East Capital

  • Sector: Mixed use development
  • Project location: The eastern quadrant of Tshwane (Pretoria), the administrative capital of South Africa

Project description

The project entails the development of the eastern areas of the capital city. This project will result in a dynamic mega node covering the areas of Cullinan, Bronkhorstspruit and Rayton. The plan is to focus on developing a green belt of industries, agricultural beneficiation and green settlements.

Project rationale

The purpose of the project is to revitalise the eastern part of Tshwane in support of economic growth. The area has been in economic decline and resulted in de-urbanisation due to changes in the spatial economy of the area in relation to the Gauteng city region’s urban core.

The East Capital development concept has been finalised and the packaging of investment opportunities is underway. The minimum financial requirements of the initial intervention are determined at US$15-million. This will unlock potential private investment of about US$250-million.

The following investment opportunities have been identified:
  1. Agro-processing Hub (Agri-logistical Service Centre)
  2. Bronkhorstspruit Dam Waterfront Development
  3. Aquaculture (Integrated Fish Farm)
  4. Theme Park, Edwardian Style
  5. Ezemvelo Nature Reserve Educational Ecotourism
  6. Distribution and Hospitality Services
  7. Green Industrial Park

Read more about these investment opportunities below:


1. Agro-processing Hub (Agri-logistical Service Centre)

  • Product/service: Agriculture
  • Location: Eastern region
Description of investment opportunity

The development of an Agro Hub, an agricultural logistics and agro-industrial service centre that provides the farmer, grower, entrepreneur and business firm with the opportunity to affordably access the services and inputs that are required to decrease costs and increase productivity, income and profit.

The services provided will include post-harvest processing and agro industries, assistance with marketing and information, demonstration of state-of-the-art technologies and best practice management procedures, skills training and capacity building and supply of inputs (seeds, fertiliser, machinery).

Cost
  • CAPEX: R460-million
  • OPEX: R50-million
Socio-economic impact
  • Direct employment: 450
  • Permanent jobs: 250 in Agro hub-based industries, 200 on the respective farms and production units
  • Multiplier effect: High
  • Skills transfer and capacity building: High
  • BBBEE contribution: High
Affordability

Based on combined investment of the City of Tshwane for basic planning, design and infrastructure and private sector investments by financing institutions, banks, corporate sectors, investors and entrepreneurs.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Agro-processing Hub’.


2. Bronkhorstspruit Dam Waterfront Development

Artist’s impression

Product/service: Hospitality
Location: Bronkhorstspruit Dam

Description of investment opportunity

To develop a waterfront at Bronkhorstspruit Dam with restaurants, shops, a hotel and conference centre. Providing a relaxing environment for weekend guests and attracting the business tourism sector from the OR Tambo node and tour operating routes.

Cost
  • CAPEX: R268-million
  • OPEX: R51-million
Socio-economic impact
  • Create employment at different levels of management
  • Encourage hospitality and tourism management training
  • Key transformation sector
  • Create entrepreneurial opportunities
  • Estimated direct employment of 330 people
Affordability

The project is a large investment, but has the ability to attract multiple investors and businesses in developing the project.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Bronkhorstspruit Dam’.


3. Aquaculture (Integrated Fish Farm)

  • Product/service: Agriculture
  • Location: Eastern region
Description of investment opportunity

This opportunity is a fish farming aquaculture project on a central aquaculture farm (can be located near the Agro Hub) and a system of peripheral outlying growers/farmers.

The central farm will provide fingerlings, feed and training to the outlying farmers and will produce and supply feed, train the farmers and market the final fish products.

The outlying farmers will concentrate on the fattening of the fish receiving the fingerlings, feed and training from the central farm.

Cost
  • CAPEX: R650 000
  • OPEX: R450 000
Socio-economic impact
  • Employment: 20 people on central farm and one to two people on each peripheral farm.
  • Environmental impact: Moderate
  • Multiplier effect: High
  • Skills transfer and capacity building: High
  • BEE contribution: High
Affordability

The investment of the central farm is deemed affordable due to attractive IRR and PBP. Investment in the peripheral farms is considered attainable.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Aquaculture’.


4. Theme Park, Edwardian Style

  • Product/service: Entertainment/Theme Park
  • Location: Cullinan old town and Premier mine
Description of investment opportunity

The proposed theme park aims to create a similar environment in Cullinan to that of Gold Reef City in the south of Johannesburg. The recommended theme is an Edwardian fairground, which links to the history of Cullinan and its diamond mine in a fun and entertaining manner.

The theme park needs to link to the tourism activities and attractions in Cullinan surrounding the mine, Oak Avenue, the train station and the historical town.

Cost
  • CAPEX: R276-million
  • OPEX: R157-million
Socio-economic impact
  • Use professional and international corporate assistance in managing the system
  • Thereafter transfer the management and operation skills to local personnel
  • Estimated direct employment of 300 people
  • Several small business opportunities within and relative to the proposed theme park development
Affordability

Developing and operating a theme park is very expensive, but holds high levels of revenue and employment generation.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Theme Park’.


5. Ezemvelo Nature Reserve Educational Ecotourism Model

  • Product/service: Ecotourism
  • Location: Ezemvelo Nature Reserve (near Bronkhorstspruit)
Description of investment opportunity

The opportunity calls for Ezemvelo to develop a unique educational ecotourism model, as a ‘knowledge nature reserve’, that offers state-of-the-art green and environmental education while protecting a biodiversity biome. The existing facilities require upgrading and there is significant potential to develop additional facilities, namely conference facilities, upmarket accommodation and tourism activities (sporting events, guided walks and water activities).

Cost
  • CAPEX: R10-million
  • OPEX: R3-million
Socio-economic impact
  • A black youth-owned enterprise will be established for the students to own and manage the facilities at Ezemvelo;
  • Estimated employment of 30 permanent staff and 50 part-time staff;
  • An estimated 50 students will obtain part-time work at Ezemvelo during their studies;
    students receive entrepreneurial and practical training.
Affordability

Ezemvelo is an untapped resource with significant tourism potential and has BBBEE status.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Ezemvelo Ecotourism’.


6. Distribution and Hospitality Services

Artist’s impression
  • Product/service: Tourism
  • Location: Cullinan area
Description of investment opportunity

The Tourist Central Activity Node and Visitor Centre in Cullinan will provide a safe haven for tour bus groups by providing bus parking facilities, access to tourism information and reservation facilities, the opportunity to refresh with the provision of ablution facilities and refreshment stalls.

Moreover, the centre will provide an interpretation facility with optional tour guiding services at the tourist activities pickup zone. The Tourist Central Activity Node and Visitor Centre thus offers a central meeting and orientation zone for tour groups, also creating a more organised and unique environment in the historic town by removing the obstruction and inconvenience of tour buses occupying scenic space and tourist flow zones in Cullinan.

Cost
  • CAPEX: R10-million
  • OPEX: R900 000
Socio-economic impact
  • Estimated direct employment of 30 people;
  • Several small business opportunities correlate with the development; with other tourism products linking their reservations and pickups at the centre.
Affordability

The development is affordable, since the infrastructure requirements are general, relating to a small-scale retail centre.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Cullinan Tourism’.


7. Green Industrial Park

Artist’s impression

Product/service: Commercial property development
Location: Cullinan, Rayton

Description of investment opportunity

The Green Industrial Park will provide quality commercial property for a range of key green sectors, such as agriculture and recycling. Moreover, the industrial park will support and cater for the development of SMMEs and BBBEE businesses in the eastern region of Tshwane.

Businesses located in the industrial park will have to adhere to green building standards and ongoing environmental regulations (i.e. carbon emissions and water management). Potential tenants will be drawn from surrounding areas such as Refilwe, Rayton, Ekandustria and Bronkhorstspruit.

Cost
  • CAPEX: R350-million
  • OPEX: N/A
Socio-economic impact
  • Employment: 1 400 to 1 600 (temporary and ongoing)
  • Multiplier effects: Medium
  • Skill transfer: Low
  • BEE contribution: Medium
Affordability

The project has a high projected capital expenditure and offers a low-risk return. The project is thus moderately affordable.

Contact

To discuss the opportunity, please contact TEDA here with ref. ‘Green Industrial Park’.