Regional Overview

The price of platinum rose to unprecedented levels in 2010 and Rustenburg was put fi rmly on the international map when six World Cup soccer games took place at the Royal Bafokeng Sports Palace. The precious commodity and the high-profi le event served to highlight two of the North West’s greatest assets, but this province has a variety of advantages that deserve to be better known.

The North West is a major producer of maize and sunfl ower seeds and many other agricultural products. Cattle breeding and ranching is a major industry. The tourism sector is strong, with national parks and provincial and private parks and nature reserves and the Sun City entertainment complex providing the core attractions. The province is home to two Unesco World Heritage Sites. South Africa produces over 84% of the world’s platinum group metals output, and the Platinum Province accounts for 64.7% of that national total. The province’s mines employ about 26.9% of the country’s total mining industry and contribute about a quarter o  the country’s national mineral sales.

But mining here is not limited to platinum and gold: South Africa is the world’s fi fthlargest producer of diamonds, and much of that comes from the North West towns of Ventersdorp, Koster, Christiana, Lichtenburg and Bloemhof. The ground is also rich in vanadium, limestone, slate, nickel, phosphate, manganese, coal, slate, fl uorspar and other minerals. The contribution of the mining sector to the gross domestic product of the region (GDPR) amounts to 30.4%, government services 10.8% and fi nance and business services 12%.

Trade accounts for 10% and manufacturing 5.8%. Pelindaba is the site of nuclear research. The Safari-I research reactor is one of only fi ve in the world producing isotypes used in nuclear medicine. NTP Radioisotypes had revenues of more than R700-million in 2010/11. Pelindaba is also home to a high-tech metalalloying plant owned by the National Energy Corporation of South Africa (Necsa). Avalloy, a company that makes superalloys and is partowned by Rolls-Royce (13%), Basileus (55%) and the Industrial Development Corporation (10%), has invested R150-million in the plant.

The North West is bounded by Botswana to the west and the province of Gauteng to the east. The varied climate and soil of the North West is conducive to the cultivation of a wide variety of crops and the livestock-carrying capacity of the bigger ranches is impressive.

The dry west is home to beef cattle, game ranching and hunting. The well-watered eastern and north-eastern regions can carry many kinds of crops, many of which found themselves on the tables of the citizens of nearby urban centres of Johannesburg and Pretoria. Maize and wheat are found all over the central and southern parts of the province. South Africa produced four million tons more maize than it could use in 2010, a worrying surplus for North West farmers who produce most of the nation’s grain crop, without ready markets into which to sell the crop

Three of South Africa’s major water-catchment areas run through the North West: Limpopo, Orange and Vaal. The rivers and irrigation schemes (particularly centred on the Crocodile, Harts and Vaal rivers) support extensive commercial agricultural enterprises, small-scale farming and game ranching.

Provincial priorities
The Provincial Government of North West Province has committed itself to supporting the growth of manufacturing industries. The existing manufacturing sector comprises mostly fabricated metals, food and beverages and non-metallic metals. Huge smelters in the Rustenburg area and large automotive works in Brits comprise the major heavy industry while Klerksdorp (mining engineering) and Potchefstroom (chemicals and food and beverages) have a lighter-industry focus.

Strong efforts are being made to attract investment into the manufacturing sector of the North West. The mining industry lends itself to various spinoffs and beneficiation projects (like catalytic converters) but there is also tremendous scope for the development of agri-processing, as the province is so rich in agricultural produce. Leather for car seats is an obvious example.

The province is hoping that the national Department of Trade and Industry will issue an operating permit for the Mafikeng Industrial Development Zone as this initiative is at the core of the province’s plans to strengthen manufacturing. The fact that the city’s airport has an international accreditation fits into the future plan to use the airport as a multiplier effect on the local economy. Warehousing and logistics (with the province being strategically positioned west of Johannesburg and on the route to Botswana and Namibia) could become important components of the economy.

Among the provincial government’s most pressing priorities are increased investment in infrastructure (including hospitals and schools) and assistance to municipalities that are struggling to deliver services.

Regions

Bojanala District Municipality
This north-eastern district hosts the richest platinum fields in the world as well as some of South Africa’s most famous and popular tourist destinations. Mining and tourism dominate the localeconomy. There are 20 platinum-related mine shafts located on the Merensky Reef, and some 70% of the Rustenburg Municipality’s R38-million GRP comes from mining activities.

The Bojanala DM has a varied tourist offering. From the Magaliesberg Mountains to Hartbeespoort Dam, the Pilanesberg National Park to Sun City and the Palace of the Lost City, there really is something for everyone. The towns of Brits, Hartbeespoort and Skeerpoort are central to the province’s manufacturing sector, with companies in the automotive sector being prominent. Manufacturing makes up more than a quarter of Brits’ contribution to regional GDP, and the sector contributes significantly to employment. Overall, the primary sector, represented by mining and agriculture, is the largest employer.

Ngaka Modiri-Molema District Municipality
Ngaka Modiri-Molema district, the central north of the province, is home to the provincial capital at Mahikeng. The district’s international border with Botswana and close proximity to South Africa’s economic hub, Gauteng, give it regional importance, and it is integral to the proposed corridor linking Walvis Bay, in Namibia, on the west coast of Africa, with Maputo, in Mozambique, on the east coast. Zeerust (lead and chrome), Ottosdal (pyrophyllite) and Lichtenburg (diamonds) contribute to the mining sector’s importance. In agriculture, sunflowers and cattle predominate. The Madikwe Game Reserve in the north remains a popular tourist attraction with the Big Five on display.

A great deal of time and effort has been expended on the Mafikeng Industrial Development Zone. Manufacturing of high-tech electronic components and jewellery are among the possibilities for the IDZ. As the capital city, Mahikeng has a strong services sector.

Dr Kenneth Kaunda District Municipality
This eastern region contains some of more important towns in the province: Potchefstroom (City of Tlokwe) and Klerksdorp (City of Matlosana). Some of the most easterly parts of the district fell under the Gauteng province until fairly recently. Carletonville, for example, is now part of the North West. These and other towns such as Ventersdorp and Orkney ensure that 75% of the population is urbanised. Much of the balance lives on commercial farms, with only 2% listed as living in rural communities.

The district has well-developed road and rail infrastructure, supporting its primary economic sectors: mining and agriculture. Klerksdorp and Orkney are gold-mining towns. Maize and sunflower seeds are the dominant crops. South Africa is one of the world’s top 10 sunflower seed producers, and the North West accounts for about 40% of the national crop.

Other sectors with the potential for growth in the district include agri-processing, tourism, property development, ICT and health services. Potchefstroom is the main base of the innovative and successful North West University, and several other educational institutions. The town also plays host to a major arts festival every year, Aardklop. Klerksdorp (City of Matlosana) is the second-largest city in the North West, and the business and commercial hub of the district.

The mining sector employs about 30 000 of the 359 000 population, and the sector accounts for more than a quarter of the town’s contribution to regional GDP. The City of Matlosana is also driving tourism in the region, especially along the N12 Treasure Route.

Dr Ruth Segomotsi Mompati District Municipality
The Dr Ruth Segomotsi Mompati district comprises mainly cattle and game country. The animals thrive on wide expanses of Kalahari thornveld, covering the western half of the province. Hunting is a significant contributor to the local economy. The agriculture sector is by far the largest contributor to the regional economy.

The region also produces maize, groundnuts, sunflower seeds and sorghum. Vryburg is the biggest town, as well as being the centre of the cattle-breeding industry. It hosts several cattle auctions per year and the annual Vryburg Show is renowned. The study of animal disease had its genesis on the farm Armoedsvlakte near Vryburg where Dr Arnold Theiler, founder of Onderstepoort, started his research activities.

The Taung Heritage Site is an interesting and internationally important historical site. Taung is the anthropological site where the skull of an Australopithecus africanus, an early hominid that lived in the region about 2.5 million years ago, was found. It has been declared a World Heritage Site and, along with the nearby game reserve and cultural centre, has the potential to create a viable tourism route that might boost the local economy.