Latest news with #R100-million
The Citizen
9 hours ago
- Business
- The Citizen
Multi-billion Limpopo mega-project has ground to a halt
Makhado Special Economic Zone, announced in 2018, was intended to attract investments of R40-billion. The mega industrial project in the Musina Makhado Special Economic Zone has ground to a halt. Photos: supplied by Living Limpopo The Musina Makhado Special Economic Zone in Limpopo, announced in 2018 by President Cyril Ramaphosa, was intended to attract investments of more than R40-billion. But seven years later, the project has all but ground to a halt. Only one company has made a firm commitment to invest. Though more than R100-million has been spent, there are no roads, electricity or water connections; and the company contracted to build roads has terminated the contract. However, the chair of the board says a turnaround plan is in place and construction on the first infrastructure projects will start in September. Seven years after its launch by President Cyril Ramaphosa, the multi-billion Musina Makhado Special Economic Zone (MMSEZ) in Limpopo is at a standstill. R67.5-million has been spent on consultants and R50-million on roads and infrastructure. But there is no infrastructure, no electricity connection, no roads and no water. Described on its website as 'a flagship of the Limpopo Provincial Government' the MMSEZ is 'a green field investment platform consisting of two sites' – Artonvilla, near Musina, intended for light manufacturing, and Mopani, near Makhado, intended for heavy industry. The zone claims to offer 'state of the art logistics facilities promoting operational excellence' But though the MMSEZ was touted to bring in R40-billion in investments, so far only one company has made a firm commitment to invest. ALSO READ: Revival of job-creating initiative in Limpopo A report by the chair of the MMSEZ board, Nndweleni Mphephu, to the Limpopo Economic Development, Environment and Tourism department, shows how little has happened in what was to be a mega industrial park in the heart of the Limpopo Valley. The report, dated 28 May, follows questions in Parliament and an oversight visit to the area by members of the Limpopo Economic Development, Environment and Tourism portfolio committee. According to the Minister of Trade Industry and Competition Parks Tau, R2.27-billion would be needed for bulk infrastructure on the site, and R1.07-billion had been set aside between 2020/1 and 2026/7 in the provincial budget. In response to a question in Parliament in May from the DA's Toby Chance, Tau added that the DTIC's Industrial Zones Programme was helping the MMSEZ with advisory support. Some of the money has already been spent, much of it on consultants. In his report, Mphephu gives a list of consultants, service providers and contractors who have benefited to date. Spending of just over R85.2-million was approved for consultants, of which just over R67.5-million has already been paid to 17 consultants, including engineers, planners, quantity surveyors, project managers and horticulturists. Just under R40-million has been paid to service providers, including Eskom. ALSO READ: Limpopo's special economic zones expected to create 21,000 jobs According to the report, three contractors have so far benefited, including Tshiamiso Trading 1 and Tshiamiso Trading 2, which received a R200-million contract for roads and stormwater infrastructure and a R99.3-million contract for bulk sewer and wastewater treatment works. A contract for R134-million was awarded to Rembu Construction, also for the construction of bulk sewer and wastewater treatment works. But though some earthworks have been done by Tshiamiso on the northern site, there are no finished roads, electricity or water on either site. After being paid just over R50.4-million, Tshiamiso had to stop work on the northern site, after beginning bush-clearing, because the land belonged to a different organ of state and transfer had to take place first, the report says. Tshiamiso has now terminated the contract and is claiming more money from the MMSEZ, citing non-payment for standing time. This dispute is currently in litigation. Tshiamiso Trading is also accused of unlawfully removing white rock materials from another site to the MMSEZ site without the owner's consent or any formal agreement or compensation. ALSO READ: Limpopo unveils R1.8 billion budget boost for economic development The MMSEZ southern site was gazetted as a Special Economic Zone in 2017, but it turns out that the northern site at Artonvilla has yet to be gazetted, according to a response by Tau to a question in Parliament. Tau said the Limpopo government had indicated it would submit a request before the end of June 2025 to gazette the northern site. In his report, Mphephu noted fierce 'oppositions, dissenting views and pushbacks' mostly from environmental groups, over the southern site. Some of these were challenging the Environmental Impact Assessment in the Polokwane High Court. But in the absence of an interdict, the report says, 'all activities leading to the development, including township establishment processes are expected to proceed.' Tshiamiso Trading is one of the contractors which has been paid. When President Cyril Ramaphosa publicly announced the MMSEZ in September 2018 following his return from the Forum for Africa and China Cooperation, it came with the promise of an initial investment value of more than R40-billion. To date, little of that money appears to have materialised. ALSO READ: It's war on power, water theft to save Limpopo economic zones Responding to questions in Parliament in May, Tau gave a list of investment pledges amounting to more than R8.64-billion, of which R2.1-billion has been verified and validated from eight prospective investors. But according to the report, only the China-based Kinetic Development Group has come to the party, with a R16-billion promise of a ferrochrome smelter on the southern site, once township development on the site is approved, and subject to EIA approvals. If investors do come, one of the biggest questions will be: where is the water going to come from in this semi-arid area? The MMSEZ has approached the Water Services Authority (Vhembe) and the catchment management agency (the Department of Water and Sanitation, DWS) in the region to determine whether they have capacity, either from treated or raw water, to supply the developments. According to the report, Vhembe agreed to provide the MMSEZ with some of its allocation for raw water to kickstart development on the northern site. The DWS said treated water could be brought from Zimbabwe by pipeline for the future development of the site. 'For the south, a few boreholes were drilled in order to start the development of the site. For further development, a pipeline needs to be built to connect to the bulk pipeline from Zimbabwe. Furthermore, two dams are earmarked to be constructed in future to specifically provide water to the site as it grows,' the report says. According to the report, the MMSEZ has now implemented a 'turnaround plan' including a review of the design of roads and stormwater. A division of the Industrial Development Corporation has been appointed as implementing agent, with four professional engineers assigned to the MMEZ full-time. Construction on the first projects will start in September, the report says. This article is published in association with the Limpopo Mirror/Zoutpansberger. Correction on 2025-06-19 09:53 This article has been amended to clarify that the visit to the site was by members of the Limpopo Economic Development, Environment and Tourism portfolio committee, not by MPs. This article was republished from GroundUp. Read the original here.
The Citizen
2 days ago
- Health
- The Citizen
Pretoria hospitals prioritised for winter infrastructural upgrades
The Gauteng Department of Health (GDoH) has prioritised upgrading winter-related equipment throughout its facilities to accommodate heavy usage at this time. Steve Biko Academic, Pretoria West, and Kalafong Provincial Tertiary hospitals were among the local facilities which received these upgrades. The department said it has prioritised infrastructure such as boilers, chillers, heat pumps and air conditioners, all of which age and come under pressure during winter. Last month, several facilities reported breakdowns in their boiler systems, resulting in an inconsistent supply of hot water. The department has since said its contractors are on standby to respond to emergencies and were able to restore the systems of all affected facilities. 'The reality we are facing is that critical equipment such as boilers, chillers, heat pumps, and air conditioners is old and has not been serviced appropriately for a long time. This is one of the reasons we have now capacitated the departmental infrastructure unit so that it can implement the maintenance programme in-house,' said Health and Wellness MEC, Nomantu Nkomo-Ralehoko. Nkomo-Ralehoko added that the department has set aside R100-million in the current financial year to recapitalise critical equipment across facilities. Pretoria West Hospital experienced leaking pipes, while Kalafong and Steve Biko hospitals were among the facilities reporting issues with their calorifiers (water tankers that heat and store water for later use), which have since been resolved. The department assured residents that its recapitalisation programme is currently underway and is instrumental in reducing further breakdowns, and thanked them for their patience. Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here
Daily Maverick
12-06-2025
- Business
- Daily Maverick
Retail giants step in with millions of rands to help entrepreneurs on their way up
South Africa's small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don't make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths' corporate social justice director, Zinzi Mgolodela, said: 'Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. 'Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety, giving children the opportunity to thrive in safe, supportive environments.' The Land Bank's CEO, Themba Rikhotso, said: 'This initiative aligns directly with Land Bank's mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country's long-term food security.' Fishing for hustlers under 35 Meanwhile, Mr Price's Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer's efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. 'The country has no shortage of young minds with bright ideas and business know-how,' said the foundation. 'So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.' The closing date to apply to the Mr Price Foundation is 30 June. Credit desert According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa's SMME ecosystem. DM
Daily Maverick
09-06-2025
- Business
- Daily Maverick
After the Bell: Scamming is a big business — be alert and make sure you're safe
The world is awash with people trying to steal your assets. Even big-name investors have been duped. Be careful out there. I am sure that whatever money you have wasn't easy to get – you and your family worked really hard for it. But have you ever noticed how so many people are trying to steal it from you? There are some days when it seems that literally everyone is out to take it. So often, there is a news report of someone who has fleeced people of their money. The latest was a News 24 report about Mark Kretzschmar, who claimed he could make money for people and who was able to run away with about R30-million. Moneyweb has done important reporting about the company Kleuterzone and its founder, former singer Anthonie Bougas. He now appears to be in Thailand, but is not paying the money owed to investors. Like so many of these cases, he makes certain claims that always amount to the same thing: someone else is responsible, not him. If you have been paying attention to this sort of thing, you will know about Banxso, which was a scam from the start. There are so many ways our society enables this. For a start, regulators find it tough to take any action, or to do it early enough to stop people from losing their money. I have some sympathy for the Financial Sector Conduct Authority here. I mean, no one will complain about losing their money until they've lost it. And by that point, it is usually too late. This means that in some cases, a group of people are giving money to someone, all at the same time, and it's only when one of them realises it's gone that they lodge a complaint. There would have to be an investigation of some kind, and only after that can the FSCA say anything. But I have no time at all for the digital platforms that allow themselves to be used to market these thieves. For several months, there were videos on YouTube of SABC TV presenters supposedly talking about a new investment product. Elon Musk was another who was deep-faked. Now, YouTube e arns more than $30-billion in revenue every year. Is it too much to ask that it does some checking to see if it is taking money from a thief? And to have a proper complaints mechanism where a TV presenter who is being deep-faked can make sure her image is removed immediately? I do wonder how much revenue for YouTube is from simple scams, whether it be a lose-your-money-quick scheme, or that guy who clearly can't sleep at night because he's so worried about my belly fat. If this has happened to you, you shouldn't think it was because you were stupid. Recently, big-name investors, including Sanlam Investments and Old Mutual Alternative Investments, lost up to R700-million after being conned by a company called Enable Capital. The Public Investment Corporation lost another R100-million in the same scam. The person behind it, Reuben Oliphant, seems to have… you guessed it… disappeared. And sometimes, someone appears to have almost found a way to scam someone out of their money legally. Last week, the JSE publicly censured Iqbal Surve's AYO Technology Solutions and issued a suspended fine of R500,000. This was because AYO had withheld information from shareholders about its settlement with the PIC that involved it re-purchasing some of its shares. But it seems the people, sorry person, behind AYO will get away with it. Much of the money the PIC put into AYO through its investment was taken out in the form of dividends. Dividends that make no sense compared with what the company has actually produced. As a result, the money is gone. The PIC will never get it back and someone has clearly benefited. The real poison of this kind of thing is that it makes the scheme look almost legitimate. In a society where so few understand how markets, capital and investments work, it's easy to simply think people are rich because they were born rich – or because they stole their money from someone else. This kind of incident, where someone can literally lie to shareholders (thus possibly depriving them of money) and get away with it, will consolidate that view. Scamming is now big business. In Myanmar alone, there are thought to be around 150,000 people being held against their will in what amounts to prison camps, and forced to try to scam people online. Just think about that number for a moment. It is simply unbelievable how big this industry has become. To run prison camps for that many people requires capital. They wouldn't do it if they weren't making serious cash out of it. Can you imagine the nightmare of being a person who has been, you guessed it, scammed into going there, and finding themselves in one of these camps? I'm not qualified to tell you how to keep your money safe. But please. Please, please, please, make sure that you do. DM
Daily Maverick
05-06-2025
- Business
- Daily Maverick
Saru declares significant loss in 2024 financial report – but 2025 outlook positive
Despite a large deficit, the South African Rugby Union is optimistic about the short-to-medium-term future. The South African Rugby Union (Saru) reported a R93-million loss for the 2024 financial year, which was expected and forecast, despite record earnings, its latest financial statements reveal. On the up side, new sponsorships and becoming a full shareholder of the United Rugby Championship (URC) from next month, has led to a bold prediction of a R100-million surplus in the current financial year. Summary 2024 financial year (reported) Loss: R93-million (expected and already offset in early 2025) Commercial revenue: R1.552-billion (up from R1.44-billion in 2023) Total income (including grants): R1.76-billion World Rugby grant: R186-million Merchandising: Doubled from R30-million to R62-million Expenses: R1.871-billion (up 2.9% from R1.816-billion) World Rugby events: R133-million Player image rights: R148-million (+R24-million) Private equity transaction costs: R13-million URC/northern hemisphere franchises: R446-million National teams including Springboks: R433-million (-R27m from 2023) 2025 outlook Forecast revenue: Above R2-billion Projected surplus: R100-million Drivers: New sponsorships Full URC membership Continued commercial growth According to the financial report, the R93-million deficit had already 'been wiped out' over the first six months of 2025. Overall, in 2024, group commercial revenues exceeded R1.5-billion for the first time (R1.552-billion), up from R1.44-billion in 2023. Total income with the addition of grants (principally from World Rugby of R186-million) took total income to R1.76-billion. Revenues for 2025 are forecast to exceed R2-billion. The 7.8% increase in revenues was attributable to increased broadcast revenues in a non-Rugby World Cup year, competition sponsorships and a strong performance in merchandising receipts, which more than doubled from R30-million to R62-million. Expenses increased from R1.816-billion to R1.871-billion. The 2.9% increase was put down to investment in hosting three World Rugby tournaments (R133-million), a R24-million increase in player image rights (to R148-million), and the costs associated with the mooted private equity transaction (R13-million). Total expenditure attributable to the northern hemisphere international franchise competition was R446-million, while Saru was still able to make a full distribution to member unions. Spending on the No 1 world-ranked team, the Springboks, and other national teams was R433-million, a reduction of R27-million on the Rugby World Cup-winning year of 2023 (R460-million). 'Reporting a loss can never be desirable, but the irony is that we are more than satisfied with our position,' said Saru CEO Rian Oberholzer. 'We had budgeted for a loss in 2024 in the expectation that the members would approve the private equity transaction that they had sought, releasing funds to cover the deficit. 'When that did not happen, we continued with our planned commercial reset, and other revenue generation plans, which have borne fruit. We are in the very rare position among our international peers of continuing to be debt-free and confident of posting a surplus in 2025.' European costs Saru's biggest accumulated cost over the past eight years has been paying to participate in URC (and the Pro14 competition before that). The cost of securing South Africa's place in northern hemisphere rugby, which was accelerated by the collapse of Super Rugby in 2020, has been R2.2-billion. According to the finance notes, Saru currently pays R392-million annually for top club teams to compete in URC and European Professional Club Rugby (EPCR). Without this contribution, the Bulls, Cheetahs, Lions, Sharks and Stormers would have no international competition. Another R54-million is paid to travel and other associated costs for the teams. Saru also paid R347-million to member unions (the 15 provinces) to ensure their existence. Saru president Mark Alexander highlighted a period of significant challenges and growth for the organisation. Despite the unsuccessful private equity transaction, it elevated Saru's profile and led to the exploration of alternative commercial initiatives, including a new commercial app and digital platform to diversify revenue streams. The Saru president acknowledged a financial loss for the period, but emphasised that the R2.2-billion investment was made to secure future participation and full membership in the URC and EPCR by the end of June 2025. He also noted that budgets for 2025-2027 had been secured, ensuring financial stability. Plans include digital transformation and leveraging partnerships for growth beyond 2028. Alexander also praised the Springboks' continued world-class performance, ranking No 1 in 2023 and 2024. Oberholzer said the financial outlook beyond next year was equally healthy, with strong revenues forecast for 2026 with new competition formats in the pipeline. 'The income that SA Rugby generates all goes back into supporting the growth and promotion of rugby in the country,' he said. 'It allows us to fund Springbok campaigns, expand women's rugby programmes and fuel our other national teams. It pays for our members' activities in their communities as well as their professional teams. 'It underwrites our rugby safety programme BokSmart; supports referee and coaching development and our age group competitions as well as development programmes, and allows us in turn on sell-out Test match entertainment and our domestic competitions. 'Ultimately, every rand that we earn goes into powering the game in some shape or form and after a challenging 2024, we have a good news story to tell our South African rugby community as we look ahead.' DM
