MULTI-SECTOR FACT FINDING MISSION TO SOUTH AFRICA

Transcription

1 MULTI-SECTOR FACT FINDING MISSION TO SOUTH AFRICA June 1 to 6, 2014 Focus on: Cleantech / Agroprocessing / Automotive Components Medical Technology / Rail Infrastructure / Premier Consumer Goods Industries Switzerland Global Enterprise (S-GE) ist der neue Name von Osec. OFFICIAL PROGRAM

2 SOUTH AFRICA South Africa has the largest economy in Africa and is the only African member of the G20. Covering only 3% of the African continent, South Africa accounts for a massive 40% of industrial output and is by far the most sophisticated free-market economy in Africa. Together with Brazil, Russia, India and China, South Africa is a BRICS country, belonging to an exclusive group of emerging world economic powerhouses. It is therefore a key emerging market for global investors, with a wealth of opportunities for Swiss expertise across almost every sector of the economy, including access to the rest of Africa s 800+ million customers. Switzerland is a key partner for investment in South Africa, ranking as the seventhlargest foreign direct investor. Over the last decade Switzerland has confidently invested around CHF 1.7 billion and created over 13,000 jobs in South Africa spread across a range of industrial sectors, including financial services, metals, industrial machinery, equipment and tools, and food and tobacco. A considerable number of Swiss companies have operations in South Africa, with many also utilizing South Africa as their base for doing business with the rest of Africa, and especially Southern Africa including well-known concerns such as Nestlé, Novartis, Roche, Ciba, Sulzer, Hoffmann La Roche, UBS, Credit Suisse, Xstrata, Swiss Re, Schindler and SGS. 2

3 Focus Sector CLEANTECH Renewable energy, Energy efficiency and Green building with a focus on technology, engineering, services and training companies PARTNER ORGANISATIONS THE DTI Department of Trade and Industry IDC Industrial Development Corporation of Southern Africa BUSA Business Unity South Africa SACCI South African Chamber of Commerce and industry BBC Black Business Council CSIR Council for Scientific and Industrial Research TIKZN Trade and Investment Kwa-Zulu Natal GGDA Gauteng Growth and Development Agency South Africa, with its industrializing economy, is the largest C0² emitter in Africa and the 12 th largest in the world. Its electricity grid currently comprises 89.7% electricity from coal, 10.3% from nuclear and 1.1% from renewable sources which collectively generates an average of 960gr of CO² per kilowatt of electricity which is a stark contrast to the Swiss energy mix of 143gr of C0². There are numerous initiatives in South Africa with the intent of cutting emissions, reducing power consumption and increasing the proportion of energy obtained through renewable sources. These include the Renewable Energy Independent Power Producer Program (REIPPP) that has progressed through 3 successful bidding rounds to acquire an official total of 64 projects including wind farms, biomass, concentrated solar power (CSP), photovoltaic (PV) and hydro projects, representing a combined investment of approximately CHF 17.5 billion and a collective capacity of 3,933 MW. Government is currently considering opening a fourth window for REIPPP around mid As part of State Owned Company Eskom s South African Bulk Renewable Energy generation program (SABRE Gen), the utility is researching the feasibility of CSP, biomass energy, wind energy and wave power. Eskom also provides subsidies for energy efficient motors, low flow shower heads, heat pumps and a program for the exchange of tungsten light bulbs for energy efficient compact fluorescent lamps (CFLs). Industrial and mining energy optimization driven by the potential introduction of emission penalties is another significant business opportunity. Green building is developing momentum in South Africa through private and public sector initiatives to undertake energy efficient retrofits or requesting four to six star Green Star ratings for new buildings. Green building thus presents numerous trade and investment opportunities for related products, systems and services in: specialist consulting; indoor environmental quality; energy management, quality and security; water management; materials; ecology and land use; and emissions. Collectively, this means that there are numerous opportunities in SA, for high-tech and innovative Swiss companies to access business opportunities for the introduction of various Cleantech solutions. 3

4 AGROPROCESSING focus on packaging and machinery companies South Africa s agroprocessing sector consists of 12 downstream sub-sectors: meat processing; preserving fruits and vegetables; dairy products; canning and preserving fish; fruit canning and jams; vegetable and animal oils and fats; grain mill products; sugar mills and refineries; chocolate and sugar confectionary; prepared animal foods; bakery products and other food products such as starch and starch products; and ready-made meals. The agroprocessing sector contributed about CHF 28 million to the GDP in 2011, representing 20% of manufacturing sector output and is the largest manufacturing sector in employment terms with about 171,000 employees (excluding agriculture).south Africa is not only self-sufficient in virtually all major agricultural products but is also a net food exporter, exporting 30% more agricultural goods than it imports. World-class infrastructure, counter-seasonality to Europe, vast biodiversity and marine resources, and competitive input costs make South Africa a significant player in the world s markets. South African agroprocessing packaging plants use state-of-the-art technology, and supermarket shelves overflow with products in modern packaging, comparing favourably to that seen in any first world country. The food and beverages market generates the most business for the industry but rising demands for pharmaceutical and personal care products is aiding packaging industry growth. Factors that will impact the South African packaging industry are the population s changing lifestyles, cheaper imports due to low excise duty, technological advancements, recycling trends and a structural shift from plastics to glass. South Africa thus presents opportunities for innovative and high tech Swiss packaging companies for: Clean machine design; Digital printing; Sustainable packaging; Interactive and Intelligent packaging; and Flexible packaging. About 24% of South Africa s total imports are for machinery and equipment, with primary imports from Europe, as well as China, Japan and India. A number of factors are impacting on trends for machinery and equipment including: rising energy costs; automation; cost containment and efficiency improvements; food safety; sustainability; and investment in the organic, healthy, natural food trend. Waste reduction, the efficient use of resources and social responsibility will play a growing role in manufacturing operations for the foreseeable future. These factors thus present opportunities in South Africa for Swiss food manufacturing, packaging and labeling equipment companies for: Simpler overall equipment; Integrated labeling equipment, Design for zero downtime and reliability; and Multiple-application technology machines. AUTOMOTIVE COMPONENTS focus on specialised component engineering and manufacturing companies South Africa has a developed automotive manufacturing industry that includes at least 7 vehicle OEMs and more than 60 component OEMs. The total South African new vehicle market was around 631,700 vehicles (including cars, LCVs, trucks and buses) in 2012 which includes locally produced and imported vehicles. The South African automotive sector is also a key exporter of vehicles and components to European and other international markets, with 277,844 vehicles (including cars, LCVs, trucks and buses) being exported in The industry has experienced significant growth resulting from local and foreign direct investment over the past 2 decades due to competitive incentive programs such as the previous Motor Industry Development Program (MIDP) and the current Automotive Production Development Program (APDP) which focuses on added value in the production of vehicles and components for the local and export markets. The APDP also promotes the expansion of local vehicle assembly from 550,000 vehicles/annum in 2012 to 1.2 million vehicles/annum by 2020 accompanied by the broadening and deepening of component localisation. This presents substantial opportunities for vehicle OEMs to collaborate with component OEMs to achieve localisation targets, cost competitiveness, innovative production and sustainable employment opportunities. It also presents a unique and attractive opportunity for highly specialized Swiss component manufacturers to evaluate and consider direct investment or partnership in South Africa given the economy of scale targets. 4

5 MEDICAL EQUIPMENT focus on Medical Technology companies The South African medical equipment and devices market is extremely diverse with over 600 suppliers ranging from large multinational subsidiaries, distributors and agents for disposable medical devices to major equipment and has an estimated value of CHF 1 billion in Market access is currently defined by price and demand (utilization) and is largely restricted by managed healthcare interventions (technology assessment) employed by insurance companies and private hospitals. Various dynamics exist within the South African healthcare environment today that will shape market access procedures for new technologies in the future. These are largely driven by a political agenda through the enactment of various pieces of legislation and initiatives that infer that Health Technology Assessment (HTA) will be used as part of continuously evolving processes that seek to ensure equity in the healthcare system. Opportunities for suppliers should be seen in the context of increasing product volumes through an increasing market potential. Short to mid-term, private sector growth will come from increased consumerism in the formally employed but uninsured population, and the activity of service providers (namely hospitals), which will be competing for a large market share through the lower income market segment by offering value for money. In the long term the public sector health institutions will improve their quality of service delivery such that it becomes close to that seen in private sector care. This thus presents an opportunity for a range of Swiss medical technology companies to enter the South African market. RAIL INFRASTRUCTURE focus on Rail Fixed infrastructure including: Signalling and Ticketing systems companies; and Rail Rolling stock including: component engineering, manufacturing, testing and rail systems, and specialized rail consulting companies Whilst South Africa has the best infrastructure in Africa, there has been a lack of investment in the past. Although South Africa only accounts for 5% of the population of Africa, it has 32% of the total railway kilometers (28,872km) which handle some 61% of the total rail tonnage of the continent. State owned company Transnet Freight Rail is the largest railroad and heavy haulier in Southern Africa, with about 22,000km of rail network, of which about 1,500km are heavy haul lines. The greater part of the sector uses narrow gauge and roughly 8,931km is electrified. The railway sector also offers links with neighbouring countries, such as Zimbabwe, which enables passenger and goods traffic to pass through South Africa to Southern Africa. Transnet has embarked on projects to upgrade existing freight rail lines and are currently developing new freight rail line projects to enable greater connectivity as determined by the National Infrastructure Plan. These projects thus present opportunities for Swiss companies in the field of: testing and rail systems; signaling and specialized rail consulting. In addition to this, Transnet are also recapitalizing the current freight rolling stock which present further investment and trade opportunities for Swiss rail component engineering and manufacturing companies. Passenger Rail Agency of South Africa (PRASA) is an organisation that has arisen from Government s need to find sustainable funding solutions as part of its efforts to reverse the decline in commuter rail services. The essence of PRASA is to integrate inter-modal facilities and services into public transport solutions that optimise the performance of the whole transport system. Beyond this, the most important reason for consolidating passenger rail entities is the need to address the underperformance of rail passenger services and the historical under-investment in this sector. PRASA has recently announced its decision to procure passenger rail rolling stock through a consortium led by French company Alstom. The contract, however, places significant emphasis on local content which present collaboration opportunities for specialised Swiss rail component engineering and manufacturing companies. Safety and commuter convenience are also key priorities to PRASA, which presents further future opportunities for Swiss technology, systems and testing, signalling and ticketing companies. 5

6 PREMIER CONSUMER GOODS focus on branded and niche food product manufacturing companies South Africa has a well regulated food products industry which has experienced growth, promoted through the emergence of a growing black middle class, with increasing disposable incomes and spending potential, and a new wealthy elite through economic transformation programs such as Broad-Based Black Economic Empowerment (B-BBEE). Over the past few years the living costs of South Africans have drastically increased, however, the growing middle and elite classes have meant that the overall consumption expenditure on food for the year ending 30 June 2012 increased by 12.4% and amounted to approximately CHF 40.1 billion. An increased awareness among certain consumers of the importance of a healthy diet has also increased demand for healthier food products and organic foods. South Africa thus represents an attractive opportunity for Swiss premium food product exporters due to: The established hotel/restaurant/catering industry; South African consumers becoming more sophisticated in their eating patterns, and being willing to try new Swiss products that are viewed as high quality; The growth in the food and beverages industry that seek imported food and beverage products. South African food sectors that currently have good sales, and/or indicate growth opportunities include: natural fruit juices; specialty beers with heritage; wine and spirits; unique products for the snack market; premium biscuits, confectionery and chocolate; dairy beverages and specialty cheese; organic products and gluten free foods. OBJECTIVES The objective of the Multi-Sector Fact Finding Mission to South Africa is to provide: Meetings with potential business partners, companies, experts and main players active in your respective business sector Practical information and understanding of incentive programs and the regulatory environment Valuable insights into the South African focus sectors, markets and industry ATTENDEES PROFILE Executives; Board Members; Regional Directors; Business Development, Marketing and Sales Managers of Swiss companies. 6

7 Program South Africa, Multi-Sector Fact Finding Mission June 1 to 6, 2014 REGISTRATION welcome@s-ge.com SUNDAY JUNE 1, 2014 Arrival at OR Tambo International Airport (Johannesburg South Africa) Transfer to City Lodge Lynwood Hotel (Pretoria) 12:30 Light Lunch at Restaurant 14:30 Interactive Country Briefing Overview of doing business in South Africa Mentality awareness Program Overview Overview of business enabling environment 16:30 Transfer to the Hotel and Free Time 18:30 Transfer to Restaurant for Welcome Dinner MONDAY JUNE 2, :00 Information Workshop with the Department of Trade and Industry Overview of SA Industrial and key Development programs Overview of National Trade and Investment Opportunities Overview of Investment Incentives Q&A session Swiss Delegate introductions 12:00 Business light lunch and networking 13:00 Business to Business meetings 14:30 Transfer to Sector based site visits in Pretoria 17:00 18:30 Transfer to the Ambassador of Switzerland s Reception 19:00 Networking Cocktail: Reception by Ambassador of Switzerland Networking with Swiss Companies in SA, Diplomats and SA Business 21:00 TUESDAY JUNE 3, :30 Transfer to Sandton 10:00 Information workshop with the Industrial Development Corporation Overview of the SA Economy Brief sector overviews Q&A session 12:30 Business light lunch and networking 14:00 Business to Business meetings 18:00 Transfer to Business Dinner function Networking with Swiss Companies in SA and SA Business 21:00 7

8 Program South Africa, Multi-Sector Fact Finding Mission June 1 to 6, 2014 WEDNESDAY JUNE 4, 2014 Checkout of Hotel Transfer to OR Tambo International Airport (Domestic Departure to Durban) Flight to King Shaka International Airport 12:00 Light Lunch at Restaurant 13:30 Information Workshop with the Provincial Trade and Investment Agency Provincial economic overview Overview of Provincial Trade and Investment opportunities Q&A session 15:30 Local site seeing or free time 18:30 Transfer to Restaurant for Swiss Delegate Private Dinner 21:00 THURSDAY JUNE 5, :00 Transfer to Sector Based Site visits in Durban 12:00 Transfer to Restaurant for light lunch 14:00 15:00 Business to Business meetings 18:30 Transfer to Business Dinner function Networking with SA Business and Swiss Companies in SA 21:00 FRIDAY JUNE 6, 2014 Checkout of Hotel 09:00 Debriefing session 11:30 Transfer to Restaurant for light lunch 13:30 Transfer to King Shaka International Airport Flight to OR Tambo International Airport (Johannesburg) Flight to Switzerland Program may be subject to change. 8

9 Participant Information DATE June 1 to 6, 2014 LANGUAGE English PARTICIPATION COSTS CHF Early bird Registration by/before February 28, 2014 for Switzerland Global Enterprise members CHF Early Bird Registration by/before February 28, 2014 for non-members CHF Normal Registration by/before March 31, 2014 for Switzerland Global Enterprise members CHF Normal Registration by/before March 31, 2014 for non-members Price per person (excl. VAT) The price includes: Coordination and accompaniment during the entire trip Domestic flights and road transfers in South Africa Hotel accommodation in Pretoria and Durban All meals (excluding free time) CONTACT SUHAIL EL OBEID Consultant Africa + Middle East selobeid@s-ge.com Not included are: Flights to and from South Africa Personal expenditures Visa for South Africa: no visa is required for Swiss nationals with a valid Swiss passport Personal program preceding or following the standard program Subsequent program Costs for any personal meetings and/or individual company visits (not included in the standard program) are charged separately, subject to prior submission of an offer. Hotel information Pretoria - City Lodge Lynwood Hotel, Corner Lynnwood and Daventry Roads Lynnwood, Pretoria, 0040 ( Durban - Garden Court Umhlanga Hotel, Corner of Aurora Drive and Centenary Boulevard, Umhlanga Ridge, 4319 ( MAX BERTSCHMANN Head of Swiss Business Hub Southern Africa max.bertschmann@eda.admin.ch Flights Participants international flights to be booked independently. 9

10 REGISTRATION South Africa, Multi-Sector Fact Finding Mission June 1 to 6, 2014 I WISH TO REGISTER FOR THE MISSION: CHF Early bird Registration by/before February 28, 2014 for Switzerland Global Enterprise members CHF Early Bird Registration by/beforefebruary 28, 2014 for non-members CHF Normal Registration by/before March 31, 2014 for Switzerland Global Enterprise members CHF Normal Registration by/before March 31, 2014 for non-members CONTACT DETAILS: FIRST NAME LAST NAME COMPANY POSITION STREET, NO. POSTCODE/CITY TELEPHONE Price per person (excl. VAT). Cancellations up to 20 days prior to the travel date are charged at 50 %; after that, the entire participation costs shall be invoiced. Substitute participants are welcome without any extra charge. Program subject to change. Switzerland Global Enterprise shall undertake the trip with a minimum number of eight (8) participants. I would like to become a Switzerland Global Enterprise member and benefit from the discount of CHF 750. for this trip (and other membership advantages). MOBILE DATE SIGNATURE Unfortunately, I cannot take part in this business mission. Please keep me informed about future events and about South Africa. Early Bird Registration deadline: February 28, 2014 Normal Registration deadline: March 31, 2014 at by to welcome@s-ge.com or by fax to

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