9 months ago

Northern Cape Investment Prospectus 2021

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INVESTMENT OPPORTUNITIES NAMAKWA IRRIGATION DEVELOPMENT PROJECT PROJECT LOCATION: District: Namakwa District, 11 localities NUMBER OF JOBS TO BE CREATED: The impact on employment due to the proposed development is estimated at 3 447 on a direct level, which will include 133 skilled and 1 772 semi-skilled positions. Most of this direct employment will be at the place of production. With the indirect and induced levels added, the impact on employment increases to more than 3 945 for the entire economy INVESTMENT VALUE: The investment value of the 11 localities is around R1.7-billion. Kleinzee Hondeklip Bay Vioolsdrift Upington Springbok Namakwa District Brandvlei Sutherland Kuruman Kathu Kimberley Colesberg PROJECT NAME AND BACKGROUND: Namakwa Irrigation Development Project: Pressure has been placed upon various government departments since 2000 to look at areas of highest agricultural potential for improved agricultural production. This began with the Sector Plan on Agriculture in 2001 when three core strategies were identified under a joint sectoral vision of a United and Prosperous Agricultural Sector. The three core strategies were: Equitable Access and Participation, Global Competitiveness and Profitability and Sustainable Resource Management These core strategies sought to: • Enhance equitable access to and participation in agricultural opportunities; to deracialise land and enterprise ownership; and to unlock the full entrepreneurial potential in the sector • Enhance profitability through sustained global competitiveness in the agricultural sector’s input supply, primary production, agri-processing and agri-tourism industries • Enhance farmers’ capacities to use resources in a sustainable manner and to ensure the wise use and management of natural resources This was later followed up by the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) in 2004 which sought to increase growth in order to halve poverty and unemployment by 2014. Part of AsgiSA was to ramp up public sector infrastructure investment in the form of bulk water and water distribution as well as energy infrastructure. AsgiSA further required government to look at measures to realise the value of dead assets. These assets were mainly sitting in the hands of black farmers but without commercial value. Government was required to improve its planning and zoning capacities, hence the provincial focus on Agricultural Hubs. These hubs were essentially zoning of highpotential areas in the Northern Cape. Through other support initiatives such as the Orange River Farmer Settlement and Development Programme, 4 000ha Water Rights Programme and the Land and Agrarian Reform Programme, the conceptualisation and realisation of the business concept that is the Namakwa Irrigation Development was born. 22

TARGETED SECTORS: Agriculture and agro-processing. DESCRIPTION OF THE PROJECT: The scope of this project will be to develop approximately 3 200ha of high-potential arable land in the Namakwa District. This arable land is located in 11 distinct areas. Each of these have been described, planned and costed individually. Onseepkans has been identified as the pilot to this larger project and the bulk water system is being constructed. Of the identified land, 2 000ha has existing water licences. A further 1 200ha will have to be secured. The basket of products to be produced varies from cash crops such as lucerne and grains, but the bulk of the development is aimed at high-value crops with export potential in order to secure significant growth on the required investment. This development (11 projects) will generate R521-million per annum in value of production when in full production. This will have an economic impact on various levels of the economy. It will lead to an increase in the Gross Domestic Product (GDP) of the Namakwa District. Additional value will be added through inputs such as machinery and equipment, chemicals, packing material, fuel, electricity, water, etc. This development would add an additional R200-million to the Namakwa economy on a direct level. Adding the indirect and induced levels, the impact on GDP exceeds R272-million per annum for the entire economy. PROJECT FINANCED BY: The project so far has been funded by government through conditional grant funding but it is expected that strategic and equity partners will be invited to participate. The anchor project of the Namakwa Irrigation Development is in Onseepkans and over R120-million is being spent by government on the bulk water and water distribution networks to irrigate plots and new developments. A further R30-million has been spent in the development and maintenance of vineyards to produce export raisins. PROJECT STATUS: The anchor project is currently being developed and working with other stakeholders such as the IDC and Raisin SA, bankable business plans are being compiled for each locality except Onseepkans which already has a business plan. PARTNERSHIPS: • Department of Agriculture, Land Reform and Rural Development (National) • Department of Agriculture, Land Reform and Rural Development (Provincial) • IDC • Khai-Ma Local Municipality RESPONSIBLE INSTITUTION: Northern Cape Department of Agriculture Contact person: Dr PS Kegakilwe, Chief Director Tel: 053 838 9110 | Mobile: 083 554 5583 Email: and cc 23

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