by Elijah Sedumedi

Invest in the North West

Investment Opportunities

The North West Province is ready to upgrade it's airport terminal building
An opportunity exists for investors to fund a R128 million expansion of the City of Matlosana’s airport. The project resorts under the city’s Growth and Development Strategy and will focus on runway extensions, an airport terminal building and various commercial activities in the vicinity of the airport.

An opportunity exist to upgrade and significantly expand the current PC Pelser airport in the City of Matlosana

Airport development in the City of Matlosana (Klerksdorp)
The Economic Growth Directorate (EGD) of the City of Matlosana would like to facilitate the development of the airport by upgrading the terminal building, extending and broadening the runway and upgrading the area around the airport to accommodate a number of diverse commercial activities. 

The airport is envisaged to be a secondary regional airport alongside the integrated local transport plan for the City of Matlosana.

A feasibility study of the airport development indicates that the PC Pelser Airport has potential become a viable business development centre. A study conducted in November 2008 by Mosaka Economic Consulting indicated that the airport can be viable, with a focus on economic benefits to flow from the upgrading. 

There is an expected positive impact on the economy surrounding the airport, and such a project will benefit the Klerksdorp community at large. As a result, the City of Matlosana is considering an aerotropolis approach which will include the following focal land uses:
Inside the airport:

•courier services
•indirect income generation  through spin-offs such as car rental, hangers and warehousing
Outside the airport:
•medical hub
•regional shopping complex located between N12 and the airport
•hotel located adjacent to the N12
•meat processing plant
•maize centre
•dualisation of the N12
•speed train infrastructure for a service to run between Klerksdorp and Johannesburg (passenger and cargo logistics)

The final feasibility report for the micro- and macro-economic assessment of the proposed expansion of the airport is detailed and comprehensive. The purposes of the project are twofold and linked: to create employment and stimulate economic growth through an enhanced transport system. 

A business plan was completed in 2009 by SSI Engineers and Environmental Consultants whose final report was submitted in 2011. Detailed information is provided in these documents.

The City of Matlosana invites prospective investors to consider entering discussions which will lead to a public private investment relationship. The project is valued at R128-million and projections indicate an internal rate of return of 7.2%.

Prospective investors are encouraged to present business model proposals to the City. The models are to address enterprise profitability alongside the Municipality’s long-term economic objectives of creating a utility that will generate spin-offs to benefit different sectors of society.

For more information on investing in the Matlosana airport expansion, please contact:
Elijah Sedumedi, Investment Facilitation Manager, Invest North West
Tel: +27 14 594 2570
Cell: +27 82 468 3884
1st Floor, Old Mutual Building
171 Beyers Naude Drive

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Issue 90


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