KwaZulu-Natal, driving trade and investment in South Africa Investment Promotion Stakeholder Forum 14 February 2012

Content About TIKZNProvincial Economic DevelopmentOur StructureOperational Unit TasksInvestment and Trade Promotion ActivitiesFDI Imperatives Missed Opportunities

Trade and Investment KwaZulu- Natal (TIKZN) is the Official Investment and Trade Promotion Agency of the Provincial Government About Trade and Investment KwaZulu-Natal (TIKZN)

Position within the Province Development Department of Economic Development and Tourism Trade and Investment KwaZulu-Natal KwaZulu- Natal Tourism KwaZulu- Natal Growth Fund Sharks Board Dube Trade Por t

Provincial Economic Development KwaZulu- Natal TIKZNDEDTKZN PCCOGTAEDA’S SALGA KZN DFI’S

TIKZN STRUCTURE Promotion of KZN as an Investment Destination Attraction of Investors to KZN Facilitation of Investment Opportunities (FDI & Local) Investment Promotion Export Capacity Building (Emerging & Existing Exporters) Development of New Markets for KZN Exporters Promotion of KZN as an Destination for Export Manufacturing Export Promotion & Development Facilitation of Retention and Expansion Opportunities Coordination of BR&E programmes Facilitation of Capacity Building initiatives for KZN companies Business Retention & Expansion

TIKZN STRUCTURE Marketing of KZN as an Investment location Strategic Liaison with Diplomatic Corps & International Inst. Leads Generation Gauteng Office Information Management & Development Sector Development and Project Packaging Policy Advocacy & Economic Intelligence Knowledge Management Destination Marketing Communication and Public Relations Facilitation Corporate Image and Event Management Marketing and Communications

Investment Promotion Activities Country Targeting and scoping Investment Promotion & Destination Marketing Opportunity Identification (proactive /reactive) Investor Targeting Coordinate Mission (Inward or Outward) Sell Opportunity Facilitation of Investment Opportunity Commitment of Investment Aftercare – BR&E

Trade Promotion Activities Identification of Existing Exporters Country Targeting and scoping Trade Promotion and Marketing Coordinate Trade Missions Market Products at Trade Shows Facilitate Trade Opportunity Assist with securing requisite LC’s Conclude Trade Deal Identification of New Markets

Tools of the Trade Investment MapInvestment Protocol HandbookDoing Business HandbookInvestment Incentives

Benefits of FDI Capital InflowsSkills DevelopmentTechnology TransferMarket Development

Factors that hamper FDI Length of Procedures Efficiency of Administration CorruptionFlexibility

Factors Important to FDI Legal and Administrative Environment Protection of Investors rights Investment & Business Climate How large is the market What is the growth potential and population Market Size & Prospects Labour Operational Cost of Business Can you supply neighbouring markets What is the Trade Regime like Openness

Factors Important to FDI Existence of other companies Clusters, suppliers, innovations etc Agglomeration of Industries Education and Skills Levels Transport, Communications, Raw Materials Human Capital & Infrastructure Local Incentive (bonus to investor facilitation) Investment Promotion & Facilitation

Importance of Incentives Offering Must be attractiveMust be availableShould be fixed and irrevocableNot Anti-competitive (e.g. competitive rentals)Reduced Red Tape & Speedy Implementation

Missed Opportunities Kanoria India Caustic Soda R330m Richards Bay IDZ Challenges Raw material supply and disposal Cost of electricity supply – connection (R20m) Deasang South Korea Monosodium Glutamate R200m Richards Bay Challenges Poor Incentive Offering Cost of doing business Market Size Intra-trade AB Mauri UK Yeast R200 Durban Challenges Lack of suitable site Additional R200m for a water treatment facility RBIDZ site 1a suitable (buy not lease)

How do WE drive the Business of Trade and Investment We must be responsive to investors needsWe must provide the same information (statistics) We must provide excellent services (on the ground) Our offering must be clear, realistic and attainableWe must share information (it is a partnership)

THANK YOU