2 THE NORTHERN CAPE AT A GLANCE NORTHERN CAPE is unique as a trade and investment destination. Its vast geographical extent and natural resources, complemented by human capacity and sound infrastructure, offer its partners a wide array of attractive trade and investment opportunities meeting global standards. The geographic location of the Northern Cape provides easy access to SADC markets and export ports via sea and air. The entry points in terms of access to Namibia and Botswana, extending to Zambia, provide a unique competitive advantage. The mineral profile of the Northern Cape has contributed to the establishment of global trade centres such as London and New York through diamond resources and mining listings. In addition to being for many years the leading source of diamonds, the province is a key iron ore and manganese producer, which is complemented by lime, granite, semi-precious stones and other minerals. The mining sector continues to expand, and with it opportunities in mining supplies and mineral value addition. The South African government has prioritised the diversification of energy sources to supply the national grid, and the focus on renewable energy has stimulated the demand for solar, wind, hydro and biomass energy sources. No province is better equipped in these fields than the Northern Cape, which has become the preferred investment destination for renewable energy companies. Growth in the energy sector has stimulated the manufacturing and agricultural sectors, which in turn has stimulated the development of infrastructure and services. Key projects include the Boegoebaai deep-sea port, Kathu Industrial Park, Upington Industrial Park and Vioolsdrif Dam. These projects are complemented by a well-developed settlement, transport and communication network. Huge opportunities also exist in value addition to the Northern Cape’s agricultural and mineral resources. These developments, opportunities and the associated business travel will undoubtedly contribute significantly to the further growth in travel and tourism into and within the province. To respond effectively to this growth in tourism demand and remain globally competitive, the province needs to attract suitable and sustainable investment across the tourism and other sectors. Human capital is key to the sustainable development of any region and the Northern Cape boasts the newly established Sol Plaatje University and enjoys representation through technology stations of other universities including Unisa and the Vaal University of Technology. The province is also served by a well-established multi-campus Technical Education and Vocational Training College. Further investments in building the requisite skills and capacities to meet the demands of our province’s growth and development are critical. Provincial and local government organs in the Northern Cape underpin all the potential of the province, and are dedicated to ensuring a sound, safe and well-governed investment destination.
3 NORTHERN CAPE NORTHERN CAPE PROVINCE SOUTH AFRICA PROVINCE South Africa Gross Domestic Product Economic growth: 2011-2021 8 6 4 2 0 -2 -4 -6 -8 % ECONOMICS 130 bn Current prices Northern Cape 2011 2013 2015 2017 2019 2021 Economic growth annual % change 2.1% of national GDP National Total 2020-2021 10 year avg. Northern Cape 6.9% 1.2% National Total 4.9% 0.9% Sector composition Top 10 sectors (GVA) - R billions 2021 Mining of metal ores 28.50 Public administration and defence activities 11.45 Finance and insurance 8.37 Agriculture and hunting 8.34 Education 7.82 Health and social work 7.29 Other business activities 6.86 Wholesale and commission trade 5.18 Land and water transport 5.08 Post and telecommunication 4.13 All other smaller sectors 25.29 LABOUR MARKET Employment 302,000 number of jobs 2.1% of national employment Unemployment Jobs Primary 2021 share Created / lost since 2011 Agriculture 12.3% Mining 14.5% Secondary Manufacturing 4.1% Electricity 0.5% Construction 5.0% Tertiary Trade 17.6% Transport 2.2% Finance 9.3% Community 34.7% -5 820 427 4 430 Employment growth: 2011-2021 6 4 2 0 -2 -4 Northern Cape National Total -6 % 2011 2014 2017 2020 Employment growth Annual % change 27,3 33,6 Northern Cape National Total Informal employment 2021 - millions Northern Cape National Total Employees Informal % informal 0.30 0.03 8.4% 14.73 2.61 17.7% Northern Cape South Africa -4.4% -4.5% 2021 0.5% 0.7% 10-year avg Source: IHS Markit Regional eXplorer version 2257