Current Edition >> Archive Section >> Special Features >> October 2002
Having repeatedly represented the Free State Province with distinction at various national and international exhibitions - winning for instance gold for marketing stand excellence at SAITEX - the Dept. of Tourism, Environmental and Economic Affairs is to have a 54m² exhibition stand at the SA Business Week being held 30 August to 2 September 2002 at Gallagher Estate, Midrand.
SA Business Week encompasses four fully-fledged but inter-related exhibitions under the same roof, viz.: The Matchmaking Opportunity Exhibition (trade and investment), the BIZ Expo (franchise and business opportunities), the Black Economic Empowerment Exhibition and the ESKOM Small Business Opportunities Exhibition.
Amongst the 60 000+ delegates that will be attending the summit, 15 000 are expected to be prominent business people and those are the ones we as Department of Tourism, Environmental and Economic Affairs, are targeting for investments in the Free State Province. We are therefore of the opinion that this is an opportunity not to be missed and consequently we have identified the following sectors for Trade & Investment promotion:
Arts & Crafts - depicting the cross-cultural diversity that unites us
Clothing & Textiles - the unique styles that are produced only in the Free State
Wines - when people thought that all the best ones are from the Cape
Jewellery - the unique and authentic styles from our own Jewellery Hub
Plastics - currently manufacturing for the best in the world and growing in exports.
At our exhibition stand we will exhibit products and promotional material from these sectors. Based on our experience and professional knowledge, the Department is designing and preparing an exhibition stand that will reflect the Free State province and its immense advantages and potential in the best possible way. As a department we are pooling all our resources together in order to ensure that the Free State will be presented at this prestigious event and before this eminent audience in a manner befitting our proud province. Various Directorates are making their specialized inputs as follows:
Tourism - will be showcasing our tourist attractions which we believe are unique, untapped and are not known to most South Africans.
Environmental Affairs - will highlight one of their pilot projects, the Wetlands Scientific Research Project.
Trade and Investment - is preparing to attract buyers for top quality Free State export products, endeavouring at the same time to attract potential investors to the Free State province with its wealth of potential. This is being supported by Maesk Sealand, a major international shipping company which has decided to open office in the Free State - only the second inland office in South Africa outside of Johannesburg and a clear indication of what the future holds for our province.
Our MEC, Mr. Sakhiwo Belot, remarks:
For a long time the Free State Province has geared itself to become internationally competitive. We realize that our locally-produced products have to be able to compete with the best in international marketplaces. Therefore we have worked hard to upgrade ourselves in this regard and to expose our producers to foreign competition. At this stage we are confident that we are passing the test, while we have developed the necessary international marketing skills and expertise. On the other hand, we have excellent facilities and incentives within our province in place to accommodate foreign investors. Therefore, our message to all outside investors are clear: The Free State has pleasant surprises for you in store - just visit our stand at SA Business Week !
"However, also at local level within the Free State Province my Department is striving to enhance and encourage socio-economic development to the highest possible degree. As a result, the Department is launching on 23 August 2002 an imaginative project on an unprecedented scale with the dual purpose of creating awareness about a sustainable environment and to promote tourism entrepreneurship. The project is the Conservation & Tourism Festival, more details of which are being for this feature.
"Thus, to summarize, from the side of my Department we are committed to make sustainable development a reality for the Free State - now and in the future.
Free State entrepreneurs and SMME's still wishing to join up with our stand at SA Business Week, are welcome to contact us and we will gladly consider your request.
Enquiries: Tembeka Mhlekwa tel: (051) 403 3705, cell: 082 570 4403 and email: mhlekwa@majuba.ofs.gov.za.
Rationale
The Department of Tourism, Environmental and Economic Affairs is arranging a Provincial Conservation & Tourism Festival on 23 August 2002 in support of the World Summit on Sustainable Development, so as to:
promote the sustainable development, utilization and protection of our natural and cultural resources
establish responsible tourism, thus ensuring environmental sustainability which promotes job creation and a better quality of life
empower our people and communities through participation, environmental education and other forms of capacity building
stimulate the Free State Province through Districts, Municipalities, the Private Sector, NGO's, Political Organizations, etc. to map out for the present and the future scenarios for sustainable development.
As an integral part of this Department's Strategic Plan, the Festival is not only contributing to the WSSD events, but constitutes a people-centred programme of action that will profile this Department integratively with other stakeholders. As such the Conservation & Tourism Festival on 23 August 2002 is the first of its kind in the province and is set to showcase what diverse stakeholders can do through integrative delivery.
Suffice to say that this event will also be held as part of LETSEMA in support of recognising the contribution being made by WOMEN in the transformation of our society. It is within this context that the myriad of activities will bear testimony to the recognition of WOMEN as the overall theme.
It is on this premise that this Department is inviting amongst others the following stakeholders to be contributory participants during this Festive Day with its programme of action aiming at integrated nature-based conservation and tourism management and which is cornerstoned on the critical three factors of:
People
Planet
Diversity
Policy Framework
Bio-diversity and conservation management are key considerations which need to be taken into account in any socio-economic planning especially when dealing with community-based resource management activities. Conservation, tourism, eco-tourism, environmental awareness and education can never be divorced from each other as they determine the critical question of sustainable development.
Through the Conservation & Tourism Festival 2002 this Department intends to chart a programme of action that will set in motion the integration of people with their daily living environment and conditions, whilst simultaneously identifying and implementing solutions to sustainable development.
Against this background we are involving a host of compatriots including the private sector and other spheres of government, particularly those who are affected adversely by development as part of social ecology.
Project Dynamics
Because of the integrative nature of this project, full participation of the following lead Provincial Departmental Directorates will be realised:
Conservation
Environmental Affairs
Tourism and SMME's
The Conservation & Tourism Festival on 23 August 2002 is to be held at Loch Logan Park, Bloemfontein, as that specific environment promotes bio-diversity and conservation management within an eco-tourism based surrounding, with a zoo nearby.
Critical care will be taken to ensure that the project is linked to the theme of empowering women in August and as a build-up to the WSSD. Thus the project will be linked to employment creation (albeit temporary), as well as the transformation of nature-based tourism and conservation management by focusing on Community Public Private Partnerships (CPPP's). In this manner it is aimed to lay the foundation for sustained conservation awareness as a critical factor in present and future socio-economic development.
Stakeholders
Through the Office of the Head of the Department (HOD), the following stakeholders have already been fully involved in the planning process, amongst others:
Chairpersons of District and Municipality Portfolio Committees (Conservation and Tourism)
Environmental Awareness community groups
Selected NGO's
Private Sector companies
Biological Gardens and Museum Personnel
Schools and Tertiary Institutions
Concept Formation
The Conservation & Tourism Festival is being planned around the following concept structure with a view to maximum impact:
23 August 2002 will be an Open Day in all Resorts/Reserves of the Department throughout the Province with no entrance fees being paid - all other services will, however, have to be paid for at normal rates.
Free entrance at the Bloemfontein Zoo to profile conservation, bio-diversity and eco-tourism awareness with Departmental and Municipality employees engaging attendees in educational tours.
A huge marquee tent that can accommodate 30 promotional stands will be erected to profile conservation, tourism and environmental awareness activities, including promotional stands of other stakeholders.
The marquee will be positioned next to the Zoo so as to encourage a free flow movement of people between the park and the Zoo.
Cultural music and performances by bands will be rendered and done on a rotational basis to show and promote togetherness in diversity.
A potjiekos pot with game meat stew that can feed 8 000 people will be prepared to feed attendees free of charge.
Refreshment stalls will be sourced from HDI's as per the preferential procurement framework promoting and empowering women.
We know that this is indeed an ambitious event, but through a strong sense of common purpose it could be achieved. As a matter of critical importance we dare not fail as the custodians of public interest. Our overriding aim is the promotion of conducive and sustainable conservation within nature-based tourism that promotes bio-diversity and environmental awareness.
Invitation
Herewith the attendance of every Free Stater at this Conservation and Tourism Festival is being sincerely extended - we promise you an experience of a lifetime!
Enquiries: Monde Walaza (051-403 3838 / 082 828 9259)
On 25 July 2002 the Free State Dept. of Agriculture launched its new three year Strategic Plan for 2003-2005 at Glen Agricultural College near Bloemfontein. The plan sets out a detailed program of action, prioritising top of the list agro production and processing, job creation and poverty alleviation.
The plan has been initiated by MEC for Agriculture Mann Oelrich, who took office a year ago in June 2001 and who, together with a new management team, is generally regarded as having drastically improved the operational effectiveness of the department. A new relationship of co-operation has also been established with the European Union office in South Africa.
The Dept. of Agriculture has also recently relocated its head office from Glen to the CBD of Bloemfontein at the ABSA building in Aliwal Street, while all the Glen facilities have been allocated to the agriculture college.
In her keynote speech at the launch, Premier Winkie Direko emphasizes the backbone role of agriculture in the Free State economy, saying everywhere in the world agriculture fulfills a pivotal role in economic life.
The new switchboard number of the Dept. of Agriculture is (051) 448 5008.
Volgens 'n opname wat Sentrale Besigheids Ingelyf van Bloemfontein onlangs onder hul lede gedoen het oor (on)tevredenheid oor dienslewering deur die Kamer, is bevind dat meer as 70% van SBI-lede sκ lidmaatskap van die Kamer is goeie waarde vir geld, maar daar is ruimte vir verbetering. Die hoofdoel van die opname was om vas te stel watter dienste lede graag wil ontvang en om bepaal of dit moontlik sal wees om SBI-lidmaatskapgelde in die toekoms vas te stel aan die hand van spesifieke dienste wat lede by die Kamer sal koop.
Alhoewel 30% van die lede gesκ het hulle ontvang nie goeie waarde vir geld nie, het die meeste geen rede vir hierdie standpunt verstrek nie. Die wat wel redes aangevoer het, sκ dat hulle nie voldoende ondersteuning van SBI ontvang nie, dat hulle nie betrek word by aktiwiteite van die Kamer nie of dat lidmaatskapgelde te hoog is. Die opname toon dat die meeste lede (84,5%) by SBI aansluit vir die netwerkgeleenthede wat dit bied en om meer blootstelling vir hul besighede te verkry. Op die vraag of die Kamer voldoende netwerkgeleenthede vir sy lede skep het slegs 5,7% nee gesκ. Byna driekwart van die lede glo dat SBI 'n baie belangrike rol in die samelewing speel en 66% is tevrede dat SBI genoeg doen om koop Bloemfontein te bevorder.
Watter dienste, behalwe die wat reeds deur SBI verskaf word, sou lede graag wou ontvang? Lede stel blykbaar nie veel belang in 'n navorsingsdiens nie, maar daar is wel heelwat belangstelling in 'n databasis met inligting wat hulle teen betaling van 'n webwerf sou kon onttrek. Lede sou graag die volgende inligting oor Bloemfontein in die databasis ingesluit wou hκ: Algemene sakestatistiek, plaaslike markverwante inligting en arbeidsverwante inligting.
Ander interessante feite wat uit die opname na vore gekom het, is dat sommige lede beweer hulle nooit enige inligting van SBI ontvang nie, terwyl ander gekla het dat hulle toegegooi word met te veel inligting vanaf SBI. Daar was ook 'n aantal lede wat gemeen het SBI is te konserwatief en Afrikaans. Sommige lede het ook gevoel daar nie genoeg gedoen word om swart sakelui bewus te maak van SBI nie. Ouer lede, asook die groter lede, was meer krities teenoor SBI as die kleiner en jonger lede.
Die resulate van die opname word tans deur die Kamer verder verwerk. Navrae (051) 447 3368.
The Free State Development Corporation (FDC) is one of the largest property owners in the Free State and certainly the largest owner of developed industrial property. To this the huge FDC industrial complexes at inter alia Botshabelo, Thaba Nchu, Phuthaditjhaba and Industriqwa bear witness. As such the FDC is directly supporting a host of investing industrialists in the province, while providing an excellent start-up foundation for new investors. To find out more about this and the unutilised opportunities currently available, The Business Bulletin talked to the Property Portfolio Manager of the FDC, Mr. Wally Smit.
First of all, briefly in a bird's eyeview, give us an idea of the extent of the FDC's industrial properties in the Free State ?
The FDC has four industrial areas situated in Botshabelo, Thaba Nchu, Phuthaditjhaba (Qwa Qwa) and Industriqwa near Harrismith. Units vary in size and we can offer prospective manufacturers sizes ranging from 40 m² to 15 000 m² depending their specific needs. The total capacity of our industrial portfolio amounts to ±680 000 m², consisting of 421 units larger than 500 m² and 325 smaller than 500 m².
What are the four main focus areas of the FDC as regards its property portfolio ?
Our four main focus areas are Botshabelo and Selosesha in the BBT area and Phuthaditjhaba and Industriqwa near Harrismith in the Eastern Free State. Apart from its industrial properties, the FDC also owns various commercial properties i.e. shopping centres, loose standing shops, filling stations, a hotel and a huge residential portfolio including flats and townhouses.
Then as part of its housing development function, the FDC also finances residential properties from R20 000 upwards. At Grasslands on the eastern side of Bloemfontein / Mangaung / Heidedal, the FDC has established a housing scheme consisting of ± 1100 fully serviced sites. In this respect, prospective homeowners are welcome to discuss their needs with our financing consultants.
What, in a nutshell, does the FDC offer to industrialists or prospective business occupants of commercial properties who wish to enter into partnership or joint ventureship with the FDC ?
As part of our drive to promote industrial development, the FDC offers various incentives to investors establishing in our industrial areas. Depending on the size of the investment and the job opportunities being created, the following incentives could be awarded to investors:
A rental holiday of up to 6 months;
Reduced rental rates;
Electricity and water at very competitive rates;
Financing of projects at preferential interest rates;
Assistance to apply for national incentives; and
Joint venture partnerships.
What tangible results have the FDC achieved lately in the application of its property portfolio vis-ΰ-vis economic development in the Free State ?
Despite a decline in the Free State economy as a whole, the FDC has managed over the past two years to attract various new manufacturers into the province creating more than 3 000 job opportunities. Through its total property portfolio, the FDC is at present providing the basis to sustain ± 33 000 job opportunities in the areas of operation.
What should also be mentioned, is that amongst the FDC clientele are manufacturers who are so successful in their respective fields that over the past few years have won most of the categories of the annual Premier's awards for export excellence, such as Boxmore Plastics, Amica Fashions, White Point, and others.
From your particular perspective, your summarized message to prospective investors in the Free State ?
We can indeed say that the Free State is the Golden Province, because it is so centrally situated in relation to the four main metropolitan regions of South Africa, with major road and rail networks linking the markets and harbours of the country through the Free State. Add to that an abundance of well-trained labour, a stable labour relations set-up, virtual unlimited water supplies and an abundance of natural resources and locally-produced materials and you have indeed one of the best industrial establishing fora in South Africa.
The FDC duly utilizes and combines these strengths in order to offer a one-stop industrial service for all possible foreign and local investors. This we cap with our excellent industrial incentives for entrepreneurs.
Any investor needing more information on the services by the FDC, is welcome to visit our website at www.fdc.co.za or contact either myself at 051-4474220 or one of our regional offices.
Viewed from a provincial management position, which would you briefly highlight as currently the fastest-moving lanes on the North West economic highway?
The statistics on the contributions to the GGP of the North West Province for the period 1990 to 1999 indicates that the Transport and Communications Sector was the fastest growing sector in the province at an average of 2.9% per annum. This was followed by Agriculture and the Wholesale and Retail Sectors, which both averaged 1.7% per annum. We could, however, also report that, whilst there has previously been a negative growth in the mining sector of minus 5,1% in the same period, the province has since recently witnessed a +5% GGP growth due to the high performance of the platinum metal group in buoyant international markets.
In 2000 the North West Province was the fastest growing province in South Africa with an estimated GGP growth rate of 5.4%. The North West economy is producing roughly R50 bn (US$ 5 bn) of output per annum, mainly in the mining and agricultural sectors. The province's manufacturing sector rests mainly on mining and agriculture and as such vibrant manufacturing sectors are to be found in the food processing, basic and fabricated metals and motor vehicle manufacturing sectors.
The North West is also an important tourist destination and has due experience in the management and marketing of hotels, game parks, guesthouses and attractions. Sun City, Lost City, Madikwe and Pilansberg are well known internationally and large international events such as Million Dollar Golf, Miss Universe, the Aardklop National Arts Festival, the Inter-Congolese Dialogue, to mention but a few, have given the province a high tourism profile. Moreover, at the recent Tourism Indaba in Durban the exhibition by the North West Parks and Tourism was awarded the best Provincial stand.
As far as the hottest lane is concerned, the province is positioning itself as a gateway to Africa on the coast-to-coast Spatial Development Initiative (SDI) between Mozambique and Namibia. To this end we have prioritized the development of the Platinum Highway, while we are currently investing in the strategic development of its international quality airports at Pilanesberg and Mafikeng. Recently the province applied for Industrial Development Zone (IDZ) status for Mafikeng Airport and created a special vehicle, the Mafikeng Industrial Development Zone (MIDZ) Company, to facilitate this. In support of these developments the province is also investigating the development of two further SDI's, namely the Western Frontier SDI between Mafikeng and Taung and the N12 SDI between Potchestroom and Klerksdorp.
What, summarized in a nutshell, is your Department doing / offering for the SMME sector in the province?
The North West Province has always been a pace-setter, internationally recognized in thinking about and supporting small businesses. Indeed this is appropriate, given that more than 90% of all businesses in our private sector are SMME's. In 1997 this province was one of the first in SA to adopt a fully-fledged 5-year SMME development strategy, which was hailed as a model by the United Nations and lead to the formation of a number of Entrepreneurial Support Centres (ESC's).Furthermore, as indicated in my recent Budget Speech on 4 May this year, we have implemented a business development service program through our Millennium Development Fund as part of a strategy to promote and support the SMME Sector in the Province.
The province also realizes the importance of ensuring that entrepreneurs are equipped with the right skills and throughout our education programs entrepreneurship development receives high priority.
In August, the Southern African Entrepreneurship and Small Business Association (SAESBA) will be hosting its annual conference at Sun City.
Your views on the manufacturing sector in the province, especially in light of the opening of Westmac?
The Manufacturing sector's annual contribution to the GGP of the Province has remained stable at an average growth of 8.3% between 1990 and 1999 and this represents a growth of approximately R0,8 billion per annum. It should therefore be acknowledged that the establishment of WESTMAC was timely in this regard as it will provide the necessary manufacturing technology and information support as well as setting the required product and quality standards that will ensure a productive and competitive manufacturing industry for our Province.
The Province is the only one in SA where a firm-level survey has been carried out each year since 1999. From this survey it has been found that the average weighted employment was 65 workers and average weighted sales R14 million per annum per firm in manufacturing. The survey also found that labour productivity in the North West was around US$ 15000 in value-added annually - much higher that in any other Sub-Sahara African country, including Mauritius.
Your brief and to the point message to the private sector in North West Province, please?
The North West Province understands very well what entrepreneurs need to prosper and the province is doing everything possible to create those conditions. Amongst these is that the business sector needs a stable, trustworthy and financially responsible and prudent government. We have provided that and those involved in the North West business sector will vouch for the fact that this government is open, transparent and engaging its private sector on a continuous basis. Another prerequisite is that the business sector needs diversity and opportunities. Invest North West have more than a 100 possible investment opportunities identified on their books within one year of setting up shop in Rustenburg. They can provide expert assistance and information on many investment incentives to interested entrepreneurs wishing to re-locate and invest in the province.
Therefore my message to both existing and potential investors is that the envisaged growth targets for the economy of the province will only be successfully achieved through productive participation of enterprising entrepreneurship from the private sector. Such participation and partnership is needed to produce that spark that could really ignite the economic engine of the North West province.
Why, again in a nutshell, should an outside or foreign investor invest in the North West Province, i.e. what is your real competitive advantage?
In a nutshell, the North West Province has:
A supportive and stable provincial government and enthusiastic local councils, serious about creating a conducive business and investment environment.
A comprehensive road and rail network.
3 identified and scoped spatial development initiatives.
1 million square meters of available industrial land and factory space.
Plans to develop an IDZ around the Mafikeng International Airport.
In 1999/00 the GGP of the province grew by 5,4%, the highest growth in the country.
R740m of investments, with a potential to create 4 000 new jobs were announced last year.
A large no of international companies such a Bader Bop, Lear Corporation, Samsung and Tiger Wheels are already established in the Province.
R3 - 5 billion of new investment in the mining industry has already been earmarked for the province over the next 3- 5 years.
A number of new viable projects in the mining, tourism, agriculture and manufacturing sectors have been identified and are currently being promoted.
Therefore, we as a province are serious about business and we invite similar minded organizations and institutions, that are able to add value to the trade and investment value chain and who would like to make a return on their investment, to join us in the North West Province - the ideal business location is southern Africa.
Abie Mokhele, duly qualified in mining engineering and having earned his salt in corporate mining, made the cross-over to mining entrepreneurship so successfully that he is now in charge of a unique, highly specialized mining contracting company operating nationwide.
However, at his head office in Klerkindustria, Klerksdorp, Abie is still the down-to-earth, wide-awake fellow who graduated in 1989 as mining engineer at Wits Technikon. Although a mover in business, it takes shoving and pushing to position Abie Mokhele for an interview. However, The Business Bulletin managed to achieve this elusive objective and learned that after an initial stint as learner official in mining, Abie joined De Beers in Kimberley, where he obtained his Mine Manager's certificate in 1993.
It is evident that apart from his professional capability, one of Abie's exceptional strongpoints is his communication skills and human relations. He relates equally well and easy with workers, middle managers and top management, always generating around him a strong team spirit.
In 1996 Abie felt it was time for a different lane in mining and he joined a small mining contracting firm based at Klerksdorp in a joint venture and formed Thaba Nchu Mining & Construction (Pty) Ltd., trading as Group T. According to his co-directors, mainly as a result of Abie's expertise and leadership, the new venture bloomed and simply took off. Group T is a mining contracting enterprise which does underground operational work for the large mining corporates in South Africa with unique equipment that Group T is manufacturing themselves. Abie's biggest contribution is that he brought a civil engineering culture into the mining business.
Group T first of all built their own custom-made workshops in which they then design and produce their own highly-specialized machinery and equipment for establishing underground tunneling for mining corporates, as well as physically exploiting mineral ore, like gold, diamonds and copper. Establishing and reinforcing mine tunnels with shotcrete is major and critical business, with an estimated 10% of all cement in South Africa going underground. This work Group T does with robotic wet shotcrete machines, of which the Mad Max III is the best-known model.
The demand for the services and machinery of Group T is tremendous and in order to comply, the Group has been divided up in various, self-sustaining and autonomous companies serving different geographical areas, viz TBM Mining North West, TBM Mining Phalaborwa, TNC Mining Northern Cape, TFS Mining Free State, TGP Mining Gauteng and TBM Plant Klerksdorp.
The head office is at Klerksdorp, where it occupies an industrial site of some 15 000 m², of which 2500 m² is under roof. It includes sophisticated workshops and a complete assembly line, where raw material comes in and finished products are being delivered. As such it is one of the most modern in the country, with zero safety tolerance and going for ISO 9002 certification.
In total, Group T is creating jobs for over 1 000 people. Mining corporates for whom they work, include Anglo American, De Beers, Rio Tinto and Goldfields SA.
Although complete market leaders in their field, Group T re-invest just about its entire nett earnings on a monthly basis back into plant research and development with a view to continually upgrading and progressing. In order to maximize in this respect, Group T has just entered into a joint venture with next door neighbours Rotech Wear Industries CC of Klerksdorp.
In conclusion, Abie's co-directors, Jan Heyneke and Geoff Nye, emphasize the key role which Abie has played in what has been achieved by Group T thus far. They say Abie has earned his spurs purely on merit and achieved success through a totally integrated mining approach. Although a tough taskmaster, he leads by example, realising that he can only achieve together with the aid of other people. Today Group T is a fully-fledged equal opportunity enterprise.
Looking at the present scope of operations of Group T, it is clear that business-wise the company - and the man at the helm - is airbone and heading for great destinations.
Mission statement
To contribute to the safety and profitability of the mining industry, by providing a multi-disciplined service through technology and people.
Qualities
Equal opportunity company
Custom-built company to suit client's needs
Longevity on contracts
Long-term track record
Mass mining experience
Civil engineering culture in mining environment
Experienced with remote area mobilization
Close working relationship with major suppliers
Low overhead cost structure
Stable labour pool to draw trained personnel
Safety
Safety policy: Zero tolerance
Safety philosophy: Profitability
Conformance to specifications: SABS - ISO 9001/1994
Directors
Abie Mokhele - Managing
Jan Heyneke - Mining
Geoff Nye - Civils construction
Head office:
PO Box Box 2227 Klerksdorp 2570
Tel: (018) 462 1419 Fax: (018) 464 2202
Email: thaba@lantic.net
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