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Northern Cape Business 2020/21 edition

  • Text
  • Development
  • Africa
  • Tourism
  • Sectors
  • Agriculture
  • Trade
  • Business
  • Investment
  • Infrastructure
  • Cape
  • Mining
  • African
  • Zinc
  • Kimberley
  • Province
  • Municipality
  • Economic
  • Northern
The 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide for the Northern Cape Province. Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged, investment opportunities. These include plans for the establishment of Special Economic Zones (SEZs) within the province, which have specific incentives designed to make investment into the Northern Cape even more attractive. The hi-tech exploits of astronomers and engineers in search of a landspeed record are the focus of an article on engineering sector while the rapidly expanding solar energy sector which continues to attract significant capital is discussed in some detail.

OVERVIEW Banking Solar

OVERVIEW Banking Solar projects are attracting financial backing. With the renewable energy sector booming in South Africa, a whole new sector in need of project funding has opened up for banks. The Northern Cape has attracted a high percentage of independent power producers which have won the right to build power plants. The other new sector is astronomy as represented by the Square Kilometre Array project. The education sector has received an investment by way of Absa Bank which has given R4.5-million to Sol Plaatje University to develop the field of Data Science. The Northern Cape is also taking an interest in the activities of the newly-formed BRICS Development Bank. Of particular interest is the bank’s initiative in developing an infrastructure roadmap and a SADC Industrialisation Strategy. News that a mutual bank in Limpopo had been hollowed out by corrupt practice put the spotlight on banking practice in South Africa. Despite this experience, the appetite for mutual banks is strong, given the nature of the South African market. The Young Women in Business Network (YWBN) intends applying for a mutual bank licence and Bank Zero will use the mutual model. Other new entrants such as TymeBank (free transactional accounts) and Discovery Bank are introducing innovations to the South African banking sector. South Africa’s four big retail banks (Nedbank, Absa, Standard Bank and First National Bank) have a solid presence in the major towns in the province. Relative newcomer, Capitec, is rapidly moving towards Online Resources Association for Savings and Investment South Africa: www.asisa.org.za Auditor-General of South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Chartered Institute for Government Finance, Audit and Risk Officers: www.cigfaro.co.za Sector Insight New banks are shaking up the sector. being part of a Big Five and it has announced that it will partner with Centriq Life to enter the insurance market. Capitec has no fewer than18 branches in the Northern Cape. The fact that it has four branches in Kuruman, one more than in Upington, suggests that Capitec has successfully sold its low-cost banking model to mine workers. The established banks have dedicated units such as Nedbank Agribusiness. Focus areas for this unit are agronomy, livestock, horticulture and secondary agriculture which covers agricultural processing and storage. Nedbank has a total of 27 business managers in Nedbank Business Banking for the province and the neighbouring Free State. The Land and Agricultural Development Bank of South Africa (Land Bank) is a major participant in the Northern Cape financial sector and the Industrial Development Corporation (IDC), as an equity investor, is another important player. Most agricultural companies in the Northern Cape have financing and services divisions, as one would expect in a province with a strong and varied agricultural sector which exports much of its produce. ■ NORTHERN CAPE BUSINESS 2020/21 52

Development finance and SMME support Local businesses are thriving in support of mining. Opportunities for building and civil engineering contracts are hard to come by in Danielskuil, population 13 597. The tiny town, which lies north-west of Kimberley, falls within an area rich in mining and for father and son Paul and Marvin Oss, that spelt opportunity. With access to work at Kolomela Mine through Kumba Iron Ore’s inclusive procurement project, P&E Artisans (pictured) now has a staff complement of 35 with plans to grow to 100 in five years. Work on the mine included making brackets and erecting steel structures. In 2017 Kumba Iron Ore spent R36-billion through its inclusive procurement and enterprise development initiatives. The province’s biggest new mine, the Vedanta Zinc International mine at Aggeneys, spends generously on corporate social responsibility, of which supplier development forms a large part. Some 45 black-owned businesses have so far been supported on the project, with the 12 new businesses created having tripled in value since 2015. The Provincial Government of the Northern Cape is focussed on two sectors for SMMEs, agriculture and tourism. The intention is to link 80 young agricultural graduates for in-service training with commercial operations for two years. These young people would then be expected to start small businesses. Tourism is seen as a sector where the barriers to entry are low, and the growth of options in the heritage tourism sector should provide further opportunities for small operators to begin or grow their businesses. SMMEs will be catered for in the planned Kathu Industrial Park which is being supported by the Industrial Development Corporation (IDC) and companies in the mining sector. The focus of the park will be metals. The park’s infrastructure will enable smaller companies to be Online Resources Department of Small Business Development: www.dsbd.gov.za Industrial Development Corporation: www.idc.co.za Northern Cape Economic Development Agency: www.nceda.co.za Small Enterprise Development Agency: www.seda.org.za Sector Insight Agriculture and tourism are good sectors for SMME growth. OVERVIEW in a position to tender for supply contracts to mines. The Industrial Development Corporation is one of the biggest development finance operators in the Northern Cape. As part of national government’s renewable energy programme which aims to get private investors into the sector, the IDC has approved funds for 12 renewable energy projects in the province, including Abengoa’s Khi Solar One concentrated solar power farm near Upington and the Kakamas Hydro-Electric Power plant on the Orange River. The Small Enterprise Development Agency (Seda) is a partner in the Kimberley incubation hub related to the Kimberley International Diamond and Jewellery Academy. The Kimberley Diamond and Jewellery Incubator (KIDJA) helps establish SMMEs, supports existing business and trains students. There are six Seda branches in the province and a satellite office of the Seda unit known as the Zenzele Technology Demonstration Centre, offering technical and research support to small-scale mining and mineralrelated enterprises. ■ 53 NORTHERN CAPE BUSINESS 2020/21

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