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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.

The College of Cape Town hosted its first Traditional Graduation Ceremony after the coronavirus pandemic

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.

Visit the College of Cape Town online: https://cct.edu.za/

All images © Nickay 2002-2022. All Rights Reserved.

The industrial corridor that catalyses the just energy transition

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”

SA’s largest independent payments processor, Adumo set to galvanise SMME growth

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.

For more information, visit https://www.adumo.com/

Nearly R18-billion of FDI into Renewable Energy in the Western Cape over last 10 years

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.

Glencore Ferroalloys empowers local SMME in Limpopo with front-end loader machine

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.

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