Member of the Executive
Member of the Executive Council for Finance, Economic Development and Tourism THE NORTHERN CAPE IS A PROVINCE that has tremendous investment opportunities. This prospectus presents a prime investment destination and I request you to consider the Northern Cape Province as your preferred investment partner. Geographically the Northern Cape constitutes the largest province of the Republic of South Africa, which in contrast, has the smallest population. Roughly INTRODUCTORY REMARKS 1.1-million people reside in a land mass covering a fraction more than 30% of South Africa’s land surface. It borders on four other provinces, the Atlantic Ocean to the west and the countries of Namibia and Botswana to the north, making it an ideal gateway to West African and other international markets. The province offers profitable investment opportunities in mineral and metal rocessing, agricultural production and - processing, fishing, mariculture, energy, urism, renewable energy and the knowledge economy. Access to raw materials, UNLOCKING THE NORTHERN CAPE’S ECONOMIC POTENTIAL: A FOCUS ON TOURISM AND SUSTAINABLE DEVELOPMENT ordable energy, and upgraded infrastructure are further compelling factors to attract stment. he province has untold mineral riches, impressive landscapes and vistas which are cting increasing numbers of tourists who want to experience the rugged outdoors venturous trips. Two great rivers and a sophisticated irrigation scheme supports alue agriculture in crop production and livestock. The highest solar radiation levels h Africa and incredibly clear skies suitable for astronomy combine to create a unique ion which is already attracting investment. s of rands have recently been invested in the solar power and radio astronomy fields vite other potential investors to investigate what we have to offer. South Africa’s t is under way at the Gamsberg Zinc project and iron ore and manganese continue s. Between January 2011 and March 2016, the province received 486 foreign direct are underway to further boost investment prospects. The rail network is receiving niversity has opened in Kimberley and a lot of work is going in to creating competitive stors to join us on the journey to economic growth and prosperity. Mrs Venus Blennies-Magage, Member of the Executive Council for Finance, Economic Development and Tourism 03 The Northern Cape is poised for transformative growth, driven by its rich natural resources and strategic initiatives. Central to this vision is the recognition of tourism as a vital economic sector with immense potential. The 1996 White Paper on the Development and Promotion of Tourism established a framework for a government-led, private-sector-driven and community-based approach, emphasising collaboration among stakeholders. Tourism not only contributes significantly to job creation but also stimulates small business development and attracts foreign direct investment. The National Development Plan (NDP) highlights tourism as a labourintensive industry essential for economic growth, aiming to increase tourist arrivals and spending while enhancing infrastructure and accessibility. In the Northern Cape, the Provincial Growth and Development Plan prioritises tourism growth through effective marketing, industry transformation and SMME development. Key initiatives include enhancing tourism infrastructure, providing incentives and unlocking opportunities within the Oceans Economy. Investing in these areas is crucial for maximising the socio-economic benefits of tourism, such as increased competitiveness and employment opportunities. Additionally, the Northern Cape Industrial Corridor presents exciting prospects in sectors like mining, renewable energy and agriculture. The province is particularly focused on developing its Green Hydrogen economy, leveraging abundant renewable resources to position itself as a leader in sustainable energy production. We invite investors to explore the diverse opportunities available in the Northern Cape. While visiting our province, take time to experience its stunning natural beauty and rich cultural heritage. Together, we can drive sustainable development that benefits all communities in the Northern Cape.
MINING CAN INCREASE ECONOMIC DEVELOPMENT The Northern Cape has great potential, as the National Department of Mineral Resources and Energy notes, in this document prepared for the Northern Cape Mining and Energy Investment Conference. Vedanta Zinc International’s Gamsberg project is one of the biggest in the country, and a significant investment in the Northern Cape economy. Credit: Kevin Wright/Vedanta South Africa’s mining industry continues to play a vital economic and socio-economic role in the country’s development. Furthermore, the country sits on extensive reserves and remains a world leader in the production of many minerals, despite recently producing reduced sales revenues. The country continues to have the potential to supply a large share of the global demand for many commodities. The country’s mining industry makes a significant direct contribution to GDP. However, the contribution has been on the decline from 0.2% in 2015 to -0.3% in 2022. However, in 2021 the mining industry contributed a remarkable 0.5% following the easing of strict Covid-19 measures. In 2022, mining contributed R204.2-billion or -0.7% to gross domestic product from R219.5-billion in 2021, a significant decrease of R15.3-billion. This can be attributed to the challenges of electricity supply that put enormous strain on the economy. In the first quarter 2023, the mining industry grew by 0.9% to R200.1-billion from R198.3-billion that was achieved in the last quarter of 2022. The mining sector contributed an average of 0.04% to the GDP’s total value of R4.6-trillion. In the first quarter, the total sales revenue declined slightly by 1.8% to R191.9-billion quarteron-quarter from R195.5-billion for Q4. This was due to a decline on sales quantities. Year-on-year also saw a decline of 6% from R204.1-billion that was achieved in Q1 2022. The country accounts for 91% of known global reserves of the platinum group metals (PGMs), 75.2% of chrome, 30.2% of manganese, 17.5% of vanadium and 13.8% of gold reserves. Thus, with exploration continuing, there is room for more reserves to be discovered, making use of the latest technologies and methods, further improving the country’s position in the mineral industry, globally. The mining industry contributed about R880-billion in 2022, as compared to about R846-billion in 2021, a 4.1% increase. Despite the rail and road infrastructure constraints that resulted in the industry failing to take advantage of improved prices and demand for the year 2022. In the first quarter 2023, mining employment increased by 0.6% to an average of 476 634 of employees from 473 867 of employees that was recorded in Q4 2022. Earnings also increased by 1.2% to R46.2-billion from R45.6-billion in Q4 2022. The Northern Cape is one of the South African provinces that has a great mining potential for economic development. It is characterised by diamonds, iron ore and manganese. Apart from these minerals, the province is rich in new technology minerals such as zinc, nickel, copper and cobalt. The Northern Cape is also home to most of South Africa’s renewable projects. Industrial clusters in the Northern Cape include the Namakwa SEZ which will promote mineral beneficiation, the Kathu Industrial Park which will promote a large range of business opportunities as well as the deepwater port at Boegoebaai and the Upington Industrial Park to promote manufacturing, particularly the manufacturing of solar-power components. Therefore, there is a renewed call for mines to use their social licences to increase economic development and address issues including housing, skills, local enterprises and services in the areas in which they operate in order to grow the local economies.
