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FDC PRESENTATION MCCI TRADE & INVESTMENT SEMINAR INVEST IN THE HEART OF SOUTH AFRICA. Presented by: Ikhraam Osman Acting CEO. BACKGROUND. The FDC is the official economic development, trade and investment agency for the Free State Province;
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FDC PRESENTATION MCCI TRADE & INVESTMENT SEMINAR INVEST IN THE HEART OF SOUTH AFRICA Presented by: Ikhraam Osman Acting CEO
BACKGROUND • The FDC is the official economic development, trade and investment agency for the Free State Province; • The agency focuses on four key activities in order to achieve growth and development for the province. • Enterprise Development - Financial - Non Financial • Property Management • Investment Promotion and Facilitation • Export Promotion and related Assistance.
FDC BUSINESS UNITS • Enterprise Development • Property Management • Investment and Export Promotion • Investment Projects Facilitation
ENTERPRISE DEVELOPMENT Financial Products • Co-operatives Development Fund • Integrated Sector Fund • Franchise Development Fund • Youth Fund • General Enterprise Development Fund • Bridging Finance
ENTERPRISE DEVELOPMENT NON- FINANCIAL SUPPORT • Training-Provision of knowledge and skills to FDC clients in order to reduce business failure. This is done in collaboration with other institutions. • Mentoring and Coaching-These services contribute to the sustainability and success of small business clients. • Turnaround Services-These services assist ailing FDC clients by strategic interventions.
PROPERTY MANAGEMENT • The FDC offers enterprises suitable premises at affordable rates • We offer the following incentives: • Subsidized rental rates; • Rental holidays of up to 3 months; • Special incentives and discounts for BEE companies or individuals • Support for large manufacturing investors • Overseeing some 1233 properties that we use to: • Facilitate commercial and industrial activity (over 400 factories); • Assist new investors with suitable premises; and • Facilitate SMME development
INVESTMENT PROJECTS FACILITATION • FDCServices to Investors include: • Packaging of investment opportunities • Assisting with securing of office and factory premises • Assistance with incentive applications • Providing advice on environmental impact assessments • Facilitation of finance through local institutions • Facilitation of joint ventures/equity partnerships through identification of local partners • Business retention and expansion
EXPORT PROMOTION SERVICES • FDC aims to increase the value of exports from the province by assisting exporters to gain access to foreign markets. • Export Assistance Service: • Trade missions to key overseas markets • Access to national government export incentive programs
EXPORT PROMOTION SERVICES • Providing insight into new markets by providing basic country and market data. • Exhibiting products at local and international trade exhibitions • Providing understanding of complex export issues through capacity building workshops • Opportunities through trade-lead information services • Network with other exporters. • Listing on FDC database of exporters
FDC OFFICES • Head office – Bloemfontein (051 400 0800) • Motheo district office – ThabaNchu (051 873 3901) • Thabo Mofutsanyana district office – Phuthaditjhaba (058 7140060) • FezileDabi district office - Sasolburg (016 976 8944) • Lejweleputswa district office – Welkom (057 357 5326) • Xhariep district office – Trompsburg (051 713 0342) • Industriqwa office – Harrismith (058 635 1112) • Botshabelo office – Botshabelo (051 534 1101)
FREE STATE KEY SECTORS Home to 26.8% of FS population Sectors: • Manufacturing (Petro- Chemicals-Sasol Chemicals) • Agriculture, • Mining, • Tourism & Real Estate Home to 23.2% of FS population Sectors: • Mining (primarily gold- Declining) • Agriculture (primarily maize and Sunflower) Home to 26.8% of FS population Sectors • Mining (sandstone), • Agriculture (Fruit & Flowers), • Eco-Tourism (Drakensburg, Maluti Mountains & Golden Gates – Eco-Tourism Hub) Home to 27.4% of FS population Sectors: • Wholesale retail & trade, • Agriculture , • Finance, • Hospitality, Real Estate & business services, • Transport & communication • Community & social services (Public Sector) Home to 5.2% of FS population Sectors: • Mining (diamond), • Eco-Tourism ( Xhariep Dam), • Agriculture • Renewable Energy (Xhariep Solar Hub)
SECTORAL CONTRIBUTION FREE STATE PROVINCIAL ECONOMY – 2011- SOURCE: Stats - SA
FREE STATE PROVINCE COMPETITIVENESS • Open to business trade and foreign investments; • Free State offers diverse and abundant natural splendour and a year-round temperate climate; • Excellent living conditions and medical services; • Superb recreational and cultural activities; • Good educational facilities pre-primary to tertiary; • Various tourism attractions and facilities; • Excellent sporting facilities; • Excellent value for money in terms of food prices, transport costs, school fees, property rental and ownership costs • We share in the most developed telecommunications networks in Africa. TARGETED SECTORS FOR FOREIGN DIRECT INVESTMENT • Farm machinery and equipment • Leather tanning and finishing • Gold jewellery and beneficiation • Floriculture • Petrochemicals • Pharmaceutical research and development
1. N8 CORRIDOR DEVELOPMENT N8 CORRIDOR PROJECTS N8 COMPLETED PROJECTS • Expansion of Bloemfontein Airport, • Upgrading of Free State Stadium • Development of Eden & Mandela Park Housing Development Projects in progress • N8 Gateway development • Infrastructure Upgrading • New 5 Star Hotel and a Conference Centre, • Revitalization of Thaba Nchu and Botshabelo Industrial Parks • Site for Proposed SEZ • Bio-Medical Park • Solar Generation Plants & SWH • Solar Panels Manufacturing, • Industrial, Commercial , Retail Estates and mixed housing Developments , • Telecommunications Infrastructure
2. FOOD PROCESSING PARK – HARRISMITH 2.5. Employment Opportunities • The feasibility report estimated that 626 permanent jobs will be created when the park is fully operational. 2.3. Feasibility Study Status • Feasibility study completed, • Required project investment value R 226 million. 2.2. Rationale • To develop Eastern Free State as an agro-industry hub to ensure that the full agricultural potential of the province is realized, • To ensure that the full potential and capability of Free State is realized through agricultural value addition initiatives as the feedstock required for agro-processing is already produced in the province, • This park is intended to complement and enhance existing players in baby food processing, sunflower processing and wheat and maize milling by national and local players. 2.1. Brief Description. The Harrismith Food Processing Park is intended to host a number of companies in the food processing sector. This park would be an integrated food processing park providing for logistics service providers, warehousing, cold storage and manufacturing facilities to enhance production efficiencies. The value of total investment over a 5 year period is estimated at R 1.5 Billion. 2.4. Budget • Project facilitation Budget is R30 million over 3 years. 2.6. Investors role • To provide for plant and equipment required to process feedstock into final products, • To set-up and operate the plant and built its own production facilities from scratch or to lease factory buildings from food processing park operator. 2.7. Project Location • Industriqwa outside Harrismith, Maluti-A-Phofung Local Municipality, Thabo Mofutsanyana District Municipality, Free State Province, South Africa. It is 8 kilometers from Harrismith and the N3 National Road.
3. VEHICLE DISTRIBUTION CENTRE – HARRISMITH 3.5. Employment Opportunities 3.4. Budget • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments have been conducted. • Project facilitation Budget is R 3,5m 3.2. Rationale • Obtain duty free status for VDC for newly imported luxury vehicles until they are sold and to position Harrismith as the second inland vehicle distribution hub. • To leverage of Free State strategic location as the most centrally located province bordering with South Africa’s other six provinces and the Mountain Kingdom of Lesotho. All major national roads • ( N1, N3, N5, N6 and N8 linking the major markets ( Gauteng) and major ports ( Durban, Cape Town and Port Elizabeth (Coega) and high density freight rail traverses through Free State. This present a significant opportunity to position Free State as a warehousing and inland logistics consolidation hub. 3.1. Project Description This project is intended to position Harrismith as a Vehicle Distribution Centre. (VDC).Studies by logistics integration service providers have indicated that FS has the best potential to be a warehousing and logistics centre due to its proximity to Gauteng market and links through N3 to Durban Port and Coega Port through N1 and N6. 3.3. Feasibility Study Status • Feasibility study completed, • Required project investment value R 250 million. 3.6. Investors role • NAAMSA and individual vehicle manufacturers to locate their inland distribution networks in Harrismith • To set-up and operate or to lease warehousing and temporary storage bays and offices from the VDC operator. 3.7. Project Location • Industriqwa is outside Harrismith, Maluti-A-Phofung Local Municipality, Thabo Mofutsanyana District Municipality. It is 8 kilometers from Harrismith and the N3 National Road.
4. PARTS & ACCESSORIES CENTRE – HARRISMITH 4.5. Employment Opportunities 4.4. Budget • Project facilitation Budget is R250,000 • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments had been conducted. 4.2. Rationale • To attract automobile parts manufacturers and importers to set-up and operate automotive parts and distribution centre in Harrismith, • To leverage of Free State strategic location as the most centrally located province which borders with South Africa’s other six provinces and the Mountain Kingdom of Lesotho and all major national roads • ( N1, N3, N5, N6 and N8 linking the major markets ( Gauteng) and major ports ( Durban, Cape Town and Port Elizabeth (Coega) and high density freight rail traverses through Free State. This present a significant opportunity to position Free State as a warehousing and inland logistics consolidation hub. 4.1. Project Description This project is intended to position Harrismith as a Vehicle Parts & Accessories Distribution Centre to supply the after sales market. Studies by logistics integration service providers have indicated that FS has the best potential to be a warehousing and logistics centre due to its proximity to the Gauteng market and links through N3 to Durban Port and Coega Port through N1 and N6. 4.3. Feasibility Study Status • Feasibility study completed, • Required project investment value R 120 million. 4.6. Investors role • NAAMSA and individual vehicle manufacturers to locate their inland distribution networks in Harrismith • To set-up and operate or to lease warehousing and temporary storage bays and offices from the VDC operator. 4.7. Project Location • Industriqwa outside Harrismith, Maluti-A-Phofung Local Municipality, Thabo Mofutsanyana District Municipality, Free State Province, South Africa. It is 8 kilometers from Harrismith and the N3 National Road.
5. GREEN ECONOMY – XHARIEP SOLAR PARK 5.4. Budget • Project facilitation Budget is R4m 5.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments had been conducted. 5.2. Rationale • To promote the deployment of clean energy technologies • To harness one of South Africa’s excellent solar resources and to establish Free State as base for the deployment of renewable energy technologies 5.1. Project Description This project is intended to harness the excellent solar radiation in Southern Free State that is suitable for the deployment of solar electricity generation technologies. The plan is to establish a 250MW solar park in Xhariep District. This is intended to be an integrated solar hub comprising of solar energy generation plants, R&D Centre and technology demonstration units and LED lights components manufacturing . 5.3. Feasibility Study Status • Not completed • Required project investment value is estimated at R 1,8 Billion- R 2,2 Billion 5.6. Investors role • To establish and operate a 250 MW solar farm • ( Xhariep) with a phased expansion of up to 1GW Solar Hub. to harness available solar resources • To secure an independent power producer license and power purchase agreement with Eskom or local electricity distributer. 5.7. Project Location • Xhariep District, Kopanong and Letsemeng ,
6. N8 CORRIDOR – MANGAUNG BIO-MEDICAL PARK 6.4. Budget • Project facilitation Budget is R4 million, 6.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments have been conducted. 6.2. Rationale • To fast-track registered medical and biotechnology patents into commercial medical solutions, • To incubate new bio-technology and pharmaceutical companies, • To ensure sustainable businesses and jobs in the biotechnology / medical sector in Free State 6.1. Project Description The Mangaung Bio-Medical Park will be a world class- bio-medical facility designed to host medical biotechnology research companies, pharmaceutical companies and the University of Free State Bio-technology and medical research team migrating research patents into commercial medical solutions. 6.3. Feasibility Study Status • Not completed • Required project investment value is estimated at R 400 million. 6.6. Investors role • To attract companies in the bio-technology, pharmaceuticals and chemicals to locate in park. • Opportunity will be made available for tenants to lease business premises from the park operator. 6.7. Project Location • Bloemfontein, Mangaung Metropolitan Municipality.
7. ORGANIC FERTILIZER 7.4. Budget • Project facilitation Budget is R250.000 7.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments had been conducted. The factory is expected to employ 100 people when fully operational. 7.2. Rationale To produce a carbon based organic fertiliser that improves plant roots nutrient absorption rate resulting in improved quality of produce, To contribute to food securing by increasing yields per hectare of agricultural commodities where organic fertiliser is applied. 7.1. Project Description To acquire a stake in a carbon based organic fertiliser production plant in Harrismith Industriqwa to produce 120 tons of granular and 12 million litres of liquid fertilisers per annum. 7.3. Feasibility Study Status • Pilot feasibility study completed • Required project investment value is estimated at R 435 million. 7.6. Investors role • To take stake or equity in existing operations 7.7. Project Location • Thabo Mofutsanyana, Maluti-A-Phofung, Harrismith
8. INTEGRATED BEEF PROJECT 8.4. Budget • Project facilitation Budget is R300.000 8.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments had been conducted. The project is expected to employ 300 people when fully operational. 8.2. Rationale To bring black players into the mainstream beef value chain, To leverage Rural Development and Land Affairs Land Capitalisation Programme and Agricultures Comprehensive Agricultural Support Programme, To increase value addition in the red meat industry in Free State 8.1. Project Description To establish an integrated beef production cluster comprising of fodder production, feed mill, feedlot, and European Union Certified export abattoir .The project will comprise of slaughtering floor, meat processing plant, deboning plant , by products plant and cold storage facilities, a workshop and a cold storage transport fleet. 8.3. Feasibility Study Status • Conceptual Notes Developed • Required project investment value R 200 million. 8.6. Investors role • To invest in value chain operations within the cluster. 8.7. Project Location • Motheo , Bloemfontein, Zastron, Marquard
EXPORT OPPORTUNITIES Agricultural Products • Maize • Wheat • Sorghum • Potatoes • Sunflower • Red Meat • Vegetables • Dry beans • Fruit • Peanuts • Wool • Diary • Cherries • Mining Products • Gold • Coal • Diamond • Clay • Limestone • Salt • Gypsum • Granite • Sandstone aggregates • Other minerals
EXPORT OPPORTUNITIES • Petrochemical Products • Fuels • Waxes • Synthetic fuel • Liquid hydro carbons • Agro Processing • Farm machinery and equipment • Leather tanning and finishing • Floriculture • Other • High Oleric Oil • Fruit Juice • Health Products • Range of manufactured products • Medical instruments
FREE STATE EXPORTS • Main Foreign Export from the Free State • Mineral Products • Plastics • Chemical Products • Vehicle and transport equipment • Agricultural equipment • Semi-precious stones, metals & articles thereof, imitation jewelry • Machinery, electrical equipment and mechanical appliances • Base metals • Vegetable products • Wood