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Automotive manufacturing: Carbon taxes present a challenge

Ford makes engines in Gqeberha, where it started operating in 1924. Credit: Ford Motor Company

As the South African automotive industry celebrated one hundred years of making cars in the country, two challenges appeared on the legislative and political landscape: European carbon targets and a possible recalibration of policies by the US.

The Carbon Border Adjustment Measurement of the EU will be introduced in January 2026. For original equipment manufacturers (OEMs) in South Africa, the implications are great. The National Cleaner Production Centre, a subsidiary of the Department of Trade, Industry and Competition (the dtic), has offered its services to OEMs to establish whether or not they are meeting the targets.

Since 2000, the African Growth and Opportunity Act (AGOA) has afforded many African countries the right to export into the US almost 7 000 products duty-free. This has been a big boost for OEMs like Mercedes-Benz which sends a lot of its vehicles to the US.

In 2022, countries with AGOA status exported goods to the value of $30-billion into the US, with $10.2-billion of that attracting no duties. With the US and South Africa differing in their respective attitudes to the conflicts in the Middle East and Ukraine, there is a chance that US policy-makers could withdraw South Africa’s status.

On the other hand, the US is also likely to do less trade with China under President Trump and there may be additional opportunities in the US if AGOA can be safely negotiated.

Ford Motor Company started making cars in what was Port Elizabeth in 1924. Today it makes engines in the same town, now known as Gqeberha, and vehicles in Pretoria.

BMW Group has started making the BMW X3 as a plug-in hybrid for export at its Rosslyn Plant in Tshwane. Pretoria is also home to Nissan. The Tshwane Automotive Special Economic Zone (TASEZ) is a project of the Gauteng Province, the dtic and the City of Tshwane.

The 520 963m² facility of Volkswagen South Africa in Kariega is one of four plants worldwide that makes right-hand-drive Polos but the only one in the world that makes the Polo GTI.

Both the Coega Special Economic Zone and the East London Industrial Development Zone (ELIDZ) have areas dedicated to automotive and automotive components manufacture and the Automotive Industry Development Centre – Eastern Cape is focussed on growing the sector.

The national Automotive Production and Development Programme (APDP) has been extended to 2035, 15 years beyond its original expiry date. State support for the industry has helped it thrive, but manufacturers are expected to increase local content levels.

The industry itself is looking to Africa for new markets and is urging national government to release policy guidelines on electric vehicles.

Further online resources:

E-commerce is reshaping the delivery landscape

Electric delivery vehicles are being exported from Stellenbosch. Credit: MellowVans

Last-mile delivery solutions are being sought everywhere as e-commerce continues to grow. Some food retailers have backed old-fashioned motorbikes and some are powering their delivery trucks with electricity, but a Stellenbosch-based company is shaking up the sector with an electric three-wheeler that looks a bit like a taxi you might expect to see on a busy street in Hanoi.

MellowVans already has an impressive list of clients that includes DHL, DOCKR, OK Online, takealot, DPD and Spar. With a carrying capacity of 2 500 litres and a range of about 130km on a single charge, the vehicle offers versatility and low running costs. Although the company did not qualify to be part of the country’s automotive industry support programme because it does not produce in sufficiently high volumes, export markets have opened up in Europe, Egypt and the Middle East.

With the Post Office barely functioning, a rising trend in South African has been the growth of parcel-delivery options. A plethora of companies have sprung up to join the established DHL, DSV, PostNet and RAM Hand-to-Hand Couriers, which runs a fleet of 1 600 vehicles. These include Pargo, which has more than 4 000 pickup points around the country, The Courier Guy and D2D. Some companies have taken space in service stations to place dedicated lockers for the delivery and collection of parcels.

Transnet received a loan of R18.2-billion from the African Development Bank in the course of 2024, a signal from the world of finance that efforts to fix the state-owned logistics and freight company are credible. The cost to fix Transnet Freight Rail has been estimated at between R150-billion and R200-billion so there is still some distance to go but a Freight Logistics Roadmap and other planning initiatives suggest that the state and the company are serious in their intent.

Transnet Freight Rail is carrying more cargo.

The CEO of the African Rail Industry Association (ARIA), Mesela Nhlapo, has praised the utility for the “open and transparent manner in which it is managing the rail-reform process”. A recovery plan was adopted in October 2023 and by November 2024 freight volumes had grown by four-million tons with the aim of reaching 170Mt by the end of the 2023/24 financial year.

Revitalising and getting value out of under-used or defunct branch lines, which often used to be the only way of getting a commodity out of a farming or mining district, will be a key indicator of progress. The first round of attempting to get the private sector to invest floundered so getting it right second time around will be especially important.

South Africa has 22 000km of railway lines and 747 000km of roads, 325 019 heavy-load vehicles and the road freight industry employs 65 000 drivers. There are 135 licensed airports in the country, 10 of which have international status. The South African Department of Transport has several agencies and businesses reporting to it. Among them are Air Traffic and Navigation Services Company, Airports Company South Africa (ACSA), National Transport Information System, Road Accident Fund, South African Civil Aviation Authority, South African Maritime Safety Authority (SAMSA), South African National Roads Agency Limited (SANRAL) and Passenger Rail Agency of SA (PRASA).

Planning is key

In the Western Cape, the administrations in charge of the City of Cape Town and the province have plans to better coordinate transport. The City of Cape Town has conducted a feasibility study on taking over the management of passenger rail services from PRASA. The city wants to have a fully-integrated system, which would include rail. The city’s Urban Mobility Directorate published an updated Comprehensive Integrated Transport Plan (CITP), and has strategies and plans for improving the transport environment in the metropole. The Transport and Urban Development Authority (TDA), located within the municipality, is responsible for planning, costing, contracting, regulating, monitoring, evaluating, communicating, managing and maintaining the City of Cape Town’s transport infrastructure, systems, operations, facilities and network. The provincial government has followed the city’s lead with the establishment of a Mobility Department.

Large amounts of money are to be spent on various forms of public transport in the short term. Investments in rapid transit systems in the big metropolitan areas such as Johannesburg are being followed by cities such as Polokwane and Rustenburg. In Limpopo’s provincial capital of Polokwane, operations of the Leeto La Polokwane public transport system were launched in 2021 while Johannesburg’s Rea Vaya has been running since 2009.

There are plans to make more use of Hoedspruit Airport, the airport that is most often associated with the Orpen Gate of the Kruger National Park. In 2022, 61 000 of the people who passed through Hoedspruit were European tourists but there is potential to increase this traffic substantially. CemAir offers flights to Johannesburg and Cape Town and Airlink connects to destinations such as the Victoria Falls in Zimbabwe, Maun in Botswana and Vilanculo in Mozambique. The Limpopo Department of Transport and Community Safety is working on a strategy to develop the airport to further boost the tourism sector.

The Polokwane International Airport (PIA) is wholly owned by the provincial government and run by the Gateway Airports Authority Ltd (GAAL), an agency of the Department of Transport. It has the potential to be an important regional cargo airport.

Invitation to join the International Trade Seminar

Image by Freddy from Pixabay

The Eastern Cape Development Corporation (ECDC), together with Nedbank, is delighted to invite you to an essential forum focused on the complexities of international trade and boosting the Eastern Cape’s economic growth.

This seminar aims to promote meaningful conversations, the exchange of knowledge and the sharing of experiences concerning trade and economic development.

Our focus will be on ‘Navigating Trade War Turbulence: Alternative Mitigation Strategies for South African Exporters.’ This will be presented by our keynote speaker Dr Martin Cameron. Dr Cameron is an independent consultant & quantitative economist specialising in the field of Quantitative Executive Decision Support modelling, Economic Impact Analysis & Engineering Management Decision Support.

Join us for an insightful discussion, all aimed at driving trade and economic success in the Eastern Cape.

Date: Thursday, 10 April 2025
Time: 08:30–12:00pm
Venue: InvestSA One Stop Shop, 12A Esplanade Street, Quigney, East London

Enquiries: Email llubengu@ecdc.co.za by 31 March 2025. Please advise of any dietary requirements.

Register on the link below:
https://bit.ly/ecdc-nedbank-seminar

DEVAC Infrastructure Summit 2025

DEVAC Infrastructure Summit is the exclusive annual meeting where decisionmakers from the private sector, multinational executives, international investors, African governments, and various other institutions get together to address challenges faced by the Infrastructure Sector in Africa.

This high-level business meeting platform which takes the form of a Conference and Expo, facilitates all participants to share their experiences and to discuss about innovative solutions and potential business partnerships that will help develop or improve the Future of Infrastructure across Africa.

The annual exclusive meeting that connects leading stakeholders in the public and private sectors to address challenges faced by the African Infrastructure Sector and to discuss the way forward of improving the future of infrastructure across Africa.

Find out more: https://infrasfuture.com/

Securing South Africa’s water future: Why skills matter more than ever

Picture sourced: Pixabay

South Africa’s water sector is facing big challenges, and we can’t afford to ignore them. Climate change, ageing infrastructure, and growing demand are putting enormous pressure on our water resources. But here’s the thing, fixing the problem isn’t just about upgrading infrastructure, it’s about having the right people with the right skills to manage, maintain, and innovate in the sector.

That’s where the Energy and Water Sector Education and Training Authority (EWSETA) comes in. We’re focused on making sure South Africa has a skilled workforce to tackle these issues in a sustainable manner. Through training programmes, industry partnerships, and regulatory alignment, we’re working to close the skills gap and build a future where water security is a given, not a luxury.

Why skills matter in the Water Sector

South Africa doesn’t have an endless supply of water, and the National Water and Sanitation Master Plan warns that by 2030, we could be looking at a 17% water shortfall if we don’t take immediate action. But this isn’t just about the water itself—it’s about the people managing it. Without skilled professionals to oversee water conservation, distribution, and technology, we will continue to see unnecessary waste and inefficiencies that put our country at risk.

Right now, the country loses over R7-billion in water every year due to leaks and infrastructure failures. More than 30% of municipalities are struggling because they don’t have enough trained water professionals, and nearly 60% of South Africa’s water is used in agriculture, often inefficiently. Overall, 87% of the blue drop tests (182 out of 210 tests) in 2024 point to municipal drinking water that is safe for human consumption.

Technology is offering new ways to tackle these problems, from AI-driven leak detection to smart water management systems, but none of these solutions work without people who understand how to implement them. The water sector doesn’t just need more professionals, it needs highly trained specialists equipped with modern, technology-driven skills to secure a sustainable future.

Regulation 3630: A roadmap for Water Security

To address these challenges, the government’s Regulation 3630 lays out four key principles for sustainable water management, and EWSETA is aligning its skills programmes to match these priorities. Training professionals to conserve and distribute water resources efficiently is critical to preventing further loss and ensuring long-term access and ensuring that these professionals maintain their standard through annual professional development is key.

Technology and innovation are already transforming the sector, but without the right expertise, South Africa risks falling behind in adopting AI-driven solutions for leak detection and digital water monitoring. Finally, strong collaboration between government, industry, and education institutions is essential to continuously develop and build capacity within the current workforce and to develop a pipeline of future water professionals.

What this means for Business

For industries connected to water and infrastructure, addressing the skills gap isn’t just a nice idea, it’s essential. With better-trained professionals, companies can significantly reduce operational costs and cut water losses by up to 20%, saving billions. As global industries adopt AI-driven water management, South African firms need to stay competitive by ensuring their workforce is prepared for these advancements. Sustainability is also an increasing priority for businesses, and those focused on Environment, Social and Governance (ESG) commitments need teams that understand responsible water management and conservation.

Companies can take action by working with EWSETA to develop tailored training programmes, offering internships to students, and collaborating with researchers on new water-saving technologies. These initiatives don’t just benefit businesses; they ensure that South Africa remains at the forefront of water sustainability.

The role of universities and TVET colleges

If we want to build a strong pipeline of skilled water professionals, academia must play a bigger role. Right now, there’s limited focus on digital water management in curricula, and many students don’t have access to structured apprenticeships that provide real-world experience. Research funding for localised water solutions is also lacking, which prevents innovative ideas from reaching implementation.

EWSETA is tackling these issues through initiatives like the PoVE Water Management Project with Stellenbosch University, which updates curricula to reflect real-world industry needs. Additionally, Municipal Water Training Programmes are equipping TVET graduates with practical skills, and bursary and apprenticeship programmes are opening doors for young professionals especially women interested in careers in water science, engineering, and sanitation.

Universities and colleges can strengthen this effort by working with EWSETA to develop new water-focused qualifications, offering apprenticeships and placements to students, and collaborating with government and industry on research projects that push innovation in water management.

Government and municipalities: Building capacity for better service delivery

Municipalities are at the frontline of water service delivery, yet many lack the expertise or capacity needed to keep systems running efficiently. Without major investment in skills development, South Africa risks falling into a deeper water crisis. EWSETA is ensuring that its training programmes align with key government policies such as the National Water and Sanitation Master Plan (NW&SMP), which calls for 15,000 more skilled water professionals by 2030. Similarly, the National Development Plan (NDP 2030) prioritizes infrastructure development, while the Green Economy Strategy emphasizes building expertise in sustainable water solutions.

Government can support these efforts by expanding municipal training programmes in partnership with EWSETA, introducing policy incentives to encourage private sector investment in water skills, and funding research projects that improve service delivery. These measures will ensure that South Africa has the workforce needed to maintain and develop critical water infrastructure.

A call to action: Let’s build a water-secure future together

Water security isn’t just a government issue, it’s everyone’s responsibility. The choices we make today about training and education will determine South Africa’s water future. Industry leaders must invest in skills development and innovation, universities and TVET colleges should collaborate with EWSETA to create cutting-edge training programmes, and government must prioritise workforce training to improve service delivery.

National Water Month is more than just awareness, it’s about action. The time to invest in skills is now.

You can help secure South Africa’s water future!

Visit EWSETA online at https://ewseta.org.za/ 

Featured image by F. Muhammad from Pixabay – https://pixabay.com/photos/water-pipe-plumbing-pipeline-2852047/

Securex South Africa 2025

While cybersecurity remains a headliner in all media, physical security still plays a dominant role in mitigating risks and reducing the threat to people and physical assets. Staying abreast of current technology is a prerequisite, but can be difficult to achieve, given the ever-changing nature of the technology.

Securex South Africa takes the guesswork and legwork out of finding solutions that address specific organisational and individual needs.

Networking with the knowledgeable exhibitors creates a platform for focusing directly on visitor challenges and issues, leading to a fast resolution of threats.

The expo — hosted over three days from 3 to 5 June 2025 at Gallagher Convention Centre — is once again co-located with A-OSH EXPO, Facilities Management Expo, and Firexpo. This strategy allows visitors to quickly and easily source Africa’s widest showcase of security, OSH, facilities management, and fire safety solutions in one venue.

Find out more: https://securex.co.za/

New engineering capacity is available in Richards Bay

Renewable energy contracts are filling order books. Credit: Bell Equipment

Bell Heavy Industries has been launched. In 2023, Bell Equipment, the manufacturer of well-known yellow Articulated Dump Trucks (ADTs), announced that it would be offering services such as complex engineering, heavy fabrication and machining to other companies. In making the point that the company’s staff is well-equipped to offer these sophisticated services, Bell Equipment’s Group Business Development Director, Stephen Jones, noted, “South Africa has seen a huge reduction in engineering companies and in response, we have strategically positioned our South African manufacturing facility to fill this void by providing project engineering and contract manufacturing through BHI.”

Bell’s range of equipment includes Excavators, Backhoe Loaders, Wheeled Loaders, Telescopic Handlers, Skid Steer Loaders and Graders that are used in the mining, earthmoving and agriculture sectors. The company is a notable exporter and was named the overall winner at the 2023 South African Capital Equipment Export Council (SACEEC) Exporter of the Year Awards.

Engineering in South Africa

There is more economic activity in the Northern Cape than many South Africans know about. The towns of Kuruman and Pofadder have no fewer than three Country Hotels properties – each. Many of the professionals staying in these hotels, lodges and inns are engineers, working on an ever-increasing number of mining expansions or solar or wind renewable energy projects.

Another town that might not be a little town for much longer is Kathu. Ensor was contracted by the Provincial Government of the Northern Cape to develop and extend Kathu West with approximately 5 700 stands some years ago. More recently GAP Infrastructure Corporation (GIC) has been doing township developments and road, water network and stormwater projects across the province. The water network project entails installing an internal water-reticulation system that will include reliable house connections, water meters, fire hydrants and isolation valves, providing the community with a stable and secure water supply. The sewer network project aims to install robust uPVC sewer pipes and concrete manholes with heavy-duty covers.

Many South African engineering concerns are filling their order books with renewable energy infrastructure orders, and its not just in the Northern Cape. The Eastern Cape is rapidly becoming known as the “Wind Province” while Mpumalanga is attracting a lot of attention because of the existence of significant grid infrastructure supporting power plants, many of which are due to be decommissioned soon. Solar and wind projects could then get access to the grid cheaply.

The country has ambitious plans to generate more power from solar, hydro-electric and wind plants and fit more rooftop solar panels to houses and businesses. One such project in the Northern Cape, the Redstone Concentrated Solar Thermal (CSP) power plant, represented a substantial foray for Grinaker-LTA’s engineering division into the renewable energy field.

Some of the key aspects which Grinaker-LTA was responsible for included hot and cold storage tank bases, civil works, the steam generation structure and the molten salt pump towers. The 100MW plant is the first project-financed CSP with molten-salt-central receiver in the world. ACWA Power, a Saudi developer, investor and operator of power generation plants, and Chinese engineering company SEPCOIII Electric Power Construction Limited, managed the project and they jointly appointed Grinkaker-LTA as the contractor to execute the construction of the project’s critical structures.

Also in the Northern Cape, engineering skills are being expanded by new work associated with radio astronomy. Local artisans from the town of Carnarvon have built telescopes for a radio telescope array project, the 350-dish HERA project, which is led by the US National Science Foundation with the South African Radio Astronomy Observatory (SARAO) acting as the local partner, responsible for systems engineering and construction, among other duties. At one point, the construction team grew to 20 and many news skills were learnt.

When dairy company Clover decided to consolidate its national operations into just four plants, technological expertise was needed to make sure those factories were able to cope with greater demand. One such company was Energy Partners Refrigeration (EPR) who were contracted to tackle a number of issues, including increased power requirements to higher refrigeration load as well as increased steam demand and pressure requirements. The upgrade of the cooling structure featured the installation of a new 10MW ammonia system and 16% of all the electricity used by the new system is generated by solar PV. An innovative aspect of the project is that Clover has a Cooling-as-a-Service (CaaS) contract, a pay-per-use model that removes the large upfront investment cost as a barrier to improved efficiencies and improved environmental performance.

Marine repair and engineering form a significant sector in the Western Cape and KwaZulu-Natal, with established companies such as EBH South Africa offering comprehensive services. Both KwaZulu-Natal ports are expanding and will continue to attract engineers.

The Engineering Council of South Africa has a programme where trainees can earn certificates in specific disciplines from a range of institutions. The qualifications are in line with the council’s Exit Level outcomes. Six of South Africa’s biggest construction companies have established a R1.25-billion skills fund.

Further online resources:

What’s happening in the South African mining sector?

Anglo American is selling. Credit: Anglo American

The board of Anglo American rejected several offers made by BHP to buy the company during 2024. The bid would have excluded Anglo’s two big South African assets, Kumba Iron Ore, pictured, and Anglo American Platinum (Amplats).

Anglo American is selling.

In November 2023 Anglo’s shares came under pressure from the market when the company announced reduced copper targets and major cost-saving measures which included job cuts. Anglo has a long-term strategy to be more focused and consequently is in the process of selling assets and shareholdings in diamonds, coal, nickel and platinum. The portfolio transformation will result in the focus being on copper, premium iron ore and crop nutrients.

Platinum producers have all been under pressure, with Northam Platinum postponing some projects and Sibanye Stillwater laying off staff due to lower global prices. By contrast, the two older staples of South African mining, gold and coal, are making a comeback.

A sale that was first mooted in 2021 was finally resolved in June 2023 when Northam Platinum agreed to sell its stake in Royal Bafokeng Platinum (RBPlat) to Impala Platinum (Implats).

That sale took Implats’ holding in RBPlat to 91% after it had bought 9.26% of the company from Public Investment Corporation (PIC) earlier in the year to give it a majority holding. The RBPlat platinum group metals (PGM) facility, which lies directly south of Sun City, is adjacent to Implats Rustenburg’s land. The Impala Rustenburg operation comprises a nine-shaft mining complex and concentrating and smelting plants. The big sale coincided with a decline in the global prices of some of the PGMs such as palladium and rhodium. Although the long-term prospects for PGMs are good in support of the nascent hydrogen economy, a slowing Chinese economy and the expanded market for electric vehicles are negative factors.

Gold and coal

Gold is popular again as the global price hit record levels because of war and instability in so many parts of the world. In November 2024, Sibanye Stillwater reported a 292% increase in adjusted earnings from its South African gold operations while Gold Fields reported normalised earnings of $900-million in 2023, up from $860-million the year before.

Sibanye Stillwater’s diversification strategy included moving into platinum and this has paid off, despite the current commodity price. While Anglo is doing the opposite in selling many of its assets, it is mirroring one aspect of the Sibanye masterplan by investing in lithium batteries. Sibanye has built up its share in a lithium mine and refinery in Finland to the extent that it now holds 80% of the facility, with the state-owned Finnish Minerals Group (FMG) owning the balance. In 2024, Anglo American signed an agreement with FMG

The world’s deepest mine will be made even deeper.

The Financial Mail’s cover story in March 2024 was about gold’s resurgence and how “local miners are reinventing their business operations to stay in the game”. One example was the R7.9-billion devoted by Harmony Gold to extending the Mponeng mine in Gauteng, which means that the world’s deepest mine will be made even deeper. Harmony bought Mponeng from AngloGold Ashanti. The article further noted plans to list Blyvoor Gold in New York and increased production forecasts from Pan African Resources.

Coal’s resurgence is closely linked to a global rethink about the speed of the transition to cleaner fuels. In South Africa, that means that four coal-burning power plants, Camden, Grootvlei, Hendrina and Kriel, will now only be decommissioned in 2030. The commitment to switch power sources has not changed, but the timeframe has. Coal will continue to be mined for some time to come.

Coal is far from finished. Credit: Thungela Resources

Afrimat, previously listed on the JSE in the “Construction and Building Materials” section, has changed its classification to “General Mining”, a recognition of the company’s ambitious buying programme in the Northern Cape and Mpumalanga. With construction and building now contributing just 20% to operating profit, Afrimat is active in anthracite and iron ore and will further expand into phosphates, rare earth elements and vermiculite. Among its new acquisitions, Afrimat now controls the Nkomati Anthracite mine in Mpumalanga. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%.

In July 2023, as scheduled, De Beers Group celebrated the beginning of production at its Venetia Mine in the northern part of Limpopo Province. The long-term, $2.3-billion conversion project of the diamond mine to an underground mine began in 2012 and will extend the life of the mine to 2045 or beyond.

In the Northern Cape, the Namakwa Special Economic Zone in Aggeneys is being envisioned as an industrial cluster with the biggest new mine project in the country, the Gamsberg project of Vedanta Zinc International, as the central tenant. The project will 600 000 tons of zinc when phase three is complete.

Copper is one of the most important elements needed to power the renewable energy transformation and so it’s no surprise that areas mined historically for that mineral in the Northern Cape are now back in the news. Batteries need copper, as do systems used to transmit energy from solar or wind sources. Electric vehicles contain an average of 85kg. Copper 360 and Orion Minerals are actively pursuing old sites and new. 

Further online resources:

SMMEs and cooperatives urged to apply for the 2025 Lion’s Den Business Plan Competition

The competition is currently open for this year’s instalment. SMMEs and cooperatives are urged to apply. (Photo Supplied)

EThekwini Municipality invites small, medium, and micro-enterprises (SMMEs) and cooperatives within eThekwini to apply to be part of the 2025 Lions Den Business Plan Competition.

Applications close on 18 April.

The competition aims to foster an entrepreneurial culture while unlocking job creation.

It also offers local businesses the opportunity to access critical development resources and stand the chance to win prizes to elevate their operations.

The competition will be held in three categories namely Emerging Business, Established Business, and Entrepreneurial Excellence.

Competition categories and thresholds are as follows:

  • Emerging Business: SMMEs with viable business ideas and an annual turnover of less than R100 000.
  • Established Business: SMMEs seeking expansion, with annual turnovers between R100 000 and R500 000.
  • Entrepreneurial Excellence: Businesses with an annual turnover of more than R500 000 that have demonstrated exceptional business practices and leadership.

Participants will have the opportunity to pitch their business ideas or expansion plans to a panel of adjudicators.

Winners will receive business development prizes, including funding, equipment, and raw materials to help scale their businesses.

Application forms are available from the Business Support, Tourism, Markets, and Agri-Business Unit located at the Embassy Building, 7th floor, 199 Anton Lembede Street.

Forms can also be obtained from any Sizakala Centre or the SEDA eThekwini Office.

Application forms can also be downloaded from www.durban.gov.za or via this link: 2025 EThekwini Municipality Lions Den Business Plan Competition Application Form.pdf

Applications can be submitted to Yanga Nyakeni at yanga.nyakeni@durban.gov.za

Over the years, the Lions Den Programme has had a significant impact on local SMMEs.

One such success story is that of Samkelisiwe Sithole, the founder of Luhnyenzi Farm, who won the Emerging Business Category last year.

She received R20 000 worth of packaging materials, including a wrapping machine, which she said enhanced her operations.

Commenting on the impact of the initiative Sithole said: “The material lasted three months and helped us appear more professional. Winning this award opened many doors, including recognition from various stakeholders with some approaching us for collaborations. This also boosted faith in our brand as we also offer training.”

Her poultry farming business now employs three people.

Past beneficiaries of eThekwini Municipality’s Lions Den Business Plan Competition have heaped praise on the initiative, highlighting significant growth and new opportunities unlocked following their recognition and prizes received. (Photo Supplied)

For further enquiries, businesses can contact Yanga Nyakeni on 031 309 8280.

Private sector participation in rail and port freight logistics projects launched

Photo Credit: Transnet Port Terminals (TPT)

This launch marks a pivotal milestone in the government’s efforts to collaborate with the private sector to ensure our rail network and our ports resume their rightful place in promoting trade and economic growth.

The Roadmap for The Freight Logistics System in South Africa clarifies that strategic infrastructure such as rail lines and ports will remain in public ownership, as assets belonging to South African people.

At the same time, it paves the way for greater competition in rail and port terminal operations, which will attract private investment and improve our infrastructure to world-class standards. In this context, I believe that the efficiency of the logistics systems is integral to the functioning of all economies. 

Today, I am launching an online Request For Information (RFI) to develop an enabling environment for private sector participation and enhanced investment in rail and port infrastructure and operations.

As you are all aware, South Africa’s rail and port infrastructure faces substantial challenges, including declining performance; theft and vandalism; under-investment, and operational inefficiencies. All of these hinder trade and economic growth.

The limited availability of state resources to fund infrastructure development and address backlogs has intensified these challenges, severely restricting the ability of state-owned entities to fulfill their critical mandates.

Together with Transnet, Government has received numerous unsolicited proposals from the private sector offering investment, skills, and expertise to support the rehabilitation and reform of our struggling rail and port systems. 

This overwhelming interest has made it clear that the Department and Transnet must engage in broad and inclusive market engagement before issuing Requests for Proposals (RFPs) in August this year. These are not formal procurement processes in themselves but a mechanism to understand and source information from the market.

To ensure these RFPs are well responded to, government recognises the importance of understanding the freight logistics landscape through the perspective of interested and affected parties, so that our solutions that are both effective and sustainable.

In this initial phase of Private Sector Participation, the RFI focuses on the following corridors:

  • Northern-Cape to Saldanha Bulk Minerals Corridor primarily for iron ore and manganese exports, and the Northern-Cape to Nelson Mandela Bay Corridor, primarily for manganese exports. 

This includes the complete pit-to-port rail, port, terminal infrastructure, and equipment supporting the transport of iron ore from mines in the greater Sishen–Postmasburg region to the Port of Saldanha, as well as the movement of manganese from mines located between Hotazel and Postmasburg to the Port of Saldanha, and to the ports of Port Elizabeth and Ngqura in Nelson Mandela Bay, and the back of port 
arrangements.

  • Limpopo and Mpumalanga to Richards Bay Bulk Minerals Corridor PSP Project for coal and chrome exports, including provision for magnetite exports in port.

This includes the full pit-to-port rail, port, and terminal infrastructure and equipment supporting coal exports from mines in Lephalale, Limpopo; chrome exports from the ‘Western Limb’ mines in the  Rustenburg-Brits region in North West; and coal exports from various mines across Mpumalanga and KwaZulu-Natal to the Port of Richards Bay. Particular attention is given to the Bayvue precinct, where non-RBCT coal, chrome, and magnetite are handled through the Dry Bulk and Multi-Purpose Terminals, and the back of port arrangements.

  • Intermodal Supply Chain PSP Project focused on the container and automotive sectors, including the potential designation of the South African container port system as a regional transhipment hub for major shipping lines.

This includes the port, container and automotive port terminals, back-of-port arrangements, and railway and inland terminals for the Gauteng—Durban port (KZN), Gauteng—Eastern Cape (East London, Port Elizabeth, Ngqura), and Gauteng—Western Cape (Cape Town) corridors.

The RFI represents a pivotal step forward in our shared commitment to building a 21st-century transport system that goes beyond mobility to strengthen industrial competitiveness, deepen regional integration, and drive inclusive economic growth. 

It will enable us to articulate the challenges in a structured and coherent way, clearly defining their scope, context, and impact to inform the development of focused, strategic, and sustainable solutions. In this regard, the DoT will ensure that the views of a range of other stakeholders are brought into the deliberations, including organised labour.

Capacitating the Department for Private Sector Participation 

In line with the Private Sector Participation envisioned in the White Paper on the National Rail Policy, Cabinet approved a PSP Framework in 2023 to guide private sector involvement across the logistics sector value chain. The Framework mandates the Department of Transport (DoT) to establish a dedicated PSP Unit to enhance state capacity and provide support to Transnet and PRASA in the procurement of potential PSP projects.

The Department is in the final stages of concluding a Memorandum of Agreement with the Development Bank of Southern Africa (DBSA) and the National Treasury, appointing DBSA as the hosting institution for the Unit.

We have set up an interim PSP Unit within the Department, comprising a team with extensive expertise in structuring PSP contracts and procurement. 

In collaboration with Transnet, the interim PSP Unit has developed the Rail Freight and Port RFIs.

What happens next in the RFI phase?

As the RFI is part of a research and consultation process, all information submitted will be treated with strict confidentiality and used exclusively to inform the development of potential PSP projects. Participation in the RFI offers a valuable opportunity to help shape future initiatives.

The RFI must be completed online and can be accessed through the Department of Transport’s website or directly at www.psp-rfi.co.za. The portal will remain open for eight weeks, from 24 March to 9 May 2025.

Submitted responses will be reviewed and feedback will be provided.

Following the conclusion of the RFI phase, the Request for Proposal (RFP) will be undertaken through the PSP Unit. The PSP Unit and Transnet will develop the policy-aligned PSP Programme, which will enter the formal procurement phase from the end of August 2025. 

This work is guided by the following principles:

  • Reform Transnet in accordance with the Cabinet-approved Roadmap for Freight Logistics;
  • Ensure a just transition to a reformed rail and port logistics system, prioritising maximum job retention for employees of Transnet and PRASA and in this regard we have set up a joint work stream to consult organised labour as the process unfolds;
  • Safeguard immovable assets by retaining them under state ownership for the benefit of future generations and preventing the balkanisation of the rail and port system as has occurred in other countries;
  • Actively promote localisation, industrialisation, and support for key sectors such as steel production and local rail manufacturing;
  • Demonstrate our commitment to Broad-Based Black Economic Empowerment and gender equality by providing strong support to new and emerging players in the rail and port sectors, including SMEs and SMMEs.

In closing

I encourage all Interested and Affected Parties to actively engage in this RFI process, contributing to the PSP Unit’s efforts in shaping the potential PSP Programme of Projects and designing future bid packages for procurement. 

In May 2025, the Department will release the second batch of the RFI which will be focused on passenger rail initiatives, together we can achieve more.

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