CAV Annual Report 2021

6. THE CAV AS A VIABLE BUSINESS 6.1. CREATING A COMMERCIALLY VIABLE ENTITY The objectives are to successfully build and operate an Industrial Park and to secure aerospace, defence and advanced manufacturing tenants in order to become self-sustainable and profitable. The capital funding for the provision of internal bulk earthworks infrastructure and external utility services development, as well as operational funding for the management of the CAV is being provided for by the the dtic . To achieve its complete vision and to further develop tenant and building-owner facilities, as well as general and specialised support services funding will be sourced through a combination of private and public funding. 6.2. CREATING A RESPONSIBLE SOUTH AFRICAN COMPANY By attracting fixed domestic and international investment, the development of the CAV will lead to the contribution of job creation and sustainability in the aerospace and defence industry. This will achieve significant macro-economic benefits nationally, provincially for Gauteng and locally for the City of Tshwane. The social impact of investment in infrastructuredevelopment and the upgrading of facilities once companies move to the CAV will be significant. Importantly, there will be an increase in the pool of skilled people in the community and larger income per capita, with spin-off benefits for the national, provincial and local economy. The CAV’s Broad-Based Black Economic Empowerment (B-BBEE) agenda complements its social responsibility initiatives by fostering an environment, including incubation facilities and services, within which businesses from previously disadvantaged communities can develop and prosper. 7. FUTURE OUTLOOK The CAV, as a typical cluster development, needs to attract aerospace suppliers to reach a “critical mass”. The CAV would need to ensure further investment in production buildings over and above the dtic budget. It would need to finalise the utility and support services that will be required for the

The following items as requested by CAV from CoT are still pending: • Extension of the Section 7 (6) approval that allows CAV to temporarily occupy the ATCC Building; • Approval of the drawings for Van Ryneveld & Van der Spuy Road intersection upgrades. The following were some of the factors that impacted the development, delays from CoT is approving the drawings, additional CoT requirements to conduct environmental studies like water use licence application (WULA), delays in RandWater Utility approving theWayleave for installation of a new CAV pipe above the existing pipeline of the water utility, delays in the Department of Public Works & Infrastructure (DPWI) granting the Power of Attorney and the delays relating to the geotechnical engineering approvals by the Council for Geoscience (CGS). 5.2 INTERACTION WITH INTERESTED PARTIES Since its inception, the CAV has succeeded in attracting the interest of a number of strong industry players to consider the CAV as an investment location to relocate or expand their footprints in Gauteng and to be part of the Industrial Park Development. This renewed interest is as a direct result of increased marketing and business development activities combined with bulk earth works and infrastructure activities taking place on the Landside Development site. Several Letters-of-Intent (LOI’s) were signed with industry partners interested to explore the CAV as a potential investment destination. During the coming year the engagements towards incorporation of the CAV into the GGDA will continue. This process is critical to support the CAV to secure Capital Funding to service the growing needs of interested tenant. Facility planning and initial designs were undertaken for several interested parties that have indicated their interest and intent to locate in the CAV: • The initial delay in the development of the CAV Landside infrastructure and bulk utility services has had a negative impact on the timing of engagements with interested tenants, • The impact of COVID19 has impacted the interest in space requirement within CAV as in 2020/21FY, only 2 companies approached CAV with an intent to move to the park.

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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