Northern Cape Business 2017-18 edition

SPECIAL FEATURE
The planned Special Economic
Zone at Upington (linked to the
Upington International Airport)
is seen as a possible site for solarrelated
manufacturing.
One the biggest funders of the
renewable energy programme,
the Industrial Development
Corporation, has spent R11.4-
billion of its commitment so far in
the Northern Cape, out of a total
of R14.2-billion. Part of the IDC’s
role has been to take up a 20%
stake in the projects on behalf of
local communities.
A major new investment in zinc
extraction by Indian firm Vedanta and an uptick in ironore
prices going into 2017 has revived the mining outlook
after some tough times. The IDC also has a stake
in this mine. Diamond mine Petra Diamonds reports
good progress on its mines in and around Kimberley.
On the scientific front, the Northern Cape is hosting
one of the great projects of the age, the Square
Kilometre Array (SKA) radio telescope, a multi-national
effort that will delve into the secrets of the universe
from a base in Carnarvon in the Karoo.
The province’s new university in Kimberley, the
Sol Plaatje University, gives Northern Cape students
a chance to study at tertiary level without having to
incur the expense and inconvenience of travelling
outside the province.
The rise of the renewable energy sector has given
the Northern Cape a chance to break its dependence
on the mining sector, subject as it is to global
price fluctuations. The provincial government of the
Northern Cape has a number of schemes to further
diversify the economy and to find ways to further
sustain the mining industry in the province. To that
end, the government held three summits in 2016.
These dealt with small, medium and micro enterprises
and procurement, renewable energy and mining.
In the longer term, the provincial government has
identified three key clusters that it wants to concentrate
on. These are:
• Mineral beneficiation
• Agri-processing
• Energy and technology.
Geography
The Northern Cape is South Africa’s largest province,
covering 30% of the country’s landmass on the dry
western side of the country bordering the Atlantic
Ocean, Namibia and Botswana. The provincial population
of just over a million represents 2.2% of the
country’s population and the principal languages
are Afrikaans (54%) and Setswana (33%). The San
people live in the arid regions of the north.
The province is well served in transport and communications,
despite its vast size (361 830 square
kilometres). Airports at Kimberley and Upington are
quite substantial and many smaller towns, mines
and game reserves have landing strips. Although
the province has many roads, maintaining them is
a very difficult and expensive task.
The Northern Cape does not have a major port
although Port Nolloth serves as an adequate fishing
harbour. Investigations into the creation of a
deep-water port are well advanced. Another project
could see the province’s small harbours and
bays developed as well. A unit within the national
Department of Public Works aims to spark economic
development in coastal areas.
The Orange River is the most important geographical
feature of the province, providing irrigation
to support a thriving grape, sultana and wine
industry. One small hydro-electric power scheme
has been approved, but the potential for more such
schemes is massive.
NORTHERN CAPE BUSINESS 2017/18
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