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Free State Investment Prospectus

  • Text
  • State
  • Africa
  • Africa
  • Opportunities
  • Investment
  • Invest
  • Prospectus
  • Rural
  • Funding
  • Mangaung
  • Economic
  • Municipality
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  • Agriculture
  • Financed
  • Infrastructure
  • Mapsez
THE FREE STATE, with 2.8-million residents, accounted for 5% of South Africa’s population in 2017/18 and contributed proportionately to the GDP. In 2018 (the latest available data), the real economy (represented by agriculture, mining, manufacturing and construction) made up 27% of the Free State’s output. The largest real-economy sector was mining at 11% of the provincial economy, followed by manufacturing at 9%, agriculture at 4% and construction at 3%. The Free State contributed 10% of national agriculture and 7% of national mining, but just 4% of national manufacturing and 3.5% of national construction.

INVESTMENT OPPORTUNITIES

INVESTMENT OPPORTUNITIES Agro-processing Textiles Logistics Infrastructure PROJECT SECTOR: Agro-processing PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: R118 million JOB CREATION: 25 - 50 jobs COMPANY NAME AND BACKGROUND: VIP Liquors is a 100% black, independently owned business, importing, distributing and marketing some of the world’s most premium brands. The investor will establish a beverage processing and bottling plant at the MAPSEZ PROJECT DESCRIPTION: The investor will process and bottle beverages at the MAPSEZ. Grapes for the beverages will be sourced from the Western Cape. The investor is investigating the possibility of growing of grapes through hydroponics at the MAPSEZ. The finished product will be sold at retail facilities domestically and internationally FINANCED BY: • Operational funding: Industrial Development Corporation at R118-million • Capital funding: Department of Trade and Industry at R95-million PROJECT STATUS: Application for funding submitted to the Department of Trade and Industry for consideration during the sitting of their SEZ fund adjudication committee PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Textiles PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: R50 million JOB CREATION: 75 - 100 jobs COMPANY NAME AND BACKGROUND: The company is No. 1 Hair Industry. A Chinese hair company, AnyTech has sought partners in South Africa to establish a human hair manufacturing plant. AnyTech is the technical partner to No. 1 Hair Industry, and contributed R17-million to the operational cost of the project PROJECT DESCRIPTION: A manufacturer of human hair. The investor has sourced a Chinese technical partner who will invest R17-million. Raw materials are to be sourced from China with production taking place in South Africa FINANCED BY: • Operational funding: funded by the Department of Trade and Industry’s Black Industrial Scheme at R25-million • Capital funding: funded by Department of Trade and Industry at R40-million PROJECT STATUS: Application for funding submitted to the dti for consideration during the sitting of their SEZ fund adjudication committee PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Logistics PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: R50 million JOB CREATION: 80 jobs COMPANY NAME AND BACKGROUND: Ensign Logistics is a KwaZulu-Natal-based logistics company looking to relocate to the MAPSEZ from its current base of operations. This business will work with VKB in transporting agro-processing goods as well as shipping containers PROJECT DESCRIPTION: Logistics FINANCED BY: Self-funded PROJECT STATUS: Transnet is conducting viability options for a logistics partnership with Ensign Logistics. The project will commence once Transport has confirmed viability of the project for freight logistics PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Infrastructure PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: R450 million JOB CREATION: 300 temporary work opportunities COMPANY NAME AND BACKGROUND: MAPSEZ Bulk Earthworks Phase 2: MAPSEZ was designated as a brownfield with most of the park being without essential services such as water, sewer, roads and electricity. Phase 2 of the bulk earthworks project aims to install these services in alignment with the establishment of new investor top structures within the park PROJECT DESCRIPTION: Phase 2 is a multi-year bulk earthworks project focusing on installing new bulk services and new road networks FINANCED BY: Department of Trade and Industry PROJECT STATUS: Phase 2 planning and design commenced in March 2019 PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 16 17

INVESTMENT OPPORTUNITIES Infrastructure Infrastructure Infrastructure Infrastructure PROJECT SECTOR: Infrastructure PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: The project value will be determined by the municipality’s scope of work JOB CREATION: The number of temporary jobs will be determined by the municipality’s scope of work COMPANY NAME AND BACKGROUND: Municipal infrastructure upgrades are required at the Maluti-a-Phofung Municipality which houses the MAPSEZ. The upgrades include the water and power reticulation systems and the water treatment plant PROJECT DESCRIPTION: The municipality is expected to repair the waste treatment plant for the treatment of effluent water. This treatment plant has not been operational for a year and must be brought back on line with immediate effect. This is the most crucial infrastructure project at the moment. The municipality, in partnership with Eskom and the MAPSEZ, is expected to upgrade the substation in order for it to accommodate the required 80MVA for the MAPSEZ. The municipality currently receives 10ML of water per day for the area. This needs to increase by 40ML per day to accommodate the MAPSEZ’s 20ML per day long-term requirement and the estimated 20ML per day that is required for the residential area. FINANCED BY: To be financed by the municipality PROJECT STATUS: The municipality does not have funds to undertake the urgent required repairs of the wastewater treatment plant. Urgent intervention is required. Eskom is to be presented with the power requirement of the area in order to upgrade the power supply. This can only be done through the municipality as the power supply runs from Eskom to the municipality and then to the MAPSEZ PROJECT PROMOTER: Maluti-a-Phofung Municipality INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Infrastructure PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: Estimated R350 million JOB CREATION: 180 temporary work opportunities COMPANY NAME AND BACKGROUND: Department of Police, Roads and Transport: The roads within the MAPSEZ park and adjacent to the park require refurbishments PROJECT DESCRIPTION: • Proposal to be submitted to SANRAL to realign intersections on the N5 entrances into the MAPSEZ • Department of Police, Roads and Transport to redevelop the main road of the MAPSEZ as this is provincial road • Municipal road entering the MAPSEZ from Tshiame to be repaired as it has reached its life span FINANCED BY: Department of Police, Roads and Transport PROJECT STATUS: • The MAPSEZ has requested meeting with SANRAL to present a Traffic Impact Assessment that will determine the extent of realigned intersections • The MAPSEZ has made a request to Department of Police, Roads and Transport for a meeting to plan and formulate budget for road construction • The municipality currently does not have funds for road construction PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Infrastructure PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: R20 million JOB CREATION: 80 jobs COMPANY NAME AND BACKGROUND: Transnet Freight Rail: Transnet SOC Ltd is a large South African rail, port and pipeline company PROJECT DESCRIPTION: Following gateway review 2, Transnet Freight Rail will begin with Front End Loading 3 (design state) process. Funding for professional work for Front End Loading 3 is required by Transnet FINANCED BY: Transnet PROJECT STATUS: Transnet currently does not have the funds to finance the Front End Loading 3 Project. Transnet has elected to first assess the freight demand in the area before commencing with Front End Loading 3 process PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Infrastructure PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: Infrastructure JOB CREATION: 125 jobs COMPANY NAME AND BACKGROUND: MAPSEZ Development Fund (Capital Funding): Currently the MAPSEZ depends solely on the funding of the Department of Trade and Industry for infrastructure projects. There is no dedicated budget in the province for development of the Park. However, the MAPSEZ requires dedicated funding for infrastructure development (top structure funding and bulk infrastructure) PROJECT DESCRIPTION: Capital funding (top structure funding) required for the development of the Park. Funds are required for the refurbishment of existing structures, refurbishing and construction of new roads, building of a new office block which will include an SEZ One Stop Shop, as well as reticulation of water and electricity services within the Park FINANCED BY: Currently partially financed by Department of Trade and Industry; however, full funding is required for this development PROJECT STATUS: • The dti has funded the MAPSEZ R240-million for Phase 1 of bulk infrastructure in 2015 • The dti has approved R192-million for two top structures in 2017 for the following investors: GTM Abattoirs and Kevali Chemicals PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 18 19

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