Page 24 - IDC

6 CITY PRESS, 20 NOVEMBER, 2016

business

A

PROJECT IN NORTH WEST
PARTNERSHIP IN NUMBERS

WITH THE
IDC

3.7m

THE NUMBER OF PEOPLE WHO LIVE
IN NORTH WEST – AMOUNTING TO
6.5% OF SA’s TOTAL POPULATION

R6.3bn

THE IDC’S EXPOSURE IN NORTH WEST –
UP FROM R1.4BN IN 2008

HARD WORK AND OPPORTUNITY David McGluwa (above) is the regional manager at the IDC in North West. Momentous Energy, a solar farm outside Rustenburg, was
funded by the IDC and is 17% owned by the community 21 455
Unearthing good DIRECT JOBS CREATED IN

THE PAST FIVE YEARS

52
business prospects FINANCED IN NORTH WEST

THE NUMBER OF PROJECTS

R11.5bn
There are opportunities out there for intrepid entrepreneurs, but

sometimes you need to know where to find them. The Industrial THE OVERALL AMOUNT INVESTED BY

THE IDC IN THE MANUFACTURING,
Development Corporation’s David McGluwa unpacks the best INDUSTRIAL, MINING AND
AGRICULTURAL SECTORS IN THE
opportunities in North West, writes Gayle Edmunds PAST FINANCIAL YEAR

NORTH WEST
ost people associate North West with boost the beneficiation initiatives in the province. Hydrogen SA, BUSINESSES FUNDED
mining. Though, increasingly, the based at North-West University’s Potchefstroom Campus, is
base of options for driving economic working on exciting game-changing initiatives that will further BY THE IDC
growth in the province is growing. boost beneficiation in the province.
What would you name as the five biggest The province also boasts the only platinum incubator in the
Mopportunities entrepreneurs should look country, named the Seda Platinum Incubator. It has produced
for in the province over the next two years? many entrepreneurs in the jewellery manufacturing space, such 29 500
Firstly, mining still remains the key driver of economic growth as Van Bels Design, Amile Diamond Jewellery and Ditsala Designs
and job creation in the province. However, there are many other and Creations.
sectors that provide opportunities for investors and THE NUMBER OF SOLAR PANELS IN THE
entrepreneurs in North West. One of the IDC’s major concerns is ensuring that POSSESSION OF RUSTMO 1, A
Secondly, the tourism sector arguably provides the biggest communities benefit from the deals that are done, not only
number of opportunities in the province. It boasts two in terms of job creation, but also regarding community RENEWABLE ENERGY BUSINESS
prominent national parks, namely Pilanesberg and Madikwe, ownership.
which are both home to the Big Five. Yes, the IDC funded Momentous Energy, a solar farm outside
Also, there is a lot of tourism activity based around of Rustenburg. This solar farm is 17% owned by the community
Hartbeespoort Dam, Sun City, Bloemhof Dam Nature Reserve, around Marikana. Also, the IDC funded a 26% stake on behalf of 800
the Taung Heritage Route, Taung Dam and Mahikeng. NATURAL BEAUTY Taung Dam on the Harts River the Bakgatla-Ba-Kgafela community in Sedibelo Platinum.
Thirdly, there are also opportunities in manufacturing – not near Taung is a popular tourist destination
only in mining supplies, but in automotive components as well What is the North West branch doing to actively empower
as in the localisation of imported goods, and in the area of youth, women and black-owned businesses in the province? THE NUMBER OF JOBS CREATED
creating cultural artefacts. Of the 52 projects you’ve funded in the past five years, how BY BRITS BAG MANUFACTURING,
Fourthly, in the agroprocessing sector, there are opportunities many have been youth owned, how many owned by A FAMILY-OWNED BUSINESS
to be explored as sunflowers, vegetables and animal feed are all women, and does the province boast a number of black STARTED IN THE 1970s
grown in the province. Also, smart entrepreneurs should explore industrialists yet?
projects such as the Taung irrigation scheme and the The IDC has recently set aside R4.5 billion over the next five
establishment of agriparks. years to finance youth-owned enterprises in South Africa. Of
The fifth would be the growing green economy, where there is that, R1 billion will be offered at prime less 3%. In the past two
space to grow solar power. Waste collection, baling and years, we have approved R124 million to youth-owned entities. 57%
processing are always needed services. We have an intentional and focused strategy to fund many more
youth-owned entities in the province.
The whole country faces unemployment and stagnated The IDC has also funded 13 projects in the province in which
economic growth. What specific challenges do businesses in women have a significant stake. THE PERCENTAGE OF THE CAPITAL
North West have to overcome and how does the IDC help Also, the IDC intends to disburse R23 billion to black GOODS BUDGET SPENT BY
them? industrialists over the next five years. Currently, 90% MERAFE RESOURCES ON
The Industrial Development Corporation (IDC) has invested a [R5.6 billion] of the IDC’s funding goes to black-empowered BEE-ACCREDITED SUPPLIERS
significant amount in the economy of North West. Exposure WEALTH The Seda Platinum Incubator has produced companies in North West.
grew from R1.4 billion [2008] to R6.3 billion currently, thereby jewellers such as Ditsala Designs and Creations
creating 21 455 direct jobs [on the factory floor]. How much money has the province put aside for projects in
I think the biggest challenges businesses are faced with in the next two years? 26%
North West are the issues around the cost and reliability of The IDC plans to disburse R100 billion over the next five years
electricity, instability of labour and dysfunctional municipalities. into the South African economy. Unfortunately, the IDC doesn’t
allocate an amount per province. It is the prerogative of the
The IDC has funded 52 projects in the province. Which of provincial office to ensure that the province gets its equitable THE PERCENTAGE OF SEDIBELO
these did you find to be a surprising fit for a province stake. North West currently contributes 6% to South Africa’s PLATINUM THAT IS OWNED BY
defined by mining in the mind of the public? gross domestic product and I am confident that we can disburse BAKGATLA BA-KGAFELA TRADITIONAL
We have a diverse portfolio of projects ranging from mining a minimum of R6 billion into the North West economy over the
and tourism to agriculture, manufacturing and healthcare. next five years. AUTHORITY
During the past two years, we funded youth-owned businesses in
North West to the tune of R124 million, creating 109 direct jobs. What are your top five tips for entrepreneurs in the
We also funded a subacute hospital, Care Cure Thaneze in province who are about to walk into your office to ask you
Mahikeng, which is majority owned by black women and is to fund their idea or help them upscale their business? R170m
doing well. 1. Entrepreneurs must spend time and resources to test the
feasibility of their projects. Do your homework, and make sure
What are the specific benefits North West offers MINERALS The IDC funded part of Sedibelo Platinum you understand the business model and the risks involved.
entrepreneurs who are looking for opportunities in the mine on behalf of the Bakgatla-Ba-Kgafela community 2. Identify market gaps and come up with innovative solutions THE AMOUNT APPROVED FOR
province? For example, the Northern Cape has all the space to address those market gaps. Stop copying ideas/initiatives from YOUTH-OWNED BUSINESSES
to fill with solar panels and the coast has all that wind to province. If successfully implemented, this will open other provinces or other entrepreneurs. Constantly look for
drive energy. opportunities for agroprocessing and will position the province those game-changing opportunities.
The Platinum Valley Special Economic Zone near Mogwase at the forefront of the agricultural value chain. 3. Get leverage from the natural and available resources in
[close to Sun City] will certainly provide opportunities for the your area. We don’t have an ocean in North West, but we do
beneficiation of platinum group metals. A constant in any discussion around the economy is driving have a lot of sun, minerals and natural beauty. R5.6bn
Also, the North West Development Corporation owns beneficiation in mining. Do you see more openings for 4. Successful entrepreneurs have used their experience, skills
numerous factories with available electricity across the province clever entrepreneurs to get into this business? What have and networks. Avoid venturing into a business where you don’t
and parts of Gauteng [Ga-Rankuwa, Hammanskraal, etc] for been the most exciting beneficiation programmes you’ve have the relevant skills, experience or networks. THE AMOUNT DISBURSED TO BLACK-
companies that require factory floor space for their been involved with since the IDC opened offices in the 5. Be careful when someone wants to sell his/her company.
manufacturing operations. province in 2008? Always try to establish the real reason they want to sell. Nobody EMPOWERED FIRMS IN NORTH WEST
Opportunities also exists at the planned agriparks across the The Platinum Valley Special Economic Zone will certainly sells the hen that lays the golden egg.