2088 business brochure a5 final

8/3/2019 2088 Business Brochure a5 Final

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SOUTH AFRICA

A qik gie t ing bsiness in St Aia.A WEALTH OF OPPORTUNITY


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YOUR INVESTMENT DESTINATION

KEY FACTS AND FIGURES

THE SOUTH AFRICAN SCORECARD

A GLOBALLY COMPETITIVE ECONOMY

A CULTURE OF INNOVATION

AN INVESTORS DREAM

PLANS FOR GROWTH

TRANSPORT INFRASTRUCTURE

INVESTOR SUPPORT

SECTOR OPPORTUNITIES

PROVINCIAL OPPORTUNITIES

INVESTMENT INCENTIVES

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YOUR INVESTMENTDESTINATIONSt Aia is aways open or business in evey neivabe enmi set. Wit a stabeemati gvenment, sn fnania seity an a tanspaent an igy egatebanking set, te nty is a aven invests.

Despite the global recession, South Arica is i n an excellent economic position due tostrong commodity prices, low interest rates and aster global growth.

Plenty oopportunities await international investors in all sectors o the economy andthroughout the country. South Arica holds immense potential as a representative othe continent and oers easy access to inter-continental and East-West trade.

South Aricas large skilled and unskilled labour orce comes rom a variety o

universities, technikons and colleges as well as a well-developed corporate trainingsector. A strong union structure provides protection o the constitution and supportsemployee labour rights.

Important and innovative work is ongoing in a wide number o elds, includingbiotechnology, nano-technology, indigenous/traditional medicine, sports science,and many more.

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KEY FACTS ANDFIGURES

Agriculture: 81,6% o total land area

Arable land: 12,1% o total

Provinces: Eastern Cape, Gauteng, KwaZulu-Natal, Mpumalanga,Northern Cape, Limpopo, North West, Free State andWestern Cape

Capitals: Pretoria (administrative), Cape Town (legislative),

Bloemontein (judicial)

Largest city: Johannesburg

President: Jacob Zuma

Area: 1 221 037 km2

Calling code: +27

Internet TLD: .za

Ofcial languages: Arikaans, English, Ndebele, Pedi, Sotho, Swazi, Tsonga, Tswana,Venda, Xhosa and Zulu

Measures: Metric system

Currency: One Rand (R) = 100 cents

Currency code: ZAR

Fiscal year: 1 April to 31 March

Time: Two hours ahead o GMT

GDP (PPP): $505 214 billion

Per capita: $10 243

GDP (nominal): $287 219 billion

Per capita: 57.8

HDI: 0.683

WESTERN CAPE

EASTERN CAPE

NORTHERN

CAPE

FREE STATE

KWA-ZULU NATAL

NORTH-WEST

MPUMALANGA

LIMPOPO

GAUTENG

South Arica is ound at the southern tip o the Arican continent and ismade up o nine provinces. 04


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THE SOUTH AFRICANSCORECARDCountry size: 28th in the world, by population and GDP

Local currency versus the US dollar: Second best in the world

Most democratic: Ranked 43rd out o 150 countries(ahead o China, India, Brazil, Russia)

Size o gold reserves: 24th out o 92 countries

Protection o investors: 10th out o 183 countries

Size o exports: 41st out o 192 countries

Agricultural output: In the worlds top 20

Press reedom: 41 out o 176 countries

(higher than France, Italy, Spain, Portugal)

Big Mac index: 11th out o 60 countries

Railroad network: Worlds 18th longest

Road network: Worlds 15th biggest

Electricity production: Worlds 19th biggest

Budget: South Aricas Open Budget Index score in 2010was 92 out o 100, the highest score o the 94countries surveyed

Nation brand: The most valuable on the continent in 2011

according to UK-based Brand FinanceTourism: Voted the ninth best destination in the world

Corruption: The 40th least corrupt nation according to theWorld Audit Survey

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A GLOBALLYCOMPETITIVE

ECONOMYSt Aia ae we in te mst eentWorld Economic Forums GlobalCompetitiveness Index. St Aias vea anking impve t 50 in 2011-2012 t 142 nties, e t impessive gains in accountability o private institutions, strength oinvestor protection an technological readiness.

South Aricas fagship advantages continued to shine:

Rankedrstinstrengthofauditing and reporting standards

Rankedsecondinefcacyofcorporate boards

Rankedthirdinprotectionofminority shareholders interests Rankedseventhineffectivenessofanti-monopoly policy

Rankedthirdinavailabilityofnancial services

Rankedfourthinnancingthroughthelocal equities market

Rankedsecondinsoundnessofbanks

Rankedrstinregulationofsecurities exchange

Rankedeighthin legal rights

SouthAfricasabsolute score remained at 4.3 (on a scale o one to seven)

SouthAfricas50th overall ranking is sub-Saharan Aricas highest

SouthAfricaissecond only to China among the Brazil-Russia-India-China-South Arica (BRICS) economic grouping

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A CULTURE OFINNOVATIONSt Aia stes a te innvatin beieving tat it is key t its te sess. Tenty is bsy pmting innvatin n a ba nt an as eenty inte TeInnvatin Ageny.

InCapeTown,OptimalEnergyhaspioneeredThe JouleSouthAfricasrst electric car. It is a nippy, spacious six- seater capable o 200 kilometres betweenbattery charges

InDurban,AdeptAirmotivehasinventedalightweight,light aircrat engine that is 30%morefuel-efcientthanitscompetitors

InJohannesburg,Femipapisaself-samplingproductthatquicklyandinexpensivelypermits women to check or evidence ocervical cancer

ProfessorVivianAlbertsandateamattheUniversityofJohannesburghavepioneereda process or the production othin lm solar modules to extract more renewableenergy rom South Aricas abundant sunlight

FollowingresearchattheUniversityofCapeTown,localcompanyHotPlatinum,hassuccessully developed innovative platinum casting equipment or jewellery design

SouthAfricahostsanInternational Centre or Genetic Engineering at the Universityo Cape Town

DrMath,amobile-based mathematics-tutoring programme developed by South AfricasCouncilforScienticandIndustrialResearch,hasreceiveda2011 Technology

in Government in Arica award rom the United Nations in the ICT i n Educationcategory

SouthAfricasCouncilforScienticandIndustrialResearch(CSIR)hasdevelopedaninnovative, aordable hand-washing device enabling poor communities to combatlie-threatening water-borne diseases with minimal water usage

InabidtoexploitSouthAfricasabundantsunshineandreducerelianceonmainselectricity, Vodacom has launched a low-cost solar-powered mobile phone with the

uniqueabilitytochargeonthegoevenwhenitsnotindirectsunlight

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AN INVESTORSDREAMWit te niqe mbinatin igy evepefrst-world economic inrastructure ana vibant emeging-maket enmy, St Aia is an invests eam.

Mst bsiness sets ae pen t invests an tee ae almost no restrictions n te m extent eign investment.

Exptes ae gante incentives s as export marketing assistance anzero rating orvalue added tax(VAT) n expts gs an sevies.

Invests ave a nmbe investment inentives tat ae avaiabe entities pinggs an sevies in te nty.

SOuNd ECONOmiC pOliCiESSouth Aricas investor-riendly policies support oreign investment in the country.

Large-scale investment in inrastructure, small businesses, skills development andtargeted sector interventions are well under way in all sectors o the economy.

FavOurablE lEgal aNd baNkiNg ENvirONmENT

South Arica has a world-class, progressive legal ramework pertaining to commerce,labour and maritime issues.

Laws relating to competition policy, copyright, patents, trademarks and disputes,conorm to international norms and conventions.

South Aricas nancial systems are sophisticated, robust and well regulated.

South Arican banking regulations rank with the best in the world, while the sector haslong been rated among the top ten globally.

TheJohannesburg Stock Exchange is among the top twenty exchanges in the world bymarket capitalisation.

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The rise to BRICS and membership o the G20 group o nations positions the countryas a key player in developing markets and the global economy.

BRICS will account or 61% o global growth in three years time, according to theInternational Monetary Fund (IMF).

The $1 trillion Arican Free Trade Agreement will orm Aricas biggest ree trade bloc

creating a single, continent-wide market estimated to be worth $1 trillion by 2013.

FavOurablE COST OF dOiNg buSiNESS

South Aricas exchange rate makes it one o the least expensive countries or oreignersto live and do business in.

A rst-world inrastructure and high living standards ensures good value or money.

South Aricas energy costs are still among the lowest in the world, and the countrycompares avourably with others on petroleum prices.

South Aricas unit labour costs are lower than those o other key emerging markets.

iNduSTrial CapabiliTy aNd CuTTiNg-EdgE TEChNOlOgyThe countrys manuacturing output is increasingly technology-intensive, with high-technology manuacturing sectors enjoying a growing share o total manuacturingproduction.

The country has developed a number oleading technologies,particularlyintheeldso energy and uels, steel production, deep-level mining , telecommunications andinormation technology.

COmprEhENSivE hEalTh CarE

South Arica is due to roll out National Health Insurance (NHI) in April 2012 as a pilotfortherstveyears.

The NHI will provide universal health coverage to all South Aricans, regardless o theiremployment status and ability to contribute to the NHI und.

The government has set aside billions o rands towardscomprehensive HIV/Aidsprogrammes, child healthcare and training o medical proessionals.

WOrld-ClaSS iNFraSTruCTurE

South Arica has world-class inrastructure, including an excellent transport network,low cost energy and sophisticated telecommunications acilities.

aCCESS TO markETS

South Arica serves as a trans-shipment point between the emerging markets o Centraland South America and the newly industrialized nations o South and Far East Asia.

Major shipping lanes pass along the South Arican coastline in the south-Atlantic andIndian oceans.

The countrys seven commercial portsformbyfarthelargest,best-equippedandmostecient network on the continent.

aCCESS TO aFriCa

South Arica has the resident marketing skills and distribution channels imperative orcommercial ventures into Arica.

The country plays a signicant role in supplying energy, relie aid, transport,communications and outward investment on the continent.

South Arica is a dynamic orce within the 14-member Southern Arican DevelopmentCommunity (SADC) and was a key player in the development o the New Partnershipor Aricas Development (Nepad), the socio-economic renewal programme o theArican Union.

BRICS-Arica trade is expected to surpass the $50 billion markwithinveyears.

TradE rEFOrm aNd STraTEgiC alliaNCES

Since signing the Global Agreement on Taris and Trade in 1994, South Arica hasbecome a player in the global trading system.

Market access has been enhanced through ree trade agreements with the EuropeanUnion and the Southern Arican Development Community, and the implementationo the Arica Growth and Opportunity Act by the United States.

The India-Brazil-South Arica (IBSA) alliance, ormed in 2003, aims to increase tradebetween the three countries rom the current level o around US$6 billion to $10 billionwithin the next ew years.

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Te Industry Policy Action Plan (IPAP2) an te National Growth Path (NGP) aveientife speif sets ng-tem gwt an jb eatin.

IPAP2 epesents a signifant step t pmting long-term industrialisation anddiversifcation beyn taitina mmities an nn-taabe sevies.

Te NGP setsjob creation as a nty piity an aims at eing nempyment by10% by 2020.

priOriTy arEaS FOr grOWTh

Advancedmaterials

Aerospace

Agricultureandagro-processing

Automotivesandcomponents,mediumandheavyvehicles BusinessProcessOutsourcingandOffShoring(BPO&O)

Capitalandtransportequipment

Clothing,textiles,footwearandleather

Filmstudiosandlmproduction

Forestry,paper,pulpandfurniture

Greenandenergysavingindustries

Infrastructuredevelopment(includingtourisminfrastructure)

Miningandmetalsfabrication

Plastics,pharmaceuticalsandchemicals

Nuclear

Downstreammineralsbeneciation

Boatbuilding

PLANS FOR GROWTH

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TRANSPORTINFRASTRUCTURE

St Aia is n a mtibiin an evepment ive t meet te emans a gwingenmy an ppatin.

St Aia basts te mstadvanced and extensive inastte in Aia an esiet aess t teourteen SADC countries a maket 250-miin pepe.

iN ThE air

Billions o rands have been spent upgrading South Aricas airport network to increasecapacity, security and amenities or passengers and visitors.

O.R. Tambo International caters or 17 million passengers annually and is the regionsair transport hub.

ON ThE grOuNd

The Gautrain rapid rail system links the airport with Sandton, the provinces premiershopping and conerence venue, as well as other key centres in Rosebank, Midrand,Pretoria and the Johannesburg city centre.

A massive motorway improvement scheme has resulted in extra lanes being added,a sophisticated electronic toll system introduced and interchanges drastically renovated.

The Bus Rapid Transport System (BRT) is a state-o-the-art shuttle bus network thatoperatesindedicatedBRTlanesandisaimedatmovingpassengersefcientlyand aordably.

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INVESTOR SUPPORTSuppOrTiNg iNvESTOrS aNd ExpOrTErS ON a NaTiONal lEvEl

The Department o Trade and Industry (the dti) together with Trade and InvestmentSouth Arica (TISA) identiy and target key priority sectors or development and

investment. TISA is an essential point o contact or anyone involved in trade andinvestment in the country.

Their sector specialists have a clear understanding o, and access to, South Aricasvarious industries. They are able to match investors requirements with opportunitiesavailable in South Aricas nine provinces.

On the export side, they ocus on assisting locally based exporters to penetrate oreignmarkets using the dtis oreign service network.

For more inormation: visit www.ti.gv.za a +27 (0) 12 394 9500

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SECTOROPPORTUNITIES

ENErgyThe country is one o the cheapest producers o electricity in the world.

Nearly88%ofelectricityisgeneratedincoal-redpowerstations,butthecountryiscommitted to moving towards more sustainable and cleaner power sources. Thesector aims to reduce emissions by 34% in the next ew years and maintain an optimalenergy mix.

SolAr PoWErSouth Arica is committed to installing over one million solar water heaters by 2014and over 5.6 million by 2020.

Concentrated Solar Thermal (CST) power is viewed as the most promising renewableenergy generation option in South Arica.

WINd PoWErInarstforSouthAfrica,apilot wind arm project in the Western Cape now supplies13.2 gigawatt-hours o electricity per year to the city o Cape Town.

Cape Town aims to source about 10% o its energy rom renewable sources by 2020.

lANdIll GASIn2010,SouthAfricalaunchedtherstlandll gas power-generation project onthe continent.

Situated in Durban, this landmark project produces enough electricity or severalthousand medium-income homes, and will earn the city millions in carbon credits.

BIo-uElSSouth Arica has recently established a bio-uels industry investment in theEastern Cape.

Approximately 500 000 hectares o under-used land are being set aside to developcropsfromtheseeldsthatwillfeeda200 000 ton-per-annum biodiesel plant.

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Major projects are under way to lay submarine, bre-optic cables along both the eastand west coasts o Arica in order to improve the continents connection with the rest othe world.

ResearchrmWorldWideWorxpredictsthatSouthAfricawillshowsteadyInternetuser growth over the next ew years, reaching 8.5 million Internet users in 2013 and9 million users in 2014.

INVESTMENT oPPorTuNITIES Developmentofaccesscontrolsystemsandsecurityequipment Automotiveelectronicsubsystems Systemsandsoftwaredevelopmentinthebankingandnancialservicessector Siliconprocessingforbreoptics Integratedcircuitsandsolarcells Exportofhardwareandassociatedservicesaswellassoftwareandperipherals Environmentalresourcesmanagement(ERM)systems Customerrelationshipmanagement(CRM)systems

miNiNg aNd mETalS

The South Arica constitution and policies are highly protective o minority ownership

rights in the sector.

Our large and well-developed metals industry, with vast natural resources and asupportive inrastructure, represents roughly a third o South Aricas manuacturing.

South Arica has vast mineral resources accounting or approximately 88% o thePlatinum metals on earth, 80% o the Manganese, 72% o the Chrome, and 30% othe Gold.

South Arica ranks about 20th among the crude steel producing countries in the world- producing in the region o1% o the worlds crude steel.

The country is the largest steel producer in Arica, responsible or more than hal o thetotal crude steel production o the continent.

South Arica is one o the worlds biggest producers o gold and platinum and one othe leading producers o base metals and coal.

South Aricas strengths include a high level otechnical and production expertise, andcomprehensive research and development activities.

iNFOrmaTiON COmmuNiCaTiON TEChNOlOgy

South Arica is the leader o ICT development in Arica and the twelth largestconsumer o IT products and services in the world.

South Aricas IT industry is characterised by technology leadership, particularly in theeldofelectronic banking services.

Testing and piloting o systems and applicationsis a growing business in South Arica,withthediversityofthelocalmarket,rst-worldpracticalknowledgeandadeveloping

economic environment.

TElEcoMMuNIcATIoNS The South Arican telecommunications market is the largest in Arica, both in terms ocustomers and revenues.

With a network that is 99.9% digital and includes the latest in wireless and satellitecommunication, the country has the most developed telecommunication networkin Arica.

South Arica boasts the ourth astest growing mobile communication market in the

world with over 50 million subscribers and penetration o 104%.

Telkom is a key player in the optical bre undersea cable project that will cater orAricas growing telecommunications needs or the next 25 years.

BuSINESS ProcESS ouTSourcING ANd o ShorING (BPo&o)BusinessProcessOutsourcingandOffShoring(BPO&O)isakey sector in thegovernments strategy to boost the countrys economy.

South Arica is becoming a avoured international locationforBPO&O.

South Aricas call centre inrastructure meets international standards oering educated

andmulti-linguallabour,rstworldtelecommunicationsinfrastructureaswellaspolitical and economic stability.

INTErNET AccESSSouth Arica boasts the largest Internet market in Arica with an estimated 4.6 to 5.4million users.

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The country has world-scale primary processing acilities covering carbon steel,stainless steel and aluminium - in addition to gold and platinum.

Lucrative opportunities exist or downstream processing and adding value locally toiron, carbon steel, stainless steel, aluminium, platinum group metals and gold.

agrO-prOCESSiNg

South Aricas agricultural sector is well developed, and secondary manuacturing in theagro-processing industries is spreading widely.

A world-class inrastructure, counter-seasonality to Europe, vast biodiversity andmarine resources, and competitive input costs, make the country a major player in theworlds markets.

The South Arican agro-processing industry oers outstanding opportunities orcompanies looking or both local markets and export platorms into Arica and Europe.

South Arica is sel-sucient in most major agricultural products and is also a net oodexporter and the second largest exporter o ruit i n the world.

There are exceptional opportunities or investment in the processing o ruit juice,meat, leather, groundnuts and wheat, as well as vegetable canning, cotton and wool-based textiles, wine, sunfower oil and soya-based products.

maNuFaCTuriNg

The chemicals sector is the largest o its kind in Arica and a world leader in coal-basedsynthesisandgas-to-liquidstechnologies.

Local textile production has evolved into a capital-intensive industry, producingsyntheticbresinever-increasingproportions.

Major multinationals use South Arica to source components and assemble vehicles

or both the local and international markets oering numerous investor opportunities.

BMWs Rosslyn plant in Gauteng was awarded the coveted European Gold PlantQuality Award in 2011.

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PROVINCIALOPPORTUNITIESSt Aia as nine pvines, ea wit its wn egisate, pemie an exetive ni,an tee ae ieenes in size, ansape, ppatin, enmy an pptnities.

gauTENg

Gauteng is a leader in manuacturing, commerce, IT and media with mining stillcontributing a great deal to the economy.

The province accounts or 35% o total household consumption in the countryaccording to the Bureau o Market Research.

Gauteng is the nancial capital o Arica: more than 70 oreign banks have their headofcesintheprovince,andthereareatleastthatnumberofSouthAfricanbanks,stockbrokers and insurance giants.

The JSE in Johannesburg is the sixteenth largest stock exchange in the world by marketcapitalisation.

The province has the best telecommunications technology on the continent as well asthe highest concentration omedia.

More than 60% o South Aricas research and development takes place in Gauteng,which has 41% o the countrys core biotechnology companies.

A green economic development strategy has been put in place aimed at turning the

challenge o climate change into an opportunity.

Gautengs rapidly growing and eciently managed economy oers many excitingopportunities or business.

For more inormation visit: Gateng Enmi devepment Ageny www.gea..za

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kWaZulu-NaTal

KwaZulu-Natal is a huge industrial hub and by ar the countrys biggest import-export gateway.

Economic development is evident everywhere, and Durban, the principal city, is one othe astest-growing urban areas in the world.

KwaZulu-Natal has two great ports: Durban and Richards Bay. These two ports accountor about 78% o South Aricas cargo tonnage.

Steel production, aluminium smelting as well as vehicle and automotive componentmanuacturing play a key role in the economy and oer numerous opportunities or

investment.

KwaZulu-Natal is a highly competitive region or oreign investment, particularly orre-export opportunities through the port o Durban.

Theprovincehasidentiednine prime targets or investment: textiles, clothing,plastic products, chemicals, abricated metal products, automotive components, woodproducts, ootwear, machinery and appliances.

Tourism in the province oers exceptional investment potential. KwaZulu-Natal isSouth Aricas most popular domestic tourist destination, and new upmarketeco-tourism opportunities in the provinces northern reaches are now opening up.

For more inormation visit: Tae & Investment KwaZ-Nata ( TIKZN) www.tikzn.g.za

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WESTErN CapE

The Western Cape boasts a varied manuacturing base, a strong nancial sector,world-class logistics and an export-oriented ruit and wine sector.

The province is ocused on growing high-tech industries with Google and Amazonhavingopenedofcesintheprovince.

Sectors identied or investment include tourism, orestry, agriculture and agro-processing,aquaandmariculture,miningandmanufacturing,foodandbeverages,oil and gas, construction, transport and inrastructure, nuclear and alternative energy,businessprocessoutsourcing,mediaandlm,artsandcraftdesignandICT.

Wind, solar and wave power are key investment sectors within the city o Cape Townthataimstoobtainalargeportionofitsenergyrequirementsfromwindfarmsinthe province.

Many o South Aricas major insurance companies and banks are based here, andCape Town is home to most o the countrys petroleum companies, as well as its bigprinters and publishers.

The Cape Town International Convention Centre is the largest in the province and aleading acility in the growing business tourism sector.

Moreandmoreinternationaladvertisersandlmmakersregardtheareaasaprime

destination and the Cape Town Film Studios oers them a world-class acility.

For more inormation visit: Wesg www.wesg..za

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EaSTErN CapE

The Eastern Cape is the hub o South Aricas motor manuacturing and vehiclecomponent industry sector.

The province boasts two container ports o the highest international standards as wellas a deep water port.

The Eastern Cape has a solid manuacturing base that represents internationalcompanies,andhasaproudrecordofworld-classqualityandreliabledelivery.

This extensive industrial capacity provides an ideal base or aspirant manuacturers andthere is abundant capacity to accommodate urther industrial expansion.

Two harbours and three airports oer direct fights to the main centres, and theexcellent road and rail inrastructure link the province with the rest o the country andthe continent.

For more inormation visit: Te Easten cape devepment cpatin (Ecdc)www.e..za

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mpumalaNga

Mpumalanga is rich in coal reserves,andthehugecoal-redpowerstationsbuiltalongside its great collieries are South Aricas largest and most important.

The province accounts or 83% o South Aricas coal production, and 90% o this isused or electricity generation and the synthetic uel industry.

Manuacturing represents nearly 18% o Mpumalangas gross geographicproduct (GGP).

Modern industrial parks are located throughout the province and standard actorybuildings are available.

Mpumalanga is a short distance rom South Aricas industrial heartland, Gauteng,and excellent roads and railways connect the province with the ports oMaputo inMozambique, Richards Bay and Durban.

The Maputo Development Corridor, which links the province with Gauteng and thePortofMaputoinMozambique,heraldsaneweraofeconomicdevelopmentandgrowth or the region.

For more inormation visit: Mpmaanga Enmi Gwt Ageny www.mega.gv.za

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limpOpO

Limpopos economy is both dynamic and diverse and there are numerous growthopportunities or investors in mining , agriculture, agro-processing and tourism.

The province has placed a key ocus on increasing manuacturing particularly inagro-processing and bio-uels.

Limpopo is an entry point into the rest o Arica, with its shared borders making itavourably situated or economic cooperation with other parts o southern Arica.

The province boasts the largest diamond, copper and open-pit platinum mines in thecountry, as well as the worlds largest vermiculite mine.

The Maputo Development Corridor links the province directly with the deep waterportofMaputoinMozambique,creatingdevelopmentandtradeopportunities.

Limpopo connects to the corridor via the Phalaborwa Spatial Development Initiative,a network o rail and road corridors linked to major seaports.

There are excellentmanuacturing opportunitiesin ruit, vegetable and meatprocessing, leather tanning, jewellery and urniture making as well as in i ndustrialchemicals and light to medium engineering

For more inormation visit: Tae an Investment limpp www.ti..za

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NOrTh WEST

Rich natural resources, a highly fexible workorce, a low cost o living and an excellentqualityoflifestyle,havemadeNorthWestapopulardestinationforforeigninvestors.

There are numerous opportunities in agriculture and agro-processing, mining andbeneciation, manuacturing, automotives, construction and property development,inrastructure and transport, water and green energy.

The province has a strong eco-tourism sector with national, provincial and private parksclustered around the award-winning Sun City complex.

Pelindaba is home to the countrys nuclear research programme. The Saari-I reactor is

oneofvereactorsworldwideprovidingisotopesforuseinnuclearmedicine.

Bio-uels represent a vibrant, sustainable industry that promises to create thousands oextra jobs and become a major money earner.

The Makeng Industrialized Zone is at the core o the provinces plans to grow themanuacturing sector.

Abundant investment opportunities also exist in the ood processing, urniture,pharmaceuticals, textiles and clothing sectors.

For more inormation visit: Invest Nt West www.inw.g.za

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FrEE STaTE

Famous or its mining and agriculture, the Free State has adopted a arsighted andvigorous policy obeneciation and secondary sector economy development.

Targeted sectors or oreign direct investment are agro-processing, arm machineryandequipment,leathertanningandnishing,goldjewelleryandbeneciation,petrochemicals, and pharmaceutical research and development.

Floriculturehasbeenidentiedashavinghugepotentialforgrowth,andinvestorsareencouraged to explore this lucrative industry.

Investment potential is enhanced by numerous excellent industrial and commercial

properties in the province.

The province is a centre or BPO&O and ICT, hosting Telkoms main switching centreandaccesstobothnationalandinternationalopticbreroutes.

Pharmaceutical and medical manuacturing is high on the list o growth industries withthe development o a high-tech medical supply manuacturing company, saety-productplants and a medical extrusion acility.

For more inormation visit: Te ee State devepment cpatin (dc)www...za

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NOrThErN CapE

For the investor, the Northern Cape is wide open with opportunities in mining, scienceand technology, manuacturing, tourism, green energy, agriculture and agro-processing, shing and mariculture, and BPO&O.

Mining remains the most important sector with an expanding iron-ore ocus, howevera number omanganese projects are underway and copper, asbestos, fuorspar, lead,zinc and marble are also ound here.

The South Arican Light Telescope (SALT) acility is home to the Meerkat array and isone o the proposed sites or the Square Kilometre Array, the largest radio telescope inthe world.

Eskom, the countrys main power provider is looking or private partners to develop amassive solar park in the region to provide up to 1/8 o the countrys power.

There are now exciting opportunities or investors to establish beneciationplantsincludinginvestmentinthepelletisationofironnes,diamond-cuttingandpolishing,and jewellery manuacturing.

Agro-processing is a growing industry and the province is home to two projects underthe Illima-Letsana programme, the Rooibos Tea Processing Facility and the VaalhartsIrrigation Scheme.

For more inormation visit: Te Nten cape Enmi devepment Agenywww.nea..za

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INVESTMENTINCENTIVES

St Aia es vais attative investment inentives, tagete at speif sets types bsiness ativities.

ThE maNuFaCTuriNg iNvESTmENT prOgrammE

A cash grant or locally based manuacturers who wish to establish a new productionacility, expand an existing acility, or upgrade an existing acility in manuacturingindustries.

TOuriSm SuppOrT prOgrammE

An investment incentive grant to support the development otourism enterprises,stimulate job creation and encourage the geographical spread o tourism investmentthroughout South Arica.

FOrEigN iNvESTmENT graNTThisgrantseekstocompensatequalifyingoreign investors or the cost o movingqualifyingnewmachineryandequipmentfromabroadtoSouthAfrica.

CriTiCal iNFraSTruCTurE FuNd

The Critical Inrastructure Fund is a cash grant or projects designed to improve criticalinrastructure in South Arica.

iNduSTrial dEvElOpmENT ZONES (idZ)

These purpose-built industrial estates are linked to international ports that leveragexeddirectinvestmentsinvalue-addedandexport-orientedmanufacturingindustries.

ThE lOCaTiON Film aNd TElEviSiON prOduCTiON iNCENTivEThis incentive programme consists o a Large Budget Film and Television ProductionRebate Scheme.

ExpOrT markETiNg aNd iNvESTmENT aSSiSTaNCE SChEmE (Emia)

The EMIA scheme compensates exporters in respect o activities aimed at developingexport markets or South Arican products and services, and to recruit new oreigndirect investment into South Arica.

ThE buSiNESS prOCESS OuTSOurCiNg aNd OFF-ShOriNg (bpO&O)

iNvESTmENT iNCENTivE

TheBPO&Oinvestmentincentivecomprisesaninvestment grant and a trainingsupport granttowardscostsofcompany-specictraining.

auTOmOTivE prOduCTiON aNd dEvElOpmENT prOgrammE (apdp)

The APDP programme has our key elements, a tari reduction reeze rom 2013until 2020, a local assembly allowance, production incentives and an automotiveinvestment allowance.

auTOmOTivE iNvESTmENT SChEmE (aiS)

The Automotive Investment Scheme aims to grow and develop the automotive sectorby increasing plant production volumes and strengthening the automotive value chain.

SECTiON 12i OF ThE iNCOmE Tax aCT

This is a deductible cost allowance that in eect reduces the taxable income oa business.

rESEarCh aNd dEvElOpmENT (r&d) Tax iNCENTivE prOgrammE

This incentive consists o a deduction o 150%, in respect o eligible expenditure onsuitable scientic or technological R&D undertaken by taxpayers within South Arica,andanaccelerateddepreciationofassetsforscienticandtechnologicalR&Doverthree years, at a rate o 50:30:20, starting rom the year o assessment, in which the assetisbroughttoitsrstuse.

SuppOrT prOgrammE FOr iNduSTrial iNNOvaTiON (Spii)The Support Programme or Industrial Innovation (SPII) is designed to promotetechnology developmentinSouthAfricasindustry,throughtheprovisionofnancialassistance or the development o innovative products and/or processes.

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ClOThiNg aNd TExTilE COmpETiTivENESS prOgrammE (CTCp)

This incentive programme provides investment support to both local- and oreign-owned entities, by oering a cost-sharing grant incentive o 75% o project cost oncluster projects, and 65% o project cost or company projects.

CO-OpEraTivE iNCENTivE SChEmE (CiS)

The Co-operative Incentive Scheme (CIS) is a 90:10 matching cash grant or registeredprimaryco-operatives(aprimaryco-operativeconsistsofveormoremembers).

For more inormation visit: Te depatment Tae an Insty www.ti.gv.za

Contact us:

bn Sot afc:

103 Central Street, Houghton, Johannesburg, 2198, Gauteng, South Arica.

P.O. Box 87168, Houghton, 2041, South Arica.

Tel: +27 11 712 5000

Fax: +27 11 483 0124

E-mail: [email protected]

Web site: www.brandsoutharica.com

SA Web Portal: www.southarica.ino46

2088 business brochure a5 final

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