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Transcript of SOUTH AFRICAN ECONOMY - ie.enterprisesg.gov.sg/media/IE Singapore/Files/ASBF2016... · SOUTH...

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SOUTH AFRICAN ECONOMY

• South Africa positioned as a manufacturing centre of excellence

• Diversified Industrial sectors

• Open economy

• Sound business case for investment and profit

• Gateway to Africa and markets of more than 200 Million consumers

• Africa is the next big story after China and India

Source: SARB

YEAR 1994 THEN 2004 IN 2015

GDP (billions) R 482

US$ 60

R 1 374

US$ 171

R 3 990

US$ 312.94

Merchandise exports

(billions)

R 69, 8

US$ 8.7

R 281,8

US$ 35.2

R1 041

US$ 81.65

GDP Growth 3,2% 4,6% 1,3 %

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• SA’s vision for inclusive growth & development – decent jobs and

equity;

• NDP, NGP and IPAP - promoting a globally competitive economy that

produces and trades with the rest of the world in innovative & value

added products & services;

• Create 5 million jobs by 2020;

• Beneficiate of own minerals and natural resources;

• Improve physical industrial infrastructure;

• Regionally spread industrial development.

Strategic Context

Integrated into the mainstream economy, in terms of value chains

and localisation initiatives including skills, technology,

tooling and supplier development initiatives

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SONA 2015

Resolving the Energy challenge

Revitalizing Agriculture & the

Agro-processing value chain

Advancing Beneficiation/adding value to our mineral wealth

More effective implementation of a higher impact Industrial Policy Action Plan

Encouraging private sector Investment

Moderating Workplace conflict

Unlocking the potential of SMME’s, Cooperatives and Township & Rural

enterprises

State reform and boosting the role of state-owned companies, ICT

infrastructure/broadband roll out, water, sanitation and transport infrastructure

Operation Phakisa aimed at growing the ocean economy & other sectors

Government Priorities

Government Priorities to stimulate growth

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Priority Sectors For FDI

5

• Advanced Manufacturing

• Nanotechnology

• Metals

• Mining & Beneficiation

• Biofuels

• Agribusiness

• Automotives & Components

• Capital Equipment

• Precision engineering

• Aerospace

• Film production

• Tourism

• Oil & Gas

• Boat Building

• ICT and electronics

• BPO (Business Processing &

Outsourcing) and Call Centres

• Chemicals & Biochemicals

• Plastics & Composites

• (Bio) Pharmaceuticals & Medical

Devices

• Leather and footwear

• Forestry products & Furniture

• Energy and Renewables

• Infrastructure Development

• Waste Management

• Energy Efficiency & Cleaner

Technology

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Special Economic Zones (SEZS)

• Government has identified Special Economic Zones as a mechanism

that will contribute towards the realisation of its economic growth and

development goals;

• And is committed to support and facilitate the designation, regulation

and development of Special Economic Zones in South Africa;

• Special Economic Zones will be designated in areas to promote

targeted economic activities, supported through special arrangements;

• and support systems including incentives, business support services,

streamlined approval processes and infrastructure.

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Proposed SEZS In South Africa

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Incentive Licensee Operator Investor

1. Customs Duties & VAT (in CCA) √ √ √

2. Employment Incentive √ √ √

3. Building Allowance* √ √

4. 15% Corporate Tax* √

5. 12(i) Additional Benefits (points & %) √

6. SEZ Fund for CAPEX (Infrastructure) √ √

* Provided that the Minister of Finance has agreed to allow this benefit to the

SEZ, and that the company is involved in activities that have not been

excluded.

7. SEZ Management support, infrastructure, security, OSS

Summary: Incentives

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AN OIL & GAS SERVICES COMPLEX IN

THE PORT OF SALDANHA BAY

THIS DOCUMENT IS THE COPYRIGHT OF THE SALDANHA BAY IDZ LICENCING SOCLTD

Images sourced courtesy of DCD Marine & Dormac

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The Saldanha Bay Industrial Development Zone has been established as South Africa’s first sector‐specific zone in support of the Upstream Oil &

Gas Services and Marine Repair & Engineering Sector.

Vision of the Saldanha Bay IDZ

To utilise the existing Industrial Development Zone enabling legislation to act as a catalyst tocreate and sustain economic development and facilitate job creation by way of industrialinvestment and efficient development in the Saldanha Bay Region, through the establishment ofan Upstream Oil & Gas Services Complex

Value Proposition

The SBIDZ is a competitive and highly efficient Cluster that is a leading, investor‐responsivelocation for Upstream Oil & Gas and Marine Repair & Fabrication activities servicing the Africancontinent.

4

Vision and Value Proposition

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The objectives of the SBIDZ shall be to create jobs and sustainable economic development

by, including but not limited to:

1. Promoting, managing and marketing the Saldanha Bay Industrial Development Zone;

2. Providing internal infrastructure to support investors in the Saldanha Bay Industrial

Development Zone area;

3. Facilitating the ease of doing business in the Saldanha Bay Industrial Development Zone

area; and

4. Acquiring and leasing land.

5

Objectives of the SBIDZ

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FOCUS

• Saldanha Bay IDZ is the only sector‐specific IDZ in South Africa, allowing it the ability to focus its resources to

understand the industry, its challenges and develop solutions to remove barriers & address issues while

simultaneously having a positive impact on regional economic development and job creation.

EASE OF DOING BUSINESS & CCA

• SEZ Legislation allows for the SBIDZ to develop and implement an Ease of Doing Business model for Investors

that includes relevant public & private sector role players, including the development of a Customs Control

Area (CCA) or Freeport.

• Custom Control Area (CCA) means no VAT or duties on goods landed in the zone, with a focus on operational

handling efficiencies and turnaround time.

LOCATION , SIZE & SPACE

• Relative proximity to the West and East African markets.

• Able to offer a contiguous development across back‐of‐port land, Transnet land and the terminals means

seamless transfer and movement of goods in the Complex.

• Relatively greenfield and largest & deepest port in Sub‐Saharan Africa.

Value Proposition

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Source: Operation Phakisa MTM Lab Final Report Aug 2014

Port of Saldanha Bay ‐ Current

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Port of Saldanha Bay ‐ Future

Source: Operation Phakisa MTM Lab Final Report Aug 2014

OSB

Berth205

Jetty at Mossgas

LPG and LNG

Import Facilities

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Serviced Land Available

• Zoning and Environmental Impact Assessments have been completed – ready for development

• Approximately 125ha of land is already serviced with water, electricity, and road access

Topside Infrastructure (Warehouses, Manufacturing Facilities)

• Topside infrastructure is provided on a bespoke basis to each investor

Leases

• Leasing to investors is available on two options: Project Leasing or Long‐term Leases

• Project Leasing Facility – short‐term lease for projects on hard lay‐down surface i.e. 3 months, 6 months etc.

• Long‐term leases available for 3 yrs; 5yrs; 10yrs; 15yrs and maximum of 25 yrs with option to renew for 25 yrs

• Lease rates are subsidised and include all basic services

• Lease rates are calculated based on the length of the lease; footprint required; and proximity to quayside

Offering to Investors

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Develop an Oil & Gas and Marine Repair Industry, within and

adjacent to the Port of Saldanha, and in so doing, offer a

comprehensive value proposition to the Offshore Oil & Gas Industry

with a view to cater for the seamless delivery of services to the

Industry.

• Establish an Oil & Gas Services Complex within and adjacent to the Port of Saldanha Bay;

• Ensure that Complex will offer a full‐house service to the offshore Oil and Gas industry;

• Use the enabling legislation for the creation of a single contiguous Customs Controlled Area, thereby

providing a ‘free‐port’ equivalent; and

• Resolve some key challenges and constraints facing the offshore Oil and Gas industry in Saldanha Bay

through joint planning, marketing, and coordination of work.

TNPA‐SBIDZ LICO MOU, 12 September 2014

Shared Vision Between TNPA and SBIDZ

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16

Project Name

Description Opportunity Project ModelConcession

Timeline*Progress to date

Offshore Services Base

(OSB)

Existing General MaintenanceQuay:• Berth Length:

280m (existing)• Berth Draft:

8.5m (existing)20 ha Back‐of‐Quay land option

TerminalOperator Operate & Transfer 20 years

• Contractor Appointed for repair works to General MaintenanceQuay

• RFP in the market– closing 12 Sept2016

Rig Repair Berth (Berth

205)

New‐build:• Berth Length: 380m• Berth Draft: min.20m

Construction & TerminalOperator (development of a dedicated rig/ship

repairbase)

Build‐operate‐transfer Model

Proposed min.25 years

• Transaction Advisors appointed;

• Expression of Interest Q22016

Jetty at Mossgas (Vessel

Repair/New Build)

New‐build:• Berth Length: 500m• Berth Draft: 8.5m – 12m

Construction & Terminal Operator (development of a

dedicated vessel and equipment servicing and fabricationquay)

Build‐operate‐transfer Model

Proposed min. 25 years

• Transaction Advisors appointed;

• Expression of Interest Q22016

TNPA Infrastructure Concessions

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• Operation Phakisa is an initiative of the SouthAfrican

government, designed to fast track the

implementation of solutions on critical development

issues. One of the key components of Operation

Phakisa is an “oceans economy” strategy.

• Several initiatives within the marine transport and

manufacturing laboratory of Phakisa are under

consideration.

• Initiative 2 aims in particular at providing a marine

services cluster to serve the oil and gas activity off

the coast of WestAfrica and SouthAfrica in the port

of Saldanha.

• Initiative 2 relates to the port of Saldanha and was

originally conceived around the following:

– Establishment of rig repair activity;

– Establishment of ship repair activity; and

– Establishment of an Offshore Supply Base

facility (OSSB) in the Port of Saldanha.

Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I - Context - Operation Phakisa

• In 2014 Transnet reached an investment decision for the construction of a quay with a view to use it as an

Offshore Supply Base at the Port of Saldanha.

• The quay for the Facility is currently under construction and is expected to be completed in July 2016.

• The quay is 294 m long and presents a draft of CD -6.5m. Refer to Annex B to the RFP where additional

information can be found on the proposed Project Site.

The quay

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Provide services in line with market needs

Training – job creation Local partnerships

Transfer of skills –Local empowerment

Bring skills Expand supply chain

Socio-economic

TechnicalCommercialValue-added

services

Financially sustainable

Fixed revenues Profitsharing

Amortization of capital expenditure

2

3

Operation Phakisa

Concession of a SupplyBase

Facility

Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I - General principles for the Project

• The appropriate outlet for the quay has been investigated and developed with a view to extend a concession to a

Facility Operator (FO) to provide maritime services primarily for the oil & gas industry (the Project) but taking into

account the changed context for the oil and gas industry since the start of Operation Phakisa in2014.

• Given the challenging market conditions, it was decided that the Quay would be made available for a supply base

facility providing generalist and specialist services to vessels, rigs and offshore platforms traversing and/or operating

off the coast of Africa (theFacility).

• The recommended project structure also took the following objectives into account:

1. Operation Phakisa: contribute to economic growth and local empowerment through skill transfer, job creation and

stimulation of a wider local supply chain.

2. Commercial attractiveness: attract an experienced and reputable operator who can anchor generalist and specialist

offerings so as to support first class services primarily to the oil and gas industry.

3. Financial sustainability: optimise use of the Facility and support revenues generated for the FO.

1

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Authorised services

• The Project scope of services (the Services) has been designed to respond to market needs while supporting the wider

objectives of Operation Phakisa – in particular the following:

– Bring in specialist skills and support financial viability for the Project

– Support commercial flexibility through an appropriate tariff structure (ramp-up fee, dual fixed/variable structure)

– Flexibility of scope of services to support commercial viability (Services)

1. Anchor Services: generalist services to be delivered within a set timeframe (e.g. bunkering, water, offloading

services), and which can target a variety of industries as the case may be;

2. Core Services: specialist oil and gas services to be delivered in line with market needs and to be provided in

response to market demand e.g. pipe yard and handling of oil waste; and

3. Authorised Services : as elected or proposed by Bidders to improve potential revenues (e.g. ship repair

using a floating dock).

Anchor services

CoreO&G

ServicesTransnet delivering Phakisa

Socio-economic developmentFinancially sustainable 13

2 Commercially viable to FO

Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I - General principles for structuring the Scope of Services

Seismic surveys Exploration Pre-production Production

Local empowerment, job creation, skills transfer, etc.

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Nature Category Timing for Availability of Services to the market Within the Project Site (Quay and Back of Quay)

Compulsory

AnchorServices

Commencement of the Operations Period under the Facility OperatorAgreement

Note: bidders to propose the Construction Works Programme in respect of the Facility Infrastructure and the Facility Equipment in

their Bid Response. The periods specified in the Construction Works Programme and the Facility Operator is required to commence the provision of at least the Anchor Services at the commencement of

the Operations Period.

Material loading & offloading facilities

Storage facilities (including reefer points);

Ancillary bunkering, fuel, oil and lubricants refill services

Water refill

Offices facilities

Core Services

As required by the market (*) or before if elected by the Facility Operator

Note: investment to respond to market demand or earlier

Handling of oil waste, pipe yard including coating facilities, warehousing and facility yard management

cleaning, maintenance and preservation of off-shore oil and gas related materials and equipment

Noncompulsory

AuthorisedServices

At Operations discretion to the extend in line with Bid Response and Facility Operator Agreement and notified to TNPA

Note: investment for the Authorised Services to be undertaken atbiddersdiscretion.

Authorised = Approved Services selected by the Bidders and the Proposed Services approved by TNPA

ApprovedServicesMaintenance & repair services to vessels including the

provision of a floating dock, boat building, accommodation - customs and clearing services

Proposed ServicesAs proposed by Bidders in their Bid Responses and be

approved by TNPA as part of evaluation process,

Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I – Scope of Services

Compulsory & to be made available on fixed timeline (as per bid) -

Used for qualificationCompulsory & to be made available on fixed timeline (as per bid)

– NOT used for qualification

Compulsory & to be made available as per market demand –

Used qualification

• The Services can be broken down according to whether a Service is (1) compulsory or not, (2) to be made available

according to a fixed timeline (as per the Bid Response) or in response to market demand, and (3) whether it relates to

a critical skill used for qualification.

• All Services can be rendered on land owned by TNPA as part of the Project Site and made available for the Project as

part of the Concession.

NOT compulsory & to be made available as per market demand

– NOT used for qualification

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Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I - Envisaged Project structure

ConcessionFee

Facility Operator (FO)

Constructs, operates, maintains the Supply Base Facility and the Project site (incl. roads)

Provides the Services

Complies with Port Act and Rules, law, including environmental law, operating conditions, Operational

Plan, and performance requirements

Client 1

Client 2

Service agreements

Client n

Commercialtariffs

20-year Concession

Facility Operator Agreement

• The Project is structured as a 20-year Concession of the Project Site, including the quay and the back of quay land, to

a Facility Operator (FO) to operate the Supply Base Facility according to an agreed scope of Service on a multi-

purpose basis (Anchor and Proposed Services), with a primary focus on ultimately servicing the oil and gas industry

(the Core Services).

• The general principle is that the FO operates commercially (commercial tariffs to its end customers, ability to

subcontract) with Transnet granting exclusive right to the Project Site and general access to Port Infrastructure and

access roads against the payment of a Concession Fee.

TRANSNET

Owns the Supply Base Facility

Grants exclusive rights to the Project Site

Grant access to Port Infrastructure

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Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I - Timeline – key milestones

The Concession is 20-years from the Effective Date until the earlier of the Termination Date or the Expiry Date (the

ConcessionPeriod.

The Effective Date occurs when all Suspensive Conditions have to be fulfilled, within a maximum period of 6

months post SignatureDate.

• Suspensive Conditions include:

– All necessary consent for Construction Work and the Operations and Maintenance of theFacilities;

– Financial close with respect of the Finance Agreements have been achieved;

– Key contractors agreement are signed;

– Construction Agreement are signed and have becomeunconditional;

– The Construction Agreement, the Construction Works Programme, the Detailed Design andD&C

Specifications have been approved by the Independent Certifier; and

– The insurance due diligence is completed and a letter of undertaking by an insurance broker hasbeen

received.

The Concession Period comprises of the Construction Period and the Operation Period.

The Construction Period shall commence on the Effective Date and terminate at the issuance of the Completion

Certificate issued by the Independent Certifier (Construction Completion).

The Construction Completion refers to the Anchor Services only, given the Core Services are to be undertaken

according to market demand and shall occur before or at the Target Completion Date, as specified in the

Construction Work Programme at SignatureDate.

• The following slide is providing an illustration of the Project timeline.

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Indicativedate Note

Release of RFP 29th April 2016

Briefing Session 28th - 29th June 2016

Bid Date [12]th September 2016 as indicated in RFP

Preferred Bidder Date Q4 2016 as indicated in RFP As indicated in RFP

Signing Date Within [4] months of declaration of Preferred Bidder Target [31st January – 28th February]

Indicative target date

Effective Date Within [6] months of Signature Date Indicative target date

Start of Concession [July 2017] Indicative maximum target date

End of Concession [30th June 2037] Indicative maximum target date

4-months

End date for the completion of CPsStarting point for the 20-year Concession Period

6-months post Signature Date

Start of Concession period20-years

Phakisa - Initiative 2 - Saldanha – Supply Base Facility

I - Indicative dates

30/09/2016 Q1/2017 Q2-Q3/2017

Preferred Bidder Date Signature Date EffectiveDate

Q3-Q4/2017

30/06/2037

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• Initiative 2 of Operation Phakisa aims at forming a

cluster of services in the port of Saldanha to support

the oil and gas industry off the coast of South Africa

and the West coast of Africa where existing andnew

production is expected to take place

• Within the port of Saldanha, ship and rig repair

activities can currently be carried out at an existing

general maintenance quay, multi-purpose quay and

alongside an offshore fabrication yard (Mossgas

Quay). However, the facilities are not suitable for

providing all the required services for ships and rigs

operating within the offshore oil and gas market.

• It was originally envisaged that the construction and

operation of the following facilities (the “Facilities”)

would be offered to a private operator under a

concession arrangement:

• Rig repair facility: Berth 205 and superstructure

related investments

Operation Phakisa

Context – Saldanha Bay

• Ship repair facility: Mossgas Quay Capex (*) Berth Length Draft

Berth 205 / Rig Repair ZAR 3.5 billion 380 meters -21.0m CD

Mossgas Jetty / Ship repair ZAR 2.3 billion 1,000 meters -8.0m CD

Superstructure and related investments

(Operation Phakisa Estimate)

ZAR 7.4 billion

(*) indicative

estimates

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• Initiative 7 envisages the development of a ship

repair facility that would provide a solution for the

following niche markets:

– Cargo vessels calling at Richards Bay;

– Cargo vessels calling at Durban (excess demand);

and

– Offshore supply vessels deployed on East-African

offshore oil and gas fields.

• A site in the Causarina Bay area (outlined ingreen)

was previously identified as the site for the

development of the ship repair facilities however,

such site has proved a challenging site due to

environmental sensitivities as well as poor founding

conditions.

• An alternative site for this Project has thereforebeen

identified at the existing repair quay.

Operation Phakisa

Context – Richards Bay

New site identifiedfor shiprepairs

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• The repair quay length at the

new site is 300m and has a

depth of -8m CD.

• The repair quay has an area of

approximately 9500m2 and

includes back of quay land of

approximately 5700m2 (both

shaded in red).

• The estimated PSP Investment

is R900 million.

• A floating dock operation maybe

accessed from the repair quay,

however the deepening of the

berth may be required to

accommodate a floating dry

dock.

Operation Phakisa

Context – Richards Bay

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• Initiative 8 envisages the development of boat/ship building facilities within the Port of East London with a focus on

potential niche markets of tug boats and navy vessels.

• The two available facilities include the existing dry dock and slipway.

• TNPA is currently undertaking repair work within the Port of East London under Phakisa Initiative 5, including:

– Upgrading of the electrical works

– Upgrading & refurbishment of infrastructure and equipment:

Refurbishment of graving dock which investment amounts to R32.5m over next 3 years;

Refurbishment of dry-dock cranes;

Replacement of crane rails;

Refurbishment of dry-dock gate;

Replacement of switchgear;

Refurbishment of pumps; and

Refurbishment of slipway area

• The estimated Investment by the PSP

is R515 million.

Operation Phakisa

Context – East London

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• Over the course of 2015, Transnet and its

advisory team undertook market analysis and

engaged with local and international players in

the boat building, ship repair and marine

services sector to test the appetite for the

proposed facilities.

• Local and international players in the maritime

services as well as the financial industry were

approached to assess their appetite for the

facilities in East London.

• The results of the market sounding show that

East London is used as an overflow facility for

Durban-related demand; however:

– Due to the absence of adequate services

and facilities, the docks in East Londonare

not often used;

– East London lacks the supporting services

and facilities to ensure efficient boat building;

• One of the main purposes of the EOI is to

complement the market analysis undertaken by

Transnet and its advisory team.

Operation Phakisa

Context – East London

• The EOI aims in particular at obtaining feedback from the Respondents on the commercial potential at each

of the ports and in respect of each of the potential boat building and ship repair facilities, the proposed

structure of the facilities, as well as the most suitable technicalsolutions.

Envisaged facilities in the port of East London

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Manufacturing Investment Cluster

PROGRAMME PURPOSE TARGET OFFERING

EIP: Aquaculture

Development and

Enhancement

Programme

Investment in the

aquaculture sector

SA entities involved in Fish hatcheries and fish farms (primary aquaculture), processing and preserving of aquaculture fish (secondary aquaculture), service activities to operators of hatcheries and fish farms (ancillary aquaculture)

20 - 45% grant for investment in land,

and buildings , machinery and

equipment , commercial vehicles and

work boats and bulk infrastructure

Automotive

Investment Scheme

(AIS )

Investment in light

motor vehicles, and

components

manufacturing.

Motor vehicle manufacturers

producing 50,000 units per

plant within 3 years

•Component manufacturers.

20-30% grant for qualifying

investment in machinery &

equipment and buildings.

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Manufacturing Investment Cluster

PROGRAMME PURPOSE TARGET OFFERING

People-carrier

automotive

investment Scheme

(P-AIS )

Investment in people-

carrier vehicles and

components

manufacturing.

People carrier manufacturers /

assemblers

•Component manufacturers.

20-30% grant for qualifying

investment in machinery &

equipment and buildings.

12I (Investment and

training allowance)

To promote industrial

upgrading and new

investment in

manufacturing

Medium to large manufacturers

with investment between R30m

and R1.5bn

• Training allowance: max R36 000 per

person

• Max 55% of qualifying investment

costs in machinery & equipment

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Competitiveness Investment Cluster

PROGRAMME PURPOSE TARGET OFFERING

Manufacturing Competitiveness

Enhancement Programme

(MCEP)

Improve

Manufacturing

Competitiveness

South African

Manufacturers and Services

Supporting Manufacturing

Cost sharing grant for Capital

investment;

Resource efficiency

improvement;

Enterprise-level competitiveness

improvement;

Feasibility studies;

Cluster competitiveness

improvement;

Pre- and post-dispatch working

capital facility

Export Marketing and Investment

Assistance (EMIA )

To develop export

market for SA goods

and services and

recruit FDI

Export ready manufacturers Cost sharing grant for exhibition

costs, marketing material &

research in foreign markets

Capital Projects Feasibility

Programme

Promote the export

of South African

capital goods and

services

Capital goods sectors and

consulting engineers

Cost sharing grant (max 55%) for

feasibility study costs

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Services Investment Cluster

PROGRAMME PURPOSE TARGET OFFERING

BPS (Business

Process Services)

Incentive

Encourage the creation of

employment opportunities from

the offshore market

Enterprises offering

Business Process Services

to the offshore market

A baseline incentive which

offers a 3-year operational

expenditure on actual jobs

created

A graduated bonus incentive

which is offered for greater job

creation paid once in the year

in which the bonus level is first

achieved

Film & TV

Production

To grow the film industry to

create jobs and to transfer

skills

Local and foreign film

producers

20% of Qualifying South African

Production Expenditure

(QSAPE)

25-35% of Qualifying South

African Production Expenditure

for local films

Up to 50% for the first R6

million of the Qualifying South

African Production Expenditure

(QSAPE) and 25% thereafter

for South African Emerging

Black Filmmakers

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Broadening Participation Cluster

PROGRAMME PURPOSE TARGET OFFERING

Black Business

Supplier

Development

Programme (BBSDP)

Broader participation of

black-owned SMMEs

through provision of

business development

services

• Majority black owned

entities

• R250k to R35m

turnover

• 1 year trading

• 80:20 cost sharing grant

for business development

services

• 50:50 cost sharing grant

for tools, machinery and

equipment

Cooperative

Incentive Scheme

(CIS)

Broader participation

by promoting the

development of

cooperatives

• Registered co-

operative

• Operate in the

emerging sector

• Manufacturing, retail

& services

100% grant for machinery,

equipment & business

development services

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Infrastructure Investment Cluster

PROGRAMME PURPOSE TARGET OFFERING

Critical Infrastructure

Programme (CIP)

Leverage strategic

investment projects

(greenfields and

brownfields) by

financially supporting

infrastructure critical to

such projects

•Private investors/

companies

•South African

Municipalities

70:30 cost-sharing grant

for qualifying infrastructure

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INVESTING IN SOUTH AFRICA

Coega IDZ

East London IDZ

Richards Bay IDZ

OR Tambo International Airport (licensed)

Dube trade Port IDZ

Saldanha Bay IDZ

Contact:

Letta Kaseke

Assistant Director: Investment

Information

Tel: +27 12 394 5935

Email: [email protected]

REASONS TO INVEST IN SOUTH AFRICA – WORLD COMPETITIVENESS RANKINGS 2016

# 1 - Strength of auditing and reporting standards

#2 – Regulation of securities exchange

#3 – Protection of minority shareholders’ interests

#3 – Efficacy of corporate boards

#1 – Financing through local equity market

#6 – Availability of financial services

#8 – Soundness of Banks

#14 - Strength of investor protection

#14 – Quality of air transport infrastructure

#73 Overall ranking out of 189 countries and

#2 in Ease of doing business among BRICS countries in 2016

Top Investors

Trade and Investment South Africa (TISA) is the National investment promotion agency of South Africa offering a one-stop-shop approach to investing in South Africa

2014 UNCTAD winner for excellence in promoting Foreign Direct investment (FDI) projects to advance sustainable development

South Africa was ranked third in the world for investment in clean energy, according to Climatscope 2014 report released by Bloomberg New Energy finance

SA was voted overall winner for Africa by the Financial Times for the best destination for 2013 and 2014

In May 2013, AIM award for facilitating the second-best investment project (pharmaceutical sector)

2014 – Winner at AIM for sustainable development