wedenusiness pportunities

South Africa: A Growing Economy: 

SA enjoying longest period of sustained economic growth since WWII Real GDP growth averaging around 4 to 4,5%: 4,9% in 2005, 4,4% in 2006 rising to over 5% by 2008 (projected) Current upswing already in 7th year South Africa: A Growing Economy

SA Economic Performance : 

SA Economic Performance Macro-Economic Stability: Budget deficit less than 2% (surplus in 2006/7 and budgeted for in 2007/8) Inflation generally within target band 3 to 6% (with some pressure more recently) Accelerated inflow of foreign capital (92bn SEK in 2005 which is the largest ever)

SA Economic Performance : 

SA Economic Performance Some positive net job creation with 1 m jobs created last 3 years; strong employment growth construction and financial services; unemployment rate down from high of 32% to around 26% Main growth drivers: mineral products boom; domestic consumption growth (partially linked to rise of black middle class)

SA Economic Performance : 

SA Economic Performance Fast growing sectors include construction, finance, transport Sign of shift from consumption to investment led growth Rapid investment growth in many service sectors (construction, engineering, financial services) and some manufacturing (printing publishing, chemicals, machinery, motor vehicles, processed food) over 7%

South African Economy: 

South African Economy

The Challenge: 

The Challenge To achieve goal of halving unemployment and poverty by 2014 need higher shared growth Accelerated and Shared Growth Initiative of South Africa (ASGISA) ASGISA target: raise growth to average of at least 6% 2010 -2014 Broaden basis beyond current drivers Ensure that we have a shared growth process by drawing both marginalized- and unemployed and into productive activity and ensuring that new wealth contributes to poverty reduction

ASGISA: 

ASGISA Focus on limited number of interventions to address “binding constraints”, including: Cost, efficiency of national logistics system Shortages of skills Barriers to entry/competition Regulatory burden on small business

Slide9: 

Core national programmes of SOEs 70% - generation capacity 30% - transmission and distribution: 6 metro Regional Electricity Distributors to be set up within next six months Rehabilitation of three power stations; plus the construction of two peaking plants (R15 bn/ 13,9bn SEK) R40bn/ 37,3bn SEK for a range of core projects – railways, ports, infrastructure & operations and petroleum pipeline A further R8,5bn/ 7,9bn SEK to be invested in SAA and other non-core projects Spoornet will spend some R8bn/ 7,5 bn SEK on locomotives, wagons and equipment Funding options: divesting from non-core businesses, PPPs, own revenue, concessioning, borrowing and strategic equity arrangements R93bn/ 86,7bn SEK in the next 5 years for infrastructure investments and refurbishments, raised from cash flow and off its balance sheet: Infrastructure Development

Slide10: 

Core national programmes of SOEs Some R19,7bn/ 18,4bn SEK of water resource projects planned: R3bn/ 2,8bn SEK to be funded from the fiscus Rest to be funded from cost recovery and financial markets Air Transport infrastructure ACSA plans to spend R5,2bn/ 4,8bn SEK by 2010 in improving existing facilities particularly in Johannesburg and Cape Town In addition, the Dube Trade Port initiative includes a new airport in Durban Infrastructure Development

Key ASGISA Initiatives: Sector Strategies: 

Key ASGISA Initiatives: Sector Strategies Special priority to rapidly growing labour intensive sectors – Business Process Outsourcing, Tourism, Bio-Fuels New National Industrial Policy to rank other priorities, including capital goods, chemicals, agro-processing, minerals beneficiation, clothing and textiles, creative industries, motor, wood paper pulp

SA’s Export Performance by Country……….: 

SA’s Export Performance by Country………. Source: http://www.thedti.gov.za Source: http://www.thedti.gov.za

South Africa: Main Export Products: 

South Africa: Main Export Products South Africa has a diversified economy that export a variety of products and services Mineral Products (Platinum, Gold, Diamonds, Coal) Motor Vehicles and Components Steel Fruit and Wine Processed Food Chemical Products Wood, Paper, Pulp Manufactured Goods

SA-Sweden Bilateral Trade: 

SA-Sweden Bilateral Trade Source: http://www.thedti.gov.za

SA-Sweden Bilateral Trade : 

SA-Sweden Bilateral Trade There are 25 Bilateral Agreements that enhances the relationship between Sweden and South Africa. In 2006, Sweden was ranked 26 in terms of South African exports destined for the world and 21 as a supplier to South Africa Total trade between South Africa and Sweden amounted to R8,8 billion (8,2bn SEK) in 2006 with 66% (R5,8bn/5,4bn SEK) of that being imports from Sweden. In general, the trend of trade is upward sloping for both imports and exports with a higher growth rate in the past 3 years for both imports and exports Major SA exports to Sweden include flat-rolled stainless steel products (34,5%), centrifuges (17%), wine (12,4%), small aircraft (2.3%) and parts and accessories of motor vehicles (2,2%) Major imports from Sweden include engines (7,5%), equipment components (6.8%), telephone sets (6,2%), vehicles for the transport of goods (5%) and medicaments (3,4%)

Sweden: Potential Increase in Trade: 

Sweden: Potential Increase in Trade Source: Decision Support Model (NWU)

Sweden: Potential Increase in Trade: 

Sweden: Potential Increase in Trade

Sweden: Potential Increase in Trade: 

Sweden: Potential Increase in Trade Source: Decision Support Model (NWU)

Sweden: Potential Increase in Trade: 

Sweden: Potential Increase in Trade

Swedish Investment in SA Jan.2000 – July 2007 (US$ million): 

Swedish Investment in SA Jan.2000 – July 2007 (US$ million)

Slide21: 

Swedish Investment in SA Jan.2000 – July 2007 (US$ million)

Investment Opportunities: 

Investment Opportunities

Investment Opportunities: 

Investment Opportunities

Investment Opportunities: 

Investment Opportunities

Industrial Development Zones: 

Industrial Development Zones Industrial Development Zone (IDZ) program and the regulations concerning IDZs were introduced in 2000 IDZs that have been identified have been primarily associated with major harbours or airports to enhance the key export oriented focus of the zones Rationale for the IDZ programme lies in the contribution to positioning SA based manufacturing industries to meet the challenges of globalization in three respects: By proximity to international ports to offering low cost and efficient logistic services; Providing an operating environment that is socially and environmentally well-managed; Proving a single-window facility (One-Stop shop) for services to investors and efficient administration, in which “speed and responsiveness are competitive advantages

Current IDZ Status: 

Current IDZ Status Current IDZs are in Port Elizabeth (Coega); East London; Richards Bay, and Gauteng (O.R Tambo International Airport) The Coega project, comprising an industrial development complex & deepwater port is the single largest infrastructure development project in SA since 1994 New investors will jointly be investing R395 million into the ELIDZ taking the value of confirmed investment since the ELIDZ’s inception to R755m/0.775m EUR

SADC and South Africa: 

SADC and South Africa

SA and SADC: 

SA and SADC SADC on track to implement SADC Trade Protocol (Free Trade Area) by 2008 Ambition to move to SADC Customs Union

Available Incentives: 

Available Incentives

Available Incentives : 

Available Incentives

the dti’s Investment Services: 

the dti’s Investment Services Information on Investing in SA and Business Environment Detailed Sector Information Finance to Explore Investment Opportunities in SA Facilitating Direct Government Support in the form of Investment Incentives Investment Facilitation After care – ongoing contact

Slide32: 

Investment Promotion: +27 12 394 1333/1339 Export Promotion:+27 12 394 1024 the dti Call Centre: 0861 843 384 the dti Switchboard: +27 12 394 0000 Website: http://www.thedti.gov.za E-mail: investmentsa@thedti.gov.za Postal Address: Private Bag X 84 Pretoria 0001 South Africa the dti’s Contact Details