Local development and production of CCTV solutions in KwaZulu-Natal

business overview

Country (trade office) South Africa (Johannesburg)
Project name Local development and production of CCTV solutions in KwaZulu-Natal
Business Category Disaster Prevention/Safety
Overseas ordering company NESASQ
project schedule (Q2021 3) List of domestic CCTV and related software technology companies
(Q2021 4) Review of client list and list of final 5 companies
(Q2022 1) Industry Inspection
(Q2022 2) Final company selection
(Q2022 4) Contract
financing Government agency investment, investment attraction
Scale $3,000 million
Project period June 2022, 6 - December 1, 2023

Job Description

Main Content
  • Gaming (entertainment) industry revenue (GGR*), including casinos, in KwaZulu-Natal is approximately $2020 million in 1.
    Ranked 9rd (3%) in market share among all 17.8 states
    * Gross Gaming Revenue
    * Five large game centers are in operation, including Suncoast and Sibaya, and the total number of game machines is 5.
  • Due to the high demand for CCTV and related solutions in game rooms, the South African Game Industry Regulatory Commission has
    Playing the role of issuing licenses
    – Currently, all CCTVs distributed in South Africa are imported, and there are no manufacturing companies in South Africa.
  • KwaZulu-Natal State Investment Agency and related companies are developing technologies in the form of joint ventures with Korean CCTV hardware and software development companies.
    We hope that we will be able to directly manufacture the solution locally and deliver it to related customers.
    – Due to COVID-19 and local security issues, the demand for remote monitoring systems is increasing not only in the game industry but also in the private, public, and commercial sectors.
    continues to expand
  • This project is a private project, but through solidarity with the local investment agency and the game industry regulatory committee,
    Expand and supply to other consumers (banks, hospitals, etc.)
    To expand the distribution of solutions
    – The Investment Agency plans to actively support the private companies ordering the project in finding ways to raise funds and find demand for them.
    – Funding is through the Growth Fund funded by KwaZulu-Natal State Economic Development·Tourism·Ministry of Environment (EDTEA*).
    procurement planning
    * Department of Economic Development, Tourism and Environmental Affairs
  • In the CCTV industry in South Africa, European products are leading, and European companies are considering local production.
    confirmed not to
  • Therefore, we hope to transfer local technology and foster human resources through joint ventures with Korean CCTV and related software companies.
    – Initial projects include CCTV partial assembly line and transfer of facial and motion recognition, visitor control and recognition software technology.
Reason for selection
  • Project jointly promoted by the State Government Game Industry Regulatory Commission and the Investment Agency
  • The above organizations are expected to support government investment, discovery of demand sources, etc.

entry plan

opportunity factor
  • The South African market is dominated by European products.
  • In case of local manufacturing, it is possible to occupy an advantageous position to participate in the government procurement business
  • Able to quickly settle in the market by supporting government agencies’ investment and discovery of demand sources
Threats
  • It may take a little longer for the final decision on government investment
  • Due to the nature of local companies, a 51% stake is often requested.
  • There are many sensitive issues such as technology transfer, so it is necessary to consult a local law firm.
Other notes
  • The project feasibility is reviewed through interviews with the private ordering company and government agencies during their visit to Korea.
  • Close discussion with the ordering party through the trade office when making a final decision
  • Cooperation with specialized consulting companies such as local law firms is required