SOUTH AFRICA INVESTMENT CONFERENCE 2018 INVESTMENT … · Invest SA, IDC and the Secretariat for the South Africa Investment Conference as to the accuracy or completeness of any of

SOUTH AFRICA INVESTMENT CONFERENCE 2018

INVESTMENT PIPELINE

SOUTH AFRICA INVESTMENT CONFERENCE 2018

INVESTMENT PIPELINE

Disclaimer for the Investment Pipeline

This document contains information related to investments (or potential investments) compiled by Invest SA and the Industrial Development Corporation of South Africa Limited (“IDC”), as the Secretariat for the South African Investment Conference (“SAIC”). No representation or warranty, express or implied, is made by Invest SA, IDC and the Secretariat for the South Africa Investment Conference as to the accuracy or completeness of any of the information contained herein or any other written or oral communication transmitted or made available to a prospective investor. Nothing contained in this booklet is, or shall be relied upon as, a promise or representation, whether as to the past or the future performance of the investments listed herein.

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2

3

Investment Size

Project Readiness

Approval by Sponsors

• Greater than 50 million investment requirement

• Only those projects approved for publication by the project sponsors are included in the investment pipeline

• The project should be in at least the bankable feasibility stage of development

• The project sponsors provided a qualitative assessment of the technical, marketing, financial and regulatory readiness of the project. Projects with significant issues were excluded

Selection process and criteria for listed investment opportunities/projects1.

Scoping

• Desk top study/screening to determine if there is a potential business case

• Investigate different options.

• Narrow down best option. Determine a business case

• Refine the selected option to improve the business case and finalise financial structure

• Setting up of construction site, employment of personnel and training

• Construction of plant and infrastructure commissioning

Bankable Feasibility Pre- Implementation ImplementationPre- feasibility

250

Total pipeline Unpublished investment pipeline (Rbn)

Published investment pipeline (Rbn)

Published investment pipeline (Rbn)

140

110

1102% 2%

6%11%

18%

62%

ManufacturingAdvanced ManufacturingGreen EconomyResource Based IndustriesInfrastructureServices

Explanation of Project Development Stages Published investment pipeline

Investment pipeline summary

2. 4.

3.

# Sector Sub-sector Project Status Project Description

Province/ Country of

Origin

Investment Opportunity (R millions)

1 Advanced Manufacturing Aerospace Bankable

feasibility

• Together with strategic partners, the project aims to develop a South African owned commercial helicopter and other specific aircraft that can be distributed into Africa, South America, the BRICS countries and eventually internationally. These aircraft can be militarised however the primary focus is on developing a lighter, energy efficient aircraft. The concept also includes the establishment of an aircraft recycling operation in Upington, the development of a new training academy for both commercial pilots as well as a skills development centre for maintenance technicians and engineers for all aircraft types servicing Southern Africa.

Northern Cape 1,000

2 Advanced Manufacturing Chemicals Implementation • Expansion of existing flourchemicals production facility. North West 60

3 Advanced Manufacturing Chemicals Pre-

implementation

• This project entails the established of a 20,000 ton per annum nano-precipitated calcium carbonate (NPCC) plant in Kwazulu-Natal. This will be the first commercial scale nanomaterials project in South Africa, licensing technology that was originally developed in China and is now being licensed out of Singapore. The locally produced product will partially displace imported titanium dioxide and chlorinated polyethylene which are currently used in the paint and plastics industries. The Bankable Feasibility Study (BFS) has been concluded and outside investors are being solicited for co-investment. The project is currently 51% owned by two black industrialists. The company secured an exclusive production and distribution license for Africa and the Middle East from the technology provider.

Kwazulu-Natal 200

4 Advanced Manufacturing Pharma Bankable

Feasibility

• The facility aims to be a world class innovation facility which will culminate in the co-location of innovative firms, government, academia, health innovation programmes, and business & innovation support organisations, all of which will incorporate the principles of high-performing Knowledge-based Bio-Economy (KBBE) cluster in a purpose-built facility. The targeted Health Technology Industries are, Medical Devices, Digi-health, Bio-Tech, Pharmaceutical and Indigenous Medicines.

Western Cape 650



Origin


5 Advanced Manufacturing Pharma Pre-

implementation

• The plant will initially produce a total of 250 million syringes and 200 million hypodermic needles per annum. The funders commenced with a R7.2 million feasibility study funding in 2013 and earlier this year made a further commitment towards the construction of the plant bringing the funders total investment to R75 million. The internal rate of return (IRR) is 18.6%

Eastern Cape 200

6 Green Economy Clean Energy Bankable feasibility

• The project entails biorefinery of Sweet Sorghum (Imfe) syrup to biodegradable, renewable biomaterials (Bagasse; BioEthanol; Farnasene; BioGas) that can be processed to bioelectricity, heat and power, biofuels, bio-base oils, renewable jet fuel, renewable diesel, with CO2 and bio-Fertiliser as sellable by-products. Whilst the bioethanol policy is in discussion, the Project Promoter has prioritised production of bio-degradable lubricants from sweet sorghum. This initiative is supported by a technological partner from the USA.

Kwazulu-Natal 5,000


• The company won a tender to establish a Biogas plant to convert sludge waste to energy (2.5 Mwh). Later in the project the company will treat waste to water which will be sold to industrial users.

Eastern Cape 80

8 Green Economy Clean Energy Bankable Feasibility

• Implement a pyrolysis plant at the largest pig abattoir in the Western Cape using abattoir waste as feedstock to dispose of waste, and provide electricity & heat.


• The project entails the development of an industrial scale Biogas Plant. The company currently supplies an automotive manufacturer with circa 1/3 of its power requirements. The company plans to construct a new facility in Centurion. This project will remove 500 tons of organic waste per day from the west of Tshwane, alleviating load on landfills.

10 Green Economy Waste Economy Implementation

• This is a new breakthrough avenue in waste materials processing that is the combination of a 900 km/h vortex, extreme high-pressure pneumatics, acoustics and an impellor blade that combine to break materials down to micron sized particles. This equipment will be used to process materials such as waste slurry or ultra-fine coal that can be utilized in industry. The company has already signed an agreement to manufacturer the vortex machines for their global supply chains. There is currently 125 units that have been ordered in Australia and with more orders expected.



Origin


11 Infratructure Transport Infrastructure

Bankable feasibility

• This project aims to expand the capacity of the rapid rail system. The expansion comprises acquisition of new rolling stock trains, expansion of depot facilities to maintain the new trains and upgrades to the existing signaling and train control system to allow for increases to the train service.

12 Infrastructure Water Infrastructure


• The project entails the construction and supply of a bulk water distribution system to meet the current and future economic needs (mining developments) and social community needs within the Limpopo Province. It is designed to be implemented in phases. Since its inception in 2004, the project was designed as a shared project between social and commercial users on a 50:50 cost sharing basis. To date the government through the Department of Water Affairs and Sanitation (DWS) has provided funding towards the various phases as part of its 50% commitment to cater for the social component of the project and requires off-balance sheet funding to be raised from the market on the back of Water Supply Agreements between DWS and the mining companies to finance the remaining 50% capital commitment relating to the commercial aspect of the project.

Limpopo 6,600

13 Infrastructure Energy Infrastructure


• The project entails a 400KV transmission line between Watershed in South Africa and Isang in Botswana

South Africa/Botswana 5,700

14 Infrastructure Telecoms Infrastructure Implementation

• This project aimed at providing broadband connectivity services to 41,346 Government facilities countrywide (including schools, clinics, hospitals, police stations, rural development sites and other government offices). The objective of the programme is to address broadband challenges (such as broadband infrastructure gaps and high cost to communicate amongst others) and to enable economic growth through the rollout of broadband infrastructure and large scale use of broadband is services. To ensure successful rollout of broadband, the programme has been divided into two, Phase 1 and Phase 2. Phase 1 will provide broadband connectivity services to 6,135 government facilities in 8 underserved municipalities. Phase 2 will provide broadband connectivity services to the rest of the municipalities. A combination of MTEF allocations and PPP funding will be used to fund the project. Current funding requirement is for Phase 1.

Gauteng 1,200



Origin


15 Infrastructure Infrastructure Bankable feasibility

• Development of Industrial Park to support the mining sector in the Northern Cape. Northern Cape 550

16 Manufacturing FMCG Bankable feasibility

• The manufacturing facility will be the first majority black women owned condom manufacturing facility in South Africa. It is envisaged that the facility will produce 70 million condoms and will supply South Africa as well as the rest of the continent.

Gauteng 60

17 Manufacturing FMCG Bankable feasibility

• The project involves the manufacture of male and female condoms and lubricants. The foreign partner will contribute an amount not less than 20% of capital equipment requirements for the project, full IP, skills training and transfer as well as per annum offtake of product of USD 10 million. The company will also look for opportunities to win government tenders and supply the local retail industry.

Free State 220

18 Manufacturing Metals Fabrication


• Construction of a steel thin strip mill. A Manufacturing plant of 5500 square meters is planned with auxiliary space for truck movement, landscaping and future expansion. At full operation, the plant will produce 9 000 tons/year Precision Strip generating annual sales revenue more than R500 million ($37 million).

Kwazulu-Natal 184

19 Manufacturing Metals Fabrication


• Construction of a steel thin strip mill. A Manufacturing plant of 5500 square meters is planned with auxiliary space for truck movement, landscaping and future expansion. At full operation, the plant will produce 9 000 tons/year Precision Strip generating annual sales revenue more than R500 million ($37 million).

Eastern Cape 620

20 Manufacturing Clothing and Textiles


• Implementation of turnkey project in the cotton industry. Currently a shortage exists for locally produced processed cotton. The intended spinning mill have a capacity of 8000 tons per year. The mill will supply South Africa and rest of Southern Africa. Through the implementation of new technology, efficiencies and competitiveness are enhanced with vertical integration an opportunity.

Northern Cape 450



Origin


21 Manufacturing Rail Bankable feasibility

• The aim of the project is to manufacture and operate side tipper intermodal wagons that are largely used in coal mines, railways as well as at the harbour ports. The manufacturing plan will be established in Durban. The innovative Intermodal Tipper Wagons are easily loaded onto rail or rail transportation by means of a container handler. In areas that are not serviced by rail the Intermodal Tipper bins can be loaded onto road transportation. Cargo is quickly and efficiently offloaded by using a hydraulic tipping arm. The use of rail for bulk transport of goods is more efficient and saves money. The tipper wagons can be used across different modes of transport without double handling cargo. This results in easier material handling, zero cargo loss and includes weather-seal tarpaulin covers.

Kwazulu-Natal 400

22 Resource Based Industries Agro-Processing Bankable

feasibility• Establishment of a community commercial 1650 ha forestry

plantation in Qumbu, Eastern Cape. Product will be round logs. Eastern Cape 109

23 Resource Based Industries Agro-Processing Pre-

implementation• Establishment of a commercial forestry plantation and round

log/woodchip export facility in Mozambique Mozambique 186

24 Resource Based Industries Agro-Processing Bankable

feasibility

• The project intends to develop a tomato processing plant to produce tomato paste integrated with a tomato growing facility. The facility would be the first of its kind in South Africa with a capacity to grow 3000 hectares of tomato and produce ca. 7500 tons of tomato paste per annum. The financier has injected R7.3 million into the project. An expected annual internal rate of return (IRR) of 18% expected.

Kwazulu-Natal 500

25 Resource Based Industries Agro-processing Implementation

• The National Red Meat Development Programme (NRMDP) phase 1 has developed formal (abattoir sales, auctions) and informal (stock sold locally) market linkages that have seen households generating higher incomes. The programme successfully established farmers to sell beyond the farm gate where they can be part of existing value chains. Phase 2 seeks to engage farmers at an Agribusiness level with them supplying sustained markets over a minimum three (3) years. The agribusiness approach will increase the income generated by a further 40% of the current revenue. Phase 2 will be completed in March 2021.

Kwazulu-Natal, Mpumalanga and North West

60



Origin


26 Resource Based Industries Agro-processing Bankable

feasibility

• An attractive opportunity exists to develop a specialist Halal Industrial Park of approximately 18 hectares in the Klapmuts area near Stellenbosch. One of the sites most significant attributes is its location directly adjacent to the N1 National Freeway, accessing a strategic major corridor.

Western Cape 46


Feasibility

• An attractive opportunity exists to develop a specialist Halal Industrial Park of approximately 67 hectares in the Lynedoch area near Stellenbosch. The area is envisioned as a Western Cape Halal Industrial Park that has the potential to act as a manufacturing hub. The Lynedoch site is strategically located in the Boland area, the agricultural heartland of the Western Cape.

Western Cape 598


Feasibility

• The proposed site is a 16ha parcel of land which is strategically located approximately 2km east of Cape Town International Airport. The proposed development is envisioned as a Western Cape Halal Hub that has the potential to act as a regional distribution centre for time-sensitive, high value goods that require air freight. The site attributes lend itself to the consolidation of activities rather than large scale production, and thus is envisioned as a Halal distribution hub. The site has general industrial 1 zoning.

Western Cape 155


Feasibility

• An opportunity has been identified to grow the local dairy industry and tap into global dairy market by establishing a multi-disciplinary plant, the Estcourt Industrial Park, in the rural town of Estcourt, KwaZulu Natal Province (KZN). The objective of the Estcourt Industrial Park is to invest in technologically advanced production facilities that would include:

a) New milk powder tower to produce skim milk powder, whole milk powder and fat filled powder (with the latter two products not currently being produced by any processor in South Africa);b) Investment in a cheese factory to expand existing capacity; and expanded capacity to produce butter.

Kwazulu-Natal 1,400

30 Resource Based Industries

Minerals Beneficiation


• Development of a greenfield ferrochrome smelter based on DC Arc smelting technology near Thabazimbi, Limpopo Province. Limpopo 3,400

31 Resource Based Industries

Minerals Beneficiation Implementation

• Development of a coal mine with a mine life of 45 years. It will produce 800,000 tons per annum of hard coking coal and 1 million tons per annum of export grade thermal coal.

Limpopo 1,300



Origin


32 Resource Based Industries Mining Pre-

implementation

• Development of a large opencast coal mine near the town of Lephalale in the Limpopo Province. The mine will produce both local and export grade thermal coal.

Limpopo 4,200

33 Services Oil and Gas Implementation

• The project involves a 20-year concession over 24.4 hectares of land for the operation of an Offshore Supply Base. This will entail the provision of services and refuelling to the offshore and maritime sector. The base will operate within the designated Saldanha Bay Industrial Development Zone, one of the special economic zones in South Africa. Its location will offer value-adding incentives and improved operational efficiencies through the IDZ’s customs controlled area (CCA), or “Freeport” customs regime. Refurbishment of the quayside was completed in Nov 2017 and Facility Operator Agreement was signed in April 2018. Early Access is expected in Nov 2018.

Western Cape 1,800

34 Services Oil and Gas Implementation

• Greenfield facility to store, blend and process various fuels for re-export into the African market while transferring transport from road tankers to railway infrastructure. The facility will operate within the designated Saldanha Bay Industrial Development Zone, one of the special economic zones in South Africa. Its location will offer value-adding incentives and improved operational efficiencies through the IDZ’s customs controlled area (CCA), or “Freeport” customs regime. EIA for pipeline and storage of fuels/liquids expected to be complete in Jan 2019. Construction to start in Feb 2019.

Western Cape 550

35 Services Oil and Gas Bankable feasibility

• The development of an onland helium gas field project. The gas field benefits from having arguably the world’s richest helium concentrations, with the last well showing 11% helium where global average is around 0.5%. The natural gas emanating from the wells, mainly methane, is generated by bacteria, and as such the project is considered renewable owing to the regenerative nature of the methane. The helium discovery would see South Africa become one of only 8 countries in the world with the gas, and would mean valuable exports for the country.

Free State 500



Origin


36 Services Property Development


• The implementation of a 2000 hectare integrated human settlement development strategically located on the SIP2 corridor. The development is envisaged to be a key economic hub for the currently under-serviced Outer West region within the eThekwini Municipality. The development will be anchored by a regional shopping centre, mixed-use, residential, industrial and commercial/business assets. The first land transaction is for the development of an 85 000 square metre regional shopping centre that is planned to commence in 2021. The development will begin with the mixed-use retail and urban core precinct with the regional shopping centre as the central anchor. Design reviews have been initiated for the regional shopping centre. The overall development is projected to take around 15 to 20 years to complete.

Kwazulu-Natal 8,000



• This coastal estate development overlooks the Indian Ocean, with over R400 million value of sales to-date. The 140-hectare development is a combination of freehold and sectional title units, offering beach access. The estate includes pristine indigenous forest and natural wetland, to be developed with over 600 homes. The investment value for entire project is R2.5 billion. The first phase comprises 19 up-market sectional title units and the related investment of R320 million is to be phased over a period of 3 years.

Kwazulu-Natal 320



• The project entails the development of a family focused residential estate fronting onto the Nkutu river and is focused on providing residential units at below R1 million as there is limited accommodation available in this price range. The 14-hectare development comprises 360 sectional title units within a protected grassland, wetland and river reserve. The overall project investment will be R300 million, to be phased over a period of 3 years.

Kwazulu-Natal 300



• The development of an Estate that will comprise of 750 residential opportunities. The Estate will be a residential mixed land use offering freehold, sectional-title and retirement accommodation opportunities. The 16-hectare site overlooks the Durban Metropolitan Open Space conservation node and fronts onto the Nkutu river.

Kwazulu-Natal 700



Origin



Pre-implementation

• The project entails a mixed-use type development with 430 residential units, 200 hotel keys and 500m2 of retail bulk, with the infrastructure being in place. The project has received all necessary approvals; it is in Pre-contract Phase and all bulk services are in place.

Kwazulu-Natal 900


Bankable Feasibility

• The project entails the establishment of a 190-key hotel graded three-star. The total Capex is R325 million. A full Turnkey building partner for the project has been selected.

Kwazulu-Natal 325



• The purpose of the project is to build a tourism. The development is set up in two major phases with developmental goals in each phase to ensure adequate growth and continued sustainability over time. Phase 1 has now been completed and is operational featuring an outdoor lift system that ferries people up and down the cliff face into the forest environment below, where various elevated and ground walkways allow visitors to explore the unique environment. Supporting this outdoor lift system is a newly constructed tourism centre that provide a multitude of tourism products and services, including a restaurant, bar, retail outlets, kids play area and centre management offices that will support the entire development. Phase 2 of the project will include the development of a 90 Bed 4 Star graded Hotel. Project is currently capital raising for the bankable feasibility study. The expected internal rate of return after 9 years is 16%.

Mpumalanga 85



• Featuring world-class beachfront ambience, the project will include mixed-use developments, residential units, retail outlets and restaurants, 5-star & 6-star Hotels, A-grade & P-grade Office Blocks, and a Beachfront Promenade with public amenities. This development will take place over a period of 15 years and development will be done in phases. The project has received all development approvals and Phase 1 Infrastructure (Bulk Water & Sewer) was completed in October 2017. The beachfront promenade is under construction (approx. 750m in length & 35m in width).

Kwazulu-Natal 1,900



Origin


44 Services Property development


• The Project is situated on 621 hectares of land. It is a mixed-use development with manufacturing, industrial parks, warehousing, distribution, retail / wholesale facilities, residential & mixed housing, offices and medical & wellness clusters & hospitals. The shareholders have financed the project to date and are looking for funding going forward with the project, including equity. The investment value of the project is for land, infrastructure and top structures, over a 20 year period (consisting of 11 phases).

Kwazulu-Natal 6,900


Bankable feasibility • Building new townships in Hazeldean, Pretoria Gauteng 44,000

46 Services Property Development Implementation

• This project entails the development of a comprehensive, integrated coastal resort estate offering seven nodes of development, over 1100 hectares, 3.2 km of coastline, 2.9 km of river frontage and 320 hectares of pristine indigenous forest; including 5,000 homes, more than 30,000m2 of retail, and extensive resort opportunities. To date in excess of R500 million of private investor funds have been invested into the creation of this Development. About to commence construction.

Kwazulu-Natal 1,500

Mr Yunus Hoosen - Head: InvestSAE: [email protected]: +27 (0) 12 394 1032

Ms Johanna Lengwati - Personal AssistantE: [email protected]: +27 (0) 12 394 1959

www.investsa.gov.za

Documents

SOUTH AFRICA INVESTMENT CONFERENCE 2018 INVESTMENT … · Invest SA, IDC and the Secretariat for the South Africa Investment Conference as to the accuracy or completeness of any of