College of Cape Town Council, Executive, Campus Managers and SRC.
Article by Zintle Maliwa (PRP), Marketing Assistant: Marketing and Communications.
The College of Cape Town hosted its first physical graduation ceremony after the world was hit by the coronavirus pandemic. The prestigious event was held at the College of Cape Town, Crawford Campus, on 28 July 2022.
The graduation ceremony marks a milestone in the life of a student. It is a serious yet joyful event that allows students to dismiss the stress of years of hard work. This ceremony also gives the graduates a great chance to celebrate their academic achievements and motivate other students to complete their studies.
The College of Cape Town Principal during his address said, “College of Cape Town is highly honoured today to host this breath-taking event in honour of the best of our own, the Graduands of 2021. Walking through the long path of the rich history of this Institute one is left with wonderful memories of its proud output. Ladies and gentlemen, allow me to quote the words of our icon in all spheres of life and the guru in religious integration, the late Archbishop Desmond Tutu and I quote ‘Don’t Raise Your Voice, Improve Your Argument.’ Indeed, the class of 2021 has improved the argument. Your echoes in the corridors of education and the workplace are being heard. There lies a bright, exciting but challenging future ahead of you.”
Dr Manager Mhangarai Muswaba (FCIS), the Principal and CEO of the College of Cape Town for TVET.
On graduation day, 160 National Diplomas were officially awarded, and 41 Trade Test Competent Artisans were recognised, in Engineering Studies namely: Building & Civil Engineering, Electrical Engineering and Mechanical Engineering.
The college also celebrated 21 National Certificate Vocational (NCV) Top Achievers, at the qualification level, three Top Award Achievers for NCV per level, namely: Zukhanyise Tokwe, Lutho Qashani, and Tasneema Zass, and two Principal’s Award recipients which is the most prestigious honour for our students. The Principal’s Award is for the overall best performer in the entire institution and was awarded to Zanaib Petersen for National Diploma and Zukhanyise Tokwe for NCV. Zukhanyise Tokwe was the biggest winner, with her three awards; as follows: NCV Top Achiever at the qualification level; Top Award Achiever for NCV per level; and the Principal’s Award.
The College of Cape Town would like to extend a word of appreciation and gratitude to all its sponsors, ABSA Bank, Brand Innovation, CI Partners, and Future Managers. Thank you for being generous and sponsoring our top achievers’ prizes.
Dr Alice King and Dr Manager Muswaba led the procession. 2021 College of Cape Town Graduates.
The mining operations of Vedanta Zinc International will form the core of the Namakwa Special Economic Zone.
The Northern Cape industrial agenda is based on a clear strategy that is well articulated in the Northern Cape Growth and Development Plan. To achieve this strategy, the Northern Cape Industrial Development Corridor, also referred to as the N14 Development Corridor, is being developed.
It starts with the development of the Kathu Industrial Park and leads to the Upington Industrial Park, the Namakwa Special Economic Zone and the Boegoebaai Harbour and SEZ. The last of these is a key node and the advent of the Green Hydrogen production aggregation.
Each of these projects is also outlined in more detail in the latest (2022/23) edition of Northern Cape Business (read/download).
These projects are significant in building the province’s transitioning economic landscape and will enhance the province’s output and growth potential in realising the Northern Cape’s vision of being “a modern, growing and successful province”. To enable this vision and to achieve sustainable development, the Northern Cape has identified economic development and growth to be the first pillar of our Vision 2040.
As the Northern Cape, we have embarked on an aggressive strategy to identify our key clusters of resources and economic activities and complement this with the global and SADC regional geographic demand and supply consolidation.
The Northern Cape industrial corridor entails consumption, resources, basic human and industrial settlements, transport and logistical infrastructure nodes with a focus on six key industries:
Agriculture and agro-processing
Mining and mineral beneficiation
Just energy sector
Manufacturing
Transport, services, and logistics
Knowledge and innovation
The establishment of world-class infrastructure is a focus. It should be enabled with effective transport, logistics, energy, telecommunication, human capital and a regulatory framework to enable the industrial development ecosystem.
“The Northern Cape: A Modern, Growing and Successful Province”
With the consolidation of several leading fintech and payment solutions providers under the name, adumo, the largest independent payments processer in South Africa has been established and is primed to galvanise growth for South Africa’s fragile small, medium and micro enterprises (SMMEs).
Adumo CEO and co-founder Paul Kent explains, “Driving financial inclusion by reconstituting the payments environment is critical. The world of payments is becoming increasingly complex. We see our role as to make it simple and efficient for our clients, providing a flexible ecosystem and one stop fintech solution that increases turnover and ultimately enables growth for SMME’s across South and sub-Sahara Africa and the economy at large.”
With the recent consolidation, adumo will provide clients with a financial services platform that enables an ecosystem of integrated value-added financial and business services. The offering will assist SMME’s in getting paid, growing and optimising their businesses, driving significant value across all merchant categories.
Currently, adumo exceeds a processing value of R80-billion per annum in formal markets across South Africa, Namibia and Botswana. With a vision ‘to be a catalyst for growth for businesses across South and Sub-Saharan Africa through the provision of financial inclusion across every client tier’, the newly constituted adumo went on an acquisition trail of successful niche fintech businesses between 2019 and 2021, that could help realise this adumo vision. The strategy saw the coming together of leading fintech brands: Sureswipe; Innervation Pan African Payments; Innervation Rewards; iKhokha; Humble; Switchpay; Wirecard – quickly rebranded adumo online – and GAAP.
Through the consolidation of the various fintech products and solutions into one brand, and providing omni-channel or multi-channel options catering for in-store and online needs, adumo has created a one-stop fintech solutions business for its customers. Other than receiving payments via credit cards or alternative payments, clients can obtain working capital for business growth linked to the turnover through adumo card machines.
Further, they can make use of adumo’s loyalty solution in their stores to improve customer loyalty and increase repeat business/sales.
Newest to the adumo offering is that consumers are also able to gain access to in-store credit from adumo’s merchant stores, without the merchant having to install an expensive in-house credit providing facility.
The new consolidated offering has already been experienced by many of adumo’s customers, and it’s visibly helping them to grow their businesses and save money. Kent adds that: “Vertical integration and sector specific segmentation is the ingredient that will catalyse growth for customers”.
“There is no doubt that competition in digital payments has driven significant savings across all merchant categories, as transaction fees have reduced,” Kent says. “And we are very proud to have played a large part in disrupting this market in terms of pricing and offering. As we look forward, our vision is to continue to be a catalyst for growth for our customers. We have already received feedback that proves our ecosystem has been a key determinant for increasing turnover in our customers’ businesses.”
With reference to new devices, these are android based, improving and simplifying the user interface, increasing transaction speed, and delivering increased connectivity options and overall improved reliability. They are in beta testing, with roll-out intended for this year.
Matthew Sledge, the Managing Director of the HP Store and client of adumo says that: “adumo is a true partner with a solid working relationship. adumo really looked to help us simplify and grow our business. We now have a flexible, payments partner who is willing to grow the relationship with us for the long term.”
Along with the consolidated market facing adumo brand, the other two brands to be seen going forward will be iKhokha, a fast-growing fintech focussing on informal and micro businesses, and GAAP, a market leader in the hospitality field.
“Our financial services platform ecosystem, places adumo ahead of many fintech payments providers, in that we can provide a seamless and integrated solution to our customers. This can be customised for various sectors and geographies in which they operate. We are able to partner with our customers, providing relevant offerings for every stage in the lifecycle of their business and ultimately being a catalyst for business growth for SMME’s and the economy at large”, concluded Kent.
According to FDI Intelligence 2022, the Renewable Energy sector in the Western Cape has received the second highest level of foreign direct investment, by CAPEX, when compared to other sectors, over the last 10 years.
Through 11 projects between 2011 to 2021, this sector attracted R17,99-billion in FDI, coming second to Communications on the same measure. It was ahead of the Business Services sector, which came in third.
This data confirms the huge potential of the Western Cape’s Green Economy, and how a continued focus on strengthening our energy resilience will not only relieve the pressure created by load-shedding, but also contribute to more investment and economic growth, while driving a clean energy transition.
That is precisely why we need to create an enabling environment for the private sector at every turn, so that they can meet the growing demand for renewable energy.
I therefore join Premier Alan Winde in cautiously welcoming announcements by President Cyril Ramaphosa regarding reforms announced to unlock the private sector in this space. We now need to see real action and follow-through, especially in the removal of red tape that stands in the way of these projects.
For our part, creating this environment continues to be a strategic priority for the Western Cape’s Department of Economic Development and Tourism, which through the Municipal Energy Resilience Programme, is capacitating candidate municipalities in the province to become ‘procurement ready’ so that they can procure from IPPs, while also focusing on private sector enablement.
Wesgro, Cape Town and the Western Cape’s Official Tourism, Trade and Investment Promotion Agency, is also assisting investors to land their Green Economy projects in the Western Cape.
Likewise, our Green Economy team in the Department is unlocking barriers that stand in the way of this sector, through engagement and partnership with other government departments, other levels of government, the private sector and Eskom.
The answer to growth and jobs in South Africa rests with enabling the private sector, which must be allowed to do its job of creating jobs in the Western Cape and South Africa. Creating the right conditions to facilitate this is our focus in the Western Cape, so that these investment figures can continue to grow in the years ahead.
General Manager of Lion Smelter, Chabisi Motloung, with Co-founders of Mmereki Project and Construction, Bridget and Evens Malapane,
Glencore Ferroalloys’ Lion Smelter handed over a front-end loader machine to Mmereki Project and Construction PTY (Ltd) as part of the Enterprise Supplier Development (ESD) programme. This programme aims to support and empower SMMEs in the communities near Glencore’s operations to enable them to create more job opportunities especially for unemployed youth.
Following a partnership with Mmereki Project and Construction on a recent community project, Lion smelter performed a needs analysis with the business to ensure that they are fully supported. In addition, they also identified gaps within the business which could hinder Mmereki Project and Construction’s ability to fulfil their project obligations. It was then identified that the business only had half the machinery required to fulfil their responsibilities and therefore planned to outsource the remaining machines. Machine outsourcing for any local SMME can be a tremendous output cost and may lead to business continuity threats as it eats up profits.
Mmereki Project and Construction was encouraged to apply for support through the ESD programme, and together with Glencore’s CSI department, a decision was made to capacitate the business by procuring a front-end loader.
Lion Smelter General Manager, Chabisi Motloung, commended Mmereki Project and Construction for not letting business limitations dissuade them from pursuing entrepreneurship because their determined mindsets have created opportunities for business growth.
“As Glencore Lion Smelter, we believe in our local up-and-coming businesses because we are equally responsible for ensuring that they are successful – this speaks to something very close to us which is Progressing Together with our communities. We aim to empower businesses, so they no longer need to outsource a large percentage of their equipment but instead place profits back into their pockets in order to create more jobs for the community. We wish Mmereki Project and Construction all the best and we are proud to invest in a business that is always so eager and professional to provide outstanding services,” said Motloung.
Co-founders of Mmereki Project and Construction, Bridget and Evens Malapane, were thrilled with the donation and thanked Glencore for their donation of the new machinery and for being intentional about supporting their business by guiding and understanding the different challenges they face.
Mmereki Project and Construction’s new front-end loader machine, donated by Glencore Ferroalloys’ Lion Smelter
“This is very special to us as a youth-owned business. An investment of such magnitude towards our business will enable us to focus on seeking more business opportunities which means hiring more resources that will impact the standard of living for the people in our community. This is important to us, because by Glencore empowering us we are able to effectively empower those around us,” said Malapane.
Glencore remains committed to making a positive change to local emerging SMMEs in its host communities by supporting and guiding them to further grow their businesses so they can contribute to local economies. Glencore prides itself in ensuring that its host communities Progress Together with them by targeting black owned businesses who will in turn uplift their fellow community members.
The SAB Ibhayi brewery in Gqeberha is getting power from the sun. (Credit: SOLA)
In addition to leading the way in attracting wind power projects, the Eastern Cape is making good progress in trying to ensure that the community trusts that arise from these and other renewable energy projects actively benefit communities.
According to the South African Wind Energy Association (SAWEA), 16 wind projects were secured for the province in the course of the first four windows of bidding of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). As of the middle of 2020, the value of the projects was estimated at nearly R20-billion with R4.6-billion committed to communities living and working near wind projects.
From 2017, SAWEA started running workshops for community trusts, municipal officials responsible for economic development, the national IPP office and wind farm representatives. Of the R4.6-billion mentioned above, some 42% was allocated to skills development and educational programmes. Among the skills identified as needing to be enhanced were governance, fiduciary oversight and the ability to critically assess development projects.
More than half the wind farm projects so far approved have been allocated to the province.
As a coastal province, the Eastern Cape has obvious advantages, but the availability of wind is not the only factor. As SAWEA notes, “Wind farms are constructed according to the quality of the wind resource and ease of connection to the national grid.”
Both Cookhouse and Stormberg have been listed as Energy Development Zones which means that they are one of the planned national transmission corridors, allowing for direct access to the grid for wind farms in these areas.
South Africa’s National Development Plan (NDP) requires 20 000 MW of renewable energy by 2030 and wind power technology, together with solar photovoltaic, are the two primary methods that are being deployed in pursuit of that target.
More than half the wind farm projects so far approved have been allocated to the province. The Kouga area west of Jeffreys Bay and the Cookhouse/Bedford area about 95 km north-west of Makhanda (Grahamstown) represent two wind power hubs, with a collective capacity of 1 185 MW.
Credit: BTE Renewables
In May 2021 it was announced that the 123 MW Golden Valley Wind Energy Facility near Cookhouse south of Cradock in the Sarah Baartman District Municipality had reached commercial operations. This means that the energy requirements of about 120 000 households will be met.
Just a few kilometres east of Cookhouse there are a further two wind farms, both awarded to Enel Green Power (EGP) in the fourth round of the REIPPPP. The Nxuba and Nojoli wind farms will respectively produce 140 MW and 88 MW and represent what might be called Enel’s Eastern Cape mountain area investment. On the coast they have built wind farms at Oyster Bay and Gibson Bay, west of the 138 MW Jeffreys Bay Wind Farm, which is run by Globeleq and was one of the country’s first big wind energy facilities.
The Provincial Government of the Eastern Cape is collaborating with the National Department of Employment and Labour to train young people in digital technology and solar energy. The Youth Digital eXponential (YDx) Project is funded by the Unemployment Insurance Fund and is to be implemented by the South African Digital Content Organisation. As of February 2022, 500 young people were participating.
Green power
Humansdorp could become the site of a plant that produces e-methanol from green hydrogen and gas created from locally-sourced biomass.
Zero-carbon methane is to be made at Humansdorp.
Three companies have signed an agreement to do a feasibility study: ENERTRAG South Africa, Earth & Wire and 24Solutions. The abundant wind and solar resources of the area would create the renewable energy to form the green hydrogen. Green hydrogen qualifies as such if the process to make it used only renewables. All of the electricity produced by renewable energy facilities would be used by the electrolyser (for the green hydrogen), desalination and e-methanol plants.
ENERTRAG’s German parent has considerable experience in innovation and is working with Sasol on aviation fuel alternatives. In 2011 it opened the world’s first hybrid wind to hydrogen power plant.
Earth & Wire has signed agreements across South Africa with landowners on 400 000 ha of land which the company intends using to build renewable energy facilities. The short-term focus is on wind and solar projects close to completion in Mpumalanga, Gauteng and the Eastern Cape.
Green hydrogen is very much the flavour of the month, in the aftermath of the negotiations at the COP26 conference.
The Coega SEZ has been chosen by Hive Hydrogen SA as the location of a Green Hydrogen project which will be fully operational by 2026. The project will see a green ammonia plant constructed, valued at approximately $4.6-billion. The main development partners are BuiltAfrica and Hive Energy of the UK who have formed Hive Hydrogen SA but various other partners are involved.
Local salt manufacturer Cerebos will supply desalinated water to the project.
Green hydrogen is very much the flavour of the month, in the aftermath of the negotiations at the COP26 conference.
The hydrogen will be separated from the oxygen by an electrolyser, and hydrogen and nitrogen will be combined to form green ammonia which will be stored in liquid form at a tank at the Port of Ngqura, from where it can be exported around the world. Gas company Afrox is another partner, although there is no intention currently to convert the oxygen to pharmaceutical-grade product as that market is currently well served. The plant will have its own dedicated power supply.
Another renewable energy investor in the Coega SEZ is Seraphim Solar Cell Manufacturing that is investing R362-million to increase the local content of its solar value chain.
The first consignment of Eastern Cape lemons is given a last inspection at the Maydon Wharf Fruit Terminal in Durban. (Credit: Citrus Growers’ Association of Southern Africa)
Thursday 17 February 2022 was a red letter day for farmers in the Sundays River Valley and for South Africa’s citrus industry. On that day, a first shipment of lemons was loaded onto ships from the fruit terminal in Durban harbour en route to China.
The long and complicated procedure of becoming compliant with health and import procedures started with work done by Citrus Research International (CRI) scientists in 2013. CRI and the National Department Agriculture, Land Reform and Rural Development hosted scientists from China in 2015 and negotiations have continued ever since.
South African citrus growers spend R150-million annually on research which is then used by the DALRRD in their international negotiations. In this case, it paid off with a R325-million deal which has the potential to grow exponentially. South Africa hopes to eclipse Argentina and Chile as suppliers of lemons to China, targeting 25 000 tons of lemons to that country by 2024.
Exports of grapefruit, oranges and soft citrus to China totalled 130 000 tons in 2020. More good news from South-East Asia came in the form of a first consignment of citrus fruit being accepted into the Philippines.
The citrus industry has been identified in the National Development Plan as a priority sector because it employs many people and it can improve the country’s balance of payments.
According to the Sundays River Valley Citrus Producers Forum, black citrus farmers have increased the volumes of their exports by 40%, with a total of 1.6-million cartons exported in 2020.
However, exporting fruit of the Eastern Cape is not as straightforward as it might seem. All of South Africa’s ports have been struggling in recent times to keep up with demand. The province’s three ports are no exception, with some of the citrus fruit originating in the Eastern Cape having to be trucked to Durban or Cape Town, adding costs to the operation.
The industry also battles with a shortage of shipping containers and high demand for cold-storage facilities. In April 2021, an MSC vessel was diverted to Gqeberha to offload 1 995 refrigerated containers just in time for the citrus-picking season. There is a global shortage of these specialised containers.
The Eastern Cape is the second-largest citrus-producing province with the Sundays River Valley being the country’s single biggest production area. South Africa is the world’s second-largest exporter of citrus fruit. A national export record was achieved in 2020, with 146-million cartons of fresh citrus being exported (second only to Spain). Citrus yielded R3.4-billion in exports for the Eastern Cape.
Citrus fruits have been cultivated in the Sundays River Valley for decades. (Credit Sundays River Citrus Company)
National citrus exports have grown by more than 40% in the past decade to about R20-billion per year. The Citrus Growers’ Association of Southern Africa forecasts an increase from the current 150-million 15 kg cartons to 200-million in the next five years, and this is projected to grow still further to 255-million by 2030.
Automotive strength
The list of winners at the annual awards function for Exporters Eastern Cape Exporter of the Year gives a good indication of the strength of the province’s automotive and automotive supply sectors. Exporters Eastern Cape is a non-profit organisation comprised of members from export companies, freight forwarders, financial institutions and shipping lines.
The Nelson Mandela Bay Business Chamber’s Enterprise Development Programme has several parts: the Export Development Programme is the latest initiative.
The Eastern Cape Development Corporation offers extensive support to exporters through its Trade Promotion Unit which facilitates annual trade missions, exhibitions and workshops to offer networking platforms, share knowledge and gain access to prospective clients.
The Acoustex Group was Exporter of the Year in 2021. (Credit: Acoustex Group)
Acoustex Group, a Gqeberha-based automotive component manufacturer, won Exporter of the Year 2021, in addition to the prize for best exporter in the medium enterprise category. The company created a new product line by acquiring a company and increased direct and indirect export turnover to 12 countries by 24%.
Among the products produced by Acoustex are sound deadeners, moulded insulation parts, carpets, parcel trays, tailgate covers and back-panel components. Other companies in the group make vehicle protection kits, vehicle protection seat covers and technical laminated fabrics for medical and domestic use. An interesting category prioritised environmental accreditation and environmental management. Merit awards were given in the SJM Flex Environmental Award to the Coega Development Corporation, Purem, Isuzu and Volkswagen Group South Africa.
Volkswagen also won Best Exporter Original Equipment Manufacturer (OEM) with Isuzu being recognised for skills development and transformation initiatives.
In recent years, each of the province’s OEMs has been steadily increasing export volumes, often breaking new records in successive years.
Ford Motor Company makes engines for the Ford Ranger pickup and Everest SUV at its Struandale plant and it has committed to invest R600-million for modernising and growing its local operations. (Credit: Ford Motor Company)
In 2016 Mercedes-Benz recorded a new high for the month of April of 10 674 vehicles exported through the Port of East London. Over seven years to 2021, 650 000 C-Class models were built, of which more than 90% were exported. Volkswagen has sent 326 000 Polos into the global market since 2018.
An interesting addition to the export basket of Isuzu Motors is pick-up kits in knocked down (KD) format which are being sent to Isuzu East Africa, an affiliate in Kenya.
Ford makes engines at its plant in Struandale, Gqeberha. The company wants to persuade national government to upgrade the railway line between Gauteng (where it makes its vehicles) and Gqeberha so that it can send parts up the line to Tshwane and export its vehicles out of the port. Fully 75% of the company’s product is exported to more than 100 markets around the world. In September 2020, Ford led automotive exports with 6 995 vehicles.
Sod turning to officially start construction of the new school project.
Umsimbithi Mining hosted a sod-turning event to mark the beginning of construction of the new Môrelig Combined School which will be situated in the community of Wonderfontein, in Mpumalanga. The school project, which is estimated to be worth R39-million, will be constructed to accommodate approximately 1 000 learners across pre-primary, primary, and secondary levels of the schooling system.
This project is in line with the mine’s priority to empower its host communities by providing solutions to some of the issues they face. The new school project will replace the existing school building which is currently in an impaired condition and will be used by Umsimbithi for mining activities.
The sod-turning event was held at the Wonderfontein Community Hall and was attended by Umsimbithi Mining management team including Umsimbithi Mining CEO Thato Gama, Mpumalanga Department of Education DDG Lucy Moyane, Acting Executive Mayor for eMakhazeni Local Municipality MMC Joseph Mabila, Môrelig Combined School Acting Principal Ms Malebe, the school governing body, teachers and local community members.
Umsimbithi Mining CEO, Thato Gama, acknowledged and thanked the community as well as the eMakhazeni local municipality for their engagement and support towards the Môrelig Combined School building project.
Umsimbithi Mining CEO Mr. Thato Gama
“We have gathered today to reaffirm our commitment by commencing with the Môrelig Combined School building project. This is certainly a day for celebration and we are very pleased and excited to know that this school will be the start of a new chapter not just for the learners, but the community as a whole,” said Gama.
Mayivuthe Rospa JV was appointed as the main contractor responsible for this project, and they have committed to carve out opportunities of job creation to local companies, starting with eMakhazeni based companies right at our doorstep. This ensures that there will be shared value for the people of this community which is very important to us as Umsimbithi Mining.
The new school building will include the following:
5 Classroom blocks (20 classrooms)
Multi purpose school hall
Laboratory, and a multimedia center
2 Ablution block for boys and girls
Administration block
Grade R classrooms
Guardhouse and refuse area
In addition, externally the school will also be equipped with:
Combi courts
Sports fields
Parking
Fencing
Deputy Director General of Mpumalanga Department of Education Ms Lucy Moyane, congratulated Umsimbithi Mining for honouring the commitment they made to the community as well as to the DoE.
DOE Head of Department Mrs Lucy Moyane
“We are happy to be here today to witness the generosity from Umsimbithi Mining, it is wonderful to see companies who are investing in education as that equates to investing in life. As the DoE, we commit to providing qualified educators, resources for learning and teaching and ensuring that the school infrastructure is utilised only for the intended purpose. The success of this project not only lies in the hands of Umsimbithi Mining and the contractors, but it also lies in the hands of the community. I encourage you to love this school building before the construction is even completed – let it be the pride and joy of us all,” said Moyane.
Chairperson of Môrelig Combined School SGB, Shakes Sibanyo, thanked Umsimbithi Mining and expressed how the new school will not only impact the lives of the students but of the community as a whole.
“We are thrilled for this relocation as we will no longer be a farm school but will be a modern school with efficient facilities. We currently have the overcapacity of approximately 800 students, so we look forward to more space and better, safer ablution facilities. We thank you Umsimbithi Mining for planting a seed to the future of this community,” he said.
The construction for the project commenced at the end of June 2022, and is expected to be completed and ready to be handed over to the community in September 2023.
Infrastructure at the new manganese mine at Mokala under construction. (Credit: Ruwa-Con)
The Premier of the Northern Cape, Dr Zamani Saul, made a bold claim in his annual State of the Province address in February 2022. He said, “Madam Speaker, the next hundred years of mining in the country are in the Northern Cape.”
He has good reason for such optimism. The single biggest mining investment in South Africa is moving ahead smoothly near Aggeneys where Vedanta Zinc International has been extracting zinc since 2018. New manganese projects are being undertaken in the eastern part of the province with the new mine near Hotazel, Mokala, one of the most prominent. Interest in copper mining (and retreatment) is growing, not least because copper has a role to play in the green economy.
Electric vehicles are dependent on copper and it can transmit and help store energy. Combined with the Northern Cape’s abundant resources of wind and sun, it is easy to see how planners are seeing linkages throughout the green economy and thinking of the roles the province may play.
A Northern Cape Green Hydrogen strategy has been approved and Sasol is doing a feasibility study. Planning for a deepwater port at Boegoebaai, which will greatly assist in logistics operations for the mining and agricultural sectors, is being linked to the potential to tap into the potential of green hydrogen.
Bid Window 6 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was launched in April 2022, promising to bring a further 2 600 MW to the national grid. Since the first bid was finalised, a total of 66 756 GWh of renewable energy has been procured, much of it in the Northern Cape which has a particularly strong suit in solar power projects.
The Redstone Concentrated Solar Power Project in Postmasburg. (Credit: ACWA Power)
Investment opportunities
An Investment Conference held in 2019 showcased a number of initiatives being taken by the Provincial Government of the Northern Cape to attract investors and to make the experience of investing easier. This was followed in 2022 by another investment conference with a specific focus on mining.
The Northern Cape Investment Booklet provides a comprehensive overview of the province’s assets and advantages, together with a list of investable projects in a wide range of sectors.
Key projects are linked to broader spatial and sectoral plans that play to the province’s strengths. Among these high-impact projects are:
A multi-nodal corridor is envisaged for the province, running from the Atlantic coast to the commodity-rich Gamagara mining corridor in the vicinity of Kuruman.
An overall view of the Gamsberg project. The anchor investor of the Namakwa SEZ will be Vedanta Zinc International which is already running the Gamsberg Zinc Mine and intends to build a smelter. (Credit: Kevin Wright/Vedanta Zinc International)
Invest SA, through the National Department of Trade, Industry and Competition (dtic) has established a provincial One Stop Shop for investors, lowering the cost of investing and helping to iron out any bureaucratic delays.
Another angle for attracting investors to the province is to improve infrastructure. This is being done in terms of roadworks (with the South African National Roads Agency, SANRAL), waterworks and information and communications technology (ICT). A range of organisations are working on bringing the province up to date with the latest in ICT. This includes the National Department of Science and Innovation (DSI) which is paying for bursaries for students in data science at Sol Plaatje University and training electrical engineers and fibre optic technicians. The DSI is a key participant in the SKA programme.
The Northern Cape is investigating the creation of a state construction company to take on up to 30% of infrastructure projects in the province. The creation of the Northern Cape Innovation Forum (NCIF) points to the way ahead for the province. The NCIF intends to bring together academics, government and business leaders, civil society and labour, to consider the impact of innovation and technology, and to work out how best they can be harnessed to the maximum advantage of all citizens. The project is led by Sol Plaatje University with support from the National Department of Science and Innovation and the Technology Localisation Implementation Unit of the Council for Scientific and Industrial Research (CSIR).
With the location within the Northern Cape of one of the world’s greatest technological marvels, the Square Kilometre Array (SKA) radio telescope, there is scope for young scientists and engineers to dream. Sol Plaatje University in Kimberley has a strong suit in teacher training, but an expanding curriculum speaks both to being able to exploit the SKA link through subjects such as ICT and data science and an appreciation of the past via heritage studies and paleo-sciences.
The university’s location in an arid region means that future programmes will be developed to study agriculture in water-stressed conditions. Building on the campus, which will eventually cover 190 000 m², is expected to continue for another decade.
Central Campus Square, Sol Plaatje University. (Credit: SPU)
The economy
Mining and agriculture, the traditional pillars of the provincial economy, remain important. Both sectors continue to contribute (despite fluctuating iron-ore prices and periodic droughts) but both sectors are showing potential to expand into new and productive terrain.
The Kalahari Basin contains 80% of the world’s manganese reserve, but only 15% of global production comes from this area so there is enormous scope for development. Several new black-owned manganese projects are underway. The world receives 7% of its diamonds from the Northern Cape, and exports of zinc and lead from the province account for 13% of global demand.
Iron-ore miners have done particularly well recently but it is the development of new zinc and copper projects that are catching the eye. Vedanta Zinc International has invested $400-million in the first phase of its Gamsberg project and Orion Minerals has announced that its bankable feasibility study was positive for a planned zinc and copper project at Okiep.
The modern global economy needs particular minerals for its cellphones, renewable energy batteries and electric vehicles, and the Northern Cape has a lot of them. Investors are expected to follow in search of cobalt, copper, lead, nickel and zinc.
A notable feature of Northern Cape agriculture is its diversity, a result of the diverse soil and weather conditions. The 38 000 ha Vaalharts Irrigation Scheme produces wheat, fruit, groundnuts, cotton and maize and along the banks of the Orange River many high-value horticultural products such as table grapes, wine grapes, sultanas and cereal crops are cultivated. A quarter of the country’s onions are produced in the Northern Cape and in the drier areas, goats and sheep do well.
Niche products such as rooibos tea and karakul pelts are other provincial specialities, with aquaculture and mariculture showing great potential.
The Northern Cape is home to six national parks and five provincial parks and nature reserves. The Richtersveld Cultural and Botanical Landscape is a World Heritage Site and the Namaqualand spring flower display draws many visitors.
Most of the province is semi-arid (with a coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold.
The banks of the Orange River are a productive oasis for the cultivation of grapes. (Credit: Dippenaar Choice Fruit)
Municipalities
The Northern Cape has five district municipalities.
Frances Baard District Municipality
Towns: Kimberley, Barkly West, Warrenton, Hartswater, Jan Kempdorp.
This district accounts for 40.3% of the province’s economic activity. It is the smallest but with a population of approximately 325 500, it is the most densely populated. Strategically located and with good infrastructure, Kimberley is the leading centre in the province for retail, financial services, education, commerce and light industry.
The Mittah Seperepere Convention Centre and the Sol Plaatje University are in Kimberley. Mining and agriculture are found in rural municipalities. Agriculture in the region comprises crop cultivation and stock and game farming. The Vaalharts Water Scheme is the largest irrigation project of its kind in the southern hemisphere.
John Taolo Gaetsewe District Municipality
Towns: Kuruman, Kathu, Hotazel.
Kuruman is the headquarters of local government in this region and contributes 19.7% to the province’s economy. The local spring produces 20-million litres of water every day.
Most of the district is situated on the Ghaap Plateau, which is over 1 000 metres above sea-level and can experience extreme temperatures. Most agricultural activity is limited to grazing and boer goats are a popular breed among farmers, although game hunting is growing.
The Sishen iron ore mine outside Kathu is a vast undertaking, providing employment for thousands of people. Samancor’s Mamatwan and Wessels manganese mines and plants are situated at Hotazel.
Namakwa District Municipality
Towns: Springbok, Calvinia, Niewoudtville, Garies, Williston, Fraserburg, Sutherland, Pofadder, Okiep, Port Nolloth, Alexander Bay.
The Namakwa district stretches from the north-western corner of the province, and the country, bordering Namibia and the Atlantic Ocean, to the southern border of the province with the Western Cape Province. It includes the famous star-gazing town of Sutherland on its southern edge. The district is sparsely populated, and predominantly rural. It contributes 11.1% to economic activity in the province.
A major new investment has been undertaken in zinc at the Gamsberg project.
The mining and agricultural sectors provide most employment, while tourism and small-scale manufacturing are also present. There are plans to upgrade the harbour at Port Nolloth.
The region’s economy gets a boost every spring when tourists flock to see the veld in bloom. Niewoudtville is the site of a rooibos tea factory.
The |Ai|Ais-Richtersveld Transfrontier Park, the Namakwa National Park and the Tankwa Karoo National Park have the potential to grow as travel destinations, as does the western coastline.
The district covers 102 000 square kilometres in the central Karoo and contributes 11.3% of the economic activity of the province. It has four national roads passing through it. De Aar, the site of the municipal headquarters, has national significance as a railway junction. The area around the town has several new solar farms.
Star-gazing is Carnarvon’s great claim to fame, and it is host to the Square Kilometre Array (SKA) radio telescope project.
The district is home to three of South Africa’s major dams. Agricultural production includes wheat, maize, peanuts, grapes, beans, potatoes, nuts and sheep farming. Pixley Ka Seme is the largest wool-producing district in South Africa, but most of what is produced is processed in the Eastern Cape, so opportunities exist for the establishment of a cotton mill, a tannery and a facility to add value to semi-precious stones. Horse breeding is a valuable contributor to the regional economy.
The Orange River supports a thriving agricultural sector and a growing tourism sector. The investment climate is ripe for tourism along the Orange River and around unique physical attractions such as the Augrabies Falls.
Upington is already a busy town with processing facilities for agricultural products.
Most of the population of the //Khara Hais Local Municipality lives in Upington. Agriculture is a prominent feature of the local economy, as well as wholesale and retail services in and around the town. Various kinds of high-speed car racing and testing takes place on the roads, tracks and airport runway in or near the town.
The processing of wine and dried fruit is one of the biggest manufacturing activities in the province. Mining activities take place in Kgatelopele, where diamonds and lime are found. Together with sheep and cattle farming, mining provides most of the employment to be found in Siyanda.
Read more in the 2022/23 edition of Northern Cape Business
Namaqualand flowers, Northern Cape Province (Credit: NC DEDAT)
The 2022/23 edition of Northern Cape Business is the 12th issue of this highly successful publication that has, since its launch in 2009, has established itself as the premier business and investment guide for the Northern Cape Province.
Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. Specific investment opportunities are treated in detail in this journal, with a focus on geographic hotspots that are due to become the focus of sector-focused infrastructure development.
The industrial parks envisioned for Kathu and Upington each have their own focus while the Namakwa SEZ has as its anchor one of the biggest mining projects in South Africa’s history, the Gamsberg mine of Vedanta Zinc International. Developments in renewable energy are covered, including the new global interest in green hydrogen, which has applications for the Northern Cape.
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As the Northern Cape, we have embarked on an aggressive strategy to identify our key clusters of resources and economic activities and complement this with the global and SADC regional geographic demand and supply consolidation.
