Northern Cape Business 2017-18 edition

SPECIAL FEATURE •

SPECIAL FEATURE • agri-processing • mining equipment • micro-technology (for solar, electronic, robotic and astronomy) • logistics, warehousing and assembly (astronomy, solar). Upington International Airport Upington International Airport’s 4.9km runway allows it to land the largest aircraft. Airports Company South Africa is a partner in the application to run the Upington SEZ and has allocated 55ha for the creation of an aviation park to store and maintain aircraft, and a further 30ha for commercial development. ACSA’s research suggests that over the next decade there will be a big demand for aircraft storage and dismantling (a subsector of the broader Maintenance, Repair and Overhaul [MRO] market). Storage and dismantling alone will be worth .7- billion by 2024, and Upington has many advantages: • dry air minimises corrosion • low-cost land (space for 340 wide-bodied aircraft) • very long runway • close to northern border of South Africa, access to Africa • link to Upington SEZ. The planned storage facility could also support a variety of other sectors such as aircraft maintenance, modification and demolition, parts manufacturing and warehousing and ground support equipment (GSE) repair. The somewhat more ambitious goal of establishing a fully-fledged MRO facility at Upington to serve Africa and Europe is supported by the fact that there is no major competition in that field at the moment. With the solar and radio astronomy sectors growing very fast in the province, there is a new focus on sophisticated technology. Aircraft maintenance and repair falls into that category, so perhaps this will the Northern Cape’s newest hi-tech industry? Manufacturing clusters With a vibrant and varied agricultural sector, it is no surprise that agri-processing and food and beverage feature strongly in the manufacturing sector in the NORTHERN CAPE BUSINESS 2017/18 14

SPECIAL FEATURE Northern Cape. Wine and table grapes are covered separately in this publication. What is perhaps surprising is the geographic spread of manufacturing facilities across what is South Africa’s most sparsely-populated province. 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 43 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 a number of food-processing facilities that cater to the urban concentration of population. 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. Within that framework, 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 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 seen as sectors with great potential to grow. Plans for this sector include the encouragement of some downstream manufacturing in items such as fibre sacks and cardboard cartons for packaging. 15 NORTHERN CAPE BUSINESS 2017/18