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Investment opportunities in agriculture, manufacturing and tourism
Tue, 18 Sep 2007 00:00

Region
Free State
Naledi Municipality
South Africa

Sector
Agriculture & Agri-processing
Manufacturing
Tourism & Leisure

Summary:
Naledi Municipality has identified real opportunities for investment in agriculture, manufacturing and tourism in the region
Contact
Nomthandazo Zwane, LED Coordinator

Email
zwanen@naledimun.co.za

Tel
051 541 0012
Fax
086 616 1772


Areas for investment
The agriculture, tourism and manufacturing sectors account for the majority of the economic activity in the municipality, with all exhibiting strong potential for growth. Specific areas within these sectors are highlighted below, including investment opportunities in agri-processing, water-front development and sand mining for construction and manufacturing purposes.

Agriculture
As the most labour intensive sector, agriculture is currently the highest employer and the largest sector, in terms of GGP, in the region. With the potential to do even more for the communities it serves, this sector represents the future economic driver in the municipality. This is also a very dynamic sector and Naledi needs to develop strategies to respond to this constant change if better opportunities are to be realised in this sector. These should include the diversification of the agriculture produce in line with consumer demands. Opportunities do exist, for example, for the establishment of wholesale meat production and leather. With the strategic geographic location of the municipality (close to Lesotho and the Eastern Cape) the possibilities for trade and commerce are positive.
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Tourism
This sector is the least explored in the local area, which is graced by the Maluti route with its scenic view of the undulating horizon, a variety of wildlife in the Caledon Nature Reserve and a few hunting lodges. Naledi has a wealth of natural resources that have the potential to make a significant contribution towards the tourism industry. There are two main dams, for example – Welbedacht in Wepener and Egmont dam in Van Stadensrus – for water sports and fishing. Accommodation is however a challenge, with only two guest houses and a lodge in Wepener, and no accommodation for visitors to Dewetsdorp and Van Stadensrus.

Further, Mohokare lodge, situated on the banks of the Knelpoort Dam, about 15km from Wepener, has the potential for extreme sports like rock climbing and abseiling with its natural rocky hills.

Manufacturing
The Caledon River runs through the town of Wepener and is a rich source of sand that is mined presently for construction purposes. This sand is deemed to be of such a high quality however that it has the potential to be used for other purposes, for example, the manufacture of ceramic tiles and glass. Such expansion will require large investment into the necessary infrastructure and the development of the necessary factories, but the potential has been shown to be there.

Wepener is also endowed with large reserves of clay soil. Initial tests conducted on this clay have shown that the clay can be used to manufacture quality clay bricks.  Investment is sought into the development and funding of a clay brick plant.

Naledi Municipality overview
Naledi Local Municipality is located in the south-east corner of the Free State along the R702 route and forms part of the Motheo District Municipality. The municipal area measures 11 933km2 and comprises the towns of Dewetsdorp, Wepener and Van Stadensrus. Wepener is the gateway to the town of Mafeteng in Lesotho with the Van Rooyen border gate just seven kilometers from the centre of the town.

Naledi Municipality is a largely rural community with almost a third of its land used for farming cattle, sheep and grain. Agriculture therefore is one of the main economic sectors, together with construction; community, social and personal services; and wholesale and retail trade services. Tourism and manufacturing are two of the sectors that the municipality would like to explore further as these exhibit a great potential for growth even though they are relatively untapped at present.
  

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