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A PLETHORA OF OPPORTUNITIES OUR VALUE OFFERING IN BRIEF TO THE KEEN INVESTOR Acknowledging the ideals of Vision 2030, the National Development Plan (NDP), and the provincial leadership vision of realising modernised cities and a growing economy that serves the people of the Northern Cape this investment booklet serves to invite you, the keen investor, to take up a plethora of opportunities in our province. Our Provincial Growth and Development Strategy (PGDS) supports the idea of a truly industrialised economy deeply entrenched in the principles and philosophy of the 4th Industrial Revolution. Empirical evidence presented in the form of provincial statistics indicates that a number of multi-national companies have already invested in the province in sectors such as renewable energy, minerals, metals and chemicals. With other sectors such as agro-processing, aviation, petro-chemical and health remaining untapped, this is an opportunity for any investor to channel an investment where extra care is taken not only to ensure that normal costs associated with doing business in an otherwise rural setting are remarkably reduced, but an investor is offered world-class infrastructure. The structural enablement of investments are key cost drivers and this is addressed via the industrial corridor and nodes approach. These efforts are made not only to entice the investor, but also to enable investors and existing businesses to grow the economy and create local employment and opportunities while being globally competitive. True to the proposition of the resource-based view, our province has the necessary resources that can accommodate investors, being globally competitive, to grow market share and create upstream and downstream opportunities. Our Provincial Growth and Development Plan (PGDP) is premised on the competitive advantage we have over other provinces, given the resource richness of the province. In order to achieve and maintain this competitiveness we offer opportunities to you, the keen investor, along our industrial development corridor. This corridor, pictured below, enables the developer to stretch his investments along our economic nodes, Industrial Parks and Special Economic Zones based on the depth of his pockets and investment appetite. The opportunities in the province also extend beyond the Northern Cape N14 corridor and we urge you to contact us and our dedicated Investment One Stop Shop! Northern Cape Industrial Development Corridor 08
SPECIAL ECONOMIC ZONES AND INDUSTRIAL PARKS THE NORTHERN CAPE is promoting industrial development via incentives linked to infrastructural development at specific sites. This is in line with national policy in which various kinds of Special Economic Zones (SEZs) form a major component of industrial development policy. South Africa has several existing zones such as the Industrial Development Zones (IDZs) in the Eastern Cape and a Free Trade Port (FTP) in KwaZulu-Natal. The Northern Cape is offering the Namakwa Special Economic Zone (NSEZ), the Kathu Industrial Park (KIP) and the Upington Industrial Park (UIP). Key goals behind the establishment of SEZs and IPs are: • to encourage industries to develop in clusters, leading to economies of scale, skills-sharing and easier access by suppliers • to create industrial infrastructure to promote investment • to promote cooperation between the public and private sectors • to use the zones as a launching pad for other plans to further development. Apart from attracting foreign direct investment (FDI) and boosting employment, SEZs can also play a role in helping to add new sectors or subsectors to an economy. Special Economic Zones are created in terms of the Special Economic Zones Act of 2014 (Act 16 of 2014). The act defines an SEZ as “geographically designated areas of the country that are set aside for specifically targeted economic activities, and supported through special arrangements and systems that are often different from those that apply to the rest of the country”. Lower corporate tax rates and duty-free imports are among the advantages for investors. An economic development corridor along the N14 highway intends to strategically link Port Nolloth (Boegoebaai), the Namakwa Special Economic Zone, the Upington Industrial Park and the Kathu Industrial Park to unlock the development potential of the region and prepare it for investments. Each of the three designated zones has a specific focus. The Kathu Industrial Park (KIP) is located at the heart of a major mining area and thus the first tenants will likely be companies servicing the mining sector. Similar links with the fast-growing renewable energy sector will be explored and a business incubator will encourage diversification. The Upington Industrial Park (UIP) is close to Upington International Airport and is well served by access roads. All types of industry and manufacturing can be accommodated: targeted sectors include renewable energy (solar component manufacturing), aviation (maintenance, repair and overhaul), automotive (vehicle testing), agro-processing (citrus and grapes) and logistics. The Namakwa SEZ (NSEZ) centres on the existence of the recently opened Gamsberg Zinc Mine and the proposed building of a smelter by Vedanta Zinc International. 09
