1. SOUTH AFRICA OPEN FOR BUSINESS BUSINESS OPPORTUNITIES Tumelo Nkoane 11 July 2007 emita

2. PRESENTATION OUTLINE  Macro-economic Trends  Gateway to Africa  Sectoral Opportunities

3.  South Africa has a stable macro economic environment, a strong fiscal position and a range of growing sectors – from this platform SA is gearing for accelerated growth  SA is a springboard for companies wanting to do business in Africa Key Messages

4. -2.0 0 2.0 4.0 6.0 8.0 1998 Q1Q2Q3Q4 1999 Q1Q2Q3Q4 2000 Q1Q2Q3Q4 2001 Q1Q2Q3Q4 2002 Q1Q2Q3Q4 2003 Q1Q2Q3Q4 2004 Q1Q2Q3Q4 2005 Q1Q2Q3Q4 2006 Q1Q2Q3 % change on year earlier% change on previous quarter, annualised Real growth in Gross Domestic Product (GDP) Growth has averaged 4% per annum in the past four years and is projected to increase to 5% for the coming four years. South Africa has experienced 85 months of continuous growth. Economic Growth Macro-economic Trends

9. Economic Structure South Africa’s economy has diversified away from primary commodities Source: SARB Contribution to National GDP 1946195619661976198619962006 0 10 20 30 40 50 60 70 December % share Primary sector (Agriculture and Mining) Secondary sector (incl Manufacturing) Tertiary sector

10. Focus Areas of the Strategy  Increased macro-economic stability  Increased investment in economic infrastructure  Sector investment strategies  Development of skilled labour  Strengthening the 2 nd economy  Improvement in state organisation and capacity Gearing for Growth Macro-economic Trends

11.  6% of Africa’s Population  18% of Africa’s GDP  45% of Africa’s mineral production  50% of Africa’s purchasing power  Dynamic force in SADC  Driving force in NEPAD  Extensive road & rail infrastructure which connects with Sub-Saharan Africa  Telecoms infrastructure with world-class connectivity and uptime The Gateway into Africa

12. STRATEGIC GEOGRAPHIC POSITION TO GLOBAL SHIPPING ROUTES OUR LOCATION

13. Business Processing and Outsourcing & IT Enabled Services  Call Centres  Back Office Processing  Shared Corporate Services  Enterprise solutions in e.g. fleet management, knowledge management & asset management Value Proposition  SA offers high quality, low cost destination for BPO in stable investment environment supported by world class infrastructure  Cultural and product affinity with the UK and Europe  Public sector commitment made long-term commitment to this sector, so strong investor support & sustainable reduction in costs over the next few years Business Opportunities

14. Tourism  Hotels & self-catering holiday resorts  Adventure, eco-, sport-, conference & cultural tourism  Infrastructure development  Leisure complexes & world class golf courses  Harbour & waterfront developments  Transfrontier conservation Competitive Advantage  SA’s fastest growing industry  2010 Football World Cup

15. Business Opportunities Agro-processing

16. Business Opportunities Automotives & components  Vehicle interiors e.g. natural fibre interior  Engine parts/components  Electronic drive chain components  Body parts e.g. lights, painted plastic components, airbags, glass wire products,  Aluminium components  Wheels (steel & aluminium)  Catalytic converters  Plastic tool & die manufacturing Competitive Advantages  Access to aluminium & steel  Removal of tariffs into EU  Competitive tooling costs

17. Business Opportunities Chemical & allied Industries Competitive Advantage  Abundant mineral feedstock for inorganic chemical manufacturing  Abundance of agricultural raw materials (sugar, molasses, essential oils – lavender; khakhi-bush; lemon grass)

18. Business Opportunities Clothing, textile & footwear  Large-scale manufacturing of industrial textiles using polyester  Wool & mohair production – downstream opportunities for yarns, knitwear & fabric  Manufacturing of leather uppers Competitive Advantage  World’s largest producer of mohair  Raw materials to produce any type of leather footwear – bovine; ostrich; crocodile; game leather

19. Business Opportunities Electro-technical industries  Manufacturing automotive electronics  Manufacture PC boards for automotive sector  Upgrading existing microchip manufacturing  Upgrading existing telecoms equipment  Power line communications (PLC)  Niche software engineering  Opportunities in defence related electronics  Expansion in pre-payment metering technologies  Partnering for infrastructure (utilities) related projects in Africa Competitive Edge  Leading the world in prepayment technology and standards  Piloting new innovations

20. Business Opportunities Mining & metal-based industries  Downstream processing & value adding of iron, carbon steel, aluminium & platinum group metals  Aluminium smelting  Casting & forgings  Ferro-alloys  Stainless steel production e.g. stainless steel wire  Manganese metal production & castings  Gold chain manufacturing & handmade jewellery Comparative Advantage  Large aluminium & steel resources  World’s largest deposits of platinum group metals

21. Business Opportunities Aerospace  Aviation related services, including maintenance, repair and overhaul  Rotary and fixed wing components  Aviation training services  Specialised manufacturing of avionics, including health usage monitoring systems  Satellite related services (including tracking and control and applications development) Rail  Production of infrastructure (tracks, signalling, electrification)  Manufacturing of rolling stock & components  Manufacturing of mining rail equipment  Maintenance (infrastructure & rolling stock) R&D Marine  Manufacturing & assembly of engines & gearbox  Manufacturing of mechanical components  R&D

22. Business Opportunities Capital Equipment Competitive Advantage  Access to steel, aluminium  Competitive costs  Engineering technology

23. Business Opportunities Film  Film studio production  Co-production ventures  Distribution infrastructure  Servicing foreign productions Comparative Advantages  Co-production treaty with UK  Film rebate scheme

24. Conclusion  South Africa offers compelling business opportunities, with stable macro-economic environment, strong fiscal position and a clear growth strategy based on building on comparative advantages and removing constraints

25. THANK YOU

26. CONTACT US SOUTH AFRICAN HIGH COMMISSION TRAFALGAR SQUARE WC2N 5DP LONDON PH.020 7451 7237 FAX. 020 7839 0634 EMAIL. london@thedti.gov.za