Download - NW Province Republic of South Africa: A Land of Tourism, Trade and Investment Opportunities
THE NORTH WEST PROVINCE OF SOUTH AFRICA –
A LAND OF TOURISM, TRADE AND INVESTMENT OPPORTUNITIES
CONTENTSNWP Quick Facts
Summary of the NWP Advantage
Economic Profile and Industry
North West Tourism
Why North West Province
a. Easy Access to Markets and
Gateway to Africa
b. Market and Product Potential
c. Market Entry Model
d. Tourism Product
Attractive Investment Opportunities
NWDC Investor Support
Bordering Botswana, the NWP is ideally positioned to access the
14 countries comprising the Southern African Development
Community (SADC) as well as the islands off Africa's east coast,
and even the Gulf States and India. the NWPs well developed road
and rail links provide the platform and infrastructure for ground
transportation deep into sub-Saharan Africa.
The SADC FTA signed in August 2008 provides access to a market
of over 250 MILLION CONSUMERS
Future FTA with SADC,COMESA & EAC will provide access to a
market of over 700 MILLION CONSUMERS
NWP offers easily available skills and distribution channels
imperative for commercial ventures into Africa.
NWP plays a significant role in the supply of energy, relief aid,
transport and communications to the continent.
NWP is well positioned to be used as a shared services hub for
companies’ African operations, especially for Sub-Saharan
countries.
WHY NORTH WEST PROVINCE? : EASY ACCESS TO MARKETS AND
GATE WAY TO AFRICA
CONGO
SOUTH AFRICA
DEMOCRATICREPUBLIC OF
CONGO
KENYA
TANZANIA
ANGLOA
NAMIBIA
BOTSWANA
ZAMBIA
ZIMBABWE
MALAWI
RWANDA
BURUNDI
GATEWAY TO AFRICA
NW
25
Relative sectoral strengths & investment opportunities (IDC)
Western Cape:•Tourism•Agro-processing•Biotechnology•Petrochemicals•Clothing and textiles•Fishing
Northern Cape:•Agro-processing•Transport & storage•Mining & beneficiation•Tourism
North West:•Mining & beneficiation•Leather products•Livestock & meat products•Tourism
Limpopo:•Food processing•Agri-business•Mining•Fertilisers & pesticides •Energy
Mpumalanga:•Mining (coal)•Forestry •Agriculture & horticulture•Food processing•Petrochemicals•Tourism
Gauteng:•Financial & business services•Information & comms. technologies•Pharmaceuticals•Auto assembly & components•Food processing & beverages•Chemicals & pharmaceuticals•Machinery & appliances•Mining•Tourism (leisure & business)
Free State:•Agriculture•Food processing•Petrochemicals•Machinery & equipment•Mining & beneficiation
Eastern Cape:•Agriculture and forestry•Aquaculture•Automotive•Clothing and textiles•Leather and leather products
KwaZulu-Natal:•Aluminium prod & conversion•Auto assembly & components•Petrochemicals•Wood and wood products•Engineering & metal works•Clothing & textiles•Agriculture & livestock•Tourism
North West Province Economic Sectors
Agriculture MiningManufactur
ing ElectricityConstructio
n Trade Transport FinanceCommunity
Services
National Total 2.6 9.3 12.4 2.8 4 16 9.1 21.5 22.5
North West Province 2.7 41.2 4.5 1.7 2.2 10.3 6.5 11.1 19.8
Bojanala Platinum DM 0.9 57.5 4.2 1.2 1.8 9.4 5.7 9.6 9.7
0
10
20
30
40
50
60
70
Gross Value Added by Region (GVA-R) Broad Economic Sectors (Sector's share of regional total (%)) 2012
WHY NORTH WEST PROVINCE? : MARKET AND PRODUCT POTENTIAL
SOUTH AFRICAN TRADE AGREEMENTS
South Africa – European Union (EU) Trade, Development and Co-operation Agreement (TDCA)
Southern African Development Community (SADC) FTA
Southern African Customs Union (SACU) – India Preferential Trade Agreement (PTA)
Southern African Customs Union (SACU) - European Free Trade Association (EFTA) FTA
Africa Growth and Opportunity Act (AGOA)
SACU – Southern Common Market (Mercosur) Preferential Trade Agreement
BRICS multilateral 2010
North West University
•Team of PhD researchers•Intellectual Property•Model Development
Decision
Support
Model
•Assesses the commercial and political risks of doing business in all countries
•Market potential of the various product groups for the remaining countries are assessed by analyzing the growth of imports of a given product and related import market size
•Examines the accessibility of each market (barriers to entry and the degree of market concentration)
Identification of Expor
t mark
et Poten
tial
•Priorities export promotion activities•Potential export markets based on the strength of South Africa’s current exports to the identified markets, the potential market’s market size, market growth and import market accessibility.
• DEMAND FOR 5500 SA PRODUCTS IDENTIFIED
NORTH WEST ADVANTAGE
Location Advantage
Market Access
Advantage
Resource Base Advantage
Production Cost Advantage
` MODES OF ENTRY
EXPORTING CONTRACTUAL AGREEMENT
JOINT VENTURE
ACQUISITION GREENFIELD INVESTMENT
RISK Low Low Moderate High High
RETURN Low Low Moderate High High
CONTROL Moderate Low Moderate High High
INTEGRATION Negligible Negligible Low Moderate High
WHY NORTH WEST PROVINCE? : PREFERED MARKET ENTRY MODEL
Given the Province’s close proximity to SADC, competitive advantage in key sectors and huge market potential in SADC, the preferred entry models for foreign companies in the NWP would be Joint Venture or Greenfield investment
WHY NORTH WEST PROVINCE? : RATIONALE FOR MARKET ENTRY MODEL
LOCAL FIRM’S RESOURCES
Imitating capabilities Older technology and
know-how Country-specific
marketing expertise Country specific
organization skills
MNE’S RESOURCES
Innovative capabilities Advanced technology and
know-how Industry-specific
marketing expertise Organization structure
and systems
Local expertise - marketing, government relations, etc
Access to partner’s local knowledge
Reduction of concern about overpayment
Both parties have some performance incentives
Significant control over operation
Both partners contribute hard-to-measure inputs
Large expected mutual gains in the long-run
JV
ATTRACTIVE INVESTMENT OPPORTUNITITES
INFRASTRUCTURE PROJECTS
PROJECT DESCRIPTION PROJECT MOTIVATION
Various construction and infrastructure
projects required to unlock economic
potential
PROPOSED LOCATION• Province Wide
SIP 4: Unlocking the economic opportunities in NWP
• Acceleration of investments in road, rail, bulk water, water treatment
and transmission infrastructure
• Enabling reliable supply and basic service delivery
• Facilitate development of mining, agricultural activities and tourism
opportunities
• Open up beneficiation opportunities in mining and agriculture in the
North West Province
The construction sector plays a pivotal role in the development of the
provinces infrastructure, which is necessary to create an enabling
environment for economic growth and development. Currently the NWP
offers investment opportunities relating to road, rail and air transport, bulk
water and electricity transmission infrastructure
PROJECT DESCRIPTION PROJECT MOTIVATION
Establishment of the Cattle Beneficiation
Industrial Park, including industrial and
commercial facilities that dedicated for
production and business services to attract
new businesses, by providing integrated
infrastructure in one location and providing
localized environmental controls that are
specific to the needs of the industrial area.
• Support the beneficiation of cattle through a
world class economy of scale abattoir, meat
processing and packaging plant and cold
storage facilities
• Support the beneficiation of cattle hides
through an economy of tannery, leather
furniture manufacturing plant, leather footwear
manufacturing plant, etc
70% of the value of NWP live animal and animal products exports during
2009 comprised live animals, and only 14% of the value of NWP exports
comprised meat and edible meat products.
This represents a significant beneficiation opportunity for the NWP, given
that 13% of SA’s cattle herd is located in NWP, with beef cattle comprising
60% of the NWP livestock output.
PROPOSED LOCATION• Dr. Ruth S Mompati District
ATTRACTIVE INVESTMENT OPPORTUNITITES
AGRO PROCESSING
PROJECT DESCRIPTION PROJECT MOTIVATION
Establishment and development of the Small
Scale Maize Milling Industry to facilitate the
entry of small scale maize millers to the NWP
rural areas where they are expected to be
competitive, given that high logistics and
transport costs raise the price of basic food
and maize products.
PROPOSED LOCATION• Dr. Ngaka Modiri Molema District
A third of South Africa’s maize is grown in the NWP. Maize is allocated to
various consumption categories in SA with 50% used for human
consumption, 40% for animal feed and 10% for Bio-fuels etc.
There is currently a surplus of maize production estimated at 4 million
tons.
This intervention thus aims to also sustainably reduce the current high
cost of basic milled products, which would contribute to poverty reduction
in the NWP.
ATTRACTIVE INVESTMENT OPPORTUNITITES
AGRO PROCESSING
PROJECT DESCRIPTION PROJECT MOTIVATION
Development of a Metal fabrication, Capital
and Transport Equipment sector
development zone through the facilitation of
general and specific industrial infrastructure,
technical workforce and business support
services to manufacture:
• Metal fabricated components,
• Machinery and equipment,
• Other transport equipment,
• Electrical machinery and apparatus,
PROPOSED LOCATION• Dr. Keneth Kaunda District
• Bojanala Platinum District
The Metal fabrication, Capital and Transport Equipment cluster of sectors is
vital to economic development as they produce products, applications and
services that are used throughout the NWP and SA economy in
infrastructure programmes, general construction, engineering, mining,
packaging and automotives.
The aim is thus to strategically position the NWP to develop industrial
capacity and capability to leverage off the National Infrastructure capital
expenditure programme as well as the growth in Renewable Energy and
Energy Efficiency equipment manufacturing.
Current opportunities include manufacturing to supply:
• Public infrastructure and beneficiation chains through
components/systems designated for local procurement
• White goods industry, which is being repositioned for growth
• Solar Water Heaters
ATTRACTIVE INVESTMENT OPPORTUNITITES
METAL FABRICATION
ATTRACTIVE INVESTMENT OPPORTUNITITES
AUTOMOTIVE COMPONENTS
PROJECT DESCRIPTION PROJECT MOTIVATION
Establishment of an automotive component
sector development zone for supply to local,
regional and international markets. The DTI
indicates that the policy shift from the Motor
Industry Development Programme (MIDP) to
the Automotive Production Development
Programme (APDP) in 2013 serves to unlock
various opportunities for vehicle Original
Equipment Manufacturers (OEMs) as well
component OEMs
PROPOSED LOCATION• Bojanala Platinum District
The APDP has key objectives to:
• Raise vehicle production volumes to 1,2 million vehicles per annum by
2020
• Substantially diversify and deepen the components supply chain
To achieve this, there will need to be ongoing increases in minimum plant
volume thresholds and vehicle OEMs will need to work closely with
existing and new component OEMs to identify areas where greater
economies of scale in component sourcing and/or value chain
development will be possible. This presents an opportunity to grow the
component supply base through the expansion of the existing NWP Brits
automotive component hub for both Original Equipment and aftermarket
component manufacturing.
PROJECT DESCRIPTION PROJECT MOTIVATION
Establishment of a platinum beneficiation
sector development zone to support the
technology development, pilot production,
testing and commercialization of hydrogen
production, Platinum Group Metals (PGM)
catalysis components and fuel cell
components
PROPOSED LOCATION• Bojanala Platinum District
Increasing global energy requirements necessitate the identification and
development of environmentally friendly renewable energy. The North
West University is currently leading in this field. Establishing the Platinum
beneficiation sector development zone through the facilitation of general
and specific research and industrial infrastructure, technical workforce and
business support service to support the technology development, pilot
production and testing, commercialization and manufacturing of:
• Hydrogen production and storage components, sub assemblies and
complete systems;
• PGM catalysis components, sub assemblies and complete systems;
• Niche application Fuel Cell components, sub assemblies and complete
systems to address regional development challenges
ATTRACTIVE INVESTMENT OPPORTUNITITES
PLATINUM BENEFICIATION
ATTRACTIVE INVESTMENT OPPORTUNITITES
PLASTICS AND CHEMICALS
PROJECT DESCRIPTION PROJECT MOTIVATION
Establishment of the Plastics and Chemicals
sector development zone through the
facilitation of general and specific industrial
infrastructure, technical workforce and
business support services to manufacture
high value added and fast growing branded
plastics and chemical products for the local,
regional and other international export
markets.
PROPOSED LOCATION• Dr. Kenneth Kaunda District
According to research undertaken by the DTI on the Plastics sector, SA
enjoys a supply of polypropylene (PP) and polyvinylchloride (PVC) that
exceeds current domestic demand.
As a result, the bulk of these raw materials are exported in an un-
beneficiated state and the beneficiation thereof has tremendous potential to
create substantial industry growth and employment opportunities.
Chemical products have also been identified as the basic inputs to several
industries operating in the NWP. There exists a market opportunity to
broaden existing chemical product manufacturing and to promote the
introduction of new chemical product manufacturing including the
incubation of SMME chemical product manufacturing.
PROJECT DESCRIPTION PROJECT MOTIVATION
Renewable energy projects present the
greatest potential for industrial development
facilitation via NWPG and therefore projects
surrounding these opportunities have been
presented as sector based projects under:
• Metal Fabrication, Capital and Transport
Equipment sector development zone
• Platinum beneficiation sector
development zone
PROPOSED LOCATION• Province wide
Four key renewable energy sources and associated economic
opportunities, that hold the greatest application potential and competitive
strength, have been identified for the NWP including:
• Cogeneration, due to the large number of smelters and substantial
industrial processing plants (however utility returns and project cost
present a barrier)
• Fuel cells in terms of renewable energy applications and localized
manufacture, which would also increase demand for PGMs (however
the current challenge is to develop a market for fuel cells)
• The development of the Energy Service Company industry, to facilitate
and increase the roll-out of energy efficiency and the implementation of
renewable energy technologies in the NWP
• The application of solar photovoltaic for electricity generation in
addition to Solar Water Heaters (SWH)
ATTRACTIVE INVESTMENT OPPORTUNITITES
RENEWABLE ENERGY
PROJECT DESCRIPTION PROJECT MOTIVATION
Although SA has an abundance of RE resources
available, the applicability of these for the NWP
depend on a number of factors, and
consequently not all are equally viable for the
NWP. RE sources that were identified to hold the
most potential and a competitive strength for the
NWP are:
• Solar energy (Photovoltaics (PV) as well as
Solar Water Heaters (SWH),
• Municipal solid waste,
• Hydrogen and fuel cell technologies,
• Biomass, and
• Energy Efficiency (EE).
PROPOSED LOCATION
• Province wide
The Renewable Energy (RE) strategy of the North West Province
(NWP) was developed in response to a need for the NWP to participate
meaningfully within the RE sector of South Africa. The Premier of the
NWP, Hon Thandi Modise, has consequently made a declaration that
NWP will develop a provincial RE strategy to provide guidance to
stakeholders and assign roles and responsibilities for the development
and production of RE in a sustainable manner across the NWP..The RE
strategy aims to:
• Improve the NWP’s environment;
• Reduce its contribution to climate change;
• Alleviate energy poverty;
• Promote economic development;
• Facilitate job creation; and
• Develop the NWP green economy.
ATTRACTIVE INVESTMENT OPPORTUNITITES
RENEWABLE ENERGY
N18(from
Vryburg)
N18(from
Botswana)
Cape-Cairo Rail corridor
MAFIKENG INTERNATION AIRPORT HUB
20
MAFIKENG INTERNATION AIRPORT HUB
Manufacturing and export hub• Leather processing• Tiles manufacturing• High Tech Manufactured
Central Business services• Duty free zone • Banking• Retail and Shopping• Restaurant• Convention Centre• Business Processing Outsourcing• Hotels• Office Park• Car Park
Multimodal Transport System• Airport Development and Management• Airplane repair and maintenance
services• Aviation Academy• Cargo Freight Management• International entry for non scheduled
cargo air services • Rail and road network system• Passenger flight services
21
MAFIKENG INTERNATION AIRPORT HUB
Agro processing Industrial Park• Packaging of vegetables and oils• Production of bio-fuels• Meat and fish processing• Packaging of fruits and fresh
flowers
Logistics Hub• Bonded Warehousing• Container Park Facilities• Cold Room Storage Facilities
(perishable goods)• Livestock• Peace missions logistics services
station• Inner road and rail network
NORTH WEST PROVINCE TOURISM :PROFILE
.
NW OFFERS:
Some of the finest game reserves
Cultural sights
Archaeological treasures
Adrenalin adventures
World class entertainment resorts
HERITAGE DESTINATION OF SOUTH AFRICA
THIS IS WHERE:
Our great human journey began.
Wild possibilities intoxicate the senses.
Game is wandering freely
Great birds own the wide open skies
NORTH WEST PROVINCE TOURISM : 7 MAJOR ICONS
Mahikeng Capital City
Taung Heritage Site
Pilanesburg National Park
Vredefort Dome Heritage Site
Madikwe Game Reserve
Hartbeespoort Dam
Sun City and Lost City
SECTOR PROJECT NAME
PROJECT DESCRIPTION EST VALUE (R mil)
CURRENT STATUS
AGRI BUSINESS
MEAT PROCESSING PLANT
Primary/Secondary Beef Production Agro Processing. Mechanized Feedlot and Development of Abattoir. The focus of the business will be to run a feedlot, an abattoir and a meat processing plant on the farm.PROJECT LOCATION: Bojanala Platinum District Municipality, Rietvlei outside Rustenburg. PROJECT CAPACITY: The aim is to initially slaughter 450 to 500 cattle per month, 500 sheep and 300 goats per month. Due to the fact that the business has export orders already, it is intended to build up to 14000 sheep and up to 4000 goats per month.
R75 Million Feasibility Study and Business Plan Completed and Available
LUCERN PELLET PLANT
Set up of Manufacturing Facility for Pelletizing of Lucerne in Bojanala Region. The project entails the establishment and running of a Lucerne Pellet PlantPROJECT LOCATION: Bojanala Platinum District Municipality , Mamogaleskraal, outside the town of Brits in the North West Province of South Africa. PROJECT CAPACITY: The raw material beneficiation model also offers an integration with land reform beneficiaries based on an out grower scheme who will supply the pellet plant with the required Lucerne and maize crop
R25 Million Business Plan Complete and Available
EGG BROILER PLANT
Establishment of an egg laying project plant. PROJECT LOCATION: Bojanala Platinum District Municipality , farm BS27 Boekenhoutfontein 13 kilometres from Rustenburg.PROJECT CAPACITY: The project will start with two houses of layers that will accommodate 26000 hens each. It is envisaged that this capacity will be expanded in the near future. It is intend producing 93,600,000 eggs to realize R73,008,000 in five years. In terms of water and electricity the farm is sufficiently supplied to handle more demand. There are 4 good boreholes.
R12.4 Million GREEN FIELD:NEW PROJECT (business plan being developed)
Basket of Investment Opportunities
SECTOR PROJECT NAME
PROJECT DESCRIPTION EST VALUE (R mil)
CURRENT STATUS
MINING
MANUFACTURING OF CONVEYOR
100% Black Owned and Managed Company Specializing in the manufacturing of high quality conveyor belt rollers for mining, manufacturing, power generation and other industriesPROJECT LOCATION: Bojanala Platinum District Municipality , NWDC Industrial Complex. Tlhabane, Rustenburg.PROJECT CAPACITY: Conveyor design works, fabrication of conveyor engineering structure, supply and maintenance of motors, gear box, etc. the current machinery has a capacity to produce 500 troughs/rollers a day, 2500 a week and 10 000 a month
R11.5 Million Business Plan Complete and Available
ANDMANUFACTURING
SLATE BENEFICIATION PROJECT
This is a Slate mining and beneficiation project, which is operational looking for investment regarding new mechanization to capacitate the project for new marketsPROJECT LOCATION: Bojanala Platinum District Municipality , Koster PROJECT CAPACITY:The project currently employs 20 people and has the potential to employ more if the capital investment goes through.
R5 Million Due diligence Complete and AvailableBusiness Plan Complete and Available
Other Investment Opportunities
NWDC VALUE ADD SERVICES
Facilitating joint venture and equity partnerships
Providing information on financing options and investment incentives
Providing advice on feasibility studies and business plans
Assisting investors to obtain work and business permits
Providing assistance in obtaining suitable factory space
Assisting existing firms to expand and re-invest
Assisting companies to find export markets for their products
Advisory services to improve company growth and performance
Competitiveness improvement support
Advice on productivity and process improvement
THANK YOUDANKIE
KE A LEBOGA