The 2nd edition of the Namibia Oil and Gas Conference will return in August under the theme; The Next Steps towards a Prosperous Oil and Gas Industry – another unparalleled opportunity for local and global investors to connect, develop and sign deals and partnerships.
The programme will focus on key issues such as sustainable development, investment opportunities, and technological advancements in the industry, alongside an international exhibition.
With an agenda that includes expert panels, keynote addresses, and networking opportunities, the conference promises to be an essential platform for shaping the strategic direction of Namibia’s landscape.
The Sishen circle has been widened. Credit: SANRAL
Investments have been flowing steadily into the Northern Cape as mining and renewable energy projects pique the interest of domestic and international companies. To maintain and accelerate that flow, national, provincial and local government is pouring resources into constructing new infrastructure.
This includes digital infrastructure. The Northern Cape Provincial Government has been actively pursuing a digital strategy to expand access to the Internet. Examples of successful rollouts include free WiFi hotspots at all youth centres and 91% penetration of connectivity at the province’s health facilities. Private companies are doing their bit too, as telecoms operators Vodacom and MTN redouble their efforts to extend the range and quality of their signals across South Africa’s biggest province. More details appear in the ICT overview of the 2024/25 edition of Northern Cape Business, the annual guide to business and investment in the province.
The decision by Colossal Concrete Products to bring the precast concrete factory in De Aar back to life is a significant boost for infrastructure in the province. As the company’s Chief Executive Officer (CEO), Gwen Mahuma-Madida, said at the ribbon-cutting in October 2023, “Africa is rich in natural resources, but much-needed growth and progress are often hampered by lack of finance and the required infrastructure. Colossal Concrete Products understands the pivotal importance of infrastructure development and the impact that this has on the economic development of any country.”
With a brief from Transnet Freight Rail to make railway sleepers, Colossal Concrete Products will also be looking to expand into the renewable energy sector (wind towers) and the construction sector more broadly.
Colossal Concrete Products is making precast concrete at De Aar. Credit: Colossal Concrete Products
Presenting the provincial budget in 2024, Finance MEC Abraham Vosloo allocated R20-billion to health and R25-billion to education in a budget of R68-billion. These social services are the main responsibility of this level of government. Provincial priorities are health facilities, schools, roads, housing, energy, water and sanitation. As Northern Cape Premier Dr Zamani Saul says, “Infrastructure investment is the backbone of a thriving economy.”
Two public infrastructure property projects that will be tackled in 2024 are a R30-million renovation of Mayibuye Centre and a R10-million upgrade for the AR Abbass stadium in Kimberley.
Municipalities can receive help in rolling out infrastructure through the Municipal Infrastructure Grant (MIG) programme. A Public Infrastructure Unit Cost Guideline has been developed by the Municipal Infrastructure Support Agent (MISA) to help municipalities control expenditure of MIG money.
Special Economic Zones
One of the most important types of infrastructure in the Northern Cape is Special Economic Zones. Generous incentives and rebates make investing in these SEZs attractive, as does the spinoff effect achieved from the clustering of companies in related fields.
The Northern Cape Department of Economic Development and Tourism (DEDaT) has supplied articles for the 2024/25 edition of Northern Cape Business, highlighting the special focus of each of the Namakwa Special Economic Zone (with Vedanta Zinc International as the core tenant), the Upington Industrial Park, the Kathu Industrial Park, the De Aar Logistics Hub and the Boegoebaai Special Economic Zone, Deepwater Port and Green Hydrogen Cluster.
The Northern Cape, as a dry province that relies heavily on agriculture, has adopted a Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle climate change issues. Floods, droughts and fires are becoming more frequent and more severe; planning can at least mitigate the negative outcomes to some extent.
Other support for agriculture will come in the form of infrastructure at the Upington Industrial Park, which will act as a services centre for road, rail and air transport, agriculture, agro-processing and manufacturing.
Farmers and agro-processors are increasingly drawing attention to the need for good roads for the delivery of their products to market and they will be hoping that these parks will help to provide the necessary infrastructure.
In a similar vein, the Namakwa SEZ in Aggeneys will become an industrial cluster for mining and agriculture services, beneficiation and manufacturing.
The Boegoebaai Port and Green Hydrogen Cluster has the potential to be transformative, especially as it might signal a real and significant step towards the establishment of a green hydrogen market in South Africa, and therefore a step towards a cleaner, greener energy environment.
Roads
National roads agency SANRAL has taken over responsibility for several “strategic” roads that used to fall under the provincial government. This handover happened in 2023 and takes SANRAL’s responsibility in the province to 4 409km.
SANRAL announced a R14-billion three-year plan for the province’s roads in the same year, covering maintenance and improvements.
The N14 highway is an important element of the infrastructure of the province. Also known as the Industrial Development Corridor and passing through the Kathu Industrial Park, the N14 runs from Springbok to Pretoria, crossing the Orange River at Upington and providing the main connection between the various existing and proposed industrial parks and SEZs in the province.
SANRAL’s most recent work on the N14 involves a R60-million upgrading of three intersections between Olifantshoek and Kathu. This included increasing the size of roundabouts to allow for wider turning circles and improved traffic flow. This was in response to growing numbers of heavy vehicles passing through the Kathu South circle every day.
The following roads-related projects also serve to provide employment opportunities: Valazonke Projects, a labour-intensive programme to fix potholes; Welisizwe Programme, construction of rural bridges; S’hamba Sonke Projects, road maintenance on secondary and rural roads.
The Operation Vala Zonke programme had fixed 23 334 potholes at the time of the Premier’s State of the Province in February 2024. In addition, a pothole-fixing programme forms part of the curriculum of the staff taken on by the newly established Northern Cape Construction Company. In the course of studying for a Road Construction Level 3 learnership offered by the Construction Education & Training Authority (CETA), the group’s pothole repairs made a difference to the state of the local roads.
Water
The Vaal Gamagara Water Supply Scheme (VGWSS) was originally built to supply water to the semi-arid areas of Kalagadi. It has been expanded to supply to the Dikgatlong, Tsantsabane, Gamagara and Joe Morolong municipalities and nearby mines and farmers.
Water infrastructure is being installed where it is needed most. GIC engineers laying pipes in Kathu. Credit: GIC
The first phase of an upgrading and replacement project of a 75 km between Roscoe and Blackrock has been completed, benefiting about 6 000 households, mines, municipalities, farmers and Transnet. However, the VGWSS has struggled to keep up with demand.
Minerals Council South Africa reports that more than 20 mining companies are paying a premium compared to other users for water in the scheme towards a capital-raising fee to pay for the second phase of the VGWSS.
So far R268-million has been raised from the premium and it is ringfenced for the second phase of the pipeline upgrades, which includes upgrading the 260 km pipeline between the Vaal River extraction point and Roscoe near Kathu.
The Northern Cape’s biggest town and provincial capital, Kimberley, has been facing infrastructure challenges for some time, particularly regarding water provision.
National Treasury has approved funding of R2.5-billion through its Budget Facility for Infrastructure (BFI) for the Sol Plaatje Municipality to repair and upgrade water infrastructure and to improve water quality.
At the 2024 edition of the Hotel and Hospitality Expo Africa, held from June 11-13 at the Sandton Convention Centre in Johannesburg, transformative action and innovation took centre stage, redefining hospitality across the continent. Featuring a diverse line-up of speakers and discussions, the Expo highlighted the importance of sustainability, technology, and local innovation in shaping the future of African hospitality, reaffirming it as the premier platform for driving growth and excellence in the sector.
“The Hotel and Hospitality Expo Africa connected brands and decision-makers, proving once again that it’s so important to create a space where industry leaders can share knowledge and prioritise important topics such as sustainability,” said Margaret Peters, Event Manager at dmg events.
Sustainability was one of the central conversation points at the event, unpacking the importance of sustainability in hospitality and its influence on decision-making and strategy. As a recent article in Southern and East African Tourism Update, emphasised, ‘consumers are travelling more thoughtfully and making conscious choices across the entire travel experience.’
Another focal point of the show was on the power of Small, Medium & Micro Enterprises (SMMEs) to drive innovation and propel the hospitality industry forward. Returning for its third year, the Enterprise Development Pavilion, sponsored by the Johannesburg Convention Centre, provided a dedicated space for SMMEs to showcase their cutting-edge products and services. “This platform links emerging businesses, especially black-owned and women-owned enterprises, with key industry buyers, providing valuable exposure and market access. Through this initiative, we empower these businesses to flourish and shape the dynamic future of hospitality,” said Thandubuhle Mgudlwa, Chief Executive Officer, The Johannesburg Tourism Company.
By supporting emerging businesses, particularly those black-owned and women-owned, we actively contribute to economic development and job creation. This creates a ripple effect, leading to a more progressive and prosperous industry for everyone – stakeholders, partners, customers, and the entire community.
On day one of Hotel and Hospitality Expo Africa 2024, the opening keynote address on ‘Exploring the changing landscape of hospitality in Africa’ featured Jeff Blackbeard, Director of Sectors and Markets, Moore Global. As Africa is set to be the world’s second-fastest growing region in 2024 for the travel and tourism market, Blackbeard’s presentation looked at the trends, sustainability and technological transformations needed to ensure Africa becomes a vibrant international destination.
Unpacking some of the core findings from dmg events and Moore Global’s African Hospitality Confidence Index in the presentation, Blackbeard said: “There is confidence in the sector, and as the European market shows confident growth, this will filter into the African market as well. There’s a lot of confidence in the high-end market and there remains significant interest travelling into the Africa region, particularly South Africa.”
Also on day one was a panel discussion on ‘Unlocking opportunities – City destination marketing in Southern Africa’ with Lee-Anne Singer, Marketing and Sales Director at the Singer Group, and Chairperson of FEDHASA Cape, as the moderator, and Mike Vroom, Chief Operating Officer at Newmark Hotels, Reservations and Lodges; Mark Wernich, Cluster General Manager at Raj Cape Town; Thandubuhle Mgudlwa, Chief Executive Officer at the Johannesburg Tourism Company; Monika Iuel, Chief Tourism Officer at Wesgro; and Bronwen Auret, Chief Quality Assurance Officer and Acting Chief Marketing Officer at South African Tourism.
This was bolstered by two fireside chats on ‘Future living – adapting products to anticipate changing guest demand’, and ‘Sustainability – Journey to tomorrow blending purpose and profit’. The latter conversation was moderated by Brett Hendricks, Chief Executive Officer at Motsamayi Tourism Group, and had Gavin Ferreira, Concession General Manager at Kruger Shalati; and Andrea Kleainloog, Partner at Hesse Kleinloog, discussing sustainable tourism. The conversation centred around the bold investment into the Kruger Shalati train in the Kruger National Park during the pandemic and the commitment and purpose that led to its resounding success.
“You must partner with operational sustainability and understand how your ideas are going to play out over the long term. We prioritised sustainability on multiple levels from employment to environmental impact,” said Ferreira. He argued that it was possible to create a more people-centric approach to environmental conservation that has a lasting impact.
Also taking place on day one were panel discussions asking ‘Can sustainability and luxury co-exist?’; how companies can go about ‘Embracing timeless authentic design with innovation – blending aesthetics and functionality’; talking about ‘Pricing strategies and channels – boosting revenue and maximising occupancy’; and an exclusive interview focusing on thinking global while acting local featuring Chris Browne, Owner and Creative Director of Fox Browne Creative.
Day two of the event focused on the overarching theme of technology and the important role it plays in reimagining experiences, personalising guest interactions, and transforming the shape of the hospitality sector. The rise of solutions such as artificial intelligence (AI) and automation have the potential to comprehensively reimagine travel, both in Africa and abroad.
The panel discussion ‘The digital era -striking the balance between embracing AI vs. safeguarding your guests’ privacy and data’ saw Khaya Mbanga, Digital Head of Advisory at BDO South Africa, take on this topic with insightful commentary. The key takeaways from the presentation included the need to integrate the human touch with technology, how to improve business performance with AI, and what hoteliers need to know about Google and Yahoo email authentication.
Other events hosted on day two included: ‘Elevating guest experiences through personalisation’ and how important it is to unlock cultural personalisation; ‘Procurement 4.0 – streamlining supply chain optimisation’; ‘Enhancing synergies between owners and operators’; and a case study looking at how the Internet of Things (IoT) and AI can change the future of energy management within the sector.
Closing the events for day two was a deeply insightful keynote address focused on ‘Launching your culinary voyage – a blueprint for entry into the F&B industry’ hosted by Coo Pillay – director of F&B Protea Hotel by Marriot Johannesburg Wanderers.
“Chefs today aren’t just cooks, we’re businesspeople. We need business acumen and entrepreneurial skills balanced with skills and capability. It is so important for chefs to cultivate a deep passion for your food, your creativity and your culinary excellence,” he said. He went on to unpack some of the key trends to look out for that included plant-based foods, sustainability, and global flavours. “There’s a growing demand for alternative proteins and eco-friendly practices alongside cultural influences for South African cuisine,” he added.
On day three, the core themes were around labour shortages and talent retention. There is a need to bridge the gap and find ways of tapping into skills opportunities as well as capturing the attention of Gen Z. The day also looked at healthy eating, locally-sourced quality ingredients, and experiential dining. Discussions that took place included ‘How hospitality can use design thinking’; ‘Paving the way for an engaged workforce’; ‘Becoming an incredible employer and solving the unemployment crisis – what steps are being put in place to build a diverse workforce’; homegrown culinary innovation’ and ‘Embracing the future of hospitality and beyond.’
The fireside chat moderated by Lee-Ann Bac, Director of BDO South Africa and attended by Hamza Farooqui, Founder and CEO of Millat Investment; Ram Lokan, Principal at Kasada Capital Management; and JS Anand, Founder and Owner of Leva Hotels, Dubai, unpacked the theme of ‘Investment – the African hospitality industry’. The speakers discussed the challenges and opportunities in the South African hospitality industry, including the demand for mid-scale hotels and the importance of ESG. They shared their experiences in scaling up hotels and highlighted the importance of building relationships with global brands while prioritising local innovation.
There should be a push towards local products, local technology and local human capital,” said Anand. “You can be a leader in your sector if you have quality people and invest in your human capital. The culture of the company starts at the top.”
“With over 3,632 attendees and 85 exhibitors recorded at this year’s event, the Hotel & Hospitality Expo Africa will continue to be one of the most important events in the hotel and hospitality sector’s calendar next year, offering delegates an exceptional array of industry-specific experiences,” Peters concluded.
For more information on the Hotel & Hospitality Expo Africa and to download the latest Hospitality Confidence Index visit www.thehotelshowafrica.com.
In May 1994, Nelson Mandela was unanimously elected as South Africa’s first democratic president by the National Assembly, with Thabo Mbeki and FW de Klerk as deputy presidents.
The principal of the National School of Government (NSG), Professor Busani Ngcaweni, says despite the many challenges facing the public service, public administration “is on an upward trajectory”.
As the country moves towards 30 years of democracy, Ngcaweni notes that despite some negative public sentiment on its efficacy, the public service has evolved a lot over the past 29 years. In the early years of democracy, government had a mammoth task of putting in place an inclusive public service to serve all South Africans, including setting up democratic institutions.
Thirty years into democracy, what does the future hold for the public service?
The journey
Ngcaweni describes the first public service, under former President Nelson Mandela, as “characterised by phenomenal growth and achievement”, adding that it was an intense period with rapid transformation. “We had to transform the character of the public service to serve more citizens. We had to transform and create one administration.” He says the second generation (from 2008 to 2004) in public administration was that of both elected and appointed officials who worked to consolidate the gains of the first administration.
Government, through public servants, worked hard to produce programmes that continue to benefit South Africans. “So, for example, during that first 10 years of democracy, you see the consolidation and expansion of the social security system. They did not hire consulting firms to create that system. It was created by public administrators,” he adds.
It was during this time that the country hosted major conferences, such as the World Summit on Sustainable Development, the Organisation of African Unity (OAU) conference that led to the transformation of the then OAU into the African Union and the World Racism Conference.
“This redefined South Africa in the eyes of the global community and, of course, there were laws that were legislated and implemented such as the Employment Equity Act (Act 55 of 1998) and Black Economic Empowerment and we were beginning to see a major growth as well in terms of black people who were working formally in the labour market,” he says.
Highlights from the third administration, led by former President Thabo Mbeki, include preparations for the country to host the 2010 FIFA Soccer World Cup – backed by a growing economy. Public servants continued to offer innovative ways of delivering service to South Africans.
On 16 June 1999, Thabo Mbeki was sworn in as South Africa’s second post-apartheid president. Mbeki appointed Jacob Zuma as deputy president.
The fourth administration, under former President Jacob Zuma’s leadership, saw the World Cup being hosted on African soil for the first time. “This World Cup was prepared for by public servants. They worked on it, set up new institutions like the [National] Planning Commission and set up departments like the [Department of Performance] Monitoring and Evaluation,” adds Ngcaweni.
Stumbling block
The global financial crisis in 2008 harmed the country’s economy. “There was a major reversal when we entered the period of care and maintenance for most of the problems of government.”
The fifth administration continued with care and maintenance and there “was a kind of turmoil in public administration during that period”.
“We ended up having State Capture and we had instability in many institutions of state and that took away the ability of public administrators to perform diligently.
“But there were still some good things that were happening, like Operation Phakisa during that period but the focus just changed, there was major disruption in terms of people being focused and we didn’t do as much to recover the lost ground in terms of the economy,” says Ngcaweni.
In 2009, Jacob Zuma was sworn in as president of South Africa. Zuma served as president from 2009 to 2018. In February 2018, he offered his resignation.
An initiative of government, Operation Phakisa was designed to fast-track the implementation of solutions to critical development issues highlighted in the country’s National Development Plan (NDP). The NDP guides all government policy formulation and implementation.
The sixth administration is about rebuilding.
Professionalisation of public service
Ngcaweni’s assessment of the public service comes on the heels of the NSG having celebrated a decade of existence in October 2023. The milestone comes after the approval of the national framework towards the professionalisation of the public service.
In 2020/21, the NSG trained 12 000 people, today we are training 85 000 people and that change is because there is a national movement to build state capacity and everyone in the public service must return to school,” says Ngcaweni.
He reiterated the importance of continuous learning among public servants. “Public servants must see themselves as pilots and cabin crew. For you to retain your licence as a crew member or to be in the cockpit, you must constantly return to the simulator because flight conditions are changing all the time.”
He notes that there are some aspects of the national framework towards the professionalisation of the public service that require the amendment of legislation. “Three pieces of legislation are currently in parliament for amendment to give effect to the framework – the Public Service Commission Bill, the Public Administration Management Amendment Bill and the Public Service Amendment Bill.”
Ethics and good governance
On what constitutes good governance, Ngcaweni says, “It is about doing the right thing that serves the public even when no-one is watching you. It must have an impact on those you are serving.”
He adds that it is unethical for public servants to fail to deliver services when they have the means and resources. He is of the view that ethics can be taught and has emphasised the need for a national campaign.
President Cyril Ramaphosa was sworn in as president the day after Zuma resigned. He has served the fifth and current administration since February 2018.
The road ahead
Thirty years into democracy, what does the future hold for the public service? Ngcaweni urges public servants to use available information like the Census 2022 results to reflect on what has been achieved since 1994 and what needs to be done. The bigger question is whether we will be able to sustain the momentum as public servants.
“We cannot continue to bask in the glory of those who have achieved what is contained in the Census [2022 report] and not think about what we, as a generation of public administrators, will achieve,” he concludes.
City leadership had a successful investment and destination promotion meeting with Presidents and Chief Executive Officers from various organizations in Los Angeles, USA, as part of the reSURGEnce Conference activations.
Los Angeles-based businesses in the United States of America have expressed confidence in eThekwini Municipality’s value-proposition aimed at attracting investment into the City across various sectors.
This comes after the City’s Economic Development and Planning Chairperson Councillor Thembo Ntuli led the government delegation, including eThekwini City Manager Musa Mbhele and Head of Catalytic Projects, George Mohlakoana, during a dinner engagement.
The engagement was attended by over 30 Presidents and Chief Executive Officers from various corporate organisations in Los Angeles.
Business and city leaders agreed to collaborate on a number of projects in sectors that included property development, health, artificial intelligence and arts.
Reflecting on deliberations and resolutions of the engagement, Councillor Ntuli said: “This was a highly successful business meeting with some of the most successful entrepreneurs in USA. The business community in Los Angeles is eager to invest in Durban and have a footprint in our City. As government, we will do everything to support them.”
Mbhele said the engagement enabled the City and business leaders in Los Angeles to share strategies and develop a common plan of action.
“I am humbled and excited about the future prospects of our City. The presentations that have been made are exactly what we came to Los Angeles for. We will embark on further discussions with the business leaders as we continue to reach out to the rest of the world and the African continent to attract investors into eThekwini,” said Mbhele.
The City delegation is in USA as part of an aggressive drive to attract investors and position eThekwini as a serious economic player in the world.
The meeting with business leaders in Los Angeles was also a platform for the City to discuss the reSURGEnce Conference taking place at Inkosi Albert Luthuli International Convention Centre (Durban ICC) from 17 to 21 July 2024.
The reSURGEnce Conference is a global business event aimed at highlighting the status of businesses in New York, Africa, America, and globally. It celebrates and promotes successful entrepreneurs within these communities while providing critical resources and support for those who need them most.
This conference offers an unparalleled opportunity to discuss ways that can strengthen local economies, create jobs and close racial wealth gaps. Under the theme “Moving the needle forward towards economic emancipation” this year’s conference seeks to establish trade relations and progressive investment talks between government and business on small business development and opening corridors of trade between Africa and the USA.
Critical areas of business collaboration are particularly focussed on the following sectors:
• Trade and Investment • Destination Promotion and Tourism • Meetings, Incentives, Conferences and Events • Promotion of Arts and Culture • Entrepreneurship, Education and Training • Export opportunities including Agro-processing, Citrus and Natural Health-related products.
For many rural communities, the challenge of freedom of movement between areas or travel to-and-from regional economic centre is a common issue. The lack of substantial infrastructure development is often the primary reason for communities becoming isolated and young people having to migrate to urban areas in search for better opportunities.
In order to address some of these challenges within its area of influence, Anglo American’s Kumba Iron Ore Sishen Mine, has completed construction upgrades to the Klein Neira – Batlharos Road, situated in Kuruman.
The scope of work carried out on the Klein Neira – Batlharos passage included the upgrading of the road from a gravel to a double-sealed surface and installing multiple stormwater management channels along the 6.4km route. This project is part of the broader work carried out in 2022 on the greater Churchill Road, which spans over 10 km, at a cost of R44-million.
George Benjamin, Corporate Affairs and Social Performance Manager at Sishen Mine, outlines the motivation behind the upgrade: “Upgrading this road was a priority for us. We recognised how it would significantly contribute to the freedom of movement of the surrounding communities. As the proud project founder, our objective is to bring development to our communities and help them thrive. We are very pleased with how the project has turned out and the positive impact it will have on our people’s lives.”
During the construction period, a total of 54 temporary jobs were created as a result of the project. Maletsatsi Manhe, Manager: Roads and Stormwater at Ga-Segonyana Local Municipality expressed positive sentiments about the importance of the project.
He said, “The access link road upgrade was identified as a priority by the community during the February 2014/15 IDP roadshow. The main objective is to link Joe Morolong (Churchill and Batlharos) for easy access to the mines, healthcare facilities and surrounding areas. Also, the goal is to improve road conditions as stated on the Roads and Stormwater Master plan.
“Kumba Iron Ore is one of the mining houses that has supported Ga-Segonyana Local Municipality through its Social and Labour Plan over the years. Such support assists the Municipality in reaching community target requests, as the equitable share and the grants are not sufficient to cover all the needs. We are thankful to Sishen Mine for supporting and partnering with us.”
George Benjamin with the Sishen Mine Corporate Affairs team.
The Township Economies Conference and Expo is set to shine a spotlight on the substantial impact and untapped potential of South Africa’s township economy. As the backbone of local commerce, township businesses play a critical role in driving economic growth and community development.
Recent studies estimate that South Africa’s township economy is worth approximately R100-billion annually, highlighting its significant contribution to the national GDP. Townships, home to millions of South Africans, are bustling hubs of entrepreneurial activity and innovation. From informal traders and small-scale manufacturers to service providers and tech start-ups, township businesses are a vibrant and essential part of the country’s economic fabric.
Key highlights:
Economic Contribution: Township businesses contribute significantly to job creation, with millions of South Africans relying on these enterprises for their livelihoods. The informal sector alone employs around 2.5 million people.
Market Size: The purchasing power within townships is substantial, with estimates suggesting a consumer market worth billions. This presents a lucrative opportunity for businesses and investors to engage with a rapidly growing market.
Innovation and Resilience: Despite facing numerous challenges, township entrepreneurs exhibit remarkable resilience and creativity, often developing innovative solutions tailored to their local contexts.
Government and Private Sector Support: Increasingly, there is recognition of the need to support township economies through targeted policies, investment, and infrastructure development. Initiatives aimed at improving access to finance, training, and market access are gaining momentum.
“The township economy is a vital and dynamic component of South Africa’s overall economic landscape. Understanding its size and potential is crucial for driving inclusive growth and development,” said Liz Hart, Managing Director of the Township Economies Conference & Expo. “Our conference and expo aim to bring together stakeholders to discuss strategies for unlocking this potential and ensuring sustainable economic empowerment for township communities. The figures speak for themselves — South Africa’s township economy is a powerhouse of opportunity. By fostering an environment that supports these businesses, we can spur innovation, create jobs, and uplift communities.”
Turbines on hills of Roggeveld Wind Farm. Credit: Roggeveld Wind
A wide range of investments across several sectors and by public and private entities is an indication that the Northern Cape is on a growth path.
In his 2024 State of the Province Address, Premier Zamani Saul noted significant employment increases in agriculture, energy and mining and said that the province’s GDP had advanced in the five-year term of office of the provincial administration from R119-billion to R148-billion. The bulk of this growth was attributed to the mining sector, via strategic investments in renewable energy and generally good global commodity prices.
Renewable energy and mining are the two sectors that have been making highly visible and significant investments. These include the giant wind projects such as the Roggeveld Wind Farm (147MW) and the Loeriesfontein Wind Farm (140MW) and solar projects like the newly announced Mooi Plaats project near Noupoort.
The province’s vast iron-ore mines continue to produce huge quantities of material, subject only to the capacity of the rail network run by Transnet to deliver what is produced to the country’s ports. Minerals Council South Africa, the industry’s employer organisation, estimates that the opportunity cost to the minerals sector of bad transport logistics in 2022 was about R50-billion. Existing mining enterprises such as the iron-ore and manganese operations of Kumba Iron Ore and Assmang have been joined by Indian and Australian miners looking for zinc and copper, vital ingredients of the transition to a cleaner energy future. Vedanta Zinc International is investing heavily at Aggenenys (the Gamsberg project) while Copper 360 and Orion Minerals are mining between Springbok and Prieska. Afrimat has bought new Northern Cape mines as part of its expansion policy.
The other sectors where growth is easy to spot are public infrastructure, education and radio astronomy through the Square Kilometre Array (SKA) radio astronomy project. Infrastructure and education are the subject of separate articles in this journal and the SKA has for some years now been steadily building towards full capacity. It is a globally significant scientific project that is already having an impact on lives in Carnarvon, where mathematics teachers are funded and through the Sol Plaatje University where data scientist students are dreaming dreams that were unheard of just a few years ago for residents of the Northern Cape.
Astronomy is changing lives in the Northern Cape. Credit: NCTA
But economic indicators at town level are perhaps the best illustrations of growth tendencies. The revival of a precast concrete factory in De Aar is important for the region’s economic prospects, not just for the railway sleepers that Colossal Concrete is going to make there on contract, but for the potential that it holds for the province’s builders and for renewable energy contractors and manufacturers.
Similarly, the fact that home-grown hotel group Country Hotels has three properties in each of the towns of Kuruman and Pofadder points to an economy where things are happening. With ten other hotels, inns and lodges in the province and with a focus on the corporate market, the hotel group’s growing footprint counts as a good bellweather for the state of business in the Northern Cape.
Railway sleepers are again being made in De Aar. Credit: Colossal Concrete
Resilience
The Northern Cape, as a dry province that relies heavily on agriculture, has adopted a Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle climate change issues. Floods, droughts and fires are becoming more frequent and more severe; planning can at least mitigate the negative outcomes to some extent.
Farmers in the Northern Cape have learnt to be resilient over the years and there are certain niche products that thrive in the mostly dry landscape. One of these, rooibos, has not only secured an internationally recognised Geographical Indication (GI), but is also enhancing its international market share. Red espresso is now a “thing” in some of the trendy capitals of the world.
Another hot beverage made in the Northern Cape could follow rooibos onto the world stage. A variety of the mesquite tree apparently has seedpods that can produce something resembling coffee without the side effects of caffeine. This is according to an article on IOL by Sarene Kloren. Because the tree is an invasive alien, it would be in everyone’s interests if mesquite coffee became popular. The Coetzee brothers of Prieska have been making MannaBrew’s Mesquite Superfood Coffee since 2020 and they are harvesting between 50 and 60 tons annually. Pods are hand sorted by up to 1 000 seasonal workers and the Coetzees are hoping the health benefits of their brew will catch on.
Credit: Raisins SA
Other support for agriculture will come in the form of infrastructure at the Upington Industrial Park, which will act as a services centre for road, rail and air transport, agriculture, agro-processing and manufacturing.
Farmers and agro-processors are increasingly drawing attention to the need for good roads for the delivery of their products to market and they will be hoping that parks like UIP will help to provide the necessary infrastructure.
One of the most important types of infrastructure in the Northern Cape is Special Economic Zones, each of which has its own focus sectors and each of which is being developed by a combination of public and private investment. At various stages of implementation and planning, the various SEZs are the Kathu Industrial Park, the Upington Industrial Park, the Namakwa Special Economic Zone in Aggeneys (intended as industrial cluster for mining and agriculture services, beneficiation and manufacturing with Vedanta Zinc International as the core tenant) and the Boegoebaai Port and Green Hydrogen Cluster.
Struandale Engine Plant. Credit: Ford Motor Company
By John Young
Ford Motor Company started making cars in what was Port Elizabeth (now Gqeberha) in 1924. That company remains a pillar of the automotive sector in a province that exports more than half the cars that South Africa makes.
The other long-time original equipment manufacturers (OEMs) are Volkswagen South Africa, Mercedes-Benz South Africa and Isuzu, which started life as General Motors in 1926, becoming the city’s second auto manufacturer. VWSA began as SAMAD in Kariega (Uitenhage) in 1949 and the first East London assembly undertaken by Mercedes-Benz South Africa started in 1954.
These marques have recently been joined by Chinese OEM FAW and the Stellantis Group, which will start assembling the Peugeot Landtrek at the Coega SEZ in 2026.
The shift to renewable energy which is happening across the world can be seen very clearly on the hills of the Eastern Cape, which has rapidly earned itself the tile of the “Wind Province”. Other forms of green power and battery storage are being actively explored, and this is the subject of a Special Feature elsewhere in this journal.
The many new wind-power plants that the province now hosts bring power, but they also bring employment and opportunities for local communities where the wind farms are sited.
Turbines on hills of Roggeveld Wind Farm. Credit: Roggeveld Wind
The province’s most recent wind-power investment will see three 110MW facilities constructed in the Kouga Local Municipality. The Impofu wind farms will supply energy to Sasol and Air Liquide in Mpumalanga. Enel Green Power and Red Cap are building the R9-billion project after a lengthy environmental and public engagement process with about 60 landowners, including the Reebok Rant Workers Trust, a dairy operation near Oyster Bay.
Andreas Brand, CEO of Mercedes-Benz South Africa, inspects the company’s rooftop solar installation. Credit: Mercedes-Benz South Africa
The automotive industry is also increasingly playing a role in the energy transition, both in terms of powering plants’ operations but also in producing electric vehicles. East London-based Mercedes-Benz South Africa (MBSA) is working to reduce its carbon footprint at its manufacturing plant. The second phase of the company’s solar PV plan will see 22 847 panels bringing the combined total up to 26 539, an array capable of providing 14.6MW. Over the course of a year, this installation should contribute about 20% of the plant’s consumption.
Volkswagen has installed 3 136 solar photovoltaic panels at its Kariega plant which will produce an estimated 2 500MWh at full capacity. In addition, Volkswagen is building a wastewater recycling facility, replacing alien plants at its premises and planting a carbon bank of nearly 5 000 spekboom cuttings. Ford’s Struandale Engine Plant has been a winner of the SJM Flex Environmental Award for excellence in environmental management with its improved production methods leading to reductions in water and electrical consumption. Other factors were rainwater harvesting and recycling of 97% of waste produced at the factory.
A R22-million investment in a solar energy plant is paying off for Montego Pet Nutrition in Graaff-Reinet. The company reported a 300-ton reduction in CO2 emissions in a single year, the equivalent of planting about 9 000 trees to offset emissions. The nine-month solar project happened soon after a R70-million expansion project which increased the factory’s overall production by 30%.
Credit: CCBSA
Another of the Eastern Cape’s biggest brands is putting a great deal of time and effort into water conservation. When the dam levels feeding the Nelson Mandela Bay Metropolitan area reached critical levels, Coca-Cola Beverages South Africa (CCBSA) mobilised a comprehensive response.
Working together with other entities, CCBSA delivered water, JoJo Tanks and water wheelers to communities suffering shortages but also offered a longer-term solution in the form of a groundwater harvesting and treatment system known as Coke Villes.
Infrastructure
The province’s two Special Economic Zones (SEZs) have been the focus of investment to prepare them to host an array of enterprises. Dedicated sections of the SEZs provide for a cluster approach, something which automotive suppliers and logistics firms have taken advantage of.
In the SOPA, Premier Mabuyane reported that the East London Industrial Development Zone (ELIDZ) exported over R3-billion worth of products in a 12-month period. In the five years to 2024, the ELIDZ signed up 24 investors with an investment value of R5.7-billion, primarily in the automotive, agro-processing and general manufacturing sectors, but he noted that renewable energy sector investment is rising fast.
Within the Coega SEZ, just north of the city of Gqeberha, the Port of Ngqura was primarily designed as a container terminal but additional capabilities are being added. The Coega Development Corporation (CDC) has been tasked with finding a developer for a new Liquid Bulk Terminal and for a new manganese terminal. Transnet has agreed that the tank farm and manganese storage facility at the Port of Gqeberha is to be moved to the Port of Ngqura.
The provincial government has identified six “mega” infrastructure projects on which to focus: N2 Wild Coast Highway, Mzimvubu Water Project, Eastern Cape Transnet initiatives, N2 Nodal Development, undersea cables and the Wild Coast SEZ.
In addition, Premier Mabuyane revealed in the 2024 SOPA what he expects will be the priorities of the next provincial administration, the seventh since democracy was ushered in in 1994. The Eastern Cape is one of the provinces in South Africa where the African National Congress (ANC) is most confident of returning as the governing party.
The Premier listed the priorities as follows: biofuels, cannabis, oceans economy, Bhisho precinct, Bulembu airport for cargo and liquified natural gas.
With three ports and two large airports, the Eastern Cape is well suited to logistics activity.
Port of East London. Credit: TNPA
The massive Msikaba Bridge under construction in the OR Tambo District is on track for completion in 2025. This will transform travel in what used to be the Transkei and open up the Wild Coast for tourism. Work on the Mtentu Bridge in the Alfred Nzo District resumed in December 2023 and is scheduled for completion in 2027. Seven of the roads that lead to these bridges will be upgraded from gravel to tar as part of the broader project.
Both Vodacom and MTN are continuing to invest in telecommunications infrastructure. A project to connect 23 rural villages was completed by Vodacom at a cost of R34-million; a further R71-million will be spent on connecting another 86 villages. MTN allocated R600-million to protect its network and has rolled out an extensive programme of battery and generator support.
A Samsung Innovation Campus has been initiated at Walter Sisulu University. To be run by the Centre for Entrepreneurship Rapid Incubators (CFERI), the campus programme aims to transfer IT skills and help graduates start their own businesses. There will be courses on coding, programming, artificial intelligence and the Internet of Things.
Tourism
Tourism is one of the sectors that was hit hardest by Covid-19. Although times were tough for the “Adventure Province”, there was some good news out of a sector that still retains enormous potential for growth and has been identified by the Eastern Cape Development Corporation (ECDC) as a priority sector.
The ECDC invested R2-million in attracting the TV series Survivor South Africa: Immunity Island and that investment has been shown to pay off both in monetary terms and in showcasing the spectacular Wild Coast to TV audiences. The immediate economic impact of the filming was estimated at R10-million.
The north-eastern segment of the province is the site of a possible future national park, which would bring to five the number of national parks in the province, joining the Addo Elephant, the Camdeboo, Garden Route and Mountain Zebra National Parks. These parks not only look after animals but also protect quite distinct types of vegetation.
Credit: Sibuya Rhino Foundation
If the proposed Grassveld National Park is established high in the mountains above the village of Rhodes and near to the border with Lesotho, it would be South Africa’s 20th. The conservation goal behind the park is to preserve grasslands through agreements with landowners and farmers who would continue to farm the land responsibly. The land of the Batlokoa community is near the famous Naude’s Neck Pass.
As a source of clean water, the area is a hugely important resource and worth preserving for that reason too. The water that falls away from the highest point of this proposed park is described by Andrew Weiss of the WWF as “heading towards the Mzimvubu River and the Indian Ocean” while another small stream at the top of the mountain is destined to join the Orange River in the west.
Weiss also described rock paintings of eland and reedbuck “with the unusual addition of dogs and a fat-tailed sheep”. The Grassveld National Park project of the South African National Botanical Institute (SANBI) has recorded 1 131 species of plant life on the iNaturalist app.
In addition to national parks, the Eastern Cape has 15 provincial nature reserves and a multitude of luxury private game reserves.
The events sector was just about to restart before the Omicron variant put a stop to all travel. This is something the Eastern Cape does well, with the National Arts Festival and a variety of sporting events such as Iron Man being hosted by the province.
Two big new golf events have put the spotlight on the province’s tourism offering, the SDC Championship at St Francis Links (jointly hosted by South Africa’s Sunshine Tour with the DP World Tour) and the Nelson Mandela Bay Championship, an official DP World Challenge Tour event.
Kumba’s iron-ore operations are supporting science education. Credit: SIOC-Community Development Trust
In 2023, Sol Plaatje University in Kimberley celebrated its 10th anniversary. The first student body was all of 124, but enrolment is now over 5 000 as the institution’s offering and reputation has also grown.
Sol Plaatje University (SPU) is named after the great intellectual, writer and advocate for equal rights. One of Plaatje’s books, Native life in South Africa, tells the story in harrowing detail of how black South Africans were thrown off their land as a consequence of the 1913 Land Act. He was also a novelist, a translator and one of the founding members and first Secretary-General of the South African Native National Congress (SANNC), which became the ANC.
With a brand-new university in the province, it was fitting that the Premier elected to lead the province after the elections of 2019 should be Dr Zamani Saul. Already the holder of a PhD in law, two Master’s degrees and a BProc, Dr Saul is studying towards a second PhD. On his watch, education has been a key priority.
Dr Zamani Saul, Premier of the Northern Cape. Credit: Office of the Premier, NC
In his final State of the Province Address in 2024, Dr Saul reported that construction of 19 new schools began during his term of office, eight of which have been completed. R274-million was spent on refurbishment, upgrades and maintenance and 74 schools received sanitation upgrades. Significantly, the Premier stated, “The proportion of persons aged 5-24 who attended an education institution increased from 64.2% to 70.3% in 2022 in the Northern Cape.”
Dr Saul also announced a skills-development and bursary programme to the value of R210-million in partnership with MERSETA. Since 2019, the provincial government’s partnerships with SETAs have benefitted 14 800 young people.
Speaking in the context of bursaries, Dr Saul says, “At the heart of a modern, growing and successful province is education. We won’t be able to modernise the province if we do not place emphasis on the education of our children.”
Steps have been taken to modernise the sector, with tablets loaded with Edu-Kite software being distributed to Grade 12 students in 2023, a Coding and Robotics pilot to be rolled out at 173 schools and another pilot that will see five classrooms around the province converted into cyber labs with modern equipment.
Corporate social investment (CSI) programmes of big solar park and wind farm companies are improving the conditions of educational facilities and giving opportunities where none existed before.
An ECD Centre is supported by Noupoort Wind Farm. Credit: Noupoort Wind Farm
University
At the celebrations surrounding SPU’s 10th anniversary, Kumba Iron Ore and De Beers Group, two of the biggest mining companies active in the province, donated R20-million and R5-million towards the university’s Lesedi La Afrika Fund will support scholarships and social impact projects. The fund has set a target of R100-million.
Qondakele Sompondo, Director for Institutional Advancement at SPU, said the funding would make a significant impact on the lives of the youth of the Northern Cape.
In 2024, representatives from Kolomela Mine, one of Kumba’s properties, were investigating the possibility of SPU setting up a Learning Centre in the small town of Postmasburg. In addition to catering to existing SPU students, the centre will allow residents to attend SPU short-course offerings and participate in SPU’s online Talent Pipeline Programme.
SPU has a staff complement where 60% of its academics have PhDs. The academic programme is housed in four schools: Education; Humanities; Natural and Applied Sciences; Economic and Management Sciences. Bachelor’s degrees are offered in education, science, science in data, ICT, heritage studies, commerce and arts. A diploma in retail business management (three years) and a one-year higher certificate in heritage studies completes the prospectus.
The architecture at Sol Plaatje University is striking. Credit: RV
Skills and TVET colleges
The Northern Cape Urban TVET College comprises three campuses in Kimberley: City Campus, Moremogolo Campus and Phatsimang Campus where teacher training is done. At City Campus, students have access to three departments: business studies, engineering studies and a business unit that organises short courses in partnership with various public and private partners.
The Northern Cape Rural TVET College has campuses at Kathu, Upington, De Aar, Kuruman and Namakwaland. These colleges offer students courses in finance, economics and accounting; engineering; IT and computer science; management; hospitality; marketing; and tourism. NCR TVET College has a variety of part-time programmes and short skills programmes delivered in the form of learnerships, internships or apprenticeships. This enables adults and employed people to study after hours or to do enrichment courses.
The Provincial Government of the Northern Cape runs several skills programmes, including the Artisan Construction Programme, a three-year incubation programme aimed at young people, the Phakamile Mabija Apprenticeship (artisan incubation programme) and the S’hamba Sonke Contractor Development Programme.
Sol Plaatje University is teaching data analytical skills to undergraduates and many of them are moving into the financial sector on graduation. Another area where these skills are in great demand is radio astronomy. One of the world’s great scientific ventures, the Square Kilometre Array (SKA) radio telescope project, has been established near Carnarvon and the amount of data that it will generate is so great that it is difficult to comprehend. Many data analysts will be needed.
Artisan training has also benefitted from the presence of the SKA in Carnarvon. The new technical training centre has trained students as electricians, fitters and turners, in instrumentation, diesel mechanics, in IT and boilermaking, as well as in carpentry, plumbing, bricklaying and welding.
With support of the SKA, Carnarvon High School is the only school in the area offering mathematics and science.
Astronomy is changing lives in the Northern Cape. Credit: NCTA
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The scope of work carried out on the Klein Neira – Batlharos passage included the upgrading of the road from a gravel to a double-sealed surface and installing multiple stormwater management channels along the 6.4km route. This project is part of the broader work carried out in 2022 on the greater Churchill Road, which spans over 10 km, at a cost of R44-million.
