1. Nils Flaatten, CEO 26 May 2014 An inspiring place to do business

2. Presentation Overview Overview of Wesgro Growth in global economies Western Cape trade Western Cape trade with Africa Global FDI into Africa Western Cape FDI into Africa Questions and Answers An inspiring place to do business

3. About Wesgro An inspiring place to do business Established by Law: – Western Cape Investment and Trade Promotion Law Act 3 of 1996 – Western Cape Investment and Trade Promotion Agency Amendment Act, 2013 Compliance in terms of Treasury Regulations/ PFMA/ MFMA Reports to: – MEC for Finance, Tourism and Economic Development - MEC Winde – MAYCO – Cllr Gareth Bloor Financed by: – Western Cape Government – Department of Economic Development and Tourism - Department of Agriculture – City of Cape Town MANDATE MISSION VISION To promote tourism, trade and investment in the Western Cape by identifying and publicising opportunities in tourism, trade and investment To attract and facilitate foreign and domestic direct investment into the Western Cape; To grow exports of products and services of the Western Cape through the development of exporter capability, demand and market access; and To market the Western Cape as a competitive business and tourism destination within national and international arenas The stimulation, facilitation and increase of economic growth and opportunities through Tourism, Trade and Investment promotion and building a strong regional economic brand. To achieve the strategic outcome goal, Wesgro focus on the following: Effective marketing of Cape Town and the Western Cape as a tourism destination to increase domestic and international tourist arrivals; Support the trade and export promotion for qualified exporters and thereby improve the opportunity for employment creation and new investment; Attract domestic and foreign direct investment to support economic growth and employment creation; and Building a strong regional economic brand that make Cape Town and the Western Cape an inspiring place to do business. “To be Africa’s globally renowned tourism, trade and investment promotion agency”

4. Growth in global economies An inspiring place to do business Source: IMF, 2014

5. Western Cape trade An inspiring place to do business Source: Quantec, 2014 TOP 10 WESTERN CAPE EXPORT MARKETS, 2013 RANKIMPORTERS VALUE 2013 (ZARbn) % SHARE 2013 % GROWTH 2012-2013 1 Netherlands 6.749.00-0.91 2 United Kingdom 6.668.8925.04 3 Germany 3.855.1425.33 4 Mozambique 3.785.05148.62 5 United States 3.494.654.38 6 Singapore 2.703.619.17 7 Japan 2.653.53117.68 8 Angola 2.543.4011.83 9 Kenya 2.293.0564.53 10 China 2.122.8449.39 TOTAL EXPORTS 74.87100.0%16.06% TOP 10 WESTERN CAPE IMPORT MARKETS, 2013 RANKEXPORTERS VALUE 2013 (ZARbn) % SHARE 2013 % GROWTH 2012-2013 1 Saudi Arabia 37.6720.19-0.32 2 China 28.0115.0139.27 3 India 16.378.7775.28 4 Nigeria 13.597.28-20.73 5 Germany 8.104.3465.45 6 Singapore 7.544.0475.42 7 United Kingdom 6.583.5321.31 8 Italy 5.242.8138.49 9 United States 4.712.5213.80 10 Netherlands 4.642.48-11.23 TOTAL IMPORTS 179.4100.0%27.85% Source: Quantec, 2014

6. Western Cape trade with Africa An inspiring place to do business Source: Quantec, 2014 The Western Cape has experienced a trade deficit with Africa over the past decade – mainly due to crude petroleum oil imports. Exports have been growing steadily and by 34% in 2013. SADC is a major export market for Western Cape exports mainly due to the FTA that has encouraged exporters to take advantage of the competitive edge offered thereby Exports to SADC grew by 33% in 2013. Exports to Western Africa grew by 35% and to Eastern Africa grew by 55% in 2013.

7. Western Cape trade with Africa An inspiring place to do business Source: Quantec, 2014 TOP 10 WESTERN CAPE EXPORT MARKETS IN AFRICA, 2013 RANKIMPORTERS VALUE 2013 (ZARm) % GROWTH 2012-2013 % SHARE 2013 1 Mozambique3 779.1148.6%19.9% 2 Angola2 543.011.8%13.4% 3 Kenya2 287.064.5%12.1% 4 Zambia2 004.431.5%10.6% 5 Nigeria1 642.143.2%8.7% 6 Zimbabwe1 329.931.7%7.0% 7 United Republic of Tanzania676.434.2%3.6% 8 Ghana 605.722.6%3.2% 9 Mauritius 599.811.4%3.2% 10 Democratic Republic of Congo 475.4-6.6%2.5% TOTAL EXPORTS 18 954.334.0%100.0% TOP 10 WESTERN CAPE IMPORT MARKETS IN AFRICA, 2013 RANKEXPORTERS VALUE 2013 (ZARm) % GROWTH 2012-2013 % SHARE 2013 1 Nigeria 13,591.5-20.7%44.1% 2 Angola 4,229.9-65.1%13.7% 3 Mozambique 3,346.7-13.7%10.9% 4 Ghana 2,926.1110.1%9.5% 5 Equatorial Guinea 2,682.7342.4%8.7% 6 Gabon 1,230.61347.9%4.0% 7 Mauritius 922.928.1%3.0% 8 United Republic of Tanzania 651.8168.0%2.1% 9 Madagascar 474.145.4%1.5% 10 Zimbabwe 268.7104.0%0.9% TOTAL IMPORTS 30 842.017.3%100.0%

8. Western Cape trade with Africa An inspiring place to do business Source: Quantec, 2014 TOP 10 WESTERN CAPE EXPORT PRODUCTS TO AFRICA, 2013TOP 10 WESTERN CAPE IMPORT PRODUCTS FROM AFRICA, 2013 RANKPRODUCT VALUE 2013 (ZARm) % GROWTH 2012-2013 RANKPRODUCT VALUE 2013 (ZARm) % GROWTH 2012-2013 1 Oils petroleum, bituminous, distillates, except crude 3 360.0140.4% 1 Petroleum oils, oils from bituminous minerals, crude24 807.2-20.6% 2 Hot-rolled products, iron/steel, width>600mm, not clad 2 832.559.0% 2 Oils petroleum, bituminous, distillates, except crude 3 561.0-10.5% 3 Apples, pears and quinces, fresh 1 217.753.7% 3 Men’s or boys suits, jackets, trousers etc. not knit 306.060.9% 4 Sulphur, except sublimated, precipitated, colloidal 643.572.3% 4 T-shirts, singlets and other vests, knit or crochet 265.142.8% 5 Grape wines(including fortified), alcoholic grape must 620.427.8% 5 Oil-cake other than soya-bean or groundnut 154.447.5% 6 Fruit and vegetable juices, not fermented or spirited 557.935.7% 6 Jerseys, pullovers, cardigans, etc., knit or crochet 134.06.9% 7 Cigars, cigarettes etc, tobacco or tobacco substitute 540.9-17.8% 7 Tobacco unmanufactured, tobacco refuse 128.0197.4% 8 Liqueur, spirits and undenatured ethyl alcohol <80% 474.527.7% 8 Men's or boys' shirts 120.420.6% 9 Fish, frozen, whole 296.831.2% 9 Women’s, girls suits, jacket, dress, skirt, etc., woven 98.565.8% 10 Fertilizer mixtures in packs of < 10kg 272.7201.7% 10 Wood sawn, chipped lengthwise, sliced or peeled 89.75.6% TOTAL EXPORTS 18 954.334.0%TOTAL IMPORTS30 842.017.3%

9. Global FDI with Africa An inspiring place to do business Source: Financial Times, 2014 TOP 10 GLOBAL COMPANIES INVESTING INTO AFRICA, 2003-2013 RANKCOMPANYPROJECTS CAPEX (ZARm) 1 Banco de Fomento Angola 695 177.9 2 Ecobank Transnational 292 574.9 3 IBM 286 508.7 4 Nestle 256 594.7 5 BNP Paribas 232 102.9 6 Nokia 231 132.5 7 Kenya Commercial Bank (KCB) 211 623.5 8 Credit Agricole Egypt 211 909.5 9 United Bank for Africa (UBA) 212 185.6 10 Banco Millennium Angola 211 254.8 TOTAL IMPORTS 6 6556 682 542.8 South Africa was the 5 th largest source market for FDI into Africa by the number of FDI projects and 7 th by the value of FDI The top source markets for FDI into Africa were the United states, the United Kingdom, United Arab Emirates, Canada, France and India. South Africa was the top destination market for FDI into Africa by the number of projects and 4 th by value of FDI The top destination markets for FDI into Africa were Egypt, Morocco, Nigeria, Tunisia, Algeria and Angola. The top destination markets for FDI The top sectors for global FDI into Africa, in terms of projects attracted: Coal, oil and natural gas accounted for 37% of projects Real estate accounted for 16% of projects Metals accounted for 15% pf projects In terms of the capital value of projects, the following was observed: Financial services accounted for 16% of capex Business services accounted for 8% of capex Communications accounted for 7% of capex

10. Western Cape FDI with Africa An inspiring place to do business Source: Financial Times, 2014 FDI from South Africa into Africa over the past 10 years reached R236bn from 355 projects. The Western Cape accounted for 18% of these projects and 5% of the investment value 63 projects R11bn Western Cape FDI was mainly into Nigeria, Angola, Zambia and Namibia. The top sectors for FDI into Africa from the Western Cape in terms of projects attracted, are: Food & Tobacco accounted for 40% of projects Consumer Products accounted for 16% of projects Financial Services accounted for 11% of projects In terms of the capital value of projects, the top sectors are: Food & Tobacco accounted for 38% of capex Consumer Products accounted for 28% of capex Metals accounted for 14% of capex TOP 10 WESTERN CAPE COMPANIES INVESTING INTO AFRICA, 2003-2013 RANKCOMPANYPROJECTS CAPEX (ZARm) 1 Shoprite162 665.8 2 The Foschini Group51 500.3 3 Belmet Marine11 478.8 4 Woolworths (South Africa)41 200.2 5 Pick n Pay8960.5 6 PetroSA3796.9 7 Clicks Group3233.1 8 Engen1191.8 9 Santam2178.5 10 Sanlam Group2143.0 TOTAL IMPORTS 6311 232.8

11. Thank you | Dankie | Enkosi