Free State Business 2023

FREE STATE
BUSINESS
THE THE GUIDE GUIDE THE TO TO GUIDE BUSINESS TO BUSINESS AND AND INVESTMENT
AND INVESTMENT
IN IN FREE FREE STATE STATE PROVINCE
FREE STATE
BUSINESS
IN THE FREE STATE
2022 2023 EDITION
2020 2019 EDITION EDITION
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Free State Province
Center yourself in the heart of South Africa
Free State Province

Sasolburg Operations is
only private institution to
be Green Drop certified
During the launch of the 2022 Green
Drop Report by the Department of
Water and Sanitation on 1 April 2022,
Sasolburg Operations won the award
for Best Performing Private Sector
system, as well as the award for the
Best Progress made by a Private Sector
system, improving its score from 86% in
2013 to 96% in 2022.
Sasol’s Sasolburg Operations is the only
private institution to receive Green Drop
certification in 2022 and one of only
23 wastewater systems to achieve this
accolade this year. The system was also
noted as the fourth best performing
system overall.
“Our win is a direct reflection of our
commitment and resilience in working
towards innovating for a better world
through all our water initiatives,” said
Rightwell Laxa, Senior Vice President
of Sasol’s Sasolburg and Ekandustria
Operations.
The minister of Water and Sanitation,
Senzo Mchunu, hosted the Awards
Ceremony held during the launch of the
2022 Green Drop Report.
According to Minister Senzo Mchunu
the Department of Water and Sanitation
(the then Department of Water Affairs)
introduced the Green Drop certification
programme in 2008 seeking to protect
the environment from the hazards
associated with polluted wastewater or
sewage.
“It sets standards higher than minimum
requirements and challenges Water
Services Authorities to go the extra
mile in a quest for excellence, with the
intention to augment and compliment
the normal legislative and regulatory
provisions,” he said.
The programme also seeks to get
wastewater treatment works to measure
themselves against international risk
standards for wastewater quality.
According to the 2022 Green Drop
report, 995 wastewater networks and
treatment works belonging to private
and public water services institutions

were subjected to the Green Drop
Audit from 1 July 2020 to 30 June
2021. Of these, only 23 wastewater
systems scored a minimum of 90%
when measured against the Green Drop
standards and thus qualified for Green
Drop Certification. This is lower than the
60 wastewater systems awarded Green
Drop Status in 2013.
“I want to single out our Sasolburg
Utilities Water and Waste team for
securing this prestigious outcome and
working so hard that they increased our
score from 86% in 2013 to an incredible
96%,” continued Laxa.
Obtaining Green Drop Certification is a
result of a combination of various water
initiatives. One of the most significant
being the bio-sludge generated through
Sasol’s Sasolburg facilities that is
composted and used as a landfill cover.
Other initiatives include the extensive
three phase upgrades to the municipal
water and sanitation pump station
systems in the greater Sasolburg
area. During phase one R2 million was
invested, while the critical mechanical
and electrical work at the Gortin and
Chris Hani pump stations was valued at
more than R3,4 million in phase two.
Civil work was also conducted at 11
Metsimaholo Local Municipality (MLM)
pump stations. Phase three comprised
of critical remedial upgrades and
capacity building at the MLM sanitation
network valued at R6,2 million, including
the electric monitoring of major sewer
pump stations in Baddrif, Welgelegen,
Leeuwspruit, Leitrim, Gortin 4 and
Amelia.
“As a company, we are continuously
contributing towards the enhancement
of water quality in South Africa.
However, this certification does
not mean that our work is done.
Our envisaged outcome for future
programmes is to ultimately provide
a healthy living environment for the
Sasolburg and Zamdela communities by
eliminating exposure to raw sewage,”
Laxa concluded.

CONTENTS
CONTENTS
Free State Business 2023 Edition
Introduction
The Free State welcomes investors 4
The attractions of the Free State as a destination of choice are laid out
in detail in this message to domestic and foreign investors.
During his delivery of the 2023 State of the Province Address, the
Honourable Premier Mxolisi Dukwana, pictured right, stated that,
“We will undertake a substantial review of the current state of our
public entities and reposition them to be proactive and responsive to
the investment and development needs of the Free State economy.
The revitalisation of our Industrial Parks is a key enabler of provincial
economic growth. Our priority areas remain Botshabelo, Phuthaditjhaba
and Thaba Nchu. This programme is catalytic to unlocking job
creation as 3 986 people are now employed in these Industrial Parks.
The Maluti-A-Phofung Special Economic Zone continues to offer
multiple investment opportunities.
Foreword 6
Free State Business is a unique guide to business, investment
and tourism in the province.
Special features
Free State Development Corporation (FDC) 8
Driving enterprise development and investment in South Africa’s
most central province, the Free State.
Regional overview 10
More high-quality gas has been found at Virginia and the Gas
Project is powering ahead. Exploration is underway for a new gold
mine. A new strategy has been adopted to attract a new domestic
market. The province’s industrial parks and its Special Economic
Zone are attracting investors. All of these trends are being supported
by investment in infrastructure.
Free State Gambling, Liquor and
Tourism Authority 14
Driving economic transformation in the Free State.
Environmental sustainability 16
The Environment and Conservation Branch is working to promote
a pristine environment that facilitates economic transformation.
Overviews of the main economic
sectors of the Free State.

Tel: 051 400 0800
wecare@fdc.co.za | invest@fdc.co.za
Web: www.fdc.co.za
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Free State Province
Center yourself in the heart of South Africa
Free State Province
Center yourself in the heart of South Africa
Growing the tourism sector 17
The Tourism Unit of DESTEA is providing market access for local operators.
Maluti-A-Phofung SEZ investment
opportunities 18
The SEZ is booming with investment to the tune of R1.1-billion in 2020.
Establishing a business in South Africa 20
South Africa has eased the barriers to doing business for locals
as well as international companies and individuals.
South African investment incentives 22
The South African government, particularly the Department of Trade,
Industry and Competition, has a range of incentives available to investors.
South African economy at a glance 24
Economic sectors
Agriculture 28
Transformation through training is working.
Mining 30
Miners are looking to renewable energy for power.
Oil and gas 32
Gas resources at Virginia are even bigger than first thought.
Manufacturing 34
Industrial parks are promoting manufacturing.
ICT 35
Young people can attend digital skills programmes.
Driving
Economic Development
in the Free State Province
rprise
pment
perty
Tourism 36
Visitors are encouraged to “Travel Differently”.
Development finance and SMME support 37
Skilled mentorship pays off for SMMEs.
Education and training 38
A CUT team attended the 2022 Enactus World Cup.
FREE
FREE STATE
STATE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE FREE STATE
2022 2023 EDITION
2020 2019 EDITION EDITION
ABOUT THE COVER:
References
Key sector contents 26
Overviews of the main economic
sectors of the Free State.
gement
stment
itation
port
Top left, Sasol plant, Sasol; Gold mine equipment, Harmony; Mandela statue in
Bloemfontein, SA Tourism/Flickr; Sunflower, NWPG; Factory space, Free State Development
Corporation; Cheetah, SA Tourism/Flickr.
otion

Every ingredient an investor
could want
The Free State has the natural resources, the infrastructure and incentives to attract
investors in every conceivable sector, from renewable energy to manufacturing and
pharmaceuticals. The Department of Small Business Development, Tourism and
Environmental Affairs stands ready to welcome investors to the province.
The Free State Development Corporation has good warehouse and factory space available at competitive rates. Spaces to rent are located at
Thaba Nchu, Industria-Harrismith, Phuthadithjaba and Botshabelo Industrial Park, which is situated approximately 60km from the economic
hub on the eastern side of the Mangaung Metro.
South African President Cyril Ramaphosa has
called for increased long-term investment
necessary for sustainable job creation,
innovation, productivity enhancement,
wealth creation and improvements in the living
standards of our people.
The Free State Province not only champions
this call but proclaims that the country’s most
centrally-located province has all the ingredients
that an investor could need.
The Free State Province lies in the heart
of South Africa, with the Kingdom of Lesotho
nestling in the hollow of its bean-like shape.
Lying between the Vaal River in the north and
the Orange River in the south, the region is one
of flat, rolling grassland and fields of crops, rising
to lovely mountains in the north-east. The Free
State shares borders with six other provinces and
provides easy access to the main ports of Durban,
East London and Gqeberha (Port Elizabeth). The
country’s major national highway, N1, runs through
the centre of the province on a north-south axis.
Mangaung, comprising Bloemfontein, Botshabelo
and Thaba Nchu, is South Africa’s newest metropolitan
authority. The Bram Fischer International Airport in
the provincial capital is the site of a multi-phase
industrial and commercial development.
The N8 Corridor covers Bloemfontein,
Botshabelo and Thaba Nchu and contains projects
including the ICC Precinct (hotel and convention
centre in Bloemfontein), Bio-Medical Park, Airport
Node (logistics and supply chain, warehouses,
residential apartments, hospitals, schools,
hotels and new shopping malls), and tourism
infrastructure for the Naval Hill development.
The province has an established institutional,
educational and administrational infrastructure
and is home to the Supreme Court of Appeal,
the University of the Free State and the Central
University of Technology.
Multiple sector opportunities
The Free State is home to immense investment
opportunities in sectors such as agriculture, agroprocessing,
manufacturing, ICT, infrastructure
development, green energy, construction, tourism
and trade.
Some of the biggest current sectors in the
province are agriculture, mining, manufacturing
and tertiary sectors, making it an ideal location
for transport logistics and agro-processing
operations. The province is the granary of South
Africa, with agriculture central to its economy,
while the mining industry is still a large employer.
FREE STATE BUSINESS 2023 4

BUSINESS
MESSAGE
Domestic MESSAGE
Investing and in the international Free
investors State Investing Province are the invited to
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE FREE STATE
GUIDE TO BUSINESS AND INVESTMENT
REE STATE PROVINCE
MESSAGE
MESSAGE
towns that are the centre of economic activity
IN THE FREE STATE
include Kroonstad, an important agricultural,
administrative and educational centre; Parys,
invest The
Free
Free
State in South State
Province Africa’s on the banks most
of the Vaal River; QwaQwa, a vast
settlement known for its handcrafted items;
centrally welcomes Dr Mbulelo Nokwequ, Head located investors
Ficksburg, famous for its cherry festival; and
of Department province
at Bethlehem, gateway to the Eastern Highlands.
DESTEA, outlines some of the Free State’s
Dr Mbulelo Nokwequ, Head of Department at Companies DESTEA, outlines locating some to the of Free the State not
unique selling propositions.
only enjoy the opportunity to source inputs
MEC MEC Free for for State’s Economic, Economic, unique Small Small selling Business Business propositions. Development, Development, Tourism Tourism and and Environmental Environmental Affairs, Affairs,
at competitive prices, but also benefit from
the the Honourable MP MP Mohale, Mohale, outlines relates how how human the domestic, province capital formation regional has supported and is international the business heart of markets the in the for
creation Covid-19 of crisis a conducive and how environment investment for can investment spark their further in products Free development.
and State services. Province. Because South Africa
Free State Province is situated in the heart of South has Africa been and engaging with our economically large
The
shares borders
Free State
with
Province
Lesotho
is
and
situated
six other
in the
provinces.
heart of South Africa
trading It provides partners, access to international markets
and shares borders with Lesotho and six other provinces.
A wide It In variety is easy with response of manufacturing pleasure access to to and the the gratitude effects enterprises main ports of that Covid-19 have we, of as Durban, the and department East the is London subsequent
facilitated charged and through various trade preferences
It provides easy access to the main ports of Durban, East
chosen the with lockdown Free Port promoting State Elizabeth. of for the their investment economy, investments, into Free the helping State Free enterprises State to Province, were and introduce invited free-trade to agreements.
London and Port Elizabeth.
bolster the Free apply economy The
The
State Free for
Free
Business State economic and create is an
State
2020. attractive recovery employment.
is
We
an
welcome business incentives.
attractive
this and
business
well-known Incentives investment
and
publication’s
and destination. Adding support to the province’s attractiveness as an
investment
The regular
programmes province
destination.
description is at were the centre for
The province
of the
businesses of economic South in Africa the and the dominant is at the centre
environment
formal and
of South
of
informal
Africa
our investment province
sectors destination, there are several industrial
and the
and are and agriculture, mining, manufacturing and the tertiary sectors, making
dominant
are
were The pleased province focussed
economic
to contribute supplies on saving significant existing
sectors
to
are
its
agriculture,
pages.
jobs proportions and creating new parks ones. and a Special Economic Zone (SEZ) that are
mining, manufacturing
it of ideal
and A
In the brief the
for nation’s effort transport overview
to sorghum improve
tertiary sectors,
logistics of the (53%), the
making investment and uptake sunflowers agro-processing.
of
it ideal climate
opportunities (45%),
for transport in our
presented supported province logistics and is by the National Department of Trade,
government,
provided potatoes
agro-processing.
Companies on (33%), working
the locating facing groundnuts with
to Free
different
page. State (32%), not
business
only dry enjoy beans chambers
the opportunity Industry in the Free and to Competition (dtic). Industrial parks
source
State, (26%), the
Our The department inputs wool department
Department at (24%) competitive also
and has
published
almost assisted
has prices, developed a
all businesses
dedicated but of also its cherries
a to Value benefit
to meet
Chains from
the
investment
are minimum
prospectus. domestic, situated in Maluti-A-Phofung, Botshabelo and
compliance Economic
The regional (90%).
Transformation purpose
Red and of
meat requirements,
international the
and
Approach, Free
dairy like
State markets are
which Investment
other business,
aims for their important tax and other
to Opportunities place products Thaba licence
the economy and Prospectus services. Nchu,
on is
while the Maluti-A-Phofung SEZ is
registration. a
to Because
products,
path provide of South
while We would
reconstruction, pertinent Africa
game not
has information
hunting like to
recovery been engaging
is see a growing anybody
and about development with large-scale
sector. left behind.
our economically
situated
post the Covid-19 large
in Tshiame in the northern part of the
investment
trading
Crop It is production with pleasure
pandemic. partners, Maintaining access
represents and gratitude
to sound international
about two-thirds that we, as
relationships markets with is
of the
facilitated
province, department
the private through
on the busy N3 highway.
opportunities currently available various sectors. These initiatives
charged sector
various
the province’s with promoting
ensures trade that preferences
gross agricultural investment
government’s and free-trade
income. into the
represent the Free State’s response economic to President agreements.
The Free State The Province, N3 transports vast amounts of cargo
introduce transformation Ramaphosa’s clarion agenda
main crops Free are State maize Business and wheat. 2021. 2022. We Sunflowers, welcome this between well-known Johannesburg and Durban, and the
call remains As for increased far on long-term track. long-term The department investment is is concerned, necessary engaging for with there inclusive sectors are industrial
publication’s
growth
sunflower regular seeds, description sorghum and of the soybeans economic are environment infrastructure
such of our as
at the MAPSEZ has been set up
and parks
province property job and creation. a developers Special Economic issues Zone such (SEZ) as bulk that services are supported and the approval by the
other major and are crops. pleased The Mangaung to contribute Fresh to its Produce pages. in such a way as to suit logistics operators.
Department of While plans. investment A of development Trade, is an Industry essential committee and ingredient Competition. made to economic up Industrial of government,
growth, parks
Market Our department plays a vital has role also in the published sector, catering a dedicated Manufacturing investment it
opportunities
• Free State
are also
Development
encouraged
should are prospectus, developers, situated be pointed financing Maluti-A-Phofung, out that at institution the centre Botshabelo and of the municipalities Free State and government’s
Thaba will Nchu. soon • an Corporation idyllic climate
to householders, the Free bulk State buyers, Investment informal Opportunities traders, Prospectus. within These the MAPSEZ and attractive
(FDC)
concessions
support
economic Maluti-A-Phofung initiatives agents
be established.
and represent development farmers.
SEZ the is Free strategy situated State’s is in response human Tshiame. capital to President formation and Ramaphosa’s allowances and de-
MEC
are
• recreational services
available for Economic, to
for
investors.
and priority Small
lifestyle
The
sectors
key
velopment clarion The
Opportunities
Companies call Free through for State’s increased relocating strengths
are universities opening long-term for and to
up
inward investment Free colleges, the
investment State
province’s and necessary not various are only
sectors boosted for institutions enjoy inclusive that by: the
are Business
being facilities. such
targeted
Development, as agro-processing
are automotive,
Tourism
and
pursuing • growth gas
opportunity openness and and innovation energy job to to creation. business, sector,
source and offering with trade inputs
exploration and proof-of-concept at foreign competitive
licences investment services, prices,
agro-processing,
but to name also a to
and
logistics,
manufacturing
Environmental
general
Affairs processing,
the the
few. • being
benefit abundance While Indeed, granted,
from investment the of domestic, Free and natural State a R200-million is resources regional is an poised essential and to plant become international ingredient started a laboratory markets ICT economic for and
for excellence
• growth, producing
pharmaceuticals.
their
Honourable Select • a large investment labour Mohale. pool
■
MP opportunities
products low factory education it should and
liquified rentals services. outcomes, be natural pointed gas research out (LNG) that and and at innovation, helium the centre particularly of the Free in include: • diverse cultures
the • State in Africa’s fields 2022.
There government’s of leading health, are industrial agriculture, telecommunications economic parks agro-processing, development and a Special network strategy, manufacturing, Economic as well Zone as water (SEZ) the • • Agriculture competitive and land agroprocessing
costs. MEC for Economic, Small
and building
management, • Value that incentive Opportunities Chains are supported packages Economic ICT, pharmaceuticals uniquely in
by Transformation renewable
the developed Department and energy rural Approach, for development.
Special of
are
Trade, is Economic human Industry capital Zones and
• formation boundless.
Competition. Domestic incentives and and Rezoning associated development Industrial potential for with solar
parks investors the through farms revitalised are situated from has universities already industrial around Maluti-A-Phofung,
the and parks world colleges, are • Tourism Select Business and property
Development, investment
welcome • and taken
Botshabelo Free various State to place contact institutions and Development Thaba
the Theunissen, DESTEA
Nchu. pursuing Corporation The
Head innovation Maluti-A-Phofung
Bloemfontein,
of Department (FDC) and support offering SEZ
at: services is situated proof-ofconcept
Fauresmith
for in opportunities development
Tourism and include: Environmental
HoD_office@destea.gov.za.
Tshiame, priority services, sectors Harrismith.
and Hoopstad. to such name as agro-processing a few. Solar The projects Free State and include manufacturing
is poised to become • • Medical Agriculture Affairs, and and the pharmaceutical
Honourable agriprocessing Thabo
• a the laboratory a large
The
60MW
Free
labour Boshoff for State’s excellence pool
strengths
Solar PhotoVoltaic in for education inward
(PV)
investment outcomes, park
are research boosted and by: •
production
tourism Meeko. and
and
distribution
property
• innovation, (Sun
•
diverse
openness
Edison) cultures particularly to
and
business,
the 64MW
trade in the and fields Letsatsi
foreign of Solar health, investment
PV agriculture, agroprocessing,
(Solar competitive Reserve, manufacturing, land Kensani and Group building water and management, cost Intikon Energy). ICT, pharmaceuticals • Renewable investors and from clean around energy
• Manufacturing
development Domestic and potential
• abundance of natural resources
• medical and pharmaceutical
•
• low factory rentals
production and distribution
• and world-class Sasolburg, rural development. transport on the province’s and telecommunications northern border, infrastructure • Medical the tourism.
world are welcome to
is
• Africa’s
one Domestic of
leading
the and country’s
telecommunications potential most investors important
network from industrial around the world are • manufacturing
contact the DESTEA Head of
welcome complexes.
• incentive to contact packages
It is home the uniquely DESTEA to the
developed
global Head of giant Department for
Sasol
Special Economic at: Zones • renewable Department and at: clean energy
JOIN US
HoD_office@destea.gov.za.
FREE and
and ONLINE STATE several
industrial BUSINESS other
parks
chemical 2020 facilities. Other 6
and medical HoD_office@destea.gov.za.
tourism. ■
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7 FREE STATE BUSINESS 2021
5 FREE STATE BUSINESS 2022
Free State Province

FOREWORD
Free State Business
A unique guide to business and investment in the Free State.
Credits
Publishing director:
Chris Whales
Editor: John Young
Business development
manager: Shiko Diala
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Tyra Martin
Production: Yonella Ngaba
Ad sales:
Gavin van der Merwe
Sam Oliver
Shiko Diala
Gabriel Venter
Vanessa Wallace
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
The 2023 edition of Free State Business is the 13th issue of this successful
publication that, since its launch in 2008, has established itself as the
premier business and investment guide for the Free State.
Sasol, one of the biggest industrial enterprises in the province, has
announced that it may have found a way to keep running the Natref refinery far
into the future, because of new and cleaner technologies that it is investigating.
Gold miners Harmony and Sibanye-Stillwater are prospecting for new reefs. And
the provincial tourism authorities are putting their minds to creating new ways
of attracting new local tourists to various eco-tourism products.
All of these news items and more are contained in the sector overviews that
outline the characteristics of the main economic sectors of the province, and report
on the latest news in those sectors as well. One of the most active sectors is a
new one – natural gas and helium, which is being vigorously pursued by Renergen
through its Virginia Gas Project. Significant investments are being attracted into
the newly-established Maluti-A-Phofung Special Economic Zone (MAP SEZ) in
the northern part of the province and a steel mill is under construction at the
Botshabelo Industrial Park east of Bloemfontein. Special features on investment
incentives and starting a business are included in this edition.
To complement the extensive local, national and international distribution of the
print edition, the full content can also be viewed online at www.freestatebusiness.
co.za. Updated information on the Free State is also available through our monthly
e-newsletter, which you can subscribe to online at www.globalafricanetwork.com,
in addition to our complementary business-to-business titles that cover all nine
provinces, our flagship South African Business title and the new addition to our list
of publications, Journal of African Business, which was launched in 2020. ■
Chris Whales
Publisher, Global Africa Network Media | Email: chris@gan.co.za
DISTRIBUTION
Free State 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.
Member of the Audit Bureau
of Circulations
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
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1993-0119
COPYRIGHT | Free State Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to the
publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Enactus/Ford; Free State Development Corporation;
Free State Provincial Government; Harmony; Premier Hotels and Resorts;
Renergen; SAB Foundation; SASKO; Sasol; Sun International; Standard
Bank; TotalEnergies; University of the Free State; Vodacom Foundation.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information
contained in the Free State Business journal 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.

is renting out 18 850 sqm standalone factory including Furnit
FDC
Machinery, Equipment, and Furniture for Business
Manufacturing
Free State Development
Corporation (FDC)
Driving enterprise development and investment in South Africa’s
most central province, the Free State.
Office and industrial park space available
The Free State Development Corporation (FDC) offers a wide
range of spacious and affordable rental space to SMMEs.
I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H
FDC is renting out 18 850 sqm standalone factory including Furniture
O P E R T Y T O R E N T I N H A R R I S M I T
Manufacturing Machinery, Equipment, and Furniture for Business
R P L A I R T S U D N I
There are opportunities to rent factory space at
Free State Development Corporation properties
in Botshabelo, Phuthaditjhaba and Industriqwa.
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation..
main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
and close Harrismith in 2277 Site at Situated is factory The amenitie
all to proximity
System.
Sprinkler
Freeway.
N3 onto access Quick and routes arterial main
Operation..
4 Roller Doors
Industrial portfolioProperty management
The FDC administers a diverse property portfolio
Industrial building: and Mainly can offer small stand-alone to medium enterprises industrial
suitable
premises at affordable rates. The corporation has
type buildings designed
some 253 commercial
for manufacturing
properties, 290 industrial
and/
properties and a large number of residential and
or warehouse purposes.
vacant land for development.
Large factories (>500m2): The corporation aims Consists to use them to of facilitate mainly
commercial and industrial activity, while assisting
standard and custom-built new investors looking for factories suitable premises. used
The FDC offers advice and guidance terms of
for manufacturing, the following service incentives: industries and
• Subsidised rental rates.
warehousing.
• Rental holidays of up to three months.
Small industrial units • Special (

PROFILE
Free State Development
Corporation (FDC)
Driving enterprise development and investment in South Africa’s
most central province, the Free State.
The CEO of the Free State
Development Corporation,
Mr Z.E. Lebelo
The FDC contributes to the Free State’s
economic The FDC development contributes to through the Free four State’s service
delivery economic pillars: development through four service
delivery pillars:
SMME/co-operative funding and support
The FDC provides products and services to SMMEs
and co-operatives in the form of financial support
(business loans) as well as business development
support (facilitating training training and mentoring and mentoring service
providers). service providers). The principal The principal loan products loan offered products to
Free offered State to Free entrepreneurs State entrepreneurs by the FDC by are: the FDC are:
• Start-up loans for for recently established businesses
that that are are mainly at at formative stages.
• Expansion loans offering viable and existing
businesses the the capital capital needed needed to to expand. expand.
• Business take-over finance to to assist potential
clients clients to to acquire a a business as as a a going concern.
• Bridging finance finance for SMMEs for SMMEs with with short-term short-term cashflow
cashflow problems problems with contracts with contracts or tenders. or tenders.
Property management
The Property FDC administers management a diverse property portfolio
and The can FDC offer administers small to medium a diverse enterprises property portfolio suitable
premises and can offer at affordable small to medium rates. The enterprises corporation suitable has
some premises 253 at commercial affordable properties, rates. The 290 corporation industrial has
properties some 253 and commercial a large number properties, of residential 290 industrial and
vacant properties land and for development.
a large number of residential and
The vacant corporation land for development.
aims to use them to facilitate
commercial The corporation and industrial aims to activity, use them while to assisting facilitate
new commercial investors and looking industrial for suitable activity, premises. while assisting
The new FDC investors offers looking advice and for suitable guidance premises. in terms of
the The following FDC offers incentives: advice and guidance in terms of
• the Subsidised following rental incentives: rates.
• Rental Subsidised holidays rental of up rates. to three months.
• Special Rental incentives holidays of and up discounts to three months. for BEE
companies • Special or incentives individuals. and discounts for BEE
companies or individuals.
FREE STATE BUSINESS 2023
2021 2022 18 8

is renting out 18 850 sqm standalone factory including Furniture
FDC
Machinery, Equipment, and Furniture for Business
Manufacturing
PROFILE
I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H
FDC is renting out 18 850 sqm standalone factory including Furniture
I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H
Manufacturing Machinery, Equipment, and Furniture for Business
Operation..
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation..
main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Sprinkler System.
main arterial routes and Quick access onto N3 Freeway.
4 Roller Doors
factory offers the following:
Security Guard House
This
Sprinkler System.
Well fenced and secured
Investor services
Export-related services
parking
Ample
Roller Doors
4
The FDC offers a range of services to investors and The FDC services to exporters include the
Investor services
Export-related services
amps
with 100 phase power 3
businesses looking to trade in the Free State. These Export Promotion
Security House
Programme, which aims
Guard
to
boardroom, toilets, reception, offices kitchen 8 and separate 6 warehouse ablutions with
The FDC offers a range of services to investors and The FDC services to exporters include the
secured
fenced Well and
businesses include the looking following: to trade in the Free State. These Export grow demand Promotion for Free Programme, State products which in aims global
shower
to
include • Project the appraisal following: and packaging.
grow markets demand through for Free capacity-building State products parking
workshops, in global
Ample
•• Promotion Project appraisal and facilitation and packaging. of investment projects markets the dissemination through capacity-building of trade leads, workshops,
networking
power contact amps
Mr phase Tefo Occupation Matla with for available more
3 immediately. 100 Please
• and Promotion facilitation and of access facilitation to finance. of investment the opportunities dissemination with of inbound trade leads, trade networking missions,
kitchen 8 and and separate 6 warehouse boardroom, ablutions toilets, with
reception, information offices or to view:
• Providing projects and access facilitation to business access and to government
finance. opportunities product promotion with inbound through trade missions, participation product in
networks
shower
and 800 assistance Email: with tefo@fdc.co.za Tel: www.fdc.co.za
• Providing access to business and business government retention promotion outbound group through missions participation and on in national outbound
051 and
4000
and networks expansion. and assistance with business retention group international missions exhibitions, and national access to and national international exportincentive
more
• Information and expansion. on statutory
FDC IS ZERO
requirements,
TOLERANCE TO FRAUD AND exhibitions, CORRUPTION.PLEASE
programmes, access REPORT to Occupation available immediately. FRAUD national market
AND
access export-incentive information
Please contact Mr Tefo Matla for
• investment Information advice on statutory and assistance requirements, CORRUPTION with investment
INCIDENTS TO THE programmes, and FRAUD technical HOTLINE 0800 advice market 212 on 154access exporting information procedures. and ■
information view: to or
incentive advice and applications assistance with and business investment permits. incentive technical advice on exporting procedures. ■
• Assisting applications with and www.fdc.co.za
tefo@fdc.co.za Email: 800 4000 051 Tel: business the development permits. of local
Contact details
• and Assisting international with the markets development and facilitating of local
CONTACT DETAILS
joint and international ventures/equity markets partnerships and facilitating through Free Free State State Development Development Corporation
Corporation
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE
identification of local partners.
Tel: +27 51 4000 800
REPORT FRAUD AND
joint ventures/equity partnerships through Tel: +27 51 4000 800
CORRUPTION INCIDENTS TO THE Emails: FRAUD HOTLINE wecare@fdc.co.za 0800 212 154| invest@fdc.co.za
identification of local partners.
Emails: wecare@fdc.co.za | invest@fdc.co.za
Website: Website: www.fdc.co.za
www.fdc.co.za
9 919 FREE FREE STATE STATE BUSINESS BUSINESS 2023 2022
2021

A REGIONAL OVERVIEW OF
FREE STATE
Sasol One, Sasolburg. Credit: Sasol
More high-quality gas has been found at Virginia and the Gas
Project is powering ahead. Exploration is underway for a new gold
mine. A new strategy has been adopted to attract a new domestic
market for tourism. The province’s industrial parks and its Special
Economic Zone are attracting investors. All of these trends are
being supported by investment in infrastructure.
By John Young
The Free State Province is blessed
with abundant natural resources and
tourism assets. A number of measures
are being undertaken to make sure that
these advantages are recognised by potential
investors. Among the things that investors like
to see is good infrastructure and more than one
body is working to deliver that in the province.
The Provincial Government of the Free State
reports that it is working with Infrastructure
South Africa and other tiers of government to
develop a pipeline of bankable projects.
Among those mentioned by Premier Sisi
Ntombela in her State of the Province address
were projects associated with the Durban-Free
State-Gauteng Corridor, the Orange-Riet Canal,
the Vista Park, Rustfontein Water Treatment
Works and the Gariep water pipeline projects.
In the category of potential projects are the
Phuthaditjhaba Gateway, Maluti-A-Phofung
Mega City, the Gauteng-Free State Vaal River
City Region, Mangaung Airport Node and the
Provincial Broadband project.
Roads in South Africa fall under various entities
and the Free State’s central position means that it
hosts many national roads. However, the province
has committed to spend more than R1-billion on
its Access Roads Programme, which will not only
make it easier for farmers and other producers
to get their products to market, but also create
some 5 000 part-time job opportunities.
Various construction and renovation projects
are underway that will contribute to improved
infrastructure. These include indoor sport centres
FREE STATE BUSINESS 2023
10

SPECIAL FEATURE
in Dinoheng, Smithfield and Frankfort, arts
studios in three districts, the Basotho Cultural
Village and community libraries in Tumahole,
Cornelia, Bluegumbusch and Van Standensrus.
Further infrastructure investments are coming
from the likes of telecoms company Vodacom.
Several new base stations have been established
in rural villages. Bloemfontein is the site of one of
Vodacom’s new solar-powered facilities, helping in
the company’s drive to reduce its carbon emissions.
Industrial parks and SEZ
The Maluti-A-Phofung Special Economic Zone
(MAP SEZ), the strategically located area on the
N3 highway, is attracting investors to the Free
State Province. The aim is to attract R2-billion in
new investments.
Sectors prioritised at the MAP SEZ include
logistics, ICT, automotive, pharmaceuticals,
manufacturing and agro-processing. The 1 000ha
site has four zones: agro-processing, light industrial,
heavy industrial and a container terminal. Control of
the project now rests with the provincial Department
of Small Business Development, Tourism and
Environmental Affairs (DESTEA).
Other areas that are being upgraded
to provide infrastructure to encourage
manufacturing are the Phuthaditjhaba Industrial
Park and the Botshabelo Industrial Park, where
a foreign firm has started construction of a new
steel mill. The Digital Hub in the Botshabelo
Industrial Park has been launched. Young people
in Botshabelo have a space to learn how to code,
develop games and programme robotics.
New gold
An energy consulting firm announced in 2022
that the extremely positive resource findings
for the Virginia Gas Project were, in fact, an
understatement.
As it happens, the site of the project is close
to where gold was for many decades mined, an
industry that supported thousands of jobs. The
prospects for the company Renergen, which is
the owner of Tetra4, the holder of the licence to
exploit the natural gas of the area, are on the rise.
The Virginia Gas Project covers 187 000ha
in the rather flat triangle created by Welkom,
Virginia and Theunissen in the south.
Ironically, given the overall decline in gold
production and the sense that the Free State
goldfields had given all they could, Harmony is
prospecting at what it calls Target 1, just north of
its existing mines north-west of Welkom.
Provincial assets
International fuel, gas and chemicals company
Sasol regularly invests in new technologies and
in expanding production of its many products.
Mining is reduced in importance but remains a
significant employer. Harmony Gold has several
assets in the province and Sibanye-Stillwater
has undertaken a feasibility study on a property
adjacent to its existing Beatrix mine.
In agriculture, the Free State is looking forward
to the implementation of the African Continental
Free Trade Area (AfCFTA), the free trade agreement
that was stalled by the Covid-19 pandemic. The
Free State’s agricultural export basket is well suited
to trading with African states and strategies are
being considered to promote apples, asparagus,
cherries, cut flowers, sorghum, venison and wine.
The Free State produces significant proportions
of South Africa’s wheat (30%), sunflowers (45%) and
maize (45%) and is ranked third in contribution to
national GDP in agriculture.
The Free State shares borders with six other
provinces, in addition to the Mountain Kingdom
of Lesotho. A summer-rainfall region with a mean
annual rainfall of 532mm, the Free State’s climate,
soil types and topography vary greatly within the
province, with plains in the west and mountains in
the east. The western and southern areas are semidesert,
with some Karoo vegetation occurring in
the south. The southernmost region of the Free
State is a largely dry area with open grasslands
predominating, although it is also home to the
Gariep Dam, South Africa’s largest dam.
Municipalities in the Free State
The Free State has one metropolitan municipality
(Mangaung), four district municipalities and 19
local municipalities.
Mangaung Metropolitan Municipality
Mangaung Metropolitan Municipality is a Category
A municipality which governs Bloemfontein,
Botshabelo and Thaba Nchu. The sixth-largest city
11
FREE STATE BUSINESS 2023

SPECIAL FEATURE
in the country, the Mangaung municipal area
covers more than 6 263km² and has a population
of about 850 000 people. Bloemfontein is
responsible for about 25% of provincial GDP.
Xhariep District Municipality
Towns: Trompsberg, Zastron, Philipollis, Smithfield,
Wepener
The southernmost region of the Free State
is a largely dry area with open grasslands
predominating, although it is also home to the
Gariep Dam. The dam is also the site of small
hydro-power and aquaculture projects. The
nearby Tussen die Riviere Nature Reserve and
the Mynhardt Game Reserve are popular. Crops
are produced in the northern parts of the district
and sheep farming is the biggest activity in the
south. Diamonds, gravel and clay are mined at
Koffiefontein. Jagersfontein is one of the first
places where diamonds were found.
Lejweleputswa District Municipality
Towns: Welkom, Virginia, Boshof, Christiana,
Bultfontein, Bothaville
Mining is the most important economic activity in
this area, also known as the Free State Goldfields,
but it is also the most important maize-growing
area in South Africa. A large natural gas field has
been discovered on what used to be gold turf.
Bothaville hosts the annual NAMPO maize festival
and the headquarters of Grain SA. Welkom is the
major urban centre in the district.
The area has tourist assets such as a holiday
resort on the Allemanskraal Dam, the Goldfields
Wine Cellar in Theunissen and the Willem
Pretorius Game Reserve.
Fezile Dabi District Municipality
Towns: Sasolburg, Parys, Kroonstad, Frankfort,
Heilbron, Viljoenskroon
The chemical complex at Sasolburg is the
economic driver in the district, which shares a
border with Gauteng province along the Vaal
River. Kroonstad is the district’s second-largest
town and has a number of engineering works
and a railway junction.
A good proportion of South Africa’s grain
crop is sourced from this district and when the
vast fields of sunflowers and cosmos flowers are
in bloom, a marvellous vista is created. The Vaal
River presents opportunities for yachting, rafting
and resort-based enterprises. Parys is a charming
town and Vredefort is home to a World Heritage
Site – the Vredefort Dome where a meteor
crashed to earth. Fezile Dabi District Municipality
is the biggest contributor towards the provincial
GDP, accounting for approximately 35%. The
Fezile Dabi area is mostly dominated by the
industrial power of Sasol, with the manufacturing
of refined petroleum, coke and chemical products
adding largely to its GDP.
Thabo Mofutsanyana District Municipality
Towns: Phuthaditjhaba, Bethlehem, Ladybrand,
Clarens, Harrismith, Ficksburg
Tourism and fruit farming are the two principal
economic activities of this area which is
characterised by beautiful landscapes: the
Maluti and the Drakensberg mountain ranges,
wetlands in the north, well-watered river
valleys and the plains of the north and west.
The most famous asset is the Golden Gate
National Park. Industrial activity is undertaken at
Harrismith and Phuthaditjhaba, where the Free
State Development Corporation is promoting
investment. The Maluti-A-Phofung Special
Economic Zone (MAP SEZ) at Harrismith is a
multi-modal transport and logistics hub. The
commercial centre of the district is Bethlehem
while Clarens and Ficksburg have become
famous for their artists and cherries respectively.■
A sign of the (nearly) post-Covid times.
Bloemfontein’s Windmill Casino reopened
with fanfare. Credit: Sun International.
FREE STATE BUSINESS 2023
12

SCAN
TO APPLY

SPECIAL FEATURE
Free State Gambling,
Liquor and Tourism
Authority
Driving economic transformation in the Free State.
Free State Province
Center yourself in the heart of South Africa
Vision
A transformed economy and a prosperous society with an
effective, well-regulated gambling and liquor industry and a vibrant
tourism sector.
Mission
To be a leading developmental institution that drives economic
transformation, regulation and adaptation to the ever-changing
industry dynamics to benefit the Free State.
CEO of Free State Gambling,
Liquor and Tourism Authority,
Mr Kenny Dichabe
The Free State Gambling,
Liquor and Tourism
Authority (FSGLTA)
is one of the two
entities of the Department
of Economic, Small Business
Development, Tourism and
Environmental Affairs (DESTEA).
The FSGLTA was established by
the FSGLTA Amendment Act 4
of 2017, which was amended
to incorporate the former Free
State Tourism Authority and
Free State Gambling and Liquor
to form the new entity which is
known as FSGLTA.
Mandate
The mandate of of the the Free Free State State Gambling, Gambling, Liquor Liquor and Tourism and Tourism
Authority is is to to regulate the the gambling and and liquor industries within within
the province and to to market and promote tourism in in the the province.
The Authority’s purpose is to promote legally compliant, responsible,
sustainable and transformed gaming and liquor industries through
effective licensing, regulating and and reporting on the on activities the activities of of
the industries, and to to position the the Free Free State State Province as a as tourist a tourist
destination of of choice.
The gambling industry
• Invite applications for licences (gambling)
• Consider, grant or refuse applications
• Cancel, suspend, vary, renew or revoke a licence or registration
approved
• Implementation of norms and standards in the gambling industry
as determined by the National Gambling Act
• Ensure that gambling activities are effectively regulated, licensed
and controlled
• Ensure compliance to the act, rules and regulations
The liquor industry
• Receive applications for registrations (liquor)
• Reduce the socio-economic and other costs of alcohol
• Promote the development of a responsible and sustainable liquor
industry in relation to gambling
• Generate revenue for the Free State Province
FREE STATE BUSINESS 2021 2023
22 14

SPECIAL FEATURE
Image: iStock
The tourism industry
It is important that the FSGLTA intensifies
its efforts to ensure effective marketing
of the province in order to attract
domestic tourists as well as international
tourists. The province continues to
enhance tourism infrastructure, up-skill
the sector, inculcate the culture of service
excellence and enhance the provision
of world-class visitor experiences. The
Authority has partnered with event
organisers and tour operators to market
and promote the Free State as a tourist
destination. These are achieved through
the following:
• Forging strategic partnerships with the
public and private sectors to leverage
from each the capability and capacity
to improve the industry
• Streamlining the impact of events
through partnerships and sponsorships
• Improving on Meetings, Incentives,
Conferencing and Events (MICE) as a
focused growth area of the market
• Continuous review of the marketing
plans to stay on par with the industry
trends. ■
GAMBLING AND LIQUOR CONTACT DETAILS
• Mangaung Metro Abraham Classen
classena@fsglta.gov.za | 051 404 0320 | 079 506 0272
• Thabo Mofutsanyana Peter Gift Poli Moleko
molekop@fsglta.gov.za 078 439 9316
| 078 309 4178
• Lejweleputswa Thabo Peter Moleko Tlake
tlaket@fsglta.gov.za 078 309 4178 | 057 492 0001 | 072 533 6681
• Fezile Dabi Bongakele Nzunga
nzungab@fsglta.co.za | 056 492 0001 | 082 256 5926
• Gariep Abraham Classen
classena@fsglta.gov.za | 051 404 0320 | 079 506 0272
TOURISM ROUTE CONTACT DETAILS
Flamingo • Cheetah RouteNthabiseng Methola
076 cheetah@freestatetourism.org 513 8988
| 073 125 1614
Lion Route
• Eagle Route Bonolo Molefe
084 951 1564
eagle@freestatetourism.org | 072 056 6090
Springbok Route
071 • Flamingo 873 5916 Route Dineka Lephowane
flamingo@freestatetourism.org | 073 796 8577
• Lion Route Keakabetse Ramokonopi
lion@freestatetourism.org | 084 951 1564
• Springbok Route Kefiloe Molefe
molefek@fsglta.gov.za | 079 496 2999
23 FREE STATE BUSINESS 2021
15 FREE STATE BUSINESS 2023

FOCUS
Environmental
sustainability
The Environment and Conservation Branch is working to promote a pristine
environment that facilities economic transformation.
FOCUS
Environmental sustainability within the Free
State Province is conducted within the
prescripts of promoting Section 24 of the
South African Constitution, recognising
and promoting environmental rights as contained
in the Bill of Rights. We also recognise our
responsibility to promote a pristine environment
that facilitates a transformative economic agenda
to create jobs and a just society.
The main focus areas are:
• Environmental Quality and Protection:
environmental education and awareness; waste
and air quality management; environmental
impacts and assessments; EPWP. Also promoting
the circular economy with a particular focus on
waste and recycling.
• Biodiversity Conservation and Research:
maintenance of resorts and reserves;
protected areas maintenance and expansion;
biodiversity research; game culling and
auctions including the transformation
and promotion of Biodiversity Economy;
transformative entrepreneurship; development
and promotion of the wildlife economy.
Current considerations
• Ensuring sustainable environmental
management.
• Improve national and provincial state of
environmental reporting.
• Integration of environmental objectives in
national, provincial and instruments and tools.
• Implementation of Chapter 4 of NEMA provisions
in relation to fair decision-making and conflict
management (conciliation, arbitration and
investigations). Responding to EIA complaints
and appeals without compromising on
economic transformation, job creation and the
promotion of spatial integration.
Conservation priorities
The Free State is 128 000km² in extent, or
12.8-million hectares. This means that it is the
third-largest province in South Africa. Located
in the centre of the country, with ideal soils and
climate, the province is an extremely important
food producer and the environmental health of
the province is therefore vital to the food security
of the country.
The province boasts a strong conservation
mindset, not only from within the DESTEA but
also from land owners generally.
Prior to the adoption of the Free State Protected
Area Expansion Strategy there were already 240
formally declared Nature Reserves in the province.
Since the inception of the Biodiversity Stewardship
programme an additional 53 000 hectares of
private land have been declared and added to
the conservation estate. Priority focus is now
on extending these conservation areas into the
remaining natural areas of the province thereby
conserving wetlands, rivers, terrestrial ecosystems
and species for future generations.
In addition to the formal conservation areas,
there are over 300 000 hectares of game and
mixed-species ranches. The province generates
over R600-million per annum from the local
hunting industry, which maintains many huntingsupport
businesses such as taxidermists, curio
producers, etc. ■
FREE STATE BUSINESS 2023
29 FREE STATE BUSINESS 2021
16

State Province
FOCUS
Growing the
tourism sector
Dr Mbulelo Nokwequ, Head of Department at
DESTEA, outlines some of the Free State’s
unique selling propositions.
The Tourism Unit of DESTEA is providing market access for local operators.
Free State Province is situated in the heart of South Africa and
DESTEA’s shares borders with Tourism Lesotho Unit’s and objective six other provinces. is to It provides
easy access grow the tourism sector’s contribution
to Free the State main economy. ports of In Durban, achieving
East London and
Port Elizabeth.
The Free State this, is various an attractive activities business and functions and investment are destination.
The performed, province is which at the include: centre of South Africa and the dominant sectors
are
•
agriculture,
Creating a
mining,
conducive
manufacturing
environment
and
for
the
tourism
tertiary
to
sectors, making
it ideal
thrive
for transport logistics and agro-processing.
• Formulating and implementing a Provincial
Companies locating to Free State not only enjoy the opportunity to
Tourism Sector Strategy to guide tourism activities
source inputs at competitive prices, but also to benefit from domestic,
in the province
regional and international markets for their products and services.
• Providing market access opportunities both
Because South Africa has been engaging with our economically large
locally and internationally to provincial tourism • Promotion of tourism safety through among others,
trading partners, access to international markets is facilitated through
enterprises
programmes such as the Provincial Joint
various
• Roll
trade
out programmes
preferences and
to enhance
free-trade
visitor
agreements.
services Operational and Intelligence Structure (Provjoints),
As
and
far
experience
as long-term investment is concerned, there are
with
industrial
law enforcement agencies, and also through
parks • Facilitate and a Special and promote Economic tourism Zone (SEZ) education that are and supported implementing by the the Tourism Monitors Programme.
Department capacity-building of Trade, for Industry the tourism and sector Competition. Industrial parks
are • Promote situated in the Maluti-A-Phofung, culture tourism Botshabelo and service and Thaba Journey Nchu. to Service • an Excellence idyllic climate
Maluti-A-Phofung excellence SEZ is situated in Tshiame.
The J2SE will focus • recreational nominating and lifestyle a small town
• The Promote Free State’s transformation strengths of for the inward tourism investment sector for are boosted in the rural by: tourism facilities. nodes and assisting the
•
•
•
•
openness inclusive tourism business, economy, trade and as well foreign as providing investment
abundance support to of youth natural and resources women in tourism
• low Facilitating factory rentals events tourism to reduce seasonality
Africa’s and enhance leading geographic telecommunications spread network
town to develop a service excellence-orientated
culture in their Select organisations investment opportunities
and different
structures with include: strong media attention and focus
during the activation. • Agriculture A town and will agroprocessing
be identified
•
•
•
of Service Excellence will be
• incentive Facilitate packages funding uniquely for initiatives developed that for seek Special to Economic and the Zones principles
incentives develop and associated grow tourism with the in the revitalised province industrial parks communicated • to all Tourism organisations. and property A criterion has
Free State Development Corporation (FDC) support services been for developed development for the nomination which
priority sectors such as agro-processing and manufacturing has been shared • Medical and discussed and pharmaceutical with relevant
•
•
a large labour pool
diverse cultures
stakeholders. production A number of and activities distribution will be
implemented • Manufacturing
anticipation of the big media
• competitive land and building cost
event to launch • Renewable J2SE Town. and clean energy
• world-class transport and telecommunications infrastructure At its core, • the Medical J2SE aims tourism.
bring together
the entire town including restaurants,
accommodation facilities, tourist attractions,
police, banks and petrol attendants, among
7 others, to be informed, FREE trained STATE and BUSINESS exposed 2020 to
the four components of the SANS 1197:2012.
A secondary objective of this programme is
to establish a local Tourism Service Excellence
structure or to link with existing structures to
build a sustainable service culture. ■
FOCUS
FREE STATE BUSINESS 2021
1728
FREE STATE BUSINESS 2023

PROFILE
Maluti-A-Phofung SEZ
Special
investment Economic Zone opportunities
A The diamond SEZ is booming waiting to with be investment unearthed in to the Free tune State. of R1.1-billon for 2020.
MAP SEZ CEO Mpho Mgemane
Maluti-A-Phofung
The Maluti-a-Phofung
Special Special Economic Economic
Zone,
known Zone (MAP colloquially SEZ) has
as the been MAPSEZ, established an in
terms initiative of the of the Special South Economic
African
Zones government Act No supported 16 of 2014. by The
the
programme Department of is Trade, intended Industry to
deepen and Competition industrial (dtic) development
to establish
manufacturing improve manufacturing
opportuni-
and
competitiveness ties and to create in a regional the Maluti-
and
A-Phofung international region.
trade environment
with Since an added the value Durban chain port within
the busiest Free State in Province. the southern
hemisphere, MAPSEZ it is therefore a subsidiary means
of
is
the
that the the Free N3 State carries Development
the majority
Corporation, an economic
development agency operating
in the province. In April 2017, the
MAPSEZ was officially launched
on 1 038 hectares of land and
was granted an operator permit
by the Department of Trade,
Industry and Competition. This
Special Economic Zone (SEZ) is
of growing the traffic at a to steady different rate locations notwithstanding in South the Africa challenges and neighbouring
presented
countries by the advent such of as the Lesotho Covid-19 and Swaziland. pandemic. Through In this article its cross-docking
you will be
precinct presented and with its five logistics reasons and why warehousing you should sectors invest in the the MAPSEZ
presents and help itself us grow as a solution the economy to lighten and create the traffic a better pressure life for on all. the N3.
This Special Economic Zone (SEZ) is part of the Free State leg
of FIVE the REASONS massive Durban-Free WHY YOU SHOULD State-Gauteng INVEST IN logistics THE MAPSEZ and industrial
corridor STRATEGIC that LOCATION is intended to strengthen the logistics and transport
corridor MAPSEZ between is strategically South located Africa’s main on the industrial N3 commercial hubs to:
road corridor
• between Ignite the Johannesburg, economy of the region economic through heartbeat industrialisation.
of South Africa and
• Durban, Attract foreign which houses and direct the busiest investment.
port in Sub-Saharan Africa.
• Create The access Special to Economic export and Zone’s import location markets.
in relation to the major
• metropolitan Integrate Free economies State industrial of the strategy country activities and into its easy the corridor.
access to
• transport Create job infrastructure opportunities make and grow it a haven the economy for businesses within the operating region.
in the logistics and warehousing sectors looking for a rest-stop to
store their goods between deliveries. MAPSEZ’s location also provides
investors easy access to the national transport infrastructure for the
conveying of their goods within South Africa.
TAX INCENTIVES
Several incentives are available to ensure MAPSEZ’s growth, revenue
generation and international competitiveness. These incentives
include a reduction of the corporate business tax from 28% to 15% for
all businesses operating within the SEZ.
This is among the many incentives developed by the national
government for the benefit of Special Economic Zones and enterprises
operating within them.
Objectives
As VACANT part of LAND its mandate, AND FACTORIES the MAP AVAILABLE SEZ is intended FOR RENTAL to establish
manufacturing The SEZ is nestled opportunities on a 1 038ha and of create land a divided regional into and four international
precincts
trade which environment includes cross with docking added and value-chain a container benefits. terminal. It has also been
established Within these to simulate precincts social the and entity economic has numerous benefits vacant and factories regional
and large parcels of land available for development lease at preferable and to rates create
as a
“first mover advantage” for investors a establishing prosperous or trade relocating city their and
businesses to the SEZ during its formative functional years. trade ecosystem.
Finally, to encourage
beneficiation activities that
promote value-added benefits
and help to create a prosperous
trade city and functional trade
ecosystem.
FREE STATE BUSINESS 2021 2023
20
18

TAILOR-MADE LEASE TERMS
The MAPSEZ offers prospective
investors various types of lease
terms tailor-made to suit their
business needs. The investors can
either enter lease-only contracts,
where they lease the land and
construct their own factories on
the land or where they choose
to renovate existing factories at
preferential lease rates.
PROXIMITY TO MAJOR
AGRICULTURAL
PRODUCTION AREAS
MAPSEZ is geographically
located within one of the
country’s biggest farming
regions. Potatoes, soybean,
sorghum, sunflower and wheat
are some of the natural resources
cultivated in the eastern Free
State. This makes MAPSEZ an
ideal investment destination for
food processors and other agroprocessing
businesses.
INVESTMENT PROMOTION
The SEZ is also well suited for
general manufacturing, offering
a convenient production
base for light and medium
manufacturing operations. With
excellent logistics links to the
country’s industrial heartland, the Port of Durban and the southern
Bloemfontein/Cape Town route, MAPSEZ is an obvious choice for
investors seeking cost-effective location to service domestic and
export markets.
Since inception MAPSEZ has engaged numerous investors and
through these engagements has built a pipeline of lucrative local and
international investments to the tune of R4.8-billion. From this pipeline
MAPSEZ is proud to announce that it has secured investments from
five investors to the value of R1.4-billion in various sectors such as agroprocessing,
chemical blending and synthetic-hair manufacturing. With the
addition of these investors, there are now 23 operating businesses within
the SEZ with a total investment value of approximately R5.1-billion.
Furthermore, the additional investments have created a total of 162
new jobs, bringing the total number of jobs created within the SEZ to
approximately 1 288. MAPSEZ is now gaining momentum in terms of
attracting local and foreign investors and is supported by its healthy
investment pipeline which will create an estimated 1 431 new jobs.
Get in touch with our team and let’s see how we can grow the
economy while creating meaningful job opportunities for communities. ■
CONTACT:
Maphoka Setai: Investment Promotion Manager
Cell: +27 78 800 2162 | Email: maphoka@mapsez.co.za
Website: www.mapsez.co.za
19 FREE STATE BUSINESS 2023

SPECIAL FEATURE
Establishing a business
in South Africa
South Africa has eased the barriers to doing business for locals as well as
international companies and individuals.
new legislation, no new Close Corporations can
be created but CCs can convert to companies.
Registration of company
The company must be registered with the
Companies and Intellectual Proper ties
Commission (CPIC) in Pretoria within 21 days of
the company being started. There are a range of
administrative procedures that need to be fulfilled.
Bank account
A business bank account must be opened in the
company’s name with a bank in South Africa.
South Africa has a sophisticated legal,
regulatory and banking system. Setting
up a business in South Africa is a relatively
straightforward process with assistance
being offered by organisations such as the
Department of Trade, Industry and Competition
and provincial investment agencies like the Free
State Development Corporation (FDC).
South African law regulates the establishment
and conduct of businesses throughout the
country. Tax, investment incentives, regulations
governing imports, exports and visas are uniform
throughout the country.
The particular environment varies from
province to province with regard to the availability
of human and natural resources, the infrastructure
and support services, business opportunities and
the quality of life. In this respect, the FDC can offer
specific advice about the business environment in
the province.
Business is regulated by the Companies Act
and the Close Corporation Act, which cover
accounting and reporting requirements. Under
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable on
money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the
Department of Labour regarding mandatory contributions
to the Unemployment Insurance Fund
(UIF). Register with Compensation Commissioner
for Compensation Fund: Files with the Compensation
Fund (in the Department of Labour) for
accident insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh
foodstuffs or health matters.
Other procedures
• Checking exchange control procedures (note
that non-residents are generally not subject to
exchange controls except for certain categories
of investment).
FREE STATE BUSINESS2022
2023 2021
20
26

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SPECIAL FEATURE
• Obtaining approval for building plans
• Applying for industry and export incentives
• Applying for import permits and verifying import
duties payable
• Registering as an exporter if relevant and
applying for an export permit.
Business entities
There are a variety of forms which businesses can
take, including private and public companies,
personal liability companies, non-profit companies,
state-owned companies and even branches of
foreign companies (or external companies).
Branches of foreign companies fall under
Section 23 of the Companies Act of 2008 and are
required to register as “external companies” with
the CIPC. An external company is not required
to appoint a local board of directors but must
appoint a person resident in South Africa who
is authorised to accept services of process and
any notices served on the company. It must also
appoint a registered local auditor and establish a
registered office in South Africa.
Patents, trademarks and copyrights
Trademarks (including service marks) are valid for
an initial period of 10 years and are renewable
indefinitely for further 10-year periods. Patents are
granted for 20 years, normally without an option
to renew. The holder of a patent or trademark
must pay an annual fee in order to preserve its
validity. Patents and trademarks may be licensed
but where this involves the payment of royalties
to non-resident licensors, prior approval of the
licensing agreement must be obtained from
the dtic. South Africa is a signatory to the Berne
Copyright Convention.
Permits for foreign nationals
Work permits
In considering whether or not to grant a work
permit, the Department of Home Affairs will first
evaluate the validity of the offer of employment
by conducting a number of checks to confirm the
following:
• Has the Department of Labour been contacted?
• Has the position been widely advertised?
• Is the prospective employer able to prove that he
or she has tried to find a suitably qualified local
employee prior to hiring a foreigner?
• Is the prospective employee appropriately
qualified and do they have the relevant
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Business permits
Foreign nationals who wish to establish their own
business or a partnership in South Africa must,
apart from having sufficient funds to support
themselves and their family, be able to invest at
least R2.5-million in the business.
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
CORRUPTION The INCIDENTS funds TO THE FRAUD HOTLINE must 0800 212 154 originate overseas, be
transferable to South Africa and belong to the
applicant (ie emanate from the applicant’s own
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
bank account). The business must also create
jobs for South African citizens. After six months
to a year, proof will have to be submitted that the
business is employing South African citizens or
permanent residents, excluding family members
of the employer.
Applications for work permits for selfemployment
can only be lodged at the South
African Consulate or Embassy in the applicant’s
country of origin. The processing fee is US$186. The
applicant would also have to lodge a repatriation
guarantee with the consulate/embassy equivalent
to the price of a one-way flight from South Africa
back to his or her country of origin.
This guarantee is refundable once the
applicant has either left South Africa permanently
or obtained permanent residence. Any application
for an extension of a business permit may be
lodged locally. The processing fee per passport
holder is R425. Some countries also need to pay
R108 per return visa.
A list of countries to which this applies is
available from the Department of Home Affairs.
The FDC assists investors in applying for the
relevant work permits to conduct their business.
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FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
What can the FDC do for you?
The FDC will help new businesses by assisting in
project appraisal and packaging, putting investors
in touch with relevant agencies and government
departments, alerting investors to investment
incentives and setting up joint ventures where
it is required. ■
27 21 FREE STATE BUSINESS 2021
2023 2022

SPECIAL FEATURE
South African
investment incentives
The South African government, particularly the Department of Trade, Industry
and Competition, has a range of incentives available to investors, existing
companies, entrepreneurs and co-operatives across many sectors.
South Africa wishes to diversify its economy
and incentives are an important part
of the strategy to attract investors to
the country.
The Department of Trade, Industry and Competition
(the dtic) is the lead agency in the
incentives programme, which aims to encourage
local and foreign investment into targeted
economic sectors, but the Industrial Development
Corporation (IDC) is the most influential funder of
projects across South Africa.
There are a variety of incentives available
and these incentives can broadly be categorised
according to the stage of project development:
• Conceptualisation of the project – including
feasibility studies and research and develop-
ment (grants for R&D and feasibility studies,
THRIP, Stp, etc)
• Capital expenditure – involving the creation
or expansion of the productive capacity of
businesses (MCEP, EIP, CIP, FIG, etc)
• Competitiveness enhancement – involving the
introduction of efficiencies and whetting the
competitive edge of established companies and
commercial or industrial sectors (BBSDP, EMIA,
CTCIP, etc)
• Some of the incentives are sector-specific, for
example the Aquaculture Development and
Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
FREE STATE BUSINESS 2023 2022 2021
22 24

SPECIAL FEATURE
Manufacturing
Key Key components of of the the incen-
tive tive programme are are the the Manufacturing
Incentive Programme
(MIP) and and the the Manufacturing
Competitiveness Enhancement
Programme (MCEP). The The initial
MCEP, launched in in 2012,
was was so so successful that that it it was was
oversubscribed with with almost 890 890
businesses receiving funding.
A A second phase of of the the programme
was was launched in in 2016. The The grants are are
not not handouts as as the the funding covers a a maximum
of of 50% 50% of of the the cost cost of of the the investment, with with the the
remainder to to be be sourced elsewhere.
The The Enterprise Investment Programme (EIP) (EIP)
makes targeted grants to to stimulate and and promote
investment, BEE BEE and and employment creation in in the the
manufacturing and and tourism sectors.
Aimed at at smaller companies, the the maximum
grant is is R30-million. Specific tax tax deductions are are
permissible for for larger companies investing in in the the
manufacturing sector under Section 12i 12i of of the the
Income Tax Tax Act. Act.
Other incentives
Other incentives that that are are available to to investors as as
well well as as existing businesses in in more than than one one sector
include the the following:
• Technology • and and Human Resources for for Industry
Programme (THRIP)
• Support • Programme for for Industrial Innovation (SPII) (SPII)
• Black • Business Supplier Development Programme
(BBSDP), which is is a a cost-sharing grant offered to to
black-owned small enterprises
• Critical • Infrastructure Programme (CIP) (CIP) that that covers
between 10% 10% and and 30% 30% of of the the total total development
costs of of qualifying infrastructure
• Co-operative • Incentive Scheme, which is is a a
90:10 matching cash cash grant for for registered primary
co-operatives
• Sector • Specific Assistance Scheme, which is is a a
reimbursable 80:20 cost-sharing grant that that can can be be
applied for for by by export councils, joint joint action groups
and and industry associations.
I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H
I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H
FDC is renting out 18 850 sqm standalone factory including Furniture
FDC is renting out 18 850 sqm standalone factory including Furniture
T I D S R A P O E Manufacturing Machinery, Equipment, and Furniture for Business
I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R R T I Y S T M O I R T E H
N Manufacturing T Machinery, I Equipment, N and H Furniture A for Business R I S M I H
N U T I L R P
Operation..
Operation..
FDC
is
is
renting
renting
out
out
18
18
850
850
sqm
sqm
standalone
standalone
factory
factory
including
including
Furniture
Furniture
FDC
Equipment, and Furniture for
Manufacturing Machinery, Equipment, and Furniture for Business
Business
Manufacturing
The factory is Situated at Site 2277 in Harrismith close proximity to all amenities, on
Machinery,
is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
The
Operation..
factory
onto Operation..
N3 Freeway.
main arterial routes and Quick access
and N3 arterial Freeway.
onto main access routes Quick
This following:
the offers factory
in 2277 Site at Situated is The on
amenities, all to following:
the offers factory This proximity close and Harrismith
proximity close and Harrismith in 2277 Site at Situated is factory The on
amenities, all to
System.
Sprinkler
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tefo@fdc.co.za Email: 800 4000 051 Tel: shower
www.fdc.co.za
tefo@fdc.co.za Email: 800 4000 051 Tel:
available Please Mr Matla more
FDC IS ZERO TOLERANCE TO FRAUD AND for Occupation immediately. contact Tefo
contact available Mr immediately. Tefo Please Matla Occupation for CORRUPTION.PLEASE more
REPORT FRAUD AND
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
view: to or information
information or to view:
Incentives for for SMMEs
051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za
Tel:
051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za
Tel:
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
A A lot lot of of emphasis is is placed on on the the potential
role role of of small, medium and and micro enterprises in in
job job creation and and a a number of of incentives are are
designed to to promote the the growth of of these
businesses. These include:
• Small • Medium Enterprise Development Programme
Programme (SMEDP)
(SMEDP)
• Isivande • Women’s Fund
• Seda • Technology Programme (Stp).
• Seda • is is the the Small Enterprise Development Agency,
an an agency of of the the Department of of Small Business
Development that that exists to to promote SMMEs.
Trade-related incentives
The The Export Marketing and and Investment Assistance
(EMIA) Scheme includes support for for local
businesses that that wish wish to to market their their businesses
internationally to to potential importers and and
investors. The The scheme offers financial assistance
to to South Africans travelling or or exhibiting abroad
as as well well as as for for inbound potential buyers of of South
African goods. ■ ■
Online Resources
De De partment of of Trade, Industry and and Competition:
www.thedtic.gov.za
Free Free State Development Corporation:
www.fdc.co.za
Industrial Development Corporation:
www.idc.co.za
Official South African government incentive
schemes: www.investmentincentives.co.za
25 25 23 23 FREE FREE STATE BUSINESS 2021 2022 2021 2022 2023

trade with the biggest of the BRICS
wo-way trade between the countries in
worth $39.1-billion. South Africa wants
ourist numbers from China. South Africa
the first country in the world to export
hina in 2017, to SPECIAL go with FEATURE existing exports
e,
anese
platinum
ore
and fruit and wine.
208.2% 14.2%
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8309
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8300 8300
Postal: Private Tel: 053 Bag Bag 839 X6108, 4000 Kimberley, | Fax: 0538300
832 8301 6805
Free State
Tel: Tel: 053 053 Web: 839 839 http://economic.ncape.gov.za
4000 4000 | Fax: | Fax: 053 053 832 832 6805
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Web: http://economic.ncape.gov.za
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2019/20
2020/21 2018/19
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of 2018 were valued at R63.9-billion (Financial
Mail). The renewable energy programme
SPECIAL South FEATURE
South
African
African
economy
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at
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17 SOUTH AFRICAN BUSINESS 2019 glance
Insight into the South African ecomomy. economy.
SPECIAL FEATURE Source: world exports.com
South economy at a glance
re visiting South Africa in record numpe
Town’s Air Access programme has
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2%
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14%
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6%
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SOURCE: STATS SA WWW.STATSSA.GOV.ZA
several more are in the pipeline.
• New stock exchanges came on line in 2017 and
more are expected.
• Investment in infrastructure (especially ICT and
railways) is strong. Nedbank’s report on capital
expenditure in South Africa stated that the
29 large projects announced in the first half
177.9% 16.6%
re 149.1% 13.3%
: StatsSA.com
ral sales increased by 152.7%
on-year in April 2021.
BOTSWANA
North West
6%
Free State
5%
Eastern Cape
Free
8%
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5%
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8%
Gauteng
35%
ZIMBABWE
Mpumalanga
7%
ZIMBABWE
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7% Natal
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Gauteng
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est contributors % increase % contribution
s 465.9% 103%
LESOTHO
ore 115.6% 19.5%
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14%
secured tens of thousands of new seats on direct
S 2019 Trends Table: South African mining production
flights to and from the city).
• Companies are successfully trading into Africa.
Source: Good Increased signs for world the economy by exports.com
116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with
Percentage contribution of each province to national GDP.
• Several provincial governments and investment macadamia nuts being the most successful.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
agencies are establishing trade relations and Pecan nuts have done well and wine and grape
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution
are growing.
visits to and from China immediately before and • Private education at school and tertiary level is
after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
secured growing tens as of a thousands sector. of new seats on direct
Trends Table: Platinum South Group African Metals mining 276.1% production
flights to and from
39.2%
the city).
increased trade with the biggest of the BRICS• Companies several more are successfully are in the pipeline. trading into Africa.
Good Increased signs nations. for the Two-way economy by 116.5% trade include: between year-on-year the countries in• Niche • New in agricultural stock April exchanges markets 2021. came are on booming line 2017 with and
2017 was worth $39.1-billion. South Africa wants more are expected.
• Several provincial governments and investment macadamia nuts being the most successful.
to Gold grow tourist numbers from China. South Africa 177.9% •
agencies are establishing trade relations and Pecan
Investment
nuts have
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done
infrastructure
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study
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programmes
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country
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in
countries.
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to export railways) is strong. Nedbank’s report on capital
Largest contributors % increase exports to China % contribution
are growing.
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
visits to and from China immediately before and • Private education at school and tertiary level is
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
growing as a sector.
• Tourists are visiting South Africa in record numbers
(Cape Group Town’s Air Metals Access programme 276.1% has Mail). The 39.2% renewable energy programme
of 2018 were valued at R63.9-billion (Financial
Platinum
increased trade with the biggest of the BRICS several more are in the pipeline.
nations. Iron Two-way oretrade between the countries in149.1% • New stock exchanges 13.3% came on line in 2017 and
2017 was worth $39.1-billion. South Africa wants more are expected.
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure SOUTH AFRICAN (especially BUSINESS ICT and 2019
became
Source:
the first
StatsSA.com
country in the world to export railways) is strong. Nedbank’s report on capital
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
• Tourists are visiting South Africa in record numbers
(Cape Town’s Air Access programme has Mail). The renewable energy
of 2018 were valued at R63.9-billion (Financial
programme
ce: StatsSA.com
40.9% 6.5%
Iron ore
Table: South African mineral 149.1% sales 13.3%
Mineral sales increased by 152.7%
Source: year-on-year StatsSA.comin April 2021.
MOZAMBIQUE
SPECIAL FEATURE
SWAZI-
LAND
KwaZulu-
Natal
16%
17 SOUTH AFRICAN BUSINESS 2019
Western Cape
14%
Percentage contribution of each province to national GDP.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
Eastern Cape
8%
LESOTHO
Iron Source: ore world exports.com115.6% 19.5%
Physical: Metlife Towers, 7% JOIN US ONLINE
13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309
Postal: Private Bag X6108, Kimberley, 8300
Tel: 053 839 4000 | Fax: 053 832 6805
Web: http://economic.ncape.gov.za
Email: dedat@ncpg.gov.za
Gauteng
Mpumalanga
35%
7%
North West
6%
SWAZI-
LAND
KwaZulu-
Natal
16%
JOIN JOIN US U
secured tens of thousands of new seats on direct
Trends Table: South African mining production
flights to and from the city).
• Companies are successfully trading into Africa.
Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with
• Several provincial governments and investment macadamia nuts being the most successful.
agencies are establishing trade relations and Pecan nuts have done well and wine and grape
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution
are growing.
visits to and from China immediately before and • Private education at school and tertiary level is
after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
growing as a sector.
Platinum Group Metals 276.1% 39.2%
increased trade with the biggest of the BRICS several more are in the pipeline.
nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and
2017 was worth $39.1-billion. South Africa wants more are expected.
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and
became the first country in the world to export railways) is strong. Nedbank’s report on capital
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
• Tourists are visiting South Africa in record numbers
(Cape Town’s Air Access programme has Mail). The renewable energy
of 2018 were valued at R63.9-billion (Financial
programme
MOZAMBIQUE
Iron ore 149.1% 13.3%
Source: StatsSA.com
Source: world exports.com
Table: South African mineral sales
Mineral sales increased by 152.7%
year-on-year in April 2021.
UE
17 SOUTH AFRICAN BUSINESS 2019
Largest contributors % increase % contribution
PGMs 465.9% 103%
Gold 40.9% 6.5%
Source: StatsSA.com
Source: world exports.com
Source: world exports.com
Largest contributors % increase % contribution
Table: South African mineral sales
Mineral PGMs sales increased by 152.7% 465.9% 103%
year-on-year in April 2021.
Iron ore 115.6% 19.5%
Largest Goldcontributors % increase 40.9% % 6.5% contribution
PGMs Source: StatsSA.com 465.9% 103%
Iron ore 115.6% 19.5%
Source: world exports.com
Credit: SA Tourism/Flickr

WWW.NORTHERNCAPEBUSINESS.CO.ZA
ONLINE JOIN S US ONLINE
WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBU
| | 10 REASONS
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HOT EMERGING
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South Africa (SA) has the most industrialised economy in Africa.
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SA is the location of choice of multinationals in Africa.
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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
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RESOURCES
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operate in SA, which also has world-renowned underground mining expertise.
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AND LOGISTICS
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sports offering all year round and a world-renowned hospitality sector.
EXCELLENT QUALITY
OF LIFE
Page | 2
19
SOUTH AFRICAN BUSINESS 2020

KEY SECTORS
Overviews of the main economic
sectors of the Free State
Agriculture 28
Mining 30
Oil and gas 32
Manufacturing 34
ICT 35
Tourism 36
Development finance and SMME 37
Education and training 38
The giant SASKO Bethlehem Mill employs 96 people and mills 144 000 tons of wheat annually. Its three
production lines make cake flour and white-bread flour while a blending facility produces brown-bread
meal and complete mixes. Credit: SASKO

OVERVIEW
Agriculture
Transformation through training is working.
SECTOR INSIGHT
The Vrede Dairy Project
has been handed over.
Emerging farmers are earning qualifications and learning new
skills through the Agribusiness Transformation Programme.
Credit: Standard Bank
A
three-way partnership is delivering results in terms of
giving emerging farmers a better chance of success.
The Centre for Sustainable Agriculture at the University
of the Free State, Standard Bank and the Free State Department
of Agriculture and Rural Development came together
to launch the Agribusiness Transformation Programme in 2019.
The programme has a focus on improving three kinds of access:
to information, markets and finance.
A skills programme targets emerging farmers who have at least
three years of farming experience, either own their own land or
farm on rented land and live permanently on their farms. The first
groups of 25 farmers per year have graduated from classroom and
practical training.
Various agro-business skills are taught in the classroom phase,
including animal management, crop production, water and soil
management and pasture management. The two-year mentorship
which follows is overseen by local Standard Bank staff and experts from
the department and the university.
The Integrated Vrede Dairy Project, which was in the news for all
the wrong reasons during the period of State Capture, was handed
over, in the words of the Provincial Premier in the State of the Province
address, to its 65 “rightful beneficiaries” in the course of the 2021/22
financial year. A trust representing these owners has a 51% stake with
the balance available to private investors. A total of 583 dairy animals
have been given to the trust by
the provincial government to
help them get started.
The provincial government
is also taking the initiative in
promoting cannabis as an
agricultural product of the future.
Six sites have been identified at
Bethlehem, Ficksburg, Kroonstad,
Viljoenskroon, Wesselsbron and
the Glen Agricultural Training
Institute, which will be used as a
research site.
The Glen Agricultural Training
Institute is a public institution of
the Department of Agriculture
and Rural Development and
specialises in the higher and
further education training band.
The campus comprises nearly
4600ha. The Modder River runs
to the south of the site, with the
Renosterspruit as tributary.
Five agri-parks are being
constructed in each of the Free
State’s district municipalities.
The concept brings together
farmers, traders and agroprocessors
at convenient sites.
Support for rural smallholders
will be available in terms of
equipment hire from a central
source, storage facilities,
packaging of produce and
getting products to market.
FREE STATE BUSINESS 2023
28

OVERVIEW
Agroprocessing is an important part of the Free State economy.
The production lines of the Bethlehem Sasko Mill process about
144 tons of wheat every year. Credit: SASKO
As part of the agri-parks programme a warehouse is under
construction at Springfontein and the Thaba Nchu abattoir is being
upgraded. In Sediba, Farmer Production Support Units supplied a
tractor and implements to participants.
Private companies
The SASKO Bethlehem Mill has a total of 96 employees and mills 144 000
tons of wheat every year. Bethlehem was chosen because of its proximity
to excellent wheat-producing areas and for its strategic location in terms
of logistics: the busy N3 freeway is just 90km away.
Transnet Freight Rail (TFR) has plans to double volumes of grain
transported out of its Bethlehem facility. VKB Agriculture is one of the
companies that will benefit if TFR can increase its capacity to 550 000
tons for the season, as it plans.
VKB is already a diverse group, with the capacity to produce
soybean meal and soybean cake and flour from its plants, mills
and factories. Grain Field Chickens, a large abattoir in Reitz, is one
of the company’s biggest facilities in the province. The Industrial
Development Corporation (IDC), which has a 23% stake in the project,
aims to help develop the Free State as the poultry hub of South Africa.
VKB has six agro-processing companies including VKB Flour Mills and
Free State Oil and is active in auctioning, storage, packaging and fuel
sales, among other activities. VKB’s headquarters are in Reitz in the
eastern part of the province and the group is one of the province’s
largest employers.
The Imbani Homsek Group is an integrated dairy-products
producer with one of the biggest Ayrshire herds in the world. The
head office of Country Bird Holdings is in Bloemfontein: its brands
are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird
Logistics controls 45 chilled and frozen vans.
ONLINE RESOURCES
Agricultural Research Council: www.arc.agri.za
Bothaville: www.bothaville.info
Free State Department of Agriculture and Rural Development:
www.ard.fs.gov.za
Grain SA: www.grainsa.co.za
Clover has three factories
in the Free State: Bethlehem
(milk powder, whey mixtures
and creamers); Frankfort (butter,
the largest such factory in
the country, where ghee and
roller dried milk powder is also
made) and in Heilbron (whey,
buttermilk, condensed milk and
packaging).
Bothaville hosts the country’s
largest agricultural festival,
NAMPO Harvest Day. Bothaville
falls under the North West in
the organisational chart of giant
agricultural company Senwes,
which has its headquarters in
Klerksdorp. The rest of the Free
State is divided into three regions
by Senwes, which deals with about
20% of the country’s oilseeds and
grain through its 68 silos.
The province supplies
significant proportions of
the nation’s sorghum (53%),
sunflowers (45%), potatoes
(33%), groundnuts (32%), dry
beans (26%), wool (24%) and
almost all of its cherries (90%).
Red meat and dairy are other
important products. Game
hunting is a significant sector,
and several large Free State farms
have been converted from stock
to game farms.
Crop production represents
about two-thirds of the
province’s gross agricultural
income. The main crops are
maize and wheat. Sunflowers,
sunflower seeds, sorghum
and soy beans are other major
crops. The Mangaung Fresh
Produce Market plays a vital
role in the sector, catering as
it does to householders, bulk
buyers, informal traders, agents
and farmers. ■
29
FREE STATE BUSINESS 2023

OVERVIEW
Mining
Miners are looking to renewable energy for power.
Harmony Gold announced in June 2022 that it had secured
a loan and signed an agreement to buy 30MW
of solar photovoltaic energy. The company’s Free State
assets will benefit from this, the first phase of Harmony’s
renewable energy strategy which will see a further 137MW
rolled out at other mines.
Harmony has established an independent power producer for
the construction of the three PV plants that will comprise the Free
State plant. These plants will mitigate 65 000 tons of carbon dioxide
emissions in their first 12 months of operation; 1.3-terawatt hours of
clean energy is expected to be delivered over their 20-year lifespan.
The solar plant projects were jointly developed by Harmony,
Energy Group (a specialist advisor and investor in industrial clean
energy projects in Southern Africa), and BBEnergy (a South African
engineering company that specialises in solving engineering
problems in the energy and water fields).
The project was funded by a project-finance debt solution from
Rand Merchant Bank, a division of First Rand Bank Limited, and with
the support of African Clean Energy Developments (ACED), equityfunded
by African Infrastructure Investment Managers and Mahlako
Energy Fund.
The plants rank among the biggest solar PV plants for private
offtake in South Africa to date and the first energy is expected
to flow from the plants in March 2023. Many other South African
miners are expected to follow Harmony’s lead.
Gold mining
Historically, the north-west part of the province was famous for
gold, with Harmony Gold’s Bambanani mine forming an essential
part of Welkom’s economy for many years. Bambanani is in the
final stages of its life-of-mine but there are other areas where
Harmony Gold is still extracting gold and investigating possible
expansion programmes.
The company is conducting an exploration programme to
confirm the geological model of Target North and further define
a potential block of well-mineralised Ventersdorp Contact Reef.
Various challenges, not least of which was the Covid-19 pandemic,
caused the reduced volume but this was outweighed by an
increase in the recovered grade. AngloGold Ashanti sold most of
its assets to Harmony Gold, two of which, Great Noligwa and
SECTOR INSIGHT
Gold miners went on strike for
three months.
Kopanang, are in the Free
State. The complex includes
one uranium plant, four gold
plants and one sulphuric acid
plant. These assets increased
Harmony’s underground
resource base in South Africa
by nearly 40%. The mines
include Tshipong and Phakisa
(near Odendaalsrus), Virginia,
Target (near Allanridge),
Masimong (Riebeeckstad),
Joel (near Theunissen) and
Bambanani at Welkom.
Some of the unions active at
the gold mining operations of
mining and metals processing
group Sibanye-Stillwater were
unable to reach an agreement
on wage talks early in 2022,
which led to a strike followed
by a lock-out. The National
Union of Mineworkers (NUM)
and the Association of
Mineworkers and Construction
Union (AMCU) had refused
the wage offer but Solidarity
accepted. Despite this, all
workers (including those
affiliated to the union UASA)
were locked out. The threemonth
stalemate ended in June
with a three-year agreement
brokered by the Commission
for Conciliation, Mediation and
Arbitration. Sibanye-Stillwater
is investigating a possible new
FREE STATE BUSINESS 2023
30

geochemistry. Work completed to date has confirmed the Buvu target area as having potential for an unrecognised centre of epithermal
hydrothermal alteration and mineralisation.
OVERVIEW
Harmony is exploring at Target North exploration North. site. Credit: Harmony
project next to its existing Beatrix mine. Gold prices rose appreciably
during the Covid-19 pandemic. The company’s Beatrix mine, with a
life-of-mine projected to 2025, produced 196 698 ounces of gold in
2019. Beatrix also holds 26.97-million pounds of uranium resources.
Gold mines in the Free State also supply a substantial portion of
the total silver produced in the country, and large concentrations
of uranium occurring in the gold-bearing conglomerates of the
goldfields are extracted as a by-product.
8 Harmony Gold Mining Company Limited
Other minerals
The Lejweleputswa District Municipality in the north-west of
the province is the site of considerable activity in the mining of
industrial minerals, with six companies currently active. Matsopa
Minerals, for example, runs a bentonite mine at Koppies between
Heilbron and Vredefort. Sandstone and sand-mining operations are
underway in Qwaqwa, Fouriesburg, Senekal, Sasolburg and Zastron.
Limestone and calcrete occur in the western Free State where
salt is also panned. Production is concentrated around the Florisbad
salt pan, north-west of Bloemfontein.
The mining sector makes up 11% of provincial GDP. A minerals
ONLINE RESOURCES
Minerals Council South Africa: www.mineralscouncil.org.za
National Department of Mineral Resources and Energy:
www.dmre.gov.za
South African Mining Development Association: www.samda.co.za
beneficiation strategy has been
developed because this is a key
area for potential growth. Petra
Diamonds’ Koffiefontein mine
is on the western edge of the
province, about 80km from
Kimberley. The mine is regarded
as a low-grade deposit, but the
diamonds produced are of high
value. White stones of excellent
quality are produced, and fancy
pink diamonds are sometimes
found. The Voorspoed mine of
De Beers Consolidated Mines
closed in 2018.
De Beers, the South African
government and the South
African diamond-cutting
industry have launched a
project to encourage diamond
beneficiators. Among the first
companies involved are Thoko’s
Diamonds, African Diamonds,
Nungu Diamonds and Kwame
Diamonds. Coal is mostly found
in the northern part of the Free
State. The Sigma-Mookraal
mine is run by Sasol Mining
and has the capacity to supply
Sasol Infrachem in Sasolburg
with two-million tons of coal
per year. Seriti Resources
has purchased the New Vaal
Colliery from Anglo American.
Together with two other
mines in Mpumalanga
Province, Seriti paid R2.3-billion.
New Vaal is in the middle of a
triangle of three towns that play
an important part in industrial
production: Vereeniging,
Sasolburg and Vanderbijlpark.
The mine employs more than
900 people and supplies about
15-million metric tons of coal
to Eskom’s Lethabo power
station annually. ■
31
FREE STATE BUSINESS 2023

OVERVIEW
Oil and gas
Gas resources at Virginia are even bigger than first thought.
Sproule, a resources accreditation agency, has given an
updated report on the helium and methane reserves in
the Virginia gas field, owned by Renergen subsidiary Tetra4.
The results were even more positive than previous
estimates, with helium reserves up by 620% and methane reserves
by 427%. The field covers 187 000ha in the region of Virginia,
Theunissen and Welkom. 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.
A major milestone was achieved in July 2022 when ‘natural
gas to plant’ was achieved. This test allows for the system to be
comprehensively tested, with the inlet line from the gas-gathering
system opened to the process plant and then on to the natural gas
filtration and pre-compression system.
The Covid-19 crisis has spurred Renergen to create something
called Cyro-Vacc, a system of transporting and storing vaccines
using helium that allows for up to 35 days where there might be no
electricity available for cooling.
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. The result of that is that Renergen,
the owner of the Tetra4 company that holds the first and only
onshore petroleum production right issued by the Department
of Mineral Resources and Energy (DMRE), has had to import much
of its equipment and many of the skilled personnel it needs to
commercialise the gas field.
Methane has a strong potential for use in the transport sector.
The logistics sector was first sector to respond to the potential of
Virginia find. 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 also signed an agreement with TotalEnergies for
distribution and sales. Renergen intends equipping filling stations
with LNG at strategic locations across South Africa to cater for the
logistics industry. The first two such stations will be Total stations in
SECTOR INSIGHT
The life of the Natref refinery
could be extended.
Johannesburg and Durban that
will be rebranded in green. One
station is planned for Harrismith
on the busy N3 highway which
links these two cities.
The potential of another
was revealed in 2021 when
Renergen agreed to sell LNG
to glass manufacturer Consol.
Bespoke depots will be
developed to cater to industrial
clients such as Consol.
Tetra4 has a R218-million
loan from the Industrial
Development Corporation
to build a 107km pipeline
network from Virginia and the
Overseas Private Investment
Corporation (OPIC), an agency
of the US government, will
lend Renergen $40-million
(more than R600-million) over
12 years to build a gas plant in
the Free State. The area around
Virginia has proven reserves of
25-billion cubic feet.
Natref refinery
The Natref refinery in Sasolburg
may have its life extended
by the introduction of new
technology. With every
operator in fossil fuels under
FREE STATE BUSINESS 2023
32

OVERVIEW
The Virginia Gas Project has achieved a significant testing
milestone. Credit: Renergen
pressure to come up with cleaner methods, the joint operators of
the refinery, Sasol and TotalEnergies, have announced that a new
way of producing low-sulphur diesel is on the cards.
As of July 2022, the Natref refinery was the only functioning
South African refinery, so its strategic importance can not be
underestimated. It is a technologically-advanced facility, which
refines heavy crude oil into petrol, diesel, commercial propane,
jet fuel and bitumen. The refinery has also started on 10-year
emissions-reduction programme.
The chemical complex at Sasolburg is the economic driver
of the oil and gas sector for the province. One of the Sasol
companies at Sasolburg, Sasol New Energy, is moving the group
away from reliance on fossil fuels. In 2020 Sasol called for bidders
construct an embedded 10MW solar PV facility at Sasolburg. The
ONLINE RESOURCES
Petroleum Agency South Africa: www.petroleumagencysa.com
South African Oil and Gas Alliance: www.saoga.org.za
South African Petroleum Industry Association: www.sapia.co.za
company’s larger goal across
all its sites is eventually to
procure 600MW of renewable
energy and achieve a 10%
greenhouse gas (GHG)
emission reduction by 2030.
Sasolburg Operations
is one of the five operating
hubs that forms part of the
Southern African Operations
and is a 100%-owned facility.
Sasolburg Operations includes
all operations on the Sasol One
and the Sasol Midland sites.
The integrated manufacturing
facility is responsible for
the production of base and
performance chemicals. It
also produces electricity and
other utilities and provides sitesupport
services to enable the
manufacturing processes taking
place on site.
The African Oil Blending
Corporation (AOBC) has
announced that it will spend
R130-million on repurposing
and upgrading its Harrismith
lubricant blending facility.
The new focus will be on
producing water-based and
monoethylene glycol-based
coolants for the industrial and
automotive sectors.
The regulator and promoter
of oil and gas exploration
in South Africa, Petroleum
Agency South Africa, has
awarded coalbed methanegas
exploration rights in
KwaZulu-Natal and natural gas
exploration permits in the Free
State. Early surveys suggest that
the Free State has 23-billion
cubic feet of gas underground.
Tests have begun in the Karoo
in search of shale gas. ■
33 FREE STATE BUSINESS 2023

OVERVIEW
Manufacturing
Industrial parks are promoting manufacturing.
Manufacturing makes up 9% of Free State gross domestic
product, and this comprises 4% of South Africa’s total. The
Free State Regional Industrialisation Policy is under review
to ensure integration of infrastructure, bulk service provision,
industrial sites and export and tax incentives to attract investment.
A specific programme to promote manufacturing aims to do
this by revitalising industrial parks. One of the first such parks in the
initiative, which is led by the National Department of Trade, Industry
and Competition (dtic), is the Botshabelo Industrial Park (pictured).
Located east of Bloemfontein, in 2021 fully 108 of the park’s
144 factory premises were occupied and second-phase funding
of R50-million has been approved.
The other parks receiving support are at Phuthaditjhaba and
Thaba Nchu where it is hoped that improved infrastructure will
attract investment, which in turn will stimulate economic growth
and create jobs.
Further north, the strategically located Maluti-A-Phofung
Special Economic Zone (MAP SEZ) has attracted R1-billion from
investors. Kevali Chemicals became the first beneficiary of the
dtic’s Black Industrialists Scheme (BIS). A grant of R35-million
allowed the company to acquire machinery and equipment to
start a new line of manufacturing in the MAP SEZ. By early 2022,
164 jobs had been created within the SEZ.
Business hubs in Ficksburg and Koffiefontein are designed to
support SMMEs. The Contractor Development Programme has
signed contracts with 71 small businesses to do road maintenance
in the province.
The Free State Provincial Government’s Business Development
Support Programme includes measures to ensure that SMMEs
benefit from government procurement spend and support with
filling in documents related to tax compliance and bid documents.
Sasolburg in the northern Free State is a key asset in South
Africa’s chemicals industry. Sasol has the biggest presence but
entities such as Omnia and AECI are other major companies
which give the Free State the lead in this sector which relies on
advanced technology.
The existing manufacturing sector covers chemicals, agroprocessing,
textiles, carpets, engineering, packaging, furniture
ONLINE RESOURCES
Chemical and Allied Industries’ Association: www.caia.co.za
Free State Development Corporation: www.fdc.co.za
South African Textile Federation: www.texfed.co.za
SECTOR INSIGHT
Jobs are being created at the
Maluti-A-Phofung Special
Economic Zone.
and jewellery. About 20% of
the Free State’s manufacturing
sites are devoted to food and
beverages, with soft drink
giant Coca-Cola Fortune
operating a large bottling
plant in Mangaung. Landzicht
Wine Cellar distributes
2.4-million litres of wine every
year from Jacobsdal.
Harrismith is home
to Nouwens Carpets and
Boxmore Plastics. Boxmore
Packaging’s new PET beer
bottles are the first PET bottles
specifically designed for beer
on the SA market.
Empire Gloves makes
industrial gloves. Kroonstadbased
Octa Engineering makes
specialised rail carriages for the
mining sector. In Bloemfontein,
Transnet Engineering
manufactures new wagons for
the Transnet group, including
iron ore and cement wagons
and fuel tankers. ■
FREE STATE BUSINESS 2023 34

ICT
Young people can attend digital skills programmes.
OVERVIEW
SECTOR INSIGHT
Vodacom has built 40
base stations.
Vodacom Foundation
A
Digital Hub in the Botshabelo Industrial Park has been
launched as a way of connecting citizens and giving
people a chance to develop digital skills.
The National Electronic Media Institute of South Africa
will be running a Digital Skills Programming initiative which will
benefit 4 000 unemployed young people.
Coding and Robotics as a subject has been introduced in 111
primary schools and 50 secondary schools in the province as part
of the provincial government’s digital access programme.
Speaking in parliament in 2022, the Minister of Communications
and Digital Technologies, Khumbudzo Ntshavheni, said that every
South African will be given access to the Internet. Likening the
provision of Internet access to utilities such as water and electricity, the
Minister noted that advances in technology and the upcoming release
of data spectrum will make it possible for national government to
take this step. Vodacom has spent R550-million over the three years to
2022 in the Northern Cape and the Free State. Part of the infrastructure
investment programme was to connect remote villages and to
increase network coverage. New 3G and 4G enabled base-station sites
were installed in 25 urban centres and in 15 rural areas.
According to figures compiled by Stats SA in 2019, only 5.4% of
households in the Free State had access to the Internet at home. Zero-rated
sites are available through ConnectU, which allows people to browse job
portals or look up essential information on health and education. Vodacom
has also launched low-priced voice and data deals for pensioners.
ONLINE RESOURCES
Independent Communications Authority: www.icasa.org.za
Technology Innovation Agency: www.tia.org.za
Universal Service and Access Agency of South Africa:
www.usaasa.org.za
A zero-rated e-School platform
enables learning from home. To
support this, Vodacom Central
Region provided 30 routers and
300 tablets to three Early Childhood
Development centres and to
connected learners in QwaQwa.
Forty schools received 200 laptops
and computer centres. As of 2021,
National Treasury has appointed four
companies as service providers to
government, through its new mobile
communication services contract,
RT15-2021. The contract covers all
entities of the state and is expected
to allow for significant cost saving
through better controls.
Vodacom has created the
Citizen Engagement Platform as a
means of improving and managing
service delivery. To enable better
communication between citizens
and the South African Police
Service (SAPS), Vodacom launched
the MySAPS app.
MTN Business enabled
thousands of pupils to keep
studying remotely during the
Covid-19 pandemic and it has
also helped state officials collect
revenue more efficiently. MTN
Enterprise Solutions allows
state bodies to customise their
shared voice, data, Closed User
Group voice usage and SMS
bundles at good rates. This is also
scalable as usage increases or the
department in question rolls it out
at a larger scale. ■
35
FREE STATE BUSINESS 2023

OVERVIEW
Tourism
Visitors are encouraged to “Travel Differently”.
SECTOR INSIGHT
Rural tourism is
showing potential.
The Premier Splendid Inn, Bloemfontein.
New markets are being targeted through programmes such
as “Travelling Differently”. The aim is to appeal to people
who have previously been excluded from experiences such
as game drives, bird watching, fishing, hiking and camping.
The “Free State CampOut Experience” was launched in November
2021 at Maria Moroka Nature reserve, the first of a series of events
hosted in various provincial resorts to further encourage eco-tourism
among city dwellers.
Free State tourism authorities are reaching out to neighbouring
provinces and the Kingdom of Lesotho to coordinate a regional
strategy for tourist products. Other participants include the North
West Province, Fezile Dabi District Municipality and the National
Department of Environmental Affairs, Forestry and Fisheries.
Another thrust is rural tourism, which is targeted as a subsector
with great growth potential. Products such as the Bothobapelo
Country Lodge and the Dinkoeng Tented Camp and Adventure
based in Monontsha in QwaQwa are examples of what can be
achieved with investment and commitment.
Heritage is another sector with possiblities. A Heroes’ Park is to
be constructed at Thaba Nchu and Tumahole with statues of Oliver
Tambo and Fidel Castro. A museum and statue at Brandfort to
commemorate Winnie Madikizela-Mandela is planned.
Other sites with potential that are the subject of upgrades include
the Thaba Nchu Airfield and the Phakisa Raceway in Welkom.
ONLINE RESOURCES
Bloemfontein Tourism: www.bloemfonteintourism.co.za
Free State Department of Economic, Small Business Development,
Tourism and Environmental Affairs: www.destea.gov.za
Free State Gambling, Liquor and Tourism Authority: www.gla.fs.gov.za
The global pandemic closed
down the tourism sector and it
will take some time to recover. The
provincial government provided
some relief by earmarking tourism
venues as sites for quarantine.
Bloemfontein’s newest hotel is the
88-room Premier Splendid Inn. Built
on the site of the old Stanville Inn, the
property has been converted into a
R95-million hotel with conference
facilities over five floors. Protea Hotels
has four properties in the Free State,
two in Bloemfontein, one in Harrismith
and the Protea Hotel Clarens. The
Tsogo Group’s properties include the
four-star Southern Sun Bloemfontein
and the SUN1 Bloemfontein. Tsogo
Sun Gaming runs the Goldfields
Casino in Welkom. The City Lodge
Bloemfontein has 151 rooms, and
there is a Road Lodge at the airport.
The Rantsoareng Group operates
exclusively in the Free State and has
three properties, the biggest of which
is the President Hotel in Bloemfontein.
Sun International runs the
Lesotho Sun and the Maseru
Sun in neighbouring Lesotho. In
Bloemfontein, the Windmill Casino
and Entertainment Centre offers
slot machines and gaming tables,
plus conference facilities. The fourstar
Willow Lodge has 80 rooms.
The Naledi Sun Hotel and Casino is
about 65km from Bloemfontein. The
Golden Gate Highlands National
Park in the Maluti Mountains is one
of South Africa’s great parks. ■
FREE STATE BUSINESS 2023 36

Development finance
and SMME support
OVERVIEW
Skilled mentorship pays off for SMMEs.
Seed funding and investment are critical in helping small,
medium and micro-enterprises get started, but sometimes
good advice over an extended period can be just as valuable.
Tehilaa Golden CC, a clothing manufacturer, more than
doubled its annual turnover to R11-million with the support of
the SAB Foundation’s 18-month Tholoana Enterprise Programme.
Tholoana offers skilled mentorship, business development tools
and training, access to peer networks and finance. Founder Cherilyn
Lucena (pictured) also expanded her workforce from 46 to 135.
The programme invests in entrepreneurs, particularly women,
youth, people in rural areas and persons with disabilities. The SAB
Foundation reports that as many as 80% of small businesses fail
within their first five years in South Africa.
The SAB Foundation has provided over R8-million in grant
funding and business support to 70 entrepreneurs in the Free State.
Collective turnover has grown exponentially since the programme
began in 2018.
The Yes4Youth programme is a business-led collaboration that
aims to get young people into work. The Department of Economic,
Small Business Development, Tourism and Environmental Affairs
(DESTEA) is collaborating with Standard Bank on the Yes4Youth
initiative, in which 60 unemployed youth were offered their first job
opportunity in 2021. The idea is to introduce young people to the
world of work and to foster a spirit of entrepreneurship.
DESTEA assists an average of 800 enterprises annually. The
Industrialisation Support Incentive Programme paid out R10-million in
2021/22 to 30 enterprises (13 women-owned, six youth-owned). Support
ranged from rental subsidies and the provision of equipment to set-up
costs for emerging and established manufacturers. A 172ha business park
in Sasolburg designed to incubate black industrialists is a joint venture
between the National Department of Trade, Industry and Competition
(the dtic) and Sasol. There are five buildings on the site, training is provided,
and companies have access to Sasol’s diverse supply chains.
The dtic’s Enterprise Investment Programme (EIP) is successfully
supporting Extractive Technologies, a company in the electro-technical
ONLINE RESOURCES
Free State Development Corporation: www.fdc.co.za
National Department of Small Business Development:
www.dsbd.gov.za
Small Enterprise Development Agency: www.seda.org.za
SECTOR INSIGHT
Yes4Youth is having a
positive effect.
sector. This is a focus area of national
policy and the targeted company
used its grant to create additional
employment for youth in the
Sasolburg area.
The National Department
of Small Business Development
(DSBD) has several programmes to
assist SMMEs and co-operatives.
These include:
• The Black Business Supplier
Development Programme, a
cost-sharing grant to promote
competitiveness
• The Co-operative Incentive
Scheme, a 100% grant.
The Small Enterprise Development
Agency (Seda) is a subsidiary of the
DSDB and supports entrepreneurs.
Seda focusses on training and
administrative support.
The major banks all have
SMME offerings. Standard Bank
runs a Community Investment
Fund and Nedbank offers an
enterprise development product
for businesses with turnovers up
to R35-million. ■
37
FREE STATE BUSINESS 2023

OVERVIEW
Education and training
A CUT team attended the 2022 Enactus World Cup.
SECTOR INSIGHT
The University of the Free
State has a new chancellor.
data screening. The first phase
of a major upgrade of the Hotel
School of the CUT is complete.
New chancellor
Prof Francis Petersen, Rector and Vice-Chancellor of the University
of the Free State, Prof Bonang Francis Mohale, Chancellor of the UFS
and Mr David Noko, Chairperson of the UFS Council.
There were many causes for celebration at tertiary institutions
in the Free State in 2021 and 2022.
In July 2022 a team from the Central University of
Technology (CUT) was announced as the winners of
the 2022 Enactus South Africa National Competition at the
Sandton Convention Centre for their crop farming project,
Village Fa. They beat 12 other student-led Enactus projects in
South Africa to secure the title.
As one of four finalists selected for the Ford College Community
Challenge (C3), run in partnership with non-profit organisation
Enactus Global, the Ford Motor Company Fund and Ford South Africa,
the Enactus CUT team used its $5 000 grant to establish crop farming
and introduce vermiculture to Gladstone Village, located in Thaba
Nchu, as a means of improving the economic development of the
area. Vermiculture uses worms in composting. The team focused on
creative approaches to dealing with protection of the environment,
training underprivileged communities, job creation and income
generation. Ford sponsored the team to represent South Africa, along
with 32 other countries, that participated in the 2022 Enactus World
Cup in Puerto Rico.
The CUT has four faculties: Engineering, Built Environment and
Information and Technology, Health and Environmental Sciences,
and Humanities and Management Sciences. Researchers at units
such as the Centre for Community, Environmental and Industrial
Development tackle important regional issues. The CUT has started
training programmes in artificial intelligence, 3D cloud computing and
The University of the Free
State has a new chancellor. In
2020 Professor Bonang Francis
Mohale became the university’s
eighth chancellor but the
official inauguration took place
in 2021. Professor Mohale is
the President of Business Unity
South Africa (BUSA), Professor
of Practice at the Johannesburg
Business School’s College of
Business and Economics and
Chairman of both the Bidvest
Group Limited and SBV Services.
In his inaugural address,
Professor Mohale stressed the
importance of empowering
universities to become “inclusive
centres of excellence”. He noted
how this could be done:
• to be awake to persistent
inequalities and how these
continue to shape a sense of
belonging, ownership, identity,
access, language, symbols,
attitudes and expectations
• to nurture young people to
come out of these institutions
not only skills, but with a
sense of social justice, critical
thinking and curiosity
FREE STATE BUSINESS 2023
38

• to conceptualise ethical frameworks that will guide societal
engagement with universities
• to promote public ownership of higher education institutions,
where the public recognise their role as both beneficiaries and
stakeholders
• to develop a social justice approach to higher education, where
universities propel democratic engagement and advocate for
academic freedom.
As part of the celebration, Dr Sipho Pityana, a former BUSA
president, was awarded an honorary doctorate by UFS.
The University of the Free State has 158 researchers rated by
the National Research Foundation (NRF), two A-rated scientists
and five tier-one SARChi research chairs. The university has 18
international research partnerships and produces an average of
240 postgraduate research degrees every year.
Training
AgriFree State and the provincial government cooperated in 2021/22 to
provide work experience opportunities to 117 unemployed graduates.
Within the provincial government, 50 officials are working towards
a National Diploma in Public Administration. Another 149 unemployed
young people in three locations completed the Public Administration
Learnership Programme. Several Sector Education and Training Authorities
(SETAs) are involved in offering training in the Free State. merSETA
(Manufacturing, Engineering and Related) provided R42.1-million to
enable the provincial government to offer skills training to 650 young
people. A total of 2 572 unemployed young people have benefited from
skills development programmes supported by various SETAs.
The NQF 5 Building Inspectorate Programme offered by the
LGSETA (Local Government) and the CUT will benefit 1 000 TVET
college graduates. Furthermore, the CUT and National Home
Builders Registration Council will train 695 people at the NQF 7
Level to increase the number of available trainers.
These training programmes are supported by placements
with government departments and with private businesses:
unemployed graduates are supported by the province on
stints at companies and the programmes can include graduate
internships, learnerships, short-skills programmes and workintegrated
learning methods. The province’s road-building unit
ONLINE RESOURCES
Central University of Technology: www.cut.ac.za
Flavius Mareka TVET College: www.flaviusmareka.net
Free State Department of Education: www.education.fs.gov.za
University of the Free State: www.ufs.ac.za
The Central University of Technology
team was crowned Enactus National
Champions for 2022 with a community
farming project in Thaba Nchu.
has linked up with TVET college
graduates to provide specific work
training in that field.
Two-hundred tertiary bursaries
will be provided by the provincial
government in the 2022/23
financial year. Thus far, the
provincial bursary programme has
benefitted 749 students at South
African institutions and a further
353 who studied abroad, at cost of
R248-million.
A national policy of promoting
training in critical trades has been
adopted. Two of the three campuses
of Flavius Mareka TVET College are
designated Centres of Specialisation,
for electrical work at Sasolburg and
plumbing at Kroonstad. The Mphohadi
campus of the college is also in Kroonstad.
The Free State has about 14 000
students at four Technical and Vocational
Education and Training (TVET) colleges,
taught by 400 lecturers. All of the
colleges have multiple sites. Maluti TVET
College in Phuthaditjhaba, for example,
offers classes at eight sites. Motheo
TVET College operates in Bloemfontein
and Thaba Nchu, while Goldfields TVET
College is headquartered in Welkom with
some classes offered in Thabong and a
satellite campus at Virginia (Meloding). ■
39 FREE STATE BUSINESS 2023

Promoting and developing
small business
The National African Federated Chamber of Commerce
and Industry is active in the Free State.
NAFCOC’s main objective is to promote,
unite and encourage the development
of small business in South Africa in general
and black entrepreneurs in particular,
thereby drawing the majority from the peripheries
of the consumption-based economy to the frontlines
of production-based economic activity and
decision making processes.
NAFCOC Free State responded in a special way
to address the distress faced by members during
lockdown. In 2020, the chapter:
• Lobbied for localised provincial funding during
the lockdown.
• Campaigned for the regulation of township businesses
(trading permits and adherence to bylaws).
• Assisted small and informal businesses in applying for
Covid-relief funding.
• Worked with government on a programme to assist
people living with disability to gain access to markets
and procurement opportunities.
• Encouraged youth to be more involved in agriculture
and try to find solutions to the lack of access to
funding.
• Worked with Standard Bank to assist small enterprises
to open business accounts.
Vision To be the leading voice of business in
South Africa.
Mission To develop and promote economic growth
among existing and new businesses.
Values Empowerment, dignity, integrity, hard work
and commitment. ■
NAFCOC members applying for permits.
Contact details
Chairperson: Tshepo Matsaba
Tel: 083 485 7883
Email: matsabat@nafcocfs.org.za
National website: www.nafcoc.org.za
BUSINESS CHAMBERS IN THE FREE STATE
Free State Black Business Chamber
Contact: Mr Lucky Motsamai Cell: 066 204 5295 Email: info@fsbbc.co.za
Free State Youth Chamber of Business and Commerce
Contact: Mr Sam Motlogeloa Cell: 081 442 8928 Email: yccifs@gmail.com
Mangaung Chamber of Commerce and Industry
Contact: The President
Tel: +27 51 522 1710 Email: President@bcci.co.za
Phenomenal Women
Contact: Ms Thato Mokhothu Cell: 071 383 4183
Vredefort Tourism Association
Contact: Ms Renee de Jong Cell: 071 448 4332 Email: vredefortinfo@gmail.com

LISTING
Free State Provincial Government
A guide to Free State’s provincial government departments. Visit: www.freestateonline.fs.gov.za
Office of the Premier
Mr Mxolisi Dukwana
4th Floor, OR Tambo Building, Cnr St Andrews and
Markgraaff Streets, Bloemfontein 9300
Tel: +27 51 405 5496 | Fax: +27 51 405 4803
Website: www.freestateonline.fs.gov.za
Department of Agriculture
and Rural Development
MEC: Mr Teboho Mokoena
Main Building, Gielie Joubert Street, Glen,
Bloemfontein 9360
Tel: +27 51 861 8509 | Fax: +27 51 861 8452
Website: www.dard.fs.gov.za
Department of Cooperative Governance
and Traditional Affairs
MEC: Mr Ketso Makume
7th Floor, OR Tambo House, Cnr St Andrews and
Markgraaff Streets, Bloemfontein 9301
Tel: +27 51 405 5719
Website: www.cogta.fs.gov.za
Dept of Economic, Small Business Development,
Tourism and Environmental Affairs
MEC: Mr Thabo Meeko
Bojanala Building, 113 St Andrews Street,
Bloemfontein 9301
Tel: +27 51 404 9600 | Fax: +27 51 400 4732
Website: www.destea.gov.za
Department of Education
MEC: Mr Makalo Mohale
Fidel Castro Building, 55 Miriam Makeba Street,
Bloemfontein 9300
Tel: +27 51 404 8430 | Fax: +27 51 404 8269
Website: www.education.fs.gov.za
Department of Health
MEC: Ms Nokwanje Leeto
Cnr Harvey and Charlotte Maxeke Streets,
Bloemfontein 9300
Tel: +27 51 408 1108 | Fax: +27 51 408 1950
Website: www.health.fs.gov.za
Department of Human Settlements
MEC: Mr Ketso Makume
7th Floor, Lebohang Building, Cnr Markgraaff and
St Andrews Streets, Bloemfontein 9300
Tel: +27 51 405 3379 | Fax: +27 51 403 3699
Website: www.humansettlements.fs.gov.za
Department of Police, Roads and Transport
MEC: Ms Mcqueen Letsoha-Mathae
4th Floor, Perm Building, 45 Charlotte Maxeke Street,
Bloemfontein 9301
Tel: +27 51 409 8849 | Fax: +27 51 409 8864
Website: www.policeroadstransport.fs.gov.za
Department of Public Works
and Infrastructure
MEC: Ms Kathleen Mahlatsi
Office 310, OR Tambo House, Cnr Markgraaff and
St Andrews Streets, Bloemfontein 9301
Tel: +27 51 405 3909 | Fax: +27 51 405 4490
Website: www.publicworks.fs.gov.za
Department of Social Development
MEC: Ms Motshedise Koloi
Civilia Building, 14 Miriam Makeba Street,
Bloemfontein 9300
Tel: +27 51 409 0555 | Fax: +27 51 409 0618
Website: www.socdev.fs.gov.za
Department of Sports, Arts,
Culture and Recreation
MEC: Ms Limakatso Mahase
Civilia Building, 14 Miriam Makeba Street,
Bloemfontein 9300
Tel: +27 51 407 3520 | Fax: +27 51 407 3541
Website: www.fssacr.gov.za
Provincial Treasury
MEC: Ms Gadija Brown
Fidel Castro Building,
55 Miriam Makeba Street,
Bloemfontein 9300
Tel: +27 51 405 4229 | Fax: +27 51 405 4152
Website: www.treasury.fs.gov.za