A promising development is underway in Newcastle, with the local business sector receiving a much-needed boost, set to enhance the economy and foster job creation. This follows the announcement by the National Empowerment Fund (NEF), in partnership with the Department of Trade, Industry and Competition (the DTIC), regarding the establishment of Sino Africa Gases, a cutting-edge food-grade Liquid Carbon Dioxide (LCO2) manufacturing plant which is now based in town.
According to the NEF, this project represents a significant milestone in South Africa’s industrial gases sector.
Sino Africa Gases, a 100% black-owned start-up company, has secured R36.5 million in funding from the NEF, along with an additional R24 million in grant funding from the DTIC’s Black Industrialists Scheme (BIS).
As per the NEF, the funding has been instrumental in enabling the company to establish its food-grade carbon dioxide manufacturing plant and cover essential working capital needs. The total project cost is approximately R61.5 million, including the contribution from the founders.
“This initiative not only promotes local manufacturing and ownership, but also supports import substitution in this critical sector and job creation. We are proud to co-finance this project, which aligns with our apex priorities of industrialisation and transformation in South Africa,” said Susan Mangole, Acting Deputy Director-General of Incentives at the DTIC.
Mziwabantu Dayimani, Acting CEO of the NEF, also commented, stating, “This partnership exemplifies our dedication to fostering black-owned businesses in key industrial sectors. With Sino Africa Gases now operational, we are excited to witness the positive impact it will have on job creation and local economic development.”
It should be highlighted that Sino Africa Gases, founded by engineers Sibusiso Sibisi and Sipho Magudulela, repurposes excess CO2 from Brother Cisa, a local manufacturer, to produce food-grade LCO2. With a production capacity of 1,500 kg of LCO2 per hour, the plant has already created 110 jobs—21 of which are permanent, with 89 created during the construction phase.
The NEF also highlighted that the company’s approach of capturing excess CO2, which would otherwise be vented into the atmosphere, effectively recycles a waste product into a valuable resource. Both the DTIC and NEF pointed out that this initiative not only mitigates environmental impacts by reducing greenhouse gas emissions but also contributes to a circular economy. Additionally, the collaboration between Sino Africa Gases and Brother CISA represents a win-win scenario, benefiting the local community while supporting sustainable practices.
As explained by NEF, Puregas, as a primary off-taker, also plays a crucial role in aggregating the product, placing it with multiple end-users. This approach ensures that the beverage market benefits from the newly established supply of food-grade LCO2.
Sibusiso Sibisi, one of the engineers behind the project, stated, “This project showcases the potential of recycling CO2 to create a high-demand product. By harnessing waste gas, we are contributing to a sustainable future while addressing the needs of various industries.”
Magudulela added, “The support from the NEF and the DTIC has been instrumental in bringing our vision to life. We are committed to delivering innovative solutions that serve local markets and have the potential for export within the SADC region.”
Furthermore, the NEF and the DTIC have emphasised that the Sino Africa Gases project not only addresses local needs but also contributes to broader economic goals. By producing food-grade LCO2, the company provides an essential product for carbonation in the food and beverage industry. The plant’s strategic location in Newcastle maximises existing gas infrastructure, which will directly benefit the community through employment opportunities and local procurement.
Looking to the future, as Sino Africa Gases embarks on its journey in the industrial gas market, the NEF and the DTIC reaffirm their commitment to continued support and monitoring to ensure the project’s long-term success. Together, the two entities remain dedicated to fostering an inclusive economy that empowers black industrialists and drives sustainable growth.
With the establishment of Sino Africa Gases, which is expected to address unemployment while capturing excess CO2 and transforming it into a valuable resource, what are your thoughts on this development? Share your views in the comment section below.
Comments 8
Excellent Move guys This is what I have all along been asking myself as to why Chinese are coming to Africa, especially Southern Africa and either implementing new projects or buying plants and companies leaving no room for South African and Black-owned companies? Is it because there is something wrong with us South Africans? Today I have received my answer: No, there is nothing wrong with us. I am so impressed and proud of the two gentlemen, Sipho and Sbu, who have taken this initiative. Excellent work guys. You have just given me confidence not to doubt my brillliant idea of a plant design (DAOP) for Newcastle local benefit that I was presenting to my wife yesterday morning. I will embark on detailing it further, and now that I am aware of NEF & DTIC, I would appreciate if I can be awarded an opportunity as well. Thank you.
Because the Chinese people work hard, and can’t be bothered with nonsense like strikes, and burning tyre’s etc!
Great initiative, I hope this project will create more employment especially for the unemployed youth and also contribute towards economic development of Newcastle and also for the country at large. Well done and good luck to all stakeholders
Nice my brother I hope you will succeed as well just like these two great gentlemen, yazi this is so inspiring to hear and see,especially for us black people indlu kaZulu.
Good news for our area I think they give many opportunities of works.
Sino is chinese for China So effectively the company is China Africa
It is not 100% black owned
I really appreciate for our Area Newcastle as we see there are trusted developments which will also regards to employment opportunities wish success and learning skills too Also job opportunities in these fields Industries All the Best Newcastle and their limited Areas🙏🏻♥️👋🏻
Were were is this company and when it employs people pf Newcastle community because we never see the post