Frequently Asked Questions

A cluster is a set of businesses and related institutions that operate near one another. These businesses tend to be interconnected and focus on similar industries.

The cluster will be driven by a Cluster Management Company (CMC), set up as a not for profit company (NPC). The CMC will initially be sponsored and funded by the government.

Cluster Case Studies

The cluster case studies represent leading first world (e.g. Finland) and emerging market (e.g. India) cluster countries, as well as cluster sizes (e.g. Santa Rita) industry (viz, Ghana, China, India) and country-specific factors (e.g. SmartXchange, South Africa) that are comparable to a Metals Industrial Cluster.

Pune Cluster, Pune, Maharashtra, India

A mineral beneficiation/ mining cluster started in the 1950s and which has retained its focus on smaller enterprises (70 MSMEs). The Pune cluster was informally started in Pune, India, an emerging market cluster country.

The Shanghai Zhujing Industrial Park in China

The Shanghai Zhujing Industrial Park (Shanghai Zhujing IP) won approval in 2006 to be a municipal-level development zone from the Shanghai municipal government. This cluster is easily accessible, close to the capital city, airport, port, railway and state highway. It also benefits from the economic development of neighbouring towns.

Suame Cluster “Suame Magazine”, Kumasi, Ghana

The key growth point of this cluster was due to the decline in Ghana’s formal economy and tight restrictions on import which led to a down-turn for large enterprises and more opportunities for small enterprises. This cluster is now one of the biggest clusters in Africa, sustained primarily by formal and informal associations.

Santa Rita Cluster, Santa Rita do Sapucai, Mias Gerais, Brazil

A billion-dollar manufacturing cluster, established in a small rural town, with a current population less than Kimberley’s. Around 80% of its cluster member firms are small to very small businesses. The cluster has developed progressively over time, with strong government and entrepreneurial backing. Mineral Beneficiation Cluster Feasibility Study and Business Plan

The Forssa Cluster, Finland

A cluster notable for its mix of various manufacturing industries, its location – being Finland, a country with internationally leading cluster development, and for its rural setting, in a municipality with a population less than Upington’s.

SmartXchange, Durban, KwaZulu-Natal, South Africa

SmartXchange is a not-for-profit, public-private partnership initiative which has established itself as an extremely successful incubator. It has 66 companies with 322 employees and a combined annual turnover of R54 million.