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Green hydrogen comes to Limpopo

Anglo American’s newest truck is not only more powerful than its predecessors, it’s also clean. Credit: Anglo American

Talk about clean energy via green hydrogen has been going on for some years all around the world, but suddenly that talk has turned into serious dialogue between national governments and powerful business interests who really want to do something concrete about creating power in a cleaner, more sustainable way.

In May 2022, talk became action at the Mogalakwena platinum group metals (PGMs) mine in Limpopo when Anglo American unveiled “a prototype of the world’s largest hydrogen-powered mine haul truck designed to operate in everyday mining conditions at its Mogalakwena PGMs mine in South Africa”.

Hydrogen is generated via the electrolysis of water using electricity. If renewable energy is deployed to make the electricity that makes the hydrogen, then that is “green hydrogen”. Hydrogen has a wide range of uses across multiple sectors, from transport to heat generation and power.

Anglo American intends using green hydrogen which it will produce at the mine to feed into its green-hydrogen system, which includes production, fuelling and a haulage system.

The Mogalakwena mine is near Mokopane (formerly Potgietersrus) and south-west of Polokwane, the provincial capital of Limpopo Province.

The 2MW hydrogen-battery hybrid truck generates more power than its diesel predecessor and can carry a 290-ton payload. Forty Anglo trucks will be retrofitted, starting in 2024, and the whole fleet should be green by 2030.

The operating company of the Musina-Makhado Special Economic Zone (MMSEZ) has signed a partnership agreement for green-hydrogen electricity generation with Australian company African Resources Development Energy (ARD Energy). Paladin Hydrogen, a partner of ARD Energy, is using its Tasmanian project as the prototype of coal-to-hydrogen technology that apparently has zero emissions. Once that project reaches sufficient scale, the intention is to deploy the technology to the Makhado coal fields of northern Limpopo.

The Fetakgomo-Tubatse Special Economic Zone (FTSEZ), on the other hand, has plans to turn that area’s platinum group metals to good effect in the energy field. Platinum and iridium are important catalysts in the process which creates hydrogen, so that has become one of the big selling points of the FTSEZ. In July 2022, a delegation from the FTSEZ participated in the UK-RSA partnership mission on Hydrogen Economy Roadmap.

Anglo Platinum’s 75MW solar plant under construction at Mogalakwena could well become the 320MW plant that the company wants it to be, if President Ramaphosa announces the lifting of restrictions on the scale of private generation. He surprised and pleased the business community in 2021 when he lifted the limit on the size of private projects that did not need to apply for licences to 100MW; it’s very likely more red tape will fall away as South Africa’s utility, Eskom, continues to fail to keep the lights on.

With ample wind and sun, a long coastline and 75% of the world’s PGMs, Limpopo and South Africa are well placed to be leaders in the production of green hydrogen.

Hydrogen Valley

The Limpopo Province is one of the three hubs on which a Hydrogen Valley is planned to stretch from the metals-rich Bushveld area through the country’s industrial and commercial heartland to two of the continent’s busiest ports in Richards Bay and Durban.

It is envisaged as a means of kickstarting the hydrogen industry in South Africa. The other two hubs are Johannesburg and Richards Bay. Demand at the Limpopo end of the corridor will be driven by trucks used in the mining industry and along the busy N1 highway. Current users of hydrogen in the Johannesburg area will be expected to switch to green hydrogen and green hydrogen will also be used as feedstock substitution for ethylene production and fuel and as a catalyst for iron and steel, in public buildings and buses. Future private-building demand is expected to grow. At Richards Bay Port there is potential to export green hydrogen and use it as a fuel for port functions. Trucks using the N3 could be another market.

The Hydrogen Valley concept is being researched and developed by a collaboration that includes the Department of Science and Innovation (DSI), the South African National Energy Development Institute (SANEDI), Anglo American, Bambili Energy and ENGIE. A 2021 feasibility report suggests that $4-billion could be added to South Africa’s GDP if the valley were successfully implemented, with an additional tax revenue of about $900-million.

The Department of Science and Innovation has a chief director of hydrogen and energy. The Industrial Development Corporation is mandated by national government to champion the commercialisation of the green hydrogen economy. A hydrogen strategy was compiled for the country as far back as 2008, the National Hydrogen and Fuel Cell Technologies Research, Development and Innovation strategy.

As of 2022, the IDC has invested R15.4-billion in renewable energy in four provinces: 25 projects with a combined capacity of 899.2MW.

Entrepreneur Mashudu Ramano wants his Mitochondria Energy Company to produce 250MW in hydrogen fuel cells per year from 2023. He has found a commercial partner in AVL, an Austrian engineering company, and financial backing from the Industrial Development Corporation and the Development Bank of Southern Africa (DBSA). He wants to operate in Mpumalanga where coal plants will be shutting down in rapid succession over the next few years and where he believes there is sufficient water for the project. Chris Barron ran an extensive interview with Ramano in his “Newsmaker” column in the Sunday Times in April 2021. Ramano says that the South Africa’s export potential in green hydrogen is R1.5-trillion “more than half our GDP”.

Enhancing socio-economic development in Limpopo

Credit: RAL

Roads Agency Limpopo (RAL) is a provincial road infrastructure service-delivery entity mandated to build and maintain the Limpopo provincial road network.

The mandate is aligned with the province’s economic development plan to facilitate access to various facilities that promote socio-economic development. Despite stringent budgetary constraints, the Agency continues to deliver on its mandate for the benefit of the province based on an annual financial allocation used to build and maintain the Limpopo road network through equitable shares (EQs) and the Provincial Roads Management Grant (PRMG).

Given the current demand for quality road infrastructure that far exceeds the available resources in the province, the Agency has managed to channel its limited resources towards supporting the Limpopo province’s key strategic economic pillars, namely the mining, agriculture and tourism sectors.

Leveraging on these three pillars enables the Agency to be an active catalyst for the province’s economic growth and social development. RAL has recently adopted the strategic partnerships approach which seeks to augment the annual fiscus to meet the demand for quality roads. This is in recognition of the entity’s view that building a thriving economy requires concerted efforts from various stakeholders. With the strategic partnership approach, RAL engages the private sector to solicit funds to augment the entity’s annual budget allocation. Through this strategic approach, the entity has over the years raised more than R700-million in funding towards building and expanding Limpopo’s roads network.

Strategic partnerships in the Mining Sector

RAL has several lucrative partnerships within the mining sector, including with Exxaro Resources, which dates back to 2015. The partnership between RAL and Exxaro resulted in the upgrading of road D2001 in the Waterberg District from gravel to tar over a stretch of 9.56 km at an estimated cost of R100-million, which cost was 100% met by Exxaro.

In addition, Exxaro Resources sponsored the upgrading of several roads connecting Ga-Seleka villages to the commercial centre of Lephalale, which was identified as an important project through the Integrated Development Plan of the Lephalale Local Municipality.

Another notable stride made in the strategic partnerships approach was the signing of a Memorandum of Agreement between RAL and eight mining companies operating in the Sekhukhune District for the rehabilitation and building of the new Steelpoort Bridge. The partners believe that the bridge will bring relief to the surrounding communities by facilitating easy movement between Jane Furse, Burgersfort and the mines in and around Steelpoort, among other adjacent areas. A sum of over R80-million was raised to fund the project. Mining companies involved in the project included Rakhoma Mining Resources, Dwarsrivier Chrome Mine, Glencore, Rustenburg Platinum, Samancor Chrome, Booysendal Platinum, Tjate Platinum and Two Rivers Platinum.

Strategic partnerships in the Agricultural Sector

Farming plays a pivotal role in the province’s economy. Farm produce from the province is among the best in the country exported to the rest of the world. Some of the success stories in the agricultural sector were born out of the RAL-ZZ2 partnership, which since 2016 has included road maintenance works on the R521 Pondrift (border post) and Alldays roads. ZZ2 also assisted RAL in maintaining several sections of other strategic and mostly gravel roads in the province including P135/1 (Musina to Pafuri), D1942 (Malaladrift) and D617, which passes through Houtbosdorp from Mooketsi Farm. Most recently, the D2531 near Cloudslands Farm was fixed after it collapsed due to flooding.

In addition, as part of RAL’s strategic road infrastructure intervention, more partnerships will be sought to solicit resources for the maintenance of roads that link to other agricultural produce. As it stands in many places, instead of a truck taking 30 minutes to travel from a farm to the tarred road, it takes more than an hour. This is a situation which calls for all roads related to economic activity to be maintained.

Strategic approach in the Tourism Sector

Limpopo is host to Mapungubwe, a UNESCO World Heritage Site, and two renowned national parks, Marakele National Park and Kruger National Park. The province is also among the most-visited areas in the country due to its scenic nature, which contributes to its uncontested performance statistics in tourism, which is one of its key pillars in economic growth. A

ccordingly, strategic roads leading to critical tourism hotspots need to be of good quality to encourage return visits among tourists. For this reason, RAL continues to engage the tourism sector to find synergies in enhancing access to the sector, in particular, its facilities, with ease.

Strategic Partnership Opportunities

Roads play a major role in connecting all sectors of the economy and enhancing business in the province. RAL endeavours to partner with the various sectors of the economy for improved road infrastructure development. These partnerships are important enablers of quality roads construction through the interface between the private sector and government towards economic development of the province.

For more information, visit www.ral.co.za

Limpopo looks at economic recovery as it hosts Provincial Mining, Energy & Industrialisation Investment Conference

The Limpopo Provincial Government will on 29 to 30 September 2022 host the Limpopo Provincial Mining, Energy & Industrialisation Investment Conference. The event is a follow-up to the initial investment conferences (Limpopo Investment and Mining Conferences) that were held in August and September 2021, respectively. This year’s conference will specifically highlight the wealth of opportunities and innovation expressed in the mining and energy sector and how that shall assist in economic recovery.

Limpopo Premier, Mr. Stanley Chupu Mathabatha and Minister of Mineral Resources & Energy, Mr. Gwede Samson Mantashe will lead this conference to harness on the commitments made in the previous years.

“We are happy and grateful to see investors showing interest in investing in our province. This conference will enhance our strategies towards sustaining and achieving an industrialised inclusive economy, especially when we look at rebuilding our economy,” Mathabatha said.

He added that the conference aims to bring together direct foreign and domestic investments in which to greatly benefit the people of Limpopo. That is, it will aim at adding onto the R250-billion commitment last year by targeting R50-billion in this year.

Said Mathabatha: “In line with the provincial government’s purpose of driving Limpopo’s growth, we are committed to delivering positive economic value to the citizens of the province.”

During the 2021 conference, a significant number of businesses expressed interest in investing in Limpopo despite the global economic challenges that increasingly thinning the economies across the world.

This year, the conference, under the theme “Realising Limpopo’s Investment Potential in Mining and Other Strategic Sectors of the Economy”, will further focus on re-emphasizing Limpopo’s position as one of the three mining capitals in South Africa and a global relevant player in the future mineral space.

Among other objectives, the conference will profile the strength and comparative advantages that Limpopo offers to investors and its trading partners as well as focussing highly on the development. and implementation of the Special Economic Zones in both Fetakgomo/Tubatse and Musina/Makhado.

Limpopo’s strategic position within the country adds immense value to investors who want to benefit from improved access to large markets and this conference aims to bring together the private sector and various industries to address critical success factors for nurturing and supporting industrialization in Limpopo.

The province has a keen interest in further encouraging and optimising private sector investment through the Limpopo Development Plan and the Economic Recovery Plan which hinges on the SEZ programme, with a promise of a long-term imagined inclusive growth.

To find out more about the investment conference, visit www.limpopoinvestmentconference.co.za
Register here

Rustenburg Smelter empowers local female-owned SMME with waste skip truck  

Glencore Rustenburg Smelters Team and Mpho Magano, Founder and Managing Director of Rambait Trading and Enterprises (Pty) Ltd

Fulfilling one of its strategic objectives to contribute to society via local supplier development, Glencore Ferroalloys handed over a waste skip truck and trailer worth over R3-million to Rambait Trading and Enterprises (Pty) Ltd.

Rambait Trading Enterprises (Pty) Ltd specializes in waste management. Their initial focus was only on hazardous waste, however the business also ventured into general scrap waste and recycling. In order to maintain business operations, they were renting a waste skip truck, a trailer as well as a number of skip bins. This came at an exorbitant cost and threatened the growth and sustainability of the business.

With the understating of the important role that local businesses play in the overall success of communities, Rustenburg Smelter awarded the contract to Rambait following a rigorous tender process.

Chief Community and Social Responsibility Officer for Glencore Ferroalloys, Conroy van der Westhuizen, encouraged Rambait Trading Enterprises (Pty) Ltd to maintain the highest safety standards and to keep striving for greatness.

Glencore Ferroalloys, Conroy van der Westhuizen and Mpho Maganano Founder of Rambait Trading Enterprises (Pty) Ltd

“As Glencore, we are passionate about our Enterprise and Supplier Development Programme.It is a strategic imperative for Glencore to lower entry barriers for emerging business enterprises by evaluating candidates that are committed to their own success, the success of Glencore Alloys and uplifting the community and contributing to local economies. Rambait Trading Enterprises has shown impressive tenacity and determination to keep persevering despite life’s challenges over the last 10 years. We are proud as an organisation to offer such a business our support. Best wishes to you, and we look forward to witnessing the business grow to greater heights,” he said.

Following a public tender and rigorous adjudication process, Rustenburg Smelter awarded the business a three year waste management contract which speaks to the smelters’ investment commitment and confidence in the business, as well as the impact that it will make to the local community.

“It is always a pleasure to support and give a head start to businesses that have incredible potential. Rambait Trading Enterprises, your great attitude and willingness to always learn has placed you here today, it is the same attitude that will determine how far you go in life. We want to tell a much bigger story about you one day and marvel at your growth from grassroot level to a bigger business entity. So, continue to commit yourself and you will yield outstanding results. Congratulations once again,” said Enterprise and Supplier Development Superintendent for Glencore Ferroalloys, Charlin Ntuli.

Founder and Managing Director of Rambait Trading and Enterprises (PTY) LTD, Mpho Magano could barely hold back her excitement after receiving the donation.

Founder and Managing Director of Rambait Trading and Enterprises (Pty) Ltd, Mpho Magano

“Thank you so much Glencore for believing in me and my business, it hasn’t been an easy journey but knowing that an organisation such as Glencore stands by you and sees you through has kept me going. I will not stop shouting praises for all that Glencore has done for me. They not only came on board and saw my capabilities, but they have also showed me new possibilities far beyond my current reach,” said Magano.

Through its Enterprise and Supplier Development Programme, Glencore continues to ensure that they empower entrepreneurs with the relevant technical knowledge and helps them acquire assets which will support the growth of their businesses.

 

2023 SMME Virtual Roadshow

Following the unprecedented challenges of 2020-2022, SMMEs will be critical drivers of economic recovery in 2023.

The SMME Roadshow has since its inception in 2014 supported small business by providing a platform to address issues that hinder small business growth and development such as funding and regulatory compliance.

To address the urgent need for SMME support, Global Africa Network initiated a highly successful virtual version of the SMME Roadshow in 2021. With over 1 800 online registrations, the Roadshow focused primarily on access to funding for small businesses, accessing markets, technology for small business, business training, and business support and assistance.

The 2023 SMME Virtual Roadshow, brought to you by Global Africa Network, will again take the form of presentations and collateral hosted on a custom platform. As such, the SMME Virtual Roadshow will be an important driver of economic growth and job creation in 2023.

Why a virtual event?

  • Increased flexibility and access
  • Greater opportunity for interaction
  • Monitoring and recording of attendance and interaction

Small business enablers at the event:

  • Access to funding for start-ups
  • Access to funding for established small businesses
  • Doing business with government
  • Skills and development training
  • Banking for small business
  • Compliance – practical solutions
  • Internet and telecoms solutions for small business
  • Small business success stories

Participation

Attendance will be free of charge, and companies that register will be required to provide relevant information about their business, their objectives, and their requirements.

Register free here

Sponsors, Thought Leaders and Presenters

The 2023 SMME Virtual Roadshow will take the form of an online event targeted at specific needs of the participants, which will vary across levels of development and support
requirements.

The event presents many opportunities for sponsors, thought leaders and presenters to engage with the SMME sector.

Seven Focus Hubs will structure the Roadshow:
  • Access to funding for start-ups
  • Access to funding for established small businesses
  • Doing business with government
  • Skills and development training
  • Banking for small business
  • Compliance – practical solutions
  • Internet and telecoms solutions for small business
  • PLUS: Small business success stories

Delegates will be able to interact with sponsors, thought leaders and presenters.

Download the brochure
For information on sponsorship opportunities, email info@gan.co.za

Sponsors

A regional overview of Mpumalanga Province

Repurposing facilities as part of the Just Transition. The workshops of Komati Power Station are to be turned into a factory for the manufacture of components for containerised mini-grids. Credit: Eskom

Opinion in government and civil society has been turning sharply against fossil fuels for several years. Successive international conferences have been setting global targets for weaning economies off coal and oil, but Russia’s invasion of Ukraine has changed that. Rich countries are bringing coal plants back on stream and nuclear plans have been reactivated.

With Mpumalanga’s economy being so strongly geared towards coal (in mining and for energy generation), this trend has significant implications for regional planning in the short term. More than 80% of South Africa’s coal is currently sourced in Mpumalanga and it is the third-largest coal-producing region in the world.

However, the province is not ‘sitting on its laurels’. Nor is it imagining that it can stop the world. Rather, the Provincial Government of Mpumalanga has established the Mpumalanga Green Cluster Agency to bring together government, academia and industry to create the environment for businesses to develop in a green economy.

The agency has already published a series of market intelligence opportunity briefs to highlight current opportunities for investors, such as: carbon capture, cleaner aviation fuel, energy storage and green hydrogen.

The key working groups show the agency’s focus: sustainable agriculture, circular economy, energy and water. One of the tasks is to transition to a new economy in a way which creates jobs.

The Cluster, an initiative of the Mpumalanga Department of Economic Development and Tourism with the support of GreenCape and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has joined the International Cleantech Network, a group that has 15 000 businesses affiliated to it across the globe.

National utility Eskom is also moving into the new era, partly through a process whereby the entity will be broken into three more competitive units, but more immediately through the announcement in July 2022 of 18 winnings bids from independent power producers (IPPs) for renewable projects on Eskom land, 4 000 ha of which the utility has made available for this first phase. Eskom owns 36 000 ha in the province. A total of 1 800 MW will become available to the grid and it will be cheaper to transmit because the solar or wind plants will be right next to the existing Eskom transmission lines.

Ten coal plants are due to be closed by 2040, with four Mpumalanga plants (Hendrina, Grootvlei, Camden and Komati) first in line.

Eskom is undertaking studies to assess the potential impact on local communities of these closures. Options to get these plants producing energy again include gas, biomass and hydrogen but it is possible they might be used for something quite different. Eskom wants to be a net-zero company by 2050.

Another major player in the energy market in Mpumalanga (and the world), Sasol, has announced plans to start producing 1 200 MW of renewable energy by 2030. An integrated oil, gas and chemicals company with more than 30 000 employees and operations in 31 countries, Sasol runs several plants at Secunda. Products manufactured at the complex include synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary feedstock for synthetic-fuel production is coal, and the plant is in the heart of Mpumalanga’s coalfields.

Sasol regularly spends tens of millions on upgrades and improvements at the complex. The Sasol Synfuels refinery is the only commercial coal-to-liquid fuel plant in the world and constitutes a key component in South Africa’s oil and gas sector.

National government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has seen the investment into this totally new sector of more than R200-billion since 2012 and South Africa is now home to 112 IPPs, whereas just 12 years ago there were fewer than 40 in Sub-Saharan Africa.

The relaxation by national government of the rules regarding setting up a power plant of 100 MW or less is well suited to the requirements of big timber-processing companies such as Sappi and PG Bison and all the large mining concerns that are active in Mpumalanga.

Investment options

Several infrastructure investment projects in the tourism sector have been put forward by the Mpumalanga Economic Growth Agency (MEGA). There is a special focus on BRICS countries and the province was glad to welcome the announcement of a new flight into Kruger Mpumalanga International Airport in 2022 by the tourist division of Lufthansa, Eurowings Discover. The TRILAND partnership with Eswatini and Mozambique is another avenue, as is the collaboration with KwaZulu-Natal, Eswatini, Mozambique and the Seychelles. The latter project is called east3ROUTE Tourism Initiative and proclaims “Experience, Adventure, Scenery and Trade” between the participating provinces and countries.

MEGA is an equity investor in a number of Mpumalanga concerns, including Afrimat, Highveld Fruit Packers, Kangwane Anthracite, Loopspruit Winery and Tekwane Lemon Farm.

Timber firm and board manufacturer PG Bison has been investing heavily in its Mpumalanga assets. Credit: PG Bison

In the Nkangala District Municipality, a public-private partnership is due to deliver a hotel and conference centre in the town of Middelburg in the Steve Tshwete Local Municipality.

It may seem ironic that R350-million is to be spent on a Radisson-branded hotel in the aftermath of Covid-19 but conferences and tourism will return. Elsewhere, mining and timber companies are making large investments in increased production or in extending the life of mines.

A major concern for provincial planners is to diversify the economy and to grow the manufacturing sector.

The Mpumalanga Economic Growth and Development Path (MEGDP) identifies beneficiation, agro-processing and the development of value chains as priorities.

Various industrial parks are planned which will focus on agriculture and forestry, mining and metals and petrochemicals. An International Fresh Produce Market in Nelspruit and the planned Nkomazi SEZ (Special Economic Zone) are other priorities.

Steel and associated manufacturing remains one of the province’s strong suits and Mpumalanga has rich and varied mineral resources and fertile soil that support diverse farming operations, agro-processing and forestry. The province also hosts large companies in the manufacturing sector such as Middelburg Ferrochrome and the Manganese Metal Company.

The province’s rich agricultural produce is used by companies such as McCain, Nestlé and PepsiCo and there are also pulp and paper plants (Sappi and Mondi), with PG Bison set to start producing more than 1000 m³/d per annum at its Mkhondo particleboard plant after two investment injections of R600-million (on a press and forming line) and R560-million (on a front-end dryer).

York Timbers is another forestry company and the sugar mills and refinery of RCL Foods (formerly TSB Sugar) along with fertiliser facilities and textile manufacturing concerns are all contributors to the provincial economy.

The southern half of the eastern limb of the platinum-rich Bushveld Igneous Complex runs south towards the towns of Lydenburg and Machadodorp. Deposits of chromite, magnetite and vanadium in this area are the basis of the ferro-alloy complex in Witbank-Middelburg and Lydenburg.

The town of eMalahleni is the centre of the coal industry. Other minerals found in the province include gold, platinum-group minerals, chromite, zinc, cobalt, copper, iron and manganese.

Middelburg is home to Columbus Stainless, South Africa’s only producer of stainless steel, and several big engineering works. It is about 130km from Pretoria and less than three hours’ drive from the Malelane Gate of the Kruger National Park.

Visits to game reserves and nature reserves have shown signs of recovery from the lockdowns associated with Covid-19 but for a province where 7% of GDP is derived from tourism, the recovery can’t come soon enough.

The Kruger National Park remains the province’s most visited asset but the decision by UNESCO to afford World Heritage Site status to the Makhonjwa Mountains near Barberton will boost geological tourism to the province and supports the efforts of the province to diversify its offerings. Major projects to improve tourist experiences are underway at the Graskop Gorge (where a transparent lift takes tourists into the depths of the gorge), a Skywalk is to be built at God’s Window and a cable car is planned for Three Rondavels.

The international body’s decision has also had the effect of expanding the curriculum at the relatively new University of Mpumalanga. On the basis of the UNESCO ruling, UMP has a new offering in geology as part of a BSc degree.

Read or download the 2022/23 edition of Mpumalanga Business – a guide to business and investment in Mpumalanga Province:

Eastern Cape Export Symposium to lift the lid on country’s export potential

The Eastern Cape Development Corporation (ECDC) will host the fourth annual Eastern Cape Export Symposium and Exhibition in September with a vision of accelerated export growth from the region which boasts no less than three ports and two special economic zones.

While the Eastern Cape on South Africa’s eastern seaboard leads the country’s exports in light vehicles, Mohair, Wool and certain agricultural produce, it has yet to reach its full export potential.

The forthcoming Eastern Cape Export Symposium and Exhibition, to be held in person on September 14 and 15 at the East London ICC, will be instrumental in “lifting the lid” on the region’s export ambition, says ECDC Export Director, Phakamisa George.

“A plethora of resources from funding and market-access opportunities to policy incentives will be shared with prospective and existing exporters as a means to not only broaden the base of exporters but grow existing exports.’’

Under the theme International trade – a lever for economic recovery, the symposium is timed in the midst of the pandemic which has radically restrained trade and networking opportunities world-wide.

The ECDC believes pent-up demand has created an appetite and an opportunity for trade which has been further strengthened by the African Free Trade Agreement and its incentives for intra-African trade among the ongoing development of other export incentives, efficiencies and trade agreements.  

“That intra-African trade constitutes only 16% of total trade in Africa is alarming but also points to the scale of the opportunity.’’

George says the Eastern Cape seeks to extend its markets for both existing and new products in a range of sectors, some of which already demonstrate the quality of produce and efficient global distribution achieved through the region’s committed supply chain. These sectors include, but are not limited to, automotive and agriculture (livestock, mohair, wool, citrus, timber, tea and agri-processing).

The Eastern Cape is the country’s biggest lemon producer, exporting more lemons than the US, Brazil, Egypt or Italy and also exports more than half of South Africa’s light vehicles. According to data released by the Department of Agriculture, Land Reform and Rural Development (DALRRD), the Eastern Cape has the largest percentage of the country’s livestock – 38% of its goats, 30% of its sheep and 25% of its cattle. It produces more than 15-million kilograms of wool a year and supplies more than half of the world’s mohair. The province is also home to 16% of the country’s milk producers, which account for 26% of the milk produced in South Africa. 

“There is massive opportunity for growth of exports across numerous sectors,” says George. “From agriculture to technology the Eastern Cape has already demonstrated its capability.”

George also points out that East London remains the only South African port to export live animals in South Africa, and sought to increase exports of this nature, while the province had also started investing in cannabis production as a breakthrough commodity in the commercial space.

While the symposium, exhibition and match-making meetings will foster interest from international buyers for locally produced goods, a key aspect of the conference, says George, is to inject energy into the vision and plan held by local export facilitators, including port operators, to optimise the processes that enable export growth.  

“When logistics infrastructure works according to our plans, ports and container terminals will have higher capacity and productivity, more shipping lines will be inclined to stop at our ports, freight costs will be reduced, and the result will be evident in export growth.”

Day 1 theme: The Eastern Cape Export Strategy: Infrastructure and Policy 

Numerous stakeholders play a role in optimising exports from the region. This session provides these roleplayers, exporters, partners and potential investors with a comprehensive and complete, multi-disciplinary view of the trends, new developments, opportunities, strengths and improvement areas that define and drive the export ambition.

Day 2 theme: Exporters Arise (Essential Updates and Resources) 

Prospective and existing exporters require up-to-date information on available support services, resources and policy movements that promote export growth. Fresh among these is the African Continental Free Trade Area (AfCFTA).

The conference line up is made up of policy and export experts, as well as CEO’s of the region’s most prolific and innovative exporters. Match-making sessions will be hosted concurrently, linking exporters to buying agents and country representatives from a range of countries such as the United States of America (USA), the EU, Ghana, U.A.E, Ethiopia, Guinea and Botswana.

“Geopolitical changes caused by global power shifts, the unprecedented global pandemic and the African Continental Free Trade Area are some of the topics to be considered. The discussions on the symposium will look at how the Eastern Cape and businesses within the province can capitalise on these changes for ensuring sustainable economic recovery.”

The exhibition will be hosted in person only and the conference will allow for physical and online participation on:
  • Date: 14 and 15 September 2022
  • Time: 09h00
  • Venue in-contact: East London International Convention Centre
  • Registration is required at www.ecexportsymposium.co.za

Air Products’ ‘Flow Campaign’ celebrates womanhood during Women’s Month

Learners from the Kwa Bhekilanga Secondary School in Alexandra at the handover event.

Last year Air Products launched their ‘Flow Campaign’ as the corporate social investment (CSI) committee provided funds for much needed sanitary products for female learners. The funding was allocated following the realisation that there is an enormous number of female learners in South Africa who miss a number of school days every month during their menstrual cycle due to the lack of sanitary products.

The tagline of the ‘Flow Campaign’, ‘Don’t let their flow stop their go’ was deemed appropriate as many learners literally stay at home for the duration of their cycle. “The idea behind this campaign, is to help learners attend school during their cycle,” says Arthi Govender, Chairperson of the CSI Committee. “This year, we have aligned our donations to Women’s Day to show the learners that being a woman is a privilege and womanhood needs to be celebrated. We hope that our donations will have a positive impact on the learners.”

During the month of August, Women’s Month, Air Products handed out a three-month supply (more than 12 000 sanitary towels) to more than 2 000 learners at Gauteng schools, Kwa Bhekilanga Secondary School in Alexandra on 11 August and the Ingqayizivele Secondary School in Tembisa on 19 August. As an organisation, they believe in supporting the communities in which they operate and strive towards assisting where possible, regardless of the sensitivities.

Arthi Govender, Chairperson of the CSI Committee, Lethabo Moshidi from Amo Pads, and the principal Mr Selowa at the Kwa Bhekilanga Secondary School in Alexandra with the learners during the handover at the school.

“Air Products’ sponsorship initiatives are primarily centered around the youth and education. The statistics on the number of school days missed by female learners annually as the result of their menstrual cycle is alarming, and we would really like to improve this situation,” says Govender. She further mentions that there are numerous female learners who fall behind to such an extent that they drop out of school completely.

Govender concludes by saying: “Females generally find anything related to their menstrual cycles as personal and sensitive, regardless of their age or demographic group. What we aim to achieve through this initiative, is to provide every female learner with the support and encouragement to embrace womanhood and to live their lives with confidence, hope and dignity. They should not allow anything to stand in their way of an education.”

For more information on Air Products, visit www.airproducts.co.za.

New projects add to SA energy mix

The Redstone Concentrated Solar Power Project in Postmasburg, Northern Cape Province. (Credit: ACWA Power)

The Premier of the Northern Cape, Dr Zamani Saul, chose to discuss the 100 MW Redstone concentrated solar thermal power (CSP) plant as the first item in his State of the Province Address in February 2022.

He had visited the Postmasburg facility on his way to Upington to give the speech and shared with his audience some of the impact which the project, and by extension, the national Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) under which it falls, is having on the Northern Cape.

Four of the 11 Renewable Energy Development Zones (REDZs) planned for South Africa are located in the Northern Cape.

Saul noted that the project had created 636 direct jobs on site, 91% of which are filled by South Africans. Specifically, 339 of the jobs are filled by people from the Tsantsabane and Kgatelopele municipalities, 45% of employees are young people under the age of 35 and 15% of all employees are women. By the end of 2022, nearly 1 800 people will be employed. The project expects to reach full commercial operation by the end of October 2023. The Redstone project has also created employment and procurement opportunities for 104 suppliers and subcontractors from those municipal areas and a further 26 SMMEs with majority-black ownership.

The 100 MW Redstone plant is the first project-financed CSP with molten salt central receiver project in the world and one of the largest investments in South Africa under the REIPPPP, with an estimated investment value of $800-million. Saudi Arabian electricity group ACWA Power also runs the 50 MW Bokpoort CSP plant near Groblershoop.

When the winning bids of latest phase of the REIPPPP were announced in March 2021, the Northern Cape was allocated 450 MW in approved bids. In less than a decade, an entirely new sector has been created through legislation that invited local and foreign investors to bid for and then build renewable energy generation plants. South Africa’s National Development Plan (NDP) requires 20 000 MW of renewable energy by 2030.

Green hydrogen is the newest energy subsector.

With the province already established as a clear leader in terms of solar projects, and with large numbers of wind farms also under construction, it was noteworthy that Premier Saul announced in his SOPA that the Northern Cape Province, in collaboration with Infrastructure South Africa, has developed a Provincial Hydrogen Strategy. This strategy was approved in 2021.

In a similar way in which each of the province’s Special Economic Zones (SEZs) and industrial parks is being aligned with renewable energy in some way (either generation or manufacturing), the Boegoebaai Port and Rail Development project has now been expanded to include the adjacent Hydrogen SEZ. The Boegoebaai Port and Green Hydrogen Cluster is regarded as a key priority programme, coordinated by the Northern Cape Economic Development Agency (NCEDA) and Infrastructure South Africa.

Four of the 11 Renewable Energy Development Zones (REDZs) planned for South Africa are located in the Northern Cape. REDZs will encourage localisation through the development of manufacturing hubs that can make components for the sector. The Special Economic Zones (SEZs) being phased in across the Northern Cape will complement this trend. REDZs are being developed in support of the implementation of the national Integrated Resource Plan (IRP 2019).

One of the Strategic Transmission Corridors identified at national level, the Northern Corridor, begins at Springbok in the west and runs through Upington and Vryburg on the way to Johannesburg in Gauteng. Each of those towns will be the focus of an REDZ, with the other REDZ in the province located in the provincial capital of Kimberley.

To assist investors, a One Stop Shop has been launched in the Northern Cape. Invest SA, through the Department of Trade, Industry and Competition (dtic), will provide investing companies with advice and services to fast-track projects and reduce red tape.

Solar power

Approximately 60% of the projects so far allocated have been in the nation’s sunniest province. Projects such as Kathu Solar Park, a concentrated solar power project, and the Roggeveld Wind Farm are indicative of the large scale of most of the energy generation that is being rolled out.

Xina Solar One is located at Pofadder on the N14 between Upington and Springbok. The R9.4-billion project is a joint venture between Spanish energy firm Abengoa Solar, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and a community trust representing the local population.

Kaxu Solar One is also near Pofadder but Khi Solar One is closer to Upington. All three plants use concentrated solar power which reflects the sun’s rays during the day into a molten salt storage system. The energy is then slowly released during the night. The 205 meter tower that collects the rays at the Khi Solar One site is one of the tallest structures in South Africa.

The Northern Cape is the natural home for the generation of solar power. Long-term annual direct normal irradiance (DNI) at Upington is 2 816 kWh/m², according to a survey done for Stellenbosch University by Slovakian company GeoModal Solar.

South Africa’s national average is among the best in the world. Stellenbosch University’s Solar Thermal Energy Research Group has six sites monitoring irradiation levels.

The tower at Khi Solar One near Upington is one of South Africa’s tallest structures. (Credit: Abengoa Solar).

A new national park could further boost Eastern Cape tourism

Credit: Angus Burns/WWF South Africa

Tourism is one of the sectors that was hit hardest by Covid-19. Many events were cancelled, foreign visitors were absent from attractions such as the Addo Elephant National Park and the Baviaanskloof World Heritage Site and guest houses and hotels struggled to make ends meet.

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 will undoubtedly pay off when the series is aired in great interest from domestic and international travellers in the spectacular Wild Coast region. The immediate economic impact of the filming was estimated at R10-million with 103 jobs created to support the project.

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, Camdeboo, Garden Route and Mountain Zebra National Parks. These parks not only look after animals but also protect quite distinct types of vegetation.

The film industry is a huge potential growth area for the Eastern Cape. The ECDC invested to support the filming of the popular TV series Survivor: Immunity Island, with the spectacular scenery of the Wild Coast as a backdrop. Season 8 was filmed in 2020 and Season 9 returned to the province for filming in January and February of 2022.

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 (pictured above) is near the famous Naude’s Neck Pass.

Milly the meerkat. (Credit: Shamwari Private Game Reserve)

As a source of clean water, the area is a hugely important resource and worth preserving for that reason too. The falling water shown in the main picture on this page 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 already 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. Shamwari Private Game Reserve reported that its non-paying guests were thriving on all the special attention they received during lockdown. Shamwari’s Wildlife Rehabilitation Centre took in Milly, an adult meerkat who had been not well looked after as a pet. The centre’s staff kept her mentally and physically stimulated and she has learnt to crack her own raw eggs, to go with a healthy number of blueberries which make up her diet.

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. In the week before the Omicron variant shocked some countries into banning travel, St Francis Links successfully hosted the South African PGA Championship and showed how well multiple companies, guest houses and sponsors can work together to create something of international quality. The tournament also brought employment opportunities to the region.

The South African PGA golf tournament at St Francis Links showed how events can be linked to employment opportunities. Here the expanded ground staff follow the last group of golfers in on the final day – and earn some applause of their own for putting on a fine tournament. (Credit: Sandy Coffey)

Other than tourism and film, the following sectors have been identified by the ECDC as priority sectors: agriculture and agro-processing, sustainable energy, the Oceans Economy, automotive, light manufacturing. Each of these categories is the subject of an updated economic overview in the 2022/23 edition of Eastern Cape Business.

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