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Northern Cape Business 2021-22

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  • Business
  • Northern
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  • Municipality
  • African
  • Province
  • Industrial
  • Kimberley
  • Economic
  • Upington
  • Mining
The 2021/22 edition of Northern Cape Business is the 11th issue of this highly successful publication that has, since its launch in 2009, has established itself as the premier business and investment guide for the Northern Cape Province. Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication outlines in detail specific investment opportunities that the provincial government has packaged in a variety of sectors. Chief among these are the Special Economic Zones and industrial parks that are designed to act as catalysts for economic growth. Mining and agriculture are the core economic sectors at the heart of many of the offerings, with downstream and related sectors such as manufacturing and logistics offering many opportunities for the investor community.

OVERVIEW the site of the

OVERVIEW the site of the two auctions of karakul pelts that are held annually, karakul being a speciality of the Upington district. Agri-company KLK is the only organisation that handles these pelts in South Africa. Glove-makers in Milan are among the international clients to whom farmers of the dorper sheep breed sell the wrinkle-free skins of their sheep, at good prices. Horse-stud breeding provides yet another exclusive niche. This is a speciality of the area around Colesberg, where the cold evenings and warm days combine to drive out disease and promote strong growth. Among the studs are Henham and Southford, a 900ha property near the Gariep Dam which once was home to the famous stallion ”Damask”. Agro-processing Compared to other types of manufacturing, agro-processing can be scaled up relatively quickly with good financial rewards. It can also be labour-intensive. As such, agro-processing is a key plank in the growth plans of the Northern Cape. Work has already been done in providing manufacturing facilities for rooibos at Niewoudtville and investments have been made in fisheries and a new vineyard development for groups of people who previously had not had exposure to the grape and wine sector. The Northern Cape Department of Agriculture, Environmental Affairs, Rural Development and Land Reform was behind the rooibos tea factory, which now trades as Bokkeveld Rooibos. The factory takes tea from 85 local farmers with the goal of helping to integrate these farmers into the agricultural and agro-processing business chain. Two areas of interest to assist small-scale farmers are being explored with regard to hemp and crops that can produce liquor. The dry interior of the Northern Cape is suitable for the growing of Agave that provides the source material for tequila and there are several other opportunities. The rapidly changing legislative environment for hemp and marijuana holds potential in textiles and medicine. Companies KLK is based in Upington and does much more than karakul pelts. The company’s interests include 19 retail outlets, 12 petrol stations, four Build it franchises and a strong auction division. KLK runs three abattoirs in Calvinia, Carnarvon and Upington that slaughter lamb and beef carcasses. SA Dorper manages the production and export of dorper skins and the production of cattle hides. GWK is another company with its headquarters in the Northern Cape, in this case the town of Douglas. Senwes is one of the country’s biggest agricompanies and its Northern Cape area of operation is mostly around the Vaalharts irrigation area, which is close to its headquarters just over the provincial border in North West, at Klerksdorp. Storage and handling of grains and oilseeds are the speciality of Senwes. OVK controls the large Gariep abattoir at Strydenburg, which has a daily capacity of 1300 sheep, 100 cattle and either 250 ostriches or 750 small game animals. OVK also has trade branches, vehicle dealerships, a finance division and manufacturing facilities for maize meal and wheat meal. Kaap Agri, a Western Cape company, has a significant presence in the Northern Cape and Namibia. ■ ONLINE RESOURCES Northern Cape Economic Development Trade and Investment Promotion Agency: www.nceda.co.za South African Pecan Nut Producers Association: www.sappa.za.org South African Rooibos Council: www.sarooibos.co.za Thoroughbred Breeders Association of South Africa: www.tba.co.za NORTHERN CAPE BUSINESS 2021/22 24

OVERVIEW Water Mines need efficient dewatering systems. Having too much water is not normally a problem encountered in the Northern Cape. The onset of heavy rains in the early months of 2021 created a set of challenges for every economic sector, not least for mining. Rand-Air has recently started offering pumps for rental and the PAS150 HF 300 dewatering pump (pictured) was quickly pressed into service for on-site dewatering to keep mines functioning when the rains threatened to stop mining operations. Rand-Air is part of the global Atlas Copco Group. The Provincial Government of the Northern Cape has introduced GovChat, a social media platform that should increase the level of public participation in local government. It is hoped that this will improve the delivering of services such as clean water and sanitation at municipal level. Six municipalities have been identified for the eradication of informal settlements. A major obstacle in the municipalities of Sol Plaatje, Phokwane, Tsantsabane, Dawid Kruiper, Gamagara and Ga-Segonyana is the lack of bulk water and sanitation facilities. Ring-fenced funding in terms of the Division of Revenue Act has been approved. One of the major private suppliers of water in the province is Sedibeng Water. Sedibeng Water’s Central Laboratory, based at Balkfontein near Bothaville, is accredited by the South African National Accreditation System (SANAS). A new laboratory has been built to monitor the quality of water at the revamped Vaal Gamagara scheme. The laboratory’s four sections cover Instrumentation, Wet Chemistry, Sewage and Microbiology. Two of South Africa’s great rivers meet in the Northern Cape at a point south-west of Kimberley. After absorbing the Vaal River, the Orange River continues westwards to the Atlantic Ocean and provides the basis for agriculture along its path. North of Kimberley, the confluence of the Vaal and the Harts rivers encompasses one of South Africa’s most intensely irrigated areas. The Vaalharts Irrigation Scheme is one of the most productive in the country, covering about 38 000 hectares with a variety of crops. Various water users’ associations (WUAs) representing particular areas (such as the Vaal- Harts) are recognised by the national water authority. ONLINE RESOURCES National Department of Water and Sanitation: www.dwa.gov.za South African Association of Water Utilities: www.saawu.org.za Water Institute of South Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za SECTOR INSIGHT The GovChat social media platform should keep municipalities on their toes. Two of South Africa’s biggest dams, the Gariep and Vanderkloof, also provide water for irrigation and hydro-electric power. Many parts of the province are dry with sections of the north and northwest classified as semi-arid and arid. The southern Kalahari Desert receives rain but the fact that mining is a primary economic activity in the dry regions of the province presents many challenges. The town of Kuruman is an exception in that it has a natural and prolific spring, the Eye of Kuruman. ■ 25 NORTHERN CAPE BUSINESS 2021/22

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