The Home of Engineered Efficiency

1. The Home of Engineered Efficiency

2. Eastern Cape Location in South Africa • Centrality of coal to energy as an economic driver • Embracing regional geo-climatic conditions & oceanography

4. Eastern Cape overview • Located in south-eastern part of South Africa • Six district municipal areas and one metropolitan area, Nelson Mandela Bay • More than 60% of the province is rural • Urban nodes: Port Elizabeth (Nelson Mandela Bay) East London (Buffalo City Municipality) • Area 168,966 sq km • Population 6.65 million (3rd largest of nine provinces)

5. Eastern Cape Proximity to Gateways by Air

6. Eastern Cape Proximity to Markets by Sea

7. Main Sectors • Marine Aquaculture • Automotive & Automotive Components • General manufacturing • Agriculture & Agro-processing • Business Process Outsourcing & Offshoring (BPO & O) & Information Communication Technology (ICT) • Renewable Energy

8. State of Marine Living Resources Underexploited Swordfish Round herring Seaweeds Optimally Exploited Shallow-water hake Anchovy Sardine Albacore Yellowfin tuna Bigeye tuna Squid South Coast rock lobster Prawns Oysters (KZN) Kelps Overexploited, threatened, endangered or collapsed Deep-water hake Southern bluefin tuna Linefish (not individually listed) Netfish Abalone West Coast rock lobster Oysters (South Coast) Status uncertain Agulhas sole Cape horse mackerel Patagonian toothfish Sharks Some linefish White mussel Other invertebrates

9. Geographic Distribution of Mariculture in SA Key Finfish Farm Oyster Farm Abalone Farm Mussel Farm South Africa KwaZulu-Natal Northern Cape Eastern Cape Western Cape

10. Operational Farms • () finfish hatchery in Gansbaai on same premises of abalone farm, therefore not counted in the totals.

11. Overview Of Production in SA During 2010

12. Sub-sector Value of Mariculture production 2008-2010 (ZAR’millions)

13. Highlight of Government Interventions • 43 farm closure notices issued to shellfish farms in 2010; 31 west of Cape Point and 12 east of Cape Point. • Bio-toxins (Harmful Algal Blooms and Paralytic/Diarrhetic Shellfish Poison associated with upwelling), remainder due to presence of microbiological contamination (E. coli during high rainfall season).

14. Highlight of Government Interventions • No closures due to other hazardous substances viz. heavy metals, pesticides, PCBs and radionuclides although risk is significant on shellfish. • Aquaculture’s contribution to environmental change is considered to be minimal. • Environmental Management and Monitoring Framework for mariculture being drafted. • Sector specific strategy and incentives under consideration

15. Who is the East London IDZ? • Prime industrial park in South Africa founded in 2003 • Specially developed for growth oriented manufacturer and marine aquaculture investor in search of ultimate global competitiveness. • One of four IDZ’s which are a program of the national Department of Trade and Industry • PFMA Schedule 3D entity • Owned by ECDC & Buffalo City Metro • R3.7 billion worth of investment secured (30 investors). • Of these 21 are operational in the zone and in the last financial year a total of 1569 manufacturing and supporting services jobs were created.

16. Offering to Industries • Unparalleled environment and innovative industrial solutions • Access to new markets • Cluster approach enabling investors to focus on core business • PDF file

17. An Unparalleled Environment to Locate Mariculture Investments • Sub-tropical climate • Variety of indigenous species (seaweed, fin and shell fish) for food and ornamentation • Latitude to farm exotic species following specific authorization

18. Leased land (eight plots vacant), purpose built aquaculture top structures & offices upon request, designed and delivered to customer specifications • Affordable start up costs for land based grow out facilities: Rental holidays • Agriculture vs Industry

19. Accessible high quality bulk sea water supply at 85 litres/second and effluent handling based on at 85% water recirculation per farmer.

20. Access to fully-serviced sites (regular municipal and ICT services) with proximity to key transport nodes

21. An Unparalleled Environment to Locate Mariculture Investments • Favourable and dedicated institutional environment including policy and incentives • Vibrant and world class research and technical expertise • Dedicated 32 ha marine aquaculture cluster with Environmental Impact Assessment approval for indigenous marine fish farming already granted for at least 10,000 tons annually • ELIDZ site plan

22. Access to markets • Located on the south eastern sea board of South Africa • Rail, road and air access to major cities in South Africa and Africa • Opportunity to optimise trade agreements such as : • the Africa Growth and Opportunities Act (AGOA) for US market access • the South Africa-European Union Free Trade Agreement for EU market access • the South African Development Community Free Trade Agreements for the SADC market access.

23. Investment Opportunities Marine Aquaculture Sector Opportunities

24. Mariculture Investment Opportunities • The establishment of fin & shell fish hatcheries/grow-out as well as sea weed facilities, fish processing & animal feed production facilities • Exploration and piloting of sea based aquaculture farming • Two investors are already resident going through construction/expansion & pilot production. • Additional investment opportunities are available to partner with existing investors for further expansion. • Research and Development under the auspices of the Science & Technology Park

25. Marine Aquaculture Enterprises in the East London IDZ

26. Pure Ocean East London (Pty) Ltd • Breeding and grow-out of kob (Argyrosomusjaponicus) • Experimental breeding and rearing of yellow tail, bream, rock cod, etc

27. Oceanwise(Pty) Ltd • Breeding and grow-out of kob (Argyrosomusjaponicus) • African Aquaculture Holdings (now Oceanwise Holdings)

28. Future Plans to Improve Value Offering Business plan for an Aquaculture Business Incubator (Concept and Business Case Approved) • Reducing likelihood of enterprise failure • Increasing sector skills • Firming up investment pipeline for predictability.

29. Future Plans to Improve Value Offering Seawater Quality Monitoring Program • Fulfill local and destination market requirements for environmental sustainability and food safety. • Position fish farming in the ELIDZ to serve as a best practice for other aquaculture clusters/operations elsewhere. • Identification of strategic sea water inlet/outlet monitoring points throughout supply/discharge reticulation. • Motivate the significance of each of the identified monitoring points. • Specify the elements/compounds to be monitored and threshold concentration for each of the elements/compounds. • Specify the frequency of monitoring. • Aerial Photo

30. Future Plans to Improve Value Offering Feasibility of leveraging the Agulhas Current for electricity generation • Reducing the carbon footprint of land based mariculture with potential to extend benefits to other sectors in the regional • Contributing to the energy mix • Stabilizing price and supply • Potential to play into the carbon trade

31. Future Plans to Improve Value Offering • Oxygen Generation Plant • Fish Feed Manufacturing Facility • Fish Processing Facility • Aquatic Animal Health Clinic • Waste Management (Fish Farm Sludge) • Feasibility of leveraging the Agulhas Current for electricity generation • Cost benefit analysis - a dedicated offshore effluent outfall vs existing municipal facility

32. All you need for marine aquaculture business in one zone Contact Ntobeko Bacela: Sector Manager – Aquaculture ntobeko@elidz.co.za Tel: +27 43 702 8213 Cell: +27824593412 Fax: +27 43 702 8251 www. elidz.co.za