Sector: Real Estate /Infrastructure

Investment Opportunity – Implementation  of N12 West Integrated Human Settlement Catalytic Project

Location: Klerksdorp N12 Route

MATLOSANA ESTATES IS HERE

Following a national call by the Department of Human Settlements for expression of interest for catalytic projects, a bid was submitted by MXN Development Construction CC with the support of the City of Matlosana.

Suitable municipal land has been made available for the implementation of the N12 West Catalytic Integrated Human Settlement Project and this development also fits in with the aims and objectives of the “Presidential Distressed Mining Towns Programme” of which the City of Matlosana was identified as one of the mining areas which had been prioritised for revitalization. The development is also in line with the National Approach for Integrated Human Settlements and  caters for all housing typologies, including affordable / bonded housing; Finance Linked Individual Subsidised Programmes (FLISP); social housing; commercial and rental units; subsidised (RDP) housing; and CRU (Community Residential Units).  Serviced stands will also be made available for  individuals wishing to construct their own personalised housing unit.

As an integrated human settlement development, the provision of adequate social support structures and opportunities for job creation is of paramount importance and provision will also be made for stands for social amenities such as schools, clinics, crèches, sports facilities and stands for business and commercial development.

The N12 West Integrated Human Settlement Catalytic Project will be implemented in thirteen (13) development phases and this new urban area will be known as  Matlosana Estates.  Matlosana Estates  will have far reaching positive impacts on the community of Klerksdorp in the form of job creation, social development, housing (affordable and subsidised), commercial opportunities, supply of bulk infrastructure and is situated on the vacant portions of land between Meiringspark (east)  Alabama / Manzilpark (west), Jouberton (south) and on the land either side of the N12 National Treasure Route in the area surrounding the Rio Casino.

Catalytic Development will consist of:

6816 Single Residential Housing Units

3025 Social Housing units

6 Business Stands (± 12.9 ha)

10 Mixed Land Use Stands (± 18.3 ha)

2 Primary Schools

1 Secondary School

2 Community facilities

9 Crèches

12 Churches and

2 Laundry sites

(Total of 502 Hectares of development with 9841 residential units)

 

Project Value

R8 Billion rand over a 7 year period

Developer

 Mr. Nhlanhla Nkala - Director: MXN Development Construction

Sector: Manufacturing and Mining

Investment Opportunity: Industrial Park Development

Location: Matlosana

The opportunity exists for the development of an industrial park situated in the Matlosana Local Municipality, operated by an administrative team which rents out serviced industrial space to numerous manufacturing businesses. The industrial park will focus on small and light industries and provide affordable industrial space for SMMEs. Businesses located in the industrial park will be focussed on serving the local mining and manufacturing industry.  The target market would therefore be industries which manufacture tools, machinery, high value components and material and apparel for the mining industry. Other industries to be attracted to the industrial park development include, metal beneficiation (ferrous and non-ferrous metals), agro-processing and solar geyser manufacturing, manufacturing of mining tools and apparel, and machinery in support of the mining companies in the area.

Project Overview

 Investors are needed to provide funding and support to the industrial park development in a Public Private Partnership agreement.   The City of Matlosana has made land available for the development of the industrial park.  A business plan has been finalized for the project and the North West Development Corporation has already been identified as a potential investor and partner in the development and operation of the park.

The industrial park will comprise of 50m2 and 100m2 units. It will be large buildings comprising of several units. Each unit will have access to bulk services.

The key items included in the capital expenditure for the industrial park include amongst others the following; property (light/medium industrial property), buildings (administrative, industrial building with manufacturing units), bulk services installation as well as equipment and furniture.

Project Timeline Summary

This business venture is ready for implementation once interested investors are identified.  It is estimated that it would take approximately one (1) year before the units can be rented out.

Project Value

ZAR 35million.

Project Promoter

MA Khuzwayo: Assistant Director Economic Growth Directorate - City of Matlosana

Sector: Infrastructure

Investment Opportunity – Airport Expansion

Location: Matlosana N12 Route

The City of Matlosana owns and operates the PC Pelser Airport outside Klerksdorp. An opportunity exists to expand the airport to cater for cargo, national passengers or as a flying school.   It is envisaged that the current Airport can be expanded into a secondary regional airport, similar in size to airports like Wonderboom, Margate, Phalaborwa or Richards Bay catering primarily for cargo.

Project Overview

The project entails undertaking an extension of the runway as well as upgrade of the terminal building and equipment at the PC Pelser Airport. A feasibility study has been completed. A PPP project finance model is envisaged between the developers and the City of Matlosana, with the possibility of a BOT arrangement.  The expanded Klerksdorp Airport should ideally be designed to cater for an Embraer 145 (50-seater) in the medium term, and a B737-200 (130-seater) in the longer term, with the main runway length being increased from its current dimensions of 1500 x 18, to 2430 x 30 in the medium term, and 3749 x 45 in the longer term.

The Final Feasibility Report for the Micro & Macro Economic Assessment of the Proposed

Expansion of the Klerksdorp Airport shows that with an initial investment sum of approximately R128 million for the proposed airport upgrade for a proposed starting air traffic demand of 86 passengers per day, the proposed development is not in strict financial terms a viable proposition. However, taking into account an economic cost benefit analysis (CBA), there is a positive impact on the economy surrounding the airport, and such a project will benefit the Klerksdorp community at large.

Project Value

R128 million

Project Promoter

MA Khuzwayo

Assistant Director Economic Growth Directorate - City of Matlosana

Sector: Green Economy

Investment Opportunity – Renewable Energy - Biodiesel

The South African sunflower industry is concentrated in the North West Province (NW) and Free State (FS), which together account for 79% of the national area planted to sunflower. According to Grain SA, over the years, sunflowers have received the status of an ideal crop to grow in South Africa under conditions of low-input farming and marginal cropping conditions. Sunflowers’ ability to produce relatively consistent yields under adverse weather conditions and their overall characteristic of drought-tolerance makes it an attractive crop for producers in dryland production regions. Sunflowers can also produce a crop on marginal soils with very little or no additional fertiliser. With the increased global imperative for alternative energy sources, the opportunity exists in the North West Province to derive bio-diesel fuel from sunflower. Biodiesel is a cost effective alternative to fossil fuel.

Project Overview

The Company has secured the rights to produce bio-diesel from sunflower seeds and the City of Matlosana has availed land for the project where the refinery operations will take place. A feasibility study and project business plan have been concluded.  A public private partnership is envisaged for the project.  The funding will utilised for land cultivation, technology and capital plant, investment in the refinery and capital plant. Working capital requirements include refining and expressing plants operations. as well as refining and plant expressing operations.   The project has various revenue sources as all parts of the sunflower seed will be used.  The oil will be used for Biodiesel Manufacture, the oil cake for animal feed and the shell for charcoal production

Envisaged Funding

  • Land cultivation
  • Technology and Capital Plant
  • Refinery Infrastructure
  • Refinery
  • Expressing Plants

Project Value

± R120 million

Project Promoter

MA Khuzwayo

Sector: Agriculture and Agro processing

Investment Opportunity: Piggery Production

Location: Matlosana

Background

South Africa contributes less than 0.5% to global pork production.  Of the 485 abattoirs in South Africa, only 150 slaughter pigs.  The average annual growth over the past decade is 4.5%, second to the to the broiler industry.  Growth experienced can be attributed to increased production efficiencies and carcass weight not increased sow herd.  83% of total pig number originates from the commercial sector.   Production is mostly concentrated near major maize, sunflower and soybean production areas and very close to Urban markets (100-200km).  North West Province accounts for 21% of commercial production; the highest being Limpopo at (23%).  Pork represents 7% of total meat consumed in SA.  Production is projected to expand by 42% over the next decade.

Project Overview

The proposed piggery will operate the farrow to finish system of production, with throughput capacity of 100 pigs per day.   The target annual marketable product is 36000 porkers.   The piggery will produce porkers and supply the market (Agri-Hub).  A business plan has been concluded and a PPP arrangement is envisaged for the project.  The Municipality will avail the 25 hectares of land required for buildings and infrastructure.   A project developer and investor(s) is required to enter into a PPP with the Municipality on the project.  A project IRR of 15,31% is projected.

Project Value

Capital Expenditure - ZAR168 million

Project Promoter

MA Khuzwayo

Assistant Director Economic Growth Directorate - City of Matlosana

Tel: +27018 487 9600

Fax: +27018 462 2365

E-mail:  akhuzwayo@klerksdorp.org

Sector: Tourism

Investment Opportunity: Development of a Mining Theme Park – Goudkoppie Theme Park

Location: Klerksdorp

 Project Overview

The project entails the establishment of a theme park where Gold was first discovered in South Africa.   Central to the project is the development of an international convention centre with an open stage and 2000 seater auditorium. The project will also involve the building of a five-star Hotel, upgrading the tourist information centre, construction of an open stage and auditorium establishment of a jewellery and education centre

Project Value

± R2 billion

Project Promoter

MA Khuzwayo

Assistant Director Economic Growth Directorate - City of Matlosana

Tel: +27018 487 9600

Fax: +27018 462 2365

E-mail:  akhuzwayo@klerksdorp.org

Sector: Heritage Tourism

Investment Opportunity: Reconstruction of the Birth Place of Bishop Tutu

Location: Klerksdorp

Background

Bishop Tutu is one of the icons of Klerksdorp as this is where he was born.  There is a need to reconstruct the house he was born in, as a national museum.  A shelter and home for the destitute and an information technology center will also be built at the museum as per Bishop Tutu’s wish.

Project Overview

The project involves the reconstruction of the house where Bishop Tutu was born as well as the building of a shelter and home for the destitute.  Building and equipping of information technology center.

Project Value

± R40 million

Project Promoter

MA Khuzwayo

Assistant Director Economic Growth Directorate - City of Matlosana

Tel: +27018 487 9600

Fax: +27018 462 2365

E-mail:  akhuzwayo@klerksdorp.org

Sector: Tourism

Investment Opportunity: Faan Meintjies Game Reserve

Location: Klerksdorp

Background

An opportunity exists for the establishment of an Eco-tourism centre linked to a game farm.

Project Overview

The project involves the building of an education centre, additional chalets, additional African huts and cultural village, an entertainment area, caravan park as well as the preservation of the eco system.

Project Value

±R20m

Project Promoter

MA Khuzwayo

Assistant Director Economic Growth Directorate - City of Matlosana

Tel: +27018 487 9600

Fax: +27018 462 2365

E-mail:  akhuzwayo@klerksdorp.org

Sector: Education, Research and Development

Investment Opportunity – Establishment of a University of Technology Campus

Location:  Matlosana

Background

An opportunity exists for the establishment of tertiary institution within the City of Matlosana.  The Matlosana Local Municipality (MLM) used to have the Vaal University of Technology (VUT) Campus which closed its doors in recent years due to amongst other reasons lack of financial resources resulting in declining enrolment numbers and ultimately its closure. The campus catered for learners from the City and neighboring towns and regions, and had positive economic spinoffs for the municipality.  MLM has since commissioned Mbuso Management Solutions to lead the process of reinstating the campus in the City; talks between the parties are at an advanced stage. A Private-Public-Partnership arrangement is envisaged for the project, with the key role players being VUT, Mbuso Management Solutions and Matlosana Local Municipality - with clear key performance areas meant to make the institution sustainable.

The campus will be a “community institution” with decentralized campuses across all four towns of the City with civil society and community business structures playing a meaningful role in the ownership of key assets and supply of critical services to the institution.  The curriculum design of the campus will undertake an “outside-in” approach whereby thorough research of relevant developmental industry/sector needs and skills requirements will be undertaken so that the programmes offered prepare the youth to drive local/regional economic growth and to become global and futuristic citizens.

Although the campus will offer accredited programmes by VUT, there will be specialized, privately owned faculties that will offer international programmes of significance to the city’s growth trajectory as encapsulated in the City’s growth and development strategy aligned to the National Development Plan, the Provincial 5 Concretes, and Competency analysis of the City.

The other significant feature of the institution will be the creation of the “innovation hub” whereby bright stars from different faculties would be incubated over a period of time to create innovative and “disruptive” solutions to different industries and sectors.

Project Overview

Investment opportunities lie in the construction/refurbishment of existing teaching facilities, student accommodation, residences for general staff and specialists/teaching staff, specialized sector schools, innovation hubs and commercial properties.

Project Timeline Summary

PPP MOU Signed – 12 May 2017

Feasibility Study – 31 August 2017

Final MOU Signed – End Sept 2017

Project Value

Pending the outcomes of the feasibility study

Sector: Transport Infrastructure

Investment Opportunity – Establishment of a Truck Inn

Location: Matlosana N12 Route

Bordering Botswana, the North West is ideally positioned to access the 14 countries comprising the Southern African Development Community (SADC). The province’s well developed road and rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa. By virtue of its central location in this road transport network, with the N12 running as the main artery into neighbouring countries of Botswana and Namibia, the City of Matlosana has high volumes of commercial and private vehicles passing through it.

Project Overview

The opportunity exists to establish a one stop Truck Inn on both sides of the N12 Route in Klerksdorp.  Services to be provided at the Truck Inn include driver accommodation and rests rooms, truck spares, servicing, tyre sales and repairs.  In addition, the Truck Stop will provide counselling and health facilities for truck drivers.

Project Value

± R15 million

Project Promoter

MA Khuzwayo

Assistant Director Economic Growth Directorate - City of Matlosana

Tel: +27018 487 9600

Fax: +27018 462 2365

E-mail:      akhuzwayo@klerksdorp.org

Sector: Agriculture & Agro Processing

Investment Opportunity – Ready-to-eat Foods Processing and Distribution

Location: Matlosana

Background

Food security, job creation, poverty alleviation and affordable nutritional foods are topical issues that Africa is facing.  Extrusion is a mature and robust technology that can be used in Africa to attend to these issues.  It is a continuous high pressure cooking process that is used to process grains and pulses.  It is furthermore energy efficient, cost effective and has no waste streams compared to other traditional cooking processes.

The North-West University (NWU) started in 1998 with a research project to develop and localize twin-screw extrusion.  This was done successfully and since 2007 twin-screw extruders and related equipment have been produced locally by CFAM Technologies which is a spin-off company of the NWU.  CFAM is currently the only manufacturer of twin-screw extruders in Africa.  Its extruders earned a reputation as ”Built in Africa for Africa”.

The NWU and CFAM establish jointly the Extrusion Research and Development Centre.  The Centre is also supported by the Department of Trade and Industry (dti) through the Extrusion and Advanced Manufacturing Cluster (EAMC).  It performs applied research to develop affordable nutritional foods from locally produced agricultural products.   Applications for most locally available grains and pulses have already been developed.

Project Overview

The proposed extrusion plant with distribution system will produce ready-to-eat food extruded products from locally produced agricultural products.  These will include snacks as well as cereal porridges that will be sold by street vendors as Meals-on-the-go or Meals-in-a-bag.  The plant will have a production capacity of 3000 tonnes per year.

The project will entails the development of a new value chain from emerging farmers to street vendors that sell the extruded products to the local market.  It will enhance and drive the local economy by addressing food security through the production of nutritious, marketable and affordable products.

The main advantage of the project is that 75% of the income in the value chain will go to 100% B‑BBEE companies.  A total of 265 jobs will be created.  A business plan has been developed.   The project has an IRR of more than 25%.  A project investor is required to enter into PPP with CFAM, the NWU and EAMC in establishing the plant and facility.

Project Value:  Capital Expenditure – R26-million

Project Promoter

Prof LJ Grobler

Professor:  Centre for Advanced Manufacturing, NWU

CEO: Extrusion and Advanced Manufacturing Cluster NPC

Tel:         082 452 9279

E-mail     lj.grobler@nwu.ac.za