Member of the Executive
Member of the Executive Councilfor Finance, EconomicDevelopment and TourismTHE NORTHERN CAPE IS A PROVINCE that has tremendous investmentopportunities. This prospectus presents a prime investment destinationand I request you to consider the Northern Cape Province as your preferredinvestment partner.Geographically the Northern Cape constitutes the largest province of theRepublic of South Africa, which in contrast, has the smallest population. RoughlyINTRODUCTORYREMARKS1.1-million people reside in a land mass covering a fraction more than 30% ofSouth Africa’s land surface. It borders on four other provinces, the Atlantic Oceanto the west and the countries of Namibia and Botswana to the north, making it anideal gateway to West African and other international markets.The province offers profitable investment opportunities in mineral and metalrocessing, 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 DEVELOPMENTordable energy, and upgraded infrastructure are further compelling factors to attractstment.he province has untold mineral riches, impressive landscapes and vistas which arecting increasing numbers of tourists who want to experience the rugged outdoorsventurous trips. Two great rivers and a sophisticated irrigation scheme supportsalue agriculture in crop production and livestock. The highest solar radiation levelsh Africa and incredibly clear skies suitable for astronomy combine to create a uniqueion which is already attracting investment.s of rands have recently been invested in the solar power and radio astronomy fieldsvite other potential investors to investigate what we have to offer. South Africa’st is under way at the Gamsberg Zinc project and iron ore and manganese continues. Between January 2011 and March 2016, the province received 486 foreign directare underway to further boost investment prospects. The rail network is receivingniversity has opened in Kimberley and a lot of work is going in to creating competitivestors to join us on the journey to economic growth and prosperity.Mrs Venus Blennies-Magage,Member of the Executive Councilfor Finance, EconomicDevelopment and Tourism03The Northern Cape is poised for transformative growth, driven by its rich natural resources and strategicinitiatives. Central to this vision is the recognition of tourism as a vital economic sector with immensepotential. The 1996 White Paper on the Development and Promotion of Tourism established a framework fora government-led, private-sector-driven and community-based approach, emphasising collaboration amongstakeholders.Tourism not only contributes significantly to job creation but also stimulates small business developmentand attracts foreign direct investment. The National Development Plan (NDP) highlights tourism as a labourintensiveindustry essential for economic growth, aiming to increase tourist arrivals and spending whileenhancing infrastructure and accessibility.In the Northern Cape, the Provincial Growth and Development Plan prioritises tourism growth througheffective marketing, industry transformation and SMME development. Key initiatives include enhancingtourism 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 increasedcompetitiveness and employment opportunities.Additionally, the Northern Cape Industrial Corridor presents exciting prospects in sectors likemining, renewable energy and agriculture. The province is particularly focused on developing itsGreen Hydrogen economy, leveraging abundant renewable resources to position itself as a leader insustainable energy production.We invite investors to explore the diverse opportunities available in the Northern Cape. While visiting ourprovince, take time to experience its stunning natural beauty and rich cultural heritage. Together, we candrive sustainable development that benefits all communities in the Northern Cape.
MINING CAN INCREASEECONOMIC DEVELOPMENTThe Northern Cape has great potential, as the National Department of MineralResources and Energy notes, in this document prepared for the Northern Cape Miningand Energy Investment Conference.Vedanta Zinc International’s Gamsberg project is one of thebiggest in the country, and a significant investment in theNorthern Cape economy. Credit: Kevin Wright/VedantaSouth Africa’s mining industry continues to play a vitaleconomic and socio-economic role in the country’sdevelopment. Furthermore, the country sits on extensivereserves and remains a world leader in the productionof many minerals, despite recently producing reducedsales revenues. The country continues to have thepotential to supply a large share of the global demandfor many commodities.The country’s mining industry makes a significant directcontribution to GDP. However, the contribution has been onthe decline from 0.2% in 2015 to -0.3% in 2022. However,in 2021 the mining industry contributed a remarkable0.5% following the easing of strict Covid-19 measures. In2022, mining contributed R204.2-billion or -0.7% to grossdomestic product from R219.5-billion in 2021, a significantdecrease of R15.3-billion. This can be attributed to thechallenges of electricity supply that put enormous strainon the economy. In the first quarter 2023, the miningindustry grew by 0.9% to R200.1-billion from R198.3-billionthat was achieved in the last quarter of 2022. The miningsector contributed an average of 0.04% to the GDP’s totalvalue of R4.6-trillion. In the first quarter, the total salesrevenue declined slightly by 1.8% to R191.9-billion quarteron-quarterfrom R195.5-billion for Q4. This was due to adecline on sales quantities. Year-on-year also saw a declineof 6% from R204.1-billion that was achieved in Q1 2022.The country accounts for 91% of known globalreserves of the platinum group metals (PGMs), 75.2%of chrome, 30.2% of manganese, 17.5% of vanadiumand 13.8% of gold reserves. Thus, with explorationcontinuing, there is room for more reserves to bediscovered, making use of the latest technologies andmethods, further improving the country’s position in themineral industry, globally.The mining industry contributed about R880-billionin 2022, as compared to about R846-billion in 2021, a4.1% increase. Despite the rail and road infrastructureconstraints that resulted in the industry failing to takeadvantage of improved prices and demand for theyear 2022.In the first quarter 2023, mining employmentincreased by 0.6% to an average of 476 634 ofemployees from 473 867 of employees that wasrecorded 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 Africanprovinces that has a great mining potential foreconomic development. It is characterised bydiamonds, iron ore and manganese. Apart fromthese minerals, the province is rich in new technologyminerals such as zinc, nickel, copper and cobalt. TheNorthern Cape is also home to most of South Africa’srenewable projects.Industrial clusters in the Northern Cape includethe Namakwa SEZ which will promote mineralbeneficiation, the Kathu Industrial Park which willpromote a large range of business opportunities as wellas the deepwater port at Boegoebaai and the UpingtonIndustrial Park to promote manufacturing, particularlythe manufacturing of solar-power components.Therefore, there is a renewed call for mines to usetheir social licences to increase economic developmentand address issues including housing, skills, localenterprises and services in the areas in which theyoperate in order to grow the local economies.
