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Northern Cape Business 2022-23

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Since 2009, Northern Cape Business has established itself as the premier business and investment guide to the region. It is unique as a business and investment guide that focuses exclusively on the province. Specific investment opportunities are treated in detail in this journal, with a focus on geographic hotspots that are due to become the focus of sector focused infrastructure development.

OVERVIEW leather are

OVERVIEW leather are farmed throughout most of the province. The province is second only to the Eastern Cape in terms of the number of sheep farmed and it is the fourth-largest wool-producing province based on annual sale of producer lots. The Beefmaster abattoir in Kimberley is one of three abattoirs in South Africa to export frozen beef to China. The company processes and packages about 30 000 tons at the abattoir. Niche markets Rooibos has not yet made a big dent in the 200 000 tons of tea consumed by Japan every year, but sales are growing steadily. Introducing a new variety to a country of tea aficionados is easier than tackling a nation of coffee drinkers. A total of 2 000 tons was shipped to Japan from South Africa in 2018. Rooibos is competing in the “Healthy Tea” segment and a popular restaurant chain’s decision to use the tea as a complement to its pork bone broth has helped to promote the product. Brazil is being explored as a potential market. About 6 000 tons of tea is exported to more than 30 countries and domestic consumption is about 8 000 tons. The South African Rooibos Council states that more than 5 000 people are employed in the rooibos industry. Another niche product of the Northern Cape is karakul pelt, which is a speciality of the Gordonia district of Upington. Agricompany 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 breeding sell the wrinkle-free skins of their sheep, at good prices. Horse-stud breed 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. 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 the 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 2022/23 18

OVERVIEW Water National priority status will assist service provision. Municipalities in the Northern Cape have consistently struggled to supply good services to citizens. With the declaration of the entire province as a Priority Human Settlements Development Area by the national department of Human Settlements, this situation could improve. The Provincial Government of the Northern Cape has also 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. Progress has been made in terms of fixing leaking and burst water pipes and dealing with major blockages in the sewerage system. Six municipalities have been identified for the eradication of informal settlements. Land has been purchased on the N12 near Kimberley where houses will be built once provision for bulk capacity has been made. 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. 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 (pictured) 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 system is one of the most productive in the country, covering about 38 000 hectares with a variety of crops. The scheme is the subject of a governmental feasibility study regarding upgrades and expansion prospects. 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 north-west classified as semi-arid and arid. The southern Kalahari Desert ONLINE RESOURCES National Department of Water and Sanitation: www.dwa.gov.za South African Association of Water Utilities: www.saawu.org.za Water Research Commission: www.wrc.org.za SECTOR INSIGHT A large irrigation scheme may be expanded. Credit: Upington.co.za 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. 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. ■ 19 NORTHERN CAPE BUSINESS 2022/23

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