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Northern Cape Business 2020/21 edition

  • Text
  • Development
  • Africa
  • Tourism
  • Sectors
  • Agriculture
  • Trade
  • Business
  • Investment
  • Infrastructure
  • Cape
  • Mining
  • African
  • Zinc
  • Kimberley
  • Province
  • Municipality
  • Economic
  • Northern
The 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide for the Northern Cape Province. Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged, investment opportunities. These include plans for the establishment of Special Economic Zones (SEZs) within the province, which have specific incentives designed to make investment into the Northern Cape even more attractive. The hi-tech exploits of astronomers and engineers in search of a landspeed record are the focus of an article on engineering sector while the rapidly expanding solar energy sector which continues to attract significant capital is discussed in some detail.

SPECIAL FEATURE A

SPECIAL FEATURE A regional overview of the Northern Cape Province By John Young Image: Savage + Dodd Architects A new university, a world-class astronomy project and billions of rands of investment in renewable energy underpin the Northern Cape’s investment proposition. South Africa’s largest province is also the country’s sunniest and investors in solar energy are taking advantage of large tracts of sunlit land to build giant solar farms. South Africa’s newest university is growing in Kimberley and one of the world’s biggest scientific projects, the Square Kilometre Array (SKA) radio telescope, is taking shape around Carnarvon. Sol Plaatje University has a strong suit in teacher training, but an expanding curriculum speaks both to being able to exploit the SKA link through subjects such as ICT and data science and an appreciation of the past via heritage studies and paleo-sciences. The university’s location in an arid region means that future programmes will be developed to study agriculture in waterstressed conditions. Building on the campus, which will eventually cover 190 000m², is expected to continue for another decade. The competition held to choose architects for the first new buildings lead to some award-winning designs, including the multi-functional building (pictured) which houses a canteen, residences, offices and a retail section. The colourful wind-driven louvres were designed by Savage + Dodd Architects and executed by RVI Architectural Solutions. Several black and women-owned companies have been active on the 12 projects currently NORTHERN CAPE BUSINESS 2020/21 8

SPECIAL FEATURE underway. A Great Hall is planned on a portion of the Oppenheimer Gardens. Mining and agriculture, the traditional pillars of the provincial economy, remain important. Both sectors continue to contribute (despite fluctuating iron-ore prices and periodic droughts) but both sectors are showing potential to expand into new and productive terrain. The Kalahari Basin contains 80% of the world’s manganese reserve, but only 15% of global production comes from this area so there is enormous scope for development. Several new black-owned manganese projects are underway. The world receives 7% of its diamonds from the Northern Cape, and exports of zinc and lead from the province account for 13% of global demand. Iron-ore miners have done particularly well recently but it’s the development of new zinc and copper projects that is catching the eye. Vedanta Zinc International has invested 0-million in the first phase of its Gamsberg project and Orion Minerals announced in 2019 that its bankable feasibility study was positive for a planned zinc and copper project at Okiep. The modern global economy needs particular minerals for its cellphones, renewable energy batteries and electric vehicles, and the Northern Cape has a lot of them. Investors are expected to follow in search of cobalt, copper, lead, nickel and zinc. A notable feature of Northern Cape agriculture is its diversity, a result of the diverse soil and weather conditions. The 38 000ha Vaalharts Irrigation Scheme produces wheat, fruit, groundnuts, cotton and maize and along the banks of the Orange River many high-value horticultural products such as table grapes, wine grapes, sultanas and cereal crops are cultivated. A quarter of the country’s onions are produced in the Northern Cape and in the drier areas, goats and sheep do well. Niche products such as rooibos tea and karakul pelts are other provincial specialities, with aquaculture and mariculture showing great potential. Sea Harvest, the new owner of Viking Aquaculture, has started work on expanding its Diamond Coast Aquaculture facility near Kleinzee. It currently covers 400ha and produces 100 tons of abalone per year. The plan is to increase production five-fold to cater for increased demand, particularly from Hong Kong. The Provincial Government of the Northern Cape wants to develop an industrial base for the province based on agriculture and mining. Various projects such as the creation of a rooibos tea plant are supporting that plan, as are the various spatial planning initiatives being pursued by provincial government. These include corridors of development, industrial parks and Special Economic Zones. There are plans to build on the existing infrastructure that lies on the east-west axis roughly aligned with the existing N14 national highway and the Sishen-Saldanha railway freight line. • At the far east of this corridor lies the mining towns of Sishen, Kathu and Kuruman – an industrial park is planned for Kathu. • In the middle is the town of Upington – a Special Economic Zone is envisaged with a focus on solar energy and manufacturing. The existing airport is an important part of the region’s transport and logistics infrastructure. Viking Aquaculture’s abalone factory near Kleinze. • Aggeneys lies 277km west of Upington on the N14 where Vedanta Zinc International is mining zinc – a smelter and a refinery would be the centrepieces of the Namakwa Special Economic Zone. • Boegoe Baai/Port Nolloth – feasibility studies are being done into deepening and expanding this harbour to be able to export minerals. This would happen in conjunction with investments into fishing and aquaculture. 9 NORTHERN CAPE BUSINESS 2020/21

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