Limpopo gets double dose Investment, Mamba Cement and Thavhani Mall

Limpopo province receives double dose capital investments of R2 billion in a week's time, a new cement plant in Northam, namely Mamba Cement and a regional Thavhani Mall in Thohoyandou.

Good news for Limpopo as the province received double dose capital investments of R2 billion in a week's time, a new cement plant in Northam, namely Mamba Cement and a regional Thavhani Mall in Thohoyandou.

The social and economic influence of these investments will have a substantial impact on Limpopo and its stakeholders, boosting the province economy with retained retail spend and employment opportunities.

Mamba Cement

Banking group Nedbank Capital and the Bank of China in Johannesburg on Tuesday announced the raising of R1.1 billion debt capital to fund Mamba Cement, a new China entrant on the South African cement industry.

According to Nedbank Capital, this is one of the first pure limited recourse project finance deals funded by Chinese entities on the African continent. In other words, the majority of funding comes from banks rather than shareholders.

One of China’s largest cement manufacturers, the Jidong Development Group, holds a 51% stake in Mamba. Together with the China-Africa Development Fund and significant BEE player, Women Investment Portfolio Holdings Limited (WIPHOLD), it provided the equity required for the project.

Nedbank Capital’s infrastructure, energy and telecommunications head Mike Peo said the construction had already started and the project was expected to be completed within 18-24 months.

When completed, the Mamba Cement project will result in a brand new cement plant with a capacity of more than one million tonnes per annum located at an established limestone deposit near Northam in Limpopo Province. Once operational, Mamba Cement will produce and sell cement into the blended cements, readymix and construction industries across South Africa.

Mamba’s inland plant will compete with Sephaku’s inland plants in Mpumalanga and North West. Competition within the local cement market is segmented by geography, given the costs of logistics.

Mr Zhikun Qiu, Chief Executive Officer at Bank of China says the deal held particular appeal given the significant economic development potential it holds for southern Africa as a whole.

Thavhani Mall

Meanwhile yesterday, a consortium of property developers featuring prominent player Flanagan & Gerard Property Investments and Thavhani Property Investment, are set to deliver a new R900m shopping centre in Thohoyandou, Limpopo’s Vhembe District Municipality.

An announcement released yesterday said construction of the new Thohoyandou shopping centre, named Thavhani Mall, will begin in June and set to open in April 2016.

This development is the brainchild of local businessman Khosi Ramovha TJ of Thavhani Property Investments who first had the vision for the mall eight years ago.

The last 30 to 40 years SA Commercial Prop News noticed South African retail market shifted from traditional high street retail to large shopping centres in cities such as Johannesburg, Cape Town, Durban and Pretoria.

Since 1994 there has been a steady increase in retail supply in the former regulated townships, with the latest retail development trend focusing on smaller towns and rural areas.

The mall is estimated to create between 1,500 to 2,000 sustainable jobs after it opens and Thohoyandou to retain around R200 million in retail spend, which is currently being spent outside the town.

The 55,000sqm development is set on a 76ha site at the intersection of the R524 road to Makhado and the new road which links Giyani to Sibasa and surrounding rural areas.

Patrick Flanagan of Flanagan & Gerard said the Mall’s tenant mix will be led by two supermarket anchors, three fashion anchors and at least two major banks.

He adds: “It will introduce several new retailers to Thohoyandou and include a variety of fashion, accessories, furniture, electronics, health and beauty and much more. It will also include a lively food court with restaurants, which will become an exciting meeting place in the mall.”

The developers also said Thavhani Mall will incorporate a taxi rank and ample on-level parking.

The Vhembe District Municipality and the Thulamela Local Municipality have outperformed in average economic growth in recent years. The nearly 400,000 residents in this primary trade area comprise almost 90,000 households. They span the full living standards measure spectrum, but are predominantly in the lower LSMs.