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John Taolo Gaetsewe District Municipality Investment Prospectus

John Taolo Gaetsewe District Municipality is unique in South Africa due to its abundant natural, cultural and economic opportunities. This distinction is in part attributed to the Province of Northern Cape’s rise as a hub for economic, scientific and environmental endeavours and the increasing interest from investors in the Gamagara Development Mining Corridor that traverses the district.

John Taolo Gaetsewe District Municipality is unique in South Africa due to its abundant natural, cultural and economic opportunities. This distinction is in part attributed to the Province of Northern Cape’s rise as a hub for economic, scientific and environmental endeavours and the increasing interest from investors in the Gamagara Development Mining Corridor that traverses the district.

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1<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY<br />

INVESTMENT PROSPECTUS<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY IS<br />

OPEN FOR BUSINESS


JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY<br />

INVESTMENT PROSPECTUS<br />

CONTENTS<br />

1 FOREWORD<br />

The Executive Mayor of the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong>,<br />

Pulane Queen Mogatle, welcomes investors<br />

2 THE NORTHERN CAPE AT A GLANCE<br />

3 THE NORTHERN CAPE IN NUMBERS<br />

4 INTRODUCTION<br />

<strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> is on the edge of the Kalahari<br />

5 DISTRICT STATISTICS<br />

Key statistics of the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong><br />

6 MAIN SECTORS AND INFRASTRUCTURE<br />

Mining dominates the regional economy<br />

7 BUSINESS AND INVESTMENT<br />

Valuable land, above and below the ground<br />

8 NATURAL RESOURCES AND COMPETITIVE ADVANTAGES<br />

The Kalahari Basin is immensely rich in manganese<br />

9 LOCAL MUNICIPALITIES<br />

Historical sites, natural wonders and meerkat research await visitors to the<br />

district’s towns and villages<br />

10 WELCOME TO THE KALAHARI REGION<br />

Vast, ancient landscapes, warm welcomes and surprises<br />

12 TOURISM: Go! Ghaap Route<br />

13 TOURISM: Forgotten Highway Route<br />

14 INVESTMENT OPPORTUNITIES IN THE DISTRICT<br />

16 KATHU INDUSTRIAL PARK<br />

18 DEVELOPMENT OF MINI-CONFERENCE CENTRES<br />

19 ENERGY INVESTMENT<br />

Community trusts are transformative<br />

20 ENTERPRISE DEVELOPMENT<br />

Growing local business underpins corporate strategies<br />

IBC NATIONAL INCENTIVE SCHEMES<br />

IMAGE CREDITS: Cover: Loapi Tented Camp, courtesy Tswalu Kalahari Reserve; Sishen iron-ore mine, NCTA;<br />

meerkats, Sharp Photography/WikiCommons. Back cover: Oryx, Maarten Elings/ Wiki Commons. Other: Boer goat,<br />

SA Boer Goat Association; CSI and ED projects, Kumba Iron Ore; manganese mine operations, South32; Kathu<br />

Village Mall, Resilient REIT; meerkat research, Mammal Research Institute, University of Pretoria; mining truck and<br />

engineer at board, Kumba Iron Ore; kudu, Sharp Photography/WikiCommons; Kuruman conference venues, ReA-<br />

Con; rooftop solar, Mdux Instrumentation; Sishen solar plant, Brand Engineering; tiger’s eye, Leo za1/WikiCommons;<br />

wildlife sightings, Tswalu Kalahari Reserve, Don Heyneke/Tswalu; Wonderwerk Cave, Wonderwerkcave.com; weaver<br />

nest, Sara & Joachim Huber /Wiki Commons; all other images, Northern Cape Tourism Agency (NCTA).<br />

Layout & Design: Salmah Brown<br />

Produced by Global Africa Network


1<br />

FOREWORD<br />

DON'T MISS THE OPPORTUNITY TO INVEST<br />

The Executive Mayor of the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong><br />

<strong>District</strong> <strong>Municipality</strong>, Pulane Queen Mogatle, welcomes<br />

investors with news that policy frameworks are in<br />

place to guide investment and development.<br />

Our collective plans are in place through which we aspire to position<br />

our district as a global mining and manufacturing player. We see our<br />

district as a Smart and Developed <strong>District</strong> with thriving mining and<br />

manufacturing sectors linking to export markets. This vision will<br />

empower and provide opportunities to local communities through<br />

a diversified economy that prioritises agriculture and tourism while<br />

ensuring continuous environmental sustainability.<br />

<strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> is unique in South Africa<br />

due to its abundant natural, cultural and economic opportunities.<br />

This distinction is in part attributed to the Province of Northern<br />

Cape’s rise as a hub for economic, scientific and environmental<br />

endeavours and the increasing interest from investors<br />

in the Gamagara Development Mining Corridor<br />

that traverses our district. The governance<br />

structures of the district have refined<br />

their plans with stakeholders.<br />

Some of these plans include<br />

the <strong>District</strong> One Plan, through<br />

which key catalytic initiatives<br />

were identified to grow and<br />

diversify the district economy,<br />

the Spatial Development<br />

Frameworks (SDFs) and<br />

Integrated Development<br />

Plans of both the district<br />

and local municipalities and<br />

the plans of national and<br />

provincial departments. Our<br />

policy frameworks and structures<br />

to guide investment and development<br />

are in place and have been reviewed.<br />

This includes the Land Use Systems initiative,<br />

in terms of which development applications are<br />

considered by the Municipal Planning Tribunals.<br />

We are also in the process of putting investment incentives in<br />

place through our various strategies. We are confident that the<br />

catalytic initiatives and host of projects that we collectively identified<br />

will stimulate and create further opportunities for development<br />

and investment. We have developed the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong><br />

<strong>District</strong> Spatial Development Framework (SDF), which reflects our<br />

commitment to addressing the challenges faced by our communities.<br />

This document can be understood as underpinning the investment<br />

opportunities outlined in this <strong>Investment</strong> <strong>Prospectus</strong>.<br />

The SDF encapsulates our core values, principles and strategies,<br />

guiding us towards long-term solutions. Moreover, it affirms our dedication<br />

to fostering productive partnerships with key stakeholders,<br />

particularly the private sector, as we navigate this transformative<br />

process. Our policies and plans are aligned with those of the other<br />

spheres of government, such as the National SDF, National Development<br />

Plan, Provincial SDF, Northern Cape Provincial Growth and Development<br />

Plan and <strong>District</strong> Development. Our plans and frameworks<br />

are therefore aligned and relevant.<br />

The Northern Cape Government aspires to transform<br />

the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> and the entire<br />

Northern Cape into a global model of<br />

sustainability, ensuring a life of dignity<br />

and pride for all our residents. This<br />

long-term vision hinges upon<br />

the unwavering dedication of<br />

all levels of government and<br />

the people, who are the true<br />

guardians of our future. We<br />

implore everyone to rally<br />

behind the implementation<br />

of the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong><br />

<strong>District</strong> <strong>Municipality</strong>’s SDF<br />

and to be catalysts for positive<br />

change in our beloved district, so<br />

that we can collectively reach our<br />

spatial vision.


2<br />

THE NORTHERN CAPE AT A GLANCE<br />

NORTHERN CAPE is unique as a trade and investment destination.<br />

Its vast geographical extent<br />

and natural resources, complemented<br />

by human capacity<br />

and sound infrastructure, offer<br />

its partners a wide array<br />

of attractive trade and investment<br />

opportunities meeting<br />

global standards.<br />

The geographic location of<br />

the Northern Cape provides<br />

easy access to SADC markets<br />

and export ports via sea<br />

and air. The entry points in<br />

terms of access to Namibia<br />

and Botswana, extending to<br />

Zambia, provide a unique<br />

competitive advantage.<br />

The mineral profile of the<br />

Northern Cape has contributed<br />

to the establishment<br />

of global trade centres such<br />

as London and New York<br />

through diamond resources<br />

and mining listings. In<br />

addition to being for many<br />

years the leading source of<br />

diamonds, the province is a<br />

key iron ore and manganese<br />

producer, which is complemented<br />

by lime, granite, semi-precious stones and other minerals.<br />

The mining sector continues to expand, and with it opportunities in<br />

mining supplies and mineral value addition.<br />

The South African government has prioritised the diversification of<br />

energy sources to supply the national grid, and the focus on renewable<br />

energy has stimulated the demand for solar, wind, hydro and<br />

biomass energy sources.<br />

No province is better equipped in these fields than the Northern<br />

Cape, which has become the preferred investment destination for<br />

renewable energy companies. Growth in the energy sector has stimulated<br />

the manufacturing and agricultural sectors, which in turn has<br />

stimulated the development of infrastructure and services. Key projects<br />

include the Boegoebaai deep-sea port, Kathu Industrial Park,<br />

Upington Industrial Park and Vioolsdrif Dam. These projects are<br />

complemented by a well-developed settlement, transport and communication<br />

network. Huge opportunities also exist in value addition<br />

to the Northern Cape’s agricultural and mineral resources. These<br />

developments, opportunities and the associated business travel will<br />

undoubtedly contribute significantly to the further growth in travel<br />

and tourism into and within the province. To respond effectively to<br />

this growth in tourism demand and remain globally competitive, the<br />

province needs to attract suitable and sustainable investment across<br />

the tourism and other sectors.<br />

Human capital is key to the sustainable development of any<br />

region and the Northern Cape boasts the newly established<br />

Sol Plaatje University and enjoys representation through<br />

technology stations of other universities including Unisa and<br />

the Vaal University of Technology.<br />

The province is also served by a well-established multi-campus<br />

Technical Education and Vocational Training College.<br />

Further investments in building the requisite skills and capacities<br />

to meet the demands of our province’s growth and development<br />

are critical.<br />

Provincial and local government organs in the Northern Cape<br />

underpin all the potential of the province, and are dedicated to<br />

ensuring a sound, safe and well-governed investment destination.


NORTHERN CAPE PROVINCE SOUTH AFRICA<br />

3


4<br />

INTRODUCTION<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY<br />

On the edge of the Kalahari<br />

Towns: Bankhara-Bodulong, Dibeng, Hotazel, Kathu, Kuruman,<br />

Mothibistad, Olifantshoek, Santoy, Van Zylsrus.<br />

The <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> is relatively small in<br />

size, but in many respects, it is very big indeed. The size of the<br />

district’s mining operations (iron ore and manganese) and volumes<br />

of material railed to the coast, the extent of its nature reserves,<br />

the distance between towns; all of these things contribute to the<br />

sense of great size. The tourist lucky enough to be outdoors on a<br />

starry night will be in no doubt about the vastness of the Kalahari’s<br />

open spaces. Kuruman is the headquarters of local government in<br />

this region and contributes 19.7% to the province’s economy. The<br />

local spring produces 20-million litres of water every day. Most<br />

agricultural activity is limited to grazing and Boer goats are a popular<br />

breed among farmers, although game hunting is growing. The<br />

Sishen iron-ore mine outside Kathu is a vast undertaking, providing<br />

employment for thousands of people. Samancor’s Mamatwan and<br />

Wessels manganese mines and plants are situated at Hotazel.<br />

INVESTMENT OPPORTUNITIES COVERED IN<br />

GREATER DETAIL IN THIS PROSPECTUS INCLUDE<br />

• Kathu Industrial Park<br />

• Mini-conference centres<br />

The mining industry is supporting the moves to build the Kathu<br />

Industrial Park as a viable hub for support services and for various<br />

kinds of manufacturing. Enormous potential exists in ancillary fields<br />

and Country Hotels has shown that the potential in the tourism sector<br />

goes beyond high-end safaris. Kuruman has a Country Hotel, an Inn<br />

and a Lodge, indicating that there is scope for both business and<br />

leisure travel operators in the district. Developing the conference<br />

centre market will bolster that trend.<br />

LOCATION AND GEOGRAPHY<br />

<strong>John</strong> Taleo <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> is the Northern Cape’s<br />

northernmost district. The eastern part of the district lies on the<br />

Ghaap Plateau, which stretches from the Kuruman Hills eastward to<br />

the Harts River and is about 1 130m above sea level. The northern<br />

part of the district encompasses the southern extent of the Kalahari<br />

and its north-western border is shared with Botswana. To the north<br />

and east is the North West Province of South Africa.<br />

The most southern settlement within the district, Olifantshoek, is<br />

situated within both the Savanna and Nama-Karoo biomes and is a<br />

semi-arid region which displays characteristics of both landscapes.<br />

The N14 links the district’s major towns and is the connection<br />

between Upington in the south-west and Vryburg (North West) to the<br />

north-east. The district has an established rail network from Sishen<br />

South and between Black Rock and Dibeng. Agriculture, mining and<br />

tourism are the main economic sectors.<br />

DISTRICT MUNICIPALITY INFORMATION<br />

The <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> is a<br />

Category C municipality.<br />

Municipal headquarters: Kuruman<br />

Postal address: PO Box 1480, Kuruman 8460<br />

Physical address: 4 Federale Mynbou Street, Kuruman<br />

Tel: +27 53 712 8700<br />

Website: www.taologaetsewe.gov.za


5<br />

STATISTICS<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY<br />

MUNICIPAL AREA MAIN TOWNS NUMBER OF WARDS AREA PERCENTAGE OF DISTRICT<br />

Ga-Segonyana<br />

Bankhara/Bodulong, Kuruman,<br />

Mothibistadt<br />

15 4 495km² 16.45%<br />

Gamagara Deben/Dibeng, Kathu, Olifantshoek 8 2 648km² 9.69%<br />

Joe Morolong Hotazel Blackrock (Santoy), Vanzylsrus 15 20 180km² 73.86%<br />

<strong>John</strong> <strong>Taolo</strong><br />

<strong>Gaetsewe</strong> <strong>District</strong><br />

Kathu, Kuruman, Vanzylsrus 28 27 323km² 100%<br />

SNAPSHOT OF JOHN GAETSEWE DISTRICT MUNICIPALITY<br />

The total population for <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> was estimated at 224 799 people dispersed across<br />

three municipalities in 2011, while in 2016 the population was estimated at 242 264 as per the table below:<br />

<strong>Municipality</strong> 2011 2016<br />

Gamagara 41 617 53 656<br />

Ga-Segonyana 93 651 104 408<br />

Joe Morolong 89 530 84 201<br />

<strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> 224 799 242 264<br />

The <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> is expected to grow at an annual growth rate of 1.99%, based on the present age-gender structure and the present fertility,<br />

mortality and migration rates. If growth rate continues, then the total anticipated population size in 2025 is expected to be 313 350.


6<br />

DISTRICT ECONOMY<br />

MAIN SECTORS AND INFRASTRUCTURE<br />

Mining dominates the regional economy.<br />

Fully 71% of district GDP is generated by the mining sector, the result<br />

of a huge iron-ore complex at Sishen and a multi-mine manganese<br />

cluster 75km north of Kuruman in the Black Rock area. This reflects<br />

the enormous value that mining exports generate rather than presenting<br />

proof of a lack of other economic activity in the <strong>John</strong> <strong>Taolo</strong><br />

<strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong>.<br />

MAIN ECONOMIC SECTORS<br />

Although mining dominates because of Kumba Iron Ore’s Sishen<br />

mine and Assmang’s Nchwaning and Gloria mines that produce manganese,<br />

the district is also home to established and successful farming<br />

and tourism operations. More than one variety of Boer goat is<br />

raised by farmers in the region and tourism accommodates hunters,<br />

tourists in search of luxury safaris and business travellers exploring<br />

opportunities in Kuruman and Kathu. Near Olifantshoek the phenomenon<br />

of “singing sands” can be experienced. In very dry conditions,<br />

grains of sand can be heard to hum as they rub together. San rock<br />

art paintings can also be viewed in the area.<br />

The establishment of the Sishen Solar Photovolatic Plant in the<br />

small town of Dibeng opened up a new sector in <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong>.<br />

There is scope for all of the sectors mentioned above to grow<br />

and the Kathu Industrial Park initiative promises to stimulate the<br />

growth of new sectors or industries that are currently quite small.<br />

Servicing and supplying the mining and solar power sectors are obvious<br />

examples of businesses that could thrive in the Kathu Industrial<br />

Park. The <strong>District</strong> is also home to several famous TV stars, although<br />

they are very shy. “Meerkat Manor” is a popular TV series that tracks<br />

the lives of Suricata suricatta who live in the Kuruman River Reserve<br />

near Vanzylsrus. The Kalahari Meerkat Project is the oldest and largest<br />

of the projects operating at the Kalahari Research Centre. Apart<br />

from providing entertainment for TV viewers, the project is invaluable<br />

as a source of information for a long-term research project.<br />

INFRASTRUCTURE<br />

Kuruman, the administrative capital of the district, is also at the<br />

centre of the road network that connects the various centres of<br />

the area. The N14 national highway connects in a north-easterly<br />

direction to Vryburg in the North West Province and beyond that, to<br />

Johannesburg. To the south-west on the N14 lies the large farming<br />

and trading centre, Upington. The R31 runs through Kuruman as<br />

well, linking the town to Hotazel and Vanzylrus to the north (and on<br />

to Namibia) and due south to Lime Acres and Douglas.<br />

The railway line that links Sishen to the export port at Saldanha is,<br />

at 861km, one of the longest heavy-haul lines in the world. Records<br />

have regularly been broken in terms of the longest and heaviest<br />

trains put together on this line, a vital link to the outside world for<br />

the miners on of the Northern Cape. Two of the five campuses of<br />

the Northern Cape Rural TVET College are in the district, at Kathu<br />

and Kuruman.


7<br />

BUSINESS AND INVESTMENT<br />

Valuable land, above and below the ground<br />

Outstanding companies are thriving in luxury tourism, heavy mining<br />

and goat farming.<br />

The harsh landscape of the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong><br />

has not stopped enterprising businesses from competing with<br />

the best in their sectors. Successful and sustainable business in the<br />

area include:<br />

TOURISM<br />

The area south-east of Vanzylsrus and south-west of Hotazel is a<br />

long way from anywhere, and that’s one of the reasons why the Tswalu<br />

Kalahari Reserve is so special as a destination for tourists wanting<br />

to experience open spaces and undisturbed wildlife. Containing as it<br />

does several types of landscape, from the Korannaberg mountains<br />

to the southern Kalahari’s typical arid savannah and ochre dunes,<br />

the largest privately protected area in South Africa covers 114 000<br />

hectares. With a maximum of 40 guests staying in three luxury safari<br />

camps, Tswalu is able to pursue its ambitious conservation goals<br />

of safeguarding habitats and restoring biodiversity. Not only is the<br />

reserve home to a large population of black rhino, but it also hosts<br />

other threatened species such as the pangolin and African wild dog.<br />

A remarkable 83 species of butterflies have been spotted on the<br />

reserve, the latest sighting being the Pale Ciliate Blue.<br />

MINING<br />

Iron-ore mining operations started at Sishen in 1953 and expanded<br />

rapidly after the Sishen-Saldanha rail link was completed, enabling<br />

vast quantities of iron ore to be exported. Kumba Iron Ore, an Anglo<br />

American company, holds the majority share in and manages Sishen<br />

Iron Ore Company Proprietary Limited (SIOC). The other shareholders<br />

are Exxaro Resources and the SIOC Community Development<br />

Trust. An onsite beneficiation plant crushes, screens and beneficiates<br />

through dense media separation and jig technology The 14km-long<br />

open-cast mine feeds the largest jig plant of its kind in the world. In<br />

2022, the mine produced 22-million tons. Together with its other<br />

mines, Kumba Iron Ore is the largest iron-ore producer in Africa. The<br />

mine is one of the province’s biggest employers and the company<br />

spent R5.4-billion with host-community suppliers in 2022.<br />

AGRICULTURE<br />

Having started life as a co-operative in 1942, KLK is now a multifaceted<br />

agricultural company that trades in agricultural goods,<br />

building materials, fuels, meat, hides and skins, as well as the<br />

packaging and export of raisins. Dibeng, Hotazel, Olifantshoek and<br />

Kuruman have KLK retail outlets. Kuruman also hosts a Build It<br />

franchise while Kathu has a Build It and a KLK Pet World. KLK owns<br />

a feedlot and abattoirs, conducts auctions, runs 11 petrol stations<br />

and has a finance division. Boer-goat farming is very popular in<br />

the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong>. Dorper skins are prepared for<br />

the Italian fashion market and hides are processed for the motor<br />

vehicle industry. In May 2023 KLK acquired the last 20% share in<br />

Carpe Diem Raisins and it now owns 100%. Agricultural company<br />

Senwes is the majority shareholder of KLK.


8<br />

NATURAL RESOURCES<br />

AND COMPETITIVE ADVANTAGES<br />

The Kalahari Basin is immensely rich in manganese.<br />

The Kalahari Basin is home to between 70% and 80% of the world’s<br />

manganese resources. Large quantities of iron ore are railed out of<br />

Sishen every day.<br />

The website Mindat.org refers to the Kalahari Manganese Field<br />

as “one of the geological and mineralogical wonders of the world”,<br />

noting also the existence of “mineral specimens that are often<br />

rare or unique”. For many years mining of crocidolite was carried<br />

out in the Kuruman Hills, and the resource was such that it could<br />

have continued for more than the 50 years that it did. However, the<br />

other name for crocidolite is blue asbestos so this activity came to<br />

an abrupt stop in 1980. In addition to this, the area has a variety<br />

of gemstone minerals including tiger’s eye, pictured, amethyst,<br />

amazonite, jasper, rose quartz and sugilite.<br />

Hotazel is at the centre of a manganese mining hub, with several<br />

companies operating mines nearby. Hotazel Manganese Mines<br />

(HMM) runs the Mamatwan open-quarry manganese ore mine and<br />

sinter plant, the Wessels underground manganese ore mine and a<br />

railway terminus. South32 has a majority share in HMM, with Anglo<br />

American and local communities holding the balance. Nchwaning and<br />

Gloria mines are collectively known as Black Rock and they are owned<br />

by Assmang, a joint venture between Assore and African Rainbow<br />

Minerals. The company has two other iron-ore mines in the Northern<br />

Cape. Several new manganese mines have opened in recent years,<br />

including Tshipi Borwa, UMK, Kalagadi and Kudumane.<br />

Kumba Iron Ore and its predecessors have been mining iron ore at<br />

Sishen since 1953, extracting vast quantities of the resource.<br />

Although the land and weather conditions of the region can be<br />

harsh, cattle, sheep and goats have been reared succesfully for many<br />

years. The Kalahari Red Boer goat is well adapted to conditions.<br />

The Northern Cape is South Africa’s sunniest province, and the<br />

national programme to encourage investment in renewables has<br />

seen the overwhelming majority of solar projects allocated to it.<br />

Investors from Spain and Saudi Arabia, among others, have chosen<br />

to erect both concentrated solar power projects in <strong>John</strong> <strong>Taolo</strong><br />

<strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> (such as the Kathu Solar Park) or<br />

conventional solar photovoltaic (like the Sishen Solar Park).<br />

The Northern Cape is the natural home for the generation of<br />

solar power. Long-term annual direct normal irradiance (DNI)<br />

is 2 816kWh/m 2 , according to a survey done for Stellenbosch<br />

University by Slovakian company GeoModal Solar.


9<br />

LOCAL MUNICIPALITIES<br />

Historical sites, natural wonders and meerkat research await<br />

visitors to the district’s towns and villages.<br />

The urban settlements of <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong><br />

provide goods and services to the agricultural and mining<br />

communities that drive the regional economy.<br />

THREE LOCAL MUNICIPALITIES FALL UNDER THE<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY:<br />

GA-SEGONYANA LOCAL MUNICIPALITY<br />

• Towns: Bankhara-Bodulong, Kuruman, Mothibistad<br />

Kuruman is the administrative centre of <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong><br />

<strong>Municipality</strong>. Some of the area of the local municipality falls under the<br />

traditional authority system, which includes two paramount chiefs and<br />

headmen. Most of the district’s businesses are located in Kuruman,<br />

which is also the centre of agricultural trading and auctions. Country<br />

Inn Hotels, pictured, has three types of accommodation available in<br />

the town. Several minerals occur in the area, including the world’s<br />

richest deposit of crocidolite and tiger’s eye.<br />

A natural reservoir has washed the red oxide out of the local sand<br />

dunes. When these white dunes rub against red Kalahari sands,<br />

a humming sound is heard. The town is near the Witsand Nature<br />

Reserve where this phenomenon is best observed. San rock art<br />

paintings and war graves can also be seen near the town.<br />

JOE MOROLONG LOCAL MUNICIPALITY<br />

• Hotazel, Santoy, Vanzylsrus<br />

The Joe Morolong Local <strong>Municipality</strong> takes up about threequarters<br />

of the <strong>District</strong> <strong>Municipality</strong>’s area. All that space allows<br />

plenty of room for the country’s largest conservation area, the<br />

Tswalu Kalahari Reserve. The village of Vanzylsrus is the closest<br />

settlement to the Kalahari Research Centre which is a substantial<br />

facility within the Kuruman River Reserve with accommodation<br />

for 50 scientists and assistants. It is best-known for the Kalahari<br />

Meerkat Project which was popularised by the “Meerkat Manor”<br />

TV series, which has been translated into more than 20 different<br />

languages. Apart from its centrality to the country’s manganese<br />

industry, Hotazel has a claim to fame through the title of a book by<br />

famous photographer Obie Oberholzer. The Hotazel Years traced<br />

the author’s three decades of photographing the subcontinent.<br />

According to Oberholzer, Hotazel is the most central point furthest<br />

away from all the oceans in Southern Africa.<br />

GAMAGARA LOCAL MUNICIPALITY<br />

• Dibeng (Deben), Kathu, Olifantshoek<br />

Kathu has a 4 000ha camelthorn-tree forest that enjoys national<br />

heritage status and gave the town its name. Proximity to the huge<br />

Kumba Iron Ore mine at Sishen means that there are facilities that<br />

one might not expect in a small, rural town, for example a category-4<br />

aerodrome which is open for public use and an excellent golf course.<br />

The 39 000-acre Gamagara Africa Private Nature Reserve is located<br />

north of Deben. On the southern edge of the district is Olifantshoek,<br />

which lies at the foot of the Lange Mountains.


10<br />

WELCOME TO THE KALAHARI REGION<br />

Vast, ancient landscapes, warm welcomes and surprises.<br />

The <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> features the Kalahari<br />

Tourism Region. The sun-drenched Kalahari with its endless horizons<br />

evokes memories of a land before time. Its vast, ancient landscapes<br />

and misty horizons remind us of the beginning of time. A journey from<br />

Gauteng to Namibia, or the Cape, via Upington, brings unsuspecting<br />

travellers to the gateway of this mysterious land.<br />

Kuruman is the main town in the Kalahari region and is known as<br />

the “Oasis of the Kalahari”. The town is blessed with a permanent<br />

source of water and visitors are continually fascinated by this<br />

beautiful town. To do and see:<br />

• The Eye of Kuruman, pictured, is the largest spring in the southern<br />

hemisphere and delivers 20-30 million litres of crystal-clear water<br />

daily. The calm waters are speckled with lilies and reflections from<br />

surrounding trees.<br />

• Moffat Mission: The mission is often described as the Northern<br />

Cape’s fount of Christianity, as it was a base for many ventures into<br />

the interior by missionaries. It is named after Robert Moffat and<br />

was also David Livingstone’s first home in Africa.<br />

Contact: 071 759 3407<br />

• The home of Credo Mutwa in Magojaneng, Kuruman. He was one<br />

of South African finest prophets, a keeper of ancient traditions,<br />

sculptor, author and painter.<br />

• The Workshop Ko Kasi in Mothibistad, pictured, is a vibey meeting<br />

place, built with recycled and natural materials. Come to the kasi<br />

(local slang for township) to mingle, dine, express your creativity,<br />

enjoy a retreat or a live show, or head out on a cultural tour.<br />

Contact: 081 741 4994<br />

SURROUNDING TOWNS<br />

• Black Rock lies 25km from Hotazel and is home to the province’s<br />

Assmang underground manganese mine. View the manganese<br />

mineral collection. Contact: +27 53 751 5228<br />

• Wonderwerk Cave: On the R31 to Kuruman, this cave, pictured,<br />

has a history covering almost a million years and is virtually a<br />

textbook account of the evolution of humankind in South Africa.<br />

The 140-metre deep cavern has been home to many peoples<br />

throughout the ages. There is a small museum at the site.<br />

Contact: 082 222 4777<br />

• Dibeng (first drinking place) was named by the SeTswana and is<br />

located on the banks of the dry Gamara River. The town has strong<br />

Dutch Reformed links with the congregations of Kuruman, Kathu<br />

and Olifantshoek.<br />

• Tswalu Kalahari Reserve is 71km north of Kuruman and offers a<br />

memorable Kalahari experience. Contact: +27 53 781 9331<br />

Kathu (Sishen) is a mining town in the area and it is strategically<br />

connected by road, rail and air through Kimberley and Upington.<br />

To see and do:<br />

• Sishen iron-ore mine: Even for those only vaguely interested in<br />

great dusty holes in the earth and noisy, smoke-belching diesel<br />

machinery, a tour of the open-cast mine on the outskirts of Kathu,<br />

which is one of the biggest manmade holes in the world, is mindboggling.<br />

The sheer size of the equipment includes the biggest<br />

trucks in the world. When the pit is in full production, it uses fivemillion<br />

litres of diesel every month. Contact: +27 53 739 2900<br />

• Sishen Golf Course: This top-20 course has hosted a Sunshine<br />

Tour event, the Sishen Classic, and is noted for its grassed fairways<br />

meandering through a forest of centuries-old camelthorn trees.<br />

Contact: +27 53 050 5727<br />

Vanzylsrus is a popular stopover for tourists on their way to the<br />

Kgalagadi Transfrontier Park and is surrounded by the rust-red<br />

dunes of the Kalahari and offers true Kalahari hospitality and a<br />

paradise for biltong lovers. To see and do:<br />

• Visits to the “Meerkat Manor” BBC film series project: Visit the<br />

burrows and see the “meerkat celebrities” in their natural habitat.<br />

Contact: +27 (0)53 781 0201<br />

• Game drives: Tourists will be pleasantly surprised by the unique<br />

vegetation that exists in what looks like dry desert which blossoms<br />

into a green and lush veld during the rainy season. On game<br />

farms look out for sable and roan antelopes, black rhino, eland,<br />

springbok and the gracious gemsbok.<br />

• Bird watching: Hundreds of exotic and indigenous bird species,<br />

including the Kori Bustard (Gompou), “the heaviest flying bird on<br />

the planet”, can be seen, as well as one of the noisiest birds on<br />

our planet, the korhaan. The yellow and red-billed hornbills (also<br />

called the kok-kok) will be your beautiful morning alarm at sunrise.<br />

• Ancient Molopo: Enjoy a traditional picnic or braai in the dry river<br />

beds of this ancient historic symbol of the Kalahari about which<br />

many a song has been written.<br />

• Hiking trails: Appreciate the splendour of the indigenous Kalahari<br />

vegetation and learn more about the ways in which Bushmen have<br />

used the vegetation for traditional healing and other exciting uses.<br />

• Stargazing: The Kalahari’s vast open planes and unpolluted air are<br />

ideal for getting close to heavenly bodies. The ideal location for<br />

professional and amateur stargazers.<br />

TOURISM ROUTES<br />

The Kalahari region features three route experiences that will<br />

capture the imagination of those who dare to explore it. The<br />

incredible year-round experiences coupled with warm hospitality<br />

and the peace and tranquility offered by off-the-beaten-track<br />

towns and villages and space as far as the eye can see, will inspire<br />

unforgettable holiday memories and life-changing experiences.


11<br />

THE ROARING KALAHARI ROUTE<br />

The sheer size and distances of the Kalahari can<br />

be intimidating, but the tourism experiences of<br />

the Roaring Kalahari Route guides visitors through<br />

this vast wilderness. The route starts in the oasis of<br />

Kuruman before heading through the tree-filled town of<br />

Kathu and northwards to Dibeng and the mining towns of<br />

Hotazel and Black Rock. It then heads to McCarthy’s Rest on<br />

the Botswana border, back down to Vanzylsrus and westward to<br />

Askham with a detour to the unforgettable Kgalagadi Transfrontier<br />

Park.The next stop on the itinerary is Upington, the largest town<br />

on the route, before heading back east to Groblershoop and the<br />

Boegoeberg Dam. A stay-over at the Witsand Nature Reserve is an<br />

absolute must before you continue the journey to Griquatown and<br />

Danielskuil. Along the way visitors can visit and stay at some of the<br />

most hospitable and quaint guest houses, guest farms, resorts,<br />

parks and nature reserves in the country.<br />

Contact: +27 53 781 0201<br />

TWO MORE TOURISM ROUTES<br />

ARE DESCRIBED ON THE PAGES THAT FOLLOW:<br />

• Forgotten Highway Route<br />

• Gho Ghaap Route<br />

CONTACT DETAILS:<br />

Northern Cape Tourism Authority<br />

Email: marketing@experiencenortherncape.com<br />

Kuruman Tourism: +27 53 712 8816<br />

<strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> Tourism: +27 53 712 1479


12<br />

TOURISM GO! GHAAP ROUTE<br />

Discover white and red sand dunes, an oasis and a wonder cave.<br />

Main centres: Dibeng (Deben), Kathu, Daniëlskuil, Kuruman,<br />

Postmasburg, Griquatown, Campbell, Olifantshoek.<br />

Formerly known as the Griqualand West region, the route comprises<br />

a series of heritage sites, including some dating back three-billion<br />

years, as well as the Witsand Nature Reserve, with its white sand<br />

dunes standing in stark contrast to the surrounding red Kalahari<br />

sand dunes. The Ghaap falls within the Savannah biome in the south<br />

while the northern areas begin to be absorbed into the Kalahari<br />

biome. The heart-shaped Ghaap Plateau is a main attraction in<br />

the region, situated in the central interior of the Northern Cape.<br />

The plateau is about 1 130m above sea level and extends about<br />

150km from east to west between the Harts River Valley and the<br />

Kuruman Hills. Boreholes have revealed the existence of rich<br />

underground water resources, which contributed to<br />

development in the region.<br />

There is a lot to do on the Go! Ghaap<br />

Route, including learning about the various<br />

ethnic groupings who have<br />

called this area home, including<br />

the San, Tswana and<br />

Griqua people – and, in the<br />

1800s, the missionaries, explorers and travellers who once roamed<br />

this vast region. This area played a unique and critical role in South<br />

Africa’s history.<br />

NATURAL SPLENDOUR<br />

Known as the “oasis of the Kalahari”, Kuruman is an interesting<br />

destination for the curious traveller to visit, not least because of the<br />

Eye of Kuruman, which delivers thousands of litres of fresh water<br />

daily. The Wonderwerk Cave is an archaeological wonder believed<br />

to be at least two-billion years old. The large cave is located<br />

45km south of Kuruman and 43km north of Daniëlskuil. Research<br />

conducted by archaeologists at the cave, which<br />

extends 140m horizontally into the base of<br />

the Kuruman Hills, suggests the presence of<br />

early human activity. The Kuruman Hills are<br />

also worth visiting when touring this route. They<br />

are known for their large quantities of blue<br />

asbestos or crocidolite, which prompted<br />

mining in the Ghaap region from the<br />

1930s until 1980. This was<br />

halted after the serious<br />

and often deadly health<br />

risks of asbestos mining<br />

were discovered.<br />

CULTURE<br />

AND LEISURE<br />

The cultural camp in<br />

Paulshoek offers insights<br />

into the lives<br />

of the people who live in the area.<br />

Matjieshuts (portable tents of the Khoi<br />

people) and traditional meals are available<br />

on request. Here visitors will gain insight into<br />

how these people moved according to seasons<br />

to find better grazing grounds for their herds<br />

of livestock, disassembling their matjieshuts and<br />

reassembling them again in fertile soil for the<br />

animals to thrive.<br />

Kgalagadi Jazz Festival: The Kgalagadi Jazz<br />

Festival is a highly anticipated music festival<br />

that takes place at the Mothibistad Stadium<br />

in Kuruman every year. The festival puts<br />

the province firmly on the map with a line-up<br />

that features local legends on the jazz music<br />

scene. Contact: +27 60 840 2943 or visit the<br />

Kgalagadi Jazz Festival Facebook page.


13<br />

TOURISM FORGOTTEN HIGHWAY ROUTE<br />

The Forgotten Highway Route retraces the<br />

steps of ancient forbears and explorers,<br />

missionaries and diamond prospectors.<br />

Kuruman marks the northern end of a new and exciting route that<br />

tracks the journeys made by adventurous travellers over several<br />

centuries. The 1 000km route stretches from Tulbagh and Ceres<br />

in the Western Cape to the administrative capital of the <strong>John</strong> <strong>Taolo</strong><br />

<strong>District</strong> <strong>Municipality</strong> in the north. It is the route that was used by<br />

the !Xam, KhoeKhoe, Tswana and missionaries. From Kuruman,<br />

travellers would plan their ventures further north into central Africa.<br />

This new heritage route offers a confluence of cultures and<br />

experiences. Explore famous archaeological sites, historic towns,<br />

amazing architecture and a selection of nature and game reserves.<br />

Visitors can trace the early geological history which created vast<br />

mineral wealth like iron, manganese, diamonds and limestone.<br />

Follow in the footsteps of the early explorers and missionaries<br />

such as David Livingstone, Henry Stanley and Richard Moffat. Relive<br />

the Anglo-Tswana and Anglo-Boer Wars and explore the Wonderwerk<br />

Caves near Kuruman.<br />

After the indigenous people and the missionaries came the<br />

prospectors, eager to get as quickly as possible to the diamond fields<br />

of Kimberley. Every kind of conceivable good was carried along the<br />

route, sufficient to turn Kimberley into one of the busiest places in<br />

the southern hemisphere and to create traffic jams of wagons along<br />

the route.<br />

Two events of 1877 spelt the end of the road through<br />

Karoopoort as a route of choice: the railway line to the north<br />

reached Touwsriver and a new pass over the Cedarberg gave direct<br />

access to the Karoo. The project to recover and restore the route<br />

was undertaken by the Karoo Development Foundation, which<br />

achieved its first landmark success in 2015 when Karoo lamb was<br />

registered as a Geographic Indicator.<br />

TO SEE AND DO:<br />

• Kuruman Eye: A natural spring delivering about 20-million litres of<br />

clear water daily to Kuruman.<br />

• Moffat Museum, pictured: Named after Robert Moffat, a Scottish<br />

missionary who lived and worked here from 1820 to 1870. He<br />

translated the Bible into Setswana. It was also renowned explorer<br />

David Livingstone’s first home in Africa.<br />

• Hotel Kgalagadi: A visit is a must to view their impressive collection<br />

of vintage cars.<br />

• Workshop Ko Kasi: A modern-day township experience near<br />

Mothibistad.<br />

Less than 200km to the south of Kuruman and located in the<br />

neighbouring Northern Cape <strong>District</strong> <strong>Municipality</strong> of Pixley ka Seme,<br />

the town Griekwastad is famous as a founding location of the Griqua<br />

nation and the grave of Andries Waterboer can be visited. The Mary<br />

Moffat Museum is named for the daughter of the famous missionary<br />

Robert, giving the family the rather unique distinction of having two<br />

museums named for them. The nearby Witsand Nature Reserve is a<br />

popular destination.<br />

NORTHERN CAPE TOURISM AUTHORITY<br />

Email: marketing@experiencenortherncape.com<br />

<strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> Tourism: +27 53 712 1479<br />

The Forgotten Highway Route: 071 401 2583


14<br />

INVESTMENT OPPORTUNITIES<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY<br />

The project promoter in each of the projects listed below is the <strong>District</strong> Development Model.<br />

PROJECT DESCRIPTION INVESTMENT VALUE SOURCE OF FUNDING<br />

Development<br />

of a highereducation<br />

facility<br />

An artisans’ college, university, university of<br />

technology or TVET college to be developed<br />

in the district.<br />

R4-billion<br />

Department of Higher Education<br />

Regional (Level<br />

4) hospital<br />

Access for residents of the district to<br />

specialised healthcare will be provided for with<br />

the construction of a regional hospital.<br />

R2.6-billion<br />

Department of Health, private sector<br />

Bulk-water<br />

supply services<br />

Provision of bulk-water supply services<br />

will improve health and sanitation, having<br />

a domino effect on economic activity and<br />

productivity.<br />

R500-million<br />

Department of Water and Sanitation<br />

Basic education<br />

programme<br />

Ensuring that marginalised communities have<br />

access to education facilities. A number of<br />

new schools are planned, to be financed by<br />

the Education Infrastructure Grant.<br />

R7.2-million<br />

Department of Basic Education and<br />

Education Infrastructure Grant<br />

Mega-Agri Park<br />

Four Farmer Production Support Units<br />

(FPUs) and an abattoir will support increased<br />

food production, technology transfer and<br />

opportunities for entrepreneurship.<br />

R95-million<br />

Department of Agriculture, Land<br />

Reform and Rural Development<br />

Grid electricity<br />

transformers<br />

Two new 40MVA transformers and a<br />

substation to be built to improve the living<br />

conditions of residents and encourage<br />

economic development.<br />

R122-million<br />

Department of Energy<br />

Gamagara<br />

Mining Corridor<br />

Investigate feasibility of a corridor, develop<br />

a metals cluster and investigate the<br />

construction of smelter and sinter plants.<br />

Depending on feasibility<br />

studies.<br />

National Skills Fund, Department of<br />

Energy, <strong>District</strong> Development Model<br />

and private sector<br />

Kuruman<br />

Industrial Park<br />

Similar to the facility planned for Kathu (next<br />

page), the park aims to diversify the local<br />

economy, bolster infrastructure and provide<br />

economies of scale.<br />

R20-million<br />

Infrastructure South Africa, Catalytic<br />

Projects Fund<br />

<strong>John</strong> <strong>Taolo</strong><br />

<strong>Gaetsewe</strong><br />

regional airport<br />

A regional airport would boost transport<br />

links and facilitate the improved movement<br />

of goods and people. It could attract new<br />

business and stimulate tourism.<br />

R2-billion<br />

Department of Transport<br />

New disaster<br />

centre<br />

Access to disaster management services<br />

will help the community prepare for natural<br />

disasters.<br />

R1.2-billion<br />

Department of Cooperative<br />

Governance and Traditional Affairs


15<br />

The Kathu campus of the Northern Cape Rural TVET College.<br />

PROJECT DESCRIPTION INVESTMENT VALUE SOURCE OF FUNDING<br />

Taxi and bus<br />

rank<br />

A formal facility will make for easier and safer<br />

transportation services.<br />

R2-billion<br />

Department of Transport<br />

Public parks<br />

Social amenities such as public parks improve<br />

the quality of life of citizens and enhance<br />

social cohesion.<br />

R20-million<br />

<strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong><br />

<strong>Municipality</strong><br />

Waste-to-energy<br />

plant<br />

Various forms of waste such as municipal<br />

solid waste could be turned into energy,<br />

bringing environmental benefits and job<br />

opportunities.<br />

R2-billion<br />

Private sector<br />

Office park<br />

complex<br />

A centralised business location will bring<br />

benefits to companies and could attract<br />

businesses and entrepreneurs, together with<br />

ancillary businesses such as restaurants.<br />

R3-billion<br />

Private sector<br />

Conference<br />

facility<br />

To fill a gap in the market for a venue for<br />

conferences and events.<br />

R1.6-billion<br />

Private sector<br />

<strong>John</strong> <strong>Taolo</strong><br />

<strong>Gaetsewe</strong><br />

Stadium<br />

A stadium will bring economic benefits, create<br />

new jobs, generate additional revenue and<br />

increase tourism.<br />

R2-billion<br />

Private sector


16<br />

INVESTMENT OPPORTUNITY<br />

KATHU INDUSTRIAL PARK<br />

A catalyst for multi-sectoral growth.<br />

It is envisaged that the Kathu Industrial Park (KIP) will serve as a<br />

catalyst for accelerated growth of other economic sectors.<br />

PROJECT LOCATION<br />

Kathu, Gamagara Local <strong>Municipality</strong>, <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong><br />

<strong>District</strong> <strong>Municipality</strong>.<br />

PROJECT BACKGROUND<br />

The Sishen Iron Ore Company (Pty) Ltd (SIOC) and the Industrial<br />

Development Corporation (IDC) have funded various studies to<br />

assess the feasibility of developing an industrial park to stimulate<br />

sustainable long-term economic development for the Northern<br />

Cape region. The envisaged development will attract a variety of<br />

tenants delivering industrial goods and services within a synergistic<br />

environment supported by centralised services and complemented<br />

by a business incubation and training complex. With the mining<br />

industry being the largest real economic sector in the Northern<br />

Cape economy, the town of Kathu is the preferred location due to its<br />

central proximity to the Postmasburg-Hotazel iron-ore/manganese<br />

belt and various established and pending REIPPPP projects.<br />

The bankability study has not only confirmed extensive interest<br />

from businesses (potential tenants) but has also confirmed the<br />

support of various key stakeholders and the commitment of<br />

investors and financiers. This development, located on the R380, is<br />

easily accessible from the N14 and the Kathu airport.<br />

The project is considered a key enabler for localised manufacturing<br />

initiatives anticipated via the Northern Cape Shared Value Initiative<br />

and Impact Catalyst.<br />

KIP COMPONENTS<br />

• Central Hub: central administration offices, conferencing facilities,<br />

an auditorium, a security office, a restaurant and other social facilities.<br />

• A Business Incubation Centre and Training Centre.<br />

• Customised warehouses, industrial buildings and mini-factories.<br />

• Security fencing and lighting.<br />

• Additional infrastructure such as an internal water reticulation<br />

system.<br />

TARGETED SECTORS<br />

The KIP targets all economic sectors requiring serviced<br />

industrial space in the region, but with the major portion of the<br />

initial tenant makeup (study phase uptake) primarily serving<br />

the established mining sector, by virtue of the KIP’s central<br />

proximity to the Postmasburg-Hotazel iron-ore/manganese<br />

belt. The KIP is also well positioned to serve the emerging<br />

REIPPPP sector in the region. Local companies such as Mdux<br />

Instrumentation and Control Systems, pictured, are already<br />

active in the rooftop solar panel sector. In addition to the<br />

ongoing development of business opportunities within the<br />

tenant supply chains, it will be the role of the KIP Business<br />

Incubator to expand the coverage of the KIP into other sectors.<br />

Study-phase tenant engagement and commitment to the project<br />

has covered all possible prospective tenants, regardless of<br />

size or level of development. The KIP development caters for<br />

every kind of tenant facilities, from large, customised facilities<br />

through to smaller economically efficient mini-factories.<br />

PROJECT FINANCING<br />

• Phase 1: Debt and equity commitment provisionally secured from<br />

private sector (mining stakeholders) and public sector (IDC). Engagement<br />

is ongoing with Northern Cape Provincial Government<br />

and Department of Trade, Industry and Competition (dtic).<br />

• Phase 2-3: Current indication is that tenant uptake surplus to<br />

Phase 1 will support a further phase of at least R500-million.<br />

PROJECT STATUS<br />

Bankability Study, Project Development Plan, Environmental Permitting,<br />

Land rezoning and various scope realignment and market studies<br />

completed. Investor Engagement Phase substantively completed<br />

with provisional commitment secured from IDC, Kumba, SIOC-CDT,<br />

Assmang and South32, but with a funding shortfall still to be resolved.<br />

The project has been submitted to Infrastructure South Africa<br />

to register as a catalytic project.


17<br />

Providing services to the mining industry will be a major driver of development within the Kathu Industrial Park.<br />

INDUSTRIAL PARKS IN CONTEXT<br />

As defined by the National Department of Trade, Industry and Competition<br />

(dtic), Special Economic Zones (SEZs) are geographically<br />

designated areas of a country set aside for specifically targeted economic<br />

activities, supported through special arrangements (that may<br />

include laws) and systems that are often different from those that<br />

apply in the rest of the country. SEZs can include Industrial Parks<br />

such as the Kathu Industrial Park.<br />

South Africa’s Industrial Policy Action Plan, IPAP, identifies SEZs as<br />

key contributors to economic development. They are growth engines<br />

towards government’s strategic objectives of industrialisation,<br />

regional development and employment creation.<br />

The purpose of the SEZ programme is to: expand the strategic<br />

industrialisation focus to cover diverse regional development needs<br />

and context; provide a clear, predictable and systemic planning<br />

framework for the development of a wider array of SEZs to support<br />

industrial policy objectives like the IPAP and National Development<br />

Plan (NDP); clarify and strengthen governance arrangements,<br />

expand the range and quality of support measure beyond provision<br />

of infrastructure; and provide a framework for a predictable financing<br />

framework to enable long-term planning. The same principles apply<br />

to various Industrial Parks which are either being built or revived.<br />

Apart from attracting foreign direct investment (FDI) and boosting<br />

employment, SEZs can be instrumental in adding new sectors or<br />

subsectors to an economy. An obvious candidate in that category is<br />

Kathu Village Mall is a vibrant shopping centre.<br />

renewable energy which needs manufactured components such as<br />

solar panels and towers for wind turbines.<br />

Incentives include tax breaks from the South African Revenue<br />

Service, subsidised interest rates from the Industrial Development<br />

Corporation, subsidies for employees earning below a certain level,<br />

training grants from the dtic and discounts from national electricity<br />

utility Eskom. The SEZ is also a customs-controlled area. The<br />

SEZs are located in a municipality and for the SEZ programme to<br />

succeed, municipalities must be part of the planning, design and<br />

implementation of these spatial development catalysts. The local<br />

government sector is, therefore, an important stakeholder in the<br />

drive to build sustainable and successful SEZs.


18<br />

INVESTMENT OPPORTUNITY<br />

DEVELOPMENT OF MINI-CONFERENCE CENTRES<br />

Opportunities exist for the establishment of<br />

meeting facilities in <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong>.<br />

Bearing this in mind, a consultancy, ReA-Con,<br />

was asked to do a feasibility study on the<br />

establishment of mini-conference facilities in<br />

the Pixley ka Seme <strong>District</strong> <strong>Municipality</strong> and<br />

the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong>.<br />

Kuruman Country Club<br />

Thabo Mogorosi Multipurpose Centre, Kuruman<br />

PROJECT BACKGROUND<br />

The Northern Cape has one large convention centre in Kimberley and<br />

several other venues, but most of them can accommodate fewer than<br />

300 delegates, the benchmark for the definition of an “international”<br />

conference. Business travellers spend much more than leisure<br />

travellers and frequently combine both activities. South Africa has a<br />

National Conventions Bureau which encourages international associations<br />

and conventions to have their meetings and events in South<br />

Africa. The Northern Cape is in the process of establishing a similar<br />

body for the province.<br />

Kimberley and Upington are the main cities for conference venues<br />

in the Northern Cape. Decentralisation would assist both South Africa<br />

(in being able to offer a wider variety of conference venues) and<br />

the Northern Cape economically, in spreading economic growth to<br />

smaller towns. The Northern Cape Tourism Authority hosts 65 annual<br />

events and the presence of the Sol Plaatje University in the province<br />

heightens the likelihood of academic conferences being hosted.<br />

DESCRIPTION OF THE PROJECT<br />

The aim of the feasibility study was to<br />

identify, evaluate and recommend suitable<br />

buildings or infrastructure in selected<br />

towns for the establishment of conference<br />

centres. Various criteria were used to determine<br />

whether a venue held sufficient<br />

potential to be considered, and a short list<br />

of possible sites was drawn up. Suggested<br />

adaptations to accommodate conference<br />

delegates and events were made for many<br />

kinds of existing venues, ranging from town halls and hospitals<br />

(no longer used for their original purposes) to a caravan park, a<br />

stadium and a country club.<br />

POSSIBLE SITES<br />

A total of 14 sites were identified as having the potential to be converted<br />

to conference facilities across the two district municipalities. These<br />

14 sites were in the towns of Vanderkloof, Colesberg, De Aar and<br />

Kuruman. Some were ranked as “primary”, others as “secondary”.<br />

LOCATION<br />

In <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong>, two venues were identified in the<br />

town of Kuruman as potential sites: the Kuruman Country Club and<br />

the Thabo Mogorosi Multipurpose Centre.<br />

TARGETED SECTORS<br />

• Construction<br />

• Real estate<br />

• Facilities management<br />

• Retail<br />

CONTACTS<br />

Johann van Schalkwyk: Director: Tourism Development Unit,<br />

Tourism Programme<br />

Department of Economic Development and Tourism<br />

Tel: +27 53 830 4892 |Fax: +27 86 543 1064<br />

Email: jvs.dtec@gmail.com


19<br />

ENERGY INVESTMENT<br />

COMMUNITY TRUSTS ARE TRANSFORMATIVE<br />

Small rural communities are<br />

shareholders in energy plants.<br />

Given South Africa’s history and continuing inequalities, it was vital for<br />

the success of the country’s programme to encourage investment in<br />

renewable energy that something had to be done to give previously<br />

disadvantaged citizens a chance to participate. Community trusts<br />

have been the main vehicle through which local communities have<br />

become shareholders in the energy-generating projects.<br />

The ownership of the Sishen solar photovoltaic plant at Dibeng<br />

north-west of Kathu is made up as follows: ACCIONA (54.9%), Royal<br />

Bafokeng Holdings (25.1%), Soul City (10%), Dibeng Community<br />

Solar Energy Trust (10%). Soul City is a community organisation.<br />

This is a typical ownership structure under the Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP).<br />

The REIPPPP has attracted a good deal of praise for its efficiency<br />

and effectiveness: more than R200-billion has been committed in<br />

investments in a variety of projects across South Africa.<br />

During the 15 months it took to build the plant, around 1 000 jobs<br />

were created, 94% filled by South Africans. Over the construction<br />

period and working life of the facility, which is expected to operate for<br />

over 25 years, 2.1% of the revenues will go towards socio-economic<br />

programmes in the small town of 8 000 residents.<br />

The South African Wind Energy Association (SAWEA) has issued<br />

a Commitment Statement which noted that the REIPPPP has a<br />

“built-in demand for local procurement”, not only offering business<br />

opportunities to local companies, but also incentivising the industry<br />

to identify and support emerging entrepreneurs.<br />

The rollout of renewable energy has met some resistance in South<br />

Africa from diverse constituencies. In response, renewable energy<br />

advocates cite not just investment figures, but they note how much<br />

good work has been done in communities.<br />

Figures released by SAWEA show shareholding for local<br />

communities at an estimated net income of R29.2-billion over the<br />

lifespan of the projects. Some 14 000 new jobs are expected to<br />

be created, mostly in rural areas, and more than R30-billion has<br />

already been spent on Black Economic Empowerment (BEE) in the<br />

construction phase.<br />

One of the biggest underwriters of community trusts has been the<br />

Industrial Development Corporation (IDC). In a document on trusts,<br />

the IDC states:<br />

In view of South Africa’s well-documented energy challenges, the<br />

IDC – through its funding support to the energy sector – has been<br />

proactive in contributing to the country’s Just Energy Transition and<br />

energy security. The IDC’s funding activity has benefit ted entities with<br />

exposure to energy generation and efficiency. These projects are<br />

also aimed at reducing greenhouse-gas emissions.<br />

Funded projects have ranged in various sizes from utility scale,<br />

through to smaller-scale distributed energy solutions, either for<br />

Own-Use by commercial and industrial-sector companies or for sale<br />

by Independent Power Producers. Of signifi cance to the IDC is the<br />

need to empower communities to bene fit from inclusive, equitable<br />

and sustainable development in their respective regions. With over<br />

R14-billion invested in renewable energy projects spread across the<br />

country, the Corporation has funded 24 Community Trusts, enabling<br />

them to actively participate in the country’s Renewable Energy<br />

Independent Power Producer Procurement Programme. Our support<br />

is purposeful in ensuring that communities use these dividends for<br />

socio-economic development, addressing poverty and unemployment<br />

through community-based development programmes.


20<br />

ENTERPRISE DEVELOPMENT<br />

Growing local business<br />

underpins corporate strategies.<br />

Supplier Development Programmes and Enterprise Development Programmes<br />

are major contributors to the promotion of local businesses all over South<br />

Africa. With the arrival of large corporates in the form of solar and wind farm<br />

investors, rural communities in the Northern Cape, SDP and EDP have become<br />

an important part of the transformation of region’s economic landscape.<br />

The Minerals Council South Africa (representing mine owners) is running the<br />

Northern Cape Mining Community (NCMC) project to provide insight into the<br />

contribution of mining to the Northern Cape. Specifically, the initiative aims<br />

to illustrate the economic, social and environmental contributions by and<br />

the impact of mining on the area and its people. According to the NCMC,<br />

more than R700-million was spent on development projects by mining<br />

companies in the province over a period of five years.<br />

Nineteen mines are listed in the province – with eight of those being<br />

in the <strong>John</strong> <strong>Taolo</strong> <strong>Gaetsewe</strong> <strong>District</strong> <strong>Municipality</strong> – and each of these<br />

operations has Social and Labour Plans (SLPs) in addition to SDPs and<br />

EDPs. In terms of these programmes, large companies are obliged<br />

to or choose to help build up and train business owners (ED) which<br />

might be part of their supply chain (SD). The programmes often<br />

overlap, as it makes business sense for a large mining operation<br />

to have a successful local bus company supply its transport needs.<br />

The same would apply to the cleaning of solar panels, illustrated<br />

in the top picture on this page at the Kathu Solar Park. Given<br />

a steady client and a reliable income, these local businesses<br />

are much more likely to succeed in the long term and to create<br />

employment as they grow.<br />

So widespread have ED and SD programmes become that national<br />

awards are now presented annually. The Business Day Supplier Awards<br />

has no fewer than 11 categories and an overall winner. That winner<br />

in 2021 was Tiger Brands, whose R100-million Dipuno Enterprise and<br />

Supplier Development Fund impressed the judges and which was cited<br />

as an illustration of the best kind of collaboration between the private<br />

sector, government, mining houses and their pipeline partners. This<br />

kind of cooperation creates jobs and can lead to expansion.<br />

Kumba Iron Ore, which mines the Sishen Mine near Kathu,<br />

spent R5.4-billion on local community suppliers in 2022. Across<br />

the province, that amount rose to R18-billion with BEE-business<br />

suppliers. Fully 81% of the company’s employees are local. The<br />

Sishen Iron Ore Company-Community Development Trust (SIOC-<br />

CDT) is the body that disburses funds to community projects.<br />

So far, it has invested more than R1-billion in socio-economic<br />

and community development projects. Support is given to<br />

local SMMEs through advice and support, over and above any<br />

purchasing agreements, and health and education are the<br />

major focus of the community trust. The other images on this<br />

page reflect work done by the SIOC-CDT.


NATIONAL INCENTIVE SCHEMES<br />

The national Development of Trade, Industry and Competition (the dtic), in collaboration with<br />

other public and private sector entities, has developed a number of incentives schemes to<br />

assist with the growth of certain sectors. These national incentives schemes are listed below.<br />

INNOVATION CLUSTER<br />

MANUFACTURING INVESTMENT CLUSTER<br />

PROGRAMME<br />

INCENTIVES<br />

PROGRAMME<br />

INCENTIVES<br />

• Technology and Human<br />

Resources for Industry<br />

Programme (THRIP)<br />

• Support Programme for Industrial<br />

Innovation (SPII)<br />

• A 50% to 90% cost-sharing grant<br />

to maximum R8-million per annum<br />

for three years for approved<br />

project engaged in applied<br />

research and development<br />

in science, engineering and<br />

technology.<br />

• Matching scheme that provides<br />

financial assistance in the form of<br />

a non-taxable grant for qualifying<br />

costs incurred in development<br />

activity associated with a<br />

specific project to a maximum of<br />

R5-million.<br />

• Black Industrialists<br />

Scheme (BIS)<br />

• Aquaculture<br />

Development and<br />

Enhancement<br />

Programme<br />

(ADEP)<br />

• Strategic<br />

Partnerships<br />

Programme (SPP)<br />

• A 30% to 50% cost-sharing grant of up to<br />

R50-million. Offers support on a cost-sharing<br />

basis towards capital investment costs, feasibility<br />

studies, post-investment support and business<br />

development services (to the maximum of<br />

R2-million).<br />

• Reimbursable cost-sharing grant of 30% to<br />

50%, maximum of R20-million.<br />

• A maximum of R15-million per financial year on<br />

a 50:50 basis.<br />

• Global Business Services (GBS)<br />

Incentive<br />

• Film and TV Production<br />

• Export Marketing <strong>Investment</strong><br />

Assistance (EMIA)<br />

• Sector Specific Assistance<br />

Scheme (SSAS)<br />

• Capital Projects Feasibility<br />

Programme (CPFP)<br />

SERVICES INVESTMENT CLUSTER<br />

EXPORT CLUSTER<br />

• Reimbursable cost-sharing grant<br />

of 30% to 50%, maximum of<br />

R20-million for qualifying costs.<br />

Score based on economic benefit<br />

criteria.<br />

• For productions with various QSAPE<br />

amounts, various percentage and<br />

calendar days requirements may<br />

be waived and such discretion will<br />

take into account the budgetary<br />

implications of the decision made.<br />

• Return airfares, subsistence<br />

allowances, the cost of sample<br />

transportation and various other<br />

costs may be covered in respect<br />

of costs related to marketing,<br />

missions and trade fairs.<br />

• Project Funding. A reimbursable<br />

80:20 cost-sharing grant scheme.<br />

• Emerging Exporters. 100%<br />

of the cost to a maximum of<br />

R1.9-million per project.<br />

• Reimbursable contribution up to a<br />

maximum of R8-million.<br />

• Agro-Processing<br />

Support Scheme<br />

(APSS)<br />

• Automotive<br />

<strong>Investment</strong><br />

Scheme (AIS)<br />

• Special Economic<br />

Zone Fund (SEZ)<br />

• Critical<br />

Infrastructure<br />

Programme (CIP)<br />

• Reimbursable cost-sharing grant of 20% to 30%<br />

to a maximum of R20-million.<br />

Non-taxable cash grant of<br />

• 20% of the value for light motor vehicle<br />

manufactures and<br />

• 25% of the value of qualifying investment in<br />

component manufactures and tooling companies.<br />

INFRASTRUCTURE INVESTMENT CLUSTER<br />

• Preferential taxes (including 12i Tax Allowance)<br />

• Bulk infrastructure (electrical sub-stations, water<br />

storage, sewerage treatment and pumping, etc)<br />

• Top structures<br />

• Business development (pre-feasibility studies<br />

and feasibility studies, technology testing and<br />

training, EIA and general research linked to<br />

planned investment and clusters)<br />

Registered private entities and local governments<br />

(municipalities, excluding metropolitan<br />

municipalities).Types of supported projects, capped<br />

at R50-million:<br />

• strategic infrastructure feasibility studies<br />

• generic investment<br />

• South African film and TV studios and cinemas<br />

• state-owned testing facilities<br />

• state-owned industrial parks<br />

• distressed municipalities or investors in such<br />

municipalities


22<br />

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY<br />

Contact Details<br />

Address:<br />

4 Federale Mynbou Street, Kuruman 8460<br />

Tel: +27 (53) 712 8700<br />

Municipal Manager: Mr Klaas Teise<br />

Tel: +27 (53) 712 8731<br />

Cell: 082 712 0363<br />

Email: mmsec@taologaetsewe.go.za<br />

Email: klaas.teise@gmail.com<br />

Website: www.taologaetsewe.gov.za

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