Tim Harris, Wesgro CEO Deloitte Western Cape Funding Fair 25 May 2016 An inspiring place to do business

Overview of Wesgro The Western Cape Economy Western Cape Trade and Investment Projects to Facilitate Growth An inspiring place to do business Presentation overview

Wesgro Official tourism, trade and investment promotion agency for the Western Cape businesses Funded by the Western Cape Government, City of Cape Town & Department of Agriculture Research and real time business intelligence drives our strategies An inspiring place to do business

Total investment secured R8,8 billion 5,705 direct jobs created across the Western Cape Province 939 companies participated in outbound missions to drive exports and 2,433 companies attended the Wesgro Export Development Programme Helped attract 7,1 million foreign tourists Wesgro Research published 589 reports on all aspects of the Western Cape economy Past 5-years of Wesgro An inspiring place to do business

The Western Cape Offering An inspiring place to do business

Western Cape: leading sectors ESTABLISHED COPORATE HEFT SECTORS THAT DIDN’T EXIST 30 YEARS AGO LABOUR INTENSIVE PRIORITY SECTORS RETAILFOOD & AGRIASSET MANAGEMENT GREEN ENERGYTECHBPO OIL & GASAGRIBUSINESSTOURISM

Western Cape GDP by sector, An inspiring place to do business Source: Quantec, – 71.3% Services sector: 2008 – 71.7% 2014 – 73.8%

The Western Cape Economy in Perspective An inspiring place to do business Source: IMF, 2016

The Western Cape: Local Market Growth An inspiring place to do business Total net migration into the Western Cape over the last decade reached Net migration from Gauteng totalled over the previous decade (46%) Net migration from the Eastern Cape totalled over the previous decade (30%) Source: StatsSA, 2015

The Western Cape: large differentials Source: StatsSA, 2015 Global economy is forecast to grow at 3.8% in 2015 (IMF). South Africa is forecast to grow at 2.5% (National Treasury) Western Cape is forecast to grow at 3.1% (BER). Western Cape unemployment was 10 percentage points lower than South Africa between Over the last year employment has grown by jobs or 6.2% y-o-y The WC also has the highest labour force participation rate of 70% Average 0,2% higher than national growth

The Western Cape: business confidence One of the best leading indicators for growth is business confidence The good news is that business confidence is decoupling from national An inspiring place to do business 36 43

The Western Cape: building plans approved Source: BER, 2016 An inspiring place to do business 19.9% 4.7%

Botswana R7bn US R6.8bn Namibia R12.4bn UK R8.9bn China R2.8bn Netherlands R7.3bn Western Cape Global Export Markets, 2015 Germany R5bn Kenya R2.4bn Zambia R2.4bn An inspiring place to do business

Western Cape top export products 2015 An inspiring place to do business Source: Quantec, Refined Petroleum(ZAR18.2bn) 2. Citrus (ZAR8.6bn) 3. Wine (ZAR8.6bn) 4. Apples & Pears (ZAR6bn) 5. Grapes (ZAR6bn) 6. Iron or steel (ZAR3bn ) 7. Fruit juice (ZAR2.2bn) 8. Fruit & nuts (ZAR2.1bn) 9. Tobacco (ZAR1.8bn) 10. Engine parts (ZAR1.6bn)

An inspiring place to do business Africa’s Top Imports in 2015 Source: Trade Map, 2016; Quantec, China (ZAR1.4trn) 2. France (ZAR404bn) 3. United States (ZAR337bn) 4. Germany (ZAR330bn) 5. India (ZAR326bn) 6. South Africa (ZAR316bn ) 7. Italy (ZAR268bn) 8. Spain (ZAR235bn) 9. Netherlands (ZAR180bn) 10. Turkey (ZAR162bn) Africa’s Source Markets The Western Cape would be classified as Africa’s 28 th largest source market, between Canada and Nigeria with ZAR43bn

Breakdown of FDI into the Western Cape An inspiring place to do business Source: FDI Intelligence, 2016

Wesgro providing empowerment opportunities for exporters 485 companies were assisted in 2014/15 through the Exporter Development Programmes 236 agribusiness companies 37 manufacturing companies Ghana 24 Mozambique 7 Brazil 27 Japan 19 Nigeria 23 Russia 25 Thailand 17 China 20 UAE 13 Cameroon 7 India 6 = no of companies Exporter Outward missions 2014/ companies were taken on outward selling missions

Priority Sector & Opportunity: Tourism The Western Cape reached a total of 1,569,195 tourist arrivals in 2013 and grew by 15.9% when compared to the 1,354,353 received in Growth in tourist arrivals to the province in 2013 more than doubled the annual national growth recorded in 2013 for South Africa (4.7%). In 2014, the European countries dominated in the top ten international markets ranking, with the United Kingdom and Germany leading as the top two international markets to the Western Cape. Six of the top ten markets represented Europe, underlining the strong performance of the region in An inspiring place to do business Source:SATourism, 2014

Cape Tech Health Park An inspiring place to do business Stimulate the growth of biotech & health innovation To provide infrastructure & support service offerings to stimulate innovation Clustering can stimulate growth of the sector

Cape Tech Health Park An inspiring place to do business

Cape Town non-stop airport connectivity 2015 An inspiring place to do business *Singapore Airlines is not represented here-direct to CPT but with a stop in JNB

Confirmed New Routes and Expansions An inspiring place to do business

Thank you | Dankie | Enkosi