The Home of Engineered

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 • 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

Main Sectors

• Business Process Outsourcing & Offshoring

(BPO & O) & Information Communication

Technology (ICT)

• Renewable Energy

Underexploited

Swordfish

Round herring

Seaweeds

Overexploited, threatened, endangered or collapsed

Deep-water hake

Southern bluefin tuna

Linefish (not individually

listed)

Netfish

Optimally Exploited

Shallow-water

hake

Anchovy

Sardine

Albacore

Status uncertain

Agulhas sole

Cape horse

mackerel

Patagonian

toothfish

Sharks

State of Marine Living Resources

Netfish

Abalone

West Coast rock lobster

Oysters (South Coast)

Albacore

Yellowfin tuna

Bigeye tuna

Squid

South Coast rock

lobster

Prawns

Oysters (KZN)

Kelps

Sharks

Some linefish

White mussel

Other invertebrates

South Africa

Geographic Distribution of Mariculture in SA

Key

Finfish Farm Oyster Farm Abalone Farm Mussel Farm

South Africa

Eastern Cape

Western Cape

Northern Cape

KwaZulu-Natal

Operational Farms

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)

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

•

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

Cape

Eastern

Cape

Northern

Cape

KwaZulu

Natal Total

Abalone 812.56 101.02 0* 0 913.58

Finfish 0 20.52 0 2.23 22.75Finfish 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

Kob

52.5

5%

Mussels

25

2%

Prawns

0.65

0%

Oysters

33.8

3%

Sub-sector Value of Mariculture production

2008-2010 (ZAR’millions)

Abalone

964

90%

� 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

Highlight of Government Interventions

� 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).

� 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

Highlight of Government Interventions

� 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

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 ornamentationfor 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� 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 • 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 �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) Ltd

�Breeding 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 Increasing sector skills

• Firming up investment pipeline for

predictability.

Future Plans to Improve Value Offering

Seawater Quality Monitoring Program

• Fulfill 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 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 generationelectricity generation

• Cost benefit analysis - a dedicated offshore effluent

outfall vs existing municipal facility

All you need for marine aquaculture business in one

zonezone

Contact Ntobeko Bacela: Sector Manager –Aquaculture

ntobeko@elidz.co.za

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

www. elidz.co.za