The Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO) continues to support the Public Sector in their endeavours to respond to the COVID-19 pandemic.
The COVID-19 crisis has highlighted electricity tariffs. Andre De Ruyter, Eskom Chief Executive, said: “Eskom sold 46% of its electricity to municipalities, which was then sold to consumers, with mark ups which are as high as 10% to 18%, creating an impression that electricity tariffs were too high.” He further highlighted that 20 municipalities owed Eskom more than R26-billion.
What was not disclosed to the reader is the level of cross subsidisation between municipal customers and Eskom customers and the diverse tariffs charged to municipalities by Eskom. What is also omitted and needs scrutiny is the reluctance of Eskom, as the service provider of a municipal service, to work with Municipalities to collect outstanding Municipal debt in terms of a Service Delivery Agreement.
The reduction in electricity demand over the eight weeks of the National Lockdown, has enabled Eskom to address urgent repairs to address capacity issues.
CIGFARO aims to further the interests of Practitioners in the Financial and related areas by advising institutions, commissions and other bodies and persons on some of the facts at hand. Certainly, the debt by Municipalities is regretted. However, the responsibility and commitment of Eskom to assist Municipalities is imperative in order to ensure every person who can afford to pay are paying for the full basket of municipal services with such payment including the payment of Municipal taxes.
The revenue collection processes by municipalities are complex and, in some instances, very emotional and cumbersome. Rates is the main source of revenue for general municipal expenditure. Utility income is for funding the utility service itself and the related aspects of keeping an efficient service in place. It has proven to be very difficult to collect revenues where the only collection method is rates because of rights enshrined in the Constitution in the Bill of Rights.
The best methodology, acknowledged by National Treasury in the Inter-Ministerial Task Team on Revenue, is the suspension of electricity or the use of electricity provision as a credit control method to collect outstanding debt.
The reluctance of Eskom to comply with National legislation through the signing of Service Level Agreements with municipalities where Eskom is the electricity supplier, either in whole or in part, was raised by the South African Local Government Association (SALGA) in parliament. Even at that level it has not resulted in any positive outcome. Municipalities will be in a better financial position if Eskom complies with section 81 of the Local Government Municipal Systems Act, 32 of 2000, as amended, by signing the required Service Delivery Agreement (SDA) as envisaged.
President of CIGFARO says, “We are always willing to engage stakeholders and work together in building better lives for all.” It is also imperative to ensure that all organs of state work together to ensure a better life for all.
For more information visit the website at: www.cigfaro.co.za – Media Room
Media release by David Maynier, Western Cape Minister of Finance and Economic Opportunities
We welcome the announcement by President Cyril Ramaphosa last night that the whole of South Africa will be moving to Alert Level 3 from 1 June 2020, and that all economic activity will resume except for certain sectors.
Minister David Maynier
We are particularly glad to hear that the construction sector will be allowed to resume activity under Alert Level 3 as this is critical to saving jobs and the economy in the Western Cape. This sector is already under enormous strain and an estimated 100,000 direct and indirect jobs could be lost due to the impact of Covid-19. And so, we will be working closely with the sector to help them implement the necessary health and safety measures on construction sites ahead of Alert Level 3.
More details on which sectors will not be allowed to open are likely to be confirmed with the release of the Alert Level 3 regulations by the Minister of Cooperative Governance and Traditional affairs, Nkosazana Dlamini-Zuma. As we have with the Alert Level 4 regulations, and in particular for the e-commerce and construction sectors, where we think that further consideration can be made for these sectors to safely open we will make further submissions to national government to do so.
We remain concerned about the tourism sector which is a major contributor to jobs and the economy in the Western Cape, and at present is only looking likely to open under Alert Level 2. This sector has already been hard-hit and could cost the Western Cape around 104 504 direct and indirect jobs in 2020. And so, where we think there are opportunities for tourism to open up safely and responsibly under Alert Level 3 we will request that national government allow this.
We firmly believe that if done responsibly, the economy in the Western Cape can open up while preventing the spread of Covid-19, and we are committed to supporting businesses through this crisis.
For assistance in understanding the regulations, guidance on workplace safety or help navigating the financial relief packages email us at supportbusiness@wesgro.co.za
To avoid a return to a hard lockdown, it is imperative that every business that is operating now, or which opens under the new alert level, plays by the rules, and implements the necessary health and safety measures as instructed by national government to avoid further negative impacts on their respective sector.
It is just as important that every person returning to the workplace always adheres to the safety guidelines that are put in place by their employer, even when taking a break in a communal area.
Every employer and employee has a responsibility to ensure that our economy stays open in the Western Cape. We all need to stay safe in order to save jobs.
We will all have to pull together, and we will all have to work together, in the coming days, and weeks, and months because, in the end, it is up to all of us to stop the spread of Covid-19 in the Western Cape.
On 18 May 2020, South Africa’s Chief Inspector of Mines, David Msiza, with the Department of Mineral Resources and Energy issued guidelines for employers to prepare and implement codes of practice to mitigate and manage the effect of the COVID-19 outbreak on the health and safety of employees and persons in the South African Mining Industry.
The Guideline was issued following an order handed down by the Labour Court on 1 May 2020, in accordance with Section 9 of the Mine Health and Safety Act of 1996. It directs the Chief Inspector of Mines, in consultation with the Mine Health and Safety Council, to develop the Guideline for employers in the mining. The Guideline applies to all mines or parts thereof, employees and contract employees in the South African mining industry that might be exposed to COVID-19 in the performance of their duties.
Legal status of Guideline and COP
The employer is obliged in terms of section 9 (2) of the Mine Health and Safety Act to prepare and implement a COP addressing the COVID-19 viral pandemic. The COP must comply with the Guideline and any instructions issued by the Chief Inspector of Mines in terms of section 9(3) of the MHSA, including relevant regulations and guidelines issued under the Disaster Management Act.
The COP may be used in an investigation to ascertain compliance and to establish whether the COP is effective and fit for purpose. Failure by the employer to prepare or implement a COP in compliance with the Guideline will constitute a criminal offence and a breach of the MHSA.
Preparation of COP
The employer is required to consult with the mine’s health and safety committee and any other affected parties on the preparation, implementation or revision of any COP in terms of Section 9(4) of the MHSA.
Following this consultation process, the Guidelines recommend that the employer appoint a steering committee comprised of competent persons to effectively draft the COP.
Prescribed contents of COP
The Guideline sets out the structure that the COP must follow and the minimum required contents. The following key elements must be addressed in the COP:
Risk assessment and review
Start-up and on-going procedure for mines
COVID-19 management programme
Monitoring and reporting
Compensation for occupationally acquired COVID-19
The Guideline provides detailed directions on the various issues that each of these elements must address. We highlight some of these directions below.
Risk Assessment
The Guideline requires employers to conduct a risk-based assessment covering all workings at mines. At a minimum, the risk assessment must consider the following:
All sources of SARS-CoV-2 infection transmission and the health effects associated with exposure to SARS-CoV-2
The nature of the key workplace operations and activities that pose potential risk of SARS-CoV-2 transmission, occupations and the number of employees who are likely to be exposed to and spread SARS-CoV-2
The mine’s essential occupations or critical skills that might be impacted by SARS CoV-2 transmission
The risk of employees vulnerable to SARS-CoV-2 while at work
The control measures in place
The de-densification of employees on transport modes and other spaces
The additional control measures required to be instituted in order to reduce exposure and the spread of SARS-CoV-2
The frequency of any ongoing monitoring to assess the effectiveness of the implemented controls
The mine’s risk assessment methodology must take cognisance of the WHO classification of the risk of SARS-CoV-2 infection into four risk groups set out in the Guideline. These risk groups are classified according to the nature and extent of contact with other people and the general public when working.
Start Up Procedure
Employers must establish a precautionary start-up procedure aligned with the Instruction issued by the Chief Inspector of Mines on the 20 April 2020.
The start-up procedure must include the routine cleaning or disinfection or industrial sanitising of surfaces that employees come into contact with and as determined by the mine’s risk assessment, screening and testing procedures, withdrawal procedures to be used by the mine in the event of a localised COVID-19 outbreak and measures to collaborate with the Department of Health for the prevention and management of COVID-19 for migrant workers at ports of entry.
Mitigation and Management Programme
Employers must develop a policy or integrate COVID-19 management of suspected and positive cases into the mine’s existing policies, COP and standard operating procedures for health and safety.
Employers must ensure that employees returning from areas which are regarded as epicentres of COVID-19 are quarantined for 14 days before they return to work.
For employees presenting signs or symptoms of COVID-19, the mine’s COP and procedure must include: a dedicated 24-hour hotline to reach the mine’s healthcare workers or contracted healthcare services; a procedure to report when an employee is sick or experiencing symptoms of COVID-19; how, where and the duration of isolation will take place for employees suspected of being infected with COVID-19; and the site where employees with suspected COVID-19 infection will be screened, diagnosed and treated.
In developing the COP, an employer must consider the training to be provided to employees. The training must include information regarding proper hygiene practices and the use of workplace controls, the Prevention of COVID-19 stigma, the process employees will use to disclose any pre-existing conditions prior to returning to work and the COVID-19 National Hotlines.
Employers must, as far as possible, with employees’ consent and respecting medical confidentiality, be informed through the designated healthcare worker if any employees have pre-existing conditions that make them more susceptible to severe COVID-19. Such employees must only be permitted to work after receiving a certificate of fitness to work from an occupational medical practitioner. If an employee is not permitted to work due to a confirmed pre-existing condition, the employer must arrange for transportation of such employee back to their homes.
Obligations prior to and upon arrival of employees at the mine’s premises
The Guidelines set out detailed information regarding the preparations an employer must undertake before and when employees return to the mine’s premises. These preparations include developing a procedure for the management of the return to work of employees after the lockdown and encompassing the history of COVID-19 in employees’ areas of residence during the lockdown through a questionnaire.
The employer must utilise a risk-based method and a staggered approach to prioritise the return to work of employees. Employers must implement a return to work medical which must include the completion of a questionnaire and the taking of vital signs such as temperature, blood pressure, and glucose assessment for known diabetics.
Employers must establish a procedure for the daily screening of all persons entering and exiting the mine and ensuring that they comply with protective measures while on site. Anyone who fails screening must be denied access and advised to seek medical assistance. The Employer must ensure the availability of medical resources, personnel, equipment, PPE, cleaning and disinfection services, the flu vaccination and prophylaxis for vulnerable employees. Employers must apply de-densification and physical distancing of 1-2 metres and provide the relevant PPE for mass transport and at areas of the mine where close contact may occur.
To classify the risk for the purpose of providing appropriate PPE, each mine must consider the risk classification groups for each job as set out in the Guideline as well as the mine’s specific circumstances within the context of what is reasonably practicable.
Monitoring and Reporting
An employer must appoint a COVID-19 Compliance Officer to provide oversight on the implementation of the Guideline. Each mine must submit a monthly report to the Principal Inspector of Mines.
Access to the Code of Practice and Related Documents
The employer must ensure that the COP and related documents are kept readily available at the mine for examination by any affected person and a copy is provided to a registered trade union with members at the mine or health and safety representatives.
The Guideline sets out comprehensive (and often complex) duties to be addressed by employers in their mandatory COP’s. The Guideline will become effective on 25 May 2020. Employers are therefore advised to immediately commence with the necessary preparations.
The Minerals Council of South Africa has commented: “The guidelines are largely compatible with the Minerals Council’s Standard Operating Procedure and the version of the SOP used as the interim basis of regulation since the judgment. The Minerals Council believes the industry will be comfortable about observance of the guidelines.”
19 May 2020 – “Today’s banks have an opportunity and a responsibility, to do far more for their customers than merely provide financial services. Platform ecosystems are the perfect way for them to deliver these comprehensive value propositions that their customers deserve,” says Ciko Thomas, Managing Executive: Retail and Business Banking at Nedbank.
Nedbank’s move to become a ‘digital-first’ financial services provider led to the successful launch of the Nedbank API Marketplace, a first-in-Africa platform aligned to open banking standards which creates opportunities to disrupt the traditional approach to banking and financial services while laying the groundwork for a truly client-centred, market-orientated and innovation-driven future in the digital world.
“Introducing Avo, the Super App by Nedbank. Created to bring customers and businesses together, accurately matching customer’s lifestyle needs to product and service offerings through powerful artificial intelligence, safe and secure payments, and bank-grade security.” – Fred Swanepoel, Chief Information Officer of Nedbank.
The term “Super App” refers to a multitude of apps aggregated into one. This means that customers and businesses can manage their daily lives through one app, breaking through the digital clutter on mobile. As Nedbank continues to test the market, they have filed eight provisional patents relating to the Avo platform – a great feat for platform innovation in Africa.
Due to the launch to 30 000 staff members in the midst of the COVID-19 National Lockdown, Nedbank was driven to reposition the Super App’s offering to not only be level-5-compliant but create a trusted lockdown companion for their staff.
Our plans had to pivot from a physical-activation-led launch, to a purely digital and essential-needs-based approach.
The beta version of Avo has been delivering essential goods, providing home entertainment and connecting home service providers across provinces. These are just a few of Avo’s proudest feats as we move into the next stage of the launch plan.
To date, Avo has reached the milestone of over 5 000 customers registered and 170 registered Home Repair and Services merchants. With requests flying in daily, Avo may just be the platform small businesses need to survive during the National Lockdown period.
What’s next for Avo?
The Avo beta release to Nedbank Money App users has begun. This will see the phased release of Avo to Nedbank clients, to allow for further enhancements before full public launch. The beta will allow Nedbank Money App users to use a two-click process to sign up seamlessly onto Avo, and allow this Super App to empower the way they do life.
“For us at Nedbank, that capacity to add massive value to every aspect of a person’s life or business is what makes a platform ecosystem really worthwhile,” Thomas concludes, “and this new digital engagement platform is a massive next step for us on this journey to be more than a bank, but rather through leveraging our digital leadership to be a creator, facilitator and enabler of real and lasting value.”
The Covid-19 pandemic and associated lockdown measures are placing an enormous strain on our economy and on our business community. In a bid to provide a degree of economic relieve, national government launched a suite of business support programmes, targeting various sectors and segments of the economy (please see the list below).
For those who have submitted an application (or a few), we would like to hear from you about your experience in submitting the application.
Below you will find a list of 10 business support programmes, along with links to a feedback survey for each programme on the list. If you have made an application to one or more of the programmes listed below, please would you be so kind as to complete the survey/s for those respective programmes.
Your feedback will be invaluable in helping us identify and sort out any issues.
These links will remain active until Friday, 22nd May 2020 – however we encourage your completion as soon as is possible.
The current economic situation which the country is experiencing is not only impacting on private households and or businesses, but it also has a direct impact on government and especially local government.
There are 3 types of Municipalities established in terms of the Constitution: category A (metropolitan municipalities), B (local municipalities) and C (district municipalities). Approximately 80% of Revenue generated by category A and B municipalities are from ‘own sources’ meaning this income is generated from local economies.
Any impact on the local economy will have a direct impact on the ability of the Municipality to generate the required revenue to fund services to the local communities. According to the second quarter financial information released by National Treasury, local government and specifically Metropolitan municipalities and secondary cities and towns are in dire need of revenue to fund services. At the end of this period (31 December 2019) there were already signs of financial distress.
Any pressure to reduce taxes in the local government sphere will have a further impact on the ability of Local Government to deliver non-tariff funded services. This same sphere is, to a large extent, also required to put in place processes and procedures required to minimise the spread of the Corona Virus Disease. This is an unfunded task that has been thrust on the local government sphere and which should be funded (or refunded) from the National Disaster Management Fund.
When an organization like OUTA canvasses support for an initiative to reduce property taxes, cognisance must be taken of the consequential reduction in the level of services that the municipality can provide. Reductions in income will also have an impact on the staff complement and, potentially, retrenchment could be imminent, further reducing the level of services provided.
The local government sphere, and CIGFARO in particular, have an appreciation for the difficulty suffered by property owners to keep their commitments up to date. However, as a sphere of government, municipalities have an obligation to collect all their revenue which is due and must abide by national legislation. Current legislation requires that all revenue must be collected, and any reductions, rebates or exemptions must be in accordance with approved Policies, accounted for in the municipal budget as income foregone where necessary and can only be allowed taking into consideration the sustainability of the Municipality.
CIGFARO is therefore highly concerned about this initiative to further reduce the revenues of Municipalities and the potential severe consequences to local communities. CIGFARO calls OUTA to engage with CIGFARO on this matter, together with COGTA, the National Government Department responsible for the Municipal Property Rates Act legislation quoted in the OUTA petition.
COGTA is also the custodian of the Disaster Management legislation and can advise on the Municipal Disaster Relief Grant that has been made available and the items that it is funding related to the national COVID-19 disaster declared.
There is a direct link between the stability of an economy and ongoing development—and currently the local construction and property industries are undeniably experiencing a lull due to reduced expenditure by government on large-scale infrastructure projects as well as uncertainty in the private sector investment markets.
In fact, findings in a survey from Timetric highlight that growth in the industry forecasted between 2017 and 2021 is expected to be more moderate than the review period for 2012 to 2016. However, there is room for optimism.
Despite the current economic climate – linked to fluctuations in global markets and further exacerbated by policy changes and political uncertainty locally – there are domestic and international investors and developers who continue to forge ahead with projects across South Africa, as they see the great potential and value here. Furthermore, building for sustainability has become the main driver for most investors and developers.
We expect this trend to continue well into the future as government, businesses and citizens, grow increasingly socially conscious to the importance of resilience and the need to safeguard and manage critical resources in a more sustainable fashion.
For instance, each time the country has intermittently experienced load shedding – and particularly since 2008 – this continues to increase social awareness on the importance of secure power, and sparks interest among developers to investigate solar-powered rooftop or onsite solutions that could self-power their buildings in the event of grid power interruptions.
Likewise, the water shortages – and water restrictions as a result – that many areas across the country have faced in the last 24 months have created a sense of urgency to look at more efficient water management solutions within buildings. This has also opened up opportunities to capture and use rainwater, or to safely recycle and reuse grey water, to meet their essential operational and living needs.
Johan Piekaar, Regional Director, WSP, Structures, Africa
It’s no surprise then, that this rising social consciousness, coupled with continuous and growing pressure being placed on the “built” space to address inadequate energy resources, carbon reduction targets and tightening building energy efficiency standards continues to drive sustainable building trends in South Africa. In fact, building for sustainability and climate change mitigation has become integral in the design and construction of buildings in the country.
The philosophy of building for sustainability is being led by responsible engineering (do what we can without costing too much – show return on investment value) and responsible building (driving this through the supply/value chain). Volatility in both the cost and availability of power and water resource, for example, is influencing a mindset change.
Added to this, if we look at the whole lifecycle design of a building; architects, consulting engineers and sustainability consultant teams are constantly coming up with alternative and environmentally suitable building, designs to offset the impact of the building on its immediate environment.
The philosophy of building for sustainability is being led by responsible engineering and responsible building.
Therefore, in the long term, not only are sustainable building design adoptions financially beneficial due to reduced energy consumption, but the use of renewable and more sustainable energy resources also has the propensity to reduce the carbon emissions associated to these buildings and provide increased resilience to uncertain service delivery.
These are all significant value adds to the customer/tenant – and what benefits the customer also benefits the developer/owner – as savvier customers are also realising the benefits of being more “green” and offsetting as much of their energy and water consumption as possible given the many benefits of doing so.
The rising social consciousness agenda is having a significant influence on the economic case for developments to be built for sustainability, which can then assist in increasing their marketability. What is then key is for investors, developers and their consultants and contractors to aspire to, is to incorporate “climate responsiveness” and “designing within constraint” concepts when developing buildings in order to ensure that these buildings remain resilient and sustainable in an unpredictable future context.
Main courtyard at the Sol Plaatje University. Picture source: Savage + Dodd Architects.
A regional overview of the Northern Cape
By John Young
South Africa’s largest province is also the country’s sunniest and investors in solar energy are taking advantage of large tracts of sunlit land to build giant solar farms.
South Africa’s newest university is growing in Kimberley and one of the world’s biggest scientific projects, the Square Kilometre Array (SKA) radio telescope, is taking shape around Carnarvon.
Sol Plaatje University 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. The competition held to choose architects for the first new buildings lead to some award-winning designs, including the multi-functional building (pictured) which houses a canteen, residences, offices and a retail section. The colourful wind-driven louvres were designed by Savage + Dodd Architects and executed by RVI Architectural Solutions.
Several black and women-owned companies have been active on the 12 projects currently underway. A Great Hall is planned on a portion of the Oppenheimer Gardens.
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.
Vedanta Zinc International started exporting product from the mine in 2018 and has so far invested about $400-million in the project. (Photo: Kevin Wright/Vedanta Zinc International)
Iron-ore miners have done particularly well recently but it’s the development of new zinc and copper projects that is catching the eye. Vedanta Zinc International has invested $400-million in the first phase of its Gamsberg project and Orion Minerals announced in 2019 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. Sea Harvest, the new owner of Viking Aquaculture, has started work on expanding its Diamond Coast Aquaculture facility near Kleinzee. It currently covers 400 ha and produces 100 tons of abalone per year. The plan is to increase production five-fold to cater for increased demand, particularly from Hong Kong.
The Provincial Government of the Northern Cape wants to develop an industrial base for the province based on agriculture and mining.
Various projects such as the creation of a rooibos tea plant are supporting that plan, as are the various spatial planning initiatives being pursued by provincial government. These include corridors of development, industrial parks and Special Economic Zones.
There are plans to build on the existing infrastructure that lies on the east-west axis roughly aligned with the existing N14 national highway and the Sishen-Saldanha railway freight line.
At the far east of this corridor lies the mining towns of Sishen, Kathu and Kuruman – an
industrial park is planned for Kathu.
In the middle is the town of Upington – anindustrial parkis envisaged with a focus on solar energy and manufacturing. The existing airport is an important part of the region’s transport and logistics infrastructure.
Aggeneys lies 277 km west of Upington on the N14 where Vedanta Zinc International is mining zinc – a smelter and a refinery would be the centre pieces of the Namakwa Special Economic Zone.
Boegoe Baai/Port Nolloth – feasibility studies are being done into deepening and expanding this harbour to be able to export minerals. This would happen in conjunction with investments into fishing and aquaculture.
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.
Municipal summary of investment opportunities in the Northern Cape:
The Northern Cape has five district municipalities.
1. 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. Although Kimberley is historically renowned for diamond mining, its economy is now driven by its role as the administrative headquarters of the province. 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.
Investment opportunities:
Sol Plaatje University
Kimberley International Diamond and Jewellery Academy (KIDJA)
Mining: diamonds and precious stones
Manufacturing: textiles, agri-processing.
2. 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, 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.
Kathu has a well-developed CBD with shopping malls that arose when iron demand was high. 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.
South African raisins are produced in the Orange and Olifants river regions, which are in the Northern Cape and Western Cape respectively. (Picture Source: Raisins South Africa)
3. 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. The climate and soil support certain niche crops, and the sites and sights are unique to the region, offering opportunities in agriculture and tourism. 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 provincial government has published plans to create a logistics hub at De Aar. 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. The planned development of an industrial park in the town and next to Upington International Airport will boost manufacturing. The main targeted sectors at this stage are in the renewable energy sector, for example, solar panels.
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.
Investment opportunities:
Upington Cargo and Electronics hub: SKA, renewable energy and aircraft storage
Upington International Airport
Orange River Smallholder Farmer Settlement and Development Programme
Tourism: wine tours, adventure and hunting
Upington vehicle testing site
Business Process Outsourcing (BPO)
Find more insight into business and investment in the Northern Cape, read the e-book here:
Enquiries
For more information about a specific investment opportunity, please contact the Northern Cape Department of Economic Development and Tourism:
[contact-form-7 id=”1320″ title=”Northern Cape Department of Economic Development and Tourism”]
According to the recently released Quarterly Labour Force Survey by Statistics SA, 40.1% of people between the ages of 15-34 were not in employment, education or training in Q4 2019, highlighting the fact that skills development is more important than ever. Amid positive job creation news, it is now especially vital for the construction industry to adapt to advancing standards and adequately train the emerging workforce.
The construction industry currently contributes 8.3% to total employment numbers and has shown a positive uptick in job opportunities according to the Career Junction Index – which revealed a notable increase in hiring activity in the construction and building sector.
The opportunities for small, medium and micro enterprises (SMMEs), or subcontractors, have been growing over the past 20 years, especially as large contractors subcontract out the majority of their work, with their main aim being to ensure the employment of site supervision to manage risks, quality and productivity. However, SMMEs in the building sector often do not have the continuous workload required to place young people on apprenticeships. In addition, due to the casualisation of labour, small businesses also cannot sustain employment over long periods.
As such, it is great to see that in the past year, many Centres of Specialisation have been established in the hope that more young people strive to become artisans of the future.
The Department of Higher Education, through the Quality Council for Trades & Occupations (QCTO), has also embarked on developing the skills programmes. These skills programmes often are not scoped by experts in the industry but by instructors from Technical and Vocational Education and Training (TVET) colleges. Once published, these skills programmes will become part-qualifications. This system suits the Collective Agreement as our T4, T3 and T2 will be formally recognised. We are proud that the Master Builders Association in the Western Cape (MBAWC) has a Skills & Education Trust that runs free courses for those already involved in or wishing to enter the construction industry.
These skill programmes assist with growing the workforce in the construction industry.
The Trust will issue a certificate of receipt of donation and these receipts are recognised by all South African National Accreditation System (SANAS) approved verification agencies.
Another advancement for growing access to higher education in South Africa is the new Broad-Based Black Economic Empowerment (BBBEE) Codes of Good Practice amendments which came into effect in December 2019. The amendments have introduced a new scorecard indicator whereby employers can now provide bursaries for tertiary education to students and claim points. We urge any corporates in the industry who are able to provide this opportunity to please do so.
In order for the construction industry to survive and thrive it is vital to invest in the future workforce by way of upskilling and continued learning. It is important to note that ongoing training should be considered a Key Performance Area for each site. If the variety of construction enterprises make every workplace a training area, we will see an improvement in quality and productivity. The MBAWC suggests that each business sends at least one supervisor on a mentorship programme in 2020.
As an industry, it is necessary for members to take up the role of being leaders in training Construction Supervisors, Health & Safety Officers and Apprentices, as well as upskill their workforce through numerous short skills programmes.
Media release by David Maynier, Western Cape Minister of Finance and Economic Opportunities.
Today (08 May 2020), I have written a letter to Minister of Trade and Industry, Ebrahim Patel with an attached submission, requesting him to issue additional directives alongside the Alert Level 4 Regulations to permit online retailers to sell all goods, the delivery of those goods directly to customers and for the importation of those goods to be allowed.
The e-commerce industry in South Africa represents an expansive supply chain of businesses across retail and logistics sectors, and provides an online platform for businesses, especially SMMEs to access and compete in markets where they would ordinarily not have been able to trade. The sector employees at least 40 000 people in South Africa, and given the fact that e-commerce can facilitate trade with minimal human interaction, it could potentially employ a lot more if allowed to expand under Alert Level 4.
Now more than ever, businesses need to be able to continue to trade safely and responsibly to ensure that we save jobs, livelihoods and the economy during the Covid-19 crisis. The e-commerce sector presents an opportunity for just that, as it offers business a means to innovate and adapt during these tough times, with even traditional businesses being able to pivot and continue to operate, even in a limited way, due to its ease of implementation. In this way it is an enabler of competition and access to economic opportunities.
This morning I met with two of the founders of Granadilla Eats, which is an incredible success story of an e-commerce company that has pivoted during this crisis. Prior to the hard lockdown, this company only sold swimwear, but now they deliver fresh produce and other food items right to your doorstep.
Minister Maynier visits Valota Farm.
Speaking to Josh Meltz and Hannah Duxberry from Granadilla Eats, I heard how they have implemented strict health and safety protocols during their packing process, together with contactless delivery, to stop the spread of Covid-19.
I also had the wonderful opportunity to meet Sameena Kariel and Abdurahman Kariel, the owners of Valota Farm in the Phillipi Horticultural Area (PHA). Valota Farm is one of the small businesses whose products, together with others from the PHA farms, are available to buy on the Granadilla Eats website, providing up to 80% of their fresh produce.
Speaking to Sameena and Abdurahman, I heard how the e-commerce platform provided by Granadilla Eats, and their own e-commerce website, has provided Valota Farm with the opportunity to continue their operations and keep farming during this crisis.
Minister Maynier with Sameena Kriel.
The e-commerce sector has already shown that it is able to limit physical interaction and transact through electronic or card payments, making it one of the safest retail options for limiting the spread of Covid-19.
We therefore see no reason why this sector should not be allowed to open up fully and sell all goods through e-commerce platforms. In doing so, we can significantly support jobs and increase economic activity in the Western Cape and South Africa during the Covid-19 crisis.
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