2 years ago

Free State Investment Prospectus

  • Text
  • Freestate
  • Southafrica
  • Africa
  • Opportunities
  • Investment
  • Invest
  • Prospectus
  • Rural
  • Funding
  • Mangaung
  • Economic
  • Municipality
  • Institution
  • 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 Infrastructure Infrastructure Infrastructure PROJECT SECTOR: Infrastructure PROJECT LOCATION: Maluti-A-Phofung SEZ INVESTMENT VALUE: R80 million JOB CREATION: 100 jobs COMPANY NAME AND BACKGROUND: Construction of MAPSEZ office including an SEZ One Stop Shop PROJECT DESCRIPTION: Construction of the SEZ office building to house the full MAPSEZ staff estimated at R80-million. This office includes a One Stop Shop (SARS, Department of Home affairs, Department of Trade and Industry) FINANCED BY: Department of Trade and Industry PROJECT STATUS: Construction of new offices has been incorporated into the Phase 2 works project and its funding PROJECT PROMOTER: MAPSEZ INSTITUTION CONTACT DETAILS: MAPSEZ Tel: 051 400 0880 PROJECT SECTOR: Phakisa Raceway and the revitalisation and commercialisation of Phakisa will most likely necessitate a new suburb with residential and non-residential developments PROJECT LOCATION: Welkom INVESTMENT VALUE: • Phakisa: R150-million • A new suburb: at least R4-billion JOB CREATION: At least 2 000 jobs COMPANY NAME AND BACKGROUND: The FSGLTA owns Phakisa Raceway. Currently, Phakisa’s licence has been withdrawn by MotoSA. A new model of operation is needed to bring Phakisa back to profitability. A request for proposals will be issued to start the process of revitalisation and commercialisation of Phakisa PROJECT DESCRIPTION: Phakisa Raceway needs to be revitalised, repurposed, recommercialised and operated on a lease basis by private agents. An RFP will have to be issued FINANCED BY: Domestic and international investors PROJECT STATUS: FSGLTA to issue an RFP for Phakisa to be operated by private investors PROJECT PROMOTER: • FSGLTA Board through the RFP • DESTEA MEC and HOD INSTITUTION CONTACT DETAILS: The DESTEA MEC will start the process AIRPORT DEVELOPMENT NODE (ADN) PROJECT SECTOR: Mixed-use development consisting of hospitality, recreational, retail, industrial, real estate and transportation PROJECT LOCATION: The ADN site is located adjacent to the N8 between Bloemfontein and Botshabelo. The two phases of the site are apportioned on land north and south of the N8. Phase 1, consisting of 700 hectares and south of the N8, is the focus of the ADN (Phase 1). Coordinates: 29°07’13.0”S 26°18’01.9”E INVESTMENT VALUE: R100 billion LABOUR JOB VALUE: +-R189 million JOB CREATION: 11 000 to be created in the site – servicing phase alone COMPANY NAME AND BACKGROUND: Mangaung Metropolitan Municipality PROJECT DESCRIPTION: The proposed development of the Phase 1 site is a mixed-use development precinct, focused on both office/commercial precincts and residential opportunities. The development also proposes to incorporate flagship developments such as an International Convention Centre and tertiary education institution. The proposed conceptual design of the ADN takes the form of a large precinct with a water feature and river (Bloemspruit) as the primary focal point. The land-use zones include the following: • Green open space • Heritage precinct • Public facility • Public transport precinct • Hospitality • Business Node • Residential (various densities) • Retail • Commercial • Mixed-use precincts The concept also contains some targeted leisure areas such as a golf course and linear park. The spatial conceptual design work is at an advanced stage, with an approved township plan and with sub-precincts defined in form and function. The Professional Service Provider (PSP) team has produced architectural renderings of proposed approach to residential typologies. FINANCED BY: Bulk infrastructure provided and financed by Mangaung Metropolitan Municipality PROJECT STATUS: • Concept plan and urban designs were completed and approved in 2012 (this phase is often unnecessarily long) • Engineering and environmental designs also completed • Civil and electricity works for bulk infrastructure completed • The diagrams and general plan are approved. The general plan consists of 380 erven numbered 40620-40999, 26 parks numbered 41000-41025 and streets numbered 41026-41076 PROJECT PROMOTER: Mangaung Metropolitan Municipality INSTITUTION CONTACT DETAILS: Mangaung Metropolitan Municipality Bram Fischer Building, 8th Floor, Room 821, Mangaung Tel: 051 405 8343 Email: 20 21

INVESTMENT OPPORTUNITIES Infrastructure Agriculture: Aquaculture Agriculture: Apples CECILIA PARK DEVELOPMENT PROJECT SECTOR: Mixed use development PROJECT LOCATION: -26°09’10.08’’ east and 29°07’ 17,55’’ south Cecilia is located on the north-west periphery or urban edge of Bloemfontein, surrounded by older, established neighbourhoods with lowdensity residential use. The area is on the Haldon Road (N8) and connects to the N1 national road to the east and new extension of Langenhoven Park to the north. The township development is planned on portions of the farms Cecilia 2352, Kwaggafontein 2300 and Bloemfontein 654 located in Bloemfontein, Free State INVESTMENT VALUE: R6 billion LABOUR JOB VALUE: +-R55 million JOB CREATION: 3 200 jobs COMPANY NAME AND BACKGROUND: The development is part of the integration strategy towards the western side of the Bloemfontein. The project is particularly well-located due to its main access routes to the N8 and N1 national roads. It is defined by the N1 national road to the east allowing easy access to all of the eastern main routes connecting to the CBD. This traffic intersection creates an important gateway to commercial, employment and institutional nodes in the city, including the military base, the University of the Free State, government buildings in the CBD and support areas, as well as the Loch Logan Waterfront, Hyperama, Hypermark, etc PROJECT DESCRIPTION: The project area is 172ha in extent and consists of 668 erven of which 539 are residential erven, 25 business erven and 104 are social amenities. The proposed mixed-use development will consist of residential, light industrial areas, commercial properties and open spaces. Mangaung Metropolitan Municipality will construct and provide all infrastructure for the above-mentioned mixed-use development. This includes: • Construction of roads • Provision of electricity • Provision of water • Provision of sewage pipelines • Zoning of properties • Waste management FINANCED BY: Bulk infrastructure financed by Mangaung Metropolitan Municipality PROJECT STATUS: Township establishment approved and general plan registered with the Surveyor General PROJECT PROMOTER: Mangaung Metropolitan Municipality INSTITUTION CONTACT DETAILS: Mangaung Metropolitan Municipality Bram Fischer Building, 8th Floor, Room 821, Mangaung Tel: 051 405 8343 Email: 22 PROJECT SECTOR: Agriculture: Aquaculture PROJECT LOCATION: Jim Fouche Holiday Resort, Metsimaholo, Fezile Dabi District INVESTMENT VALUE: TBC JOB CREATION: Permanent jobs are to be created once the project is up and running; targeted employees are mainly the youth COMPANY NAME AND BACKGROUND: Fezile Dabi Fish Farming: The project site is situated on the state land at Jim Fouche resort, about 15km from the town of Oranjeville. The project was initiated in 2015 following the Free State Premier’s visit to Oranjeville and the activities were projected to start in 2016/17. The project is an open space without infrastructure; a fence has been erected. There is no water supply and electricity onsite. The climate of the area is semi-arid with a median annual rainfall of 600- 650mm, and frosty winters with mid-winter minimum temperatures varying between -3°C and O°C PROJECT DESCRIPTION: • To establish a compliant warm-water fish business operation with all the required facilities and accessories in Oranjeville. • To produce warm-water fishing in an intensive system. • To create permanent jobs for the youth of Oranjeville after the project has been completed. FINANCED BY: Free State Department of Agriculture and Rural Development PROJECT STATUS: There is currently no production happening on the site PROJECT PROMOTER: Free State Department of Agriculture and Rural Development INSTITUTION CONTACT DETAILS: Free State Department of Agriculture and Rural Development Tel: 051 861 8509 PROJECT SECTOR: Agriculture: Apples PROJECT LOCATION: Thabo Mofutsanyana District INVESTMENT VALUE: R60 million JOB CREATION: ±4 000 permanent jobs: 2 000 jobs will be created on the farms and 2 000 in handling and juicing of apples COMPANY NAME AND BACKGROUND: Remmoho Eastern Free State Apple Production (Pty) Ltd t/a Remmoho was formed on 20 May 2015 (K2015160655). Remmoho was started by Makolobane Farmers Enterprise, a black-owned farming enterprise, and Maluti Fruit, an apple-packing facility. Pitso Sekhoto is the first African to own a commercial apple farm in the Free State. The apple industry in the Eastern Free State was started in 1991 and Maluti Fruit is one of the key players in packing and marketing of apples; they pack for 13 growers. The aim of Remmoho is to establish 2 000 hectares of apples in the Thabo Mofutsanyana District of the Eastern Free State PROJECT DESCRIPTION: Remmoho is a majority black-owned company. The Remmoho Memorandum of Incorporation (MOI) will allow for the sale of shares for individuals and groups. However, transfer of ownership will be restricted to individuals and bodies within their grouping (development, Maluti, management and institutions) FINANCED BY: Free State Provincial Government PROJECT STATUS: Remmoho is a start-up and will be filling line functions related to its business structure: production, juicing and packing PROJECT PROMOTER: Free State Department of Agriculture and Rural Development INSTITUTION CONTACT DETAILS: Free State Department of Agriculture and Rural Development Tel: 051 861 8509 23

Other recent publications by Global Africa Network: