INVESTMENT

SECTORS

 

INFRASTRUCTURE

OVERVIEW

Key driver of South Africa's growth prospects, with rail and water infrastructure focal areas.

 

Main social infrastructure needs include revitalization of public hospitals and other health facilities, national school build program, and higher education infrastructure

TRENDS

Although national investment in infrastructure amounts to about R300 billion a year, significant infrastructure investment remains in:(1) freight logistics (to move minerals more quickly),

(2) rail (the commuter story), and 

(3) water (which is exacerbated by the drought).

INVESTMENT THEME
  • Economic infrastructures like rail, roads and airport

  • Energy infrastructure

  • Social Infrastructure

 

RENEWABLE ENERGY

OVERVIEW

Growth projection 400%+ by 2030

New sector developing from energy demand & climate change

TRENDS

Renewal energy substitution of coal-generated power

INVESTMENT THEME
  • Residential solar

  • Industrial solar 

  • Agri-solar farms

 

AGRICULTURE

OVERVIEW
  • A R273bil mainly primary industry dominated by big commercial farmers.

  • Core sectors: Horticulture (28% mainly export driver

  • Grain (22%) – impacted by drought, increasing feed input costs

  • Agri-protein main section @ R143Bil – affected by drought

  • Cannabis is widely produced in Lesotho, being the nation's most significant cash crop (informally)

TRENDS
  • Transfer of land ownership

  • Emerging black farmers

  • Growth of high margin HEALTHY fruit & veg: berries & Avocado farming

  • New sub-industry to emerge

  • Use of technology to better use of water, fertilizer and input

INVESTMENT THEME
  • High margin horticulture emerging

  • New Agri sub-sector emerging: medical cannabis export industry.

  • Technology service companies emerging (e.g. tech operated irrigation & fertilizer syst)

  • Hydroponic farming

  • Vertical farming

  • Urban farms

MANUFACTURING

OVERVIEW

Key economic contributor (14% of SA’s GDP) with high impact on job creation with a 1 job to 10 jobs impact in the value chain. NDP and DTI’s industrialization & localization strategy opens an opportunity for investment in the sector.

 
TRENDS

Revival of key sub-sectors whose value chains have been exported to Asia.

 

Post Covid-19 value chains of essential goods are disrupted and urgently need to be revived.

INVESTMENT THEME
  • Medical essentials manufacturing

  • Government stimulus grants to stimulate key manufacturing.

  • Mid-sides manufacturing companies with flexible skills, capability and capacity to capture manufacturing opportunities.

 

TRANSPORT & LOGISTICS

OVERVIEW

8% of SA’s economy mainly to transport goods across vast distances.

 

Growth of courier & new forms of delivery companies to support online retail.

TRENDS
  • Fuel efficiency.

  • Local supply chain for auto assembly.

  • Development of dealer networks.

  • Uberization of courier and JIT delivery formats.

INVESTMENT THEME
  • Franchise Service Centres.

  • Freight & Distribution companies. 

  • New distribution format for online.

 

TOURISM

OVERVIEW
  • Industry @ R136bil in size.

  • 2,9% of GDP employing +/-1million people.

  • Earmarked to be SA’s growth engine.

  • Hotels average 61% occupancy in 2018.

  • Visa restrictions affecting leisure travel.

TRENDS
  • Technology: Air BnB, 

  • Urban/ youth/ Cultural Tourism

  • Eco-tourism,

  • Transformation drive

  • The goal is to double tourist to 21 mil by 2030 to R200bil+ 

INVESTMENT THEME
  • Self-catering tourism accommodation.

  • Eco-tourism.

  • Youth Tourism.

  • New industry entrance.

  • Ownership and job-creating ventures.

WeWork

173 Oxford Road 

Rosebank

Johannesburg 2196

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