Northern Cape Business 2018-19 edition

SPECIAL FEATURE

SPECIAL FEATURE Investment opportunities Nine-point plan aims to attract investors to the Northern Cape. An economic colloquium will be held in the Northern Cape. This will serve as a preparation for a much larger investment conference. Northern Cape Premier Sylvia Lucas says, “The idea is to aggressively promote our mega projects for attraction of credible investment.” A nine-point project plan is in place, which includes promoting to investors: • a Special Economic Zone (SEZ) • development of a port at Boegoebaai • Square Kilometre Array radio telescope • Agri-parks for every district. This is over and above the massive renewable energy programme (wind and solar) which is covered in a separate article in this publication. In her 2018 State of the Province Address, Premier Lucas said, “Transforming the economy of the Northern Cape will entail the calculated mobilisation of all social partners, in particular the three spheres of government, as well as labour and business behind an economic growth plan.” Infrastructure Work has started on a framework for future growth and development in the Northern Cape. The Provincial Growth and Development Plan (PGPD) Vision 2040 will outline the intended growth path for the province. Towards this goal, the province intends for decisions about land use to be located within the Office of the Premier, instead of with municipalities. A Provincial Infrastructure Strategy is to be developed after an audit has been conducted on the province’s infrastructure. The aim is to implement the Infrastructure Development Act. Two large bulk water supply projects are underway. These will not only mitigate drought conditions where they occur but promote new businesses and provide greater security for communities in affected areas. Manufacturing clusters The Department of Economic Development and Tourism (DEDAT) intends using clusters to promote economic growth with a focus on mineral beneficiation, agri-processing, and energy and technology. The rooibos tea processing plant supported by the Provincial Government of the Northern Cape. Within these clusters, investors will find good infrastructure and other businesses in the same sector with whom they can trade. Three manufacturing clusters are planned for the Northern Cape: Metal manufacturing: John Taolo Gaetsewe District Municipality. The mining sector is strongly represented in this area. Main towns: Kuruman, Kathu, Hotazel. Clothing manufacturing: Frances Baard District Municipality. Main towns: Kimberley, Jan Kempdorp, Warrenton. The existing diamond beneficiation projects that exist in Kimberley were recently boosted by the signing of Memorandums of Understanding with Turkey and India for diamond cutting and polishing as well as jewellery manufacturing at the NORTHERN CAPE BUSINESS 2018/19 18

SPECIAL FEATURE Kimberley International Diamond and Jewellery Academy (KIDJA). Agri-processing: ZF Mgcawu District Municipality. Wine, grapes and raisins, animal hides and abattoirs are among the existing processing operations already in existence along the Orange River. Main towns: Groblershoop, Kakamas, Upington. Dates, olives, citrus and rooibos tea are sectors with great growth potential. Plans include downstream manufacturing in items such as fibre sacks and cardboard cartons for packaging. Some of the existing areas of manufacturing could also increase volumes with the right kind of support. The Northern Cape already boasts a geographically diverse allocation of manufacturing facilities. Rooibos tea is made in Niewoudtville in the far south-west of the province and Upington is a hub for meat, skins and pelts, alongside grapes and raisins. Raisins and sultanas in very large numbers are produced at Safari’s plant at Upington. The Gordonia Mill and several meat processing plants are also in Upington. Further down the Orange River, at Kanoneiland, the Karsten Group is headquarted on the farm Roepersfontein from where it oversees a large operation encompassing livestock, apples, grapes and dates. Southwards toward Kakamas lies Keimos, a centre for raisins, dried fruit and nuts produced by the Red Sun company. (South Africa produces about 40 000 tons of raisins every year.) There are six major processors along the river, receiving raisins from about 250 farmers. In the north, the irrigated Vaalharts district covers 38 000ha and is home to a variety of food producers and processors. One example, Olives South Africa at Hartswater has 200 000 trees and produces a variety of oils for the local and foreign market. In the far east of the province, OVK oversees the Gariep Organic Meat Processors in Hopetown. The capital city of the province, Kimberley, has several food processing facilities that cater to the urban population. TOURISM INVESTMENT OPPORTUNITIES General opportunities for investors in the tourism sector include: • nature and game reserves • adventure tourism • upgrading of accommodation facilities • new attractions and entertainment features (theme parks) • improve air transport networks. The Northern Cape Department of Economic Development and Tourism (DEDAT) has prepared specific tourism investment packages and is looking for partners to take these opportunities to completion. Adventure sports at Kimberley: The possible establishment of an adventure sports resort in the Big Hole Precinct, Kimberley. Steam train: Reviving steam train tourism (“Gems on Track” is the working title) could be done along a variety of routes including routes out of Kimberley to Belmont and from De Aar to Victoria West. Eco-resort at Boesmansput: Development of a diver training facility would form part of the plan at this popular fresh-water cave diving site. An eco-lodge is envisaged and a conference facility. Wildebeest Rock Art Centre: More than 400 pieces of rock art would form the cornerstone (together with the nearby Nooitgedacht Glacial Paving) of a world-class heritage and archaeological site. Developments would include the creation of a performance arena (for the depiction of San Bushman culture) and facilities for game viewing and photographic safaris. 19 NORTHERN CAPE BUSINESS 2018/19