PRESENTATION: VTSD ECONOMIC FORUM...PRESENTATION: VTSD ECONOMIC FORUM Investment Opportunities in...

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PRESENTATION: VTSD ECONOMIC FORUM

Investment Opportunities in the

VTSD Areas 29 November 2017

By Mr Tshepo Phetla CEO of the NWDC


Socio-Economic Profile of Bokone Bophirima

• The NW region covers approximately 105 076 square kilometres, comprising 8.6% of the national area. The province is not densely populated when compared to the national population density and houses approximately 7% of the country’s total population.

• The NW shows improvement in most of the developmental indicators (2009

used as baseline). Most notable is the improvement in the Human Development Index (HDI) currently at 0.60 up 0.52 in 2009.

• Similar improvements are seen in both the number and percentage of people

living in poverty below the upper poverty line (StatsSA defined), currently measured at 52.8% (59.1% in 2009) respectively.

• Improvements in all measures relating to schooling and education are also

reported with the number of people with matric increasing from 388,000 in 2005 to 596,000 in 2015.


Economic Profile and Industry Overview

• The North West Province economy is dominated by mining, at 30% of the provincial economy, followed by manufacturing at 5%, agriculture at 2%, and construction at 2%.

• The Provinces contribution to the national production is 26% in mining and

7% in agriculture, but only 3% of manufacturing and 4% of construction.


Economic Profile and Industry Overview

This graph indicates the 9 main sector contributions to the economy of the North West as compared to South Africa.

Agriculture MiningManufactur

ingElectricity

Construction

Trade Transport FinanceCommunity

services

SA 2,4% 7,9% 13,4% 3,7% 4,0% 15,2% 10,1% 20,2% 23,1%

NW 2,7% 32,9% 5,5% 3,4% 2,6% 12,1% 6,6% 13,2% 21,1%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

Se

cto

r's s

ha

re o

f re

gio

na

l to

tal

%

Gross Value Added by Region (GVA-R), Broad Economic Sectors (9 sectors), Sector's share of

regional total (%) (2016)

(Source: IHS Global Insight: Regional eXplorer 1070 (2.5y)

2016 figures)


Provincial Priorities

Key Economic Pillars

•Agriculture

•Culture

•Tourism

•Mining as a tributary to ACT

Key Focus Areas

•Development of Villages

•Development of Townships

•Development of Small Dorpies

•Youth Cooperatives and small enterprise development

Other Important Focus Areas

•Mining & Mineral Beneficiation

•Renewable Energy

•Retail & Wholesale

•ICT

•Economic Infrastructure Development

Rebranding, Repositioning and Renewing Villages, Townships and Small Dorpies’ Economies


Why Invest in the North West Province

• Bordering Botswana, the NWP is ideally positioned to access the 14 countries comprising the Southern African Development Community and the development of the proposed Trans-Kalahari corridor will enhance NWP access to the west African market.

• The NWPs well developed road and rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa.

• The SADC Foreign Trade Agreement (FTA) signed in August 2008 provides

access to a market of over 250 million consumers


Why Invest in the North West Province

• 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 agriculture commercial ventures

• NWP plays a significant role in the supply of energy, transport and communications to the continent.

• NWP is well positioned to a shared services hub for investors interested in’ African operations, especially for Sub-Saharan countries.


The North West Development Corporation (SOC) Ltd

• The North West Development Corporation (SOC) Limited is a company

wholly owned by North West Provincial Government. • In terms of the NWDC Act, it can performs the following economic

functions: Planning, Financing, Coordinating, Promoting and carrying out the Economic Development of the Province and its people in the fields of Industry, Commerce, Finance, Mining; Property and other business, resulting in wealth and job creation.

• As part of its mandate NWDC assists SMMEs and Cooperatives in their

development and promotion by identifying opportunities, providing financial and non-financial support, business premises, trade and investment opportunities and by creating a feasible environment for investment.


North West Investment Opportunities

The North West Province is open for business! • Ample investment opportunities with possibilities of joint ventures and

Private Public Partnerships (PPPs). • Property Sector

• Opportunities in major property development Government Precinct)

• Agriculture & Agro-processing • Culture & Tourism • Construction & Infrastructure Development • Mining and Mineral Beneficiation • ICT


Industrial Parks

• The North West Provincial Government has prioritised economic development

in the Villages, Townships and Small Dorpies – to turn around the age old phenomenon of people migrating to urban centers to look for employment and to bring development were people are.

• We intend harness each region’s economic opportunities and where possible

industrialise the areas.

• We will focus on implementing the Special Economic Zone, industrial parks

and regional economic centers.


Platinum Valley SEZ

Key anchor project to catalyze industrialization in Bojanala

Development of industrial infrastructure and anchor provincial participation mining sector

Cluster/Sector focus areas:

1. Mineral PGM Beneficiation – jewelry and energy products

2. Mining Capital Equipment Manufacturing – to increase mines procurement spend in the province

3. Agro-Processing – grow industrial crops and process into finished products in the zone

4. Renewable Energy – manufacturing of energy storage products


Artist impression of the SEZ

PLATINUM VALLEY SEZ


Industrial Parks

Mafikeng Airport Logistics Hub: • The province will use the lessons learned from the SEZ to re-suscitate the

Mafikeng IDZ which seeks to use the Mafikeng International Airport as an asset to implement an Industrial Zone including a logistics hub and other related industries.

• The province has invested above R100 million on critical infrastructure to

date. Interested investors are invited to come and put top structures on the

earmarked land area.


Industrial Parks

VTSD Industrial Hubs: • To diversity industrial development away from major centers, the province

will implement Industrial Hubs to consolidate economic development taking advantage of opportunities found in each region.

• The hub earmarked for Dr Ruth Segomotsi Mompati District will be anchored

on an Agro-processing cluster including beef processing and using the cluster to expand on meat products e.g. donkey meat for export to international markets.


Key Pillars for Industrialization

Logistic Infrastructure

Utilize the existing infrastructure: industrial parks, storage silos, rail, roads and airport to drive industrialization; linkages to previously excluded communities;

Identify new catalytic infrastructure to be built, register plan with President Infrastructure Coordinating Council for national support;

Review and Develop Infrastructure Master Plan


VTSD Investment Opportunities

SOPA Projects • Government Precinct • Integrated Security Services • Country Bird Holdings

Mining Procurement and Manufacturing • VTSD Mining • Diamond Beneficiation Factory • Partnerships with SMMEs in Mining

Retail Infrastructure • Bakeries • VTSD Retail/Industrial Hubs • Tuckshop Economy



Manufacturing • Alternative Building Material • Printing house / Stationery • Shoe making • Hair products • Garden Furniture • Upholstery • Soap, Cream & Candle • Hardware Agro-Processing • Tilapia Fish Farm • Herbal Farming • Donkey Milk • Abattoir



Waste Management • Waste Management & Recycling • Biomass

Project Management • Tigane Laundromat • Country Bird Holdings • NTI • BRS

Financial & Professional Services Projects • Housing finance • Banking Services • VSTD ICT • Marketing Expertise


• The Province has adopted a strategy whereby the NWDC participates in

the mining sector and invest in mining activities as provided for in the

NWDC Act, by establishing subsidiaries and/or associate companies.

• This is based on the comparative advantage of the North West

province in this sector and the potential contribution that mining can

make to the profitability of NWDC and the creation of the much needed

sustainable jobs and wealth to the people of Bokoni Bophirima.

Mining as a tributary to ACT


Quick facts on the mining sector

Quick facts on mining in South Africa: • About 7.9 % GDP of the South African economy was attributed to mining in

2016 and it makes up about 32.9% of the North West economy (R76,6bn);

• The social multiplier of mining in South Africa is very high with a dependency ratio of 10:1 thus about 4.5 million people depend on 458 765 jobs created in this sector in South Africa and 1.3 million people rely on the 133 800 jobs created by mining in the North West;

• Mining has the potential to positively impact on the establishment of infrastructure such as roads, services, commercial enterprises which will in turn provide increased economic opportunities to the communities in the province

(Source: IHS Markit; Regional eXplorer 1070) • There are approximately 297 mines in the North West Province according to

the Department of Mineral resources statistics.


North West Province, by far the largest platinum group metals (PGMs) producer, contributes 64.7% of National PGM output. Other opportunities in mining are:

• Smelting Services • Refining Services • Minerals Processing • Mining Equipment Manufacturing • Contract Mining Services • Geological services • Equipment supply • Recover chemicals from waste products

Opportunities in the mining sector


Operating model

SPECIAL

PURPOSE

VEHICLE

Ltd (Pty) / SOC

(Subsidiary or

Associates

Company)

HOST

COMMUNITY

AND STAFF

STRATEGIC

PARTNERS

(Incl. BEE)

NWDC

BUSINESS

OPPORTUNITY


Investments opportunities in tourism

Manyane

Bakgatla

Madikwe River Lodge

Cookes Lake

Christiana All Seasons Resort


• To develop, manage, promote and grow hospitality and eco-tourism whilst promoting affordable access to all.

• We offer tourism products that are accessible to the majority of South

Africans (pricing) • We retain employment in VTSD areas (currently highest tourism related

VTSD Employer), • we contribute to socio-economic upliftment of the people of Bokone

Bophirima


Way forward

Committed to industrialising the VTSD areas.

Bokone Bophirima producing for its own consumption

Take advantage of the pronouncement that government will spend primarily in the VTSD areas as part of stimulating investment in those areas.

Open for investment partnerships in mining, agriculture, culture and tourism.

Promote the province as an investment destination of choice


THANK YOU

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