1

NORTH WEST PROVINCE PROFILE 2017

1) THE NORTH WEST PROVINCE LOCATION

South Africa is strategically located at the southern point of Africa. The North West Province of South

Africa is located to serve as a gateway to the Southern Africa Development Community (SADEC) with

the N4 Highway that connects the Walvisbay Port in Namibia with the Maputo Port in Mozambique

running through the province.

2) WELCOME TO THE NORTH WEST PROVINCE

2.1 About the North West Province

The North West Province of South Africa is also known as Bokone Bophirima (BB). It is bordered by

Botswana and the Limpopo 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 the

Southern African Region makes the North West the perfect gateway for reaching the Southern African

Development Community (SADC).

The mainstay of the economy is mining, which generates more than half of the province's gross

domestic product and provides jobs for a quarter of its workforce. Main minerals mined include

platinum, mined at Rustenburg and Brits; gold, mined at Orkney and Klerksdorp; uranium, mined at

Klerksdorp; and diamonds, mined at Lichtenburg, Christiana, and Bloemhof.

In terms of agriculture, the northern and western parts of the province are well- known for livestock

farming, including cattle, sheep and game. The Bokone Bophirima Province is also the biggest

2

contributor to the poultry industry in South Africa. The eastern and southern parts produce a wide

variety of crops including maize (corn), sunflower, tobacco, cotton, and citrus fruits. There are also

specialist 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, contributing

8.6% 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 307 520

and a regional gross domestic product (GDP-R) of ZAR18.3bn. Other cities or larger towns are

Rustenburg 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 as

Ventersdorp/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 Regional

eXplorer 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 South

African Rand (ZAR).

An extensive road network of more than 1 785km connects the major commercial centres of the

province to the rest of the country. The vital east-west corridor links the east African seaboard at

Maputo to the western African seaboard at Walvis Bay, running through the North West. Its strategic

positioning has been further improved with the completion of the Trans Kalahari Corridor through

Botswana and Namibia – and these developments bode well for a thriving business and tourism

economy.

The main railway line from Cape Town to Zimbabwe railway line runs through the provincial capital of

Mahikeng, linking the North West to several southern African countries, including Angola, Zambia and

Botswana.

In terms of airports, the provincial government has recently commissioned the Mahikeng International

Airport which has one of the longest runways in the world and the Pilanesberg Airport (near Sun City

and the well-known Pilanesberg game reserve) also has since been upgraded to an international

airport, servicing primarily the tourism industry.

3

Water is not naturally found in abundance in the North West Province; however this creates an

opportunity for investment in water efficient technologies to meet agricultural, industrial and domestic or

household water demands. There also is a need to rectify the polluted groundwater caused by both

natural and human induced factors including mining and industrial activities, agriculture and domestic

use.

The North West Province has access to the ESKOM electricity supply network. The national

government is providing investment incentives and induced demand for clean energy. The climatic

conditions of the province as well as the availability of platinum make the province an ideal investment

destination for those who want to invest in alternative and renewable energy projects.

2.2 North West Quick Facts

The quick facts in the table below place the North West Province in context.

Official Name: North West Province of South Africa

Provincial Premier: Supra Obakeng Ramoeletsi Mahumapelo

Capital City: Mahikeng

Population: 3 787 979 (6,8% of South Africa)

Area km²: 104 882 (8,6% of South Africa)

Total GDP-R (ZAR): Constant 2010

prices (R 1000):

ZAR173 807 498 (5,66% of South Africa)

GDP GROWTH: Constant 2010

prices

2,9%

GDP Per Capita (ZAR): ZAR45 884

Inflation: 6,59% ( Average 2016) STATSSA

Unemployment Rate: 27,4%

Principal Languages: Setswana, English, Afrikaans

Major Cities & Towns: Rustenburg, Brits, Mahikeng, Tlokwe, Matlosana and

Vryburg

Airports: Mahikeng and Pilanesberg

Rainfall: 400 – 700 mm per annum

Infrastructure: Good road, rail and air network

Water

4

Electricity

Telecommunications

Residential & commercial space

Health care

Higher educational facilities

Convention and exhibition venues

North West Export Partners: 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 and

equipment mining products, electronic and medical

equipment, foodstuffs and textiles

Exports Value (ZAR):

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

area contributes approximately 6.1% to national production with mining, agriculture and manufacturing

5

contributing the largest portion of provincial output considerING that 65% of the province is rural with a

low economic base.

The North West Province endorses and subscribes to the National Development Plan (NDP) as an

overarching policy framework that guides implementation across all spheres of government. In

response to the NDP the North West Province has identified an approach which recognizes the need to

Rebrand, 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 in

rural areas. Mining, manufacturing, retail, energy and construction will serve as tributary

sectors;

VTSD (Villages, Townships and Small Dorpies) refers to focus areas;

RHR (Reconciliation, Healing and Renewal) seeks to deal with issues of moral and social

cohesion;

Setsokotsane is an approach for Radical Socio Economic Transformation and accelerated

service delivery; and

Saamwerk-saamtrek (working together and co-ordinating) philosophy encouraging the spirit

of 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 the

provincial 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 Provincial

Development Plan (PDP

While some areas of the Province have been very good at tapping into this extraordinary potential as a

way to promote economic and socio-economic development, it however appears that many others still

remain unexplored economic development potentials.

2.5 The Villages, Townships and Small Dorpies (VTSD) Strategic Objectives in the

North West

In responding to the skewed economic inequalities, the Provincial Government came up with VTSD

strategy as the second concrete. This concrete seeks to channel the Provincial resources to the

previously ignored communities in the Villages, Townships and Small Dorpies (VTSD) in order to

6

improve/revive their economy. Aligned to the VTSD strategy is the new planning approach to a people-

centred 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 to

VTSD

To target the North West Province economy at a 6% threshold of growth by 2020, infused in

VTSDs 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 townships

resulting in the resuscitation of villages, townships and small dorpies.

3) THE NORTH WEST PROVINCE AS A PREFERRED INVESTMENT DESTINATION

3.1 Reasons 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 the

Limpopo 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 the

Southern African Region makes the North West the perfect gateway for reaching the SADC and

access to markets in the SADC region and Africa. The province has potentially lucrative

gateway to Africa. Using the position of the province, the prospective investor can attain cost

effective proximity to ideal trading environments throughout the entire Africa and Southern

Africa.

Bordering Botswana, the North West Province is ideally positioned to access the 14 countries

comprising the Southern African Development Community (SADC) and the development of the

proposed Trans-Kalahari corridor will enhance North West Province access to the West African

market. We are strategically located within the SADC region and provide easy access to this

market of over 250 million consumers. The SADC Foreign Trade Agreement (FTA) signed in

August 2008 provides ready access to these regional markets.

7

Future Trade Agreements between SADC, Common Market for Eastern and Southern Africa

(COMESA) and East African Community (EAC) will provide further access to a market

consisting of more than 700 million consumers.

The North West Province is well positioned as a shared services hub for investors interested in

Southern African operations, especially for Sub-Saharan countries. The Province’s well

developed road and rail links provide the platform and infrastructure for ground transportation

deep into Sub-Saharan Africa.

The North West Province plays a significant role in the supply of energy, transport and

communications to the rest of the continent.

North West Province is a province that is serious about business. It is home to a large number

of Trans-National Companies (TNCs) and local companies reinvesting in the province. These

TNC’s and other big businesses are happy to locate within our Province due to the relatively

good quality of life that is available. The Province is characterised by having good infrastructure

which 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 also

have good air links with a number of landing strips around the Province and two airports with

one having an international airport status. We connect closely with OR Tambo International

which is the busiest airport in Africa. The Province has got other important amenities like world

class 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 projects

that are developed. The Province also boasts a well-connected electricity grid which provides

easy access from the majority of locations within the Province. The cost of electricity in South

Africa is still one of the lowest in the world.

Land is abundant and available for developmental purposes; custom-built factories can be

constructed according to specifications. Existing standardised factory buildings are also

available 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 for

implementation through investment, supported by a solid financial services sector.

The North West Province is a malaria-free area which boasts over 14 game reserves game

reserves that are well maintained.

4. Economic Overview

8

The economy of the North West Province is dominated by mining which contributes about 30% of the

provincial 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% of

manufacturing 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 as

compared to South Africa. Source: IHS Global Insight: Regional eXplorer 1070 (2.5y) 2016 figures.

The table below indicates the North West Sector Contribution to GDP and Employment.

Sector Contribution to

GDP (2016)

%

Sector Contribution

to Employment

(2016)

%

Primary Sector Agriculture 3 6.3

Mining 33 17.6

Secondary Sector Manufacturing 5 7.7

Electricity 3 0.4

Construction 3 7.2

Tertiary Sector Trade 12 20.7

Transport 7 3.9

Finance 13 11.1

Agriculture MiningManufacturi

ngElectricity

Construction

Trade Transport FinanceCommunity

services

SA 2,4% 7,9% 13,4% 3,7% 4,0% 15,2% 10,1% 20,2% 23,1%

NW 2,7% 32,9% 5,5% 3,4% 2,6% 12,1% 6,6% 13,2% 21,1%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

Sect

or'

s sh

are

of

regi

on

al t

ota

l %

Gross Value Added by Region (GVA-R), Broad Economic Sectors (9 sectors), Sector's share of regional total

(%) (2016)

9

Community

Services

21 25.1

TOTAL ZAR264 bn 836,000 Jobs

As % of National GDP 6.1% 5.3%

(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 economic

sector in the North West Province (2016). The location quotient ≥ 1.1 indicates that the sector has a

comparative advantage in the area.

LOCATION QUOTIENT 2016

AREA

ECONOMIC SECTORS (Source: IHS Markit: Regional eXplorer

1070 (2.5y)

Ag

ricu

ltu

re

Min

ing

Man

ufa

ctu

rin

g

Ele

ctr

icit

y

Co

nstr

ucti

on

Tra

de

Tra

nsp

ort

Fin

an

ce

Co

mm

un

ity

serv

ice

s

North-West (2016 boundaries) 1,10 4,18 0,41 0,90 0,65 0,79 0,65 0,65 0,91

District Municipalities

BPDM 0,43 6,51 0,41 0,68 0,47 0,63 0,50 0,52 0,55

NMMDM 1,99 0,71 0,49 1,45 0,83 0,92 0,85 0,76 1,58

DRSMDM 3,32 0,83 0,29 1,35 1,02 1,06 0,90 0,90 1,25

DKKDM 1,33 2,47 0,38 0,89 0,83 0,99 0,78 0,80 1,15

Local Municipalities

Bophirima Provincial District Municipality

Moretele 0,33 0,25 0,77 2,07 0,83 1,17 0,90 1,32 0,97

Madibeng 0,75 3,74 0,77 0,84 0,69 0,82 0,75 0,71 0,79

Rustenburg 0,25 9,00 0,20 0,33 0,29 0,41 0,31 0,34 0,32

Kgetlengrivier 0,52 9,07 0,19 0,25 0,33 0,38 0,36 0,27 0,34

Moses Kotane 0,37 5,71 0,21 1,20 0,50 0,87 0,46 0,52 0,72

Ngaka Modiri Molema District Municipality

Ratlou 2,68 0,49 0,26 0,72 0,84 0,85 0,76 0,84 1,84

Tswaing 6,18 0,77 0,44 0,64 0,89 0,90 0,83 0,59 1,43

10

Mahikeng 0,88 0,30 0,28 1,53 0,75 0,92 0,80 0,88 1,87

Ditsobotla 2,83 1,11 0,91 0,61 1,00 0,88 1,09 0,66 1,23

Ramotshere Moiloa 1,38 1,14 0,46 3,41 0,69 1,02 0,62 0,64 1,36

Dr Ruth Segomotsi Mompati District Municipality

Naledi 3,61 0,23 0,29 1,06 0,83 1,33 1,17 1,11 1,02

Mamusa 4,73 1,07 0,23 1,08 1,48 1,13 0,79 0,96 0,98

Greater Taung 1,27 1,20 0,17 2,09 0,85 0,95 0,77 0,94 1,42

Lekwa-Teemane 4,11 0,95 0,69 0,62 1,20 1,05 0,96 0,70 1,14

Kagisano/Molopo 4,70 0,66 0,17 1,36 1,05 0,83 0,80 0,65 1,64

Dr Kenneth Kaunda District Municipality

City of Matlosana 0,51 3,37 0,29 0,74 0,76 1,00 0,81 0,81 0,98

Maquassi Hills 5,33 1,73 0,40 0,72 1,24 0,99 0,75 0,64 1,08

JB Marks 2,03 1,13 0,51 1,16 0,89 0,97 0,74 0,81 1,42

3.2 Key Statistics

In the table below key statistics for South Africa, the North West and the North West District

Municipalities are indicated:

KEY STATISTICS: South Africa, North West Province and NW District Municipalities (2016)

Source: IHS Markit; Regional eXplorer 1070 (2.5y)

So

uth

Afr

ica

No

rth

We

st

Pro

vin

ce

Bo

jan

ala

Dis

tric

t

Mu

nic

ipality

Ng

aka M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipality

D

r R

uth

Seg

om

ots

i

Mo

mp

ati

Dis

tric

t

Mu

nic

ipality

D

r K

en

neth

Kau

nd

a D

istr

ict

Mu

nic

ipality

Size of Area (km²) 1 221 246 104 882 18 333 28 114 43 764 14 671

% Share of

Province

8,6% 17,5% 26,8% 41,7% 14,0%

Demographi

c

Total population 55 724

934

3 787

979

1 671

586

885 738 484 776 745 878

% Share of

Province

6,8% 44,1% 23,4% 12,8% 19,7%

Developmen Human

Development

0,64 0,60 0,64 0,56 0,52 0,62

11

t Index (HDI)

Gini coefficient 0,63 0,61 0,61 0,60 0,57 0,60

Sector’s Employment Share of Regional Total (%):Source: IHS Markit; Regional eXplorer 1070 (2.5y)

So

uth

Afr

ica

No

rth

We

st

Pro

vin

ce

Bo

jan

ala

Dis

tric

t

Mu

nic

ipality

Ng

aka M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipality

D

r R

uth

Seg

om

ots

i

Mo

mp

ati

Dis

tric

t

Mu

nic

ipality

D

r K

en

neth

Kau

nd

a D

istr

ict

Mu

nic

ipality

Agriculture 6,5% 6,8% 3,6% 10,2% 17,3% 8,4%

Mining 3,5% 18,7% 30,6% 1,9% 3,8% 6,9%

Manufacturing 11,2% 7,2% 7,9% 5,7% 4,6% 7,7%

Electricity 0,7% 0,5% 0,4% 0,6% 0,8% 0,5%

Construction 6,2% 5,0% 5,1% 4,4% 4,1% 5,5%

Trade 17,1% 15,3% 14,5% 16,1% 14,1% 17,3%

Transport 4,7% 2,5% 2,3% 3,1% 2,5% 2,7%

Finance 17,8% 10,8% 9,4% 12,8% 10,1% 13,0%

Community services 22,4% 22,4% 17,1% 32,3% 26,4% 26,5%

Households 9,8% 10,9% 9,2% 13,0% 16,2% 11,5%

Total 100% 100% 100% 100% 100% 100%

Number of informally

employed people

2 597 987 119 524 57 093 23 652 12 450 26 329

Total Employment

(Formal + Informal)

15 651

006

834 307 448 762 151 697 68 901 164 947

Inco

me &

Exp

en

dit

ure

Annual per capita

income (Rand, current

prices)

50 702 45 750 54 295 35 209 29 292 49 941

Annual per household

income (Rand, current

prices)

180 429 153 359 165 660 133 164 110 153 169 819

Index of buying power 1,00 0,06 0,03 0,01 0,01 0,01

Eco

no

mi

c

Gross Value Added by

Region (GVA-R) current

prices (ZAR 1000)

3 869 459

518

233 023

377

122 392

452

40 032

180

15 056

749

55 541

995

12

% Share of SA 100% 6,0% 3,2% 1,0% 0,4% 1,4%

Gross Value Added by

Region (GVA-R)

constant 2010 prices

(ZAR 1000)

2 793 653

043

157 876

027

85 617

704

27 523

622

10 018

901

34 715

800

% Share of SA 100% 5,7% 3,1% 1,0% 0,4% 1,2%

Average annual growth

(Constant 2010 Prices)

0,4% -1,3% -2,8% 0,3% -1,2% 1,2%

Sector’s GDP Share of Regional Total (%):Source: IHS Markit; Regional eXplorer 1070 (2.5y)

So

uth

Afr

ica

No

rth

We

st

Pro

vin

ce

Bo

jan

ala

Dis

tric

t

Mu

nic

ipality

Ng

aka M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipality

D

r R

uth

Seg

om

ots

i

Mo

mp

ati

Dis

tric

t

Mu

nic

ipality

D

r K

en

neth

Kau

nd

a D

istr

ict

Mu

nic

ipality

Agriculture 2,4% 2,7% 1,1% 4,9% 8,1% 3,2%

Mining 7,9% 32,9% 51,2% 5,6% 6,5% 19,4%

Manufacturing 13,4% 5,5% 5,5% 6,6% 3,9% 5,1%

Electricity 3,7% 3,4% 2,5% 5,4% 5,0% 3,3%

Construction 4,0% 2,6% 1,9% 3,3% 4,1% 3,3%

Trade 15,2% 12,1% 9,6% 14,0% 16,2% 15,1%

Transport 10,1% 6,6% 5,0% 8,6% 9,1% 7,9%

Finance 20,2% 13,2% 10,5% 15,3% 18,2% 16,2%

Community services 23,1% 21,1% 12,7% 36,5% 29,0% 26,5%

Total Industries 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%

Gross Domestic Product -

GDP (Current prices (ZAR

1000)

4 336 991

518

262 938

545

137 451

292

45 870

223

17 309

158

62 307

873

% Share of National 100,0% 6,1% 3,2% 1,1% 0,4% 1,4%

Gross Domestic Product –

(GDP in constant 2010

prices (ZAR 1000))

3 071 637

043

173 807

498

93 915

892

30 634

900

11 193

453

38 063

253

% Share of National 100,0% 5,7% 3,1% 1,0% 0,4% 1,2%

Average annual growth

(Constant 2010 Prices)

0,3% -1,3% -2,8% 0,2% -1,2% 1,0%

13

GDP-R per

Capita(Current prices

(ZAR 1000)

77 829 69 414 82 228 51 788 35 705 83 536

GDP-R per

Capita(Constant 2010

Prices)

55 121 45 884 56 184 34 587 23 090 51 031

Tress index1 40,03 50,68 63,42 46,05 41,92 44,26

Location Quotient: Source: IHS Markit; Regional eXplorer 1070 (2.5y)

So

uth

Afr

ica

No

rth

We

st

Pro

vin

ce

Bo

jan

ala

Dis

tric

t

Mu

nic

ipality

Ng

aka M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipality

D

r R

uth

Seg

om

ots

i

Mo

mp

ati

Dis

tric

t

Mu

nic

ipality

D

r K

en

neth

Kau

nd

a D

istr

ict

Mu

nic

ipality

Agriculture 1,00 1,10 0,43 1,99 3,32 1,33

Mining 1,00 4,18 6,51 0,71 0,83 2,47

Manufacturing 1,00 0,41 0,41 0,49 0,29 0,38

Electricity 1,00 0,90 0,68 1,45 1,35 0,89

Construction 1,00 0,65 0,47 0,83 1,02 0,83

Trade 1,00 0,79 0,63 0,92 1,06 0,99

Transport 1,00 0,65 0,50 0,85 0,90 0,78

Finance 1,00 0,65 0,52 0,76 0,90 0,80

Community services 1,00 0,91 0,55 1,58 1,25 1,15

Total Industries 1,00 1,00 1,00 1,00 1,00 1,00

Tourism: Source: IHS Markit; Regional eXplorer 1070 (2.5y)

So

uth

Afr

ica

No

rth

We

st

Pro

vin

ce

Bo

jan

ala

Dis

tric

t

Mu

nic

ipality

Ng

aka M

od

iri

Mo

lem

a D

istr

ict

Mu

nic

ipality

D

r R

uth

Seg

om

ots

i

Mo

mp

ati

Dis

tric

t

Mu

nic

ipality

D

r K

en

neth

Kau

nd

a D

istr

ict

Mu

nic

ipality

Total Tourism Spend (R 1000,

Current prices)

236 847

190

11 331

528

7 278

314

2 131

478

558 182 1 363

555

Growth in Tourism (using bed-nights) by origin

Domestic tourists -5,7% -7,5% -7,3% -7,8% -7,6% -7,5%

14

International tourists -6,9% -4,4% -4,3% -4,2% -3,9% -5,0%

Total tourists -6,2% -6,6% -6,3% -7,1% -7,1% -6,8%

Total Tourism spend as % of GDP

(Current prices)

5,8% 4,6% 5,6% 5,0% 3,5% 2,4%

International Trade: Source: IHS Markit; Regional eXplorer 1070 (2.5y)

So

uth

Afr

ica

No

rth

We

st

Pro

vin

ce

Bo

jan

ala

Dis

tric

t

Mu

nic

ipality

N

gaka M

od

iri

Mo

lem

a

Dis

tric

t

Mu

nic

ipality

D

r R

uth

Seg

om

ots

i

Mo

mp

ati

Dis

tric

t

Mu

nic

ipality

D

r K

en

neth

Kau

nd

a

Dis

tric

t

Mu

nic

ipality

Exports (R 1000) 1 107 472

999

24 747

607

21 046

353

1 246

032

582 597 1 872

625

Imports (R 1000) 1 089 677

002

5 878 139 2 415 301 281 730 213 319 2 967

790

Total Trade (R 1000) 2 197 150

001

30 625

746

23 461

654

1 527

762

795 916 4 840

415

Trade Balance (R 1000) 17 795 997 18 869

468

18 631

052

964 302 369 278 -1 095

164

Exports as % of GDP 25,5% 9,4% 15,3% 2,7% 3,4% 3,0%

Total trade as % of GDP 50,7% 11,6% 17,1% 3,3% 4,6% 7,8%

Regional share - Exports 100,0% 2,2% 1,9% 0,1% 0,1% 0,2%

Regional share - Imports 100,0% 0,5% 0,2% 0,0% 0,0% 0,3%

Regional share - Total

Trade

100,0% 1,4% 1,1% 0,1% 0,0% 0,2%

3.3 Key Economic sectors

3.3.1 Agriculture & Agribusiness

Agriculture is the second sector after mining in which the Bokone Bophirima Province is

acknowledged to have a comparative advantage compared to other provinces in South Africa. The fifth

administration is prioritising support to the sector in order to make it the main sector of the provincial

economy in the future because of its importance in relation to sustainable food security for the province

and the country. The North West is an important food basket of South Africa. Maize and sunflowers are

the most

important crops and the Bokone Bophirima Province is the major producer of white maize in

15

the country. The province produces around 20% of all the commercial maize grown in South Africa.

Sunflower is the most important oilseed crop in South Africa and accounts for approximately

60% of all oilseeds produced locally. The primary by-products of the sunflower seed crushing

industry provides high-value inputs towards the food and animal feed manufacturing sector in

the form of edible oil and protein meal of which the North West is the second largest producer.

In terms of livestock, the North West is well known for cattle farming, to the extent that it is

sometimes referred to as the Texas of South Africa, with some of the largest cattle herds in

the world found at Stellaland near Vryburg. Meat and dairy products are the main products

produced, with goat meat being an untapped investment opportunity.

The agricultural sector produces 3% of provincial GDP and provides jobs for 6.3% of the labour force in

the province. The main agricultural products are sunflower, groundnuts, maize, wheat and cattle. The

eastern part of the province enjoys a higher rainfall and produces vegetables, flowers and poultry.

Horticulture and bi-fuels show particular promise for expansion and several bio-fuel initiatives are

underway.

The areas around Rustenburg and Brits boast fertile, mixed-crop farming land. The northern and

western parts of the province have many sheep farms and cattle and commercial game ranches

contributing through the supply of meat and hunting trophies. The eastern and southern parts are crop-

growing regions that produce maize (corn), sunflowers, tobacco, cotton, and citrus fruits.

3.3.2 Cultural Sector

The arrestingly diverse landscape of the North West is occupied by charming people whose

responsibility to the land parallels their strong sense of tradition. The culture of the people of the North

West is to be found in every aspect of their daily lives - in the beadwork, the pottery, the houses and

their music and song.

The people of the North West are predominantly Batswana in origin and their language is Setswana.

They can trace their origins for many centuries through a vibrant history of war and migration across

the plains and valleys of the province to the borders of the Kalahari. Other groups settled in North West

are the Ndebele in the east and the Sotho to the south.

Bokone Bophirima Province currently has four Community Art Centres. Atamelang Art Centre (Ngaka

Modiri Molema), Kanana Art Centre (Dr Kenneth Kaunda District), Bray Community Art Centre (Dr Ruth

Segomotsi Mompati) and Maubane Community Art Centre (Bojanala District)

16

Motswako Music Genre, Setswana Traditional Music and Cultural Dance are proudly North West

Brands that have to be developed, supported, promoted and marketed vigorously to ensure they

generate substantive income for the Province. Unique cultural ensembles have also been established

and presented. These ensembles are able to accommodate a large number of artists, writers, directors,

technicians, musicians, dancers and actors all at once.

The province also boasts creative writers which creates opportunities for the establishment of a

publishing house that will also attract other writers from other provinces and abroad.

A further opportunity exists for planned and implemented arts festivals to attract scores of visitors from

around the country and other parts of the world. It has potential to create jobs for artists, small

businesses, and will promote the Bokone Bophirima Province as a destination of choice.

The North West has dedicated arts development and training institutions in the form of Mmabana

Centres. These centres are situated in three of the four districts of the Province and are located at

Taung, Mahikeng, Lehurutshe, Klerksdorp and Tlhabane. The Mmabana Arts, Culture and Sport

Foundation is popularly known across the country for producing household names that have dominated

the South African entertainment landscape over the past two decades. The Mmabana Arts, Culture and

Sport Foundation has a vision to be positioned as the paramount Arts Academy in Southern Africa.

3.3.3 Tourism Sector

The North West Province provides attractive tourism and eco-tourism packages. There are over

fifteen parks and game reserves that boast the presence of the so-called Big Five, diverse and prolific

bird species and heritage sites. Cultural villages, heritage sites, casino gambling, theme parks, water

sports, hiking, horseback riding and the unique vegetation of the area present unique attractions for

tourism, game viewing and adventure.

The North West is accessible by air through Pilanesberg Airport and Mahikeng International Airport, as

well as several smaller airports such as Rustenburg and Klerksdorp. The runway at Pilanesberg airport

has recently been extended and upgraded and negotiations are underway to provide the airport with

international status. The TransKaroo rail between Cape Town and Pretoria travels via Potchefstroom

and the Diamond Express via Potchefstroom and Klerksdorp. Both routes provide a daily service.

There is a weekly service from Johannesburg to Mahikeng. Alternatively there is a train to Kimberley

with a connecting service that departs daily to Mahikeng. There is also a tourist train between

Johannesburg and Magaliesburg, although the potential is wholly untapped. Much work has been

undertaken on tourism planning and development in the Province. The Eastern region dominates with

regards to tourism infrastructure and scenic beauty.

17

Anchor tourism nodes include:

Sun City/Pilanesberg complex;

Magaliesburg;

Hartbeespoort; and

Madikwe Big Five game reserve

Recommended new nodes have been identified to increase the provincial product base, tourism

capacity, and for spreading the benefits of tourism to new parts of the province, particularly to areas of

severe poverty. They include:

Borakalalo Game Reserve, which has substantial expansion potential;

Vredefort Dome, a unique landform caused by the largest meteorite impact site in the world,

near the Vaal River;

Vaalkop Dam, which is a new small tourism node and forms a link between the Sun

City/Pilanesberg and Borakalalo nodes, thereby stimulating the development of the new

corridor;

Ganyesa /Kalahari- this is a remote region of the Bokone Bophirima Province and has the

potential of becoming a major wilderness destination equalling the world -renowned

experiences of the Kalahari Gemsbok Park and Etosha.

The establishment of the Madikwe Game Reserve serves as an excellent example of what can

be achieved when government, private sector and the community work together. Madikwe

already attracts affluent markets with high yields. Plans to increase local participation are also

underway.

Whatever your preference, there is bound to be a tourism investment opportunity to explore. The

North West is outdoors country, with a glorious climate and challenging adventure venues. Enjoy

a wrap-around panorama and the magic of lazily drifting with the wind. Relish fascinating and

magnificent sights over the beautiful Magalies River Valley, Hartbeespoort Dam, Magaliesberg

Mountain Range, and Pilanesberg National Park.

3.3.4 Manufacturing

In partnership with the North West University, the North West Provincial government developed an

Integrated Manufacturing Strategy which determined geographic and economic areas, within the

industrial/manufacturing sphere, in the North West with the greatest potential for development, re-

development and economic growth.

The strategy is a two-pronged approach and focuses on:

18

“Outwards” focused industrialisation more strongly linked with exports and export strategy based on

agriculture and mining and related manufacturing activities; and

“Inwards” focused industrialisation more strongly linked with primary agricultural processing/

manufacturing activities.

A further key policy challenge for the North West is to use its mineral revenues to revitalise and

modernise manufacturing and to diversify the economy more generally to allow it to reach a more

stable growth path.

The North West Province is currently implementing a Special Economic Zone (SEZ) in Mogwase in the

Moses Kotane Local Municipality. The SEZ is central to the province’s drive to turn the economy

around from primary to secondary production through industrialization. The following sectors are

targeted in the SEZ: Mining beneficiation and Mining Capital Equipmnet manufacturing and Supply –

this sectors will enable the province to utilize the current benefits from our well established mining

sector to build and grow our provincial concretes i.e. Agriculture, Culture and Tourism; Agro-

processing and Renewable Energy. As such the province is looking for both local and international

investments in the SEZ focus sectors; and is able to grant generous incentives to investors.

Research indicates that the province offers excellent opportunities and prospects in various

manufacturing industries. This view was achieved through the identification of prioritised key focus

clusters. The fabricated metal and food industries as well as chemical processing, especially for value-

added exports such as phosphate and nitrogen based fertilizers, offers excellent opportunities. This is

due to the province’s:

strategic location (proximity to the industrial hub of Gauteng and Botswana);

natural resource endowment;

easy market access (established trade routes); and

relatively low production costs.

Attractive forward and backward horizontal integration opportunities exist in almost all of the

manufacturing sub-sectors within the province.

3.3.5 Green Economy

The Green Economy creates various new opportunities. Renewable energy is a very important

component and provides exciting opportunities

19

Renewable Energy

The growing awareness that climate change directly impacts on human health, sea levels, global

weather patterns and ecosystems and hence the future of all life on earth, has stimulated South Africa

to adopt various renewable energy (RE) options.

Solar technologies hold the greatest potential for the province since there is a favourable solar

insulation and suitable area to install solar energy technologies.

If you are interested in investing in the North West Province the North West Development Corporation

can assist you with the following;

Providing information on financing options and investment incentives

Providing advice on feasibility studies and business plans

Assisting investors to obtain work and business permits

Providing assistance in obtaining suitable factory space

Assisting existing firms to expand and re-invest

Assisting companies to find export markets for their products

Advisory services to improve company growth and performance

Competitiveness improvement support

Advice on productivity and process improvement

Facilitating joint venture and equity partnerships