NORTH WEST PROVINCE PROFILE 2017

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NORTH WEST PROVINCE PROFILE 20171)THE NORTH WEST PROVINCE LOCATIONSouth Africa is strategically located at the southern point of Africa. The North West Province of SouthAfrica is located to serve as a gateway to the Southern Africa Development Community (SADEC) withthe N4 Highway that connects the Walvisbay Port in Namibia with the Maputo Port in Mozambiquerunning through the province.2)2.1WELCOME TO THE NORTH WEST PROVINCEAbout the North West ProvinceThe North West Province of South Africa is also known as Bokone Bophirima (BB). It is bordered byBotswana and the Limpopo province in the north, the Northern Cape Province and the Kalahari Desertin the west, Gauteng province to the east, and the Free State province to the south. Its location in theSouthern African Region makes the North West the perfect gateway for reaching the Southern AfricanDevelopment Community (SADC).The mainstay of the economy is mining, which generates more than half of the province's grossdomestic product and provides jobs for a quarter of its workforce. Main minerals mined includeplatinum, mined at Rustenburg and Brits; gold, mined at Orkney and Klerksdorp; uranium, mined atKlerksdorp; and diamonds, mined at Lichtenburg, Christiana, and Bloemhof.In terms of agriculture, the northern and western parts of the province are well- known for livestockfarming, including cattle, sheep and game. The Bokone Bophirima Province is also the biggest1

contributor to the poultry industry in South Africa. The eastern and southern parts produce a widevariety of crops including maize (corn), sunflower, tobacco, cotton, and citrus fruits. There are alsospecialist niche crops grown such as cut-flowers (roses) and various vegetables such as mushrooms,cabbage, carrots, etc.Area: The Bokone Bophirima Province has a surface area of approximately 104 882km², contributing8.6% of the national area of South Africa.Population: The North West is home to 3 787 978 people.Cities: The capital city of the Bokone Bophirima Province is Mahikeng with a population of 307 520and a regional gross domestic product (GDP-R) of ZAR18.3bn. Other cities or larger towns areRustenburg with a population of 631 270 and a GDP-R of ZAR63.8bn, City of Matlosana (Klerksdorp)with a population of 420 732 and a GDP-R of ZAR35.9bn, J B Marks previously nown asVentersdorp/Tlokwe 405 with a population of 242 121 and a GDP-R of ZARR22.8bn and Naledi(Vryburg) with a population of 72 176 and a GDP-R of ZAR4bn. (Source: IHS Global Insight’s RegionaleXplorer 2016 estimates)Languages:There are eleven official languages of South Africa: English, Afrikaans, Ndebele,Northern Sotho, Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa and Zulu.Currency: The National currency is the South African Rand. There are a hundred cents in a SouthAfrican Rand (ZAR).An extensive road network of more than 1 785km connects the major commercial centres of theprovince to the rest of the country. The vital east-west corridor links the east African seaboard atMaputo to the western African seaboard at Walvis Bay, running through the North West. Its strategicpositioning has been further improved with the completion of the Trans Kalahari Corridor throughBotswana and Namibia – and these developments bode well for a thriving business and tourismeconomy.The main railway line from Cape Town to Zimbabwe railway line runs through the provincial capital ofMahikeng, linking the North West to several southern African countries, including Angola, Zambia andBotswana.In terms of airports, the provincial government has recently commissioned the Mahikeng InternationalAirport which has one of the longest runways in the world and the Pilanesberg Airport (near Sun Cityand the well-known Pilanesberg game reserve) also has since been upgraded to an internationalairport, servicing primarily the tourism industry.2

Water is not naturally found in abundance in the North West Province; however this creates anopportunity for investment in water efficient technologies to meet agricultural, industrial and domestic orhousehold water demands. There also is a need to rectify the polluted groundwater caused by bothnatural and human induced factors including mining and industrial activities, agriculture and domesticuse.The North West Province has access to the ESKOM electricity supply network. The nationalgovernment is providing investment incentives and induced demand for clean energy. The climaticconditions of the province as well as the availability of platinum make the province an ideal investmentdestination for those who want to invest in alternative and renewable energy projects.2.2 North West Quick FactsThe quick facts in the table below place the North West Province in context.Official Name: North West Province of South AfricaProvincial Premier: Supra Obakeng Ramoeletsi MahumapeloCapital City: MahikengPopulation: 3 787 979 (6,8% of South Africa)Area km²: 104 882 (8,6% of South Africa)Total GDP-R (ZAR): Constant 2010 ZAR173 807 498 (5,66% of South Africa)prices (R 1000):GDP GROWTH: Constant 2010 2,9%pricesGDP Per Capita (ZAR): ZAR45 884Inflation: 6,59% ( Average 2016) STATSSAUnemployment Rate: 27,4%Principal Languages: Setswana, English, AfrikaansMajor Cities & Towns: Rustenburg, Brits, Mahikeng, Tlokwe, Matlosana andVryburgAirports: Mahikeng and PilanesbergRainfall: 400 – 700 mm per annumInfrastructure: Good road, rail and air network Water3

North West Export Partners: Electricity Telecommunications Residential & commercial space Health care Higher educational facilities Convention and exhibition venues United Kingdom 12% Japan 12% China 12% United States of America 11% Switzerland 8% Germany 5% Italy 5% Mozambique 5% Hong Kong (China) 4% Netherlands 3%North West Export Products: Gold, diamonds, platinum, other metals and minerals,machinery and equipment, chemicals, foodstuff,vegetables, roses, plastic, rubber, paper, glassware,fabric, cotton, animal fur, etc.North West Import Products: Chemicals, petroleum products, machinery andequipment mining products, electronic and medicalequipment, foodstuffs and textilesSouth AfricaNorth WestNorth West as aZAR 2016Province ZAR% of South2016AfricaExports Value (ZAR):1 107 472 99924 747 6072,23%Imports Value (ZAR):1 089 677 0025 878 1390,54%2.3 North West Provincial Overview and PrioritiesThe North West is a large and significant local economy in the South African economic context. Thearea contributes approximately 6.1% to national production with mining, agriculture and manufacturing4

contributing the largest portion of provincial output considerING that 65% of the province is rural with alow economic base.The North West Province endorses and subscribes to the National Development Plan (NDP) as anoverarching policy framework that guides implementation across all spheres of government. Inresponse to the NDP the North West Province has identified an approach which recognizes the need toRebrand, Reposition and Renew (RRR) the province.This approach is anchored on five developmental concretes: ACT (Agriculture, Culture and Tourism) refers to the anchor sectors for economic growth inrural areas. Mining, manufacturing, retail, energy and construction will serve as tributarysectors; VTSD (Villages, Townships and Small Dorpies) refers to focus areas; RHR (Reconciliation, Healing and Renewal) seeks to deal with issues of moral and socialcohesion; Setsokotsane is an approach for Radical Socio Economic Transformation and acceleratedservice delivery; and Saamwerk-saamtrek (working together and co-ordinating) philosophy encouraging the spiritof cooperation as unity in diversity breeds success.2.4 Agriculture, Culture and Tourism (ACT)The provincial government identified Agriculture, Culture and Tourism (ACT) as critical pillars of theprovincial development plan that have significant potential to assist the province to promote smart,sustainable and inclusive growth throughout the province and thus contribute fully to the ProvincialDevelopment Plan (PDPWhile some areas of the Province have been very good at tapping into this extraordinary potential as away to promote economic and socio-economic development, it however appears that many others stillremain unexplored economic development potentials.2.5 The Villages, Townships and Small Dorpies (VTSD) Strategic Objectives in theNorth WestIn responding to the skewed economic inequalities, the Provincial Government came up with VTSDstrategy as the second concrete. This concrete seeks to channel the Provincial resources to thepreviously ignored communities in the Villages, Townships and Small Dorpies (VTSD) in order to5

improve/revive their economy. Aligned to the VTSD strategy is the new planning approach to a peoplecentred bottom-up approach.The strategic objectives of this drive aim to: To tackle the triple challenges of poverty, inequality and unemployment To redress socio-economic spatial imbalances focusing on holistic growth and development To redirect government resource investment and priority expenditure to VTSD areas To mobilize key stakeholders across the board including the private sector to contribute toVTSD To target the North West Province economy at a 6% threshold of growth by 2020, infused inVTSDs as a key anchor of provincial plans to inform departmental strategic directions; and The focus the creation of enterprises in villages, to open economic hubs in townshipsresulting in the resuscitation of villages, townships and small dorpies.3)THE NORTH WEST PROVINCE AS A PREFERRED INVESTMENT DESTINATION3.1Reasons to invest in the North West Province of South Africa North West province is centrally located within the SADC. It is bordered by Botswana and theLimpopo province in the north, the Northern Cape Province and the Kalahari Desert in the west,Gauteng province to the east, and the Free State province to the south. Its location in theSouthern African Region makes the North West the perfect gateway for reaching the SADC andaccess to markets in the SADC region and Africa. The province has potentially lucrativegateway to Africa. Using the position of the province, the prospective investor can attain costeffective proximity to ideal trading environments throughout the entire Africa and SouthernAfrica. Bordering Botswana, the North West Province is ideally positioned to access the 14 countriescomprising the Southern African Development Community (SADC) and the development of theproposed Trans-Kalahari corridor will enhance North West Province access to the West Africanmarket. We are strategically located within the SADC region and provide easy access to thismarket of over 250 million consumers. The SADC Foreign Trade Agreement (FTA) signed inAugust 2008 provides ready access to these regional markets.6

Future Trade Agreements between SADC, Common Market for Eastern and Southern Africa(COMESA) and East African Community (EAC) will provide further access to a marketconsisting of more than 700 million consumers. The North West Province is well positioned as a shared services hub for investors interested inSouthern African operations, especially for Sub-Saharan countries. The Province’s welldeveloped road and rail links provide the platform and infrastructure for ground transportationdeep into Sub-Saharan Africa. The North West Province plays a significant role in the supply of energy, transport andcommunications to the rest of the continent. North West Province is a province that is serious about business. It is home to a large numberof Trans-National Companies (TNCs) and local companies reinvesting in the province. TheseTNC’s and other big businesses are happy to locate within our Province due to the relativelygood quality of life that is available. The Province is characterised by having good infrastructurewhich is seen as a key factor in the creation of an enabling environment for business to thrive.We have a very well connected road network that leads to all corners of the Province. We alsohave good air links with a number of landing strips around the Province and two airports withone having an international airport status. We connect closely with OR Tambo Internationalwhich is the busiest airport in Africa. The Province has got other important amenities like worldclass health care facilities, schools, a university and other institutions of higher learning. We have a pool of skilled labour which could be easily absorbed within initiatives and projectsthat are developed. The Province also boasts a well-connected electricity grid which provideseasy access from the majority of locations within the Province. The cost of electricity in SouthAfrica is still one of the lowest in the world. Land is abundant and available for developmental purposes; custom-built factories can beconstructed according to specifications. Existing standardised factory buildings are alsoavailable for rental wherein manufacturing and other business services can take place. The province has a number of projects that has already been scoped and are almost ready forimplementation through investment, supported by a solid financial services sector. The North West Province is a malaria-free area which boasts over 14 game reserves gamereserves that are well maintained.4. Economic Overview7

The economy of the North West Province is dominated by mining which contributes about 30% of theprovincial economy, followed by manufacturing at 5%, agriculture at 2%, and construction at 2%.The province contributes about 26% of national mining and 7% of national agriculture, but only 3% ofmanufacturing and 4% of construction to the Province’s GVA.The following graph indicates the 9 main sector contributions to the economy of the North West ascompared to South Africa. Source: IHS Global Insight: Regional eXplorer 1070 (2.5y) 2016 figures.Sector's share of regional total %Gross Value Added by Region (GVA-R),Broad Economic Sectors (9 sectors), Sector's share of regional total(%) %12,1%6,6%13,2%21,1%The table below indicates the North West Sector Contribution to GDP and Employment.Sector Contribution toSector ContributionGDP (2016)to Employment%(2016)%Primary SectorSecondary SectorTertiary t73.9Finance1311.18

Community2125.1ZAR264 bn836,000 Jobs6.1%5.3%ServicesTOTALAs % of National GDP(Source: IHS Global Insight: Regional eXplorer 1070 (2.5y) 2016 figures)The table below indicates areas with location quotients 1.1 (highlighted in blue) by broad economicsector in the North West Province (2016). The location quotient 1.1 indicates that the sector has acomparative advantage in the area.LOCATION QUOTIENT 2016ECONOMIC SECTORS (Source: IHS Markit: Regional 0,190,250,330,380,360,270,34Moses 8North-West (2016 boundaries)CommunityMining1,10AREAgAgriculture1070 (2.5y)District MunicipalitiesLocal MunicipalitiesBophirima Provincial District MunicipalityNgaka Modiri Molema District Municipality9

otla2,831,110,910,611,000,881,090,661,23Ramotshere Moiloa1,381,140,463,410,691,020,620,641,36Dr Ruth Segomotsi Mompati District ter olopo4,700,660,171,361,050,830,800,651,64City of ssi Hills5,331,730,400,721,240,990,750,641,08JB Marks2,031,130,511,160,890,970,740,811,42Dr Kenneth Kaunda District Municipality3.2Key StatisticsIn the table below key statistics for South Africa, the North West and the North West DistrictMunicipalities are indicated:KEY STATISTICS: South Africa, North West Province and NW District Municipalities (2016)Size of Area(km²)1 221 246MunicipalityKaunda DistrictMunicipalityDr KennethMompati DistrictSegomotsiMunicipalityDr RuthMolema DistrictMunicipalityNgaka ModiriDistrictBojanalaProvinceNorth WestSouth AfricaSource: IHS Markit; Regional eXplorer 1070 (2.5y)104 88218 33328 11443 76414 6718,6%17,5%26,8%41,7%14,0%55 7243 7871 671885 738484 776745 520,62% Share ofProvinceDemographiTotal populationc% Share ofProvinceDevelopmenHuman0,64Development10

tIndex (HDI)Gini nda DistrictMunicipalityDr KennethMompati DistrictSegomotsiMunicipalityDr RuthMolema DistrictNgaka ModiriMunicipalityBojanala DistrictProvinceNorth WestSouth AfricaSector’s Employment Share of Regional Total (%):Source: IHS Markit; Regional eXplorer 1070 %10,1%13,0%Community %100%2 597 987119 52457 09323 65212 45026 32915 651834 307448 762151 69768 901164 94750 70245 75054 29535 20929 29249 941180 429153 359165 660133 164110 153169 819Index of buying power1,000,060,030,010,010,01Gross Value Added by3 869 459233 023122 39240 03215 05655 mber of informallyemployed peopleTotal Employment(Formal Informal)cEconomiIncome & ExpenditureAnnual per capita006income (Rand, currentprices)Annual per householdincome (Rand, currentprices)Region (GVA-R) currentprices (ZAR 1000)11

% Share of SA100%6,0%3,2%1,0%0,4%1,4%2 793 653157 87685 61727 52310 01834 715043027704622901800% Share of SA100%5,7%3,1%1,0%0,4%1,2%Average annual growth0,4%-1,3%-2,8%0,3%-1,2%1,2%Gross Value Added byRegion (GVA-R)constant 2010 prices(ZAR 1000)(Constant 2010 Prices)MunicipalityKaunda DistrictMunicipalityDr KennethMompati DistrictSegomotsiMunicipalityDr RuthMolema DistrictNgaka ModiriMunicipalityBojanala DistrictProvinceNorth WestSouth AfricaSector’s GDP Share of Regional Total (%):Source: IHS Markit; Regional eXplorer 1070 13,2%10,5%15,3%18,2%16,2%Community 100,0%100,0%100,0%100,0%Gross Domestic Product -4 336 991262 938137 45145 87017 30962 307GDP (Current prices (ZAR518545292223158873100,0%6,1%3,2%1,1%0,4%1,4%3 071 637173 80793 91530 63411 19338 %-1,3%-2,8%0,2%-1,2%1,0%ManufacturingTotal Industries1000)% Share of NationalGross Domestic Product –(GDP in constant 2010prices (ZAR 1000))% Share of NationalAverage annual growth(Constant 2010 Prices)12

GDP-R per77 82969 41482 22851 78835 70583 53655 12145 88456 18434 58723 09051 03140,0350,6863,4246,0541,9244,26Capita(Current prices(ZAR 1000)GDP-R perCapita(Constant 2010Prices)Tress index1MunicipalityKaunda DistrictMunicipalityDr KennethMompati DistrictSegomotsiMunicipalityDr RuthMolema DistrictNgaka ModiriMunicipalityBojanala DistrictProvinceNorth We

South Africa ZAR 2016 North West Province ZAR 2016 North West as a % of South Africa 1 107 472 999 24 747 607 2,23% Imports Value (ZAR): 1 089 677 002 5 878 139 0,54% 2.3 North West Provincial Overview and Priorities The North West is a large and significant local economy in the South African economic context. The

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