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1. Investment Opportunities in South Africa April 14th/15th 2011
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2. Presentation Overview
 The South Africa’s Economy
 The Western Cape’s Economy
 Questions and Answers
2

3. Location of the Western Cape
6 District Municipalities
9 Provinces
1 Country
3

4. South Africa by Numbers
Item Source Number
Population Stats SA – Mid-2009 Estimate 49.3 Million
Literacy Rate (ages 15+) Human Development Report 2009 88%
Unemployment Statistics SA – 2nd Quarter 2010 25.3%
Inequality (Gini Index) Human Development report 2009 0.67
Inflation (CPI) Statistics SA – July 2010 3.7%
4

5. South African Competitiveness
Item Rank
Emerging Market ranking for global investors (2008:8th) 4
WEF Africa Competitiveness Ranking 2
WEF Enabling Trade Index 72
WEF Global Competitiveness 54
Inward FDI Performance Index 29
WEF World Competitiveness Index (2010-2011) 54
Accountability of private institutions 3
Financial market development 9
Market size 25
Institutions 47
Infrastructure 63
Macroeconomic environment 43
Health and education 129
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6. South Africa Tops the BRICS for Ease of Doing Business
Country Overall Rank Getting credit Protecting investors
South Africa 34 2 10
China 89 61 93
Russia 120 87 93
Brazil 129 87 73
India 133 30 41
Source: World Bank Group, 2010
6

7. Source: StatsSA, 2010
7
2010q2
2010q1
2009q4
2009q3
2009q2
2009q1
2008q4
GDP growth per quarter, 2005 - 2010
2008q3
2008q2
2008q1
2007q4
Quarter
2007q3
2007q2
2007q1
2006q4
A Growing SA Economy
2006q3
2006q2
2006q1
2005q4
2005q3
2005q2
2005q1
8
6
2
0
-2
-6
-8
-4
4
Growth (%) q-o-q

8. South African Economy in Perspective
Relative Size of South Africa GDP vs. Peers, 2009
Hong Kong
Ireland 2015 GDP (USDm)
Portugal
2009 GDP (USDm)
Colombia
United Arab Emirates
Finland
Thailand
South Africa
Denmark
Argentina
Iran
Greece
Venezuela
Saudi Arabia
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000
Source: IMF, 2010
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9. South Africa to have a new set of Peers by 2015
2009 2015
Rank Rank Rank Country Rank
Country Change Change
2009 2015 2009 2015
27 Venezuela 34 20 Belgium 23
28 Greece 36 19 Switzerland 24
29 Iran 26 23 Norway 25
30 Argentina 30 29 Iran 26
31 Denmark 31 24 Austria 27
32 South Africa 28 32 South Africa 28
33 Thailand 29 33 Thailand 29
34 Finland 43 30 Argentina 30
35 UAE 33 31 Denmark 31
36 Colombia 32 36 Colombia 32
37 Portugal 48 35 UAE 33 9
Source: IMF, 2010

10. Western Cape Outperforms the National Economy
GDP Growth per annum, 2000-2008
7
6
5
Growth (%) y-o-y
4
3
2
1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
RSA Western Cape
Source: StatsSA, 2009
***Regional GDP is released in November of the next year
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11. Western Cape Economy in Perspective
Relative Size of Western Cape GDP, 2009 (USDm)
Costa Rica
• Western Cape USD38.9bn (2008)
Uruguay
• Bigger than Lebanon, Kenya,
Ethiopia
Ethiopia and Uruguay
Kenya • Third fastest growing local economy
Uzbekistan in 2008
Lebanon
Lithuania
Guatemala
Western Cape
Tunisia
Sri Lanka
Serbia
Azerbaijan
Dominican Republic
Bulgaria
Belarus
20,000 30,000 40,000 50,000
Source: IMF, 2010; Quantec, 2010
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12. % Share
Finance, Real
23.9
estate &
Business
27.7
Services
18.3
Manufacturing
15.1
Wholesale &
Retail trade;
hotels &
restaurants 14.7 14.2
Transport & 9.3
Communication
8.6
10
General
government
services
8.6
Agriculture,
forestry &
fishing
4.6 4.8
Community,
social and other
personal
4.9 4.5
services
3.3
Construction
Changing Composition of the Provincial Economy
4.2
Breakdown of the Western Cape Economy – by sector
Electricity &
Water
1.6 1.5
2000
Mining &
Quarrying
2008
0.2 0.7
12
Source: Quantec, 2010

13. The Western Cape’s Strengths
• 4 Excellent Universities
World Class
Higher • UCT’s MBA is the ranked 89 Globally and top in the Southern Hemisphere by Financial Times.
Education
• UCT’s Exec. Education is among the world’s top 10 according to Economist Intelligence Unit.
Centre for
Design, • Newsweek ranked Cape Town as one of the 8 most creative cities in the world
Creativity & • Fast growing ICT, film, design, advertising and media industries
Innovation
• Diverse population
Our people • Young, trainable workforce
• Predominantly English speaking
Dynamism & • Third largest economy in South Africa, consistently outperforming national growth.
Stability • One of the most advanced constitutions in the world.
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14. Western Cape Trade
Western Cape Trade, 2005-2009
200,000
150,000
100,000
Value (ZARm)
50,000
0
-50,000
-100,000
-150,000
2005 2006 2007 2008 2009
Exports 35,968,993,259 38,123,424,708 47,987,649,929 59,817,460,759 51,931,174,654
Imports 68,457,675,465 102,584,326,215 124,487,787,851 171,116,557,795 116,714,250,805
Trade balance -32,488,682,206 -64,460,901,507 -76,500,137,922 -111,299,097,036 -64,783,076,151
Source: Quantec, 2010
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15. Key Western Cape Exports
Electronic
Value 2009 Tobacco Pearls &
Rank Top 10 Exports equipment
precious stones
(ZARbn) 5% 3%
2%
Vegetables, fruit
1 Edible fruit, nuts 10.6 & nut
préparations
2 Mineral fuels 9.12 6% Edible fruit, nuts
26%
3 Beverages, spirits & vinegar 6.68 Iron & steel
6%
4 Machinery equipment 2.99
Fish &
5 Fish & crustaceans 2.65 crustaceans
7%
6 Iron & steel 2.54
Vegetables, fruit & nut
7 2.19
preparations
Machinery
8 Electronic equipment 1.85 equipment
7%
9 Tobacco 1.29 Mineral fuels
Beverages, 22%
10 Pearls & precious stones 0.94 spirits & vinegar
16%
Total Exports for 2009 51.93
Source: Quantec, 2010
15

16. Top Export Markets
UK 10.5% Netherlands 8 6%
Belgium 3.5%
France 2.5%
Germany 6.4%
US 4.2%
China 3.5%
UAE 2.3%
Angola 2.6%
Mozambique 2.9%
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17. Western Cape Share of South African Exports
Western Cape share of South African Exports
Product Value 2009 ZAR % Share 2008 % Share 2009
Tobacco and manufactured tobacco substitutes 1 293 539 155 72.9% 85.3%
Vegetable plaiting materials, vegetable products 4 773 933 65.9% 83.4%
Fish, crustaceans, molluscs, aquatic invertebrate 2 647 065 098 81.2% 82.9%
Photographic or cinematographic goods 199 940 512 82.0% 81.6%
Meat, fish and seafood food preparations 268 067 029 70.9% 80.7%
Edible fruit, nuts, peel of citrus fruit, melons 10 614 498 626 79.0% 78.0%
Beverages, spirits and vinegar 6 677 640 496 78.6% 77.7%
Bird skin, feathers, artificial flowers, human hair 19 937 130 74.5% 69.5%
Vegetable, fruit, nut, food preparations 2 186 641 708 70.5% 66.5%
Knitted or crocheted fabric 18 823 193 46.2% 56.4%
Lac, gums, resins, vegetable saps and extracts 17 272 873 52.3% 55.7%
Source: Quantec, 2010
Edible vegetables and certain roots and tubers 220 901 353 49.8% 53.1%
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18. Western Cape Share of South African Exports
Western Cape share of South African Exports
Product % Share of SA Exports
Mineral and aerated waters not sweetened or flavoured 67.5%
Sparkling grape wine 90.3%
Grape wines nes 98.6%
Fermented beverages nes (eg cider, perry, mead) 66.2%
Spirits obtained by distilling grape wine, grape marc 75.3%
Beverages, spirits and Whiskies 91.1%
vinegar Vodka 83.4%
Liqueurs and cordials 95.5%
77.7% Grapefruit juice 97.9%
Juice of any other single citrus fruit 68.4%
Pineapple juice 96.7%
Tomato juice 60.7%
Grape juice (including grape must) 91.1%
Apple juice 99.8% Source: Quantec, 2010
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19. Western Cape Share of South African Exports
Western Cape share of South African Exports
Product % Share of SA Exports
Pistachio nuts 93.3%
Bananas 60.1%
Dates 98.2%
Oranges, fresh or dried 74.7%
Mandarin, clementine & citrus hybrids, fresh or dried 84.0%
Grapefruit, fresh or dried 65.9%
Edible fruit & nuts Fresh grapes 90.3%
78.0% Apples 90.9%
Pears and quinces, fresh 93.6%
Apricots 89.2%
Cherries 76.9%
Peaches and nectarines, 86.3%
Plums 92.7%
Raspberry, blackberry, mulberry and loganberry 99.7% Source: Quantec, 2010
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20. Western Cape Share of South African Exports
Western Cape share of South African Exports
Product % Share of SA Exports
Tuna 94.3%
Cod 91.0%
Swordfish 100.0%
Haddock 99.7%
Mackerel 81.9%
Fish, crustaceans, Dogfish and other sharks 81.6%
molluscs, aquatic Hake 95.9%
invertebrates Dried Fish 78.9%
82.9% Smoked fish and fillets 99.4%
Lobster 99.2%
Octopus 67.9%
Snails 99.1%
Tuna 94.3%
Cod 91.0% Source: Quantec, 2010
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21. Western Cape Share of South African Exports
Western Cape share of South African Exports
Product % Share of SA Exports
Women and girls clothing and underwear 76.7%
Mens and boys clothing 71.3%
Apparel articles Babies garments and clothing accessories 84.2%
48.2% Track suits, ski suits and swimwear 91.2%
Panty hose, tights, hosiery 81.6%
Flax yarn 99.9%
Textile fibres, yarn and Woven fibres of flax 65.8%
wovens Manmade filaments 48.7%
89.6% Synthetic filament yarn(not sewing thread) 76.9%
Knitted or crocheted fabric 56.4%
Cruise ships, excursion boats, ferry boats 70.9%
Ships, boats and other Cargo vessels 92.3%
floating structures Inflatable pleasure craft 96.2%
85.9% Sailboats 96.4%
Tugs and pusher craft 99.7% Source: Quantec, 2010
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22. Key Western Cape Imports
Mineral fuels
Value
2009
74%
Rank Top
10
Imports
(ZARbn)
1 Mineral fuels 67.6
2 Machinery & equipment 6.1
3 Electric equipment 3.47
4 Beverages, spirits & vinegar 3.22 Cereals
2% Machinery &
5 Plastics 1.98 equipment
7%
6 Knitted & crotched articles 1.96 Apparel articles Electric
7 Footwear & parts 1.93 2% Plastics equipment
2% 4%
8 Pharmaceutical products 1.6 Pharmaceutical
products Knitted &
9 Apparel articles 1.57 2%
Beverages,
crotched spirits & vinegar
Footwear & articles
10 Cereals 1.5 3%
parts 2%
2%
Total Imports for 2009 171.1
Source: Quantec, 2010
22

23. Top Import Markets
UK 3.5% Netherlands 2.8%
Germany 4%
US 3.1%
China 10.5%
India 2.9%
Nigeria 7.9% Iran 10.6%
Angola 6.7%
Saudi Arabia 11.7%
23

24. Top Sources of FDI into the Western Cape
Jan 2009-Sep 2010
25.00%
20.00%
15.00%
Share (%)
10.00%
5.00%
0.00%
United Netherlan Switzerla
Japan Germany Ireland UK Taiwan France Australia Mauritius India Russia
States ds nd
% Projects 8.57% 8.57% 5.71% 20.00% 20.00% 2.86% 11.43% 5.71% 2.86% 5.71% 2.86% 2.86% 2.86%
% Capex 16.73% 15.91% 13.92% 4.17% 3.49% 1.12% 0.89% 0.80% 0.79% 0.65% 0.45% 0.27% 0.07%
Source: FDI Intelligence, 2010
24

25. Breakdown of FDI into the Western Cape
Jan 2009 - Sep 2010
60.0%
50.0%
40.0%
Share (%)
30.0%
20.0%
10.0%
0.0%
Industrial
Alternative/
Business Communica Consumer Financial Food & Hotels & Machinery, Software & Transportati
Renewable Beverages Healthcare Metals Textiles
Services tions Products Services Tobacco Tourism Equipment IT services on
energy
& Tools
% Capex 24.3% 0.3% 2.5% 54.9% 1.4% 1.5% 1.3% 2.7% 0.2% 0.5% 0.1% 5.6% 0.9% 3.7%
% Projects 5.7% 2.9% 17.1% 8.6% 2.9% 5.7% 2.9% 2.9% 2.9% 5.7% 2.9% 31.4% 2.9% 5.7%
Source: FDI Intelligence, 2010
25

26. Companies investing in the Western Cape
Companies Investing in the Western Cape, Jan 2009 to Aug 2010
Sector Source country Parent company Sector Source country Parent company
Alternative/Renewable Ireland Mainstream Renewable Power Industrial Machinery, Germany Robert Bosch
energy UK Wind Prospect Equipment & Tools Japan Toshiba
Beverages Switzerland Nestle Metals Russia Pipe Metallurgical
France SR Teleperformance
UK M & C Saatchi France AD Software
Business Services Trusted Logic
Kwintessential Ltd
US Avis Budget Group Germany Beckhoff
India CMS Computers Ltd
Germany Deutsche Telekom Netherlands 60 Layers of Cake
Software & IT services
Communications Japan KDDI UK Unboxed Consulting
US Stratos Global Mobile Interactive
Dialogue Communications
Consumer Products US Amazon.com
US Yola
Mauritius AfrAsia Bank IBM
Financial Services
Switzerland deVere & Partners
Food & Tobacco Australia Woolworths Textiles Netherlands Moshi Moshi
Healthcare UK African Medical Japan Kawasaki Kisen Kaisha
Transportation
Hotels & Tourism US Hilton Worldwide Taiwan Evergreen Group
Source: FDI Intelligence, 2010
26

27. FDI into the Western Cape
Location Determinants for FDI into the Western Cape*
Proximity
to
markets
or
Domes&c
customers
Market
Growth
23%
Poten&al
48%
Skilled
workforce
availability
Natural
9%
Resources
4%
Presence
of
Industry
Regula&ons
or
Suppliers
or
JV
Cluster
/
Cri&cal
business
Partners
Mass
climate
6%
4%
6%
Source: FDI Intelligence, 2010
* Based on company surveys
27

28. M&A in South Africa increase in 2010 by 133%!
Cross border deals made > 50%!
28

29. JSE Listed Companies from the Western Cape
3 SA companies rank best in world (AT Kearney Top 40 survey)
29

30. Foreign Subsidiaries in the Western Cape
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31. 31