East London IDZMain Title: Sub title

By: Joe Bloggs

23 March 2010

The Home of Engineered Efficiency

Eastern Cape Location in South Africa• Centrality of coal to energy as an economic

driver• Embracing regional geo-climatic conditions

& oceanography

Eastern Cape overview

• Located in south-eastern part of South Africa • Six district municipal areas and one metropolitan area,

Nelson Mandela Bay • More than 60% of the province is rural • Urban nodes: Port Elizabeth (Nelson Mandela Bay) East

London (Buffalo City Municipality) • Area 168,966 sq km • Population 6.65 million (3rd largest of nine provinces)

Eastern Cape Proximity to Gateways by Air

Eastern Cape Proximity to Markets by Sea

• Marine Aquaculture

• Automotive & Automotive

Components

• General manufacturing

• Agriculture & Agro-processing

• Business Process Outsourcing &

Offshoring (BPO & O) & Information

Communication Technology (ICT)

• Renewable Energy

Main Sectors

Underexploited

SwordfishRound herringSeaweeds

Overexploited, threatened, endangered or collapsed

Deep-water hakeSouthern bluefin tunaLinefish (not individually listed)NetfishAbaloneWest Coast rock lobsterOysters (South Coast)

Optimally Exploited

Shallow-water hakeAnchovySardineAlbacoreYellowfin tunaBigeye tunaSquidSouth Coast rock lobsterPrawnsOysters (KZN)Kelps

Status uncertain

Agulhas soleCape horse mackerelPatagonian toothfishSharksSome linefishWhite musselOther invertebrates

State of Marine Living Resources

South Africa

Eastern Cape

Western Cape

Northern Cape

KwaZulu-Natal

Geographic Distribution of Mariculture in SA

Key

Finfish Farm Oyster Farm Abalone Farm Mussel Farm

Operational Farms

• () finfish hatchery in Gansbaai on same premises of abalone farm, therefore not counted in the totals.

•

Number of Operational Farms per species and province

Species Western Cape

Eastern Cape Northern Cape KwaZulu Natal Total

Abalone 11 1 2 0 14

Finfish 0(1) 3 0 1 4(1)

Mussels 3 0 0 0 3

Oysters 6 5 1 0 12

Total 20 9 3 1 33

Overview Of Production in SA During 2010

Production per Species and Province

Species Western

CapeEastern Cape

Northern Cape

KwaZulu Natal Total

Abalone 812.56 101.02 0* 0 913.58

Finfish 0 20.52 0 2.23 22.75

Mussels 682.40 0 0 0 682.40

Oysters 139.75(35) 83.79(29) 0(41) 0 223.54(105)

Prawns 0 17.90 0 0 17.90

Total 1634.71 223.23 0 2.23 1860.17

Abalone96490%

Kob52.55%

Mussels252%

Prawns0.650%

Oysters33.83%

Sub-sector Value of Mariculture production 2008-2010 (ZAR’millions)

43 farm closure notices issued to shellfish farms in 2010; 31 west of Cape Point and 12 east of Cape Point.

Bio-toxins (Harmful Algal Blooms and Paralytic/Diarrhetic Shellfish Poison associated with upwelling), remainder due to presence of microbiological contamination (E. coli during high rainfall season).

Highlight of Government Interventions

No closures due to other hazardous substances viz. heavy metals, pesticides, PCBs and radionuclides although risk is significant on shellfish.

Aquaculture’s contribution to environmental change is considered to be minimal.

Environmental Management and Monitoring Framework for mariculture being drafted.

Sector specific strategy and incentives under consideration

Highlight of Government Interventions

Who is the East London IDZ?• Prime industrial park in South Africa founded in 2003

• Specially developed for growth oriented manufacturer and marine

aquaculture investor in search of ultimate global competitiveness.

• One of four IDZ’s which are a program of the national Department of

Trade and Industry

• PFMA Schedule 3D entity

• Owned by ECDC & Buffalo City Metro• R3.7 billion worth of investment secured (30 investors).

• Of these 21 are operational in the zone and in the last financial year a total of 1569 manufacturing and supporting services jobs were created.

Offering to Industries

• Unparalleled environment and innovative industrial

solutions

• Access to new markets

• Cluster approach enabling investors to focus on core

business

• PDF file

An Unparalleled Environment to Locate Mariculture Investments

Sub-tropical climate

Variety of indigenous species (seaweed, fin and shell fish) for food and ornamentation

Latitude to farm exotic species following specific authorization

Leased land (eight plots vacant), purpose built aquaculture top structures & offices upon request, designed and delivered to customer specifications

Affordable start up costs for land based grow out facilities: Rental holidays Agriculture vs Industry

Accessible high quality bulk sea water supply at 85 litres/second and effluent handling based on at 85% water recirculation per farmer.

Access to fully-serviced sites (regular municipal and ICT services) with proximity to key transport nodes

An Unparalleled Environment to Locate Mariculture Investments

Favourable and dedicated institutional environment including policy and incentives Vibrant and world class research and technical expertise Dedicated 32 ha marine aquaculture cluster with Environmental Impact Assessment

approval for indigenous marine fish farming already granted for at least 10,000 tons annually

ELIDZ site plan

Access to markets• Located on the south eastern sea board of South Africa

Rail, road and air access to major cities in South Africa and

Africa

• Opportunity to optimise trade agreements such as :

• the Africa Growth and Opportunities Act (AGOA) for US

market access

• the South Africa-European Union Free Trade

Agreement for EU market access

• the South African Development Community Free Trade

Agreements for the SADC market access.

Investment OpportunitiesMarine Aquaculture Sector Opportunities

Mariculture Investment Opportunities

The establishment of fin & shell fish hatcheries/grow-out as well as sea weed facilities, fish processing & animal feed production facilities

Exploration and piloting of sea based aquaculture farming

Two investors are already resident going through construction/expansion & pilot production.

Additional investment opportunities are available to partner with existing investors for further expansion.

Research and Development under the auspices of the Science & Technology Park

Marine Aquaculture Enterprises in the East London IDZ

Pure Ocean East London (Pty) Ltd Breeding and grow-out of kob (Argyrosomus japonicus)Experimental breeding and rearing of yellow tail, bream, rock

cod, etc

Oceanwise (Pty) LtdBreeding and grow-out of kob (Argyrosomus japonicus)

African Aquaculture Holdings (now Oceanwise Holdings)

Future Plans to Improve Value Offering

Business plan for an Aquaculture Business Incubator (Concept and Business Case Approved) • Reducing likelihood of enterprise failure

• Increasing sector skills

• Firming up investment pipeline for predictability.

Future Plans to Improve Value Offering

Seawater Quality Monitoring ProgramFulfill local and destination market requirements for

environmental sustainability and food safety.Position fish farming in the ELIDZ to serve as a best

practice for other aquaculture clusters/operations elsewhere.

Identification of strategic sea water inlet/outlet monitoring points throughout supply/discharge reticulation.

Motivate the significance of each of the identified monitoring points.

Specify the elements/compounds to be monitored and threshold concentration for each of the elements/compounds.

Specify the frequency of monitoring.Aerial Photo

Future Plans to Improve Value Offering

Feasibility of leveraging the Agulhas Current for electricity generation

• Reducing the carbon footprint of land based mariculture with potential to extend benefits to other sectors in the regional

• Contributing to the energy mix

• Stabilizing price and supply

• Potential to play into the carbon trade

Future Plans to Improve Value Offering

• Oxygen Generation Plant• Fish Feed Manufacturing Facility• Fish Processing Facility• Aquatic Animal Health Clinic• Waste Management (Fish Farm Sludge)• Feasibility of leveraging the Agulhas Current for

electricity generation• Cost benefit analysis - a dedicated offshore

effluent outfall vs existing municipal facility

All you need for marine aquaculture business in one zone

Contact Ntobeko Bacela: Sector Manager – Aquaculture

ntobeko@elidz.co.za

Tel: +27 43 702 8213Cell: +27824593412Fax: +27 43 702 8251

www. elidz.co.za