CAV Annual Report 2021

4.4. THE AEROSPACE AND DEFENCE

• Further to the above challenges, the limited government stewardship in the South African industry is currently perceived to be the biggest issue by aerospace industry players , followed by sporadic demand . Accordingly, government should strengthen its participation in supporting the aerospace industry by various means, including leveraging on Public Procurement and other methods of funding. In this regard, the Joint Aerospace Steering Committee (JASC) has been established to coordinate the aerospace industry for collective gain, • The aerospace industry also requires a significant investment in terms of machinery plant and equipment . For South Africa to be able to deepen its manufacturing capabilities and move into knowledge- intensive value chain, a tremendous amount of industry upgrading will be necessary. The various governmental incentive schemes such as the Industrial Policy Action Plan (IPAP), the Black Industrialist Program, Invest SA, the Aerospace Industry Support Initiative (AISI) as well as, financing opportunities offered by agencies such as Industrial Development Corporation (IDC) and National Empowerment Fund (NEF) at national, provincial and local government levels are very handy in strengthening and upgrading the technological and industrial manufacturing capabilities, • Slow progress within the made toward transformation . The sector is not representative of the South African population and the new B-BBEE codes require a more aggressive approach to Broad-Based Black Economic Empowerment , • High barriers to entry for new entrants into the market due to various reasons such as access to funding, high complexity vs. low volume-based sector, sector in South Africa is relatively small, etc., and • Finally, there is an insufficient pipeline of incubated sub-tier supplier companies and skilled personnel to absorb current knowledge and experience, and an insufficient intra-governmental co-ordination for industry-specific and structured support. The limited availability of funding for the development of infrastructure, bulk services and facilities at CAV needs to be evaluated and challenged for the CAV Landside and Airside Developments to succeed in contributing to the selected sectors of the economy meeting the mentioned challenges.

INDUSTRY: CLUSTERS AND INDUSTRIAL PARKS Cluster type developments in South Africa include the development of Industrial Development Zones (IDZs), e.g. Coega and East London IDZ as established IDZs, as well as the new generation IDZs at Saldanha in the Western Cape, Dube Trade Port in Kwa-Zulu Natal (KZN) and the Maluti-A-Phofung (MAP) IDZ in the Eastern Free State. The IDZs are expected to migrate to Special Economic Zones (SEZs). The Aerotropolis (Aerospace + Metropolis) type developments that are being undertaken at Ekurhuleni (around the OR Tambo Airport) and the Dube Trade Port seek to leverage off the combined and synergistic economic and demographic developments in an area. The development of industrial parks across a variety of industries and areas have taken place to attract investors, tenants and users of facilities and to leverage off local and foreign investment, availability of shared services and phased development of infrastructure and utility services. Benchmarked industrial park type developments are the Automotive Supplier Park in Rosslyn (Northern part of the City of Tshwane’s geographical Area) and the Nelson Mandela Bay Logistics Park at Uitenhage (near Port Elizabeth in the Eastern Cape). Acursoryglanceatexperiencesbothlocallyandinternationally indicate that there is more scope of commercial sustainability of cluster and industrial park developments if projects of this nature are operated outside of government administration structures albeit with government initiation and even funding of the process, at least initially with infrastructure and services’ development funding. The following examples of global industrial parks of cluster concept developments with comparable mandates and similar goals were identified as follow: • Hi-Tech Industrial Parks with a similar focus on the Aerospace, Defence and Advanced Manufacturing Sectors: -- Aeropolis, Aerospace Technology Park of Andalusia in

the province of Seville, in the South of Spain, -- Aerospace cluster in Chihauhau, Mexico, -- Aerospace Valley in Toulouse, France and -- Midparc Casablanca Free Zone in Morocco.

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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