Free State Trade & Investment Opportunities: Invest in the Heart of South Africa

1. FREE STATE TRADE & INVESTMENT OPPORTUNITIES “ INVEST IN THE HEART OF SOUTH AFRICA”

2. PRESENTATION STRUCTURE TABLE OF CONTENTS 1. Overview of Free State 1.1. Free State Province Fact Sheet, 1.2. Free State Province Business Environment, 1.3. Free State Key Sectors, 1.4. Free State Economic Performance Relative to South African Economy, 1.5. Sector Performance of the Free State Economy, 1.6. District Contribution to the Provincial Economy 2.INVESTMENT OPPORTUNITIES ( INVESTMENT PROJECTS) 3. EXPORT POSSIBILITIES – EXPORT PRODUCTS & KEY CONTACTS 4. COOPERATIVES 5. AREAS OF ASSISTANCE FROM MISSIONS 6. SOME KEY CONTACTS

3. FREE STATE FACT SHEET OVERVIEW OF FS - FACT SHEET –FREE STATE

4. SOUTH AFRICA – FACT SHEET - MAPS SOUTH AFRICA’S PROVINCES • Gauteng 6. Eastern Cape • North West, 7. Western Cape • Limpopo, 8. KwaZulu-Natal • Mpumalanga , 9. Free State • Northern Cape FACT SHEET –SOUTH AFRICA - MAPS

5. SOUTH AFRICA’S BUSINESS ENVIRONMENT Economic stability & sound macro-economic management Abundant natural resources Competitive sectors/industries Excellent transport & logistical infrastructure Skills availability World class financial system Favourable cost of doing business ALSO APPLIES TO FREE STATE

6. SOUTH AFRICA’S AND EMERGING MARKETS ALSO APPLIES TO FREE STATE • South Africa and China • China is the top most destination for South Africa’s Exports and leading source of imports, • South Africa exports minerals and resource intensive products to China (metals, minerals and other commodities), • Imports a wide range of value added projects from China ( Clothing, data processing machines, printing machinery, bull dozers and motor vehicles ). • Leader in intra-Africa Trade • Emerging partners use South Africa as a gateway to other African countries • African countries are becoming g increasingly important as they account for 8,4% of South Africa’s imports and 14,4% of its exports ( 3rd Quarter 2010) • Electricity and other infrastructure bottleneck • Some Economic Challenges • Manufacturing exports impacted by rand’s appreciation and are vulnerable to global business cycle, • Increasing unemployment and inequality, • As the EU is still South Africa’s topmost regional export destination, so the challenge is to avoid neglecting traditional partners while nurturing strategically important relationship • with emerging partners.

7. FREE STATE KEY SECTORS FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE • 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)

8. PROVINCIAL CONTRIBUTION SOUTH AFRICAN ECONOMY 2011 Source : Stats-SA-2010 FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE 2.3% 7% 33.7% 6.7% 15.8% 5.5% 7.7% 14.1% 7.2%

9. SECTORAL CONTRIBUTION FREE STATE PROVINCIAL ECONOMY -2010- Source : Stats – SA. FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE

10. OVERVIEW OF THE FREE STATE ECONOMY DISTRICTS CONTRIBUTION TO THE PROVINCIAL ECONOMY FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE

11. FREE STATE EMPLOYMENT STATISTICS PER SECTOR (Source : Provincial Treasury, 2011) FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE

12. FS INTERNATIONAL AREAS OF COOPERATIONMOU’S & LETTERS OF INTENT FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE

13. FS INTERNATIONAL AREAS OF COOPERATIONMOU’S & LETTERS OF INTENT – CONT- FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE

14. FS INTERNATIONAL AREAS OF COOPERATIONMOU’S & LETTERS OF INTENT – CONT-

15. FS INTERNATIONAL AREAS OF COOPERATIONMOU’S & LETTERS OF INTENT – CONT-

16. FS – STATE PROVI NCE – COMPETITIVENESS FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE • Open to business trade and foreign investments; • Free State offers diverse and abundant natural splendour and a year-round temperate climate; • Excellent living standards and medical services; • Superb recreational and cultural activities; • Good educational facilities pre-primary to tertiary; • Various tourist attractions facilities; • Excellent sporting facilities; • the best value for money in terms of food prices, transport costs, school fees, property rental and ownership costs, and alcohol and cigarettes, compared to other major cities world-wide; • Most developed telecommunications network in Africa, major players are Vodacom, MTN , Cell C, Telkom & Neotel. TARGETED SECTORS FOR FOREIGN DIRECT INVESTMENT • Farm machinery and equipment • Leather tanning and finishing • Gold jewellery and beneficiation • Floriculture • Petrochemicals • Pharmaceutical research and development

17. FREE STATE KEY SECTORS FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE Agro-processing Chemicals Call Centre & BPO Textiles, Leather & Footwear Tourism & Real Estate Mining Pharmaceuticals Renewable Energy Logistics & Transport Wood, Paper & Furniture Medical Services

18. TARGETED SECTORS TO DRIVE ECONOMIC GROWTH & DEVELOPMENT FREE STATE PROVINCE AGRI-PROCESSING SECTOR TRANSPORT AND LOGISTICS SECTOR ENTERPRISE DEVELOPMENT PROPERTY AND INFRASTRUCTURE RENEWABLE ENERGY SECTOR MANUFACTURING SECTOR MEDICAL & PHARMACEUTICAL SECTOR • Xhariep Solar Hub • Botshabelo Solar Water Geysers • Integrated Beef Project (Motheo) • Odendaalsrus Integrated Poultry Project • Harrismith Food Processing Park • Harrismith Vehicle Parts & Accessories Distribution • Revitalization of the Ratlou • Revitalization of the Confram • Construction of Clinics for the department of Health • Construction of affordable houses for low/middle income earners • Establish Coffin Manufacturing Enterprise in Parys • Implementation of the Incubation Programme for Small Enterprises (HFF) • Funding enterprises in the following sectors – manufacturing, agro-processing, renewable energy, medical and pharmaceutical sector • Bio-Technology Park • Sasolburg Injection Molding Extrusion Plant • Frankfort Kraft Manufacturing Facility FACT SHEET –OVERVIEW OF FREE -STATE PROVINCE CONTRIBUTION THROUGH INVESTMENTS, ENTERPRISE, PROPERTY AND INFRASTRUCTURE PROJECTS INVESTMENT PROJECTS

19. FS CONTRIBUTION OF THE AGRICULTURAL SECTOR INVESTMENT PROMOTION PROGRAMME

20. 2. 1. N8 CORRIDOR DEVELOPMENT N8 CORRIDOR PROJECTS N8 COMPLETED PROJECTS • Revitalization of Thaba Nchu and Botshabelo Industrial Parks • Site for Proposed SEZ • Bio-Medical Park • SWH, • Solar Panels Manufacturing, • Industrial, Commercial , Retail Estates • and mixed housing Developments , • Telecommunications Infrastructure • Expansion of Bloemfontein Airport, • Upgrading of Free State Stadium • Development of Eden & Mandela Park Housing Development • Projects in progress • N8 Gate way development • Infrastructure Upgrading • New 5 Star Hotel and a Conference Centre, INVESTMENT PROMOTION PROGRAMME

21. Harmona Railway Siding AIRPORT NE Purification Works Naval Hill Reservoir Estoire Township Development NODE BOB ROGERS PARK TRANSNET FREIGHT RAIL INDUSTRIAL PARK HILTON EARMARKED FOR MANGAUNG SEZ ESTOIRE INDUSTRIAL PARK Fresh Produce Market Mangaung Freedom Park Raceway Township Sunnyside Mixed Land Use Dev Schoeman Park Sports Facility Clover substation GOLF FACILITIES Quarry EAST ENDINDUSTRIAL PARK ASHBURY COROBRIK THE SPATIAL VIEW OF THE N8 CORRIDOR

22. 2. 2. FOOD PROCESSING PARK – HARRISMITH 1.5. Employment Opportunities • The feasibility report estimated that 626 permanent jobs will be created when the park is fully operational. 1.4. Budget • Project facilitation Budget is R30 million over 3 years. 1.3. Feasibility Study Status • Feasibility study completed, • Required project investment value R 226 million. 1.2. 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. INVESTMENT PROMOTION PROGRAMME 1.1. 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 2.5 Billion. 1.6. 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. 1.7. 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.

23. TSHIAME (INDUSTRIQWA) INDUSTRIAL PARK FOOD PROCESSING PARK BASIC LAYOUT

24. FOOD PROCESSING PARK BASIC LAYOUT

25. 2. VEHICLE DISTRIBUTION CENTRE – HARRISMITH 2.5. Employment Opportunities 2.4. 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 2.2. 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. INVESTMENT PROMOTION PROGRAMME 2.1. 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. 2.3. Feasibility Study Status • Feasibility study completed, • Required project investment value R 250 million. 2.6. 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. 2.7. 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.

26. VDC ADMINISTRATION OFFICES AND THE PROPOSED VDC LAY-OUT

27. 3. PARTS & ACCESSORIES CENTRE – HARRISMITH 3.5. Employment Opportunities 3.4. 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. 3.2. 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. INVESTMENT PROMOTION PROGRAMME 3.1. 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. 3.3. Feasibility Study Status • Feasibility study completed, • Required project investment value R 120 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 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.

28. 4. 1. GREEN ECONOMY – XHARIEP SOLAR PARK ) 4.1.4. Budget • Project facilitation Budget is R4m 4.1.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments had been conducted. 4.1.2. 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 INVESTMENT PROMOTION PROGRAMME 4.1.1.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 150MW solar farm in Harrismith. The opportunity also exist to expand solar farm projects. . 4.1.3. Feasibility Study Status • Not completed • Required project investment value is estimated at R 1,8 Billion- R 2,2 Billion 4.1.6. Investors role • To establish and operate a 250 MW solar farm • ( Xhariep) with a phased expansion of upto 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. 4.1.7. Project Location • Xhariep District, Kopanong and Letsemeng ,

29. 4. 2. GREEN ECONOMY – ORGANIC WASTE TO FERTILISER 4.2.4. Budget • Project facilitation Budget is R200,000 4.2.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments had been conducted. The project is estimated to create 30 jobs when fully operational. 4.2.2.Rationale • To promote the deployment of clean energy technologies • To maintain a clean environment, 4.2. 1. Project Description To process tons of organic waste (chicken manure, chicken waste, vegetable waste, slaughter waste and saw dust into organic fertiliser within in 24 hours and the processing of 750 tons of municipal and commercial waste into electricity for both on-grid and off-grid supply. INVESTMENT PROMOTION PROGRAMME 4.2.3. Feasibility Study Status • Not completed • Required project investment value is estimated at R 130 million. 4.2.6. Investors role • To acquire up to 40% stake in the envisaged Mirivales South African Operations • To secure municipal land fill sites for setting up operations 4.2.7. Project Location • Bloemfontein • Mangaung Metropolitan Municipality,

30. 5. N8 CORRIDOR – MANGAUNG BIO-MEDICAL PARK 5.4. Budget • Project facilitation Budget is R4 million, 5.5. Employment Opportunities • The employment opportunities and jobs to be created will be determined after detailed feasibility assessments have been conducted. 5.2. 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 INVESTMENT PROMOTION PROGRAMME 5.1. 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. 5.3. Feasibility Study Status • Not completed • Required project investment value is estimated at R 400 million. 5.6. 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. 5.7. Project Location • Bloemfontein, Mangaung Metropolitan Municipality.

31. 6. ORGANIC FERTILIZER 6.4. Budget • Project facilitation Budget is R250.000 6.5. 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. 6.2. 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. INVESTMENT PROMOTION PROGRAMME 6.1. 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. 6.3. Feasibility Study Status • Pilot feasibility study completed • Required project investment value is estimated at R 435 million. 6.6. Investors role • To take stake or equity in existing operations 6.7. Project Location • Thabo Mofutsanyana, Maluti-A-Phofung, Harrismith

32. 7. INTEGRATED BEEF PROJECT 7.4. Budget • Project facilitation Budget is R300.000 7.5. 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. 7.2. 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 INVESTMENT PROMOTION PROGRAMME 7.1. 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. 7.3. Feasibility Study Status • Conceptual Notes Developed • Required project investment value R 200 million. 7.6. Investors role • To invest in value chain operations within the cluster. 7.7. Project Location • Motheo , Bloemfontein, Zastroon, Marquard

33. 8. TOURISM INDUSTRY CLUSTER

34. 8.1. EXISTING NATURE RESERVES , RESORTS & TOURISM OPPORTUNITIES

35. 9. EXPORT OPPORTUNITIES

36. 10. COOPERATIVES

37. 11. FS EXPORTS

38. AREAS OF ASSISTANCE FROM MISSIONS TABLE OF CONTENTS • Forward information monthly to IPA’S on products required ( export products) and potential investment leads from the countries where they are based, • Assist in planning outbound missions programme by identifying companies to be targeted for specific investment opportunities, • Provide hosting facilities for small delegations comprising of specific foreign company and South African delegation, • Provide mission pre-briefing sessions to the incoming IPA’s and SA business delegations on the cultural artifacts ( Do’s and Don’ts ) in the Foreign • Forward their approved outreach calendar before the end of the 1st Quarter every • year to a specific Consulate Office to facilitate joint planning of outbound • missions and even to recommend for a dispatch of a technical advance team, • Forward provincial investment, tourism and export opportunities promotional • materials to all consul general office and embassies MISSIONS IPA’S

40. THANK YOU