During Nelson Mandela's five-year term

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1 A SPECIAL ADVERTISING SUPPLEMENT TO THE NEW YORK TIMES MAGAZINE The true South Africa is a united nation of nine provinces offering vast diversity in both its tourism destinations and investment opportunities.five years of decentralized government has seen each province focused on developing locally and nationally, bringing economic and social benefits for all. SouthAfrica TRANSFORMING THE ECONOMY AND GLOBAL MISCONCEPTIONS A shared vision for growth places political power in the hands of local communities. During Nelson Mandela's five-year term as President of South Africa from 1994 to 1999, the country faced the scars of its past and began a successful healing process that focused on forging a single national identity. When President Thabo Mbeki came to power in 1999, he extended this further to include the economic realm and shifted the country s focus from reconciliation to transformation. Realizing that full recovery was dependent upon bringing economic power to the country s black majority after decades of marginalization, he promised to reduce poverty and stimulate economic growth through greater government involvement in the economy. At the time of South Africa s first nonracial elections in 1994, only 50 percent of the country had access to electricity, and access to clean drinking water and proper sanitation were problems for many areas. Parts of the country were historically neglected, especially in the rural areas and the former black areas in the urban centers, comments Fholisani Sydney Mufamadi, Minister of the Department of Provincial and Local Government (DPLG). As a result there are sizeable infrastructure backlogs in these areas. Now we have a plan to increase the pace at which that backlog is redressed. Employing what Mr. Mufamadi terms a shared vision for accelerating growth, the SYDNEY MUFAMADI Minister of Provincial & Local Government authorities have drawn up a comprehensive plan for strong government presence throughout the nine provinces and 284 municipalities. The plan aims to boost basic infrastructure services, including universal access to clean water and proper sanitation by 2010 and to electricity by In addition to providing opportunities for private sector involvement and creating jobs, this system also places political power in the hands of local communities that have long been denied direct involvement in the democratic process. Our system of local government is new. We introduced it in December of 2000 so it is only five years old, explains Mr. Mufamadi. He says that it took some time to put the administrative systems in place to ensure that people who were historically alienated from government processes were able to participate for the first time in municipal government. His department s strategy is Continued on page 2 NORTHERN CAPE Page 2 KWAZULU-NATAL Page 4 GAUTENG Page 8 NORTH WEST Page 9 OTHER REGIONS Page 10 This supplement has been produced and sponsored by Summit Communications. It did not involve the reporting or editing staff of The New York Times.

2 South Africa / 2 NORTHERN CAPE LETTING THE Surrounding the world s diamond capital is a goldmine of untapped potential in mining, manufacturing and tourism with adventure sports and magnificent wildlife safaris President Thabo Mvuyelwa Mbeki has brought national pride and international praise. Continued from page 1 focused on capacity building and includes programs such as Project Consolidate, a two-year support program for local governments. We need to make sure that municipalities develop the necessary capacity to implement huge budgets, to draw up local economic development plans and to manage programs. Through strengthening South Africa s diverse regions, the government is hoping to reduce rural poverty and to counter the urban drain that has resulted in six cities producing nearly 45% of the country s economic product. Through its Municipal Infrastructure Grant, DPLG will oversee $2.5 billion in infrastructure development funds throughout the next few years that is intended not only for social infrastructure but also economic development. Minister of Environmental Affairs and Tourism Marthinus van Schalkwyk speaks about new developments in the tourism sector that will see the country through to its 2010 hosting of the soccer World Cup and beyond. How important is South Africa s tourism sector to the overall economy? Tourism is the fastest growing sector of our A COMPREHENSIVE INFRASTRUCTURE PLAN AIMS TO BOOST BASIC SERVICES AND CREATE PPPS economy. It already contributes just over 7 percent of the GDP and we really haven t started to scratch the surface yet. Since 1994, growth has really been forthcoming. A few years ago, the magical number was seven million tourists and everybody was The is the first year that we have been operating with the grant. The idea is that when we invest in infrastructure it is firstly to address poverty, but it is also to foster economic growth, says Lindiwe Msengana- Ndlela, DPLG s Director General. As we cannot provide all the resources to fund economic development, we will be looking for opportunities to create public-private partnerships. This regional focus also forms part of South Africa s preparations for its hosting of the 2010 soccer World Cup. Infrastructure development for the games will be spread throughout the country, according to Mr. Mufamadi, who adds, Our intention is to give people around the country as much opportunity as possible to benefit from this event. There will be about 64 games so that is enough to be shared by all the provinces. ENVIRONMENTAL AFFAIRS AND TOURISM asking if we would ever be able to achieve that number. Well, we are going to achieve it this year, and our target for 2010 is ten million visitors per year. The sector has also taken the initiative with the Tourism Black Economic Empowerment Charter, which aims to ensure that tourism benefits all South African communities. Protea Hotels, the largest hotel group in Africa, is now 53 percent black-owned. What other effects will this have? We have just agreed on the charter in the industry and I believe we have clearly demonstrated that it isn t a government program that has been forced on people. It is something that everybody from the small businesses to the large hotel and tourism Constituting nearly one third of South Africa s entire landmass, Northern Cape is the country s largest province and home to Kimberly, the world s diamond capital. Situated in the southwest corner of South Africa, bordering Namibia, Botswana and the Atlantic Ocean, Northern Cape is a kaleidoscope of landscapes from flowering deserts, clay red sands and lush green vineyards to rushing rivers and rocky coastlines. Known as the place where you can travel the desert while unexpectedly hearing the call of the sea, Northern Cape is still one of South Africa s best-kept secrets and a goldmine of untapped tourism potential. Unleashing that potential forms part of the provincial government s growth and development strategy, which aims to boost annual economic growth to 6 percent and to halve unemployment rates by Six key sectors have been targeted for new growth: tourism, mining and mineral processing, agriculture and agro-processing, manufacturing, fishing, and transport. While Northern Cape s abundant natural resources have long been under production, the government now wants TOURISM IS THE FASTEST GROWING SECTOR OF OUR ECONOMY MARTHINUS VAN SCHALKWYK Minister of Environmental Affairs and Tourism groups agrees on and is very enthusiastic about. We have been very careful to not make ownership the only requirement, but also skills development, social investments and so on. The charter will definitely expand the industry and add to its growth. South Africa will host the 2010 soccer World Cup, the world s most widely watched sporting event. What preparations are being made? A large part of our marketing is already focused on the 2006 German World Cup, which we will use as a launching pad for our World Cup. People who watch that on television will know that next time around the event will be held in South Africa. When people come here in 2010 they will be coming to watch soccer matches, but they will also do so to have an African experience. People will be thinking about to expand added value operations to create greater job growth and wealth within the province. We are refocusing our strategy and saying that rather than exporting our jobs and our wealth elsewhere, we should begin to look at adding value to our commodities locally, says Ouneas Pakes Dikgetsi, Member of the our national parks and wildlife, as well as the diversity of South Africa as a nation and our cultural tourism, so all of that will be part of the package. We want to make sure that 2010 is not a once off. If we spend money to develop markets, such as the Spanish-speaking soccer countries, we want them to be sustainable markets and for people to say they are going to come back again. One of the programs we are integrating into our plan in the build-up to 2010 is to develop the provinces that are least visited tourism-wise. For example, Northern Cape is a fantastic destination for adventure tourism, so we will be developing regions like that. Also, we are fast-tracking a program for a single visa so that visitors can literally experience three or four countries in a day through the national parks. We plan to have this in place on an experimental basis by 2008.

3 WORLD SHARE THE SECRET 3 Executive Council (MEC) in the Northern Cape Ministry of Finance and Economic Affairs. New legislature has been passed to compel large mining companies in the province to carry out at least some of their downstream processes locally, according to Mr. Dikgetsi, who adds, In this sense, diversification of the Northern Cape economy is not only focused on the primary product, but also on ensuring that there is some downstream beneficiation. This will create jobs and bring progress to the people who live next to these resources. Northern Cape is home to 80 percent of the world s manganese reserves, 40 percent of the world s iron ore reserves and produces over 70 percent of South Africa s diamonds. Mr. Dikgetsi says that beneficiation will be carried out not only in the province s diamond industry, but will also apply to its semi-precious reserves. A facility for cutting and polishing has already been established, and the government hopes to later expand into jewelry setting. Talks are also underway for the construction of an iron ore and manganese smelter. Collaboration with the private sector is going well. A local business support center has been established to help fledgling businesses capture some of the procurement of large international companies in the province. Also, public private partnerships OUNEAS PAKES DIKGETSI MEC for Finance and Economic Affairs in Northern Cape Six key sectors of the economy have been highlighted for new growth: tourism, mining, agriculture, fishing, manufacturing and transport. have been established in the printing sector and fishing resources. In agriculture, the province is increasing its wine exports as well as its exports of rooibos tea, which is now served on Malaysia Airlines. Northern Cape is also a major producer of premium quality meat, and the government is working to increase exports to the U.S. We are seeking to diversify in agro processing to make sure that we are not just exporting grains and maize. We really want to add value in this industry as well, and we are working with local cooperatives to develop the sector, comments Mr. Dikgetsi. Finally, the province has adopted a new tourism master plan that envisions Northern Cape as the preferred adventure and ecotourism destination in South Africa, recognized for its cultural heritage and special interest tourism offering. With its wide-open spaces and six national parks, Northern Cape offers plentiful opportunities for hikers, 4x4 enthusiasts, river-rafters, canoeists and abseilers to explore unspoiled desert and dunes, rivers and sea, while observing wildlife in its natural habitat and rock carvings that date back more than 10,000 years. The Northern Cape Ministry of Finance and Economic Affairs strives to provide sound, transparent and modern public financial management and optimal, effective and efficient use of all provincial resources. By developing and providing a fair and inclusive procurement system in the province, the ministry seeks to implement and administer an operative, economic and professional service by formulating financial policies consistent with government objectives. As a region rich in investment opportunities, possibilities abound in both the manufacturing and mining sectors, with a special focus on diamond resources. cape.gov.za Fax:

4 South Africa / 4 KWAZULU-NATAL MAJESTIC ZULU KINGDOM HAS PLANS FOR MASSIVE EXPANSION One of the country s most beautiful regions is attracting foreign investment with a thriving manufacturing industry and advanced transport and communications infrastructure One of South Africa s most vibrant provinces with a people that most personify the nation s fighting spirit is also the province that has taken the longest to adapt to the country s new circumstances. KwaZulu-Natal (KZN), home of the Zulu warriors and the center of much of the resistance to the apartheid regime, is truly one of South Africa s most interesting, beautiful and promising regions. This province was at the forefront of the liberation and it is almost like a unique community tradition. The first of the anti-colonial wars was fought here in The people who originated this view, like Dr. Dube (the first African National Congress president), were from this province. With this history, it took longer to deal with the problems of political tolerance and the real culture of democracy because when all the other provinces were quiet, the conflict was still felt here. Now there is peace, and our political stability is our greatest asset, comments Dr. Zwelini Lawrence Mkhize, Minister of Finance and Economic Development in KwaZulu-Natal. This political stability is about to unleash major economic power in a province that is already the second largest contributor to the national gross domestic product. With a thriving manufacturing industry, KZN s advanced transport and communications infrastructure has attracted international companies like Toyota and Volvo. Today, KZN produces nearly a third of South Africa s manufactured exports, which include automotive parts, textiles, clothing, leatherwear, pulp and paper products, basic metals, chemicals, rubber and plastics. The province is also the leading destination for domestic tourism, and has a strong agricultural sector that produces sugarcane, bananas, pineapples, citrus fruits and avocado. Transport and logistics form another economic mainstay, with KZN s two ports handling 78 percent of South Africa s annual cargo tonnage. But that is just the beginning. The provincial government aims to transform KZN into an economic powerhouse and Africa s trade gateway. An array of projects, initiatives, and partnerships are underway to ensure this vision is realized. First and foremost on the agenda is expansion of the province s ports, trade and manufacturing capacities. In this day and age of the global economy, you couldn t ask for a better asset than our ports. Our strength is that we are now a gateway for trade links in and out of the country and this is what we intend to develop most, says Dr. Mkhize. Massive expansion plans are underway that include the construction of two multi-billion dollar industrial complexes complete with a new international airport near the Ports of Durban and Richards Bay. The Dube Trade Port ZWELINI LAWRENCE MKHIZE MEC for Finance and Economic Development in KZN in Durban will host the new King Shaka International Airport with freight terminals for time-sensitive export products, as well as a cyber village for cyber trade. In Richards Bay, which is the center of South Africa s aluminum industry as well as the main departure point for South Africa s coal exports, an industrial development zone is planned that is expected to convert the area into a leading national growth center through the downstream processing of KZN s considerable raw material resources. The development of small business will play a leading role in these industrial complexes. The government has a comprehensive range of support programs underway that include the creation of a microfinance banking institution and small enterprise development agencies. Furthermore, an industrial development strategy has identified six cluster sectors for priority that include ICT, crafts, furniture manufacture and agribusiness. All of these initiatives, in addition to the province s infrastructure projects, provide opportunities for international investors. Dr. Mkhize adds, KZN offers opportunities for investment in a diverse number of areas, but it also offers an opportunity for leisure. If you see the province once, you will fall in love with it forever, and if you haven t been yet, you are missing out. PORTS OF DURBAN AND RICHARDS BAY The South African province of KwaZulu-Natal boasts two of Africa s busiest ports, which are strategically situated on major shipping routes and serve as vital gateways to local and global markets. Combined the two ports handle 78 percent of South Africa s total cargo tonnage and provide important backward and forward linkages to southern Africa and the Indian Ocean rim. One of the busiest and best-equipped ports in the world, the Port of Durban, in the south of the province, is South Africa s main general cargo and leading container port. More than 80,000 containers pass through the port each month, which represents 65 percent of all revenue earned by the country s ports. Durban Port allows the entry of ships up to 300 meters in length and handles the greatest volume of sea-going traffic of any port in southern Africa. In 2004, Durban handled over 4,000 ships with 40 million tons of cargo, including oil and petroleum products. Additionally, the Durban Car Terminal is the country's largest import and export facility for the automotive industry. The Port of Richards Bay is one of the world s largest deepwater bulkexporting ports and handles about 1,000 containers per month. Built in 1976 for the export of coal, Richards Bay has since expanded into other bulk and break bulk cargos. Richards Bay is located approximately 100 miles northeast of Durban and 300 miles south of Maputo in Mozambique, and is the closest port to South Africa s economic heartland in the province of Gauteng. With a total area of 2157 hectares, Richards Bay is the largest port in South Africa in terms of land area, and as such has good potential for expansion. This is exactly what the provincial government has in mind, and large industrial development zones are being constructed near both Durban and Richards Bay with the aim of converting the area into a major continental gateway and industry hub.

5 The province of KwaZulu-Natal, the Zulu Kingdom, is a traveler s treasure trove. The place South Africans choose for their vacations, KwaZulu-Natal offers an unparalleled combination of scenic grandeur, absorbing cultural mix, and wealth of wildlife while still offering modern infrastructure and world-class accommodation. Stunning landscapes of verdant midlands in the center of the province, majestic mountains to the north and golden beaches to the south welcome the visitor and offer a myriad of opportunities for investors. This province has so much potential in tourism that we think that its growth will never stop, observes Dr. Zwelini Lawrence Mkhize, KwaZulu-Natal Minister of Finance and Economic Development. This is the Kingdom of the Zulu. We have the big five game hunting, world heritage sites, the beaches, mountains we can literally offer it all. If you like mountains, the highest is here. If you like the bush, ours is incomparable. If you want to go to the beach, the best ones are here. Gateway to this unique destination is the vibrant and cosmopolitan harbor city of Durban, with its mix of cultures, miles of palm fringed beaches, gourmet treats and pulsating nightlife. From there, visitors can experience the province s nature reserves or the Drakensberg Mountains with their spectacular views and waterfalls. Other attractions include the Elephant Coast, which features Africa s oldest game reserve and is credited with the survival of the white rhino. Not to mention the St. Lucia Wetlands TOURISM DISCOVERING THE AFRICAN CHOICE Investment in infrastructure, a new international airport and ultramodern conference facilities add to abundant natural splendor Park with its 140 square mile lake surrounded by mountainous dunes. The wild beauty and rich history of the Zululand Kingdom also awaits discovery in the emakhosini Valley, or Valley of the Kings. With such an abundance of assets, as well as a year-round calendar of sporting and cultural events, it s no wonder that KwaZulu- Natal is the leading destination in the country for domestic tourism. In a bid to up foreign arrivals, the government is drawing up a strategic international advertising campaign and is hoping that the construction of a new international airport in Durban will also contribute. While tourists must now fly into Cape Town or Johannesburg first, the new airport will offer direct international flights into KwaZulu-Natal. The new airport will definitely enhance the opportunity for this province to be one of the leading international tourist destinations within the South Africa context, says Narend Singh, Member of the Executive Council for Arts, Culture and Tourism. He adds that one of the strengths of the province s tourism industry is its convention and conference business, and is an area that the province s tourism authorities are working to develop further. The state-of-the-art International Convention Center in Durban has hosted a number of high profile international conferences such as the 13th World Congress on Aids and the World Conference against Racism held by the UN s Human Rights Commission. 5/ South Africa A MYRIAD OF OPPORTUNITIES FOR INVESTORS LIE IN A SECTOR OF GROWING MOMENTUM The participation of international investors in KwaZulu-Natal s tourism expansion is welcome, according to Mr. Singh, who says that the province is not only seeking American tourists but also American businessmen who are interested in developing new tourism products. There are excellent opportunities, he comments. We have nearly 400 miles of coastline that have not been fully exploited commercially. In St. Lucia, there are many opportunities and a great deal of interest has been generated there. People have come in and said they wanted to build 60 lodges or invest in beach resorts and we are always more than willing to talk to them, as well as provide concessions and tax incentives. The Kingdom of the Zulu offers a unique destination for visual and cultural experiences of a lifetime

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8 South Africa / 8 GAUTENG AT THE CORE OF THE NATION AND ECONOMY Manufacturing and industry continue to be the thriving strength behind the economy, powering moves to exploit ICT infrastructure and develop Gauteng as the smart province Gauteng, which means place of gold in Sotho, is home to the national capital, Pretoria, and one of South Africa s most historically important and vibrant cities, Johannesburg, where the world s largest gold rush took place in the late 1800s. Today, Gauteng is a highly industrialized province with world-class infrastructure and is the economic heartland of South Africa. Such is the province s economic importance that it generates 10 percent of the entire gross domestic product of Africa, as well as a third of South Africa s. Gauteng is also Africa s financial services capital with more than 70 foreign banks. Most of South Africa s financial and mining houses are also based there. The province has a highly developed manufacturing industry, and it boasts strong transport and communications infrastructure. Gauteng is the powerhouse of South Africa s economy so it s really an engine for growth, says Paul Mashatile, Member of the Executive Council Finance and Economic Affairs. All the major corporations are here and growth is PAUL MASHATILE MEC for Finance and Economic Affairs in Gauteng The right hand of the smart province, Gauteng Economic Development Agency (GEDA) is Gauteng province s investment arm. Since its inception in 1996, GEDA has facilitated some $400 million in inward investment. Here CEO Carl Niehaus talks about the changing international perception of South Africa and a renewed focus on job creation for GEDA. There has been a gap between South Africa s reality and its international image in recent years. How has this improved? Five years ago we were a stable democracy with strong macroeconomic policies in place but the international perception was skeptical. Now that gap higher than the national average. We have a very strong financial sector, a very strong manufacturing sector, and the services industries, including ICT, are also well developed. What makes Gauteng the gateway to everywhere is the strength of our infrastructure. While manufacturing and industry continue to dominate the province s economy, in recent years the government s focus has been on converting Gauteng into the smart province, with increased emphasis on high-tech sectors. Consequently, a new prominence has been placed on IT, telecoms, industrial R&D and biomedical sectors. This has created a shift in the province s direction from heavy industry to value added production, including business tourism, head office relocation and the call center industry. The government s Blue IQ initiative is responsible for the creation of Africa s first internationally accredited science and technology park, the Innovation Hub. It has established new platforms for local business growth such as the Tshwane s Automotive Hub, which supplies parts for the multinational automotive companies operating in the province, including Mercedes, BMW and Nissan. has narrowed and we have moved in a direction where people actually perceive us for the things we have accomplished. What are the priorities for GEDA at the moment? Our challenge is to translate these new investment opportunities into economic development and job creation while working to keep the investment coming in. Since 1996, we have been an investment promotion agency but not really an economic development agency, and there is still a huge gap here between the rich and the poor. So we need to look at how investment affects employment, what effect it will have on gross domestic product, and what skills transfer will be Regeneration and new build programs are breathing new life into Johannesburg to create a world-class city. Simultaneously, the government is investing heavily in training and education to provide the skilled workforce for these new sectors. Our economy has moved away from traditional industries to more value added manufacturing but the skills base has not moved in tandem so that s what we are doing now investing a lot in skills development and education so that we can continue to push growth and match the demand of the economy, notes Mr. Mashatile. The government has also realized the asset that it has in the city of Johannesburg and projects are underway to boost the city s image. Crime rates have been reduced dramatically in the last five years due to a combined sector policing and camera surveillance policy, and now the government is working to convert Joburg into a world-class African GAUTENG ECONOMIC DEVELOPMENT AGENCY WE HELP PARTNER SOUTH AFRICAN AND INTERNATIONAL BUSINESSES involved. It is a more comprehensive approach. You have had considerable success in establishing call centers in this province. How has this contributed to job creation? In South Africa, for every one job that you create, you are creating an opportunity for a minimum of ten other people because this is how opportunities impact on the quality of life. In the call center industry we have managed to create over a 100,000 jobs in the last four years. So if I start calculating what the economic development impact of that is CARL NIEHAUS CEO of GEDA metropolis. Mr. Mashatile comments, We have laid the foundations for changing the city, giving it new life, and adding more residential buildings. There s a lot of regeneration going on, and buildings have been upgraded by both the private sector and the government. The government is also giving a boost to surrounding areas by improving the tourism offer with a new game reserve located 25 miles outside the city, investing in the province s historical townships, such as Soweto, and upgrading public transport links. The new Gautrain, which is expected to be completed in 2009 and draw private sector investment of $600 million, will offer speedy service from Johannesburg International Airport to the center of the city, and from Joburg to Pretoria. and I make a conservative guess of a 100,000 jobs multiplied by ten, you can begin to understand what is so exciting about all of this. What role does small business play? It is our job to help mediumsized businesses form partnerships with mediumsized international businesses. We need to bring in large investors but we also need to create jobs, and the two are linked. If we don t create jobs, the investment climate becomes unstable so we need to work on those small and medium-sized partnerships as well.

9 North West Province (NWP) is one of South Africa s smaller provinces and is completely landlocked, sharing a large northern border with Botswana. It is however, one of the country s most important provinces in terms of mineral resources and has been tagged the platinum province as it generates 94 percent of the country s platinum production and boasts the world s two largest platinum mines. NWP is also conveniently located near the province of Gauteng, South Africa s thriving economic center, and its border with Botswana opens up a multitude of possibilities for intercontinental trade. Consequently, with its large number of development initiatives underway, NWP represents a very interesting option for international investors and a great deal of potential for future development. African countries are not trading amongst themselves. We believe that we must begin to engage and trade with neighboring countries and this is a vision that we want to realize. We see ourselves as an important gateway in the context of opening up trade within the Southern African Development Community, says Darky Africa, Member of the Executive Council North West. He points out the irony in the fact that neighboring Mozambique imports meat from Brazil while NWP has such a thriving cattle industry that it is referred to as the African Texas. NWP is the source for 25 percent of South Africa s gold and 46 percent of its granite, and has a significant diamond mining industry. Along with mining, agriculture and tourism are pillars of the provincial economy. The province is one the most important food baskets of South Africa. It produces a third of the country s maize, has a thriving tobacco industry, and is a significant producer of sunflower oil, groundnuts, citrus fruit, cotton and wheat. In the semi-arid central and western regions of the province, there is a large livestock industry. Manufacturing has also seen a rise in the province in recent years, and is a sector that the provincial government is betting on for future growth. Three of South Africa s planned spatial development initiatives (SDI) are set to pass through 9 NORTH WEST THE PLATINUM PROVINCE AND TEXAS OF AFRICA The world s two largest platinum mines, a prosperous cattle industry and great opportunities in tourism, agriculture and manufacturing are opening routes for African trade DARKY AFRICA MEC for Finance and Economic Affairs in NWP A number of initiatives are underway to open inter-african and international enterprise. North West and are expected to open up a number of new commercial opportunities. These industrial development corridors will crisscross along three strategic routes throughout the central and eastern regions of the country, meeting in North West and continuing into Namibia. A series of initiatives are planned along the routes that include tourism development, agro-processing clusters, ICT clusters, downstream mining processes, manufacturing, and bio-medical industries. The Western Frontier SDI will run through NWP s new industrial zone in the provincial capital of Mafikeng. In addition, the provincial government s growth and development strategy has targeted seven priority sectors for new investment: tourism, agriculture, mining, manufacturing, infrastructure, skills development and small and medium-sized enterprises. According to Mr. Africa, the region is expanding its tourism offer in a bid to raise visitor numbers to one million by next year. At the same time, it is increasing complementary industries to the mining sector, such as jewelry manufacture, boosting support for local businesses, and financing agro-processing technology. We are using our development strategy in an organized way to involve people in the economic development of our province and we see a role for investors in these areas, adds Mr. Africa. There are a number of developments going on here. We are now looking into the possibility of expanding roadways up to Botswana so within the context of our strategy we are also promoting trade. We have what it takes as a province, and we offer an environment for the global community to play a key part.

10 South Africa / 10 TOURISM IN NORTH WEST PROVINCE By 2020 the world will have 1.6 billion tourists originating mainly from China, India, the U.S. and Russia, according to the World Tourism Organization (WTO). Charles Ndabeni, CEO of North West Province Parks and Tourism Authority, says that Africa, South Africa and North West Province are determined to get their share of these visitors. The global tourism industry today spends some $3 trillion annually. Of 800 million tourists, France alone receives 81 million while Africa is only harvesting 2 percent of this market, notes Mr. Ndabeni, adding that three quarters of South Africa s current tourism revenue is generated by Africans themselves. This is all set to change. An ambitious drive to generate a larger share of the world market is necessary to meet the South African governments target of ten million visitors by 2010, says Mr. Ndabeni. It requires a new approach in the way we market South Africa. We must focus on the domestic market and look to the continent. We must also, however, seriously identify with this growth projection of the WTO and look at China, Russia, India and the U.S. Since 1994, the province s tourism authorities have doubled their share of domestic tourism and upped annual tourism revenues by $150 million while creating an additional 35,000 jobs. This sort of dynamism is guaranteed to secure the province s continued future success. We are on a growth path and part of that is driven by our creativity and innovation in marketing ourselves as a destination, comments Mr. Ndabeni. Rebranding itself as South Africa s Heritage Province, North West Province has taken advantage of its considerable tourism assets to present an appealing package for visitors. The province is home to three World Heritage Sites and 14 parks. Among them is the Pilanesburg National Park, which is situated in an extinct volcano. It also boasts Madikwe Game Reserve, where visitors can see the Big Five and which the province plans to position as the premier eco-tourism destination in the southern hemisphere. This heritage is political, cultural, historical and natural. This is what we are packaging towards the tourists because globally there is an emerging phenomenon of tourists wanting to live experiences. And when you give them an CHARLES NDABENI CEO of North West Province Parks & Tourism Authority North West is South Africa s Heritage Province, offering visitors magnificent natural beauty, heritage and life experiences. experience they can take back home, they will come back, says Mr. Ndabeni. While North West Province offers visitors magnificent scenic beauty, abundant wildlife and rich archeological sites, it also features high-end accommodation, glittering casinos and manicured golf courses. The province s Lost City and Sun City leisure resorts are a touch of luxury in the middle of its unique natural wonders, offering a blend of the best of 20th century living with the mystique of ancient Africa. We are creating responsible tourism, adds Mr. Ndabeni. Tourism that is not just economically driven but that is qualitative, with the market feeling that this is a refreshing destination. It rejuvenates you, it s very tranquil and it s authentic. Priorities for the province s tourism authorities now, according to Mr. Ndabeni, involve upgrading infrastructure, including the province s two airports, roadways and rail. They also include broadening its accommodation offerings and encouraging a tourism mentality within the province. It is aiming to strengthen the position of North West within the African market and the larger world markets. As part of this, North West will launch a new campaign in the U.S. this year for its Jazz Africa Heritage initiative, which includes a ten-day concert festival in the province in OTHER REGIONS ENGAGED IN KEY South Africa is a rainbow nation where two great oceans, nine provinces, breathtaking natural geodiversity and over 46 million people of different origins, cultures, languages and beliefs all come together. Each province LIMPOPO A PEACEFUL GARDEN OF ABUNDENCE Limpopo, South Africa s northernmost province, prides itself on possessing some of the country s greatest agricultural, mineral and tourism resources. Renowned as the province of peace, Limpopo s Highveld region is home to the Waterberg, Zaoutpansberg and Magoebaskloof mountain Mpumalanga is situated on the northeast border of South Africa, flanked by both Swaziland and Mozambique. It is home to the stunning Panorama tourist route that includes the uncommonly green and lush Blyde River Canyon, the world s third largest. It also features Bourke s Luck Potholes, natural dark pools framed by smooth yellow and red rocks. The Three ranges. Its Lowveld territory includes the northern reaches of the famous Kruger National Park. Distant mountains frame endless landscapes while trees and thorny terrain are home to a mind-boggling array of wildlife. In agriculture, Limpopo is truly the garden of South Africa with its abundant crops of mangos, papaya, tea, citrus fruits, bananas, avocados, tomatoes and potatoes. A large reserve of minerals has also positioned mining as an important segment of the economy, representing 22 percent of MPUMALANGA WHERE THE SUN RISES ON A LAND OF OPPORTUNITY South Africa s geographical heart is also the home of much of the country s rich history. Situated on the boundless plains between the great Orange and Vaal Rivers, the province of Free State was the capital of the Boer Republic until the Union of South Africa was declared in Consequently, the provincial capital of Bloemfontein boasts a number of museums dedicated to the province s history and to the Anglo- Rondavels are another must see three spirals of dolomite rock that rise majestically out of the canyon. In addition to tourism, Mpumalanga has more than 40 percent of the forestry plantations in South Africa and a large pulp and paper industry. The government hopes to expand the sector through the creation of new industries for wood-derived products, such as furniture Boer War. The Golden Gate Highlands Park in the rolling foothills of the Maluti Mountains is another of the province s attractions. Its name derives from the brilliant shades of gold cast by the sun on its sandstone cliffs, an image that reflects the province s mineral wealth. The Lejweleputswa region of the province was formerly known as Goldfields and was the setting for Free State s gold discovery in 1938 when a hole bore for water on a farm struck lava Limpopo is a treasure chest of natural resources. the provincial GDP. Limpopo is linked to the Maputo Development Corridor. Its road and rail network connect to the country s major seaports, opening the province up to increased The Lydenburg Heads are the earliest African sculptures. manufacturing. It also produces 76 percent of South Africa s coal. FREE STATE THE NATION S GOLDEN BREAD BASKET KRUGER The province feeds over 70% of the national grain demand. containing gold ore. The subsequent influx of prospectors began the gold rush. Today the region is an important gold mining and agricultural center. SOUTH AFRICAN TOURISM

11 11 ROLES FOR EQUITABLE PROSPERITY offers a multitude of opportunities to invest in the future of a determined, optimistic and energetic country focused on generating new wealth and ensuring a fair distribution of economic and social benefits. EASTERN CAPE A SPECTACULAR BASE TO DO BUSINESS Faced by high unemployment and endemic poverty, Eastern Cape, one of South Africa s most hauntingly beautiful provinces, is looking to significantly boost its foreign direct investment levels in an attempt to improve the quality of life for its largely rural population. The Department of Economic Affairs, Environment and Tourism strives for an Eastern Cape that is devoid of the inequalities of the past, and unified through integrated and sustainable Perched on the southwestern tip of Africa, Western Cape is home to South Africa s legendary Cape Town and is the country s trendy province. With a strong and welldeveloped economy and infrastructure, Western Cape presents a wealth of opportunities for investors and is one of the world s most impressive tourist destinations. South Africa is a goldmine where tourism is concerned, and it s a justified goldmine because the attractions are here, there is already good infrastructure. Now it s about attracting new investment, and the government is committed to creating an investor-friendly environment, says CEO of Cape Town Routes Unlimited Noki Dube. There are certainly huge opportunities for investment across this province, Scenic diversity is one of the region s most striking features. economic, social and cultural development, states André de Wet, Member of the Executive Council Eastern Cape. The government is working to improve infrastructure and has created two industrial development zones to boost industry and job creation in its two major port cities, Buffalo City (formerly Port Elizabeth) and Nelson Mandela City (formerly East London). Equidistant between Cape Town, Johannesburg and Durban, Eastern Cape offers lower costs than Gauteng in respect to wages, taxes and factory rentals. It is a base for many international companies, such as Volkswagen, GM, Daimler Chrysler, Nestle, Goodyear and Duracell. WESTERN CAPE WORLD-CLASS COSMOPOLITAN CHIC Sophisticated Cape Town is a legendary year-round destination. especially in Cape Town which is the major hook and key gateway for tourists. With its mild Mediterranean climate, Western Cape is looking to establish itself as a yearround destination for both leisure and business tourists. A renowned wine district and the dynamic cosmopolitan pull of Africa s best city, Cape Town, make Western Cape a world-class destination and an excellent business location. OUR TEAM IN SOUTH AFRICA Project Management: Justin Bonnett, Mary Blackwell, Alexis Barnes and Fabrice Ducarme For further information contact: SUMMIT COMMUNICATIONS 1040 First Avenue, Suite 395, New York, NY Tel: 1 (212) ,Fax: 1 (212) , info@summitreports.com An online version is available at SOUTH AFRICAN TOURISM SOUTH AFRICAN TOURISM

12 ...gateway to Africa Gauteng means Place of Gold, in Sesotho, one of South Africa's 11 languages. It is the smallest (18,810 square kilometers), wealthiest and most populous (per square kilometer) province in South Africa. Gauteng generates 10% of the gross domestic product for the African continent, and a third of South Africa s GDP. It is the leading business province and the financial services capital of Africa. Gauteng is the business heart of Southern Africa. Sleek highways link its lively cities and towns, tall buildings pierce the sky, boasting highly developed infrastructure, state-of-the-art equipment and modern facilities. It is a place of business the 21st century way with every high tech tool that information and communication technology has to offer. A modern shopping mecca where global brands co-exist with local craft and produce. Gauteng - a place of paradox and contrast, of vivid combinations that are impossible elsewhere, a fusion of language, culture and experience that beats with an energetic pulse. Gauteng - your investment and tourism destination. Gauteng breathing possibilities Gauteng Department of Finance and Economic Affairs Tel: , Fax : ,