2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08PART 1INTRODUCTION &HIGHLIGHTS by thechief executive officerOur ongoing internal restructuring and repositioning processes have produced positive outcomes for the Corporationin the year under review. This is a significant shift from the last financial year where we experienced a high number ofacting positions at executive management level which were a deterrent to effective internal leadership.We were mindful of the fact that if we are not properly organised internally and inadequately equipped to deal withthese challenges, we could not hope to positively shape the Eastern Cape’s economic landscape and to give effect to itsdevelopmental priorities. To counter these potentially destabilizing effects, ECDC began the process of implementing itsturnaround strategy which prioritized filling critical vacancies at senior management level and to have a fully functionalboard. We are proud to report that we have filled all these critical vacancies at executive management level togetherwith a fully functional board which is ably led by Professor Wiseman Nkuhlu.We have continued to deliver on our mandate to facilitate economic growth and to actively respond to the province’sdevelopment imperatives and we have recorded several successes in the year under review.1. The Investment Promotion unit has continued to attract foreign and domestic investment into the Eastern Cape.During the period under review, the unit facilitated the first farming of indigenous fish in sea cages in South Africa- beginning with the Irvin & Johnson (I&J) operation in Port Elizabeth. These cages have been stocked with kob andyellowtail.2. In consultation with DEDEA, the unit is actively facilitating cultivation of medicinal and aromatic plants bycommunities in the Stutterheim area, partnering with both the buyers, investors and commercial farmers.3. The Trade Promotion unit performed admirably, exceeding targets which facilitated over R46 million worth ofexports. The unit also led a trade mission to the renowned German Hanover Trade Fair where Straits Lighting andUitenhage-based automotives headlights manufacturer Hella wowed audiences with their “extremely energyefficientstreetlight.” A memorandum of understanding was signed between the two companies with a successfulEgyptian company involved in smart metering to work jointly on their products. A further 35 countries expressed a“serious” interest in purchasing this product.4. Prisma Engineering received a contract to supply the Maputo Port with equipment worth R1,4 million per annum.This has created 200 new jobs.5. The Enterprise Development unit has continued with its flagship Integrated Emerging Contractor DevelopmentModel which has successfully completed its pilot phase. The R5 million programme is the first of its kind in SouthAfrica and it aims to build capacity amongst emerging contractors. It has registered over 60 contractors this yearand the Construction Industry Development Board (CIDB) is in the process of formulating a national framework toregulate all construction development programmes including this one.6. The unit also recorded a 65% increase in the number of SMME interventions compared to the 2006/2007 financialyear.7. The Development Support Services unit identified 69 projects during the period under review, exceeding its targetof 64 planned projects. ECDC funding used for business-related studies and crop trials amounted to R6,6 million.Thirty-two projects were approved. We are encouraged by this trend as it indicates that more projects are beingreferred to the unit on the back of high demand for rural development initiatives.8. A business plan to test the feasibility of amalgamating three ECDC funded pilot projects into one new entity in thefirst phase and then commercialising the project in the second phase is underway. The Misty Mountains FlowerFarm will be combined with a fruit farm and a vegetable seed operation into an entity to be known as the SomersetEast Agri-Park and could employ up to 80 people, the majority in part-time jobs. Currently, the three projects employ15 people.9. The unit was also involved in a partnership in the Matolweni Irrigation Scheme, which created 40 jobs.10. The Property Management and Development unit has improved the integrity of the asset register. It has identifiedthe disposal of properties with no intrinsic value and has commenced the process of transfer of properties into thename of ECDC where such properties have intrinsic value.5