PRESENTATION TO THE PORTFOLIO COMMITTEE ON Industrial Parks Revitalization Programme PRESENTATION TO THE PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY 21 September 2016

1. INTRODUCTION A structured programme for the revitalization of industrial parks located in the old industrial areas across the country was initiated in September 2015. The programme has identified the first ten (10) state owned industrial parks to be revitalized. The programme focuses on both the physical infrastructure and other support requirements in line with outcomes four (4) and six (6). the dti has forged strategic partnerships for the implementation of the programme on a national scale. The first phase covering six (6) industrial parks has been initiated.

2. RATIONALE FOR THE REVITALIZATION PROGRAMME To revitalize South Africa’s state owned industrial parks enabling them to serve as catalysts for broader economic and industrial development in their host regions (townships and rural areas). To modernise the industrial parks infrastructure and upgrade security features to ensure a safe and secure working environment for both firms and clients. To redesign the industrial park layout and enhance the visual appeal of park for investor attractiveness. To firm up the industrial park boundaries so as to curb encroachment and prevent environmental hazards.

3. OBJECTIVES To accelerate economic development in the lagging regions by attracting business investments to locate in the areas. To support job creation in manufacturing and related sectors so as to arrest negative externalities associated with urban congestion. To remove barriers related to infrastructure, market access and support firm level competitiveness. To provide new opportunities and support the high growth in the townships, rural and distressed areas. To assist regions to build, strengthen and develop strategic industrial capabilities. To develop sustainable industrial clusters on the back of the old industrial assets in those regions.

4. PORTFOLIO OF INDUSTRIAL PARKS …

4. PORTFOLIO OF INDUSTRIAL PARKS …

4. PORTFOLIO OF INDUSTRIAL PARKS …

4. PORTFOLIO OF INDUSTRIAL PARKS

Phase 1: Security infrastructure upgrade, fencing, street lighting, top structures & critical electricity requirements. 2015/16-2016/17 Phase 2: Engineering designs and construction of new and existing roads, bulk water supply and sewage treatment plants or industrial effluent control 2017/18 Phase 3: Upgrading electricity infrastructure, and build new top structures in line with the expansion programme of the Parks 2017/18 -2018/19 Phase 4: Development of sustainable industrial clusters in the Parks. 2019/2020 5. PROGRAMME PLAN

6. IMPLEMENTATION PLAN FY 2016/17

7. PHASE 1: SCOPE

8. PHASE 1: BOTSHABELO INDUSTRIAL PARK … The project scope of work entailed security infrastructure upgrades, fencing, street lighting and critical electrical upgrades. The scope detail included the following:   Security Access control gates complete with boom gates; Pedestrian access point with a combination of turnstiles & pedestrian gates; and Installation of roller shutter doors. Fencing Erection of 6.7 Km invisible fencing / perimeter fencing.

8. PHASE 1: BOTSHABELO INDUSTRIAL PARK … Street Lighting High mast lighting – Maintenance and installation of new lights. External Works Brick structure for waste with 10m3 capacity. Overall, 92 labourers were appointed for Botshabelo Industrial Park. Material and supplies required were procured from local suppliers i.e. cement, sand and stones.

9. Benefits RealiSed from the Revitalization Programme in Botshabelo Industrial Park The Botshabelo Industrial Park has attracted new business from the following investors: ZZ Knitting (Pty) Ltd: Total Investment to date R500 000.00 - Number of new jobs: 62 Blue Maize (Pty) Ltd: Total Investment will be R900 000.00 - Number of jobs to be created: 100 Emerald Sky Trading (Pty) Ltd: Total Investment will be R30 000 000.00 - Number of jobs to be created: 6 Mzii and Maxwell Enterprises: Total Investment will be R2000 000.00 - Number of jobs to be created: 35

10. PHASE 1: SESHEGO INDUSTRIAL PARK … The Seshego Industrial Park was approved for R 21 069 308. The initial scope of the industrial parks comprised of security upgrades in-line with the Phase 1 objectives. A major problem experienced by the Seshego Industrial Park was illegal occupation and dumping in areas of the industrial park that were not in use.

10. PHASE 1: SESHEGO INDUSTRIAL PARK … The following activities were undertaken to improve the security of the Industrial Park: Setting out 7443m of fence route; Excavation of set out route; Installing fence; Installing portal culverts on stream crossings; Installing main access gates; Installing of guard houses; and Site clearing, levelling, finishing-off on fence route.

10. PHASE 1: SESHEGO INDUSTRIAL PARK … The Seshego Industrial Park’s scope of services was successfully completed in quarter 1 of 2015/2016 financial year end. A total of 33 employment opportunities were created and 6270 hours were worked. A local contractor was appointed and a local subcontractor also benefited from the project .

10. PHASE 1: SESHEGO INDUSTRIAL PARK … The Seshego Industrial Park has improved its security and managed to protect the industrial area from illegal occupation. The installation of perimeter boundary has prevented illegal sand mining and illegal dumping. The tenants of the park have since shown an interest in renewing their lease agreements thus helping to improve the retention rate of the Industrial Park.

11. LONG TERM PERSPECTIVE Creating Sustainability through: Key infrastructure and services; The cohesive influence of Clusters; and Incentives for tenants. Creating Efficacy through: A development strategy; Matching the interests of potential investors; and Protecting SA’s economic interests. Driving Regional Competiveness through: Labour market reforms; Ensuring productivity gains; and Research, Development and Innovation.

12. FUTURE PROSPECTIVE FOR INDUSTRIAL PARKS “a highly cohesive Industrial Park thriving on local content and innovation that leads to efficient production of high value goods and services"

THANK YOU Contact details: Ms Stieneke Samuel Chief Director, RID – SEZ & ET SSamuel@thedti.gov.za 012 394 3563 071 607 4970