Presentation overview
• Overview of Wesgro
• The Western Cape Economy
• Trade and Investment between Western Cape & Vietnam
• Questions and Answers
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Wesgro business structure• Established by Law:
– Western Cape Investment and Trade Promotion Law Act 3 of 1996
– Western Cape Investment and Trade Promotion Agency Amendment Act, 2013
• Compliance in terms of Treasury Regulations/ PFMA/ MFMA
• Reports to:
– MEC for Agriculture, Economic Development and Tourism - MEC Winde
– Office of the Mayor – Lance Greyling
• Financed by:– Western Cape Government
– Department of Economic Development and Tourism
- Department of Agriculture– City of Cape Town
Item Source Number
Population Stats SA – Mid-2014 Estimate 54 Million WC: 5.3 Million
Real GDP (2014) Stats SA ZAR 3trn WC: ZAR 299bn (2013)
Inflation (CPI) Statistics SA – March 2015 4.0%
Prime Rate South African Reserve Bank – May 15th 2015 9.25%
Literacy Rate (ages 15+) Human Development Report 2013 93%
Company Tax SARS - 2014/15 28%
Unemployment Statistics SA – 4th Quarter 2014 24.3%
VAT SARS - 2014/15 14%
Inequality (Gini Index) Human Development Report 2014 0.658 (118th)
South Africa by numbers
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Western Cape infrastructure & connectivity
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• The province boasts 3 export-oriented ports • Cape Town is a prominent stop on some of the
world’s major shipping routes • Sophisticated road infrastructure linking Cape
Town to other major South Africa centres and beyond
• The province has world class IT infrastructure linked to the world via submarine cables and satellite
• Cape Town airport has direct international flights to 13 destinations
The Western Cape as an attractive business destination
• Strategic position as a springboard into Africa – access to Southern African Customs Union (SACU) and the Southern African
Development Community (SADC), soon to be AFTZ
• The City of Cape Town first city introduce incentives for investors in Atlantis Industrial Area- include an electricity tariff subsidy and
exemptions from building plan scrutiny fees, land use application fees and fast-tracking of Environmental Impact Assessments.
• Cape Town airport the 2nd busiest airport in South Africa & 3rd busiest in Africa.
• Cape Town is the 2nd largest financial centre in the country.
• 4 Universities and 2 Business Schools (UCT 1st in Africa & UCT-GSB: Best in Africa); UCT’s MBA is ranked 60th globally by Financial
Times.
• 2014 World Design Capital was Cape Town
• Cape Town is considered one of the top 10 film production centres in the World
• Saldanha Bay IDZ – Oil & Gas maintenance hub
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Western Cape GDP by sector
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Source: Quantec, 2014
2002 – 70.2%Services sector: 2007 – 71.9%
2013 – 73.6%
Agriculture, forestry and fish-
ing
Mining and quar-rying
Manufacturing Electricity and water
Construction Wholesale & re-tail trade; hotels
& restaurants
Transport and communication
Finance, real es-tate and busi-ness services
Community, so-cial and other
personal services
General govern-ment services
2002 0.0499941589720672
0.00313725401002281
0.187835344515161
0.0250975197509843
0.0320506886129621
0.158960981124316
0.0982748480502232
0.262789722985525
0.0746933226827105
0.107166159296027
2007 0.0395507519072158
0.00262300330706643
0.175426818159842
0.0236333044744916
0.0400511281856816
0.161270094727982
0.104605467572545
0.285678775079717
0.0705603193387717
0.0966003372466867
2013 0.0406817825854197
0.00256643643976768
0.15771429782242
0.0204730538767063
0.0421158783149368
0.160600523811006
0.101823971470758
0.2980286255132 0.0675870901839503
0.108408339981835
3%
8%
13%
18%
23%
28%
33%
WESTERN CAPE REAL GDP BY SECTOR, 2002-2013
% S
hare
Western Cape GDP by manufacturing & services sector
An inspiring place to do businessSource: Quantec, 2014
Food, beverages & tobacco
26%
Petroleum products, chem-icals, rubber &
plastic24%
Metals, metal products, machinery & equipment
13%Wood, paper, pub-lishing & printing
10%
Furniture&other manufacturing
9%
Textiles, clothing & leather goods
7%
Transport equipment
6%
Other non-metal mineral products
3%
Electrical machinery & appa-ratus2%
Radio, TV, instruments, watches
2%
MANUFACTURING SECTOR CONTRIBUTION TO THE WESTERN CAPE, 2013
Business services
30%
Wholesale and retail trade
19%Finance and
insurance15%
General gov-ernment
14%
Transport and storage
7%
Community, so-cial and personal
services7%
Communication7%
Catering and accommoda-tion services
2%
SERVICE SECTOR CONTRIBUTION TO WESTERN CAPE GDP, 2013
RANK TOP 10 EXPORTS VALUE 2013 (ZARbn)
% GROWTH 2012-2013
1 Oils petroleum, bituminous, distillates, except crude 8.39 -5.32
2 Grape wines 7.80 33.26
3 Citrus fruit, fresh or dried 6.58 22.70
4 Apples, pears and quinces, fresh 5.59 53.52
5 Grapes, fresh or dried 4.02 22.27
6 Hot-rolled products, iron/steel, width>600mm, not clad 3.11 7.47
7 Liquid, gas centrifuges, filtering, purifying machines 2.01 -6.23
8 Maize (corn) 1.83 44801.31
9 Fruit, nut, edible plant parts nes, prepared/preserved 1.60 16.90
10 Liqueur, spirits and undenatured ethyl alcohol <80% 1.28 66.28
TOTAL EXPORTS 74.87 16.06
Western Cape global export and import products
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RANK TOP 10 IMPORTS VALUE 2013 (ZARbn)
% GROWTH 2012-2013
1 Petroleum oils, oils from bituminous minerals, crude 66.39 -16.76
2 Oils petroleum, bituminous, distillates, except crude 33.36 9.42
3 Diodes, transistors, semi-conductors, etc 3.69 1948.99
4 Liqueur, spirits and undenatured ethyl alcohol <80% 2.83 38.63
5 Prepared or preserved fish, fish eggs, caviar 1.67 9.60
6 Medicaments, therapeutic, prophylactic use, in dosage 1.67 73.87
7 Footwear nes, with outer sole, upper rubber or plastic 1.35 -0.98
8 Footwear with uppers of textile materials 1.27 9.51
9 Electric generating sets and rotary converters 1.07 3550.16
10 Machines nes having individual functions 1.03 -3.16
TOTAL IMPORTS 186.57 3.99
Source: Quantec, 2015
Western Cape global trade markets, 2013
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Source: Quantec, 2014
TOP 10 WESTERN CAPE EXPORT MARKETS, 2013
RANK IMPORTERS VALUE 2013 (ZARbn)
% SHARE2013
% GROWTH2012-2013
1 Netherlands 6.74 9.00 -0.91
2 United Kingdom 6.66 8.89 25.043 Germany 3.85 5.14 25.334 Mozambique 3.78 5.05 148.625 United States 3.49 4.65 4.386 Singapore 2.70 3.61 9.177 Japan 2.65 3.53 117.688 Angola 2.54 3.40 11.839 Kenya 2.29 3.05 64.53
10 China 2.12 2.84 49.39
TOTAL EXPORTS 74.87 100.0% 16.06%
TOP 10 WESTERN CAPE IMPORT MARKETS, 2013
RANK EXPORTERS VALUE 2013 (ZARbn)
% SHARE2013
% GROWTH2012-2013
1 Saudi Arabia 37.67 20.19 -0.32
2 China 28.01 15.01 39.27
3 India 16.37 8.77 75.28
4 Nigeria 13.59 7.28 -20.73
5 Germany 8.10 4.34 65.45
6 Singapore 7.54 4.04 75.42
7 United Kingdom 6.58 3.53 21.31
8 Italy 5.24 2.81 38.49
9 United States 4.71 2.52 13.80
10 Netherlands 4.64 2.48 -11.23
TOTAL IMPORTS 186.57 100.0% 3.99%
Source: Quantec, 2015
Western Cape trade with Vietnam
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Source: Quantec, 2015
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Ex-ports (ZARm)
119.602841
125.644988
90.392144
143.699433
213.194826
163.552227
362.629968
242.225822
206.746221
336.759978
Im-ports (ZARm)
102.943892
142.100157
162.904029
234.021215
420.295924
327.798678
362.33472
552.141049
740.471837
591.117174
Trade bal-ance (ZARm)
16.658949
-16.45516
9
-72.51188
5
-90.32178
2
-207.1010
98
-164.2464
51
0.29524800000001
5
-309.9152
27
-533.7256
16
-254.3571
96
-500-300-100100300500700900
WESTERN CAPE TRADE WITH VIETNAM, 2004-2013Va
lue
(ZAR
m)
RANK TOP 10 EXPORTS VALUE 2013 (ZARm)
% GROWTH 2012-2013
1 Crustaceans 136.8 885.17%
2 Ferrous waste or scrap, ingots or iron or steel 76.5 -26.64%
3 Grapes, fresh or dried 28.9 151.41%
4 Enzymes, prepared enzymes, nes 25.3 -19.39%
5 Citrus fruit, fresh or dried 21.5 155.79%
6 Wood in the rough or roughly squared 8.8 -14.10%
7 Apples, pears and quinces, fresh 8.8 52.27%
8 Fish, frozen, whole 7.3 63.49%
9 Composition leather, in slabs, sheets or strips 6.6 48.99%
10 Grape wines(including fortified), alcoholic grape must 6.0 41.63%
TOTAL EXPORTS 336.8 62.89%
Western Cape trade with Vietnam, 2013
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RANK TOP 10 IMPORTS VALUE 2013 (ZARm)
% GROWTH 2012-2013
1 Rice 82.3 -24.08%
2 Footwear with uppers of textile materials 68.5 -24.30%
3 Coal, briquettes, ovoids etc, made from coal 55.6 -56.28%
4 Pepper (Piper), crushed or ground Capsicum, Pimenta 46.4 118.13%
5 Footwear with uppers of leather 44.7 -34.75%
6 Footwear nes, with outer sole, upper rubber or plastic 33.8 -53.39%
7 Footwear nes, sole not leather, rubber or plastic 21.8 -27.56%
8 Baked bread, pastry, wafers, rice paper, biscuits, etc 20.1 -26.92%
9 Trunks, suit-cases, camera cases, handbags, etc 19.1 -17.38%
10 Other furniture and parts thereof 17.7 30.15%
TOTAL IMPORTS 591.1 -20.17%
Source: Quantec, 2015Crustaceans accounts for 40% & Ferrous waste or scrap iron & steel accounts for 22%
Top source markets & sectors of FDI into the Western Cape
An inspiring place to do businessSource: FDI Intelligence, 2014
UK United States Netherlands Germany France China Switzerland India Denmark Spain
%Projects 0.251184834123223
0.232227488151659
0.0758293838862559
0.0616113744075829
0.04739336492891
0.028436018957346
0.028436018957346
0.023696682464455
0.018957345971564
0.018957345971564
%Capex 0.154950793331994
0.19526009238803
0.0550932096624003
0.0635651554711607
0.0564151253446293
0.00958206284577042
0.0087951213277584
0.0169292848144023
0.00450437291168362
0.00583906954664135
3%
8%
13%
18%
23%
28%
BREAKDOWN OF FDI BY SOURCE MARKET, 2003- JUNE 2014
% S
hare
Software & IT services
Business Ser-vices
Financial Ser-vices
Communica-tions
Transportation Chemicals Alternative/Re-newable energy
Electronic Components
Consumer Products
Coal, Oil and Natural Gas
%Projects 0.180094786729858
0.175355450236967
0.0805687203791469
0.0663507109004739
0.0568720379146919
0.037914691943128
0.033175355450237
0.033175355450237
0.028436018957346
0.028436018957346
%Capex 0.046135587649948
0.0336339900308569
0.0258503898190582
0.141127280030674
0.0411583194873012
0.00802278661286494
0.132805053953879
0.00530226953203455
0.0206229801530063
0.225563731307857
3%
8%
13%
18%
23%
BREAKDOWN OF FDI BY SECTOR, 2003-JUNE 2014
% S
hare
Breakdown of FDI from Vietnam to South Africa
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VIETNAM FDI TO SOUTH AFRICA, 2003- APRIL 2015
DATE INVESTING COMPANY
SOURCE CITY
DESTINATION STATE INDUSTRY SECTOR SUB-SECTOR CAPEX
(ZARm)
May-09 Nam Viet Joint Stock Company (NAVIFICO) Ho Chi Minh KwaZulu-Natal Wood Products Furniture, homeware & related products
(Wood Products) 144.47
Feb-04Vietnam National Garment & Textile Corp. (Vinatex)
Ha Noi Not Specified Textiles Clothing & clothing accessories 19.92
Oct-03 Vietnam News Agency (VNA)
Not Specified Gauteng Paper, Printing &
Packaging Printing & related activities 992.43
Total 1 156.82
• Nam Viet JSC (Navifico) establish a South Africa based wood furniture manufacturing plant near Pietermaritzburg. The company supplies furniture to Ghana and Angola and plans to expand its coverage of the African market.
• (Vinatex) (Ha Noi, Vietnam) invested in South Africa in the Textiles sector in a Sales, Marketing & Support project.
• Vietnam News Agency (VNA) (Vietnam) invested in the city of Pretoria, South Africa in the Paper, Printing & Packaging sector in a Manufacturing project.
Source: FDI intelligence, 2015
Selected Investment Opportunities
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RENEWABLE ENERGY• Suppliers of parts and components for wind
turbines and photo voltaics;• Service and maintain wind and solar farms
AGRIBUSINESS• Aquaculture: Development of open water
aquaculture farms• Essential Oils: Oil extraction and processing
ICT• Software and IT services sector• Multiple ICT incubators & accelerators in
operation• Government core focus area
BPO• Government & private sector outsourcing• Growth from new ventures
Hotels & Real Estate• Construction of 3 to 5 star hotels- growing
tourism• Develop prime beachfront property
Metals & Niche Engineering• Metals conversion and steel fabrication• Manufacture automotive components,
Engineering services
Specific Investment Opportunities
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Extract of Investment Projects currently available in the Western Cape
**Please note that Investment Projects operate as a going concern and thus projects listed in the Investment Project extract may no longer be available upon request, due to fulfilment/acquisition of investment targets. Wesgro is committed to updating the Investment Projects status on a regular basis.
Mega Projects
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Sector Investment Size ($) Project Overview
Real Estate – Infrastructure & Development (Multi-Sectoral Possibilities)
$13.00billion Greenfield Project. A mega infrastructure project is planned for the Western Cape. Partners are being identified to support multiple components including: Finance, Construction, Logistics etc
Renewable Energy $500.0m Greenfield Project: 5 Project Opportunities available in Wind Energy. Company seeks equity partner.
Key Investment Projects
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Sector Investment Size ($) Project Overview
Bio-waste $40.0m Greenfield Project. Project involves recycling of agricultural waste into plastic. JV opportunity.
Energy Efficiency $10.0m Greenfield Project. Project focuses on heating technology for hot water systems. JV Opportunity.
Real Estate – Hotel & Hospitality $26.18m Brownfield Hotel Opportunity. 5-Star Hotel in Cape Town CBD. 61 keys
Real Estate – Hotel & Hospitality $21.0m Brownfield Opportunity. Includes Hotel and lifestyle estate with opportunity for 45 additional properties, golf course + numerous other add-ons including vineyards.
Real Estate – Hotel & Hospitality $12.5m Brownfield Hotel opportunity. Consists of a 65 key hotel, 12 villas and a health spa. Opportunity to add additional 20 rooms.
Real Estate – Hotel & Hospitality $5.4m Brownfield Hotel Opportunity. 4-Star Hotel in Cape Town CBD, 33 Keys + Bar/Restaurant/Conference Facilities. All zoning and licensing approved for operation of hotel.
Key Investment Projects (continued)
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Sector Investment Size ($) Project Overview
Real Estate – Hotel & Hospitality $5.4m Brownfield Hotel Opportunity. 5-Star Luxury Hotel in Cape Winelands, 35 Keys + opportunity to add an additional 15 rooms (plans approved)
Agribusiness $3.0m Brownfield Project. Opportunity exists to acquire 30% of a sauce manufacturing facility in the Western Cape.
Agribusiness $2.0m Brownfield Project. Opportunity exists to buy into business concerned with the manufacturing of neutroceuticals and fuel generated from Algae. Company is in pilot phase and seeks to raise capital to complete feasibility
Real Estate - Agriculture $7.0m Brownfield Farming opportunity, 398Ha
Real Estate - Agriculture $4.7m Brownfield Multi-focus Farm, 99Ha
Real Estate - Agriculture $3.5m Brownfield Wine Farm, Zoning has been granted to turn Manor House into Boutique Hotel
Key Investment Projects (continued)
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Sector Investment Size ($)
Project Overview
ICT $15m
ICT e-commerce and website development platform seeks equity stakeholder. Business supported by Microsoft BizSpark Premium and Samsung
ICT $2.5mBrownfield Opportunity. A South African software development firm is seeking an equity investor, for the sale of a 25% stake in the business.
ICT $2.5m
Brownfield Opportunity. A South African software developer is seeking an equity partner to fund a software-based platform business focused on the agriculture and agro-processing sectors. The company won the IBM SmartCamp Africa pitching competition.
Film & Media $4.0m
Brownfield Opportunity. A South African animated media business, which has successfully launched three major animated movies, is seeking $4 million in order to develop 4 production scripts for additional movies
Point of Contact for Potential Investors:
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Wesgro invites any potential investors or interested parties in the projects outlined to contact the Wesgro Investment Promotion Team:
Mr Salman Kajie: Head: Investment Promotion Team [Acting][email protected]
Mr. James Milne: Investment Promotion Manager: ICT & Special [email protected]
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