The National Empowerment Fund (NEF), in collaboration with the Department of Trade, Industry and Competition (the dtic), proudly announces the establishment of Sino Africa Gases, a state-of-the-art food-grade Liquid Carbon Dioxide (LCO2) manufacturing plant. This project marks a significant milestone in South Africa’s industrial gases landscape.
Empowering a new entrant in the market
Sino Africa Gases, a 100% black-owned start-up company, has received funding to the value of R36.5m from the NEF and an additional R24m in grant funding from the dtic’s Black Industrialists Scheme (BIS). This has enabled the company to set up a food-grade carbon dioxide manufacturing plant and cover essential working capital needs. The total project cost is approximately R61.5m 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,” says the Acting Deputy Director-General of Incentives at the dtic, Ms Susan Mangole.
“This partnership exemplifies our dedication to fostering black-owned businesses in key industrial sectors,” said NEF’s Acting CEO, Mr Mziwabantu Dayimani. “With Sino Africa Gases now operational, we are excited to witness the positive impact it will have on job creation and local economic development.”
A sustainable solution for carbon utilisation, decarbonising the economy
The project is highly transformative, it is the first black owned food grade LCO2 manufacturer. Founded by engineers Mr Sibusiso Sibisi and Mr Sipho Magudulela, Sino Africa Gases repurposes excess CO2 from Brother Cisa, a local manufacturer, to produce food-grade LCO2. The plant boasts production capacity of 1,500 kg of LCO2 per hour. The funding has created 110 jobs, 21 of which are permanent and 89 were during construction.
By capturing excess CO2 that is currently vented into the atmosphere, Sino Africa Gases effectively recycles a waste product into a valuable resource. This initiative not only mitigates unfavourable environmental impacts by reducing greenhouse gas emissions but also contributes to a circular economy and is a win-win partnership between Sino Africa Gases and Brother CISA. Puregas as a primary off taker plays an aggregator role, placing the product with various multiple end-users. Through this approach, the beverage market benefits from this newly established supply.
“This project showcases the potential of recycling CO2 to create a high-demand product,” states Mr Sibisi. “By harnessing waste gas, we are contributing to a sustainable future while addressing the needs of various industries.”
Mr 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 in the SADC region.”
Driving economic growth and job creation
The Sino Africa project addresses local needs while contributing to broader economic goals.
By producing food-grade LCO2, the company provides essential products for carbonation in the food and beverage industry. The plant’s strategic location in Newcastle leverages existing gas infrastructure, directly benefiting the community through employment and local procurement.
A vision for the future
As Sino Africa Gases begins its journey in the industrial gas market, the NEF and the dtic remain committed to ongoing support and monitoring to ensure the project’s continued success. Together, the two entities are fostering an inclusive economy that empowers black industrialists and drives sustainable growth.
