433369666-The-Case-for-Investing-in-South-Africa

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110 | INFRASTRUCTURE DEVELOPMENT PLAN PRESENTS SUBSTANTIAL INVESTMENT OPPORTUNITIES • The South African government is committed to increased public sector procurement from local suppliers so as to have beneficial impacts on the domestic economy. • A wide range of products has been designated for procurement by public sector entities (national, provincial and municipal government departments, as well as state-owned companies) from local producers. • Product designations can play a crucial role in supporting production activity for local producers, as they secure a considerable source of demand for the respective products. • Product designations also open up opportunities for the expansion of existing production capacity or investment in new domestic manufacturing capacity. PRODUCTS DESIGNATED FOR PROCUREMENT BY SOUTH AFRICAN PUBLIC SECTOR ENTITIES FROM DOMESTIC PRODUCERS, WITH MINIMUM LOCAL CONTENT THRESHOLDS Industry/sector/sub-sector Minimum threshold for local content Buses (bus body) 80% Textiles, clothing, leather and footwear 100% Steel power pylons, monopole pylons, Steel substation structures, powerline hardware, Street light steel poles Steel lattice towers 100% 100% 100% 100% Canned / processed vegetables 80% Pharmaceutical products: OSD tender Family planning tender Rail rolling stock 65% Set top boxes (STB) 30% Furniture products: Office furniture School furniture Base and mattress 70% (volumes) 50% (value) 85% 100% 90% Solar water heater components 70% Electrical and telecom cables 90% Valves products and actuators 70% Residential electricity meters: Prepaid electricity meters Post-paid electricity meters SMART meters 70% 70% 50% Working vessels / boats (all types): Components 10%-100% Conveyance Pipes 80%-100% Transformers and shunt reactors: Class 0 Class 1 Class 2 Class 3 Class 4 Components and conversion activities Solar PV components: Laminated PV modules Module frame DC combiner boxes Mounting structure Inverter Source: (tables) Department of Trade, Industry and Competition 90% 70% 70% 45% 10% 50%-100% 15% 65% 65% 90% 40% Industry/sector/sub-sector Two-way radio terminals and associated equipment: Portable radio Mobile radio Repeater Components Rail signaling Components Minimum threshold for local content 60% 60% 60% 20%-100% 65% 40%-100% Wheely bins 100% Fire-fighting vehicle: Crew cabin Super structure Assembly Steel products and component for construction: • Steel value-added products Fabricated structural steel Joining/connecting components Frames Roof and cladding Fasteners Wire products Ducting and structural pipework Gutters, downpipes and lauders Plates Sheets Galvanised and colour-coated coils Wire rod and drawn wire Sections Reinforcing bars Pumps, medium voltage (MV) motor and associated accessories: Casting or frame fabrication Fabrication and winding of the rotor core Accessories Assembly and testing of the fully-built unit Rail permanent way: Rails and rail joints Ballasts Ballastless Turnouts/switches and crossings Railway sleepers Rail fastening and accessories Railway maintenance of way plant and equipment Assembly and testing of fully built units 30% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 70% 100% 100% 100% 100% 90% 100% 100% 100% 100% 100% 100% 70% 100%
GREEN INFRASTRUCTURE INVESTMENT OPPORTUNITIES • South Africa is committed to investing in the greening of its economy, with a strategic focus on: - Renewable/alternative energy; - Improved energy efficiencies; - Emissions/pollution mitigation; - Natural resource management. • The country is rolling out an Integrated Energy Plan (IEP) to address energy requirements going forward, including electricity and liquid fuels. • The anticipated investment in renewable energy alone is estimated at ZAR209.7-billion, of which ZAR41.8-billion from foreign investors and financiers. • Wind and solar technologies have been attracting the most interest due to their relatively mature stage of development and South Africa’s plentiful solar and wind resources. • Renewable energy projects added 3 976 MW of electricity generation capacity to the national grid, while a total of 6 422 MW has already been procured through seven bid rounds. • The 62 projects operational for more than 12 months generated an estimated 10 648 GwH over the period April 2018 to March 2019, equal to 96% of the energy contribution projection from these projects for the period, with 28 projects exceeding their energy contribution projections. • Since inception, renewable energy generation has avoided an estimated 36.2-million tons of carbon emissions and water savings of 42.8-million kiloliters. • More renewable energy projects are expected to be rolled out, given government’s intention to procure some 22 876 MW in South Africa’s transition to a low-carbon economy. • The roll-out of renewable energy and energy efficiency technologies is leading to increasing demand for numerous components. Although SA’s industrial base can accommodate some of the procurement needs, new industries are being/ will be established to cater for rising demand, including the production of associated items (e.g. solar/wind energy technologies and components). 2 500 2 000 1 500 1 000 500 0 Procured vs determined Capacity Per technology (MW) Determined 6 360 MW 53% 1 200 MW 50% 6 225 MW 37% 540 MW 14% 400 MW 1 2 3 3.5 4 1S2 2S2 Hydro 0 14 0 0 5 0 0 Biomass 0 0 17 0 25 10 0 Landfill 0 0 13 0 0 0 0 Conc Solar 150 50 200 200 0 0 0 Solar PV 627 417 435 0 813 30 50 Wind 649 559 787 0 1 363 9 0 25% Procured 6 360 MW Procured 3 357 MW Operational 1 980 MW 1 200 MW Procured 600 MWOperational 500 MW 6 225 MW 540 MW 400 MW Procured 2 292 MW Operational 1 474 MW Procured 74 MW Operational 22 MW Procured 99 MW Operational 0 MW SELECT INVESTMENT OPPORTUNITIES IN GREEN INFRASTRUCTURE AND RELATED VALUE CHAINS: • Roll-out of renewable energy technologies. • Adoption of energy efficiency technologies. • Solar energy technologies and components (solar panels, solar water geysers, timers, etc.). • Wind turbines and components. • Recycling (plastics, paper, glass, e-waste, etc.). • Electric vehicles and components. • Green IPPPP buildings-related Overview | materials March 2019 & products. • Desalination plants. • Energy storage. The little have Later diver | 111 only BW3, proc acro PV w The Augu proc incre prom an a spec dete inves whic main Prog capa per mad To d targe 400 M More proc 6 360 CSP of 1 proc 2 292 only hydro proc For 400 M been unde of th The 9 from
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THE CASE FOR INVESTING IN SOUTH AFR
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CONTENTS 1. WHY INVEST IN SOUTH AFR
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10 REASONS WHY YOU SHOULD INVEST IN
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| 3 WORLD-RENOWNED FOR INDUSTRIAL I
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| 7 SOUTH AFRICA AT A GLANCE • So
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| 9 SOUTH AFRICA AT A GLANCE: INFRA
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| 11 SOUTH AFRICA AT A GLANCE: SOCI
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3. ECONOMIC OVERVIEW
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18 | - Manufacturing output increas
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20 | FISCAL POLICY GEARED TOWARDS F
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22 | GLOBAL ECONOMIC DEVELOPMENTS
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24 | RELATIVE PERFORMANCE OF SELECT
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4. POLICY FRAMEWORK
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30 | MICROECONOMIC POLICY INTERVENT
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32 | INDUSTRIAL POLICY SUPPORT Attr
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34 | TRADE POLICY: MAIN BENEFITS OF
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5. ENABLING ENVIRONMENT
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40 | EASE OF DOING BUSINESS: SOUTH
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42 | ATTRACTIVE INCENTIVES TO SUPPO
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6. OPPORTUNITIES FOR INVESTORS
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48 | SECTORAL STRENGTHS OF SOUTH AF
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50 | EXPORT-ORIENTED SECTORAL OPPOR
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52 | SOUTH AFRICA AS A KEY REGIONAL
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6.1 AGRICULTURE AND AGRO-PROCESSING
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58 | SA GDP, 2018 WELL-ESTABLISHED,
Page 64 and 65: 60 | AGRICULTURE AND AGRO-PROCESSIN
Page 67: 6.2 MINING AND MINERALS BENEFICIATI
Page 70 and 71: 66 | A HIGHLY DEVELOPED AND DIVERSI
Page 72 and 73: 68 | BASE METALS AND METALS FABRICA
Page 74 and 75: 70 | INVESTMENT OPPORTUNITIES IN MI
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Page 80 and 81: 76 | MANUFACTURING SECTOR’S EXPOR
Page 82 and 83: 78 | AUTOMOTIVE INDUSTRY: EXPORT-OR
Page 84 and 85: 80 | AUTOMOTIVE VALUE CHAIN: INVEST
Page 86 and 87: 82 | ELECTRICAL MACHINERY AND EQUIP
Page 88 and 89: 84 | CHEMICALS AND CHEMICAL PRODUCT
Page 90 and 91: 86 | CLOTHING, TEXTILES, FOOTWEAR A
Page 92 and 93: 88 | ADVANCED MANUFACTURING • The
Page 94 and 95: 90 | ADVANCED MANUFACTURING: OPPORT
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Page 100 and 101: 96 | Contribution to the economy St
Page 102 and 103: 98 | BUSINESS PROCESS OUTSOURCING (
Page 104 and 105: 100 | FINANCE AND INSURANCE • The
Page 106: 102 | OCEANS ECONOMY • Several fa
Page 111 and 112: | 107 AN EXTENSIVE INFRASTRUCTURE D
Page 113: | 109 INFRASTRUCTURE DEVELOPMENT PL
Page 119 and 120: SOUTH AFRICA: BUILDING PARTNERSHIPS
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