requirements in respect of the environment 

and welfare of the animals and all individuals employed in the 

production of mohair products. 

There is no doubt that having Samil’s manufacturing operations 

certified under the Responsible Mohair Standard has opened new 

opportunities for trade throughout the world. 

However, the dynamic team at Samil feels compelled to ensure 

that not just the Samil manufacturing operations but all mohair 

operations owned or run in partnership with Samil, must also be 

RMS certified. Samil therefore embarked on a concerted drive to 

have all the Angora goat farms which are either owned or run in 

partnership with Samil Farming were also certified as RMS. 

This was no mean task as there are more than 30 farming 

operations in the Samil Farming portfolio in and around the Karoo 

region. However, the Samil Farming Manager, Andries Coetsee, and 

his very able assistant, Nienke Scholtz, embraced the challenge and 

Samil is proud to announce that, as of the end of August 2021, all 

Samil mohair operations are proudly RMS certified. 

Through the determined efforts of Mohair South Africa, in 

conjunction with The Textile Exchange, in ensuring the development 

of the Responsible Mohair Standard, the mohair industry has been 

able to regain the trust, not only of the big fashion brands, but also 

of the world. 

This can clearly be seen in the record mohair prices currently being 

achieved as brands the world over are scrambling to reintroduce RMScertified 

mohair articles into their product ranges. 

The knock-on effect is that jobs that had previously been in jeopardy 

are now secured and, due to the new-found appetite for mohair, more 

jobs have been created. 

The benefits of RMS certification 

After the PETA exposé in 2018, the South African mohair industry 

became a pariah and many of the top fashion brands vowed to no 

longer use mohair in their products. This put nearly 30 000 people 

at risk of being unable to earn a living and feed their families. 

68 SOUTH | www.opportunityonline.co.za 

AFRICAN BUSINESS 2022 

42

2021/10/20 16:49:06 

Sharing Africa’s beauty with the world 

SAMIL produces and processes mohair, the noble fibre. 

South African Mohair Industries Limited (SAMIL) is the link 

between mohair producers, processors and consumers. Our 

vision is to be an innovative South African company specialising 

in the production and processing of natural fibres, as well as 

speciality spun yarns. 

Mohair, the fleece of the Angora goat, is: 

• the noble fibre, known as the diamond fibre 

• lustrous, resilient and offers exceptional colour reflection 

• one of the world’s most beautiful sustainable natural fibres 

• a symbol of luxury and exclusivity. 

African Expressions 

Our local brand African Expressions was born of the desire to share Africa’s 

natural beauty with the rest of the world. Through our unique range of 

yarns, we express the essence of that which makes Africa magical. Our 

network of local farmers, who farm in optimal Angora goat conditions, 

breed stock which bear excellent fibres. This ensures that our yarns are 

naturally soft to the touch, easy to knit and luxuriously versatile. 

SAMIL divisions 

Farming: SAMIL Farming was established with the primary objective of 

stabilising and possibly increasing mohair supply to the processors. 

Combing: SAMIL Natural Fibres Combing is in Berlin, outside East London 

in the Eastern Cape. As mohair processing has decreased in other parts 

of the world, SAMIL Combing has become one of the world’s leading 

processors. Unlike many processing plants SAMIL Combing focusses on 

and is committed to processing only mohair. 

Trading: Through a strong support base of affiliated companies, partners 

and agents, SAMIL has established strong connections throughout the 

world for the purchase and sale of raw materials and finished goods. South 

Africa processes in excess of 80% of the world’s mohair production. The 

advantage of having both top-making and spinning operations in South 

Africa, as well as access to raw material produced within the company, 

is that SAMIL is able to offer lots guaranteed from origin, a rare luxury in 

today’s business environment. 

Spinning and dyeing: SAMIL Spinning is a global manufacturer of 

outstanding quality mohair yarns, producing a wide and exclusive range of 

mohair and mohair blended fancy and fine-spun yarns in both fine-count 

and coarser varieties. We are internationally renowned for our superior 

product range and cater for the hand knitting, machine knitting, weaving, 

hosiery and decor markets. Although we specialise in pure mohair, we also 

blend mohair with a range of other natural and man-made fibres. Yarns 

can be custom dyed to any shade at SAMIL’s state-of-the-art dye house. 

Genetic research: The latest venture under the SAMIL umbrella is the 

research project called ANGELA which aims to enhance Angora goats and 

the mohair kidding rates to the improvement of the different hair qualities. 

The project will make available its results to all in the mohair community. 


Tel: +27 41 486 2430 | Email: yarns@samil.co.za | Website: www.samil.co.za

OVERVIEW 

Mining 

Record earnings for miners have been good for the national Treasury. 

Credit: Pilanesberg Platinum Mines 

Commodity prices buoyed the South African mining sector 

in 2021. Rhodium palladium, platinum and gold collectively 

rose in price by more than 50% at one stage during 2021. 

Increased demand for platinum group metals PGMs has 

been a trend for some years, driven by the vital role played by PGMs 

in reducing pollution in the automotive sector. This was boosted more 

recently by applications for renewable energy and by supply constraints 

brought about by Covid-19 with production volumes down and 

shipping made more difficult throughout 2020 and into 2021. 

More than R23-billion in dividends was paid out to Kumba Iron Ore 

shareholders in July 2021. Interim earnings reached record highs on 

the back of a commodity price surge that followed the lifting of many 

pandemic restrictions around the globe. The company paid R9.2-billion 

in taxes and royalties in the six months to the end of June. 

With other mining companies recording similar figures, the 

government was able to keep paying social grants beyond the time 

when it thought it would have to scale down on support for people 

afflicted by the Covid lockdown and the slowing economy. 

Share prices seldom deal in irony, but when the coal company 

that was hived off from Anglo American in 2021 greatly improved 

its share price in just four months, some wry smiles might well have 

been exchanged by traders. 

Thungela Resources listed on the JSE in June and by early October its 

share price had increased fourfold to almost R100, giving the company a 

market value of R13-billion. There was irony in this result because Anglo 

American had gone to the trouble to promise to support Thungela 

financially until the end of 2022 if thermal coal prices did not hold up. With 

many companies getting out of coal and the global investor community 

under pressure to divest from fossil fuels, a new coal company seemed 

like a long shot. But the economic growth surge that followed the lifting 

of lockdown regulations caught energy planners by surprise. With not 


Northam buys a stake in 

Royal Bafokeng Platinum. 

enough renewable energy yet 

on stream, the world started 

scrambling for energy sources. 

Cue Thungela Resources, the 

new owner of Anglo American’s 

thermal coal assets in South Africa. 

Other news in 2021 from 

Kumba Iron Ore was the 

appointment as CEO of Mpumi 

Zikalala, currently the managing 

director of De Beers Managed 

Operations, who became the first 

woman to head the company. In 

2020, Amplats announced the 

appointment of Natascha Viljoen 

as CEO. An organisation called 

Women in Mining (WiMSA) aims 

to empower women in the South 

African industry, giving them a 

platform and a network. Current 

chairperson Petro Du Pisani is 

Head of Business Improvement 

Projects at Anglo American. A 

previous chairperson, Thabile 

Makgala, is the Executive: Eastern 

Limb at Implats. 


44

Sales and profits 

PPC Lime has changed hands. A 

transaction for R515-million was 

expected to be concluded by the 

end of 2021, with the Kgotelopele 

consortium taking over ownership. The 

new owners see the green economy as 

advantageous to the company’s future. 

Harmony Gold expects to spend 

R2.3-billion in 2022 on capital 

expenditure in South Africa. The Zaaiplaats project in Limpopo and a 

tailings project between Klerksdorp and Potchefstroom in the North 

West are the major areas of focus. Together with a project in Papua 

New Guinea, the new initiatives will allow Harmony to continue to 

produce 1.4-million ounces of gold until FY 2027 (Mining Weekly). 

Coal giant Exxaro has disposed of its stake in Tronox Holdings 

(mining and processing of titanium ore, zircon and other minerals) 

but has taken full ownership of renewable energy company 

Cennergi, owner of two wind farms in the Eastern Cape. Exxaro has 

tasked Cennergi with installing renewable energy plants at its mines. 

In March 2021, Implats announced headline earnings of R14.5-billion, 

an increase of 328% over the previous year and a reflection of all of these 

trends. Implats intends expanding production at its Two Rivers PGM mine 

by 180 000oz. The project will take four years and cost R5.7-billion. 

In the fourth quarter of 2021 Northam Platinum Holdings announced 

a deal to secure a one-third stake in Royal Bafokeng Platinum. 

The sale in 2020 by AngloGold Ashanti of its Mponeng mine 

and Mine Waste Solutions to Harmony Gold for $300-million (about 

R4.4-billion) marks the end of an era. Harmony Gold’s acquisition 

strategy, including the purchase from AngloGold of Moab 

Khotsong mine in 2017, will result in it being the country’s biggest 

gold producer. With 350 000 new ounces coming from Mponeng, 

it could produce an annual total of 1.7-million ounces. 

De Beers is expecting its Venetia underground project to start 

delivering its first ore in the second half of 2022. Investment in 

the project will amount to about $2.1-billion. The investment 

is expected to extend the life of the mine to 2045 and possibly 

beyond that date. 

Afrimat continues to expand its commodities portfolio. 

Previously focussed on construction materials, Afrimat bought 

a 27.27% stake in a high-grade anthracite mine in Mpumalanga, 


Council for Geoscience: www.geoscience.org.za 

Minerals Council South Africa: www.mineralscouncil.org.za 

National Department of Mineral Resources and Energy: www.dmr.gov.za 

Coal prices surged in 2021. Credit: Thungela Resources 

Nkomati and followed this with 

the purchase of Coza Mining, 

an iron ore and manganese 

company in the Northern 

Cape. Afrimat’s first foray into 

commodities was also in that 

province, the R322-million 

acquisition of the Diro mine. 

In 2020 Afrimat applied for 

Nkomati to be placed under 

business rescue because of the 

Covid-19 lockdown but stated 

that it believed the business 

could indeed be resuscitated. 

When phase three is reached, 

the biggest new mining project in 

South Africa will deliver 600 000 tons 

of zinc for Vedanta Zinc International. 

Located at Aggeneys in the 

Northern Cape near the border 

with Namibia, the Gamsberg 

zinc project has so far attracted 

$400-million in investment from 

the company and has started 

trucking product to the Port of 

Saldanha. Phase one of the openpit 

operation will deliver an annual 

load of 250 000 tons of zinc. If it 

proceeds to phase three, it will 

likely go underground. 

The Northern Cape Province 

is planning for a deep harbour 

at Boegoebaai. Part of the 

strategy involves the creation of 

a commodities corridor linking 

the Upington Industrial Park 

with the port. ■ 


INTERVIEW 

Finding the right 

pace to transition to 

clean energy 

DMRE Deputy-Director General Ntokozo Ngcwabe explains how a drive to 

promote exploration is proving that mining is the opposite of a sunset industry. 

What are the Department of Mineral Resources and Energy’s 

main priorities? 

Energy security is at the very top of our list in terms of electricity and 

fuel. The minister has been announcing bid windows and those are all 

geared towards increasing megawatts that flow into the grid. We are 

adding megawatts to the grid to support Eskom and to support our 

economic growth goals. With fuel, we have to ensure that we keep 

a certain level of strategic fuel stock at all times for the country. We 

are doing a lot of work on the policy front to ensure that as we drive 

energy security, we also follow the just energy transition path. 

Ntokozo Ngcwabe 

BIOGRAPHY 

Ntokozo Ngcwabe is the Deputy 

Director-General in the Department 

of Mineral Resources and Energy. 

She is responsible for Policy, Global 

Relations and Investment Promotion 

and has 22 years of experience in 

the minerals and energy sector. Her 

responsibilities include promoting 

investments into the entire value 

chain in both mining and energy, and 

building and growing partnerships in 

the two industries. 

What are other policy issues? 

The minister recently gazetted regulations for clean fuels. We 

need to be investing in clean energy technologies and clean coal 

technologies to ensure that as we exploit our resources, we do so 

in a responsible manner that ensures that we meet our sustainable 

development commitments. 

Is a commitment in terms of local content something you 

expect from bidders? 

It definitely is. At this point renewable energy generation components 

are not manufactured locally. As we progress with this programme, 

localisation is something we want to see as opposed to components 

just being brought in for assembling in South Africa. Our aim is to 

ensure that we create jobs as we walk our just energy transition journey. 

Further down the line, we then want to move into industrialisation and 

massifying in terms of job creation. 

What are the opportunities in respect of the world’s demand for 

minerals and metals that will assist the transition? 

We are ranked the highest country in the world with the biggest 

resources of platinum group metals (PGMs). We are looking to drive 

the markets for PGMs but we are also following what is happening 

with electric vehicles. State-owned entities like the CSIR and Mintek 

have done a lot of work and are investing in fuel cell technology. The 

entire Minerals Council building in Johannesburg is powered by fuel 


INTERVIEW 

cells. How do we massify commercialisation of that 

technology so that we drive demand for PGMs but 

also make our own contribution in terms of the clean 

energy revolution? Our research institutions are at the 

very front of that work. The Council for Geoscience 

is also undertaking a mapping programme that is 

focused on minerals of the future, ie battery minerals. 

What are some concrete steps? 

We are in the early stages of looking at how we 

advance on the implementation of these technologies, 

for example powering our government buildings 

using smart clean technologies. From there, the aim 

would be to massify and grow. With greater demand 

you bring the price down as price is still a challenge. 

We know that as we invest more and more we will 

create and grow the market thus driving accessibility 

and affordability of these technologies. 

What is the future of coal in South Africa? 

Interesting question. South Africa is well endowed 

with coal and we are not going to wish it away. Let’s 

look at this subject holistically and realistically. South 

Africa’s energy generation basket is over 90% coal fired. 

It’s not realistic for South Africa to say in the short term 

we’ll get rid of all 16 power stations. 

There is provision for coal in the IRP, but the main 

focus is that new capacity is going to be in clean 

technologies. Our position is that as we mine and 

burn this coal to generate power, let’s deploy clean 

technologies; this will provide the baseload which we 

can never have from renewable energy sources. 

Pace is important in this conversation. The very 

essence of “just transition” is that it’s a process of moving 

from one stage to the other. It’s not a flip over that will 

happen overnight. The burning issue for me is I’d really 

love to see us having a balanced conversation about the 

just energy transition and the fact that South Africa needs 

to work on a South African solution at a rate and scale we 

can effectively manage and afford. We are signatories 

to the Paris agreement, and we remain committed to 

climate change and fulfilling our obligations. But let’s take 

a balanced view on this subject. 

How does the DMRE see the zinc operations in the 

Northern Cape? 

The Northern Cape is a strategic province in that it is 

under-explored. It can drive growth and help increase the 

contribution of mining in job creation and percentage 

of GDP. We are really putting our energies into driving 

exploration in that province. But it’s not only the zinc 

projects. A huge deposit of copper has been discovered 

in that area. These are commodities that are also critical 

for the future. 

Is the DMRE taking steps to expand exploration? 

DMRE, the Minerals Council and other stakeholders have 

developed an exploration map for South Africa which 

is currently going through the approval processes. It’s a 

specific goal to attract 5% of global spend on exploration, 

because we currently attract about 1%. If you don’t explore 

you won’t create new mines and will therefore not grow. 

Some people say mining is a sunset industry but that’s 

based on gold mining that is declining. There are other 

areas and new minerals and we want to turn our focus to 

those. The saying that if it’s not grown, it’s mined cannot 

be over emphasised, therefore if we want to grow our 

economy, we must invest in new mining projects. 

How is the process going towards regularising 

Zama Zamas? 

There are two aspects to it. There are criminals and the 

South African Police Service is dealing with them, but 

there are also so-called “illegal” miners where you find 

old ladies with picks and shovels who don’t know that 

this is an illegal activity. We want to assist people we 

are calling artisanal miners. 

We have drafted an artisanal mining policy which 

will be gazetted for public comments before the end of 

this financial year. We want to have a specific set of rules 

that’s customised and where they don’t have to meet the 

same requirements as the big mining houses. They will 

have their own processes and we’ll make sure they are 

regulated. They could contribute hugely to job creation 

and to the fiscus in terms of taxes and royalties. 

Does the department have a graduate placement 

programme? 

The DMRE has an extensive programme that covers 

a whole range of skills. Our SOEs like the Council for 

Geoscience also take graduates and mining companies 

are giving them experiential learning at their operations. 

This has been the tradition in the mining sector in South 

Africa; for example, the new CEO of Kumba Iron Ore, 

Mpumi Zikalala, started as a bursar and today she sits at 

the very top of the company. ■ 

47 


OVERVIEW 

Energy 

Generation exemption has changed the energy landscape. 

Medupi power station is one of the largest engineering projects in South Africa’s history. Credit: Eskom 

In June 2021 President Cyril Ramaphosa announced that private 

entities could go ahead and produce electricity without a licence, 

raising the threshold from 1MW to 100MW at a stroke. Intensive 

energy users such as mining houses had been arguing for this 

policy initiative for a long time, as had manufacturers in the sugar and 

timber milling industries, which produce vast amounts of biomass 

which can be turned into energy. 

The presidential announcement was almost universally welcomed 

by interested parties, including the CEO of national utility Eskom, which 

is struggling to keep South Africa supplied with sufficient power. Mining 

companies such as Sibanye-Stillwater and Gold Fields want to marshall 

renewable energy resources to power their own operations. 

Another big game-changer in the South African energy landscape 

will be the unbundling of Eskom. An Independent Transmission System 

and Market Operator was set to be established by 31 December 2021, 

assuming that all the documents are signed by that date. Companies 

such as Earth & Wire are preparing to become independent utilities in a 

more flexible energy environment. 

However, the move away from fossil fuels is not as straightforward 

as might be assumed. Despite the emphasis on renewables in South 

Africa’s latest integrated resources plan (IRP), South Africa’s energy mix 

is still weighted towards coal. Two huge new power stations, Kusile and 

Medupi, are being built by Eskom and 1 000MW has been allocated 

to private producers to build coal-powered stations. Koeberg nuclear 

power station is due to be decommissioned soon after 2045. 

The Minister of Mineral Resources and Energy, Gwede Mantashe, is a 

former coal miner and he has unapologetically argued the corner of the coal 


A green hydrogen industry 

could transform South Africa. 

industry, pointing out that South 

Africa still has vast reserves of coal. 

This fact, and the need to 

make what has been called a 

“just transition” to green energy, 

underpin the creation of the 

Presidential Climate Change 

Coordinating Commission (PCCCC). 

Led by Valli Moosa, a former 

minister of the environment who 

famously campaigned against 

the proliferation of shopping 

bags, the PCCCC aims to look 

beyond the jobs lost by a switch 

to greener energy options and 

consider issues such as the effects 

of climate change on vulnerable 

communities. Renewable energy 

development zones (REDZ) are 

intended to contribute to mine 

rehabilitation and to support a just 

energy transition. 


48

Hydrogen and hybrids 

One of Earth & Wire’s projects intends 

producing e-methanol by combining 

green hydrogen with a synthesis gas. 

Instead of using fossil fuels to make the 

e-methanol, this process will be powered 

by renewable energy and use elements 

such as seawater, biomass and solid waste. 

ENERTRAG South Africa, with experience 

around the world and in partnership with 

Sasol, are the technical partners on the 

project, which will be located in Humansdorp in the Eastern Cape where 

a number of wind farms are situated. 

South Africa’s huge reserves of platinum group metals (PGMs), allied 

to plentiful sun and wind, gives the country a headstart in terms of 

establishing a green hydrogen industry. Daily Maverick 168 ran a story 

at the end of July 2021 titled “Hydrogen economy may be a saviour”. 

The news article reported on the establishment of a R103-million PGM 

manufacturing facility in Gauteng by Isondo Precious Metals. The article 

quotes the acting chief director for Special Economic Zones (SEZs) in 

the Department of Trade, Industry and Competition (the dtic), Thami 

Klassen, welcoming the facility as it would be hosting “manufacturing 

processes of platinum group metal components for the fuel cell and 

electrolyser industries that underpin the emerging green hydrogen 

industry”. Production is expected to begin in the middle of 2022. 

A R2-billion hydrogen fuel cell project has begun in Mpumalanga under 

the leadership of Mashudu Ramano, a former chairman of several companies 

including Astron Energy. Seed funding has been provided by the Industrial 

Development Corporation (IDC) and the Development Bank of Southern 

Africa. Anglo American is investigating the feasibility of creating a “hydrogen 

valley” from its PGM mine in Limpopo to the coast of KwaZulu-Natal. One of 

the companies involved in the study, French firm Engie, estimates that the 

local market for green hydrogen could be R142-billion annually by 2040, with 

the export market worth 10 times that (Sunday Times). 

The 128MW Oya Energy Hybrid Facility being built near Matjiesfontein 

in the Western Cape is unusual. Falling within the Komsberg Renewable 

Energy Development Zone (REDZ), the project is owned by G7 renewable 

energies and will use a hybrid controller to dispatch power to the grid 

when it is needed from whichever of the technologies is producing 

power; wind turbines or solar PV arrays supported by lithium-ion batteries. 


IPP projects: www.ipp-projects.co.za 

National Energy Regulator of South Africa: www.nersa.org.za 

South African Independent Power Producers Association: 

www.saippa.org.za 

South African Wind Energy Association: www.sawea.org.za 

Credit: BTE Renewables 

South Africa’s acclaimed 

Renewable Energy Independent 

Power Producer Procurement 

Programme (REIPPPP) attracted 

about R200-billion in committed 

investments, mostly in solar and 

wind power, in just five years. 

Research has shown that there 

will be an electricity supply gap of 

approximately 2 000MW between 

2019 and 2022. The Oya project is 

part of a more recent addition to 

the REIPPPP, the Risk Mitigation IPP 

Procurement Programme. 

A majority of wind projects 

have been allocated to the 

Eastern Cape, but approximately 

60% of the solar projects so far 

allocated in the programme 

have been in the Northern Cape, 

the nation’s sunniest province. 

Projects such as Kathu Solar Park 

(100MW), a concentrating solar 

power (CSP) project, and the 

Roggeveld Wind Farm (147MW) 

are indicative of the large scale 

of most of the energy generation 

that is being rolled out. 

Gas is also in the mix. The 

Department of Energy is targeting 

the procurement of 3 126MW 

and intends spending R64-billion 

on port, pipeline, generation 

and transmission infrastructure 

at three key ports, Richards Bay, 

Coega and Saldanha Bay. ■ 

49 


COP 26 

"Partnership aims to accelerate 

the decarbonisation of South 

Africa's economy" 

“South Africa welcomes the commitment made in the Political 

Declaration to supporting the implementation of our revised Nationally 

Determined Contribution, which represents our country's ambitious 

effort to support the global battle against climate change. 

“We look forward to a long term partnership that can serve as an 

appropriate model of support for climate action from developed to 

developing countries, recognising the importance of a just transition to 

a low carbon, climate resilient society that promotes employment and 

livelihoods.” 

Subject to concurrence on the investment framework, and in line with 

budgetary procedures and consensus on the use of funds and terms 

on which finance may be provided, mobilize an initial amount of 

approximately $8.5 billion over the next three to five years through a 

combination of appropriate financial instruments, which may include 

but is not limited to multilateral and bilateral grants, concessional 

loans, guarantees, and private investments, and technical support to 

enable the just transition, with a view to longer-term engagement. 

Source: UK News Today Nov 2021 

President Cyril Ramaphosa: COP26 must ensure a just transition that leaves 

no one behind 

"Net Zero emissions 2050" 

South Africa is developing plans to enable a just move to net zero. Our 

electricity sector, which contributes 41 percent of our greenhouse-gas 

emissions, will be the first phase. We will be decommissioning and 

repurposing coal-fired power stations and investing in new, low-carbon 

generation capacity. We will also pursue green industrialisation 

opportunities such as electric vehicles and fuel cell production that 

stimulate job creation and economic growth. 

Source: UK News Today Nov 2021

Source: Northern Cape GH2 Strategy 2021 

"Launch this exciting development 

for the Northern Cape." 

Minister Barbara Creecy: Launch of Northern Cape 

Green Hydrogen Strategy and Sasol as anchor investor 

The new roadmap builds on what has been achieved in the past 10 years and moves us 

from research and development to manufacturing and commercialization. 

Local manufacturing of hydrogen products and components will contribute towards job 

creation and skills development and enhance economic transformation that will benefit 

the previously marginalized sectors of society, particularly women and youth, especially in 

a province, like the Northern Cape, which is one of the poorest in terms of demographics 

in South Africa. 

As we have heard this afternoon, the intention is to have a dedicated green grid, 

electrolyzer park, and green hydrogen-related Special Economic Zone to manufacture 

green hydrogen industry-related goods and services in the Northern Cape. 

We are particularly excited by this development which aligns with the DFFE’s declaration of 

the expanded western Strategic Energy Corridor in the Northern Cape. Over the past few 

years, our department undertook Strategic Environmental Assessments to identify among 

others renewable energy development zones (REDZ) and strategic energy corridors, in 

which large-scale grid infrastructure expansion could be incentivized. 

This was done to proactivity identify environmental sensitivities and assist in orientating 

infrastructure development away from areas of high environmental sensitivity, allowing for 

a streamlined environmental authorization process that speeds up development while 

maintaining the highest environmental protection. 

Through this process, we have heeded the call from the His Excellency President 

Ramaphosa to cut red tape and to halve the authorization timeframe for transmission 

scale electricity grid infrastructure and reduce the timeframe for electricity grid 

development from 7 to 3 years by allowing a pre-negotiated route to be submitted for 

authorization which significantly simplified the servitude negotiation process.

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OVERVIEW 

Oil, gas and petrochemicals 

Offshore gas discoveries could boost South Africa’s economy. 


A helium project in the Free 

State is set to join an elite club. 

The Virginia Gas Project is ramping up. Credit: Renergen 

South Africa has set a target of 3 000MW of gas power in the 

national grid by 2030. This is laid out in the country’s most 

recent Integrated Resources Plan (IRP), which guides national 

targets in each of the various methods of power generation 

and which is tilted towards renewable energy. 

Although there have been encouraging finds off the southern 

coast of South Africa and prospects for shale gas appear to be good 

in the country’s interior, it has been pointed out by the commercial 

growth director of GE Gas Power for Sub-Saharan Africa, Michael 

Konadu, that these prospects are yet to be commercialised. When 

this fact is added to the logistical difficulties and security concerns 

surrounding the gas resource available from Mozambique, Konadu 

argues that liquified natural gas (LNG) should be the vehicle for 

meeting the objectives of the IRP and the national Gas Master Plan. 

His preferred method would be for a consortium to assume project 

risk, including terminal and plant infrastructure. The state could take 

a stake through Transnet or the Central Energy Fund. 

Whether it is via new imports of LNG or the development of the 

Brulpadda and Luiperd prospects off the southern coast, there is no 

doubt that new feedstock is needed for the PetroSA GTL refinery at 

Mossel Bay. Commissioned in 1992 as the world’s first gas-to-liquids 

(GTL) refinery, it plays an important role in the regional and national 

economy but it has effectively run out of feedstock. 

The entity is considering 

extracting geothermal energy 

from nine of its wells that are 

now depleted of gas as a way of 

fending off decommissioning. 

Total E&P South Africa BV, 

the operator and majority 

stakeholder in the joint venture 

which is drilling, has not yet taken 

a decision about what further 

steps it might take now that 

the first drilling operations have 

been shown to be successful. The 

drilling was successful enough 

to warrant the return of the 

semi-submersible rig Deepsea 

Stavanger from Norway to South 

Africa and in August 2020 the rig 

made more discoveries at the 

nearby Luiperd prospect. The 

JV partners are Qatar Petroleum 

International Upstream LLC, CNR 

International and Main Street 

1549 Proprietary Ltd. 

Petroleum Agency South 

Africa (PASA), which encourages 

exploration and regulates the 

oil and gas industry, has noted 

the significance of international 

oil companies committing to 

exploration off South Africa’s coast. 

Another drilling project 

was launched in September 

2020 in the Karoo. The 

Council for Geoscience (CGS) 

announced phase two of the 

Karoo Deep Drilling and Geoenvironmental 

Baseline Project 


54

Offshore gas finds could revitalise the gas-to-oil facility at Mossel Bay. Credit: PASA 

(KDD) in Beaufort West. The geoscientific research project in the 

Karoo Basin is aimed at developing a geo-environmental baseline 

model with a focus on assessing the potential environmental 

impacts of shale gas development. 

A Gas Utilisation Master Plan (GUMP) is being developed as a part 

of national energy policy. Private companies are responding to this 

changed environment. 

Tetra4, a subsidiary of Renergen, owns rights to a field of liquified 

natural gas (LNG) in the Free State and has started ramping up to 

the next (production) phase of the Virginia Gas Project. The pilot 

compressed natural gas (CNG) plant was constructed in 2016. 

The helium concentration tested by Renergen is at an excellent 

level and in line with early indicators. So good were the helium flow 

results announced in early November 2021 that the company’s 

share price shot up by 14.3% on a single day. The aim in phase one 

is to produce 350kg/d of helium via cryogenic liquification and to 

construct a commercial LNG plant. When the project comes on 

stream, it will become one of just 16 such facilities in eight countries 

globally. Production of helium is expected to grow to five tons in the 

second phase. 

The SpaceX rocket that launched in 2021 used 11 tons of helium 

to propel itself off the ground. Every computer microchip in the 

world is produced in the presence of helium and the world uses 85 

tons of it every day. Although it’s a very useful element, it’s also a very 

difficult element. Renergen has had to import much of its equipment 

and many skilled personnel. 

First to respond to the potential of this gas find was the logistics 

sector. Bulk Hauliers International Transport (BHIT) and South African 

Breweries signed agreements to take LNG to fuel some of its trucks, 

which should lead to lower operating and maintenance costs. 


National Energy Regulator of South Africa: www.nersa.org.za 

South African National Energy Association: www.sanea.org.za 

South African Petroleum Industry Association: www.sapia.co.za 

Renergen has signed an 

agreement with TotalEnergies 

for distribution and sale and 

the potential of another 

market was revealed in 2021 

when Renergen agreed to sell 

LNG to glass manufacturer 

Consol. Bespoke depots will 

be developed. 

International chemicals 

and energy company Sasol 

has several large plants in 

Mpumalanga and the Free State. 

Sasol Gas is one of the four Sasol 

operations at Secunda, supplying 

natural gas to Sasol Synfuels and 

buying Sasol Synfuels’ methanerich 

pipeline gas. Air Liquide 

Large Industries SA, a subsidiary 

of French company Air Liquide, 

has purchased Sasol’s oxygen 

production site in Secunda for 

R8.5-billion. Sasol is selling a 

number of its assets in an effort 

to reduce debt. 

Most of the oil that feeds the 

country’s four crude-oil refineries 

is imported. The refineries are 

in Cape Town, Sasolburg and 

Durban (two). In addition to 

South Africa’s crude-oil refineries, 

natural-gas conversion plant, 

coal-to-fuel and gas-to-liquid 

crude-oil refineries, Sasol 

produces fuel from coal at its 

Secunda facility. ■ 

55 


FOCUS 

Gas will help South Africa 

achieve net zero 

Gas can drive an economic recovery at the same 

time as building a bridge to a clean energy 

future, writes Petroleum Agency South Africa 

CEO, Dr Phindile Masangane. 

The biggest threat to humanity is climate 

change and the biggest threat to South 

Africa’s social stability is the high unemployment 

rate, which has primarily been 

caused by economic stagnation. 

As the global economy recovers from the 

devastating effects of Covid-19, demand for oil and 

gas has gone up significantly. If there was ever a 

need for proof that oil and gas still drive the global 

economy, recent statistics demonstrate the trend. 

The world’s developed economies 

industrialised on the back of oil and gas production 

and use. Now, just as Africa is on the cusp of being 

a significant gas producer and is making plans to 

use such gas for power generation, industrialisation 

and economic growth, the negative effect of 

greenhouse gas emissions on the environment has 

become undeniable. 

The urgency for action to mitigate the risk 

of climate change is no longer debatable. As a 

responsible global citizen South Africa must take 

steps to reduce its carbon footprint. 

The UN Framework Convention on Climate 

Change was established in 1992 to coordinate the 

global response to mitigate the threat of climate 

change, and specifically to get countries to commit 

to policies and plans that will ensure that the 

average global temperature rise is kept less than 

1.5°C above pre-industrial levels. 

The International Energy Agency (IEA) proposes 

that to achieve this goal the world’s energy sector 

must reach net zero emissions by 2050. 

Country-specific pathways 

The IEA “Net Zero by 2050” report acknowledges that 

there will be a differentiated approach to a clean 

energy future, taking into consideration the cost of 

the new clean energy technologies and the economic 

consequences of transitioning for each country. 

The IEA emphasises that each country must 

develop its own pathway to a net zero emission future. 

South Africa’s economy has been predominantly 

powered by coal, which is also a significant 

contributor to the country’s economy in terms of 

GDP as well as employment. Of all 

primary energy resources coal is the 

most carbon-intensive, and South 

Africa therefore has a relatively 

high carbon-intensive economy, 

contributing about 1% of annual 

global greenhouse gas emissions. 

In addition to coal, South 

Africa imports oil, gas and petroleum 

products for its energy needs as the 

upstream petroleum industry is still at 

a nascent stage. 

The two recent world-class 

gas discoveries in the Outeniqua 


56

asin off the south coast of the country are the 

biggest petroleum discoveries made in South 

Africa. 

The development of these discoveries has 

the potential to replace more than 2 300MW of 

diesel-fired electricity generation in Gourikwa, 

Dedisa and Ankerlig, thereby reducing the carbon 

emissions from these plants by more than 50% 

while eliminating sulphur oxide and nitrogen 

oxide emissions, which are also harmful to the 

environment. Gas is therefore an obvious bridge to 

a lower carbon future in South Africa. 

Importantly, these gas discoveries could 

restore the gas-to-liquid refinery in Mossel Bay 

to full production and profitability, saving about 

1 200 direct jobs. A complete shutdown and 

abandonment of this refinery would not only lead 

to job losses at the refinery, but the effects would 

reverberate throughout the town of Mossel Bay 

and the Southern Cape region, since the refinery 

contributes about R2-billion a year, or 26% of the 

Mossel Bay economy, and 6% to the Southern Cape 

economy when producing at full capacity. 

The Petroleum Agency South Africa awaits 

the licensee of these gas discoveries submitting 

its production right and environmental 

authorisation applications when the exploration 

right expires, or earlier. The agency expects the 

licensee to use world-class technologies and 

standards to minimise the effects of the gas and 

gas condensate production on the environment, 

while maximising the in-country benefit or local 

content from this development to support South 

Africa’s economic recovery. 

These discoveries could indeed support both 

the country’s economic recovery and its transition 

to a clean energy future. ■ 

Credit: Anton Swanepoel 

Exciting discovery off Southern Cape coast 

In 2019 Total and its partners created a stir with the 

announcement that gas condensate had been found at a 

site called Brulpadda off the coast of Mossel Bay. 

In 2020, the nearby Luiperd prospect in Block 11B/12B 

delivered more exciting news. The block, in the Outeniqua 

Basin 175km off the southern coast, covers an area of 

about 19 000km² in water depths of 200m to 1 800m. The 

exploration was done by the semi-submersible rig Deepsea 

Stavanger (pictured), which journeyed twice from Norway 

to lead the exploration projects. 

The Luiperd prospect is the second of five prospects in 

the group. Light oil and gas condensate were discovered 

in significant quantities. The exploration drilling is in deep 

waters similar to where the gigantic Mozambique Rovuma 

Basin gas discoveries were made in 2011 and 2012. 

These discoveries have exciting repercussions for 

the development and growth of South Africa’s oil and 

gas sector. If the local gas market is to take off and thrive, 

significant drilling has to take place. 

PASA, which encourages exploration and regulates 

the oil and gas industry, has noted the significance of 

international oil companies committing to exploration 

off South Africa’s coast. Increased confidence by such 

companies can only lead to growth in the industry and with 

the gas finds off Mozambique there are sure to be more 

companies interested in South Africa’s potential. 

In addition to adjudicating on coastal fields, the agency 

has awarded coalbed-methane-gas exploration rights in 

KwaZulu-Natal and natural gas exploration permits in the 

Free State. 


OVERVIEW 

Water 

Three-year programme will tackle dam storage problems. 

Darlington Dam in the Sundays River valley, Eastern Cape. Credit: Addo Elephant National Park 

Water loss in a water-scarce country is a serious 

business. The National Department of Water and 

Sanitation (DWS) has appointed the Water Research 

Commission (WRC) to develop and manage the 

National Siltation Management Strategy for Large Dams. More 

than 90% of the country’s total storage capacity is carried by 

321 large state dams, most of which are subject to serious 

sedimentation, which greatly reduces their carrying capacity. 

Expectations are that South Africa will have a 17% water deficit by 

2030 and so the matter is urgent. Three government water schemes 

are the target of the pilot plan: Hazelmere Dam in KwaZulu-Natal; 

Darlington Dam in the Eastern Cape; and Welbedacht Dam in the 

Free State. Key deliverables include creating models for sustainable 

dredging and decision-making. The programme is intended to be 

complete by 2023. 

Leaking pipes account for a large portion of the water lost to 

South African municipalities in trying to serve their households 

and businesses. The simple expedient of reducing water pressure, 

which the City of Cape Town introduced during the period of 

severe water shortage that raised the spectre of “Day Zero”, 

reduced water use by 40%. 

Supplying water to households and businesses has often been a 

task beyond the capabilities of some of South Africa’s municipalities. 

The Municipal Infrastructure Support Agency (MISA) falls under 


Managing water pressure can 

drastically reduce consumption. 

the National Department for 

Cooperative Governance and 

Traditional Affairs and will assist 

municipalities to plan for, provide 

and maintain infrastructure. 

The first action of MISA was to 

commission 81 engineers and 

town planners to get to work in 

areas that need the most help. 

In the North West, the 

revitalisation of the Vaalharts- 

Taung Water Irrigation Scheme 

will double the land available to 

emerging farmers, create more 

than 10 000 jobs during its 

implementation, resolve water 

shortages in local municipalities 

and provide certainty for 

producers of fresh produce. 


58

OVERVIEW 

The project was gazetted as one of the Strategic Integrated 

Projects (SIPs) in 2020 and falls under the Presidential Infrastructure 

Coordinating Commission (PICC). The existing Vaalharts Irrigation 

Scheme is one of the largest irrigation schemes in the world, 

covering 39 000ha under irrigation, and extending it to Taung 

in the North West will give it even greater reach. The scheme 

currently has 1 000km of concrete-lined canals and more than 

300km of concrete drainage. 

The Vaalharts Water User Association is headquartered in Jan 

Kempdorp, a town in the Northern Cape right on the border of the 

North West and at the centre of the scheme’s area of operations. 

The DWS has released a master plan in response to the severe 

droughts that have affected the country in recent years. It calls for 

annual investment for a decade of R3.3-billion in infrastructure to 

achieve water security. This is a figure that can only be achieved with 

the help of the private sector. 

The National Cleaner Production Centre South Africa (NCPC) 

is the technical partner for the water use part of Phase 2 of the 

Strategic Water Sector Cooperation between the governments of 

Denmark and South Africa. The NCPC, which runs the Industrial 

Water Efficiency project, has found that more efficient use of energy 

(a key focus area of its work) has also led to less water being used in 

production processes. 

Technology and innovation 

A new kind of water filtration system has been pioneered by a water 

entrepreneur from Limpopo, a system which puts macadamia nut 

shells to use. The brainchild of Murendeni Mafumo, the idea was 

first put into action in 2018 and has been used in schools and 

rural communities by Kusini Water. Powered by solar power, the 

purification system uses a carbon filter that is made from macadamia 

nut shells. 

Simpler technology is giving the pupils at a school in the same 

province access to drinking water. Students from the University 

of Pretoria’s Department of Geography, Geoinformatics and 

Meteorology have helped to build a net in the mountains where 

Tshiavha Primary School is located. Fog is captured by a big net 


National Cleaner Production Centre South Africa: www.ncpc.co.za 

National Department of Water and Sanitation: www.dwa.gov.za 

South African Water Research Commission: www.wrc.org.za 

Water Institute of South Africa: www.wisa.org.za 

and channelled into tanks by 

a gutter running along the 

bottom of the net. About 2 500 

litres of water is captured per 

day which means that there is 

enough to share villagers. 

The province of KwaZulu-Natal 

is taking a lead in desalination 

technology. Richards Bay has 

installed a desalination plant next 

to the municipal water treatment 

plant at Alkanstrand. The first 

mobile sea water purification unit 

in South Africa, it comprises 10 

containers and is located adjacent 

to the water treatment plant at 

Alkantstrand. It can deliver 10 

megalitres of drinking water. 

A plant that makes water 

from air has been launched. 

Aqua Air Africa has established 

an atmospheric watergeneration 

plant at Ga-Rankuwa 

near Pretoria and is producing 

about 10 000 litres per day 

through a process that involves 

the condensation of water 

vapour into liquid. 

In an attempt to reduce the 

amount of water sucked up by 

alien plants, Coca-Cola aims to 

recover nearly three-billion litres 

of water through the removal of 

invasive plants. 

Another response to the 

municipal problem is a new 

national strategy which gives 

a bigger role to well-resourced 

water boards such as Umgeni 

Water and Sedibeng Water. In 

terms of the National Water 

Resource Strategy, catchment 

area management agencies have 

been established to oversee 

water resource management on 

a regional basis. ■ 


INTERVIEW 

Coca-Cola Beverages South Africa – 

taking transport initiatives to another level 

Hamish Narsey, Regional Logistics Manager for CCBSA’s Coastal region, 

outlines his company’s comprehensive approach to transport. 

Please tell us the scope of your activities? 

In CCBSA’s Coastal region, we deliver within the KwaZulu- 

Natal and Eastern Cape Provinces as well as parts of 

the Western Cape, up to and including Beaufort West. 

We operate a number of vehicles which includes a 

combination of truck and trailer sizes. 

Hamish Narsey 

BIOGRAPHY 

Hamish Narsey started his career at 

CCBSA in 2000. He has progressed 

through the ranks within the operations 

environment and has gained 

vast experience in warehouse and 

inventory management. He has 

fulfilled various operational and 

strategic management roles and is 

well-travelled through benchmarking 

among the best Coca-Cola 

manufacturers and distributors in 

the United States. He is currently responsible 

for four sites, two of which 

are in Durban, one in Gqeberha and 

one in East London. 

How many trips are undertaken in an ordinary month? And 

how was that affected by Covid-19? 

We take on approximately 4 000 trips per month. Our number 

of trips remained the same during lockdown, with volumes 

fluctuating as we transitioned through the different lockdown 

alert levels and restrictions. 

How important is road safety to CCBSA? 

Road safety is essential in maintaining our social licence to 

trade, and the business therefore embarks on various road safety 

initiatives. These initiatives include a strong focus on vehicle 

safety, driver safety, system improvement, compliance as well as 

monitoring and auditing. 

We also have the Respect the Road Campaign, which is 

a road safety campaign that runs twice a year with our heavy 

motor vehicle and light motor vehicle company users and 

extends to Owner Drivers and Local Distribution Partners. 

This is generally run prior to the Easter and December holiday 

periods, with ongoing awareness throughout the year. 

In what ways does CCBSA partner with government to 

promote road safety? 

Aligned to our focus on system improvement, CCBSA built two 

driver simulators. The simulator incorporates everyday, real-life 

challenges faced by drivers on South African roads, such as 

protest action, changing weather conditions, third-party driver 

behaviour and adapting driving behaviour to changing road 

conditions. CCBSA often partners with government on road 

safety campaigns where the simulator is used. 


INTERVIEW 

As part of our focus on compliance, CCBSA 

has retained our Road Transport Management 

System (RTMS) certification and was recertified 

in July 2021. 

The benefits of accreditation include improved 

road infrastructure and road safety, better 

maintenance management control, improved 

load accuracy, improved transport productivity 

and improved social responsibility. The RTMS 

certification is also a prerequisite for applying to 

run Performance Based Standards (PBS) trailers in 

South Africa. 

What are PBS trailers? 

PBS trailers are 27.9 metres long and can transport 

44 pallets, as compared with the conventional 

30-pallet trailer. 

How does the introduction of a bigger 44-pallet 

PBS contribute to sustainability? 

By having more pallets at a time, it means that we 

have fewer trucks on the road, fewer shipments 

are transported per annum and fewer kilometres 

are travelled every year, all of which contributes to 

a reduction in CO2 emissions. ■

OVERVIEW 

Engineering 

Renewable energy projects are coming on stream. 


Bosch Holdings celebrated an 

anniversary in 2021. 

Bosch Ulwazi has been certified by the Engineering Council of South 

Africa (ECSA) as a certified training academy. Credit: Bosch Holdings 

Bosch Holdings celebrated its 60th anniversary in 2021. 

Having started with the design of the sugar terminal in 

the Port of Durban, the group now has eight companies 

and offices in Kenya, Brazil and the UK. Head office is 

in Durban. Bosch Projects does consulting engineering and 

project management in a range of sectors but has retained the 

company’s historic ties with the sugar industry, designing and 

supplying specialist production equipment. Other companies 

cover training, technology services and financial advisory. 

Aveng reported its first profit in seven years in 2021. One of 

South Africa’s biggest engineering companies, Aveng managed 

to turn the corner through the activities of its mining division in 

South Africa and its Australasian company, McConnell Dowell. 

Several of the country’s other big companies went into 

business rescue, including Group Five, Basil Read and Esor. 

These companies delisted from the JSE but although Covid-19 

upset the plans for business rescue, that option continued to 

be preferred into 2021, rather than liquidation. Like Aveng, 

Murray & Roberts and WBHO rely heavily on offshore contracts 

for revenue. Murray & Roberts has completed its transition from 

being a South African company focussing on contracting to a 

multinational engineering and construction group with a focus 

on natural resources markets. 

The CEO of Consulting Engineers South Africa (CESA) has 

called for a united front to help the sector fight its corner. 

Chris Campbell noted in a Mail & Guardian article in 2021 that 

the country has “countless industry bodies” including, but not 

limited to, ECSA, SAICE, SABTACO, NSBE and SAIEE. Campbell 

referenced an earlier overarching body, the South African Forum 

for Engineering (SAFE) as a 

model. Such a body would be 

able to take an industry-wide 

position on issues such as 

Cuban engineers working on 

South Africa’s water system, a 

contentious issue that was in 

the spotlight in 2021. 

The Engineering Council 

of South Africa (ECSA) 

regulates the industry through 

professional registration and 

the standardisation of tertiary 

qualifications. South Africa is 

the only African member of 

the International Engineering 

Alliance (IEA). 

An Investment and 

Infrastructure Office has been 

created in the Presidency. It is 

headed by the former Gauteng 

MEC for Economic Development, 

Dr Kgosientso Ramokgopa. In 

2020, 51 infrastructure projects 

with a total investment value 

of more than R340-billion were 

gazetted and hopes are high that 

this initiative will provide a boost 

for engineering firms. 

A study carried out by 

KMPG found that spending on 

infrastructure resulted in additional 

economic activity worth R26-billion 

and created 92 000 direct jobs. 

The Renewable Energy 

Independent Power Producer 

Procurement Programme 

(REIPPPP) has created an entirely 


62

OVERVIEW 

new industry in less than seven years, with investment of about 

R200-billion in solar parks and wind farms. This has created many 

opportunities for engineers. 

Marine repair and engineering form a significant sector in the 

Western Cape and KwaZulu-Natal, with established companies such 

as EBH South Africa offering comprehensive services. Both KwaZulu- 

Natal ports are expanding and will continue to attract engineers. 

Dormac, which is headquartered in the Bayhead area of the Port 

of Durban, is best known for its marine engineering but it offers 

specialised services to the sugar industry and provides machinery 

for industrial giants like Toyota and Defy. 

Training 

The Engineering Council of South Africa has a programme where 

trainees can earn certificates in specific disciplines from a range 

of institutions. The qualifications are in line with the council’s Exit 

Level outcomes. Six of South 

Africa’s biggest construction 

companies have established a 

R1.25-billion skills fund. 

Several partnerships 

between the public and private 

sectors are trying to address the 

skills deficit. One example is the 

partnership that Wits’ National 

Aerospace Centre has with 

Boeing and Airbus. 

The Skills Development 

Amendment Act is intended 

to improve the situation. 

Universities, universities of 

technology and companies are 

increasing their focus on the 

training of engineers. ■ 


Consulting Engineers South Africa: www.cesa.co.za 

Engineering Council of South Africa: www.ecsa.co.za 

South African Consulting Engineering Firms: www.consultsa.co.za 

Southern African Institution of Civil Engineering: www.civils.org.za

OVERVIEW 

Construction and property 

Covid-19 has shaken up sector priorities. 

Covid-19 provided a sharp shock for many business 

sectors, but with the move towards working from 

home accelerated by the pandemic, none is going to 

have to look harder at its models for sustainability than 

the office rental sector. 

Logistics, often taken for granted in normal times, became an 

even more important component of the supply chain during the 

global lockdown and in the months that followed, with the second 

half of 2021 characterised by blockages and delays. In that context, 

the news that Fortress REIT had successfully let more than 100 000m² 

of logistics space in KwaZulu-Natal, was significant. 

The company also announced its intention to develop more 

than a million square metres of logistics assets over three years, 

transforming the weighting of its portfolio to two-thirds logistics. 

Fortress’s Clairwood Logistics Park, which has port access, signed 

up two big clients in 2021, Kings Rest Container Group and African 

Sugar Logistics. Fortress’s new Cornubia Logistics Park (pictured) has 

the advantage of being near the King Shaka International Airport. The 

same locational logic applies to Eastport Logistics Park, which is close 

to OR Tambo International Airport in Gauteng, where Fortress has 

signed its biggest logistics development to date, a joint venture with 

Pick n Pay which is establishing another inland distribution centre. 

The clients of Equites, a company which focusses on logistics 

property, include Amazon, Super Group, HDL and DSV. Equites is the 

only specialist logistics property company listed on the JSE. In six 

years, its portfolio has grown from R1-billion to R15-billion. There are 

more than 30 real estate investment trusts (REITs) on the JSE and they 

generally deliver good value. 

FNB, which publishes a regular property barometer, has done an 

in-depth analysis of previous crises to help understand what may 


Construction Industry Development Board: www.cidb.org.za 

SA Reit Association: www.sareit.co.za 

South African Property Owners Association: www.sapoa.org.za 


Logistics property is on a 

growth path. 

occur in the post-Covid property 

market. According to John Loos, 

a property strategist at FNB 

Commercial Property Finance, 

the most vulnerable sector 

is likely to be Retail Property. 

Smaller neighbourhood centres, 

with more essential items and 

greater convenience, will be less 

vulnerable. 

Statistics SA has found that 

the percentage of South Africans 

living in flats has risen markedly. 

Whereas 26 out of 100 approved 

plans in 2013 were for flats, 

this figure reached 59 in 2016. 

Although the total number 

of people living in flats is still 

relatively small (5.4%), this figure 

will rise as urbanisation increases. 

An innovative scheme to 

build a new township in Gauteng 

is backed by a retirement fund. 

The Transport Sector Retirement 

Fund is building an integrated 

settlement in the Sedibeng 

District Municipality south of 

Johannesburg. The R2.7-billion 

development includes a shopping 

centre and will include a mix of 

housing types. ■ 


64

OVERVIEW 

Manufacturing 

Vaccine manufacturing is accelerating. 

The Aspen Pharmacare facility in Gqeberha will make 

hundreds of millions of doses of the Johnson & Johnson 

Covid-19 vaccine for South Africa and Africa. 

A consortium of development finance organisations, 

including the World Bank’s International Finance Corporation, 

made €600-million in financing available to the South African 

company in the course of 2021 to assist it in ramping up 

production of the vaccines. By 2022, the facility should be 

making about 500-million doses annually. 

In Johannesburg, global pharmaceutical company Mylan has 

purchased a manufacturing site, previously used by Ascendis 

Health, to make antiretrovirals to cater to the seven-million 

South Africans living with HIV. The Isando factory will produce 

effervescent tablets, semi-solid and hard capsules and pills. 

A new tender for a national supplementary HIV/Aids drug 

tender, which was previously awarded to foreign companies, is to 

be issued, opening up opportunities for local manufacturers such 

as Cipla Medpro. The three-year tender is worth R18.3-billion. 

Pirates off the west coast of Africa are driving an increase in 

boatbuilding in South Africa. Companies like Paramount Marine 

which specialise in security boats are receiving many orders. In 

August 2021, the company announced that its Cape Town facility 

was making 26 boats for a contract price of more than R850-million. 

PG Bison, a subsidiary of KAP Industrial Holdings, is investing 

more than R2-billion at its plant in Mkhondo in Mpumalanga 

(pictured). With operations in four provinces ranging from 

forestry to the manufacture of medium-density fibreboard 

(MDP), particleboard and value-added products, PG Bison is also 

building a new MDP plant in Mpumalanga to complement its 

existing Gauteng facility. 

TFG, whose South African brands include TotalSports, 

Markhams and Foschini, has a five-year plan to double its 

manufacturing capacity. Having purchased Prestige Clothing 

Maitland and Prestige Clothing Caledon and spent R75- 

million on expanding the factory in Caledon, TFG now plans to 

significantly increase the percentage of locally-made clothing 

items from the current level of 35% to 55%. 


Chemical and Allied Industries’ Association: www.caia.co.za 

Manufacturing Circle: www.manufacturingcircle.co.za 

South African Textile Federation: www.texfed.co.za 


PG Bison is spending on 

expanded capacity. 

Credit: PG Bison 

The Manufacturing and 

Competitiveness Enhancement 

Programme (MCEP) of the 

Department of Trade, Industry 

and Competition (the dtic) 

has disbursed grants which 

have resulted in 230 000 jobs 

being “sustained”. Because 

of the Clothing and Textile 

Competitiveness Programme, 

that sector currently now 

employs around 95 000 

workers, contributing 8% to 

manufacturing GDP and 2.9% to 

overall GDP. In the leather sector 

22 new factories have been 

opened, supporting 2 200 jobs. 

In the Western Cape, this 

revival is reflected in member 

companies of the Cape 

Clothing and Textile Cluster 

hiring 35% more staff in four 

years. About 23 600 people 

are employed in the province 

and exports from the Cape 

amounted in 2017 to R4.4- 

billion with sales up by 34% 

above inflation. ■ 


OVERVIEW 

Transport and logistics 

The private sector is set to play a bigger role in transport. 


Budgets for spending on 

public transport are increasing. 

One of the two new helicopters purchased for the transfer of pilots at Richards 

Bay and Durban. South Africa was the first country to use helicopters to 

transfer pilots. Half of the team of 26 pilots are women. Credit: TNPA 

When the state tried to revive branch rail lines a decade 

ago, the sticking point was who was to pay for the 

infrastructure upgrade. An announcement in 2021 

by the Minister of Public Enterprises Pravin Gordhan 

that concessions were back on the table was accompanied by the 

news that only fully-repaired lines were under discussion, greatly 

reducing the risk for potential private partners. 

Bids are to be made on four lines initially, with state utility 

Transnet to be responsible for maintenance. The private operators 

will pay a fee every time they use the line. Minerals and agricultural 

produce in remote areas are likely to be the first target for private 

companies looking to assist the state in moving a greater proportion 

of the country’s freight from road to rail. 

Another area of proposed private sector participation with 

the Transnet group is in the running of the nation’s ports. 

Congestion and under-investment have meant that South 

Africa’s ports are not as competitive as they should be. A 

start has been made in that South Africa’s largest agricultural 

company has signed an agreement with Transnet to partner in 

upgrading grain facilities at two ports. 

However, there are much more ambitious plans in the 

offing. Transnet is calling for bids from global container terminal 

operators for the ports of Durban and Ngqura. The creation of 

Transnet National Ports Authority (TNPA) as an independent 

subsidiary, which took place in June 2021, is designed to assist 

in the process. 

Large amounts of money are to be spent on various forms of 

public transport in the short term. Investments in rapid transit systems 

in the big metropolitan areas of Johannesburg and Cape Town are 

now being followed by other South African cities such as Polokwane 

and Rustenburg, the Gautrain is looking to expand its routes, a taxi 

infrastructure programme is 

in place in some cities and the 

Passenger Rail Agency of South 

Africa has a plan to increase and 

upgrade its rolling stock. 

In Limpopo’s provincial capital 

of Polokwane, operations of 

the Leeto La Polokwane public 

transport system were launched 

in Transport Month, October 2021. 

In the North West, the Rustenburg 

Rapid Transport Project (Yarona) 

aims to integrate busses, taxis 

and improved pedestrian access 

throughout the city. 

The South African Department 

of Transport has several agencies 

and businesses reporting to it: Air 

Traffic and Navigation Services 

Company, ACSA, National Transport 

Information System, Road Accident 

Fund, South African Civil Aviation 

Authority, South African Maritime 

Safety Authority (SAMSA), South 

African National Roads Agency 

Limited (Sanral) and Passenger Rail 

Agency of SA (PRASA). 

Logistics 

Transnet Freight Rail (TFR) has 

had a new CEO since April 2020. 

Siza Mzimela, with a background 

in airlines and logistics, wants to 

divert road freight to rail, which 

currently attracts just 20% of 

South Africa’s general freight. 


66

FOCUS 

Durban is South Africa’s port, with increasing volumes of containers putting pressure 

on logistics operations. Credit:TNPA 

One of her goals is to find a South African manufacturer who can 

produce railway lines. 

Transnet Freight Rail’s operations represent about 80% of Africa’s 

rail infrastructure. With 25 000 employees TFR has specialist divisions 

for hauling coal and iron ore together with a general freight division 

which transports everything from grain to chemicals. 

While there is concern about the performance of South Africa’s 

ports in getting goods in and out in the best possible time, a record 

was set in 2020 by Transnet Freight Rail in transporting 66 train lots 

and 3 662 FEU reefer containers from Limpopo and Gauteng to the 

Port of Durban. The Citrus Growers Association was very happy about 

this, which represented a 20% on the previous year’s volumes and was 

some way towards the target of 15 000 reefer containers. 

A mandatory automated truck booking system has been 

introduced at Durban Container Terminal Pier 1 and Pier 2, while the 

Grindrod, FPT and Bulk Terminal depots have also piloted their own 

booking systems. 

Although Transnet Port Terminals and Transnet Freight Rail are 

vital to the smooth running of the loading systems, private operators 


African Rail Infrastructure Association (ARIA): www.aria.org.za 

Airlines Association of Southern Africa: www.aasa.za.net 

South African Heavy Haul Association: www.saheavyhaul.co.za 

of storage facilities and trucking 

companies also need to 

synchronise their operations. In 

Cape Town, efforts to work on 

decongestion include the City of 

Cape Town, the Cape Chamber 

of Commerce and Industry and 

the provincial government. 

The building of the Musina- 

Makhado Special Economic 

Zone (SEZ) will boost Limpopo’s 

role as a transport and logistics 

hub. The Musina Intermodal 

Terminal is 15km from the busy 

Beit Bridge border crossing. It 

will boost efforts to move cargo 

from road to rail. 

The Maputo Development 

Corridor is Africa’s most 

advanced spatial development 

initiative. Run by the Maputo 

Development Corridor Logistics 

Initiative (MCLI), the corridor runs 

from near Pretoria in Gauteng to 

Maputo in Mozambique. 

The Harrismith Logistics Hub 

at the Maluti-A-Phofung SEZ on 

the N3 is an inland port that 

can handle cargo containers 

and shift cargo from road to rail, 

reducing congestion and costs. 

Several airports are possible 

future regional freight nodes: 

Wonderboom Airport in Pretoria, 

Polokwane International Airport 

in Limpopo and Mafikeng 

Airport in North West Province. 

South Africa has 22 000km 

of railway lines and 747 000km 

of roads, 325 019 heavy-load 

vehicles and the road freight 

industry employs 65 000 drivers. 

The logistics and courier market 

is worth R10-billion. There are 

135 licensed airports in the 

country, 10 of which have 

international status. ■ 


INTERVIEW 

Building a safe and integrated 

transport system 

Limpopo MEC of Transport and Community Safety, Mavhungu Lerule-Ramakhanya, 

reflects on the role that aviation can play in creating an integrated system and 

promoting economic growth. 

What are the primary objectives of the Department of Transport and 

Community Safety and how does aviation fit in with them? 

Our mandate is to provide safe, sustainable and affordable integrated 

transport services for the citizens of our province. To intensify the fight 

against crime and to root out corruption. This must be done in a way 

that promotes socio-economic development. 

We have to provide for the safe transportation of goods, services and 

people. Road safety, mobility and vehicle safety and law enforcement on 

our roads are key. Aviation, and the Polokwane International Airport in 

particular, plays a vital role in positioning the province as a logistics hub. 

MEC Mavhungu Maureen 

Lerule-Ramakhanya, 

Department of Transport 

and Community Safety 

BIOGRAPHY 

Born in Makhado (formerly Louis 

Trichardt), Mavhungu was a 

community activist from a young age, 

heading various structures including 

the ANC Youth League before taking 

on leadership roles within the African 

National Congress at a provincial level. 

She is also a member of the South African 

Communist Party. She was appointed 

as Executive Mayor of Vhembe District 

Municipality before serving as Speaker 

of the Limpopo Provincial Legislature. In 

March 2020 she became the Member 

of Executive Council (MEC) for Transport 

and Community Safety. 

Are you promoting freight transport? 

In January we will be meeting with existing freight companies who have 

shown an interest in leasing space. 

How will the activities at the airport assist in road safety? 

Aviation fits in with the pillars of our strategy in terms of safety. When 

PIA is fully operational it will significantly reduce the load on our roads, 

especially at peak times like Easter and Christmas and make for a safer 

travel experience. 

Polokwane International Airport was downgraded because of safety 

concerns. How far have you gone in addressing the challenges? 

We have recently received our licence for operating for the year to 

come, so we passed the annual assessment. 

How are things looking for the coming months? 

Our department, together with the Limpopo Tourism Agency and the 

Limpopo Department of Economic Development, Environment and 

Tourism (LEDET), has agreed on a marketing strategy where we are targeting 

the holiday months to drive up numbers. 

Are there any plans for another airline to operate out of PIA? 

We are open to anyone. We are not in a position to offer monetary 

incentives, but we encourage any airline with a licence to come to 

Limpopo. The economic cluster at provincial level is working on a strategy 

on how best to introduce more cargo and freight businesses. 

Would the introduction of additional routes to Cape Town and 

Durban assist the province’s development? 

We have a lot of people who go to Durban and Cape Town for holidays 

and business. If those routes were available, it would help a lot.

FOCUS 

Commercial services resume at 


Hard work pays off and growth plans are in the works. 

The resumption of services at the 

Polokwane International Airport (PIA) 

on 18th October 2021 came as relief to 

people who had been deprived of access 

to one of the most reliable modes of transport due 

to a downgrade. 

Commercial activities were suspended pending 

the finalisation of severe safety findings by the 

South African Civil Aviation Authority (SACAA). It 

took the Gateway Airports Authority Limited (GAAL) 

about five months to fix the identified risks. 

Among the dignitaries who came to witness the 

resumption of commercial activities were Limpopo 

Department of Transport and Community Safety 

MEC Mavhungu Lerule-Ramakhanya, Economic 

Development and Tourism MEC Thabo Mokone, 

Polokwane Municipality Executive Mayor John Mpe, 

Limpopo Tourism Agency CEO Moses Ngobeni, 

Airport Acting CEO Paul Moloto and the GAAL 

board led by the Chairperson, Victor Xaba. It was a 

colourful welcome and the mood was jovial as the 

first flight from OR Tambo International touched 

down. The strength and readiness of emergency 

personnel was displayed. 

Passengers were warmly welcomed by a group 

of young people bearing huge banners. The first 

flight was a symbol of many more to follow after a 

commitment from Airlink. 

MEC Lerule-Ramakhanya thanked everyone 

who contributed to the reopening of the facility. 

The MEC had earlier assembled a team to assist 

GAAL. She assured the people of Limpopo that 

the facility will never be downgraded again. 

The MEC also thanked the SACAA for their 

intervention in ensuring the safety of passengers. 

“I want to take this time and thank everyone 

for the effort made to make sure that this airport is 

back to its glory days. We have a responsibility as a 

collective to ensure that we remain a shining example 

to South Africa and the world. I am grateful that we 

have a board led by people with aviation experience 

and I have no doubt that they will take this airport 

to greater heights and also to ensure that it remains 

economically viable,” said Lerule-Ramakhanya. 

Airport management is currently canvassing 

for new tenants and old businesses to return 

to cater for hundreds of passengers. There 

is currently one airline operating between 

Polokwane and OR Tambo, with two flights in the 

morning and two in the late afternoon, which is 

likely to increase in the course of 2022. The PIA 

management is working around the clock to 

attract other airline services and cargo carriers. 

The airport is strategically placed to 

transit cargo to the SADC region and for the 

development of the Musina-Makhado Special 

Economic Zone (MMSEZ). ■ 

ABOUT GAAL 

Gateway Airports Authority Limited is the entity 

responsible for the management of all public 

airports in the Limpopo province. GAAL is exploring 

opportunities to expand and make PIA competitive. 

PIA has a variety of business opportunities, including 

leasing of vacant office space, hangars and a fuel farm. 


Tel: 087 291 1050 | Email: masodja.mkhabele@gaal.co.za | Website: www.gaal.co.za 

69 


INTERVIEW 

Building a logistics hub at 


Victor Xaba, the chairperson of the board of Gateway Airports 

Authority Limited (GAAL), reports on growing investor and airline 

interest as the entity rebuilds. 

What are the key responsibilities of the GAAL board? 

As the accounting authority, the board is responsible for: 

• Providing strategic direction, taking GAAL from its current position 

towards being financially and operationally sustainable. 

• Entrenching the principles of corporate governance as well as 

compliance to industry regulations and legislative requirements. 

• Leadership stability through the appointment of a senior 

management team that is adequately skilled, ethical, performancedriven 

and accountable. 

• Ensuring business continuity. 

• Drving the consolidation and growth of the aviation industry within 

Limpopo, furthering the interests of service delivery as well as 

economic growth in South Africa and the SADC region. 

• Promoting the Provincial Integrated Transport Strategy, inclusive 

of the establishment of Polokwane as the Provincial Logistics Hub. 

Dithoriso Victor Xaba, 

Chairperson of the Board 

BIOGRAPHY 

Born in Temba, Tshwane, Xaba is a 

business executive with over 21 years’ 

work experience within the defence 

and aviation sectors. Qualified as a 

chemical engineer, Xaba joined Denel 

in 2000 and progressed through 

various technical and managerial 

positions eventually serving as Acting 

CEO, Chief Commercial Officer and 

Deputy CEO in Denel and SA Express. 

In October 2020, Xaba was appointed 

CEO of Forpress Technologies. In 

April 2021, Xaba was appointed 

Chairperson of the Board of GAAL. 

How important is safety in aviation? 

The safety of passengers and goods in transit lies at the centre of the 

aviation industry. The aviation industry is governed by the South African 

Civil Aviation Authority Act. 

Has PIA been attracting new investors or airlines? 

Yes indeed. Within the current financial year there has been expressions of 

interest by companies wishing to take tenancy at the aerodrome as well 

as considering the expansion of their existing operations into PIA. This 

is a positive development which will fuel the activities of management 

to expand their engagement with airlines and infrastructure investors to 

consider PIA as a critical part of their growth plans. 

What are the attractions of PIA as a transport hub? 

The geographical location of PIA in proximity to SADC countries, the 

world-class facilities as well as the available usable land are some 

of the key attractions that make the airport “fertile ground” for the 

establishment of the provincial transport and logistics hub. 

Is GAAL running campaigns to sell PIA to investors? 

The resumption of scheduled flights into PIA, the renewal of the 

airport’s operating licence by the SACAA and the relaxation of Covid-19 

restrictions have allowed GAAL to prepare and launch campaigns 

targeted at air travellers, airlines and infrastructure investors. Beyond 

running GAAL-specific campaigns, the entity is engaging with the 

provincial administration stakeholders to embark on joint campaigns. ■

INTERVIEW 

Finding the right talent 

The Acting CEO of Gateway Airports Authority Limited 

(GAAL), Paul Moloto, looks forward to building a strong 

team to drive growth. 

Please tell us about your background in aviation. 

My introduction to the aviation industry was by sheer luck. I was part of a 

group of volunteers helping the airport regain its commercial operations 

after the licence downgrade. My experience of being an extensive traveller 

assisted me in appreciating working in this intriguing environment. 

What are your short-term goals for GAAL? 

In the words of our Board Chairperson, “Arresting the decline”. 

For anything we do to be successful, we need to get the human 

resources right. Our task is finding the talent with the right ethics and 

commitment to ensure that we never regress. 

Paul Moloto, Acting CEO, GAAL 

BIOGRAPHY 

Born in Moletsi, Polokwane, Moloto 

became SRC President in 1991. A 

graduate of Damelin, University of 

Limpopo, Wits Business School and 

the National School of Government, 

he led various structures such as 

SAYCO, ANCYL, ANC, the SACP 

and NEHAWU. A former head of 

protocol in the Limpopo Office of the 

Premier, he became Director Special 

Programmes in the Department 

of Safety Security and Liaison 

until it was amalgamated into 

the Department of Transport and 

Community Safety. 

Where do you see GAAL in 10 years’ time? 

With the current limited utilisation of our asset, we remain a welllocated 

logistics hub for the province, the largest and northern-most 

international airport with two long runways ready for cargo and 

passengers alike. Giving true meaning to the concept of the heartland 

of Southern Africa, safely providing a mode of transport still to be 

tapped into by the growing African continent. 

Polokwane International Airport could assist as a refuelling station 

and cargo hub as well as serving to decongest passenger and cargo 

volumes for OR Tambo International Airport. Given the proximity 

to Gauteng, size and availability of space in Polokwane, the airport 

could also serve as a source for carbon-free hydrogen fuel. Polokwane 

International Airport will facilitate connecting flights for SAA, particularly 

to SADC countries. 

What impact did Covid-19 have on operations? 

We lost talent due to the death of some staff members. The lockdown 

has also led to the loss of business and revenue for the company. 

Have flight figures improved after the lockdown? 

There was an improvement after the lockdown, hence the resuscitation 

of full operations to Category Seven. We are optimistic that the business 

will flourish given that many of our potential passengers have been 

vaccinated and the economy of the country has stabilised. 

What airlines fly in and out of GAAL? 

Currently Airlink is our only commercial airline operator. There is an 

abundance of new opportunity available, based on the investment in 

infrastructure that has taken place. ■ 

71 


OVERVIEW 

Automotive 

Total manufacture and exports rebounded well in 2021. 

Volkswagen Polos have been made in the Eastern Cape town of 

Kariega (formerly Uitenhage) since 2017. In June 2021, as the 

company’s production of Polos in the year ticked past 61 000 

(and Polo Vivos exceeded 10 000) the total production of the 

popular car reached the milestone of 400 000 units. 

More than 300 000 of those were exported, materially improving 

South Africa’s balance of payments. 

The National Association of Automobile Manufacturers 

of South Africa (Naamsa) has announced a name change to 

accommodate the fact that its mandate has expanded to represent 

the interests not only of original equipment manufacturers (OEMs) 

but retail OEMs and heavy commercial OEMs. It is now known as 

Naamsa | The Automotive Business Council. 

The organisation published figures in 2021 to show that 

automotive manufacturing and exports recovered well from the 

dip caused by Covid-19. Exported vehicles in the year to October 

2021 amounted to 245 820, an increase of 12% over the previous 

period and total manufacture reached a figure of 371 180 by 

September 2021, an increase of 22%. 

Vehicle sales had declined sharply in the Covid-19 lockdown 

period. For the year to September 2020, sales of passenger 

vehicles went down by 34.4% and by a similar amount in light 

commercial vehicles. 

The manufacturing part of the automotive and components 

sector is a vital part of South Africa’s manufacturing landscape. 

It is responsible for more than 112 000 jobs which translates to 

more than 450 000 jobs through the multiplier effect. 

Long-term state support of the industry through the 

Automotive Production and Development Programme (APDP) is 

a major reason for the continuing health of this vital sector. The 

industry itself is looking to Africa for new markets. By increasing 

total production numbers to one-million vehicles, the sector will 

become more viable. 

South Africa has three centres of automotive production: the 

Eastern Cape, Gauteng and KwaZulu-Natal. In the Eastern Cape, the 

OEMs are Volkswagen, Mercedes-Benz, Isuzu and Beijing Automobile 


Automotive Industry Development Centre: www.aidc.co.za 

National Association of Automotive Component and 

Allied Manufacturers: www.naacam.co.za 

Naamsa | The Automotive Business Council: www.naamsa.co.za 


The Kariega plant of 

Volkswagen has produced 

its 400 000th Polo. 

Investment Corporation (BAIC). 

Ford has an engine plant in Port 

Elizabeth. 

In KwaZulu-Natal Toyota 

has a large plant just south 

of Durban. Although the 

manufacturers of loaders, dump 

trucks and haulers are not 

counted in the tally of South 

African OEMs, Bell Equipment, 

a global leader in its field, runs 

a large manufacturing site in 

Richards Bay. 

Pretoria is home to BMW, 

Nissan and Ford. The Tshwane 

Automotive Special Economic 

Zone (TASEZ) is a project 

of the Gauteng Province, 

the Department of Trade, 

Industry and Competition 

(dtic) and the City of Tshwane. 

The implementing agent 

is the Coega Development 

Corporation (CDC), the 

developer and operator of the 

Coega SEZ. 

Both the Nissan and BMW 

plants are expanding and Ford is 

investing in Silverton. There is an 

Incubation Centre for SMMEs at 

Nissan’s assembly plant in Rosslyn 

which is run by the Automotive 

Industry Development 

Centre (AIDC), a subsidiary 

of the Gauteng Growth and 

Development Agency (GGDA). ■ 


72

OVERVIEW 

ICT 

Covid-19 has increased demand for faster data speeds. 


Johannesburg will host 

Oracle’s first African 

data centre. 

Invicta Holdings, an investment holdings and management 

company, has expanded into the fibre field at a time when 

working from home has massively increased the demand for data. 

In 2021 Invicta acquired Dartcom Group for R500-million, 

giving it a presence in the distribution of communication and 

renewable technologies and the manufacture of fibre optic 

cables (under licence from Japan). 

As South Africa joins the global trend towards online 

shopping and with the first networks rolling out 5G in 2020, data 

centres are going up all over the country. The latest to join the 

trend is software company Oracle which announced in 2021 that 

Johannesburg would be the headquarters of its African cloud 

region. All of the company’s cloud regions worldwide will be 

100% powered by renewable energy by 2025. 

Teraco stores data in Johannesburg, Durban and Cape Town. 

A second 30MW site is under construction in Brackenfell to 

complement the existing facility in Rondebosch. Microsoft Azure 

has facilities in Cape Town and Johannesburg and Amazon has 

two sites in Cape Town. Huawei Cloud services will use a partner 

company in Johannesburg to store its data. Africa Data Centre 

(ADC), part of the Liquid Telecom Group, has purchased a Tier IV 

data centre in Johannesburg, previously used by Standard Bank. 

A 2019 study by Microsoft found that the cloud ecosystem 

will create around 112 000 new jobs in South Africa by 2022 

(IT Web). The number of permanent employees of Amazon Web 

Services reached 7 000 in October 2020. 

A new entrant to the South African market relies entirely 

on the cloud. Uniconta, an enterprise resource planning (ERP) 

system for small and medium-sized businesses, opened its first 


Business Process Enabling SA: www.bpesa.org.za 

Independent Communications Authority: www.icasa.org.za 

Technology Innovation Agency: www.tia.org.za 

offices in Cape Town in 2019, 

a precursor to plans to expand 

elsewhere in Africa. 

Cell C became South 

Africa’s third mobile operator 

in 2001, following MTN and 

Vodacom. Cell C was in the 

news early in 2020 when 

it defaulted on interest 

payments on a loan and this 

had an effect on the shares 

of Blue Label Telecoms, which 

owns 45% of the operator. 

When Cell C’s results were 

announced in October 2020, 

reference was made to a 

turnaround strategy. 

The Council for Scientific 

and Industrial Research (CSIR) 

in Pretoria will host a new 

body aimed at preparing South 

Africa for the Fourth Industrial 

Revolution (4IR), the South 

African Affiliate Centre of the 

World Economic Forum. 

The Information Technology 

Association (ITA) is the trade 

and employer body of the 

Information Technology 

industry in South Africa. The 

ITA represents more than 

200 companies which supply 

information technology 

equipment, systems, software 

and services. Members include 

IBM, Microsoft SA, Siemens, SAP 

and Axiz. ■ 

73 


OVERVIEW 

Tourism 

The summer of 2021/22 will be vital for the sector. 


The Hospitality Property 

Fund is now a subsidiary 

of Tsogo Sun Hotels. 

Hotel groups such as Sun International survived the Covid-19 

lockdown, but only by closing some of its facilities and 

retrenching more than 2 000 staff. The group’s South 

African operations improved overall income by 52% for 

the six months to June 2021, compared to the previous six months, 

but the total effect of the Covid-19 lockdown over 18 months was 

estimated by Sun International CEO Anthony Lemming to be a loss 

of R3.5-billion in ebitda, earnings before interest, taxes, depreciation, 

and amortisation (Sunday Times). 

With uncertainty about exactly who could travel to South Africa, 

occupation rates for the 2021/22 season could not be accurately 

predicted but everyone agreed that having a good season would be 

vital for the health of the sector. City Lodge Hotels told the Sunday Times 

that 60% occupancy rates had been achieved over the Heritage Day 

long weekend, a signal that domestic tourism was picking up. December 

bookings at Sun City (pictured) were expected to be better than before 

the pandemic hit. Tsogo Sun’s Beverly Hills Hotel in KwaZulu-Natal was 

anticipating no vacancies for December. 

Hospitality Property Fund Limited delisted from the JSE in 2021 

and became a wholly-owned subsidiary of Tsogo Sun Hotels Limited, 

giving Hospitality shareholders shares in a more liquid stock and the 

hotel group an expanded property portfolio. Most of Hospitality’s 54 

properties (with about 9 000 rooms) were operated by Tsogo Sun. 

According to John Loos, a property strategist at FNB Commercial 

Property Finance, an overlooked factor in many analyses of the Covid-19 


African Business Travel Association: www.abta.co.za 

South African National Parks: www.sanparks.co.za 

South African Tourism: www.southafrica.net 

Credit: Sun International 

lockdown has been how 

technology has shown that some 

business travel can be avoided 

altogether. Corporate travel 

budgets will be cut, and fewer 

physical conferences will be held, 

he predicts, which will put the 

meetings, incentives, conferences 

and events (MICE) sector under 

even more pressure. 

When the Marriott International 

hotel group closed three of its 

South African hotels during the 

Covid-19 lockdown, Tsogo Sun 

Hotels, which owns a controlling 

stake in all three hotels, stepped 

up its commitment by agreeing to 

bring them into its portfolio, keep 

them open and run them. 

A three-billion-year-old microfossil 

found in the Makhonjwa 

Mountains in Mpumalanga is 

thought to be the oldest sign of 

life on the planet. The Makhonjwa 

Mountains is now a UNESCO 

World Heritage Site. Culture and 

heritage accounts for 40% of 

world tourism and is one of the 

fastest-growing subsectors. 

There are 711 745 people 

employed in the tourism industry 

nationally, with road transport 

(29%), food and beverages (20%) 

and accommodation (19%) 

absorbing the largest numbers. 

The sector contributes 9% to 

South Africa’s gross domestic 

product (GDP). ■ 


74

Banking and financial services 

120 years on, Cape Town has a stock exchange again. 

OVERVIEW 

Several alternative stock exchanges have opened in South 

Africa recently, and one of them has moved to Cape Town. 

Previously known as 4AX, the rebranded bourse has fittingly 

chosen The Woodstock Exchange (pictured) for its offices. 

A short-lived exchange opened in 1901 in Cape Town because the 

Anglo-Boer War made Johannesburg uncomfortable for traders. 

The Cape Town Stock Exchange, which aims to attract African 

listings and to take advantage of the Cape’s specialisation in 

technology, is the only other South African exchange (apart from 

the JSE) with both equity and debt listing licences. The company 

announced that it planned to double its market capitalisation by 

early 2022. At the time of the announcement, the exchange had 

eight listings and a market capitalisation of just over R7-billion. 

Of the other new exchanges, Equity Express Securities 

Exchange (EESE) trades in Black Economic Empowerment (BEE) 

while ZARX targets companies that are not listed elsewhere. 

A2X had 56 listings and a market cap of close to R4-trillion in 

October 2021, when Tiger Brands announced that they would 

do a secondary listing on the exchange. 

The JSE is the world’s 19th biggest exchange and nearly 400 

companies are listed on the JSE or AltX, the JSE-owned exchange 

for smaller companies. 

The launch by Sanlam Investments of a Sustainable 

Infrastructure Fund is a sign of the times. The South African 

state has promised a huge infrastructure drive but in the 

context of climate change caused by the use of fossil fuels, the 

investment community is increasingly putting emphasis on 

sustainability. Sanlam Group will invest R6-billion in the fund and 

aims to attract a further R5-billion from institutional investors. 

Investments will be made in housing, transport, health, water, 

waste, communication, conventional energy and renewable 

energy, a fast-growing sector with enormous potential. 

Naspers Foundry is one of several investment funds looking 

for opportunities in the financial sector. Insurance technology 

is of particular interest, together with credit services and 

payment systems. 


Financial Sector Conduct Authority: www.fsca.co.za 

Insurance Institute of South Africa: www.iisa.co.za 

South African Institute for Chartered Accountants: www.saica.co.za 


Renewable energy funding is 

a fast-growing sector. 

Credit: Kristof Basson Architects 

Capital Appreciation, which 

is part-owned by the Public 

Investment Corporation, is 

already invested in a software 

developer, a credit card payment 

terminal provider and has R500- 

million available for further 

investments. 

African Rainbow Capital 

has a stake in the investment 

company and is the owner of 

TymeBank, which received a 

banking licence in 2017 and is 

expanding rapidly. 

Discovery Bank officially 

launched in March 2019 and 

is experiencing rapid growth 

with deposits of R3.7-billion. 

Discovery Bank is applying the 

behavioural model it uses in 

its health business to reward 

good financial behaviour. 

Another relatively new 

bank is Capitec. Investment 

holding company PSG has 

reduced its holding in Capitec 

Bank from 32% to 4%, earning 

about R4-billion by selling 

those shares. ■ 


OVERVIEW 

Development finance and 

SMME support 

The IDC has assets of R144-billion at its disposal. 

A Seda client adds the finishing touches. The Automotive Aftermarket Support Programme covers 

panel-beaters, motor mechanics, auto spares and auto fitment. Credit: Seda 

The Industrial Development Corporation (IDC) disbursed 

R6.3-billion in the year to 31 March 2021. The group has 

assets of R144-billion and is a major funder and funding 

partner in the South African business landscape. The 

group’s annual financial results claimed that a total of 13 354 

jobs were expected to be “created, saved and sustained”. 

The IDC created a R2.5-billion Covid Distress Fund to assist 

partners and businesses which were hit by the pandemic. In 

addition, deferments were implemented, which allowed 75 of the 

corporation’s partners relief to the value of R778-million in a range of 

sectors from agro-processing to mining. 

In terms of the IDC’s transformation agenda, the following 

amounts were committed: 

• Black Industrialists, R3-billion 

• black-empowered companies, R3.2-billion 

• women ownership above 25%, R2-billion 

• youth ownership above 25%, R1-billion. 

The Covid-19 lockdown had a severe impact on small businesses. A 

survey conducted by risk finance company Business Partners Limited 

found that 95% of SMME respondents thought they would not 

survive without help. 

During lockdown, Business Partners regional general manager 

Jeremy Lang issued a statement regarding financing options for 


The North West Provincial 

Government is investing in 

digital infrastructure. 

small businesses. “We implore 

SMEs who might be tempted to 

throw in the towel to reconsider 

their financing options,” he said 

in February 2021. 

Lang made the point that 

a wider range of financing 

options is available than 

many people might know 

about. He listed “grants, riskfree 

and risk-based finance 

where either grants, debt or 

equity investments are made 

available”. Lang also noted the 

relief programmes specifically 

designed to help SMMEs 

weather the Covid-19 storm. 

The company’s own packages 


76

OVERVIEW 

included a Repayment Relief Programme and a Financial Assistance 

Programme capitalised at R100-million. 

The National Department of Small Business Development 

(DSBD) has several programmes to assist SMMEs and co-operatives. 

The Small Enterprise Development Agency (Seda), a subsidiary of 

the DSBD, has 42 incubation centres in South Africa under its Seda 

Technology Programme (STP). 

In Mpumalanga, Seda supports several incubators: Furntech, 

furniture manufacturing, White River; Mobile Agro-Skills 

Development & Training (MASDT), agricultural training, Nelspruit; 

Mpumalanga Stainless Initiative (MSI), stainless-steel processing, 

Middelburg (with Columbus Stainless); Timbali floriculture, 

Nelspruit; Ehlanzeni TVET College Rapid Incubator Renewable 

Technologies, Nelspruit. 

In the North West, the Provincial Government is investing 

in digital infrastructure. SMMEs will be able to use the newlyestablished 

Mafikeng Digital Innovation Hub as a co-working 

environment and to get support in using digital tools. 

The South African National Roads Agency Limited (SANRAL) 

actively supports small businesses wherever it works in South Africa. 

Subcontracts are routinely awarded for maintenance such as the 

patching of potholes, fencing and the cutting of grass verges. 

Part of the rationale behind a national programme to revive 

industrial parks is to benefit SMMEs. The National Department 

of Trade, Industry and Competition has invested R40-million in 

the Nkowankowa Industrial Park in Limpopo, an initiative which 

has helped to create 174 direct jobs. In the northern reaches of 

the province, more than 300 jobs have been created with the 

revitalisation of the Thohoyandou Industrial Park, which has achieved 

a 91% occupancy rate. 

A new fund for SMMEs was launched in 2020 with the aim of 

providing capital at a fair price. Former SA Post Office CEO Mark 

Barnes, who previously worked in investment banking and private 

equity, is heading the Kisby Investment Fund. Partners in the fund 

are Arena Holdings (media), 4AX Africa Exchange, 4AX Debt Services 

and Rainfin (online credit). Barnes told Business Day that the fund 

would be compensated for the risk in supporting companies that 

have to “hunt around in the overpriced debt market” by taking 

equity in the firm. Kisby is aiming for a R5-billion fund to support 

companies in the R10-million to R1-billion revenue bracket. 


National Department of Small Business Development: www.dsbd.gov.za 

Small Business Institute: www.smallbusinessinstitute.co.za 

Small Enterprise Development Agency: www.seda.co.za 

South African SME Finance Association: www.sasfa.net 

Funding is available for 

technology start-ups in many 

forms but getting funding early 

in the process can be difficult 

because the concept is not 

proven. For asset management 

company Futuregrowth, 

ring-fencing some funding 

for allocation to early-stage 

development is a way of 

ensuring that potential is not 

overlooked. The company has 

put 10% of its development 

equity fund (or R280-million) 

into businesses such as payment 

devices (Yoco), infrastructure 

platform (Rubicon), fintech 

(LifeCheq) and an app for 

domestic workers (SweepSouth). 

Data company 5M2T 

(5Minutes2Town) has started offering 

sophisticated information about the 

township market. From how many 

spazas in Soweto have refrigeration 

units (4 700) to brand loyalty, 5M2T 

covers 60 000 spazas, salons, barbers 

and other informal trade outlets an 

“in-market audit”. This allows for better 

ordering and planning for suppliers 

and logistics operators. 

Most big companies in South 

Africa have two main programmes 

to support SMMES: enterprise 

development (ED) and local supplier 

development (or procurement). 

Venetia Mine in northern Limpopo, a 

De Beers Group mine, has more than 

50 SMMEs enrolled in incubation 

programmes and 34 locally-owned 

companies are doing business with 

the mine. 

The National Department of 

Trade, Industry and Competition (the 

dtic) is trying to stimulate township 

and rural economies. Programmes 

include the Enterprise Investment 

Programme (EIP). ■ 


PROFILE 

VeriFi 

VeriFi is the leader in the business of verification and 

certification for BBBEE recognition. 

South Africa requires an economy that can meet the 

needs of all its economic citizens, its people and their 

enterprises in a sustainable manner. Government’s 

objective is to achieve this vision of an adaptive 

economy characterised by growth, employment 

and equity. Achieving authentic BEE has required a 

reassessment of traditional business models and corporate 

cultures. The Bill, code and strategy document 

rely upon core policy instruments that have been 

designed to bring about BEE. These instruments are 

essentially measurement tools that will permit the 

public and private sectors to evaluate the BEE status 

of a particular enterprise. Failure to adapt to the new 

paradigm will have significant consequences. A real 

commitment to BEE is now a business imperative. 

Description of services 

• assess and certify BBBEE rating; 

• provide insight into BBBEE challenges facing 

various organisations; 

• provide insight and guidance on the actions 

required to elevate BBBEE status; and verification 

of supplier BBBEE status. 

With BBBEE recognised as an imperative by companies 

committed to building an equitable South 

Africa, verification is an essential requirement that 

confirms a company’s participation and contribution. 

Verification is performed in a manner similar to 

that of a financial audit: it provides an independent 

assessment of investment, performance and initiatives 

in a control system. Criteria against which 

companies are measured are provided by government 

and like an audit, verification must be 

performed annually. 

Target markets 

Small, medium and large enterprises achieving 

an annual turnover of below R10-million and over 

R50-million respectively (including all charter 

sectors). 

Pricing 

Pricing for BEE consultancy services is based on 

the client’s requirements and can be structured 

on an hourly or monthly basis. 

For BEE verification and issue of a BEE Compliance 

Certificate, please contact the office for the 

current rates. 

Credit: Christina Morillo from Pexels 

SOUTH SOUTH AFRICAN BUSINESS 2019 2022 

146 78

PROFILE 

The value of verification 

With BBBEE recognised as an imperative by companies 

committed to building an equitable South 

Africa, verification is an essential requirement that 

confirms a company’s participation and contribution. 

Verification is performed in a manner similar to that of 

a financial audit: it provides an independent assessment 

of investment, performance and initiatives as 

a control system. Criteria against which companies 

are measured are provided by government, and like 

an audit, verification must be performed annually. 

BBBEE explained 

Government BBBEE legislation consists of: 

• The Strategy for Broad-Based Black Economic 

Empowerment 

• The Broad-Based Black Economic 

Empowerment Act, No 53 of 2003 

• The Codes of Good Practice for Black Economic 

Empowerment 

• Various sectoral BEE Charters or Codes 

In terms of these Codes of Good Practice, 

businesses are divided into three categories: 

• Where turnover is less than R10-million a year, 

or when in the first year of incorporation, a 

business is categorised as an Exempt Micro 

Enterprise (EME). However, it is necessary 

to confirm this status by providing proof of 

annual income. 

• Businesses with a turnover of between 

R10-million and R50-million a year are categorised 

as Qualifying Small Enterprises (QSEs). 

The criteria for each of these elements are less 

onerous for QSEs than for companies with 

turnovers exceeding R50-million per annum. 

Advantages of BEE certificate 

from VeriFi 

• proposals for new business with government; 

• the licensing of regulated activities which include 

mining, liquor sales and the granting of 

credit; leasing of premises from government or 

private businesses; and 

• the creation or continuance of business relations 

with clients seeking assurance of a 

company’s BEE compliance. 

Once a verification and certified rating through VeriFi 

is accomplished, a company can perform business in 

confidence, as its commitment to equality, nationbuilding 

and unique South African business processes 

will be recognised. 

Key facts and figures 

Year established: 2005 

No of staff: 15 

Major clients: BP, Public Investment Corporation 

Limited, IBM South Africa, Saab Grintek Defence, 

Independent Newspapers, Premier Fishing & Brands 

Limited, African Equity Empowerment Investment 

Limited, South African Express Airways SOC Ltd. 

CONTACT INFO 

Tel: +27 86 175 3233 

Email: info@verifibee.co.za 

Website: www.verifibee.co.za 

79 147 

SOUTH 

SOUTH 

AFRICAN 

AFRICAN 

BUSINESS 

BUSINESS 

2022 

2019

INDEX 

INDEX 

Air Products............................................................................................................................................................................... 63 

Atlantis Special Economic Zone..........................................................................................................................27-31 

Brand South Africa..............................................................................................................................................................4-5 

Coca-Cola Beverages South Africa....................................................................................................................60-61 

Council for Geoscience (CGS)................................................................................................................................34-37 

Department of Mineral Resources and Energy.........................................................................................46-47 

Fetakgomo-Tubatse Special Economic Zone............................................................................................20-25 

Gateway Airports Authority Limited (GAAL)...............................................................................................68-71 

Invest Durban.........................................................................................................................................................................2-3 

Kemtek............................................................................................................................................................................................ 7 

Northern Cape Economic Development, Trade and Investment 

Promotion Agency (NCEDA)..................................................................................................................................50-53 

OUTvest....................................................................................................................................................................................OBC 

Petroleum Agency South Africa .........................................................................................................................56-57 

Polokwane International Airport........................................................................................................................ 69, 71 

South African Mohair Industries Limited (SAMIL) ..................................................................................42-43 

Verifi.........................................................................................................................................................................................78-79 

Vodacom....................................................................................................................................................................................IFC 


80

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your business in business. 

sms ‘sa’ to 36296 

or call 08 600 60 000 

OUTsurance is a licensed insurer and FSP. Ts and Cs apply. Calls: standard rates apply. Free SMS. OC21/0178/E

South African Business 2022

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