2 years ago

North West Business 2020-21 Edition

  • Text
  • Invest
  • Manufacturing
  • Parks
  • Zones
  • Business
  • Investment
  • Industrial
  • Africa
  • Africa
  • Province
  • Programme
  • Banking
  • Provincial
  • Platinum
  • Sector
  • Mining
  • Municipality
  • Tourism
  • Province
  • Rustenburg
The guide to business and investment in the North West Province, South Africa. The 2020/21 edition of North West Business marks the 10th publication of this highly successful journal that, since its launch in 2009, has established itself as the premier business and investment guide for the North West Province. North West Business includes news and analysis of the most important sectors, with a regional overview covering the strategic thinking behind plans to attract investment into the province. Best known for its platinum mines, grain and livestock farming and tourism, the province is making a concerted effort to bolster its manufacturing capacity. Corridor development, agri-parks and the creation of a Special Economic Zone are among the economic stimulus plans covered in this edition.


SPECIAL FEATURE Regional overview of North West Province By John Young Spatial planning is at the heart of plans to expand the economy of the North West. Development corridors, a proposed Special Economic Zone (SEZ), industrial parks and agri-parks with differentiated focus areas are among the interventions planned to stimulate the regional economy and create employment opportunities. The North West Department of Economic Development, Environment, Conservation and Tourism (DEDECT) has committed to entering partnerships with the Automobile Industry Development Council (AIDC) and the Industrial Development Corporation (IDC) to revive industrial parks in the province and create industries that will target niche markets. The creation of district agri-parks is intended to boost primary production which in turn will increase the amount of raw material that can be processed. Companies making car seats within the province’s active automotive parts sector would be a ready market for treated hides from the huge provincial cattle herd. The province’s strategic location goes beyond the obvious benefit of its proximity to the province of Gauteng: the major roads linking trade on an east-west axis pass through the province, as does the major railway line which runs from Cape Town in the south to Zimbabwe and beyond in the north. These advantages will be enhanced by four Provincial Strategic Development Corridors, two of which are: • The Eco-Tourism Corridor, Bojanala District. This corridor extends beyond the tourism sector (which includes the Hartbeespoort Dam to Sun City, game lodges and game reserves) and will be supported by the Platinum Valley Special Economic Zone, the automotive industry in the Madibeng area and the mining opportunities that occur throughout the district. The proposed PVSEZ in the Mogwase Industrial Area will be designed to create space for enterprises which supply the mining industry. Other targeted sectors are capital equipment manufacturing, renewable energy, agro-processing and general manufacturing. Discussions are underway with the National Department of Trade, Industry and Competition (dtic) for the licensing and commissioning of the SEZ. • The N12 corridor in the Dr Kenneth Kaunda District. By promoting residential and commercial activity along this route, it is intended to integrate the economies of the towns of Matlosana and Tlokwe. Private developers are thinking of regional links for their new development in Vryburg, which is at the intersection of the N14 highway (Johannesburg-Upington) and the N18 highway which connects Kimberley to Mahikeng. Twin City Development and Vuno Developments are spending R290-million on the town’s first retail NORTH WEST BUSINESS 2020/21 6

SPECIAL FEATURE mall, which will serve as a regional attraction. Twin City Development is partnering with the Moolman Group in the construction of the new Rustenburg Mall. Spatial thinking requires infrastructure to underpin it. In 2020 the North West Department of Public Works and Roads was busy with 13 road construction projects valued at R900-million. Geography and economy The North West is bordered on the west by the Republic of Botswana and on the east by Gauteng, the engine of the South African economy. The North West province makes up 6.8% of the population of South Africa (3.6-million), 8.7% of the land mass (105 076km²) and accounts for 5.8% of economic output in terms of gross value added. The Vaal River runs along the province’s south-eastern border with the Free State, and the province also shares borders with the Northern Cape to the south and Limpopo in the north. The mineral reserves in the province are enormous. Platinum group metals (PGMs) predominate but there are significant deposits of gold, uranium, diamonds, copper, vanadium, fluorspar and nickel. Stone and limestone are also found in large quantities. Mining beneficiation takes place at many places, with Rustenburg being particularly strong in this sector. The economy of the town is closely linked to the fortunes of platinum mining, with the sector contributing about 70% of the city’s gross geographic product. Automotive components firms are clustered in Brits, which in turn is close to the automotive manufacturing hub of Rosslyn (Pretoria) in Gauteng. Towns like Klerksdorp (agro-processing and engineering) and Potchefstroom (food and beverages) also have manufacturing capacity. The North West is a major producer of maize and sunflower seeds and many other agricultural products. About 20% of South Africa’s maize comes from the province, as does 15% of its wheat. The dry western part of the province is home to 7 NORTH WEST BUSINESS 2020/21

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