Proposed Agenda

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FDC PRESENTATION MCCI TRADE INVESTMENT
SEMINAR INVEST IN THE HEART OF SOUTH AFRICA
Presented by Ikhraam Osman Acting CEO
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BACKGROUND

• The FDC is the official economic development,
  trade and investment agency for the Free State
  Province
• The agency focuses on four key activities in
  order to achieve growth and development for the
  province.
• Enterprise Development
• - Financial
• - Non Financial
• Property Management
• Investment Promotion and Facilitation
• Export Promotion and related Assistance.

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FDC BUSINESS UNITS

• Enterprise Development
• Property Management
• Investment and Export Promotion
• Investment Projects Facilitation

4
ENTERPRISE DEVELOPMENT

• Financial Products
• Co-operatives Development Fund
• Integrated Sector Fund
• Franchise Development Fund
• Youth Fund
• General Enterprise Development Fund
• Bridging Finance

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ENTERPRISE DEVELOPMENT

• NON- FINANCIAL SUPPORT
• Training-Provision of knowledge and skills to FDC
  clients in order to reduce business failure. This
  is done in collaboration with other institutions.
• Mentoring and Coaching-These services contribute
  to the sustainability and success of small
  business clients.
• Turnaround Services-These services assist ailing
  FDC clients by strategic interventions.

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PROPERTY MANAGEMENT

• The FDC offers enterprises suitable premises at
  affordable rates
• We offer the following incentives
• Subsidized rental rates
• Rental holidays of up to 3 months
• Special incentives and discounts for BEE
  companies
• or individuals
• Support for large manufacturing investors
• Overseeing some 1233 properties that we use to
• Facilitate commercial and industrial activity
  (over 400 factories)
• Assist new investors with suitable premises and
• Facilitate SMME development

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INVESTMENT PROJECTS FACILITATION

• FDC Services to Investors include
• Packaging of investment opportunities
• Assisting with securing of office and factory
  premises
• Assistance with incentive applications
• Providing advice on environmental impact
  assessments
• Facilitation of finance through local
  institutions
• Facilitation of joint ventures/equity
  partnerships through identification of local
  partners
• Business retention and expansion

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EXPORT PROMOTION SERVICES

• FDC aims to increase the value of exports from
  the province by assisting exporters to gain
  access to foreign markets.
• Export Assistance Service
• Trade missions to key overseas markets
• Access to national government export incentive
  programs

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EXPORT PROMOTION SERVICES

• Providing insight into new markets by providing
  basic country and market data.
• Exhibiting products at local and international
  trade exhibitions
• Providing understanding of complex export issues
  through capacity building workshops
• Opportunities through trade-lead information
  services
• Network with other exporters.
• Listing on FDC database of exporters

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FDC OFFICES

• Head office Bloemfontein (051 400 0800)
• Motheo district office Thaba Nchu (051 873
  3901)
• Thabo Mofutsanyana district office
  Phuthaditjhaba (058 7140060)
• Fezile Dabi district office - Sasolburg (016 976
  8944)
• Lejweleputswa district office Welkom (057 357
  5326)
• Xhariep district office Trompsburg (051 713
  0342)
• Industriqwa office Harrismith (058 635 1112)
• Botshabelo office Botshabelo (051 534 1101)

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FREE STATE PROVINCE
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FREE STATE KEY SECTORS

• Home to 26.8 of FS population
• Sectors
• Manufacturing (Petro-
• Chemicals-Sasol Chemicals)
• Agriculture,
• Mining,
• Tourism Real Estate

• Home to 23.2 of FS population
• Sectors
• Mining (primarily gold- Declining)
• Agriculture (primarily maize and Sunflower)

• Home to 26.8 of FS population
• Sectors
• Mining (sandstone),
• Agriculture (Fruit
• Flowers),
• Eco-Tourism (Drakensburg,
• Maluti Mountains Golden
• Gates Eco-Tourism Hub)

• Home to 27.4 of FS population
• Sectors
• Wholesale retail trade,
• Agriculture ,
• Finance,
• Hospitality, Real Estate business
• services,
• Transport communication
• Community social services (Public Sector)

• Home to 5.2 of FS population
• Sectors
• Mining (diamond),
• Eco-Tourism ( Xhariep
• Dam),
• Agriculture
• Renewable Energy (Xhariep Solar
• Hub)

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SECTORAL CONTRIBUTION FREE STATE
PROVINCIAL ECONOMY 2011- SOURCE Stats - SA
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FREE STATE PROVINCE COMPETITIVENESS

• Open to business trade and foreign investments
• Free State offers diverse and abundant natural
  splendour and a year-round temperate climate
• Excellent living conditions and medical services
• Superb recreational and cultural activities
• Good educational facilities pre-primary to
  tertiary
• Various tourism attractions and facilities
• Excellent sporting facilities
• Excellent value for money in terms of food
  prices, transport costs, school fees, property
  rental and ownership costs
• We share in the most developed telecommunications
  networks in Africa.

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INVESTMENT OPPORTUNITIES
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1. N8 CORRIDOR DEVELOPMENT
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2. FOOD PROCESSING PARK HARRISMITH

2.1. Brief Description. The Harrismith Food
Processing Park is intended to host a number of
companies in the food processing sector. This
park would be an integrated food processing park
providing for logistics service providers,
warehousing, cold storage and manufacturing
facilities to enhance production efficiencies.
The value of total investment over a 5 year
period is estimated at R 1.5 Billion.
2.4. Budget

• Project facilitation Budget is R30 million over 3
  years.

2.6. Investors role

• To provide for plant and equipment required to
  process feedstock into final products,
• To set-up and operate the plant and built its
  own production facilities from scratch or to
  lease factory buildings from food processing park
  operator.

2.7. Project Location

• Industriqwa outside Harrismith, Maluti-A-Phofung
  Local Municipality, Thabo Mofutsanyana District
  Municipality, Free State Province, South Africa.
  It is 8 kilometers from Harrismith and the N3
  National Road.

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3. VEHICLE DISTRIBUTION CENTRE HARRISMITH

3.1. Project Description This project is
intended to position Harrismith as a Vehicle
Distribution Centre. (VDC).Studies by logistics
integration service providers have indicated that
FS has the best potential to be a warehousing and
logistics centre due to its proximity to Gauteng
market and links through N3 to Durban Port and
Coega Port through N1 and N6.
3.3. Feasibility Study Status

• Feasibility study completed,
• Required project investment value R 250 million.

3.6. Investors role

• NAAMSA and individual vehicle manufacturers to
  locate their inland distribution networks in
  Harrismith
• To set-up and operate or to lease warehousing and
  temporary storage bays and offices from the VDC
  operator.

3.7. Project Location

• Industriqwa is outside Harrismith,
  Maluti-A-Phofung Local Municipality, Thabo
  Mofutsanyana District Municipality. It is 8
  kilometers from Harrismith and the N3 National
  Road.

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VDC ADMINISTRATION OFFICES AND THE PROPOSED VDC
LAY-OUT
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4. PARTS ACCESSORIES CENTRE HARRISMITH
4.1. Project Description This project is
intended to position Harrismith as a Vehicle
Parts Accessories Distribution Centre to supply
the after sales market. Studies by logistics
integration service providers have indicated that
FS has the best potential to be a warehousing and
logistics centre due to its proximity to the
Gauteng market and links through N3 to Durban
Port and Coega Port through N1 and N6.
4.3. Feasibility Study Status

• Feasibility study completed,
• Required project investment value R 120 million.

4.6. Investors role

• NAAMSA and individual vehicle manufacturers to
  locate their inland distribution networks in
  Harrismith
• To set-up and operate or to lease warehousing and
  temporary storage bays and offices from the VDC
  operator.

4.7. Project Location

• Industriqwa outside Harrismith, Maluti-A-Phofung
  Local Municipality, Thabo Mofutsanyana District
  Municipality, Free State Province, South Africa.
  It is 8 kilometers from Harrismith and the N3
  National Road.

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5. GREEN ECONOMY XHARIEP SOLAR PARK

5.1. Project Description This project is
intended to harness the excellent solar radiation
in Southern Free State that is suitable for the
deployment of solar electricity generation
technologies. The plan is to establish a 250MW
solar park in Xhariep District. This is intended
to be an integrated solar hub comprising of solar
energy generation plants, RD Centre and
technology demonstration units and LED lights
components manufacturing .
5.3. Feasibility Study Status

• Not completed
• Required project investment value is estimated at
  R 1,8 Billion- R 2,2 Billion

5.6. Investors role

• To establish and operate a 250 MW solar farm
• ( Xhariep) with a phased expansion of up to
  1GW Solar Hub. to harness available solar
  resources
• To secure an independent power producer license
  and power purchase agreement with Eskom or local
  electricity distributer.

5.7. Project Location

• Xhariep District, Kopanong and Letsemeng ,

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6. N8 CORRIDOR MANGAUNG BIO-MEDICAL PARK

6.1. Project Description The Mangaung
Bio-Medical Park will be a world class-
bio-medical facility designed to host medical
biotechnology research companies, pharmaceutical
companies and the University of Free State
Bio-technology and medical research team
migrating research patents into commercial
medical solutions.
6.3. Feasibility Study Status

• Not completed
• Required project investment value is estimated at
  R 400 million.

6.6. Investors role

• To attract companies in the bio-technology,
  pharmaceuticals and chemicals to locate in park.
• Opportunity will be made available for tenants
  to lease business premises from the park
  operator.

6.7. Project Location

• Bloemfontein, Mangaung Metropolitan Municipality.

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7. ORGANIC FERTILIZER

7.1. Project Description To acquire a stake in a
carbon based organic fertiliser production plant
in Harrismith Industriqwa to produce 120 tons of
granular and 12 million litres of liquid
fertilisers per annum.
7.3. Feasibility Study Status

• Pilot feasibility study completed
• Required project investment value is estimated at
  R 435 million.

7.6. Investors role

• To take stake or equity in existing operations

7.7. Project Location

• Thabo Mofutsanyana, Maluti-A-Phofung, Harrismith

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8. INTEGRATED BEEF PROJECT

8.1. Project Description To establish an
integrated beef production cluster comprising of
fodder production, feed mill, feedlot, and
European Union Certified export abattoir .The
project will comprise of slaughtering floor, meat
processing plant, deboning plant , by products
plant and cold storage facilities, a workshop and
a cold storage transport fleet.
8.3. Feasibility Study Status

• Conceptual Notes Developed
• Required project investment value R 200 million.

8.6. Investors role

• To invest in value chain operations within the
  cluster.

8.7. Project Location

• Motheo , Bloemfontein, Zastron, Marquard

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9. OTHER PROJECTS
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EXPORT OPPORTUNITIES
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EXPORT OPPORTUNITIES

• Agricultural Products
• Maize
• Wheat
• Sorghum
• Potatoes
• Sunflower
• Red Meat
• Vegetables
• Dry beans
• Fruit
• Peanuts
• Wool
• Diary
• Cherries

• Mining Products
• Gold
• Coal
• Diamond
• Clay
• Limestone
• Salt
• Gypsum
• Granite
• Sandstone aggregates
• Other minerals

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EXPORT OPPORTUNITIES

• Petrochemical Products
• Fuels
• Waxes
• Synthetic fuel
• Liquid hydro carbons
• Agro Processing
• Farm machinery and equipment
• Leather tanning and finishing
• Floriculture
• Other
• High Oleric Oil
• Fruit Juice
• Health Products
• Range of manufactured products

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FREE STATE EXPORTS

• Main Foreign Export from the Free State
• Mineral Products
• Plastics
• Chemical Products
• Vehicle and transport equipment
• Agricultural equipment
• Semi-precious stones, metals articles thereof,
  imitation jewelry
• Machinery, electrical equipment and mechanical
  appliances
• Base metals
• Vegetable products

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THANK YOU