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ZF Mgcawu District Municipality Investment Prospectus

The ZF Mgcawu District Municipality is one of South Africa’s most “international” municipalities in that its neighbours include Namibia and Botswana. Investment opportunities covered in detail in this prospectus include Upington Industrial Park, Upington Airport and MRO facility, !Xaus Lodge expansion and Augrabies Falls National Park suspension bridge.

The ZF Mgcawu District Municipality is one of South Africa’s most “international” municipalities in that its neighbours include Namibia and Botswana. Investment opportunities covered in detail in this prospectus include Upington Industrial Park, Upington Airport and MRO facility, !Xaus Lodge expansion and Augrabies Falls National Park suspension bridge.

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<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY<br />

INVESTMENT PROSPECTUS<br />

<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY IS<br />

OPEN FOR BUSINESS


<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY<br />

INVESTMENT PROSPECTUS<br />

CONTENTS<br />

1 FOREWORD<br />

Councillor MC Basson, Executive Mayor of the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong>,<br />

highlights the role that investment can play in fighting inequality and unemployment<br />

2 THE NORTHERN CAPE AT A GLANCE<br />

3 THE NORTHERN CAPE IN NUMBERS<br />

4 INTRODUCTION<br />

<strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> lies between the red dunes of the Kalahari and<br />

the life-giving Orange River<br />

5 DISTRICT STATISTICS<br />

Economic, gross domestic product and labour market<br />

6 WELCOME<br />

Acting Municipal Manager, Mr AK Tieties, welcomes investors with news that the<br />

<strong>District</strong> is filled with possibilities for growth and economic development<br />

7 MAIN SECTORS AND INFRASTRUCTURE<br />

Solar towers and panels are the newest infrastructure in an area which already<br />

supports thriving mining, agricultural and tourism sectors<br />

8 NATURAL RESOURCES AND COMPETITIVE ADVANTAGES<br />

Vast iron-ore resources and fertile riverside soil are complemented by the<br />

immense potential of solar power<br />

9 LOCAL MUNICIPALITIES AND TOWNS<br />

The Green Kalahari offers remarkable contrasts<br />

10 WELCOME TO THE GREEN KALAHARI REGION<br />

What to see and do<br />

12 TOURISM: Quiver Tree Route<br />

13 TOURISM: Kalahari Red Dune Route<br />

INVESTMENT PROJECTS<br />

14 UPINGTON INDUSTRIAL PARK<br />

16 AVIATION PARK AT UPINGTON INTERNATIONAL AIRPORT<br />

18 !XAUS LODGE EXPANSION PROJECT<br />

19 SUSPENSION BRIDGE AT AUGRABIES FALLS<br />

20 BUSINESS AND INVESTMENT<br />

Plentiful assets and resourceful businesses<br />

IBC NATIONAL INCENTIVE SCHEMES<br />

IMAGE CREDITS: Cover: Solar farm, Scatec; Augrabies Falls viewing point, Rudolph de Girardier/NCTA; farm on the<br />

Orange River, Dippenaar Choice; Kolomela Mine, Kumba Iron Ore. Outside back cover: Abengoa. Other: Technicolour<br />

sky over Orange River, SA Tourism/Flickr; Dorper sheep, KLK; Finsch Diamond Mine, Petra Diamonds; farm on the<br />

Orange River, Dippenaar Choice Fruit; Upington from above, Anicetolopez/Wikimedia; Kakamas canals for hydroelectric<br />

project, CSV Construction; mine truck, Anglo American; Orange River Cellars rooftop solar, Solareff; pecan<br />

packing, GWK; refuelling at UIP, HP Baumeler and Kurt Zoller/Wikimedia; poultry business, Globeleq; Quiver tree<br />

forest, Joachim Huber/Wikimedia; raisin sorting, Carpe Diem; Redstone CSP project, Roadlab; Redstone engineering,<br />

Grinaker-LTA; rooibos harvesting, Bokkeveld Rooibos Tea; Sirius Solar Plant, Scatec; Witsand Nature Reserve, SA<br />

Tourism; wine cellar, Orange River Cellars; all other images, Northern Cape Tourism Authority (NCTA).<br />

Produced by Global Africa Network


1<br />

FOREWORD<br />

THE PERFECT DESTINATION<br />

FOR ACHIEVING GOOD INVESTMENT RETURNS<br />

Councillor MC Basson, Executive Mayor of the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong><br />

<strong>Municipality</strong>, highlights the role that impactful investment can play in<br />

pushing back the frontiers of poverty, inequality and unemployment.<br />

It is my pleasure to welcome all investors and stakeholders to the <strong>ZF</strong><br />

<strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong>.<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> forms the mid-northern section<br />

of the Northern Cape Province, bordering Botswana in the north<br />

and Namibia in the west. The <strong>District</strong> contains the Kalahari Desert<br />

and Kgalagadi Transfrontier Park.<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> comprises five local municipalities namely<br />

Dawid Kruiper, Kai !Garib, Tsantsabane, !Kheis and Kgatelopele. Upington<br />

is where the municipal government is located. Upington is rich<br />

in solar plants due to the weather conditions in the area.<br />

The Tsantsabane Local <strong>Municipality</strong> accommodates the main towns<br />

of Postmasburg and Beeshoek. Economically, Tsantsabane is known<br />

for being rich in minerals and for its mining, agriculture, manufacturing<br />

and farming sectors.<br />

Executive Mayor, Councillor MC Basson<br />

The Enterprise Development Programme run by solar-power<br />

plant developer Globeleq is boosting local incomes.<br />

The Kai !Garib Local <strong>Municipality</strong> consists of three large towns,<br />

Kakamas, Keimoes and Kenhardt. Kai !Garib is characterised by its<br />

unique landscape, with the Kalahari Desert on the one side, and<br />

the Orange River on the other side and is known for its production<br />

of grapes and agriculture similar to the !Kheis Local <strong>Municipality</strong>.<br />

The Kai !Garib Local <strong>Municipality</strong> is also host to the well-known<br />

Augrabies Falls which is one of the biggest attractions for national<br />

and international tourists.<br />

Solar plants, mining and agricultural operations are among others<br />

the economic activities that reinforce the growth and development of<br />

the <strong>District</strong> and largely contribute to the achievement of rural economic<br />

transformation.<br />

We believe that through this <strong>Investment</strong> Summit, you will gain<br />

an appreciation of the opportunities that the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong><br />

<strong>Municipality</strong> has to offer. It is our deliberate intention to push back<br />

the frontiers of poverty, inequality and unemployment and this<br />

<strong>Investment</strong> Summit offers us the opportunity to be at the forefront of<br />

changing the lives of our people for the better.<br />

The goal of this summit is to boost the economic potential of every<br />

Local <strong>Municipality</strong> in the <strong>District</strong>, with the aim of strengthening overall<br />

macro-economic growth. This will be achieved by fostering local economic<br />

growth, creating jobs and promoting development initiatives in<br />

alignment with sustainable development principles. If you are looking<br />

for investment opportunities with noticeable returns, then the <strong>ZF</strong> <strong>Mgcawu</strong><br />

<strong>District</strong> is the perfect destination.


2<br />

THE NORTHERN CAPE AT A GLANCE<br />

NORTHERN CAPE is unique as a trade and investment destination.<br />

Its vast geographical extent<br />

and natural resources, complemented<br />

by human capacity<br />

and sound infrastructure, offer<br />

its partners a wide array<br />

of attractive trade and investment<br />

opportunities meeting<br />

global standards.<br />

The geographic location of<br />

the Northern Cape provides<br />

easy access to SADC markets<br />

and export ports via sea<br />

and air. The entry points in<br />

terms of access to Namibia<br />

and Botswana, extending to<br />

Zambia, provide a unique<br />

competitive advantage.<br />

The mineral profile of the<br />

Northern Cape has contributed<br />

to the establishment<br />

of global trade centres such<br />

as London and New York<br />

through diamond resources<br />

and mining listings. In<br />

addition to being for many<br />

years the leading source of<br />

diamonds, the province is a<br />

key iron ore and manganese<br />

producer, which is complemented<br />

by lime, granite, semi-precious stones and other minerals.<br />

The mining sector continues to expand, and with it opportunities in<br />

mining supplies and mineral value addition.<br />

The South African government has prioritised the diversification of<br />

energy sources to supply the national grid, and the focus on renewable<br />

energy has stimulated the demand for solar, wind, hydro and<br />

biomass energy sources.<br />

No province is better equipped in these fields than the Northern<br />

Cape, which has become the preferred investment destination for<br />

renewable energy companies. Growth in the energy sector has<br />

stimulated the manufacturing and agricultural sectors, which in turn<br />

has stimulated the development of infrastructure and services. Key<br />

projects include the Boegoebaai deep-sea port, Kathu Industrial<br />

Park, Upington Industrial Park and Vioolsdrif Dam. These projects<br />

are complemented by a well-developed settlement, transport and<br />

communication network. Huge opportunities also exist in value<br />

addition to the Northern Cape’s agricultural and mineral resources.<br />

These developments, opportunities and the associated business<br />

travel will undoubtedly contribute significantly to the further growth in<br />

travel and tourism into and within the province. To respond effectively<br />

to this growth in tourism demand and remain globally competitive,<br />

the province needs to attract suitable and sustainable investment<br />

across the tourism and other sectors.<br />

Human capital is key to the sustainable development of any<br />

region and the Northern Cape boasts the newly established<br />

Sol Plaatje University and enjoys representation through<br />

technology stations of other universities including Unisa and<br />

the Vaal University of Technology.<br />

The province is also served by a well-established multi-campus<br />

Technical Education and Vocational Training College.<br />

Further investments in building the requisite skills and capacities<br />

to meet the demands of our province’s growth and development<br />

are critical.<br />

Provincial and local government organs in the Northern Cape<br />

underpin all the potential of the province, and are dedicated to<br />

ensuring a sound, safe and well-governed investment destination.


3<br />

NORTHERN CAPE<br />

NORTHERN CAPE PROVINCE SOUTH AFRICA<br />

PROVINCE<br />

South Africa<br />

Gross Domestic Product<br />

Economic growth: 2011-2021<br />

8<br />

6<br />

4<br />

2<br />

0<br />

-2<br />

-4<br />

-6<br />

-8<br />

%<br />

ECONOMICS<br />

130 bn<br />

Current prices<br />

Northern Cape<br />

2011 2013 2015 2017 2019 2021<br />

Economic growth annual % change<br />

2.1%<br />

of national GDP<br />

National Total<br />

2020-2021 10 year avg.<br />

Northern Cape 6.9% 1.2%<br />

National Total 4.9% 0.9%<br />

Sector composition<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Top 10 sectors (GVA) - R billions<br />

2021<br />

Mining of metal ores 28.50<br />

Public administration and defence activities 11.45<br />

Finance and insurance 8.37<br />

Agriculture and hunting 8.34<br />

Education 7.82<br />

Health and social work 7.29<br />

Other business activities 6.86<br />

Wholesale and commission trade 5.18<br />

Land and water transport 5.08<br />

Post and telecommunication 4.13<br />

All other smaller sectors 25.29<br />

LABOUR MARKET<br />

Employment<br />

302,000<br />

number of jobs<br />

2.1%<br />

of national employment<br />

Unemployment<br />

Jobs<br />

Primary 2021 share Created / lost since 2011<br />

Agriculture 12.3%<br />

Mining 14.5%<br />

Secondary<br />

Manufacturing 4.1%<br />

Electricity 0.5%<br />

Construction 5.0%<br />

Tertiary<br />

Trade 17.6%<br />

Transport 2.2%<br />

Finance 9.3%<br />

Community 34.7%<br />

-5 820<br />

427<br />

4 430<br />

Employment growth: 2011-2021<br />

6<br />

4<br />

2<br />

0<br />

-2<br />

-4<br />

Northern Cape<br />

National Total<br />

-6<br />

% 2011 2014 2017 2020<br />

Employment growth<br />

Annual % change<br />

<br />

27,3<br />

33,6<br />

Northern Cape National Total<br />

Informal employment 2021 - millions<br />

Northern<br />

Cape<br />

National<br />

Total<br />

Employees Informal %<br />

informal<br />

0.30 0.03 8.4%<br />

14.73 2.61 17.7%<br />

Northern<br />

Cape<br />

South Africa<br />

-4.4% -4.5%<br />

2021<br />

0.5% 0.7%<br />

10-year avg<br />

Source: IHS Markit Regional eXplorer version 2257


4<br />

INTRODUCTION<br />

<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY<br />

Between the red dunes and the Orange River<br />

Towns: Beeshoek, Danielskuil, Eksteenskuil, Groblershoop, Kakamas, Keimoes,<br />

Kenhardt, Lime Acres, Mier, Postmasburg, Rietfontein, Upington.<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> is one of South Africa’s most<br />

“international” municipalities in that its neighbours include Namibia and<br />

Botswana. The fertile banks of the Orange River, which runs through the<br />

district, give way further north to the wonders of the Kalahari Desert. Both<br />

natural features support a sophisticated tourism sector which leverages the<br />

attractions of water through adventure sports and the Augrabies Falls National<br />

Park and the sandy delights of the Kgalagadi Transfrontier Park. The Orange<br />

River supports a thriving agricultural sector and Upington, the administrative<br />

centre of the <strong>District</strong> <strong>Municipality</strong>, is a busy town with processing facilities for<br />

agricultural products. It also sports an airport with one of the longest runways<br />

in the world and hosts one of the campuses of the Northern Cape Rural TVET<br />

College. Kumba Iron Ore’s Kolomela iron-ore mine near Postmasburg is a large<br />

enterprise that exports huge volumes and materially affects the region’s GDP.<br />

The processing of wine and dried fruit is one of the biggest manufacturing<br />

activities in the province. Mining takes place in Kgatelopele, where diamonds<br />

and lime are found. Together with sheep and cattle farming, mining provides<br />

most of the employment to be found in the district. <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong><br />

<strong>Municipality</strong> has attracted a large number of large solar-power projects,<br />

including the country’s first concentrated solar power (CSP) projects.<br />

INVESTMENT OPPORTUNITIES COVERED IN GREATER<br />

DETAIL IN THIS PROSPECTUS INCLUDE:<br />

• Upington Industrial Park<br />

• Upington Airport and MRO facility<br />

• !Xaus Lodge expansion<br />

• Augrabies Falls National Park suspension bridge<br />

Further opportunities can be found in sectors such as tourism (lodges in and<br />

just outside the Kgalagadi Transfrontier Park and the Eiland Holiday Resort),<br />

renewable energy (Riemvasmaak community solar energy project) and<br />

manufacturing (within the Upington Industrial Park in<br />

sectors such as renewable energy components).<br />

LOCATION AND GEOGRAPHY<br />

Located in the north-west of the Northern Cape<br />

Province, and bordering as it does both Botswana in<br />

the north and Namibia in the north-west, about 60%<br />

of <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong>’s territory comprises<br />

the dry territories north of the Orange River that include<br />

the Kalahari Desert and the Kgalagadi Transfrontier<br />

Park. The eastern section of the district is part of the<br />

Ghaap Plateau, a part of the country that historically was<br />

known as Transorangia and which reveals fascinating<br />

geological and social history. Dry and hot conditions<br />

are experienced in summer and nights can be very<br />

cold. Recent years have seen an increase in flooding.<br />

The Orange River is the lifeblood of agriculture in the<br />

district, with grapes being widely farmed along its banks.<br />

Two important national roads traverse the district. The<br />

N10 runs towards the Eastern Cape while the N14 is the<br />

major east-west connector of the inland to the Atlantic<br />

coastline. Population: 286 000 (2022)<br />

DISTRICT MUNICIPALITY INFORMATION<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> is a Category C<br />

municipality.<br />

Municipal headquarters: Upington<br />

Postal address: Private Bag X6039, Upington 8800<br />

Physical address: Cnr Nelson Mandela Avenue and<br />

Upington 26 Road, Upington<br />

Tel: +27 54 337 2800<br />

Website: www.zfm-dm.gov.za


STATISTICS<br />

<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY<br />

5


6<br />

MESSAGE<br />

WELCOME TO<br />

<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY<br />

Acting Municipal Manager, Mr AK Tieties, welcomes investors with news that the <strong>ZF</strong> <strong>Mgcawu</strong><br />

<strong>District</strong> <strong>Municipality</strong> is filled with possibilities for growth and economic development.<br />

We strongly believe that by positioning the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> as<br />

an economically viable investment destination, we can help tackle<br />

the pressing issues of poverty, unemployment and inequality. Two<br />

parallel and mutually reinforcing roles of local government are the<br />

sustainable creation of an environment for economic development<br />

and the empowerment of local communities.<br />

We invite investors to join us in creating a thriving and inclusive<br />

economy. The prosperity of the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> hinges on<br />

synergy between the private sector and government, where a<br />

shared vision and commitment to progress can propel the <strong>District</strong><br />

towards a brighter and more prosperous future for all its residents.<br />

Your investment will create better conditions for economic growth<br />

and employment generation.<br />

INVESTMENT OPPORTUNITIES<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> has a myriad of growth and investment<br />

opportunities in several sectors. Since <strong>ZF</strong>MDM is the largest<br />

producer of agricultural commodities among all district municipalities<br />

in the Northern Cape it offers an excellent opportunity to focus<br />

on increased beneficiation of agricultural produce. Wine, grapes<br />

and raisins, animal hides and abattoirs are among the processing<br />

operations along the Orange Rivier. Towns such as Groblershoop,<br />

Kakamas and Upington are active in the processing of dates, olives,<br />

citrus and rooibos tea.<br />

The Upington Industrial Park is situated next to Upington<br />

International Airport and therefore offers the potential investor the<br />

luxury and efficiency of various modes of transport. Through the<br />

industrial park programme, investors can enjoy several benefits,<br />

ranging from a controlled access point to the incentivised provision<br />

of infrastructure and relaxed municipal tariffs. Upington Industrial<br />

Park forms part of the Northern Cape Industrial Corridor.<br />

The majority of solar investors in South Africa’s renewable<br />

energy scheme are located in the Northern Cape. As an example,<br />

the Redstone Concentrated Solar Power (CSP) Thermal Plant in<br />

Postmasburg in the Tsantsabane Local <strong>Municipality</strong> forms part of<br />

the Renewable Energy Independent Power Producer Procurement<br />

Programme (REIPPPP), which aims to bring additional megawatts<br />

into the country’s electricity system.<br />

Investors are encouraged to explore opportunities within the<br />

Upington Industrial Park for activities related to power generation,<br />

component manufacturing and other energy-related ventures.<br />

Tourism has been earmarked as one of South Africa’s national<br />

priorities in terms of its potential to stimulate economic growth and<br />

create jobs. Cultural villages that reflect the rich history of the area<br />

can become major tourist attractions in conjunction with eco-tourism<br />

initiatives. The Kalahari Gemsbok Nature Reserve and the Augrabies<br />

Falls Nature Reserve serve as significant tourist destinations.<br />

Excellent opportunities lie in the realm of transport and logistics<br />

infrastructure. Located in close proximity to the borders of Botswana<br />

and Namibia, <strong>ZF</strong>M <strong>District</strong> is strategically positioned to serve as a<br />

pivotal transportation and logistics hub, connecting both local and<br />

international economic players to the broader African market.<br />

You are welcome to discover the charm of our <strong>District</strong> and the<br />

numerous investment prospects provided by the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong><br />

<strong>Municipality</strong>. We encourage you to savour the natural beauty and rich<br />

cultural diversity of our municipality.


7<br />

DISTRICT ECONOMY<br />

MAIN SECTORS AND INFRASTRUCTURE<br />

Solar towers and panels are the newest infrastructure in an area<br />

which already supports thriving mining, agricultural and tourism sectors.<br />

Anyone flying in to Upington Airport cannot fail to notice the large<br />

solar tower looming over the flat countryside. About 200km east of<br />

that tower is an even bigger solar tower, in fact the second-tallest<br />

concrete building in South Africa. And the visitor will soon learn that<br />

the airport’s runway is among the longest in the world. The trains<br />

that take the manganese and iron ore of the province to the Port of<br />

Saldanha are among the longest and heaviest that have ever done<br />

duty anywhere on the planet. So, in the province which accounts for<br />

nearly a third of the landmass of South Africa, infrastructure tends<br />

to be on the big side.<br />

MAIN ECONOMIC SECTORS<br />

Iron ore, manganese, lime and diamonds dominate the active and<br />

prosperous mining sector. Agriculture is shaped by the unique and<br />

varied climate of the region and the effects of the Orange River and<br />

associated irrigation schemes. Grapes, sultanas, dates, peaches and<br />

citrus are grown in the region while cotton and lucerne can be found<br />

where irrigation is present. Sheep and goat farming is widespread.<br />

The district offers many tourism opportunities, from surfing on the<br />

red dunes of the Kalahari Desert, bird and game-watching in a range<br />

of nature and game reserves to canoeing down the Orange River,<br />

there really is something for everyone.<br />

Two national parks offer widely different experiences. Water flowing<br />

powerfully through the Orange River Gorge creates the thundering<br />

noise that gives the Augrabies Falls its name, within the Augrabies<br />

Falls National Park. The Kgalagadi Transfrontier Park, where animals<br />

are free to roam between Namibia, Botswana and South Africa,<br />

has large concentrations of wildebeest, springbok, eland and red<br />

hartebeest and the ever-popular meerkat.<br />

INFRASTRUCTURE<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> has well-established and extensive<br />

infrastructure. Upington’s pivotal position as a key point along the<br />

envisioned Northern Cape Industrial Corridor is indicative of its<br />

logistical advantages. The N10 and N14 are important road links<br />

that connect the province to other provinces and countries.<br />

Upington also has a well-developed airport and a large number of<br />

accommodation options for tourists about to set off on one of the<br />

many routes that start in the town, either down the river or into the<br />

Kalahari. The 90-room Protea Hotel by Marriott overlooks the river<br />

while the Upington Inn is run by Country Hotels.<br />

Upington is where the district municipality administration is located<br />

and where most companies and organisations such as Raisins<br />

South Africa locate their headquarters. The town is well-served<br />

by educational institutions and hosts one of the campuses of the<br />

Northern Cape Rural TVET College. Further west down the Orange<br />

River in Kakamas, SA Raisins has established the Vine Academy in<br />

partnership with Martin Oosthuizen High School, one of the oldest<br />

agricultural schools in South Africa.<br />

Upington hosts an army base and Lohatla south of Postmasburg<br />

is where the 150 000ha SA Army Combat Training Centre is located.


8<br />

NATURAL RESOURCES<br />

AND COMPETITIVE ADVANTAGES<br />

Vast iron-ore resources and fertile riverside soil<br />

are complemented by the immense potential of solar power.<br />

The Kolomela and Beeshoek mines of Kumba Iron Ore and Assmang<br />

are two of the largest enterprises operating in South Africa’s mining<br />

sector, and both companies have been working on extending the<br />

lives of their mines. Archaeological finds in the eastern parts of the<br />

<strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> indicate that the earliest residents<br />

of the area were mining for minerals many thousands of years ago.<br />

Other minerals include lime and diamonds. Petra Diamonds<br />

operates the Finsch Mine near Lime Acres and generated revenue<br />

for the company in the 2022 financial year of $15.7-million. Afrimat<br />

has recently bought into the area with acquisition of Coza Mining<br />

and its three mines, Jenkins, Doompan and Driehoekspan. KP Lime<br />

is the fairly new owner of what used to be PPC Lime’s mines and<br />

processing facilities at Lime Acres.<br />

Agriculture in what is now known as the Green Kalahari has never<br />

been easy but the indigenous people who kept livestock and the<br />

pioneering farmers who arrived later were hard-working and<br />

resourceful. Sheep (Karakul and Dorper) and goats are widely held<br />

across the municipality.<br />

The result is a network of irrigation canals and sophisticated<br />

farming operations along the banks of the Orange River and beyond.<br />

Table grapes are cultivated on a large scale and exported while many<br />

varietals of wine are bottled from grapes grown along the river.<br />

About 100 years after a group of Kakamas farmers first<br />

started using the power of the river to produce power, the 10MW<br />

Kakamas Hydro-Electric Power Plant was launched in 2015 as part<br />

of the national Renewable Energy Independent Power Producer<br />

Procurement Programme (REIPPPP). Australian engineering<br />

company Entura Hydro Tasmania partnered with the Industrial<br />

Development Corporation (IDC), Hydro SA, Old Mutual, the Kakamas<br />

Hydro Community Trust and Nedbank in its construction.<br />

The better-known elements of the REIPPPP relate to the various<br />

bids that have been held to procure wind and solar projects. In both<br />

of these modes, the Northern Cape has been a national leader but in<br />

terms of solar, the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> really stands out<br />

in its ability to attract local and international investors from Spain and<br />

Saudi Arabia, among other countries.<br />

The Redstone Solar Thermal Power generates 100MW from<br />

its site near Postmasburg while the giant Khi Solar One tower<br />

impresses on the flight path into Upington Airport. Many other<br />

projects take advantage of the fact that the district has one of the<br />

best long-term annual direct normal irradiance<br />

(DNI) rates in the world. Upington has been<br />

measured at 2 816kWh/m².


9<br />

LOCAL MUNICIPALITIES<br />

The Green Kalahari offers remarkable contrasts<br />

The towns and villages of <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> have a<br />

special relationship to the Orange River which sustains growing<br />

agricultural and tourism sectors. All five of the cellars of Orange<br />

River Cellars are located within the municipality, with the company’s<br />

headquarters being in Upington.<br />

FIVE LOCAL MUNICIPALITIES FALL UNDER THE<br />

<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY:<br />

!KHEIS LOCAL MUNICIPALITY<br />

• Towns: Brandboom, Groblershoop<br />

Groblershoop is the gateway to the Green Kalahari and produces<br />

good wines. GWK Meat and KLK are active in the town.<br />

DAWID KRUIPER LOCAL MUNICIPALITY<br />

• Mier, Rietfontein, Upington<br />

The western edge of this large local municipality extends far north<br />

up the Namibian border and contains several small villages and<br />

the !Khomani San community along with the district’s biggest town,<br />

Upington, which serves as the hub for tourism, manufacturing,<br />

government and municipal activities and logistics. Many companies<br />

have their headquarters in Upington.<br />

KGATELOPELE LOCAL MUNICIPALITY<br />

• Danielskuil, Lime Acres<br />

The old blockhouse overlooking Danielskuil is well preserved and is a<br />

reminder of old conflicts. Lime Acres continues to live up to its name<br />

with good deposits of lime and the Finsch Diamond Mine is located<br />

near the town.<br />

TSANTSABANE LOCAL MUNICIPALITY<br />

• Beeshoek, Postmasburg<br />

At Witsand Nature Reserve, which is between Groblershopp and<br />

Postmasburg, the remarkable phenomenon of singing sand can<br />

be experienced as summer winds traverse the plateau. Evidence<br />

of mining by the Khoisan can be found at the archaeological site<br />

at Gatkoppies and the area continues to deliver iron ore in large<br />

quantities, primarily from the mines of Kumba Iron Ore (Kolomela)<br />

and Assmang, Khumani and Beeshoek.<br />

KAI !GARIB LOCAL MUNICIPALITY<br />

• Eksteenskuil, Kakamas, Keimoes, Kenhardt<br />

The old power station in Kakamas, modelled on an Egyptian temple,<br />

is now a tourist site but the pioneers who turned their hard work on<br />

irrigation projects into fertile fields for grapes, oranges and peaches<br />

that now define this area would be proud of the hydro-electric project<br />

that is using the run-of-river to generate 10MW for the national grid.<br />

The Tierberg Nature Reserve at Keimoes has impressive aloes and<br />

succulents and superb views over the Orange River. Kenhardt is near<br />

the Quiver Tree Forest and Verneukpan, made famous by Sir Malcolm<br />

Campbell, who tried to break the landspeed record there.


10<br />

WELCOME TO THE GREEN KALAHARI REGION<br />

A land of contrasts.<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong> is located in the Northern Cape<br />

Province of South Africa and features the Green Kalahari Tourism<br />

Region. Vast tracts of bleak, shimmering semi-desert contrast<br />

dramatically with lush green vineyards filling the Orange River’s<br />

fertile valleys. The region is further home to two meandering routes<br />

taking the visitor to the smaller hamlets and communities to explore<br />

and discover. Upington is the second-biggest town in the province<br />

and a former mission station. It offers a contrasting sight of lush<br />

emerald-green vineyards against the semi-desert reds of the<br />

Kalahari Desert. To see and do:<br />

• Upington 26 Monument: This monument in the township of<br />

Paballelo commemorates the role that the Upington 26 played<br />

in the fight against oppression and apartheid during the 1980’s.<br />

Tel +27 54 338 7019<br />

• Camel and donkey monuments: The monuments commemorate the<br />

crucial role these domestic animals played in the history of the region.<br />

• Date Palm Avenue: Found at the entrance to Die Eiland Resort it is one<br />

of the longest palm avenues in the southern hemisphere at 1.4km.<br />

• Kalahari Oranje Museum Complex: Originally built as a<br />

church and mission station, it now houses the museum.<br />

Contact: 082 336 2785<br />

• Sakkie se Arkie Sunset Cruise: Watch as the setting sun turns the<br />

mighty Orange river into molten gold. Contact: 082 564 5447<br />

Augrabies and Marchand are two of the smaller towns of the region<br />

situated on the banks of the Orange River and surrounded by lush<br />

green vineyards. To see and do:<br />

• The Augrabies National Park named by the Khoi people<br />

“Aukoerebis” is the place of great noise. It is home to the<br />

Augrabies Falls, the world’s sixth-largest waterfall which thunders<br />

down the 18km abyss of the Orange River Gorge.<br />

Groblershoop, founded in 1936 is the farming and administrative<br />

centre of the Orange River Valley, east of Upington. To see and do:<br />

• Boegoeberg Holiday Resort: Offers luxury self-catering chalets,<br />

hiking, fishing, canoeing, skiing and sailing. Contact: 083 257 4730<br />

• Witsand Game Reserve: Experience the roaring sands of the<br />

Kalahari, game drives, sand surfing and incredible birdwatching.<br />

Contact: 083 656 2117<br />

Kakamas and Keimoes are quaint towns in the fertile valley in the<br />

Lower Orange River and are famous for their table grapes which are<br />

exported worldwide. To see and do:<br />

• Die Pienk Padstal, pictured, right: Foodies can enjoy typical<br />

Northern Cape farm produce crafts and light refreshments at this<br />

memorable local spot. Contact: 083 381 9272<br />

• Akkerboom Padstal: Situated between Kakamas and<br />

Keimoes, this stylish padstal is set amid lush vineyards.<br />

Contact 082 534 7433.<br />

• Bakkiespomp is an old restored working waterwheel in the centre<br />

of Keimoes which pumps water from the Gariep River to farms in<br />

the area. Located on the main street.<br />

• Tierberg Nature Reserve: The 160-hectare Nature Reserve<br />

features abundant aloes and succulents and is home to enormous<br />

herds of springbok. Contact: 082 743 1736<br />

• World War 1 War Memorial: The battle of Kakamas took place in<br />

1915 and consisted of three skirmishes between German and<br />

Allied forces. A memorial marks the location of the battle.<br />

Riemvasmaak is north-west of the little town of Kakamas and<br />

bordering the Augrabies National Park is the Riemvasmaak Community<br />

Conservancy, 75 000ha of land between the flowing Orange and dry<br />

Molopo rivers. Pronounced “reem fuss mark”, meaning “tighten the<br />

strap”, the conservancy is the very first land restitution story. In the<br />

1960s there was a forced removal of the residents of this beautiful<br />

mountain desert wilderness, mostly Damara and Koranna Khoi tribes,<br />

by the then apartheid government. After 1994 the current government<br />

chose to return this land to the children of the original residents.<br />

Contact Riemvasmaak Tourism: 064 044 0096. To see and do:<br />

• Adventure: There are challenging 4×4 trails, several hiking<br />

trails, impressive rock climbing and abseiling (bring your own<br />

equipment though).<br />

• Birdwatching: The black eagle breeds here, the fish eagle is often<br />

sighted and the while pale-winged starlings are prolific.<br />

• Natural Beauty: Riemvasmaak is 75 000ha of mountain-desert<br />

wilderness with imposing mountains, extensive desert plains and<br />

a wilderness born from violent volcanic activity millions of years<br />

ago, but it is a land of beauty that takes on spiritual proportion. It<br />

features indigenous camel thorn and shepherd’s trees and wildlife<br />

that includes creatures from hyraxes (also known as dassies) to<br />

antelope and baboon.<br />

• Riemvasmaak Hot Springs invites visitors to relax in the natural<br />

wonder of these therapeutic waters.<br />

Quiver Tree Route. See more details on next page. To see and do:<br />

• Riemvasmaak hot springs and hikes. Contact: 078 314 5565<br />

• Adventure experiences such as river rafting, fly fishing, kayaking,<br />

river cruises, hiking and excellent bird watching at Khamkirri.<br />

Contact: 084 244 4408<br />

• Excellent wine cellars along the route: Bezalel Wine and<br />

Brandy Tasting (Contact: 083 257 4736); Die Mas Wine<br />

Tasting (Contact: 071 015 7131); Orange River Wine Tasting<br />

(Tel: +27 54 495 0040); Vineyard Safari and Sundowner Tour<br />

(Contact: 082 743 1736)


11<br />

Kalahari Red Dune Route. See more details on next<br />

page. To see and do:<br />

• Khomani San (Bushmen) Experience: rediscover the wisdom,<br />

customs and folklore of this ancient tribe with Vinkies Tours.<br />

Contact: 072 977 0120<br />

• Diamond T Coffee shop: Great local fare and home-baked<br />

delicacies, locally created arts and crafts. Tel: +27 54 511 0025<br />

• Aunt Koera’s Farm Kitchen on the R360 between Askham and<br />

Andriesvale for traditional cuisine. Contact: 083 588 8346<br />

• Kalahari Info and Tented Camp: They offer 4x4 dune experiences<br />

including sunset tours and dinners, accommodation and great<br />

local cuisine. Contact: 063 048 0706<br />

• Rooiduin Guest Farm offers sand boarding, a 4x4 Route, camping,<br />

hiking and bird-watching. Contact: +27 63 846 1307<br />

• Meerkat Encounters: Kalahari Trails provides a sanctuary<br />

to many orphaned and injured meerkats and offers<br />

morning and evening walking tours and guided drives.<br />

Tel: +27 54 511 0900<br />

• Kgalagadi Transfrontier Park: Encounter magnificent herds of<br />

oryx and the mighty Kalahari lion. The largest conservation<br />

area within Africa, it is also home to a dark skies sanctuary<br />

and home to the Khomani Cultural Landscape Heritage Site.<br />

Contact: +27 54 452 9200<br />

Contact Details:<br />

Northern Cape Tourism Authority<br />

Email marketing@experiencenortherncape.com<br />

David Kruiper Tourism Office: +27 54 338 7019<br />

Augrabies Falls National Park: +27 54 452 9200<br />

Kgalagadi Transfrontier Park: +27 54 561 2000<br />

Kalahari Red Dune Route: 082 785 1600<br />

Quiver Tree Route: 082 555 85 22


12<br />

TOURISM<br />

QUIVER TREE ROUTE<br />

Named after the indigenous quiver tree, the Quiver Tree Route stretches along<br />

the mighty Orange River and incorporates the spectacular Augrabies Falls.<br />

The Quiver Tree Route features the district’s biggest urban<br />

settlement, Upington, the quaint towns of Kakamas, Keimoes,<br />

Augrabies, Marchand, Kanoneiland, Kenhardt and Riemvasmaak and<br />

introduces the concept of the Green Kalahari. The route will appeal<br />

greatly to families, adventure and adrenaline seekers. Experience<br />

the hot springs at Riemvasmaak, river-rafting, fly-fishing, kayaking,<br />

river cruises, 4x4, hiking and MTB trails and excellent bird-watching.<br />

With the longest wine-producing area in the southern hemisphere<br />

there are many opportunities for world-class wine and brandy<br />

tasting along the route.<br />

DON’T MISS:<br />

• A visit to the Augrabies National Park and the world’s sixth-largest<br />

waterfall.<br />

• A 700-tree Quiver Tree Forest which is south of Kenhardt on the<br />

R27 road.<br />

NATURAL SPLENDOUR<br />

An easy amble from the main camp in the Augrabies Falls National<br />

Park will take you to where the Gariep or Orange River thunders<br />

nearly 60m into the gorge below. Wooden decks offer excellent<br />

vantage points from which to take in the spectacular view.<br />

ADVENTURE AND ADRENALINE<br />

A number of adventure operators offer white-water kayaking<br />

and rafting trips on the Gariep/Orange River – from full-day<br />

to multi-day trips. If you prefer to stay on terra firma, saddle<br />

up and go on a 30km bike ride in the Augrabies Falls<br />

National Park, pedalling past Moon Rock, Ararat and<br />

Echo Corner. Many hiking and MTB trails can<br />

be found and regular races are held.<br />

CULTURE AND LEISURE<br />

Riemvasmaak is located north-west of Augrabies, within a mountain<br />

desert landscape shaped by volcanic activity millions of<br />

years ago. Visit the residents and experience their traditional<br />

dancing and food, or laze in the hidden mineral spring in the<br />

gorge. There are also 4×4 and mountain-biking routes, covering<br />

a total distance of almost 160km.<br />

WINE AND GRAPES<br />

Orange River Wine Cellars is said to be the biggest wine co-operative<br />

in the southern hemisphere, and no trip to the Green Kalahari<br />

would be complete without a tasting along this wine route. Also pop<br />

in at Bezalel and Die Mas cellars.<br />

HIGHLIGHTS<br />

Augrabies Falls<br />

Called Aukoerebis (place of great noise) by the Khoisan people,<br />

the 56-metre-high Augrabies Waterfall is a spectacle in this<br />

region. When the mighty Orange River is in full flood, the sound<br />

of water thundering down the rockface is deafening. It’s an<br />

awesome experience at any time of year. Besides the falls, there<br />

are great sites to visit here, including Moon Rock, Ararat and<br />

Echo Corner. A diversity of species also exists at the Augrabies<br />

Falls National Park and its spectacular granite gorge offers<br />

visitors great birding, some small game, reptiles, springbok,<br />

gemsbok and giraffe.<br />

Riemvasmaak Hot Springs<br />

The Riemvasmaak Hot Springs are one of the many natural<br />

wonders along the Quiver Tree Route. Located between the<br />

Orange and Molopo rivers in Riemvasmaak, the hot springs<br />

are surrounded by granite cliffs and offer spectacular views<br />

of the mountain desert and wilderness. The naturally warm<br />

spring waters and the rocky terrain are a result of volcanic<br />

eruptions that occurred aeons ago. The volcanoes are no<br />

longer active but the underground activity still heats the<br />

spring water, providing gloriously warm swimming pools all<br />

year round.<br />

Contact details:<br />

Northern Cape Tourism<br />

email marketing@experiencenortherncape.com<br />

David Kruiper Tourism Office: +27 54 338 7019<br />

Augrabies Falls National Park: +27 54 452 9200<br />

Quiver Tree Route: +27 (0)82 555 85 22


TOURISM<br />

KALAHARI RED DUNE ROUTE<br />

Golden dunes, wide-open skies and<br />

flat-topped acacia trees epitomise<br />

the Kalahari Red Dune Route.<br />

Enjoy dune hikes at dawn,<br />

eagle-owl encounters, sandduning<br />

and surfing in the red<br />

sand and close encounters<br />

with meerkats. Here you will<br />

experience red sand dunes<br />

and dry riverbeds, wide-open<br />

skies and flat-topped acacia<br />

trees. Explore the Khomani<br />

San Cultural Landscape and<br />

join a guided walk with the San<br />

Khomani to rediscover the wisdom,<br />

customs and folklore of this ancient tribe.<br />

Don’t miss: In the Kgalagadi Transfrontier Park, magnificent oryx<br />

hold sway and you can discover the mighty Kalahari male lion. The<br />

largest conservation area within Africa, it is also one of only 10<br />

Dark Skies sanctuaries in the world. Head north from Upington and<br />

the route unfolds in its splendour. The small town of Askam marks<br />

the point where you can turn left to Namibia or right to Hotazel,<br />

another town in the Northern Cape. Botswana lies due north. The<br />

mighty Kgalagadi Transfrontier Park, Africa’s first transfrontier park,<br />

comprises almost 3.7-million hectares of sparsely vegetated red<br />

sand dunes and dry riverbeds. It remains one of the world’s last<br />

truly unspoilt ecosystems. The park is the result of the unification<br />

of South Africa’s Kalahari Gemsbok Park and Botswana’s Gemsbok<br />

National Park. The reserve provides a sanctuary for herds of gemsbok,<br />

springbok, blue wildebeest, red hartebeest, eland, lion, leopard,<br />

cheetah and smaller game.<br />

There are also six upmarket unfenced wilderness camps that allow<br />

visitors to feel at one with the Kalahari. The Kalahari Tented Camp<br />

has 15 fully equipped self-catering units, sleeping two to four people,<br />

and a swimming pool. The camp overlooks a waterhole on the ancient<br />

Auob River. The Grootkolk Wilderness Camp is small and exclusive,<br />

only 20km from Union’s End (this is the area where the Nossob<br />

River crosses from Namibia into the Kgalagadi Transfrontier Park).<br />

THINGS TO DO<br />

Once you’re on the main road dust-lining<br />

towards the gates of the Kgalagadi<br />

Transfrontier Park, a whole world of<br />

gravel awaits. Comfortable lodges,<br />

rustic bush camps, traditional San<br />

villages and hospitable guest farms<br />

dot the arid wilderness. But, more than<br />

anything, you will be able to find peace and tranquillity here.<br />

Small towns are few and far between; look out for Ashkam,<br />

Hakskeenpan and the Mier community.<br />

NATURAL SPLENDOUR<br />

The Kgalagadi Transfrontier Park is undoubtedly the premier<br />

attraction here. Few things can beat the feeling of queuing at the<br />

gate for the morning game drive, with the first rays of the sun<br />

streaming over the eastern horizon. You might encounter martial<br />

eagles puffed out against the morning chill, wildebeest snorting<br />

plumes of vapour into the freezing air, or the deep bass rumble of<br />

a black-maned lion proclaiming its territory from a high dune. This<br />

is a place like no other.<br />

CULTURE AND LEISURE<br />

The Kalahari Red Dune Route brims with cultural activities offered<br />

by the ‡Khomani San people. Activities range from a stopover at<br />

the magnificent !Xaus Lodge to the ‡Khomani Cultural Landscape<br />

where you can learn to shoot a bow and arrow and how to make<br />

fire with no lighter.<br />

Contact details:<br />

Northern Cape Tourism<br />

email marketing@experiencenortherncape.com<br />

David Kruiper Tourism Office: +27 54 338 7019<br />

Kgalagadi Transfrontier Park: +27 54 561 2000<br />

Kalahari Red Dune Route: +27 (0)82 785 1600


14<br />

INVESTMENT OPPORTUNITY<br />

UPINGTON INDUSTRIAL PARK<br />

Multisector park offers superb infrastructure in key location.<br />

Upington Industrial Park is situated next to Upington International<br />

Airport and therefore offers the potential investor the luxury and<br />

efficiency of various modes of transport. Through the industrial park<br />

programme, investors can enjoy a number of benefits, ranging from a<br />

controlled access point to the incentivised provision of infrastructure<br />

and relaxed municipal tariffs. Upington Industrial Park forms part of<br />

the Northern Cape Industrial Corridor.<br />

KEY BENEFITS<br />

The project supports the ideals of the industrialised society and<br />

offers the following benefits to the keen investor:<br />

Infrastructure<br />

Security infrastructure upgrades, top structures, critical utility<br />

infrastructure and creation of new infrastructure.<br />

Compliance<br />

To all regulatory requirements will be ensured.<br />

Efficiency<br />

Relates to renewable energy requirements for powering operations<br />

within the park and to resource-efficient operations.<br />

Sustainable Clusters<br />

These will be developed as investment momentum builds.<br />

Capacity Building<br />

Harnessing the necessary skills required by the investor industry’s<br />

specific needs and training of SMMEs for future expansion. This<br />

aspect will also support localisation.<br />

Expansion and Marketing<br />

Business expansion and marketing expertise will be put behind<br />

enterprises within the park<br />

Supplier Effectiveness and Efficiency<br />

Ensuring improved local capacity, capability, footprint and service levels.<br />

Logistics<br />

Upington’s relationship with the SADC countries and the fact that<br />

several modes of transport come together in the town, make it an<br />

ideal logistics hub.<br />

<strong>Investment</strong> Security<br />

An investment in Upington will ensure a foothold into SADC and the<br />

rest of Africa, enabled with infrastructure, support services and<br />

several modes of transport.<br />

TARGETED SECTORS<br />

• Agroprocessing<br />

The <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> in which Upington is situated is well known


15<br />

Left: Solar energy is creating work for engineering firms and powering Upington firms such as Orange River Cellars. Right: Upington<br />

International Airport supports the logistics sector and GWK already packages pecan nuts in the area.<br />

for producing export-quality grapes, citrus, dried fruit such as<br />

raisins and other fruits. Given some of the most extreme weather<br />

conditions to be found anywhere in Sub-Saharan Africa, this sector is<br />

ready for investors who want to take advantage of the best grapes<br />

and dates in the world. An established market in Europe and other<br />

parts around the globe has already been established and interested<br />

investors are assured of the best products that will realise a speedy<br />

return on their investments.<br />

• Renewable energy<br />

Components manufacturing. The majority of solar investors in<br />

South Africa’s Renewable Energy Independent Power Producer<br />

Procurement Programme (REIPPPP) are located in the Northern<br />

Cape. There is an increasing demand for photovoltaic (PV) and<br />

concentrated solar power (CSP).<br />

• Aircraft maintenance, repair and overhauling (MRO)<br />

See separate section in this <strong>Prospectus</strong>.<br />

• Automotive manufacturing<br />

Vehicle testing and long-term evaluation. Vehicle manufacturers<br />

are attracted to high temperatures, rough tracks and good<br />

roads. Upington International Airport specialises in providing a<br />

service to charter flights for the automotive industry. With the<br />

four biggest original equipment manufacturers (OEMs) testing<br />

their exploits every year in Upington for four months, it makes<br />

for a sound business proposition to invest in the Park and take<br />

opportunities in the automotive sector. Automotive testing is<br />

a common phenomenon in Upington with patrons extensively<br />

utilising Upington International Airport to charter cargo to<br />

Upington for car testing and for spare parts. Attracted by<br />

extremely hot temperature conditions, rough tracks and decent<br />

road conditions, OEMs test their cars extensively.<br />

Space Available<br />

Bespoke space that will cater for various storage requirements will<br />

be available within the generous amount of lettable space within the<br />

UIP. This is in a secure, well-maintained and symbiotic environment<br />

for industrial businesses.<br />

Project Update<br />

The project has transitioned from the procurement phase and<br />

in terms of the Framework for Infrastructure Delivery and<br />

Procurement Management and project management cycle into<br />

works with the site handed over in terms of the ensuing construction<br />

phase. Local labour absorption and SMMEs empowerment needs<br />

to be provided through work packages that will enable overarching<br />

participation. The contract is envisaged to conclude in December<br />

2023 and the initiation of the Phase 2 submission will follow in Q4<br />

of the 2023/24 financial year.


16<br />

INVESTMENT OPPORTUNITY<br />

UPINGTON INTERNATIONAL AIRPORT<br />

There is an opportunity for Airports Company South Africa (ACSA)<br />

to develop an Aviation Park at Upington International Airport.<br />

PROJECT LOCATION: UPINGTON<br />

<strong>District</strong>: <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong> <strong>Municipality</strong><br />

PROJECT BACKGROUND<br />

The development can accommodate aircraft maintenance, repair<br />

and overhauling (MRO) facilities as well as services such as aircraft<br />

storage, end-of-lease refurbishment or scrapping, parts distribution<br />

and cargo development.<br />

The climate and space for aircraft storage, the viability for green<br />

(solar) energy and a greenfield site to construct a state-of-the-art<br />

facility make Upington International Airport a favourable location for<br />

an MRO facility.<br />

TARGETED SECTORS<br />

• Infrastructure<br />

• Real estate<br />

• Construction<br />

• Renewable energy<br />

DESCRIPTION OF THE PROJECT<br />

Upington International Airport’s 4.9km runway allows it to land<br />

the largest aircraft. Airports Company South Africa is a partner<br />

in the application to run the Upington Industrial Park (UIP)<br />

and has allocated 55ha for the creation of an Aviation Park to<br />

store and maintain aircraft and a further 30ha for commercial<br />

development. The planned storage facility could also support a<br />

variety of related sectors such as modification and demolition,<br />

parts manufacturing and warehousing and ground support<br />

equipment (GSE) repair.<br />

PROJECT ELEMENTS<br />

• Parking and storage of aircraft: includes the parking and stripping of<br />

aircraft and the recycling of spare parts for maintenance purposes<br />

• Cargo hub: increase of cargo facility for important export purposes<br />

including truck stop<br />

• Car rental facilities: providing improved facilities for car rental companies<br />

• Electronics hub<br />

• Solar farm project


17<br />

PROJECT FINANCE<br />

• Public Private Partnership<br />

• Equity Partners/Investors<br />

• Property Developers<br />

PROJECT STATUS<br />

A feasibility study was concluded which indicated that the projects<br />

present a viable business opportunity for ACSA and the local<br />

community. The study indicated that the development could be<br />

very lucrative.<br />

GOVERNMENT SUPPORT, INCENTIVES AND PARTNERSHIPS<br />

• ACSA<br />

• Industrial Development Corporation (IDC)<br />

CONTACT DETAILS<br />

ACSA |Mr Riaaz Essack: Acting Group Manager: Infrastructure & Asset<br />

Management<br />

Mr Mark Maclean: Regional General Manager Cluster


INVESTMENT OPPORTUNITY<br />

!XAUS LODGE EXPANSION<br />

PROJECT LOCATION<br />

!Xaus Lodge is located in the South African sector of<br />

the Kgalagadi Transfrontier Park (KTP) and access<br />

is via the Auob River road that connects Tweerivieren<br />

with Mata Mata. The lodge is situated 30km into the<br />

desert, reached after driving over 91 sand dunes<br />

from the turn-off at Rooibrak waterhole, 60 km<br />

northwest of Tweerivieren. GPS co-ordinates for a<br />

Google search are: S26°09.005’ E20°15.392’.<br />

PROJECT BACKGROUND<br />

!Xaus Lodge opened in July 2007. With only 24 beds,<br />

!Xaus Lodge has generated more than R7.5-million in<br />

income for the Gordonia area. Owned by the ‡Khomani<br />

San and Mier communities and hailed by tourism<br />

authorities as a flagship destination, the economic<br />

value of !Xaus Lodge lies in the ethical business<br />

principles that generate a steady and growing income<br />

for the community owners and the area. Winner of the<br />

2010 Imvelo Awards for Responsible Tourism (Best<br />

Practice Economic Impact).<br />

DESCRIPTION OF PROJECT<br />

The intention is to add two new wilderness camps<br />

and to refurbish and expand the lodge.<br />

TARGETED SECTORS<br />

Ecotourism<br />

PROJECT FINANCE<br />

Public-private-partnership (PPP)<br />

INVESTMENT VALUE<br />

$870 000<br />

PROMOTER<br />

Transfrontier Parks Destinations (TFPD) is a<br />

consortium of like-minded associates who are<br />

business-oriented social entrepreneurs. Working<br />

in Southern Africa’s Transfrontier Peace Parks<br />

and adjacent areas, TFPD aims to develop a<br />

viable and sustainable tourism industry that<br />

balances the needs of the local community<br />

with those of nature. The commitment is to the<br />

creation of a sustainable business model that<br />

becomes an asset for the local communities.<br />

Website: Transfrontier Parks Destinations:<br />

www.tfpd.co.za


19<br />

INVESTMENT OPPORTUNITY<br />

SUSPENSION BRIDGE AT AUGRABIES FALLS<br />

A bridge over the dramatic gorges and waterways of the<br />

Augrabies Falls National Park is proposed.<br />

PROJECT LOCATION<br />

Augrabies Falls National Park, Kai !Garib Local <strong>Municipality</strong><br />

PROJECT BACKGROUND<br />

SANParks policy of balancing commercialisation with its vital<br />

conservation function has evolved over the years. A SANParks<br />

document links the need to investigate partnerships with the<br />

private sector with the demands of democratic South Africa. The<br />

theme of “Connecting to Society” is something that SANParks has<br />

recently elevated and PPPs can be a method that allows for better<br />

connections to society. One of the articulated goals of SANParks is<br />

to achieve tourism that maximises the benefits to local communities,<br />

minimises negative social or environmental impacts and helps local<br />

people conserve fragile cultures, habitats and species.<br />

TARGETED SECTORS<br />

• Tourism<br />

• Ecotourism<br />

• Conservation<br />

• Local economic development<br />

FACILITIES<br />

The park already offers a variety of accommodation options (camp<br />

sites, chalets and family cottages) and it is a very popular destination<br />

for anyone venturing along the Orange River. Spectacular sunsets<br />

are very much part of the visitor experience and an array of<br />

lights is switched on at 8pm. Night drives can be arranged. The<br />

Quiver Tree Shop and Restaurant serves the needs of visitors and<br />

campers and there are three swimming pools. Several hikes are<br />

available and mountain bikes can be used in the park.<br />

HOT FAUNA<br />

The typically hot weather means that many animals shelter during the<br />

day, making game-viewing a night-time activity at Augrabies. Giraffes<br />

and antelope in the park like to move about after dark as do several<br />

hunters such as the African wild cat, bat-eared fox, free-tailed bat,<br />

aardwolf and the small spotted genet. Leopards are present, but<br />

a sighting by day or night is rare. Some animals have adapted to<br />

survive extreme high and low temperatures. The yellow mongoose,<br />

the slender mongoose and the rock dassie are among the smaller<br />

animals that make use of every bit of shade available as well as<br />

burrows and rock crevices.<br />

DESCRIPTION OF THE PROJECT<br />

A suspension bridge will create an even more dramatic experience for<br />

visitors if they are able to cross from one side of the ravine to the<br />

other via a suspension bridge.<br />

FUNDING MODEL<br />

South African National Parks (SANParks) runs the park and is<br />

interested in working with private investors to create such a facility. A<br />

public-private-partnership (PPP) is envisaged.


20<br />

BUSINESS AND INVESTMENT<br />

PLENTIFUL ASSETS AND<br />

RESOURCEFUL BUSINESSES<br />

Large and established businesses make good use of good land and minerals.<br />

Solar projects have been responsible for some of the biggest<br />

injections of foreign and domestic capital into the <strong>ZF</strong> <strong>Mgcawu</strong> <strong>District</strong><br />

<strong>Municipality</strong> in recent years, but existing businesses have built up an<br />

impressive track record over many decades within the region. These<br />

enterprises have used the plentiful natural resources of the area to<br />

build sustainable and profitable business. Examples include:<br />

AGRICULTURE<br />

Having started life as a co-operative in 1942, KLK is now a<br />

multifacted agricultural company that trades in agricultural goods,<br />

building materials, fuels, meat, hides and skins, as well as the<br />

packaging and export of raisins. Karakul sheep farming is still<br />

carried out but Dorper sheep farming now predominates among<br />

farmers in the region. KLK has abattoirs, conducts auctions, runs<br />

petrol stations and has a finance division. Dorper skins are prepared<br />

for the Italian fashion market and hides are processed for the motor<br />

vehicle industry. In May 2023 KLK acquired the last 20% share in<br />

Carpe Diem Raisins and it now owns an 100% share. Agricultural<br />

company Senwes is the majority shareholder of KLK.<br />

MINING<br />

Iron-ore mining in the eastern parts of the district<br />

municipality makes a major contribution to<br />

the economy of the region. Everything<br />

about the Kolomela mine near Postmasburg<br />

is large. Previously<br />

known as Sishen South, the mine<br />

produced 10.8-million tons in<br />

2022. Together with its other<br />

mines, Kumba Iron Ore is the largest iron-ore producer in Africa.<br />

Kumba Iron Ore owns 76.3% in Sishen Iron Ore Company (SIOC) with<br />

the balance held by Exxaro and the SIOC Community Development<br />

Trust. Through the SIOC, Kumba Iron Ore owns three mines, one<br />

of which, Sishen, is also in the Northern Cape. The Sishen/Kolomela-Saldanha<br />

iron ore export channel sees to it that vast amounts of<br />

iron ore are exported through the latter port. Trains weighing 34<br />

200 tons leave the mines every nine hours, each train having five to<br />

six locomotives and 342 wagons.<br />

WINE<br />

Close on 600 Orange River farmers send their grapes to Orange<br />

River Cellars which is headquartered in Upington. The company has<br />

five cellars, the best-named of which is at Grootdrink. The variety of<br />

soil from which ORC wines is drawn is extremely varied, allowing for<br />

the production of a wide selection of wines and brandies. In 2018<br />

an ORC Red Muscadel won a place in the Top 10 Wines of the World<br />

at the annual Muscats du Monde, held in France. The company<br />

has expanded significantly over the years and now encompasses<br />

logistics to deliver its wines (Orange River Tankers), an export<br />

division (Norweco) and Prosperitas Farm which produces<br />

export-quality raisins that include sultanas and<br />

several varieties of raisins. A solar system<br />

has been introduced at the company’s<br />

bottling plant.


NATIONAL INCENTIVE SCHEMES<br />

The national Development of Trade, Industry and Competition (the dtic), in collaboration with<br />

other public and private sector entities, has developed a number incentives schemes to assist<br />

with the growth of certain sectors. These national incentives schemes are listed below.<br />

PROGRAMME<br />

• Technology and Human<br />

Resources for Industry<br />

Programme (THRIP)<br />

• Support Programme for<br />

Industrial Innovation (SPII)<br />

• Global Business Services (GBS)<br />

Incentive<br />

• Film and TV Production<br />

• Export Marketing <strong>Investment</strong><br />

Assistance (EMIA)<br />

• Sector Specific Assistance<br />

Scheme (SSAS)<br />

• Capital Projects Feasibility<br />

Programme (CPFP)<br />

INNOVATION CLUSTER<br />

INCENTIVES<br />

• A 50% to 90% cost-sharing<br />

grant to maximum R8-million<br />

per annum for three years for<br />

approved project engaged<br />

in applied research and<br />

development in science,<br />

engineering and technology.<br />

• Matching scheme that provides<br />

financial assistance in the<br />

form of a non-taxable grant<br />

for qualifying costs incurred in<br />

development activity associated<br />

with a specific project to a<br />

maximum of R5-million.<br />

SERVICES INVESTMENT CLUSTER<br />

EXPORT CLUSTER<br />

• Reimbursable cost-sharing grant<br />

of 30% to 50%, maximum of<br />

R20-million for qualifying costs.<br />

Score based on economic benefit<br />

criteria.<br />

• For productions with various QSAPE<br />

amounts, various percentage and<br />

calendar days requirements may<br />

be waived and such discretion will<br />

take into account the budgetary<br />

implications of the decision made.<br />

• Return airfares, subsistence<br />

allowances, the cost of sample<br />

transportation and various other<br />

costs may be covered in respect<br />

of costs related to marketing,<br />

missions and trade fairs.<br />

• Project Funding. A reimbursable<br />

80:20 cost-sharing grant<br />

scheme.<br />

• Emerging Exporters. 100%<br />

of the cost to a maximum of<br />

R1.9-million per project.<br />

• Reimbursable contribution up to<br />

a maximum of R8-million.<br />

PROGRAMME<br />

• Black<br />

Industrialists<br />

Scheme (BIS)<br />

• Aquaculture<br />

Development and<br />

Enhancement<br />

Programme<br />

(ADEP)<br />

• Strategic<br />

Partnerships<br />

Programme<br />

(SPP)<br />

• Agro-Processing<br />

Support Scheme<br />

(APSS)<br />

• Automotive<br />

<strong>Investment</strong><br />

Scheme (AIS)<br />

MANUFACTURING INVESTMENT CLUSTER<br />

• Special Economic<br />

Zone Fund (SEZ)<br />

• Critical<br />

Infrastructure<br />

Programme (CIP)<br />

INCENTIVES<br />

• A 30% to 50% cost-sharing grant of up to<br />

R50-million. Offers support on a cost-sharing<br />

basis towards capital investment costs,<br />

feasibility studies, post-investment support<br />

and business development services (to the<br />

maximum of R2-million).<br />

• Reimbursable cost-sharing grant of 30% to<br />

50%, maximum of R20-million.<br />

• A maximum of R15-million per financial year on<br />

a 50:50 basis.<br />

• Reimbursable cost-sharing grant of 20% to<br />

30% to a maximum of R20-million.<br />

Non-taxable cash grant of<br />

• 20% of the value for light motor vehicle<br />

manufactures and<br />

• 25% of the value of qualifying investment<br />

in component manufactures and tooling<br />

companies.<br />

INFRASTRUCTURE INVESTMENT CLUSTER<br />

• Preferential taxes (including 12i Tax Allowance)<br />

• Bulk infrastructure (electrical sub-stations,<br />

water storage, sewerage treatment and<br />

pumping, etc)<br />

• Top structures<br />

• Business development (pre-feasibility studies<br />

and feasibility studies, technology testing and<br />

training, EIA and general research linked to<br />

planned investment and clusters)<br />

Registered private entities and local governments<br />

(municipalities, excluding metropolitan<br />

municipalities).Types of supported projects,<br />

capped at R50-million:<br />

• strategic infrastructure feasibility studies<br />

• generic investment<br />

• South African film and TV studios and cinemas<br />

• state-owned testing facilities<br />

• state-owned industrial parks<br />

• distressed municipalities or investors in such<br />

municipalities


22<br />

<strong>ZF</strong> MGCAWU DISTRICT MUNICIPALITY<br />

Contact Details<br />

Address: Cnr Nelson Mandela Avenue and<br />

26 Upington Road, Upington<br />

Director Planning and Development:<br />

Mr I De Waal: 078 548 5287<br />

Assistant Director:<br />

Mr B Van Kratenburg: 072 189 3476<br />

Unit Manager LED and Tourism<br />

Mr TT Louw: 081 800 3982<br />

Website: www.zfm-dm.gov.za

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