Western Cape Business 2017 edition
The 2017 edition of Western Cape Business is the 10th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide to the Western Cape province. The Western Cape has numerous promising investment and business opportunities and this issue includes contributions from Alan Winde (Minister of Economic Opportunities for the Western Cape Government), interviews with Ryan Ravens (CEO of Accelerate Cape Town), Arifa Parkar (Western Cape Business Opportunities Forum CEO), Wesgro CEO Tim Harris and Lance Greyling (Invest Cape Town) as well as contributions from various business leaders. In addition, you will also find comprehensive features on all the key sectors in the Western Cape.
The 2017 edition of Western Cape Business is the 10th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide to the Western Cape province.
The Western Cape has numerous promising investment and business opportunities and this issue includes contributions from Alan Winde (Minister of Economic Opportunities for the Western Cape Government), interviews with Ryan Ravens (CEO of Accelerate Cape Town), Arifa Parkar (Western Cape Business Opportunities Forum CEO), Wesgro CEO Tim Harris and Lance Greyling (Invest Cape Town) as well as contributions from various business leaders. In addition, you will also find comprehensive features on all the key sectors in the Western Cape.
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
WESTERN CAPE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE WESTERN CAPE PROVINCE
2017 EDITION
JOIN US ONLINE
WWW.WESTERNCAPEBUSINESS.CO.ZA
New opportunities for
investors in the West Coast
New opportunities are emerging in specific sectors of the West Coast district. With the N7
being upgraded, the time it takes to travel from Malmesbury to Cape Town for instance
is less than from Paarl, Somerset West or Stellenbosch. Businesses can serve the Cape
Town market while enjoying lower operating costs, an excellent work ethic, lower crime and
reduced risk with excellent local government support. Developers are providing new industrial,
commercial and residential property.
Protein, dairy and other food producers are moving closer to their markets to reduce transportation
costs. They remain outside the metro boundaries, to gain cost advantages. Increasing
numbers of logistics firms recognise the strategic location. Vehicle and equipment suppliers are
growing as services sector.
The number of mines are increasing in Matzikama and a breakthrough with abalone production
holds huge promise for supplying a lucrative market. In Cederberg the dam wall is being
raised, meaning the bottleneck to agricultural growth is reduced. The Saldanha Industrial
Development Zone, which is located at the deep-water port, includes a unique package of
government incentives.
The complete region offers a large variety of world-class tourism attractions, leisure activities
and events. These include bouldering, hiking, kite surfing, surfing, skydiving, paragliding,
cycling, canoeing, birding, music festivals, arts, culture, heritage and of course the unrivalled
West Coast flowers. Country life at its best – topped off with local brews and great wine. A great
place to live, work and play.
Swartland Municipality
Lower cost structures, a productive workforce and less risk than the Cape Town
metro provide businessess here with a competitive advantage in their markets. Add
to this the benefits of a sophisticated city that is still close enough to leverage when
needed, while employees get to enjoy the best of both country life and the city.
Similar to growth patterns of towns on the outskirts of cities worldwide, both businesses
and citizens will increasingly view the Swartland as a good place to locate.
Investment growth is expected from sectors such as protein, dairy, agroprocessing,
transport, logistics, retail, services and construction sectors.
www.swartland.org.za
Bergrivier Municipality
Situated north of Saldanha Bay, the Bergriver region is particularly suited to
agriculture. Livestock, fruit, vegetables and flowers are farmed in the area and there
are opportunities in kelp farming and processing.
The large cement factory and smaller salt-reclamation works are indicators of
business development opportunities related to mining.
www.bergmun.org.za
MATZIKAMA
Vredendal
BERGRIVIER
Vredenberg
Piketberg
SALDANHA
BAY
Moorreesburg
SWARTLAND
Clanwilliam
CEDERBERG
Langeberg
Cederberg Municipality
Blessed by nature, rich in
heritage and warm-hearted
people, this a great place
for tourism all year round.
Cederberg boasts a beautiful and varying landscape
that includes mountains, valleys and coastline with a
multitude of attractions and activities.
The area is rich in flowers and fynbos, including
Rooibos, which makes this the heart of the international
Rooibos tea industry. The Clanwilliam dam
wall is being raised, which will soon provide more
water. Unutilised fertile lands can then be irrigated
to produce high yields to boost agricultural output.
www.cederbergmunicipality.co.za
Matzikama Municipality
Approximately 240km north of
Cape Town, the Matzikama region
has abundant water and fertile soil
and therefore a thriving vegetable,
fruit and wine farming economy.
Investors visiting the region will
find opportunities in aquaculture
(especially abalone), fishing, mining, manufacturing,
agriculture and property development.
www.matzikamamun.co.za
Saldanha Bay Municipality
Saldanha Bay Municipality is a local municipality located on the West Coast of
South Africa, in the Western Cape Province. It is approximately 140km north of
Cape Town and forms part of the West Coast District Municipality. The Municipality
is bordered on the west by the Atlantic Ocean, in the north by the Bergivier
Municipality and in the east by the Swartland Municipality.
Saldanha Bay Municipality covers an area of 2 015km 2 and has 238km of coastline.
The head office is located in Vredenburg with satellite offices in Hopefield, St Helena Bay, Paternoster,
Saldanha and Langebaan.
Saldanha Bay has the largest natural port in Africa and the area is earmarked for regional development
of the Western Cape Province.
www.saldanhabay.co.za
If you have your eye on growth,
you should invest on the West Coast!
Find out more at www.westcoastdm.co.za
Besides being the voice of business in the region, when you belong to the
Chamber, you become part of an esteemed network that is geared to
promote your success.
As a member, you enjoy a substantial number of benefits, as well as
receiving expert support for a wide range of issues. Our services include
business advice, extensive networking opportunities, seminars & events,
training at all levels, international trade support and more.
Join now - it’s Where Opportunity Meets.
Where Opportunity Meets
4th floor, 33 Martin Hammerschlag Way, Foreshore, Cape Town
Tel: +27 21 402 4300 | Fax: +27 21 402 4302
info@capechamber.co.za | capechamber.co.za
Facebook: CapeChamberOfCommerce | Twitter: @Cape_Chamber
CONTENTS
CONTENTS
Western Cape Business 2017 Edition
Introduction
Foreword 9
Western Cape Business is a unique guide to business,
investment and tourism in the Western Cape.
Growth strategy is paying off 10
Alan Winde, Western Cape Provincial Minister of Economic
Opportunities, explains how Project Khulisa will impact
the province.
Special features
Regional overview 12
Tourism and technology are boosting the Western Cape
economy and Brexit offers new opportunities for investors.
Down-town boom town, Cape Town 28
A number of high-visibility construction projects are under
development in the Cape Town CBD and surrounds.
South African economy at a glance 42
Insight into the performance of the South African economy
is provided through these graphical representations of key
statistics.
WESTERN CAPE BUSINESS 2017
6
CONTENTS
Special Economic Zones 56
Dedicated development hubs on the West Coast are tapping
into the potential of two of the fastest-growing economic
sectors in Southern Africa – oil and gas and manufacturing for
the renewable energy sector.
Skills development 60
A number of investors are driving skills development in the
province.
Economic sectors
Agriculture 72
Processing plants boost rural employment.
Wine and grapes 76
China is importing the fruits of the Western Cape’s vineyards.
Fishing 83
More fish, fewer chips following the sale of Lamberts
Bay Foods.
Mining 86
The sands of the West Coast are giving up their riches.
Oil and gas 88
The Western Cape Government is hoping to exploit
opportunities related to the gas sector.
Energy 92
Manufacturing in the renewable energy sector is
taking off in Atlantis.
Water 94
Farms and factories are becoming water wise.
Manufacturing 98
Diesel locomotive engines are powering up in Montague
Gardens.
Construction and property development 104
Construction is on the rise in the Western Cape.
WESTERN CAPE BUSINESS 2017
8
UIF SAVING JOBS
THROUGH SOCIALLY
RESPONSIBLE INVESTMENTS
The National Development Plan is a blueprint serving as
a guideline to government departments and state entities
on how they can play a role in government wide efforts
of creating decent work, reducing unemployment and
poverty. The Unemployment Insurance Fund is among
the leading state entities in the implementation of the
provisions of the NDP to address the slow economic
growth, unemployment and poverty in South Africa.
The UIF social investment mandate ensures that,
additional to earning good financial returns, investments
must be supportive of long term economic, social and
adhere to sustainable environmental outcomes. The
investments must also yield a good social return for the
country. These investments have sustained 6 860 jobs of
which 3 024 are permanent, 3 836 are temporary/seasonal
and 195 are new jobs created during the financial year
ending in March 2016.
UIF INVESTMENTS IN RENEWABLE ENERGY
The UIF investments are contributing to the energy
requirements of South Africa and the investments in the
renewable energy sector provides a total capacity of 192
megawatt of electricity of which 117 megawatt is solar
energy and 27 megawatt is wind generated electricity.
The De Aar project is a shining example of the UIF energy
investments and this project produces 90 megawatt of
electricity and was completed in April 2016. The solar plant
in the area generates enough electricity to power 15 000
houses. Another mainstay project is the Phakwe Group ran
projects undertaken in the Northern and Eastern Cape.
INVESTMENT IN FOOD SECURITY
The UIF investments in this regard are undertaken under
the banner of the UIF Agri-Fund in partnership with
Futuregrowth and Day Breaker Poultry Project. The UIF
Agri-Fund has invested in 4 farms situated in Mable Hall
in Limpopo. One of the farms is a cash crop farm spanning
450 hectares. The farm in the last financial year produced
235 hectares of white maize, and cotton was planted in an
area covering 28 hectares.
A further three farms are located in the Saron area in the
Western Cape. In this project a total of 178 hectares has
been used to plant grapes, 37 hectares has been used to
pant citrus fruit. Furthermore, there is potential to plant an
additional 92 hectares of grapes. The Daybreaker Poultry
project operates in Gauteng, Limpopo and Mpumalanga
and the combined projects have facilities to grow 1.6
million broiler chickens.
INVESTMENTS IN HEALTH CARE FACILITIES
The UIF concluded two investments in this regard that
include a BEE hospital manager, Busamed to build a
private hospital in Modderfontein and Fund Manager
Razorite Heatlhcare that focus on the provision of
affordable heathcare facilities that include rehabilitation
and sub-acute centres.
The Modderfontein hospital is a 220 hospital bed with subacute
facilities. This hospital is under construction. While
the RH Fund Manager has concluded seven investments
that include:
• Busamed with four hospital facilities
• HealthMed with two facilities
INVESTMENTS IN EDUCATION
UIF has invested in three investments that play a role
to unlock access to education. The investments were
concluded with Eduloan – an organisation that provides
financial support to tertiary students and South Point and
Educor organisations that provide student accommodation.
By March 2016, Eduloan had disbursed about R446 986.64
benefiting 34 047 students, whiles South Point provided
about 10 000 student with accommodation.
UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT
The UIF has concluded two investments with the aim of
supporting small and medium enterprises. In this regard
the PIC on behalf of UIF has concluded investment deals
with Musa Capital and TOSACO.
The investments will support more than 250 SMMEs across
various sectors inclusive of agriculture and affordable
housing. Musa Capital for example has a supply chain of
over 250 SMME’s that have facilitated the creation of 2 500
jobs.
TOSACO investments is planning to advance capital to
young black entrepreneurs who aspire to own and manage
Total Filling stations around the country.
For more information:
Call: 0800 843 843 or
visit: www.labour.gov.za
Brandvlei
Britstown
Garies
De Aar
Kliprand
R 27
Loeriesfontein
Carnarvon
N10
R 63
N12
Hanover
N7
R63
R63
Nieuwoudtville
Victoria West
R 63 Williston
N1
Loxton
Richmond
R 27
R27
Calvinia
R27 Vanrhynsdorp
R63
Vredendal
R27
Fraserburg
Three
Sisters
R 63
Graaff-Reinet
Lambert's Bay
Clanwilliam
Beaufort West
Aberdeen
R27
Sutherland
Cederberg
R 61
N12
N9
St Helena Bay
Citrusdal
Prince
Velddrif
Leeu-Gamka
Paternoster
Albert N1
Vredenburg Piketberg
Road
R44
R79
Saldanha
R45
N7
Klipplaat
Saldanha Bay
Moorreesburg
LangebaanR27
R45
R 44Tulbagh
Laingsburg
Prince Albert
Willowmore
Riebeek West
Matjiesfontein
R 46
Darling
Ceres Touwsrivier
Dassen Island
Calitzdorp
R62
N1
Ladismith
R43
Malmesbury
De Rust
R44
Uniondale
R45
Oudtshoorn
R 62
Paarl
R62
N12
Melkbosstrand
Rawsonville Montagu
Joubertina
N9
R60
Robben Island (World Heritage Site)
R43
Table Bay
Franschhoek Robertson Ashton R62 Barrydale
Kareedouw
Durbanville
George SedgefieldKnysna
N2
Villiersdorp Swellendam
Stormsrivier
Stellenbosch
Riversdale
Somerset
Genadendal
Herolds
Plettenberg
Fish Hoek West Grabouw
Heidelberg
Bay
Bay
N2 Riviersonderend
N2 Mossel Bay
Cape St Francis
Gordon's Bay
Vleesbaai
Simon's Town
Caledon
Motorway
False R44
Cape Bay Kleinmond Hermanus
Stillbaai
Main Road
Point
Bredasdorp Cape St Sebastian
R 43
Infanta
Railway
Walker Bay
Bay
0
100 km
Gansbaai
Arniston
Struisbaai
0 100 miles
Struisbaai
Quoin Point
Cape
Agulhas
Groen
CONTENTS
Tourism 106
New flights are bringing greater numbers of tourists to the
Western Cape.
Banking and financial services 110
The JSE has opened an Exchange Hub in Cape Town.
Information and communications technology 118
Cape Town is attracting ICT investment.
Business process outsourcing 119
Offshoring – foreign BPO contracts – is growing.
Government
South African National Government 120
An overview of South Africa’s national
government departments.
Western Cape Provincial Government 124
An overview of the Western Capes Provincial
Government departments.
Western Cape Local Government 126
An overview of the Western Cape municipalities.
Reference
Sector contents 68
Index 128
Maps
Western Cape locator map. 17
Western Cape provincial map. 125
Western Cape municipal map. 127
WESTERN CAPE PROVINCE
ATLANTIC OCEAN
N
CAPE TOWN
Sout
Wellington Worcester
Tankwa
Fish
Breede
Sak
Northern Cape
Riet
Western Cape
Touws
Bu fels
Dwyka
Groot
Gourits
Gamka
Leeuw
Olifants
Groen
Sout
Sout
Kariega
Ongers
Eastern Cape
Kouga
Groot
INDIAN OCEAN
Seekoei
Sundays
WESTERN CAPE BUSINESS 2017 10
CREDITS
Publisher: Chris Whales
Publishing director:
Robert Arendse
Editor: Simon Lewis
Writing: John Young and
Karen Kühlcke
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Colin Carter
Production: Lizel Olivier
Ad sales: Sam Oliver, Gabriel
Venter, Jeremy Petersen, Nigel
Williams and Sydwell Adonis
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution and circulation:
Edward MacDonald
Printing: FA Print
Cover photo courtesy
of Rodger Bosch
www.rodgerbosch.co.za
Western Cape Business
A unique guide to business and investment
in the Western Cape.
The 2017 edition of Western Cape Business is the 10th issue
of this highly successful publication that, since its launch
in 2005, has established itself as the premier business and
investment guide to the Western Cape province.
The Western Cape has numerous promising investment and business
opportunities and this issue includes contributions from Alan Winde
(Minister of Economic Opportunities for the Western Cape Government),
interviews with Ryan Ravens (CEO of Accelerate Cape Town), Arifa Parkar
(Western Cape Business Opportunities Forum CEO), Wesgro CEO Tim
Harris and Lance Greyling (Invest Cape Town) as well as contributions from
various business leaders. In addition, you will also find comprehensive
features on all the key sectors in the Western Cape.
To complement the extensive local, national and international distribution
of the print edition of the magazine, the full content can also be
viewed online at www.westerncapebusiness.co.za. Updated information
on the Western Cape is also available through our monthly e-newsletter,
which you can subscribe to online at www.gan.co.za, in addition to our
complementary business-to-business titles that cover all nine provinces
as well as our flagship South African Business title.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
CREDITS
DISTRIBUTION
Western Cape Business is distributed internationally on outgoing
and incoming trade missions, through trade and investment
agencies; at top national and international events; through
the offices of foreign representatives in South Africa; as well as
nationally and regionally via chambers of commerce, tourism
offices, airport lounges, provincial government departments,
municipalities and companies.
COPYRIGHT | Western Cape Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to
the publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Pictures supplied by Anglo American, flickr.com,
Transnet National Ports Authority, Sasol, World Bank Images, City of Cape
Town, Wikimedia Commons, Pixabay, Accelerate, Northlink College, IRC
Wash, Aquacor, South African Tourism, Wikimedia, gewainer@flickr.com,
mycapetown.co.za, Railways Africa, pascalparentphotos, Pinterest, and FWJK.
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1816-370X
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in Western Cape Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.
11
WESTERN CAPE BUSINESS 2017
MESSAGE
Growth strategy is paying off
Alan Winde, Western Cape Provincial Minister of Economic Opportunities,
explains how Project Khulisa will impact the province.
Alan Winde, Western Cape
Provincial Minister of
Economic Opportunities
In the Western Cape, we have
taken a focused approach to
job creation and growth.
To achieve this objective
we have put in place our Project
Khulisa growth strategy, which
focuses on a set of high-potential
sectors, namely tourism, agriprocessing
and oil and gas.
In each of these areas, we worked with the private sector to develop
tailored action plans to drive growth.
I am happy to report that we are making significant progress.
Tourism employs 204 000 people, and under Project Khulisa we
have set ourselves the goal of adding up to a further 100 000 jobs
to the sector. Through Project Khulisa we are focusing on driving an
increase in leisure and business tourism.
The Cape Town International Convention Centre (CTICC) continues
to deliver a significant contribution to economic growth. That is why
we are doubling the CTICC’s capacity. We’ve also seen a R1-billion
private investment into the Century City Conference Centre and Hotel.
The Aquarium added a conference facility when it upgraded and
many hotels are doing the same. A large number of hotels are being
developed, partly in response to increased conference numbers, but
also in response to general good growth figures in this space.
We know that conference delegates have a higher spend than
leisure tourists, and that they often return for a holiday with their
families. From here, they could purchase property in the region, or
decide to open a business here.
It is all interlinked. On the leisure front, we are driving an events
strategy to pull tourists to our smaller gem towns. From our investment
in seeding events, we have helped drive 150 000 tourists to travel in the
region, generating an economic impact of R240-million. Very shortly
we’ll be embarking on a project to define the competitive identity of
our region, creating a compelling story about who we are, what we
have to offer, and why we should be at the top of travellers’ bucket lists.
We’ll take the outcome of this process to market in 2017.
We are continuing with our plans to position the province as the
trail capital of Africa. This year we launched the first part of our cycle
track, which will eventually stretch from Plettenberg Bay to Cape Town.
The first 5km of the cycle route consists of bespoke-designed single
track on a section of land between Knysna and Sedgefield.
This track will become the backbone of a trail system driving
business to farms and communities all along our southern coastline.
We will also focus on culture and heritage tourism, food and wine
tourism, and our growing events economy.
In agri-processing, we are seeking to grow the size of the sector
and add up to 100 000 jobs.
Our plan to boost the sector includes efforts to increase halal
and wine exports, and to create an enabling environment for all
WESTERN CAPE BUSINESS 2017
12
MESSAGE
agri-processed products to flourish. We have made headway, together
with our partners, in our drive to increase water storage in the Brandvlei
Dam, and we have commissioned the equipment we require for our
residue-testing facility. All of the initiatives under Project Khulisa are
designed to open international markets for our produce, and I am
pleased with the progress we have achieved thus far.
Oil and gas also presents a significant opportunity to grow our
economy. It is our goal to add up to a further 60 000 jobs to this sector,
and increase its economic contribution to R3-billion.
One of our flagship initiatives in driving growth in the oil and gas
sector is the Saldanha Bay Industrial Development Zone along the West
Coast, which is being managed
by the Saldanha Bay Industrial
Development Zone Licencing
Company.
We’re seeing a good flow of
vessels along our coast and in
the pipeline is a major project
to recertify vessels here. The
lease between the Saldanha
Bay Industrial Development
Zone Licencing Company and
the Transnet National Ports
Authority (TNPA) is in place, and
we expect to start construction
next year. TNPA will also be asking
for a formal proposal from
an international consortium
to develop the 500m terminal
at Mossgas.
There’s been an overwhelmingly
positive investor response.
At the time of going to print, the
Licencing Company already has
Memorandums of Understanding
non-disclosure agreements and
rights of first refusal in place
with 36 companies, and building
plans have been submitted for
three firms.
They’re getting ready to start
construction as soon as the
necessary approvals have been
obtained.
Along with a focus on these
priority sectors, we have identified
strategic economic enablers.
These include securing an
affordable and reliable energy
supply and reducing red tape.
Through a focussed approach,
we are moving closer
towards reaching our goals,
and I am confident through our
partnerships, we will continue
to grow our economy, Better
Together.
13
WESTERN CAPE BUSINESS 2017
A REGIONAL OVERVIEW OF THE
WESTERN CAPE
PROVINCE
Tourism and technology are boosting the
Western Cape economy and Brexit offers
new opportunities for exporters.
The Western Cape straddles the west and
south-eastern coastlines of South Africa.
The province’s southernmost point is
Agulhas, which is also the southern tip of
Africa where the Atlantic and Indian oceans meet.
Trade with Europe (including Britain) has long
been the mainstay of the Western Cape’s export
income. The top three destinations in 2013 (the
Netherlands, the UK and Germany) combined to
import R17.2-billion worth of Western Cape goods.
The European Union (EU) signed an Economic
Partnership Agreement with the Southern African
Development Community (SADC) in June 2016
that included some very good news for the
Western Cape. For example, dairy products would
attract no duty, a range of geographic indicators
(including Karoo lamb and rooibos) were accepted,
SPECIAL FEATURE
and the amount of wine that could be exported was
increased from 50-million litres to 100-million litres.
Thirteen days later Britain voted to leave the EU.
This means that at least two new treaties have to be
signed: a SADC-EU treaty that excludes the UK from
the provisions and a new SADC-UK treaty. This could
present new opportunities for all parties but it does
mean that the landscape will be somewhat different.
The Western Cape stretches to the north along the
Atlantic Ocean about 400km from the provincial capital,
Cape Town. The Port of Saldanha Bay lies along this
coast; it is intended to become a hub for the maritime
repair and oil and gas industries. The eastern boundary
is defined by the Bloukrans River, which means
that tourism hotspot Plettenberg Bay falls within the
Western Cape. Beaufort West on the N1 highway is
the biggest town in the north-eastern section of the
province.
The province is well served with infrastructure
such as the N1 and N2 highways, and the N7 which
services the West Coast. Three ports at Saldanha Bay,
Cape Town and Mossel Bay serve different markets.
The Port of Cape Town has recently opened a Cruise
Terminal and a large new fuel storage terminal is being
constructed in the port.
Cape Town International Airport and George
Airport see to air travel needs. Cape Town also hosts
an oil refinery (Chevref) and a gas-to-liquids refinery
at Mossel Bay, which is run by the national oil
company, PetroSA.
Koeberg nuclear power station is South Africa’s
only such power station and there are a further three
open-cycle gas turbines and a pumped-water-storage
scheme. Wind and solar power are being installed
rapidly across the province as South Africa tries to end
its dependency on fossil fuels.
The population of the Western Cape is also well
served by educational institutions including the
University of Cape Town, the University of Stellenbosch,
the University of the Western Cape and the Cape
Peninsula University of Technology. Cape Town has
three Technical and Vocational Education and Training
(TVET) colleges and there are a further three for the
Boland, the Southern Cape and the West Coast, all
with multiple campuses.
The Cape Town International Convention Centre
is the province’s leading facility in the events and
conference field, and it is undergoing an extension
that will lead to its doubling in size. The extension
is due to open in 2017. Many hotels have conference
facilities and a large number of new hotels are being
built, particularly in and around Cape Town.
The national parliament is located in Cape Town
and there is a separate provincial legislature. The
Western Cape is unique among South Africa’s nine
provinces in that the Democratic Alliance (DA) runs the
province. The African National Congress is the majority
party in the national parliament and it controls the
other eight provinces.
The DA also governs most of the provincial municipalities
in the province, including the metropolitan
municipality of Cape Town. There are five district
municipalities, which are further divided into 24
local municipalities.
In 2015, the population of the Western Cape was
estimated to be 6.2-million. The official languages of
the province are Afrikaans, English and Xhosa.
The province has diverse climatic conditions and
geographical features. The north-west coastal strip
is dry but the valleys inland from the coast support
intensive citrus and grape cultivation. The Garden
Route regions of the Southern Cape are heavily
WESTERN CAPE BUSINESS 2017 16
SPECIAL FEATURE
forested. In between there are the rugged mountains
of the Cederberg, the wheat and barley fields
and winelands of the Boland and the Overberg, the
fruit-producing valleys of the Klein Karoo and the dry
plains of the Great Karoo. The province and the region
are most commonly associated with Table Mountain,
which watches over the city of Cape Town and forms
a national park of its own.
The Western Cape has the natural advantage of
access to the warm Agulhas current along the south
coast and the cold Benguela current up the west
coast, offering opportunities for a wide variety of
aquaculture and mariculture products to be farmed
along the province’s coastline.
Economy
Finance, business services and real estate combined
contribute 28% to the gross domestic product (GDP)
of the Western Cape. The financial services and insurance
sector in particular has been a key component
of the economy for many years, with many of South
Africa’s biggest companies having their headquarters
in Cape Town. Asset management and venture
capital companies have been growing strongly in
recent times.
Agriculture is another important sector. Although
only accounting for 4.3% of GDP on its own, the
sector is responsible for the fruit and vegetables
that contribute to agri-processing, which accounts
for nearly 40% of the province’s export basket. (Agriprocessing
accounts for 8.1% of GDP.) Citrus, wine,
apples and pears, grapes, fruit juice, fruit and nuts
and tobacco all appear in the top 10 of the province’s
exports. Seventy percent of South Africa’s beverage
exports came from the Western Cape over the last
decade. Grape and wine sales to Europe remain
very strong but the Chinese market is becoming
increasingly important.
Refined petroleum was the single biggest earner
for the Western Cape in 2015, with exports valued
at R18.2-billion (Wesgro).
The province has a diverse manufacturing sector
ranging from textiles, clothing, footwear and
furniture to coke and refined petroleum products.
Excluding agri-processing, other manufacturing
makes up 6.9% of GDP. Several significant foreign
investments have been received into the Western
Cape in recent years: Hisense, GlaxoSmithKline and
Kimberley-Clark, among others.
Sector growth
The Provincial Government of the Western Cape is
putting multiple resources into Project Khulisa, a
plan to promote growth in three sectors that will
also create new jobs: Oil and Gas, Agri-processing
and Tourism.
Other sectors that are also expected to grow
quickly are:
• ICT: Cape Town is already a knowledge hub with
banks supporting fintech hubs and several firms
making high-tech medical equipment. The City
of Cape Town has an ICT strategy and the Silicon
Cape Initiative is doing all it can to keep the momentum
going in this field.
• Film: The skyline near Somerset West has been
notable for the rigging of two huge sailing ships
17 WESTERN CAPE BUSINESS 2017
SPECIAL FEATURE
punctuating it for many months: this is the Cape
Town Film Studios, which hosted the Black Sails
production team. More than 19 000 filming permits
were issued by the City of Cape Town between
2014 and October 2016. Universal Studios
and Disney have a presence in Cape Town. The
city of George is another important hub for the
film industry.
• Business Process Outsourcing (BPO): Amazon
and Asda are just two big international companies
that have call centres in Cape Town. Many
more have signed up for similar services, and
many more are expected. The national BPO association
says that 5 000 jobs were created in
South Africa in 2015, and it expects this to accelerate
in 2017.
• Green economy: Atlantis is being promoted as
a green economy manufacturing hub. The renewable
energy sector is growing very fast and
opportunities are opening in many fields; biogas
and use of waste are areas of huge potential. The
Western Cape Industrial Symbiosis Programme,
or WISP, has achieved some major milestones
in diverting organic waste and saving in greenhouse
fossil gases. WISP is a GreenCape initiative.
Each of the sectors listed above could be categorised
as “tech” industries. Another one that could fall
in this category is “design”. The Western Cape wants
to lead in innovation.
Renewable energy, the green economy, energy
efficiency – all of these related concepts, once just
a fuzzy dream, have become the bedrock of future
business plans.
Green buildings are becoming much more than
a “nice-to-have”. A planned residential development
in Somerset West, the Blue Rock Village with 1 000
flats, will be powered by solar power and have water
and energy management systems. The Hotel Verde
at Cape Town International Airport claims to be
carbon neutral and has a six-star rating from the
Green Building Council of South Africa.
Small, medium and micro enterprises are said
to create jobs faster than large concerns. To bolster
the SMME sector, the Industrial Development
Corporation is supporting the Philippi Village
Container Walk, an initiative of The Business Place
and Bertha Foundation initiative. A total of 127 containers
house entrepreneurs of every sort from shoe
shops, barbers and construction material retailers to
accountants, NGOs and a LEAP Science and Maths
School training centre.
The annual Premier’s Entrepreneurship
Recognition Awards (PERA) has received more than
1 000 entries since 2013. Some of the categories in
WESTERN CAPE BUSINESS 2017 18
SPECIAL FEATURE
2016 were for job creation (Doring Bay Abalone was
the winner), innovation (Praelexis, a data company)
and emerging rural business (Anja’s Pantry from
Vredenburg).
West Coast District Municipality
Towns: Saldanha Bay, Malmesbury, Clanwilliam,
Vredenburg, Moorreesburg.
The economy of this region ranges from manufacturing
in Saldanha, Atlantis and Malmesbury to
agriculture and forestry centred on inland towns
like Moorreesburg (wheat) and Cederberg (forestry)
and Citrusdal. Cement is made in Riebeek West and
Piketberg and fishing takes place all along the coast.
Rooibos tea and shoes are made in Clanwilliam. The
remote mission station of Wupperthal is famous for
its veldskoens. The Port of Saldanha Bay is the principal
port for the export of iron ore and is gearing
itself to service the continent’s oil and gas industry
and to be a steel manufacturing hub. Mineral sands
are mined north of Saldanha.
Cape Winelands District Municipality
Towns: Stellenbosch, Paarl, Worcester, Robertson,
Wellington, Franschhoek.
Nearly 70% of South Africa’s wine comes from this
area. Vineyards also attract many tourists but tourism
in the Winelands includes wellness spas, adventure
tourism and game farms. Manufacturing is concentrated
on processing grapes and fruit into wine, juice,
brandy, dried and tinned fruit products. Dairy manufacturer
Parmalat has an award-winning cheesemaking
facility in Bonnievale. Robertson is known
for roses and thoroughbred horses. Stellenbosch
is home to its eponymous university and houses
the headquarters of several large companies, such
as PSG Group.
Overberg District Municipality
Towns: Caledon, Bredasdorp, Hermanus,
Swellendam, Cape Agulhas.
The Overberg contains the southernmost tip of
Africa (Cape Agulhas), the oldest mission station in
South Africa (Genadendal), a large casino resort (in
Caledon) and some of the best whale viewing in the
world (Whale Coast). It also hosts some high-quality
fruit farms in the Ceres Valley and rural villages that
NAMIBIA
Northern Cape
Northern Cape
WESTERN
CAPE
BOTSWANA
North West
Free State
Eastern Cape
Limpopo
ZIMBABWE
Mpumalanga
Gauteng
SWAZI-
LAND
LESOTHO
KwaZulu-
Natal
are popular with tourists, such as Barrydale and
Greyton. Agriculture is the principal economic activity
of the region and the services sector is strong.
Eden District Municipality
Towns: George, Oudtshoorn, Calitzdorp, Knysna,
Mossel Bay, Plettenberg Bay.
The area has two important tourist components:
the Cape Garden Route on the coast and the Klein
Karoo between the mountain ranges. Route 62 is a
popular route that ends (or starts) in Oudtshoorn,
home of the Cango Caves. A report by the Bureau for
Economic Research (Stellenbosch University) found
that Eden District is one of the best-performing
regions because of tourism. Mossel Bay hosts the
country’s main gas-processing plant while George
is a node of manufacturing, trade, tourism and administration.
The Klein Karoo has its own wine route
and port, cheese and brandy are produced. Fruit,
vegetables and ostriches are other main products.
Central Karoo District Municipality
Towns: Beaufort West, Laingsburg, Prince Albert.
The largest district in the province has the smallest
population, a reflection of the semi-desert conditions.
Sheep farming predominates. Beaufort West
is strategically positioned on the N1 highway, which
links Cape Town with the interior of South Africa. It is
nearby the Karoo National Park and not far from Prince
Albert, a quaint town situated in the shadow of the
Swartberg Mountain. Prince Albert is a popular tourist
destination and is close to the dramatic portals that
link the Karoo to the Klein Karoo: Seweweekspoort,
the Swartberg Pass and Meiringspoort.
MOZAMBIQUE
19 WESTERN CAPE BUSINESS 2017
INTERVIEW
R2-billion of investment
into the Western Cape
Tim Harris, CEO of Wesgro, reviews a successful year for
business and investment in the Western Cape.
Wesgro CEO Tim Harris
BIOGRAPHY
Tim Harris is Chief Executive Officer
of Wesgro, the Western Cape’s official
Destination Marketing, Investment and
Trade Promotion Agency. Wesgro is
more than 30 years old and remains
the oldest organisation of its kind in
the country. Prior to that appointment
he was the Director of Trade and
Investment in the Office of the Executive
Mayor at the City of Cape Town and
the Shadow Minister of Finance with
Democratic Alliance in parliament.
He was elected to Parliament aged
29. Harris has a Masters in Economics
from UCT.
Please could you give an overview of Wesgro’s activities
over the year?
In a difficult economic climate, Wesgro has performed very strongly
over the past year.
Our work always begins with economic insight and the Wesgro
research team has helped deliver a much deeper understanding of
economic opportunities in the Western Cape, publishing 115 research
pieces over the past year. For example, there has been huge interest
in markets such as Angola, and our report on food and beverage opportunities
in Anglo was downloaded more than 1 500 times. So the
research team continues to give us the hard numbers we need to make
the case for business in the Western Cape.
The new Wesgro website (www.wesgro.co.za) was launched late
in 2016 with a much more interactive approach to data and business
intelligence. It will enable business in the Western Cape to be more
informed and able to realise opportunities quickly because of the work
that our economists are doing. We developed online dashboards for
Tourism and for Air Access, both of which are part of the Province’s
Project Khulisa initiative.
On the trade side, we were helped by the weakening of the rand,
and we trained more than 500 companies in export readiness, helping
them to build their capacity to export. We also took hundreds of companies
to market to help grow their global sales. For the first time this
year we really engaged with the new mandate that the Minister gave us
to help drive outward investments into the rest of Africa, so we are now
also helping Western Cape companies to establish operations in Africa.
On the investment side, we surpassed the R2-billion mark in terms of
investment landed in the Western Cape. Our biggest investment was a
R1.189-billion renewable energy project from Spanish-based Acciona in
the rural area of Gouda, which we worked on with GreenCape.
Overall, the investment we facilitated created 681 jobs, and
the agri-team in particular landed three deals including an abalone-farming
facility in Doringbaai and the world’s first commercial
fly farm in Philippi, so there was a strong performance
WESTERN CAPE BUSINESS 2017
20
INTERVIEW
from the investment team despite obvious
challenges in the global and local economy.
On the destination marketing side, the
Convention Bureau helped bring almost 28 000
new delegates to the Western Cape in the past year,
with the economic impact of R374-million from the
bids they landed for events in Cape Town. On the
Leisure Marketing side, we supported 48 events
around the province, helping to give people reasons
to travel out of Cape Town into the outlying regions,
particularly during the winter season.
The film team continues to position the Western
Cape as one of the top film destinations in the developing
world. They assisted 188 film and media
companies and conducted four events focused on
opportunities in the film sector.
“WE HELPED TO RAISE
SOUTH AFRICA’S GROWTH
RATE AND REDUCE
UNEMPLOYMENT”.
Air Access is a collaborative project that Wesgro
coordinated between key government organisations,
including the Western Cape Provincial
Government, City of Cape Town, Cape Town Tourism
and Airports Company South Africa. We’ve added
over 53 800 new two-way seats on a variety of flights
from regions all around the world, and are achieving
the objective of connecting Cape Town to Africa
and the world in a very practical way. Establishing
these flight connections is a great way of driving
trade, investment and tourism.
The relative performance of the Western Cape
continues to be impressive – we helped to raise
South Africa’s growth rate and reduce South Africa’s
unemployment rate. We’ve had 147 000 people net
moving into the Cape in the past decade according
to StatsSA, and almost half of those have come
from Gauteng, so South Africans are voting with
their feet for the Western Cape economy, bringing
skills, capital and experience. Entrepreneurs from all
backgrounds and from all race groups are seeing
opportunities to grow in the Western Cape.
What is the expected effect of Brexit on
business in the region?
Brexit is a risk but also an opportunity. The UK is
an important trading partner for us and they are
also one of the largest investors in the Western
Cape over the past decade (measured by number
of projects).
The uncertainty around the trading arrangements
with Britain is not a good thing, as uncertainty
is a disincentive for business. We’ve had several
engagements with the Consulate General and also
our largest agri-exporters who are very exposed to
the British market, to give them a view of what the
roadmap is for Brexit but also to focus on the opportunity
it might present. Right now our trade with
Britain is governed by EU trading arrangements, and
there exists the distinct possibility that we may be
able to negotiate more favourable terms when and
if Britain exits from the EU arrangement.
What impact will the Special Economic
Zones have?
The plan is to have two zones, with oil and gas services
at the Saldanha Bay IDZ, and clean technology
around Atlantis, which GreenCape is putting
together. What this shows is that Cape Town is being
defined as a leading global energy city. One of the
interesting results of the decline in the oil price is
that it’s forced many cities like Cape Town to look
at where the skills that were involved in the oil industry
can be deployed, and we found that many
of those technical skills are quite transferrable into
new energy like renewables and clean technologies
So there’s a synergy between those two , old
energy and renewables or new energy. Recently,
the Mayor invited the leading energy cities from
around the world to Cape Town and when we met
with them it became clear that Cape Town is really
special in terms of the broad package of energy opportunities
and most importantly skills to activate
those opportunities. I think when we look back in
a decade you will see Cape Town emerge as a real
energy capital for Africa.
21 WESTERN CAPE BUSINESS 2017
FOCUS
More than the voice
of business
The Cape Chamber is “where opportunity meets”.
Although we have never been as technologically connected
as we are today, the harsh reality is that we have never been
as disconnected socially as we are now, in spite of the prevalence
and growth of social media. The Cape Chamber offers
access to an established network where legitimate businesses can meet,
engage and grow. It is a dynamic and safe space for lowering risk, being
heard and finding opportunity.
We have been challenged with a macro economy that is showing
no sign of creating a buoyant platform for profitable business. However,
no matter what the prevailing climate is for business, there will always
be opportunity for those who seek it out and rise to the challenge.
If we used the rest of the country as a comparison, the Western
Cape’s economic performance is above the average. In addition, this
is a great place to live, work and play with Cape Town being a clean,
orderly and beautiful city that attracts innovative and dynamic individuals
who in turn infuse creativity and growth into the region. There are
many spin-offs to this, such as our substantially lower unemployment
rate (when compared to the average for South Africa). We also attract
considerable foreign direct investment, for example more than R200-
million invested by Kimberly Clarke, R260-million by Hisense and nearly
R1-billion by Amazon in BPO and tech projects.
Although the Cape Chamber, which is the oldest membership-based
organisation in Africa, will turn 213 years in 2017, it is not business as
usual. We have, as an organisation, embraced innovation to the extent
that it is in our very DNA. The result is a substantial member base who
advocate strongly for what the Chamber does and stands for.
We are considered the voice of business in the region. Our ability
to lobby is underpinned by our status of being fiercely independent.
We are not affiliated to any political party, and we are not beholden to
any single organisation. We monitor proposed legislation that could
impact business in the region, and where necessary, submit evidence
to the relevant Parliamentary Standing Committee or other authorities
in the interests of our members. We stand up and say what needs to be
said – we are heard and people in authority often heed what we say.
The Chamber is intimately connected with specialised sectors in the
economy through our Portfolio Committees that focus on agribusiness,
digital, economic development, HR, industrial focus, international trade
Cape Chamber President
Janine Myburgh
Cape Chamber Executive
Director Sid Peimer
and tourism, small business development
and transport. We have
a Youth Chamber that focuses
on the 13-to 25 year old scholars,
students and entrepreneurs, so
as to give them the leverage to
become successful. In addition,
we host the Port Liaison Forum,
a committee comprising users of
the Port of Cape Town, including
shipping lines, freight and forwarding
agents, cargo owners and port
officials. This facilitates a port that
WESTERN CAPE BUSINESS 2017
24
FOCUS
is run smoothly and effectively. We
also have various chapters across
the peninsula, each with its own
committee that focus on adding
value to the members in their
respective areas.
We play a significant role in
keeping our members informed
of the latest issues affecting business
and industry, both large
and small. To that end we host
a substantial number of seminars
and workshops to facilitate
information-sharing and training
for our members. We have had
many stimulating and informative
speakers address members at the
Chamber. These have included:
Professor Jonathan Jansen who
was, until recently, Vice Chancellor
of the University of the Free State;
Dr Annthea Jeffrey of the Institute
of Race Relations; Anette Steyn, the
Shadow Minister of Agriculture,
Forestry and Fishing; Dr Ivan
Meyer, the Western Cape Minister
of Finance; Ms Lumka Yengeni,
Chairperson of the Parliamentary
Labour Portfolio Committee;
Richard Walker, Regional
Manager Metrorail; Dr Mamphela
Ramphela, activist and one-time
MD of the World Bank; Mr Tshediso
Matona, Secretary of Planning
and Acting Director General of
the Department of Planning,
Monitoring and Evaluation, and
many more.
The Chamber is well respected
and we can attract high-profile
speakers to debate issues and
answer questions from our members.
Recent events that have
drawn much attention are our
“Rumble in the Urban Jungle”
series of debates. We had two in
2016 – the first featured the leader
of the EFF Julius Malema versus the futurist Clem Sunter, and our second
“rumble” pitted Finance Minister Pravin Gordhan against controversial
journalist and author Justice Malala. These events received extensive
coverage and were featured in all major media in addition to being
livestreamed to an international audience. But more importantly, they
provided information enabling listeners to make better decisions as
business people and citizens.
In addition to the numerous meetings and presentations, the
Chamber hosts a number of landmark events. Our Small Business Expo
attracts thousands and is growing at a phenomenal rate. We also introduced
the Cape Business Summit in 2016, with Google as one of the
keynote speakers. The Chamber also owns the Design for Living expo,
which in its heyday attracted 100 000 attendees, but was halted a number
of years ago. We are currently in the process of repositioning the expo
as Design for Future Living, which will attract exhibitors and attendees
who are interested in everything that affects our modern lifestyle.
Our Exporter of the Year competition celebrated its 26th year in 2016.
This competition brings together the Western Cape’s leading exporters
and provides an insight into the work and achievements of many companies
that are not necessarily well known to the public. The annual gala
awards dinner has become one of the highlights of the year and an outstanding
opportunity for networking. We also serve on the Board and run
the SA Chapter of the International Women’s Entrepreneurial Challenge, a
global competition that brings some of the foremost women in business
together, publicises their considerable achievements and allows them
to network with their peers at an international level.
In addition to all these events, we host both formal and informal
networking functions, allowing our members to leverage relationships
that they have built up through the Chamber. We offer business advice
covering a range of subjects from legislation to HR to tendering. There
is also an International Trade Desk, which is the first point of contact
for trade missions and visiting delegations who come to the Chamber
to interact with our members. The Chamber is authorised to issue
certificates of origin for exporters.
The Cape Chamber of Commerce & Industry is a respected and
admired brand that has managed to remain relevant in a rapidly
changing world. It’s “where opportunity meets”.
CONTACT INFO
Physical address: 4th Floor, 33 Martin Hammerschlag Way,
Foreshore, Cape Town 8001
Postal address: PO Box 204, Cape Town 8000
Tel: +27 21 402 4300 | Fax: +27 21 402 4302
Email: info@capechamber.co.za
Website: capechamber.co.za
25 WESTERN CAPE BUSINESS 2017
PROFILE
Western Cape Business
Opportunities Forum
The Western Cape Business Opportunities Forum (WECBOF) is a non-profit organisation
with a powerful voice for business in the southernmost region of the African continent,
the Western Cape.
Description
The Western Cape Business Opportunities Forum
(WECBOF) is a member-based organisation for business.
It has access to channels for information on
how to grow and develop businesses in mainly the
Small, Medium and Micro Enterprise (SMME) sector,
and is an enabler for its members to access new
business opportunities.
Service
WECBOF is a service association providing businesspeople
with relevant information, training,
business opportunities, and representation on
appropriate investment, public sector and related
platforms. It also ensures that it is represented on
the boards of relevant associations and affiliations
in order to ensure that its members are well-represented
and that opportunities are filtered to the
organisation for their benefit.
Business objective
WECBOF’s objective is to improve business performance
in order to achieve improved levels of economic
growth and employment, reduce poverty
and meet social objectives. In order to achieve its
objective, the organisation focuses on addressing
issues such as contributing to the establishment of
an environment that is conducive to a free market
based on competitiveness, access to financial and
other business support services, and expanding
markets for products and services.
Target market
The organisation’s target market is the entrepreneurial
community of the Western Cape, including
the SMME sector.
CONTACT INFO
Email addresses
General enquiries: office@wecbof.co.za
Chief Executive Officer: arifa@wecbof.co.za
Administration: rene@wecbof.co.za
WESTERN CAPE BUSINESS 2017
26
WECBOF: Where
entrepreneurs excel
Arifa Parkar is the CEO of the Western Cape Business
Opportunities Forum (WECBOF).
INTERVIEW
Arifa Parkar, CEO
BIOGRAPHY
Arifa Parkar completed her formal
education at the University
of Bombay and Mumbai, earning
a BA in Economics and Politics
before moving on to complete
her LLB in 1985. The same year
she acquired her qualifications in
Business Management. In 1999
she joined the Department of Economic
Affairs and Tourism before
becoming Marketing Manager
at the Cape Chamber in 2001.
She is an active member and
executive on the Committee of
the South African Institute of International
Affairs (Western Province
Branch) and was elected the 1st
President of Mafubo South Africa,
an international NGO.
In addition to her role as CEO
of WECBOF, Arifa also owns and
runs Aasha Investment Solutions
(Pty) Ltd.
You were born in Zanzibar, grew up in the Seychelles,
Mauritius and India… so when did Cape Town
become home?
I came to the shores of South Africa in 1991 and very soon after I
realised that this could very well be my final choice of a place to call
home. It just suited me in every aspect – the different cultures, the
“joie de vivre”, the diversity, and of course the cosmopolitan appeal of
Cape Town just spread its web around my heart.
Does your vast international experience enhance
WECBOF’s work?
Absolutely – I strongly believe that networking is the key to any business’s
success. Over the years my personal network has grown quite
significantly, and this will be the key to opening local, national and
international opportunities for WECBOF and our members.
How has WECBOF changed its focus in recent years?
WECBOF started out as a voice for coloured businesspeople, but today
it represents all South Africans with a common passion for entrepreneurship
in the Western Cape. This is our greatest achievement.
How does WECBOF encourage more opportunities for SMMEs?
To succeed in today’s collaborative, client-driven, networked economy,
companies must take advantage of the strength of their business
relationships to succeed. A new economy is emerging, one built on a
complex network of information, interaction and change. This evolving
business landscape, shaken by technological innovation, globalisation
and downsizing, has led us back to embracing the most fundamental
aspect of business: relationships. That is why WECBOF is in constant dialogue
with stakeholders so that we create an enabling environment for
our members, as well as those with whom we interact and do business.
Which of your accolades means the most to you?
I have two personal favourites that stand out from the rest, one from
CEO Magazine as the “Most Influential Woman in Business” Award,
and the second was awarded to me by Business Partners for my
“Contribution to SMMEs in the Western Cape”. These two are very
dear to my heart.
27 WESTERN CAPE BUSINESS 2017
DID YOU KNOW?
OMBDS 12.2016 L10069
OMBDS 12.2016 L10069
• 10 years ago the Masisizane Fund was established as an initiative of Old Mutual
South Africa following the closure of the Unclaimed Shares Trust.
• The Fund provides loan finance to small businesses.
• The mandate of the Fund is to contribute meaningfully to employment creation,
poverty eradication and reduction of inequality, economic growth and the attraction
of investment.
• The Fund honours the mandate through the promotion of entrepreneurship, enterprise
finance and support to small, micro and medium enterprises.
• The focus of the Fund is on enterprises that are 51% or more owned by previously
disadvantaged individual(s) and gives priority to rural and peri-urban/township
areas.
• Preference is given to businesses owned by youth, people with disabilities or are
owned by women (51% or more).
• In order to contribute meaningfully to job creation, productive and labour absorbing
sectors are targeted:
Agribusiness
Franchising
Supply Chain
Flagship initiative in agriculture in the Eastern Cape
• Over the last almost 10 years, the Western Cape has benefited from investments
from the Masisizane Fund in all of the sectors mentioned above to the value of more
than R22m. With its focus in agriculture, investments to the value of R14m has been
made in this sector alone.
Old Mutual is a Licensed Financial Services Provider
MASISIZANE FUND
• The Fund supplies non-financial value-adding post-investment services including
capacity development, business management and technical support, financial
education, market development and product-service quality standards and
compliance.
• Masisizane plays a vital role in the assessment of potential suppliers to Old Mutual
and the further development of suppliers to include the creation of business to
business transactions with Old Mutual.
• Since 2012, the Masisizane Fund has offices in five of the nine provinces with the
national head office in Gauteng:
Gauteng (including North West & Free State) 011 217 1746
Western Cape (including Northern Cape) 021 509 5074
KwaZulu-Natal 031 335 0400
Eastern Cape 043 704 0116
Limpopo (including Mpumalanga) 015 287 4279
An initiative of the
Group
Down-town boom town, Cape Town
A number of high-visibility construction projects are under development in the Cape Town
CBD and surrounds.
Thousands of people happily meandering
through the streets of the inner-city till late
at night – that’s down-town Cape Town on
the first Thursday of every month. Started in
2012 as a way of attracting people to art galleries and
museums, the event has morphed into an urban festival
of fun, film, fashion, food and performance art.
It’s also a good measure of a city economy on the up.
SPECIAL FEATURE
The land earmarked for the Richmond Park development.
Cape Town’s central business district (CBD) delivers
a quarter of the city’s economic activity and about
30% of employment. Construction projects worth
R16-billion are either being built or are in the pipeline
for the CBD. Hundreds of hotel beds are being
added to the city’s tourist offering and public money
is going in to upgrades of the railway station and
the Iziko South African Museum. A new Cape Town
Museum is planned for the old Standard Bank building
on Adderley Street.
Major developments on both ends of the Foreshore
will transform the city’s connection to the harbour and
effectively extend the very successful formula of the
V&A Waterfront across the front of Cape Town.
A new cruise terminal on the western edge of the
Foreshore (north-west of the Cape Town International
Convention Centre, CTICC) welcomed 86 000 passengers
in its first year of operation. The tender to
run the terminal was won by the V&A Waterfront. The
Amdec Group is developing The Yacht Club directly
south of the terminal, a mix of commercial, residential
and hotel space.
This is part of a larger Port Gateway project that
aims to connect the city to the sea. The Roggebaai
Canal will be extended to Duncan Dock, providing a
link to both the CTICC and the Waterfront.
On the eastern edge of the Foreshore, a very
ambitious plan envisages two new hotels, flats, retail
space and offices rising out of ground currently occupied
by three car dealerships and a roadworthy
station on Christiaan Barnard Street. The Harbour
Arch concept is based on Johannesburg’s Melrose
Arch, with seven tower blocks to be constructed
on 200 000m², roughly half the footprint of the V&A
Waterfront. The Amdec Group are the owners and
developers of the project.
Further afield, a high-visibility site 17km from
Cape Town CBD is being developed as a mixed-use
commercial precinct with 300 000 m 2 of gross bulk
lettable area on a 99-year leasehold basis. Called
Richmond Park, it is anticipated that the development
will be popular with distribution and light
industrial businesses, but it will also incorporate a
retail centre.
Hotels
Marriott International’s introduction of three new
hotel brands to Cape Town forms part of the re-shaping
of the Foreshore. Both the Cape Town Marriott
Hotel Foreshore and the Residence Inn by Marriott
WESTERN CAPE BUSINESS 2017 32
SPECIAL FEATURE
will be part of the new Harbour Arch precinct, while
the AC Hotel will be attached to the Yacht Club and
be the first thing cruise line visitors see after they
emerge from dealing with customs authorities. The
three hotels will offer a total of 539 rooms.
The Rezidor Hotel Group is adding a sixth Cape
Town property to its portfolio with the opening
of the Radisson Red Hotel V&A Waterfront Cape
Town. The Capital Mirage opens in De Waterkant
in 2016 while the boutique Silo Hotel will perch
above the Zeitz Museum of Contemporary Art Africa,
which is going to display its contemporary art in the
Waterfront’s re-purposed grain silos.
Tsogo Sun is spending R680-million on the site
of the old Tulip Hotel to create a two-hotel and
conference complex. Fronting on Strand Street (and
Bree and Buitengracht), a total of 500 rooms will be
available in a SunSquare hotel and a StayEasy hotel.
Cape Town International Convention
Centre
Since it started operating in 1999, the CTICC has
added R38-billion to the regional economy. It is
jointly owned by the City of Cape Town (67.8%), the
Western Cape Government (25.3%), and SunWest
International (Pty) Ltd (6.9%). The Westin Hotel is on
the western edge of the conference centre complex
and several other large hotels are nearby, including
two Southern Sun hotels, Waterfront Cape Town
and The Cullinan.
Building is under way to double the size of the
CTICC, which will position Cape Town to handle
mega-conferences such as those dealing with climate
change. Two major conferences were recently
secured with the help of the Cape Town & Western
Cape Convention Bureau: the 18th International
Congress of Immunology (IUIS) and the International
Symposium on Microbial Ecology (ISME). The CTICC
bids were in competition with London, Paris, Mexico
and Toronto, Hawaii, Auckland, Beijing and Santiago.
These two events alone will bring 8 500 visitors
to the city.
In 2015/16, the CTICC generated R200-million in
revenue and earned R65-million in operating profit
by hosting 504 events.
Voortrekker Road Corridor development
The old road to the north is still a very busy road
but there are plans to bulk up Voortrekker Road
and make it an attractive investment destination.
The City of Cape Town has recently put infrastructure
worth more than R300-million into
supporting the plan, and has given money to the
Passenger Rail Agency of South Africa (PRASA)
for it to develop a plan to upgrade the rail corridor.
The Voortrekker Corridor is one of the
densest transport nodes, with rail, road and taxi
linkages throughout.
The Greater Tygerberg Partnership is driving
several initiatives to spur developments in the
region. These relate to attracting investment, affordable
housing, creating a world-class sporting
facility at the Haardekraaltjie precinct, and lobbying
for pedestrian malls, bike lanes and more
efficient public transport.
The City of Cape Town presented its Voortrekker
Road Corridor: Strategy and Investment Plan at the
African Real Estate and Infrastructure Summit at
the CTICC in November 2016.
33 WESTERN CAPE BUSINESS 2017
FOCUS
A world-class
convention centre
welcoming the world
By expanding its existing footprint, the CTICC is moving closer to its goal of becoming
one of the top convention centres in the world.
©ALAIN PROUST
The Cape Town International Convention Centre (CTICC) is a destination
of choice for conferences, exhibitions and business events on
the African continent. Located in the foreshore business precinct
in the City of Cape Town, the centre is currently undergoing an
impressive expansion project. The expansion – known as CTICC East – is
set to further the centre’s reputation for hosting the highest number of
international conferences in Africa and will allow it to simultaneously
host concurrent large-scale events across CTICC West (the original
facility) and CTICC East.
Only a 20-minute drive from Cape Town International Airport, the
CTICC offers:
• Two auditoria seating 1 500 and 612 delegates respectively
• A roof terrace for 380 delegates
• 33 breakout rooms of varying sizes accommodating 25-320
delegates
• 11 399m 2 of dedicated exhibition and tradeshow space
• Versatile banqueting and function rooms including a grand
ballroom of 2 000m 2 with breathtaking city views
• 1 400 parking bays
CTICC East, scheduled to open in July 2017, increases the centre’s capacity
with 10 000m 2 of multipurpose conference and exhibition space and
3 000m 2 of formal and informal meeting space. It has been awarded a
Four-Star Green Building Rating by the South African Green Building
Council.
The CTICC is a purpose-built
facility in one of the premier tourism
destination cities. Its expansion
bolsters its vision to deliver
extraordinary experiences to a far
broader audience and become
one of the top 10 convention
centres in the world.
CONTACT INFO
Physical address:
Convention Square, 1 Lower
Long Street, Cape Town
8001
Tel: +27 21 410 5000
Email: info@cticc.co.za
Website: www.cticc.co.za
Twitter: @ C T I C C _ O f fi c i a l
Facebook: facebook.com/
CTICC
WESTERN CAPE BUSINESS 2017
34
Experience Extraordinary
There’s a place where meetings, conventions and
celebrations are transformed from ordinary gatherings
into extraordinary experiences. A place where everyone
knows they are valued, where vision is shared, and where
today’s ideas come to life as tomorrow’s successful reality.
Here, a breathtaking location, a selection of superb venues
and facilities, and uncompromising VIP treatment for all
are brought together to offer your important guests an
unforgettable experience worthy of their status.
This place is Cape Town International Convention Centre.
And to experience it is to experience extraordinary.
To transform your special event into an extraordinary experience
contact CTICC: +27 21 410 5000 sales@cticc.co.za www.cticc.co.za
INTERVIEW
Cape Town’s new
warehousing hub
Gerrit van den Berg of Atterbury
outlines the proposal to develop Richmond Park.
Gerrit van den Berg
BIOGRAPHY
Gerrit, who heads up the Western
Cape offi ce for Atterbury, studied
a BCom Investment Management
at Tuks (the University of
Pretoria) before he started working
for a Johannesburg-based
developer. On his daily commute
between Pretoria and Johannesburg
he would drive past two
buildings being developed by
Atterbury. He was so impressed
with the look of the buildings that
he plucked up the courage to
approach the company for a job.
His initiative paid off and he has
been working for Atterbury since
2006. In January 2016 he moved
to the Western Cape to open the
regional offi ce in Stellenbosch.
What prompted the decision to develop Richmond Park?
Atterbury was approached by two individuals, Richard Glass and Daniel
Filippi, who saw an invitation to tender for the development of 84ha of
land adjacent to the suburb of Richwood along the N7 highway. They
invited us to join them in bidding for the land that had been advertised
following the awarding of a land claim.
We were impressed by the fact that the land is joined by key roads in the
north/central part of the city and is therefore very accessible and so were
delighted when the tender was awarded to our consortium.
How will the land claimants benefit from the project?
The 401 families who lived on the land in the 1970s and ‘80s were removed
against their will from the land by the former apartheid administration.
The land was returned to the original inhabitants following a successful
land claim.
Our tender bid specified that the original community members would
become a 25% shareholder in the final development project. The original
families and their descendants received a monetary amount when the
lease was registered and they will qualify for an annuity income from the
proceeds of the development – that is, once the development becomes
profitable and for the remainder of the 99-year lease.
Who are you targeting in terms of sales/leases and which
companies have signed up to move to Richmond Park?
We are targeting larger distribution and logistics companies, particularly
those requiring in excess of 5 000m 2 facilities. We have sold 3.5ha of land to
Cape Fruit Coolers, and also concluded a deal with CTM. We have earmarked
a retail development of 11 000m 2 at Richmond Corner with Pick n Pay, Clicks
and Planet Fitness as anchor tenants, scheduled to open in March 2018.
We estimate there is sufficient space to construct 300 000m 2 of bulk
in total.
www.richmondpark.biz
WESTERN CAPE BUSINESS 2017
36
BAT HQ, Cape Town
Mall of Africa, Waterfall City
Bagatelle Mall of Mauritius, Mauritius PwC HQ, Waterfall City Richmond Park, Cape Town
Randport Industrial, Germiston Mall of Engomi, Cyprus Shoppi, Serbia
From Africa, to Europe and beyond
Over 22 years Atterbury has created more than 20 shopping centres and many
other award-winning commercial developments. The company is proud of its
heritage and business associations, cementing Atterbury as a leading name in
property investment and development across the African continent and beyond.
atterbury.co.za
INTERVIEW
Driving investment
in Cape Town
Lance Greyling heads up the newly launched
Invest Cape Town initiative.
Lance Greyling
BIOGRAPHY
Lance Greyling has experience
in the private sector, civil society
and government. After some
time in the corporate world he
joined environmental organisation
Globe Southern Africa as the
programme manager for Southern
Africa. In 2003, he joined
the newly formed Independent
Democrats under Patricia de Lille
and was elected to Parliament
in 2004. He spent 11 years in
Parliament, serving on a number
of different portfolios, including
Trade and Industry, Finance,
Education, Environmental Affairs
and Energy. In February 2015, he
took up the position of Director
of Trade and Investment at the
City of Cape Town.
Please give some background on Invest Cape Town and
its role.
Cape Town is known the world over as a beautiful city and a tourist
destination, but we want to position Cape Town as a globally competitive
business destination – a great place to invest and a great place
to do business. If we are going to address our socio-economic challenges
as a city, we have to grow the economy and create more jobs.
We have the lowest rate of unemployment of all the metros, but it still
sits at around 20% which is far too high. If we’re going to make a dent
in that we have to position Cape Town in the minds of both local and
international investors as a globally competitive business destination,
and if they choose to invest here we will make it as easy as possible to
get their enterprise going.
What makes Cape Town an attractive destination
for investors?
There are a number of exciting things that are happening in Cape Town.
Firstly, potential investors coming to Cape Town realise that this is a
city that actually works – the infrastructure is in place, we have reliable
electricity and water, on an administrative level this is a city that is easy
to deal with, we’re very responsive to businesspeople and our citizens,
so we deal with issues quickly and make sure problems are resolved.
In terms of governance, we’re now the most stable metro in the
country, with a 65% majority, so there is continuity of policies and
governance. We’ve had unqualified audits for the past 10 years. This
factor is vitally important to investors.
Secondly, there are a number of interesting sectors that have
emerged in Cape Town, which investors will be particularly interested
in. We conducted a study of the Cape Town economy to identify areas
for growth, and what we found was that a lot of the sectors that Cape
Town is doing well in are sectors that are poised for big global growth
– sectors of the future.
An example is the ICT sector – we are very much the tech hub of
Africa with the most tech start-ups of any city on the continent, and
WESTERN CAPE BUSINESS 2017
38
INTERVIEW
we also have a mature ecosystem here that can
support tech companies.
In BPO (Business Process Outsourcing), we’re
the leader in South Africa and in Africa. There are
a number of global companies such as Amazon
running back-office and call-centre operations out
of Cape Town. This is another sector where we want
to attract more investors and where we have an
attractive offering.
In terms of the renewable energy and clean-tech
industries, we’re also a leader. We should shortly
receive national designation for a Special Economic
Zone in Atlantis for the clean-tech sector, and we
already account for about 60% of the manufacturing
of the renewable energy component for the
national programme.
“WE AIM TO POSITION CAPE
TOWN IN THE MINDS OF BOTH
LOCAL AND INTERNATIONAL
INVESTORS AS A GLOBALLY
COMPETITIVE BUSINESS
DESTINATION.”
We’re also seeing investment into advanced
manufacturing such as electronics. An example is
Hisense, which is expanding its operations in Atlantis,
and there’s an aerospace cluster in Somerset West
where there are a number of companies that are
producing satellites for the global market.
So we are doing well in the knowledge economy,
which is supported by the fact that we have four
higher education institutions here. This is a key point
for companies looking to invest as they know that
we have the requisite skills base.
Cape Town is also a place where people want
to come and live, so companies know they’re not
going to struggle to get people to come and work
for them if they base themselves here.
Cape Town is also the retail capital of South Africa,
with many of the retail giants headquartered here,
Shoprite being an example. This is a good base for
companies that are looking to penetrate the African
market, given our port infrastructure, and we also
have the financial and legal companies to underpin
and advance an African strategy.
Are there any incentives that you offer
to investors?
We’re limited at local government level in terms of
incentives we can offer, but we did pilot an incentive
scheme in Atlantis that worked phenomenally
well – the one financial incentive we were able to
offer was a discount on electricity, and companies
have taken that up, but actually the bigger incentive
that we offer is in the efficient allocation of land.
For example, a company looking to build a factory
here was able to make an investment decision and
within nine months buy the land from us, get all the
approvals, get the building plans done, construct
the factory and then open up their operation in a
record time. That’s where the real incentive lies, a
non-financial incentive – in our ability to fast-track
administrative processes.
And of course a Special Economic Zone for the
clean-tech sector would offer a national incentive
in terms of a lower tax rate, which is a big drawcard.
How are you taking the message about
Cape Town to the world?
First, we’re having three months of structured engagements
with key stakeholders and partners to
see what they require to get the message out about
Cape Town.
Although we have initiated this campaign, we
don’t see ourselves as owning it – we want people
to be economic ambassadors for Cape Town, to
engage with us as to the kind of materials that would
be useful to them when they go out on a global
mission. We will then craft the collateral for them
to use.
So it’s not just about us pushing out a message
of the City of Cape Town, but about us empowering
economic ambassadors for Cape Town and giving
them the materials to enable them to sell a good
story about Cape Town globally.
39 WESTERN CAPE BUSINESS 2017
INTERVIEW
Collaboration for
growth
CEO of Accelerate Cape Town, Ryan Ravens, explains how
the organisation is engaging with a variety of role-players to
shape growth in the city.
Ryan Ravens
BIOGRAPHY
Ryan Ravens has extensive
experience in leadership positions
in the public and private
sectors. Having served as the
masterplan project manager for
the FIFA 2010 World Cup, he
was subsequently headhunted
by the Gauteng Growth and Development
Agency. His next role
was CEO of a holding company
that invested in numerous initiatives
whereafter he joined Accelerate
Cape Town. He holds
three degrees including an MBA
from UCT.
How does Accelerate Cape Town differ from other
business organisations in the region?
Our model is very different to the chambers in that we represent or
aim to represent some of the largest corporates and we are not looking
to grow our membership massively. We keep our membership
small because we want to have the big players and the people who
can collectively shift the landscape, not people who are trying to use
the platform for business development. Having a small number allows
me to engage with them quite intimately, so I can have face-to-face
interaction with the CEOs on a regular basis.
We have 42 of the largest corporates as members, and we are
aiming to reach 50. The four universities, two business schools and
political leadership of the region are part of our network so it becomes
an effective network that should be capable of shifting the landscape
and driving the bigger game-changing projects in the region.
Our independence is important; we don’t accept any money from
government as that allows us to be an independent voice for the
private sector.
What are your key areas of activity?
When you have limited resources you have to make tough choices
as to what you can do, so we narrowed our focus to five key areas:
Talent
The first focus area is talent, specifically the transformation, attraction
and retention of young black talent in the corporate environment.
We found that companies have been spending a fortune to import
black talent to the Cape but once their orientation programme ends
and those people haven’t settled socially into the city and built social
capital, they’re on a plane going back. We do inspiration sessions aimed
at young leaders and young talent to help them build their personal
networks in the region and meet their peers in other corporates in
order to share experiences.
In 2016 we extended that reach to senior professionals who’ve
relocated to the Cape. Whether they’re foreign nationals or
WESTERN CAPE BUSINESS 2017
40
INTERVIEW
senior professionals from other parts of South
Africa, they are struggling to settle into the city and
they have similar issues except they have families. It
has become quite challenging for many corporates,
so we’ve launched what we call the “Welcome
to Cape Town” initiative. This is less serious than
our usual networking engagements because it’s
geared more towards showcasing the food, wine
and entertainment of the region, but ultimately
it’s about helping them meet their peers and the
feedback so far has been massively encouraging.
It’s fine focusing on talent, but if we’re serious
about transformation we also have to look
at the HR practitioners. We have started the HR
Practitioner Forum which brings together all the
senior HR leadership from across these corporates
to engage around specific issues. These include
the unintended consequences of the new BEE
codes and what that means, how they practically
implement transformation in their organisation
and best practices. There is an opportunity for
sharing, so that adds value. We’ve tried to create
linkages between our focus areas, so when we
talk about the Atlantis SEZ, for example, there’s a
tie-in with talent with respect to artisanal training
and so on.
WE DON’T ACCEPT ANY
MONEY FROM GOVERNMENT
AS THAT ALLOWS US TO BE
AN INDEPENDENT VOICE FOR
THE PRIVATE SECTOR.
Business leadership
The second focus area is business leadership, which
has two components. The first is the activities we do
with the leaders of these corporates which includes
intimate engagements with people such as Christo
Wiese, Simon Susman, etc, who act as mentors. We
engage around specific topics, junk status and Brexit
and the implications thereof. We invite people from
the National Treasury or the major banks to participate
and engage with the local CEOs.
We also host dinners with the Premier and the
Mayor, private events around one table so that CEOs
can engage with them on issues that are impacting
business in the region. This helps drive real working
relationships between business and government
not just talk shops and “protocol-observed”
type events.
In the second aspect of our business leadership
focus, we started reaching out to the diplomatic
corps by launching the Foreign Office Programme.
We been quite selective and have focused on the
Dutch, the Germans, the French and the English
because they are all actively involved in assisting
their corporates in this region. From the Asia
Pacific region it’s Japan, China, India and the USA,
and those eight represented our Foreign Office
Programme for 2016.
Connectedness
Our third area of focus is connectedness and again
there are two components. There’s physical connectedness
and we are doing a series of engagements
with Wesgro where we’re looking at issues
of traffic congestion. For example, quite a number
of members moving into the Waterfront are concerned
about the level of traffic congestion and the
way it is negatively impacting productivity. We are
exploring different options but also looking at rail
and freight logistics and the direct flights out of
Cape Town to key economic destinations.
Then there is virtual connectedness – the fibre
optic broadband infrastructure, the wifi zones, etc.
From a social development perspective, you want
that infrastructure in the townships. Research
has shown that a 10% increase in broadband
connectivity results in a 1.3% increase in GDP
growth. So the City decided to use its budget
and grow the infrastructure and then they came
to us and asked what the corporates could do
with open access networks.
Our corporates are very excited about it
because with these wifi zone and fibre optic
networks you have an opportunity to access
communities that they had difficulty in reaching.
41 WESTERN CAPE BUSINESS 2017
INTERVIEW
Allied to this is the City of Cape
Town’s strategy to position Cape
Town as Africa’s first smart city.
The City had a draft strategy for
this but it wanted input from regional
players. The tricky thing is
they couldn’t go directly to specific
corporates because that would
have meant those corporates
would have needed to be excluded
from the procurement process.
I suggested that they speak to us
because we are not-for-profit and
I could organise a workshop with
various role-players.
The first workshop was held
at the new Deloitte Greenhouse
facility and something amazing
happened. As the City officials outlined various
initiatives, the private sector representatives
started putting up their hands and saying things
like, “We already have a product that does that”, or
“We were planning to do that in five years anyway
based on our business strategy but now we know
it’s needed we can fast-track it”. So, whereas you
might have expected government to take the
lead in certain initiatives and for the corporates
to be gearing themselves up for the procurement,
it became clear the private sector could take the
lead now that they had the knowledge of where
government was intending to go.
We have now replicated that model for other key
initiatives such as big data, which is relevant to the
SKA project. One of the most interesting aspects of
the Square Kilometre Array project is that the facility
generates data at an absolutely unprecedented rate
and we have facilitated some very fruitful discussions
around associated opportunities.
Innovation
Allied to that is our fourth focus area, which is innovation.
We’ve narrowed the focus specifically to
academia and business, and have also created links
with the Technology Innovation Agency (TIA). We
are working specifically with the Technology Transfer
Office (TTO) at each university. Each university has
been mandated to establish a technology office
The Thought Leaders sessions are popular with Cape Town
businesspeople.
where they house all the inventions, all the innovations
and the spinout companies that come from
the university environment.
Commercialisation out of that incubation space
into mainstream commerce is a challenge and that’s
where the link with corporates becomes significant.
The advanced manufacturing and technology
that’s coming out of those TTOs has blown me away.
They attract finance because they’re good products
but what happens is, because it is headed by a sciences
or engineering graduate, it flounders because
there isn’t a depth of business experience.
We initially approached our corporate network
to find out if there were individuals who were willing
to act as directors with a view to mentoring
these young entrepreneurs and also to potentially
buying an equity stake. What we discovered is that
corporate managers are often governance focused,
whereas what a start-up needs is to grow its market,
to increase efficiency and product development,
and to implement systems required for growth.
Unfortunately, some of the corporate people were
stifling the start-up with that mindset so we are going
to develop a start-up mentorship course (an accredited
standardised course) that seasoned professionals
can take in order to help them understand start-ups.
We are also having conversations with players
in the e-learning space to drive effective e-learning
initiatives in our region.
WESTERN CAPE BUSINESS 2017
42
INTERVIEW
Welcome to Cape Town event, from left to right: CEO of Accelerate Cape Town Ryan Ravens, Katlego
Letlonkane Associate, Employment Law, Cliffe Dekker Hofmeyr Inc and Savarion Arendse, Old Mutual.
Sustainability
Our last focus area is sustainability – food, water and
energy security. The drought is obviously influencing
food security so we have had people talking
about innovative ways of managing water and
innovative agricultural practices.
Perhaps the most exciting programme in our
sustainability focus area is the application that has
been submitted to the dti to have Atlantis Green
Technology Industrial Park designated as a Special
Economic Zone.
We can’t compete with the Chinese in terms of
solar panel manufacturing and we don’t have the
engineering skill and the artisans who can build
related electrical engineering components. But what
every solar panel needs is a steel mounting structure;
what every electrical component needs is a steel
casing and steel components.
What we’ve been saying to Green Cape and provincial
government is, make steel the local content
component. You have all these big global traders
rushing in because they get a massive tax break (15%
versus the usual 29%). That is already a big pull factor,
but then you compel them to use local steel. This is
will improve prospects for our steel industry but also
stimulate the market for artisans (although demand
is already massive).
The problem in South Africa is we simply haven’t
produced enough artisans and recent studies
have shown if we are to implement the National
Development Plan and if we are to get our economy
back on track we need 40-60% of school
leavers doing artisanal training, but at the moment that
number is 8%.
We see this initiative in Atlantis as the optimal
opportunity to establish more artisanal training in
colleges. We want to grow the economy in a particular
direction but it has to be inclusive; there’s no
point in growing the economy in a direction that the
mass population cannot participate in.
As a result of our engagement with Airports
Company South Africa there is a chance that a facility
situated between Mitchells Plain, Khayelitsha and
Philippi could become the location of an artisanal
training college.
These are some examples of our tangible and
connected approach to growing the regional
economy.
www.acceleratecapetown.co.za
43 WESTERN CAPE BUSINESS 2017
SPECIAL FEATURE
South African economy at a glance
Insight into the performance of the South African economy is provided through these
graphical representations of key statistics.
ZIMBABWE
NAMIBIA
BOTSWANA
Limpopo
0.9% (7.1%)
MOZAMBIQUE
North West
-3.6% (6.5%)
Gauteng
2.1%
(34.3%)
Mpumalanga
2.7%
(7.5%)
SWAZI-
LAND
Northern Cape
2.8% (2.1%)
Free State
1.8%
(5%)
LESOTHO
KwaZulu-
Natal
2.3%
(16.1%)
Western Cape
2.0% (13.6%)
Eastern Cape
1.0% (7.6%)
SA GDP: Percentage of growth per province (2014) and percentage
contribution to national GDP (figures in brackets).
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND
Eastern Cape Bhisho
Phumulo
Masualle
6 916 200 168 966km 2 R289.9
Free State Bloemfontein
Elias Sekgobelo
"Ace" Magashule
2 817 900 129 825km 2 R189.1
Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6
KwaZulu-
Natal
Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1
Limpopo Polokwane
Stanley
Mathabatha
5 726 800 125 754km 2 R271.5
Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2
North West Mahikeng
Supra
Mahumapelo
3 707 000 104 882km 2 R249.5
Northern Cape Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9
Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R518.1
Snapshot of South Africa’s provinces
SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA
WESTERN CAPE BUSINESS 2017 44
SPECIAL FEATURE
How South Africa’s economy performed in 2015. *
* PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
SECTOR LP MP GP NW KZN FS NC EC WC
Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5
Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3
Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8
Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0
Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3
Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0
Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1
Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6
Personal
Services
Government
Services
3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1
16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2
Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0
Gross Domestic Product by province, percentage contribution.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1
45 WESTERN CAPE BUSINESS 2017
SPECIAL FEATURE
7%
6%
5%
4%
3%
2%
1%
0
2011 2012 2013 2014 2015 2016
CPI (percentages from 2011 to 2016)
PPI (percentages from 2011 to 2016)
denotes data for September 2016 rather than the average for the full year.
**
Inflation rate 2011 to 2016
SOURCE: WWW.STATSSA.GOV.ZA
Mineral products 20.41%
Precious metals 18.24%
Vehicles, aircraft and vessels 12.57%
Products iron and steel 12.02%
Machinery 9.69%
Chemicals 6.47%
Vegetables (including fruit, nuts and cereals) 4.96%
Prepared foodstuff (including beverages) 4.29%
Plastic and rubber 2.11%
Wood pulp and paper 1.92%
South Africa’s top 10 export commodity categories: 2015
SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA
Machinery 25.02%
Mineral products 16.12%
Vehicles, aircraft and vessels 10.4%
Chemicals 10.37%
Equipment components 7.3%
Products iron and steel 5.54%
Plastic and rubber 4.13%
Textiles 3.72%
Prepared foodstuff (including beverages) 2.93%
Photographic, medical equipment 2.71%
South Africa’s top 10 import commodity categories: 2015
SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA
WESTERN CAPE BUSINESS 2017
46
Nedbank Corporate and
Investment Banking
FOCUS
Nedbank is banking on relationships with corporate clients.
Nedbank Corporate and Investment Banking provides expert
banking services, funding and transactional banking capabilities
to corporate clients. Its solutions are customised to
suit the needs of each client and the division is committed
to providing excellent client service – a commitment that is confirmed
by the high ratings consistently provided by client surveys.
“We are a relationship-driven business, focused on JSE-listed companies,
large unlisted companies, branches or subsidiaries of inbound
multinational entities and public sector entities at national, provincial
and local government level. The Coastal region incorporates the
Durban and Cape Town offices, with clients from Saldanha Bay in
the west to Richards Bay in the east,” says Alistair Pearce, Divisional
Executive of Nedbank Corporate and Investment Banking. “In the
Cape, we have two offices and focus mainly on the life assurance,
retail, media, asset management and oil industries, the consumer
goods and food sectors, and the public sector – the latter being a
sector we’re targeting for substantial growth.”
What we do differently
The division provides a differentiated client value proposition, based on
established relationships and an in-depth understanding of its clients’
businesses and the industries in which they operate. It provides a fullservice
wholesale banking offering – including lending, deposit-taking,
transactional banking, global trade services and asset finance – by way
of dedicated corporate bankers who are primarily responsible for dealing
with corporate clients.
Specific solutions
The division provides a variety of funding solutions amounting to
between R50-million and several billion rand from short-term and
working capital facilities, trade finance and letters of credit and
guarantees, to vanilla and complex term debt structures by way of
bilateral, club and syndicated transactions, the issuance of corporate
paper and other debt instruments. Leveraged buyouts (LBOs)
and management buyouts (MBOs) are also funded, with Nedbank
Corporate and Investment Banking acting as lead arranger, coarranger
or facility agent.
Transactional banking offers
full-spectrum domestic-clearing
bank services, including current
accounts, cash management and
electronic banking, through its
scalable Internet-based NetBank
Business system, its high-volume
host-to-host platform, Corporate
Payments System, and a full range
of cross-border and international
transactions. The deposit-taking
franchise is strong, with a range of
tenor-linked investment offerings
paying interest rates, linked to a
range of instruments.
Commitment to the
community
“As part of the Nedbank Group,
we are committed to making a
difference in the community in
which we operate and, through
the Nedbank Foundation, contribute
to a number of educational
causes. We are especially proud
of our Western Cape essay writing
competition in partnership with
the Western Cape Government”.
For more information on Nedbank
Corporate and Investment
Banking contact Alistair Pearce,
Divisional Executive on tel:
+27 21 416 6825 or email:
alistairp@nedbank.co.za
47
WESTERN CAPE BUSINESS 2017
FOCUS
Nedbank Business Banking:
Making it easier to
do business
Business customers benefit from Nedbank’s relationship-based banking model.
Great news for Cape business owners and entrepreneurs seeking
a unique banking experience: Nedbank Business Banking
has over 80 business managers located across the Western
Cape who are ready to assist you with professional advice
and industry-specific solutions.
“At Nedbank Business Banking we believe that you need a financial
partner who not only understands your circumstances and aspirations,
but can also provide you with relevant solutions and a banking experience
that is hassle-free, allowing you to concentrate on the running of
your business,” says Goolam Kader, Nedbank Business Banking’s Divisional
Executive for the Western Cape.
At the core of the bank’s offering is a relationship-based model, with
a business manager dedicated to your business as the key entry point
into the bank. Each business manager is part of a client services team,
additional members being a credit manager, credit analyst and services
manager, all of whom have a genuine interest in the success of each
individual business. “When you do business with us, you are speaking to
people who know the area and are familiar with the various industries
operating here,” explains Kader.
Kader adds that Nedbank is constantly innovating and these principles
are further embedded in our first-to-market approach with the launch of
Whole-View Business Banking, which emphasises that by partnering with
us, we are able to provide a holistic view of the client`s entire business.
This will have substantial benefits to our clients, including leveraging
skills and resources across the bank; better business, transactional and
cash flow solutions; better understanding of our client`s liquidity risk and
associated costs as well as improved overall pricing.
An added benefit of banking your business with Nedbank Business
Banking is that your business and your personal financial needs as well
as that of your employees can be managed in one place.
“Very often business owners and their businesses are financially dependent
on each other. Our client service teams now also offer individual
banking solutions, better advice and a hassle-free service to you and
Goolam Kader,
Nedbank Business Banking
Divisional Executive,
Western Cape
your staff as we already know and
understand your needs,” explains
Kader.
With this in mind, Nedbank
introduced Nedbank@Work – a
unique service to employees
of companies who bank with
Nedbank. The service facilitates
convenient banking at the workplace
through bankers or consultants
on site, in the branch or via our
call centre and internet channels.
In addition, Nedbank@Work offers
non-financial support to you and
your employees free of charge.
For more information call Goolam
Kader on +27 21 928 2000 or
email goolamk@nedbank.co.za
WESTERN CAPE BUSINESS 2017 48
Nedbank Retail Banking:
Making banking
accessible to all
FOCUS
Nedbank intends working with communities to make banking services more accessible.
Our clients are engaged by skilled, enabled and productive
staff who, through meaningful conversations, ensure we
deliver our clients’ needs and aspirations. As a bank for all,
Nedbank realises that communities and their representatives
are key stakeholders in our bank for all strategy. As such, the bank’s
strong relations with government, organised business and communities
remain a key focus in growing its client base of over seven-million.
Our presence in the Western Cape community goes a long way
in allowing for greater financial inclusion while contributing to social
upliftment and economic development.
Nedbank continues to grow its distribution presence across South
Africa, including the Western Cape as the fastest-growing province.
This enables us to provide accessible banking to all South Africans.
We continue to invest in our frontline staff that operate across 95 traditional
branches, eight relationship centres and seven personal loan
centres. Nedbank has embarked on a distribution strategy to convert
all traditional branches to “Branch(es) of the Future”.
Branches of the Future are equipped and enabled with world-class
technology to create a great place to bank for our clients and a great
place to work for our staff. We currently have 25 “Branch of the Future”
stores in the Western Cape. To make banking more convenient, we
currently have eight branches that operate and trade on a Sunday. For
further convenience to our clients, we have also increased our ATM
distribution to 606 and Intelligent Depositors to 127 in the province.
Nedbank’s client-centred approach has seen the bank intensify
its efforts in delivering a distinctive client experience through innovation.
The introduction of the award-winning Nedbank App Suite
is evidence of the bank’s progress and its understanding of client
needs. The App Suite serves as a virtual extension of our distribution
network operating from the palm of your hands. “It makes it easy for
clients to do their banking securely – from anywhere, anytime,” says
Sharon Smith: Regional General Manager of Western Cape Branch
Networks at Nedbank.
“Our offering in Western Cape Retail extends to Small Business
and Professional Banking. We believe that small business is a critical
segment of our economy and plays a key role in job creation. To
Sharon Smith, Nedbank
Regional General Manager
Branch Networks
support small businesses we have
dedicated relationship managers,
either in branch or in relationship
centres for every small business
account holder. We have a website
called ‘simplyBiz.co.za’ that
serves as a networking platform
for small business owners and
provides ongoing support in
numerous aspects of business.
We also have a fully integrated
electronic banking application
that incorporates payroll, as well
as accounting, all accessible via a
single platform,” Smith adds.
For more information about our
Nedbank Retail Banking offering
please call Sharon Smith on
+27 21 928 2000 or send an email
to sharonsmi@nedbank.co.za
49
WESTERN CAPE BUSINESS 2017
FOCUS
Accessible
onsite banking
Nedbank is happy to help its clients learn
to better manage their money.
Nedbank@Work aims to make a difference in the communities
in which we operate through financial wellness education
for all employees in both the private sector and government.
This is done through tailored financial fitness and consumer
education training. Our continuous involvement in corporate social
programmes in communities throughout the Western Cape also
supports growth and development.
How Nedbank@Work works for you, the employee
It’s hard to focus on anything if you are having personal financial challenges
like needing a personal loan, providing for school or university
fees, or for unexpected costs like funerals.
Unfortunately, dealing with a lot of these worrying financial issues
takes time and energy, and more often than not they can only be
sorted out during office hours, when you don’t have time.
That’s where Nedbank@Work comes in:
Nedbank@Work makes convenient banking at your workplace possible.
But, we offer more than just the convenience of having a relationship
banker on site to open accounts and address queries; we also help
you understand your financial position and work with you on a plan
to reach financial fitness.
What are the benefits of Nedbank@Work?
• You have access to a dedicated sales consultant, whose role is to
establish convenience and ensure the best service delivery for all
employees.
• Our financial fitness and consumer education training provides you
with the services and expert advice you need to help you better
manage your personal finances, make provision for unexpected
circumstances, provide for
your children’s education, etc.
• The Financial Fitness Trainer
will also be able to assist you
when it comes to improving
your credit ratings and managing
your budget.
• You also get great-vaue
banking products as well as
immediate access to your
salary if your company banks
with Nedbank.
• Peace of mind as a result of
financial well-being.
• We’re continuously there on
site, making it that much easier
to access and expand on and/
or enhance your existing suite
of banking products.
• And because we bring the
bank to your workplace, you
don’t have to waste your
lunchtime by going to the
bank to wait in long queues.
Any company or government
department interested in offering
the Nedbank@Work value to
their employees can contact the
Area Manager, Shamima Nazeer
on +27 21 412 3478 or email
ShamimaN@nedbank.co.za
WESTERN CAPE BUSINESS 2017 50
Make the most of your
money with our local and
international expertise
At Nedbank Financial Planning and Nedbank Private Wealth
we care about your financial security and goals.
FOCUS
This means ensuring that you have a plan to cater for your
circumstances as your needs evolve and change. We provide
clients with holistic financial planning and a range of services
to support this. As our client, you can build wealth by aligning
your decisions with your deepest values and highest aspirations.
We offer financial advice that is customised to each client’s needs.
For some clients, this is about establishing a financial plan, and for
others it may be about customised international estate planning
structures and intergenerational wealth transfers.
Based on your needs and circumstances, a Nedbank Financial
Planner or a dedicated Wealth Manager can help you make the
most of your money. To become a Nedbank Private Wealth client,
you need to earn at least R1.5-million per year and/or have R5-million
of investable assets. But if you don’t yet qualify, you can still benefit
from our specialist expertise through Nedbank Financial Planning.
We are here to help put a plan in place to grow your money to
achieve your financial aspirations.
Your Nedbank Financial
Planner and Nedbank Private
Wealth Manager have access to
specialist teams who can help
you:
• Structure sound estate and
succession plans to protect
your own interests and the
interest of your family
• Grow your money by investing
in a range of top local and
offshore investments, including
using our specialist stockbroking
service
• Protect your personal and
business assets against life’s
uncertainties through shortand
long-term insurance solutions
• Access your money whenever
and wherever it suits you
through a full range of local
and international banking
services available through a
single point of contact;
• Give your wealth a life beyond
yours by leaving a legacy with
our philanthropy services
Contact Nedbank Financial
Planning on 0861 238 887 or
contact Nedbank Private Wealth
on 0860 111 263.
Visit www.nedbank.co.za.
51
WESTERN CAPE BUSINESS 2017
FOCUS
Old Mutual’s
Provincial Management Board
Old Mutual’s Provincial Management Board (PMB) was created to enable positive futures
through collaboration at all levels of the organisation.
What are the Provincial
Management Boards?
Each province in South Africa
has a board that is served by an
Old Mutual Exco member and
representatives from the business
units, including Corporate, Retail
Affluent, Retail Mass, Old Mutual
Investment Group, Mutual & Federal
and Nedbank.
What is their objective?
The boards were established in order
to drive priorities and performance
in the regions. Our key objective is to promote
collaboration and efficiency by aligning projects,
decisions and resources of the different business
units in the regions. This is to help Old Mutual
South Africa (OMSA) execute its strategy in the
regions with greater effectiveness.
The boards enable us to maximise synergies and
cross-fertilisation between the different businesses
in the regions and allow us to approach customers
and the communities we serve as one green group.
They also play an important role in building our
brand and reputation:
How do they benefit the communities you
operate in?
Through the relationships they manage, the
Provincial Management Boards play a key role
in positively impacting South Africa’s socioeconomic
development in the regions.
It is key to our corporate culture that we strive
to improve the lives of people and uplift the
communities we serve, and we believe that this
helps to keep the OMSA fortress strong.
Savarion Arendse,
Provincial
Management Board
Chairman
We also fully support the National
Development Plan (NDP) as, for us, the
fundamental objectives of the Plan
(reducing poverty, unemployment
and inequality) can best be achieved
through forging healthy public and
private partnerships.
How important is networking
in order to achieve the Board’s
objectives?
We believe strongly in the importance of
networking. Senior members of OMSA
as well as the Old Mutual Investment
Group go on roadshows across South Africa a couple
of times a year to visit various regions and meet with
Provincial Management Boards, key stakeholders
and employees.
The main objective is to build strong relationships and
networks, and then to share these insights and updates
with our colleagues throughout the Old Mutual group.
Who makes up the PMB membership and
what are their roles and responsibilities?
The PMB comprises senior leadership of each
business unit represented in the province, in addition
to senior leadership (regional managers) for Nedbank
and Mutual & Federal, as well as the OMSA Exco.
The roles and responsibilities of the PMB
chairperson is as follows:
• Fostering collaboration.
• Removing obstacles to the PMB’s successful
delivery, adoption and use.
• Maintaining at all times the focus of the PMBs
on the agreed scope, outcomes and benefits.
• Monitoring and managing the factors outside
the PMB’s control that are critical to its success.
WESTERN CAPE BUSINESS 2017
52
Old Mutual SuperFund –
A Comprehensive Retirement
Solution
FOCUS
Old Mutual Corporate has developed a flexible and dynamic retirement savings umbrella
fund that offers substantial employee benefits – at the same time helping the company to
grow their appeal as an employer of choice.
Help your employees save for retirement
Every business in SA needs to incentivise and enable
its employees to save for their future – not only for
the wellbeing of those employees, but also to help
South Africa build a savings culture.
By making employee benefits more accessible,
flexible and affordable than ever before, Old Mutual
SuperFund offers a simple way for businesses to help
their employees save for retirement.
Old Mutual SuperFund is as unique as your company,
and delivers exactly the right solution, at the
right price, tailored to the needs of your business and
its employees – regardless of the size or diversity of
your workforce.
It does this by means of three simple, distinct and
highly effective retirement funding and risk cover
solutions, each with its own, flexible level of member
and employer choice.
As a result, Old Mutual SuperFund has made
employee benefits a reality for businesses of every
shape and size across South Africa. And it can do the
same for your business.
Why should you invest in employee
b e n e fi t s
Offering employee benefits unlocks significant
competitive advantages, not least of which is an
enhanced appeal as an employer of choice, so you
can compete effectively for the best talent.
• Adapts to the
changing needs of
your business;
• Integrates seamlessly
into your business
and payroll processes;
• Has simple eligibility
requirements to
maximize employee
access;
• Offers transparent,
simple and affordable
fees*;
Clint Beech,
Regional Sales
Manager
• Uses a risk-free authorised collection payment
processes; and
• Comes with dedicated, professional support.
For more information on Old Mutual SuperFund
visit www.oldmutual.co.za/superfund or speak
to your financial adviser.
* When comparing employee benefits costs with that of
our competitors, be sure to consider all the fees involved,
including those for investment management, advice,
and administration.
And when your employee benefits are delivered
through Old Mutual SuperFund, the benefits are
compounded because the solution:
53
WESTERN CAPE BUSINESS 2017
FOCUS
A passion for people
Old Mutual’s success as a trusted investment, savings, insurance and banking group
since 1845 has been built on financial acumen and dedication. Another critical aspect of
the Old Mutual business is the passion for the communities we serve, says Helene Africa,
Provincial Manager at Old Mutual.
How did the Mass Foundation Cluster
come into being?
Old Mutual is 170 years old but the Mass Foundation
Cluster started 40 years ago, primarily because we
identified a need in the middle-income market for
our products. Employers also asked for something
for their clients who were not in the high-income
bracket, such as a simple funeral product or even a
basic savings or retirement product.
As our clients evolved and our initial client basket
of two products became increasingly bigger until
we had a whole basket of products, even down to
education. We try to listen to our clients and help
them to progress with their financial life as their
needs change.
Today the Cluster includes the short-term
insurance product iWYZE through to financial
support products such as loans, consolidation
products and any financial need a client might have.
In the past clients would have to go to a competitor
for assistance with a loan and then other financial
products as their needs changed, so we realised
that we needed to look at a client’s financial needs
from a wider perspective to be able to retain them
as clients and also to accommodate their growing
needs. We operate through four divisions:
• Foundation Business Unit
• Retail Mass Business Unit
• Old Mutual Finance Business Unit
• iWYZE
However, our focus and vision continues to be centred
around our clients as we aim to be their most
trusted partner. As our customers are at the hub of
our business we constantly look at ways of earning
and building on their trust by delivering on time and
delivering value-for-money prodicts.
In what ways
has your business
adapted to
suit your clients
changing needs?
We launched new
technology aimed
at improving service
to our customers, as
we moved from a
manual environment
to paperless and
Helene Africa,
Provincial Manager
harnessing the power of technology. All our
advisers are now equipped with laptops and
they run everything through this, instead of
paper. Information is now captured from point
of sale in order to reduce errors and to prevent
a paper application from being lost. It has been
a big innovative move and shift for us but it was
essential as young people in particular want to do
things online without face-to-face interaction, so
it’s important to satisfy that need. This came about
because we always listen to what our clients want.
We are also constantly researching the digital
environment and what our future client is going
to look like.
What are some of the challenges you face
in doing your business?
Insurance is not a product that sells itself, and clients
don’t come knocking on your door. You have to go
out and create awareness about why these products
are important for them to consider.
The middle-income segment don’t necessarily
have lots of disposable income to cover
the costs related to death in a family or a serious
WESTERN CAPE BUSINESS 2017
54
FOCUS
injury or illness, so the need to have insurance is
definitely out there. However, there is a big
educational need, which is why we went on a
journey with our Financial Education which offers
the public information on money management
as well as financial workshops, and also employ
facilitators to train communities, clients or stakeholders.
Even if we don’t bring any business from these
workshops and initiatives, they have a wider
micro economic benefit, and this impacts on the
macro economy, so we see it as an important project.
However, once you start speaking to people it’s a
whole new world and they suddenly realise they have
been wasting money for a long time that could easily
have been used to protect or build their financial life.
It’s important to us to help people who aren’t earning
much to realise their dreams and to reach their goals.
What we aim to bring to the attention of our clients
is the fact that, when it comes to your finances, if you
make a mistake you won’t pay for it now – instead you
really pay for it in 10 to 15 years time. Unfortunately a
lot of people wake up too late and suffer financially.
This is also why it’s critical to get out there to the
young workforce in particular, because if we can
help people to start out with the right decisions and
products from the start of their career it will make a
tremendous difference to their financial future.
effort to work in and create opportunities to give
back through staff volunteering. Staff who want
to participate can choose if they want to give of
their time, or they can give from their paycheck. To
honour their contribution, Old Mutual then matches
that amount at the end of the year and distributes it
to the relevant communities.
We also make funds available for our staff
members who have been working on community
projects. This is our Staff Volunteerism programme
where Old Mutual will donate up to R20 000 to a
project if our staff are supporting it with their time.
This obviously gives back to the community, but it
also allows Old Mutual to honour and support our
staff who give of their time through a meaningful
cash donation.
What is different about how you do your
business?
With our Mass Business unit we pay our advisers
salaries, not commission. We find that salaried
staff are better able to offer the correct service
to the public and that distinguishes them from
commission earners who are, perhaps understandably,
motivated by their commission. By paying them a
salary we believe it allows them to really look after the
client and to build trust as a financial adviser, not
just a sales person. Our advisers are then better able
to sell a client what they need and what they can
afford, not what the salesperson wants in terms of
their commission.
Our aim is to provide that really good service
because then we start to build a good relationship
with the client and they will then hopefully want
to seek our advice for their other future needs. We
see it as really caring for their wellbeing and then
going on a journey with the client, and by seeing
them as a person.
We’re also very passionate about our people -
our clients and our staff – and if you walk into our
business you will get the sense for how they care.
That spirit has really helped to make us successful.
How else does Old Mutual give back to the
community?
We are passionate about giving back to the
communities in which we work, so we make an
55
WESTERN CAPE BUSINESS 2017
FOCUS
Old Mutual’s debt consolidation
Old Mutual Finance has developed a unique plan to help clients who are battling to
survive financially to consolidate their debt and save thousands of rands on initiation fees
and administration charges – helping clients to manage their finances in a smart way.
What makes our lending business
different?
At Old Mutual Finance, we have a deep rooted
respect for our customers, for their circumstances,
needs and culture. It drives us to treat customers
with dignity, provide outstanding service and to do
our utmost to provide the best financial solutions.
Old Mutual is known as the savings and
assurance powerhouse of South Africa. We also
recognise that lending is a reality for most people.
Generally lending and savings are seen as conflicting
needs and offerings. Old Mutual Finance therefore
takes an holistic view of customers’ savings, risk and
lending needs by providing a balanced basket of
products that meet these needs.
What are our lending principles?
• Affordability is the cornerstone of our lending.
Debt is often seen as bad. However, if used
responsibly and prudently, debt can open many
doors and opportunities for customers – think
about loans for education, home extensions etc.
It is therefore vital that customers understand their
repayment obligation and be able to afford the
loan instalments over the period of the loan.
• Financial education.
The financial services industry is complex and
financial terms can be equally confusing. During the
loan application process our Financial Consultants
provide basic financial education to this end.
• Spending time.
We prefer spending more time with customers
to ensure that they understand the loan process
and take their obligations under the agreements
seriously. Applying for a loan shouldn’t be as easy as
“buying a loaf of bread”.
Old Mutual Finance
has opened more than
250 new retail branches
conveniently located in
shopping centres, CBD’s
and near transport nodes,
offering lending, transactional
banking, insurance
sales and client servicing.
Each client receives a
free copy of their Experian
credit bureau profile as
part of our consultation,
along with guidance
Buyisile Keli,
Senior Provincial
Manager at Old
Mutual Finance
on what to do if certain of their bureau information is
incorrect. As part of our ongoing commitment to
financial education, clients are also informed about what
kinds of behaviour can improve their credit records.
Do the smart thing and contact your nearest Old
Mutual Finance Branch, and get your plan to financial
freedom.
Visit www.oldmutualfinance.co.za
to find your nearest branch or call us on
086 000 0886
WESTERN CAPE BUSINESS 2017
56
Advice that matters
FOCUS
Old Mutual has a dedicated team of advisers who are trained and accredited to offer you
expert advice backed by the experience of Old Mutual’s investment professionals.
You know the value of advice in your respective
field of expertise. At Old Mutual, we are not
business specialists, but we do know a lot about
financial planning.
We have a team of financial advisers who can give
you the right advice at the right time and create
financial security for you, your business and your
family. A personal financial adviser will meet with
you at your convenience, get to know you and
keep abreast of changes in your life and business,
in order to ensure your financial plan stays aligned.
Old Mutual provides financial advice for middleand
high-income customers through our
focus on our long-term savings, investment and
protection of business. We do this by delivering on
our promise to be every customer’s most trusted
financial partner, helping them to achieve their
lifetime goals.
We also believe true wealth is about more than
just how much money you have. It is about
being able to live the life you want. Our wealth
OLD MUTUAL PERSONAL FINANCIAL
ADVISERS
• Undergo mandatory Financial Advisory and
Intermediary Services (FAIS) compliance.
• Complete extensive training.
• Have access to in-house resources including
specialist advice on legal and tax issues.
• Have access to research and advanced
financial needs analysis and planning software.
management business
has a comprehensive
offering tailored to
meet the needs of high
net-worth individuals
through personalised
financial service to every
customer.
We build on our
heritage of trust
and accountability to
help our customers
thrive by enabling
them to achieve their
Barend van der
Westhuizen,
Regional General
Manager, PFA
Western Cape
financial goals. Our team of financial experts offer
you peace of mind in partnering with a company
with a track record of looking after our customers.
For more than 170 years, Old Mutual has been meeting
the diverse financial needs of millions of South
Africans. Let us do it for you as well.
Physical address: Carl Cronje Drive, Southgate
Office Park, 2nd Floor, Tyger Waterfront,
Bellville 7530.
Email: bvanderwesthuizen@oldmutual.com
Telephone: 021-974 8607 (office)
57
WESTERN CAPE BUSINESS 2017
Special Economic Zones are
boosting growth on the West Coast
Dedicated development hubs on the West Coast are tapping into the potential of two of
the fastest-growing economic sectors in Southern Africa – oil and gas and manufacturing
for the renewable energy sector.
The Department of Trade and Industry (dti) is the
lead agent in the creation of Special Economic
Zones (SEZs), which are part of the national
Industrial Policy Action Plan (IPAP). SEZs are designed
to attract investment, create jobs and boost
exports. Industrial Development Zones (IDZs) are
a type of SEZ.
Several incentives are available to investors in
SEZs. These include tax breaks from the South
African Revenue Service (SARS), subsidised interest
rates from the Industrial Development Corporation
(IDC), subsidies for employees earning below a
certain level and subsidies for the training of the
workforce, incentives and grants from the dti, and
incentives from national electricity utility Eskom.
Other benefits might include a building allowance,
employment incentives and the fact that an SEZ is
a customs-controlled area. Skills transfer is another
stated aim behind the SEZ programme.
Specific incentives relating to energy savings
and reductions in environmental impact are available,
both from Eskom and the dti. Within the dti’s
Manufacturing Competitiveness Enhancement
Programme there is a Green Energy Efficiency Fund,
all of which are designed to make investment – of
the right kind – more attractive.
Atlantis
The suburb of Atlantis was one of apartheid’s bad
experiments that left residents stranded far north
of the metropolis with no industry or employment
to speak of. The planned creation of an SEZ with
a focus on green technology is already changing
that reality. The SEZ is a collaboration between the
Western Cape Provincial Government (whose unit
GreenCape is taking the lead), the City of Cape Town
and the dti.
Although the SEZ has not officially been established,
several important investments have been
made into the area and the idea is gaining traction.
Spanish wind-tower manufacturer Gestamp
Renewable Industries (GRI) has added to its initial
investment of R300-million, which created 200
jobs. Others include Resolux (R25-million), which
WESTERN CAPE BUSINESS 2017
58
SPECIAL FEATURE
makes internal components of
wind turbines; Kaytech (a geotextiles
firm) which has recently
expanded (R130-million), as has
Skyward Windows (double glazing,
R50-million). All told, there
has been about R680-million
invested Atlantis in the green
technology field.
Chinese giant Hisense established
a high-tech factory in Atlantis
in 2013, and is keen to expand its
investment down the value chain,
especially using green technology
to make more efficient fridges and
television sets.
The proposed Atlantis Green
Tech SEZ has several particular incentives
available. These include:
• Financial measures including
an electricity tariff subsidy
• Exemption from land-use
application fees
• Assistance from the City of
Cape
• Town for companies to obtain faster environmental
authorisation from the
Department of Environmental Affairs and
Development Planning
The state (through the dti) is likely to pass legislation
that requires developers to increase the level of local
content on the solar panels or wind turbines that are
used in renewable energy projects. Any movement
in this sphere could benefit Atlantis.
Saldanha Bay
The Saldanha Bay Industrial Development Zone
(SBIDZ) has formally been in existence since 2013
and has ambitious plans to tap further into the
burgeoning oil rig maintenance and repair business.
About 130 rigs round the Cape every year, and at the
moment South Africa attracts only a tiny fraction
of them to its ports.
The SBIDZ fits neatly into two over-arching
visions: Operation Phakisa (the national
government’s strategy to unlock value from the
“Oceans Economy”) and Project Khulisa, the targeted
growth strategy of the Western Cape Provincial
Government, which includes servicing and repairing
of oil rigs as a priority. South Africa currently
accounts for 1% of the global market of ship repair
and refurbishment.
Priority sectors at Saldanha are upstream oil
and gas and marine engineering and services, and
32 companies have already signed non-disclosure
agreements as investors in the IDZ. The IDZ is run
by the SBIDZ-Licencing Company, which works together
with the Transnet National Ports Authority
(TNPA) on many joint projects.
These are being undertaken to create good conditions
for possible investors. Quay-side infrastructure
has been upgraded including a wastewater
treatment plant and a new road and bridge over
the MR559. Fencing and access control points in
support of the customs zone are being constructed.
Three major projects are under way or in the planning
stage and are overseen by national government,
the Southern African Oil and Gas Alliance (SAOGA)
and SBIDZ-LC:
Offshore Supply Base
Basil Read won the contract to extend TNPA’s
general maintenance quay to create an Offshore
Supply Base (OSB). The quayside is 294m with a
further 3.8ha being available onshore for support
operations. It will cater for ships and rigs looking for
oil along both coasts of Africa, and any other rigs
passing along the coast.
Berth 205
This is the name of a planned specialised rig and
vessel repair quay that will be able to cater to the
latest design in oil rigs.
Mossgas Jetty
Equipment and vessel-servicing facility: this
planned 1 000m-long jetty will be perpendicular
to the shoreline of the Port of Saldanha Bay. It
will have a maximum width of 120m and be able
to serve several ships or rigs in need of repairs or
servicing at the same time. In addition, there will
be a floating dock. TNPA has done several studies
on the possible location of the jetty and the local
and international market will be canvassed for
companies to do the work.
59 WESTERN CAPE BUSINESS 2017
FOCUS
Celebrating export
excellence
The well-established Western Cape Exporter of the Year Competition, hosted by the Cape
Chamber and sponsored by the ECIC, highlights the diversity of export products
originating in the province.
Finalists and winners at the ECIC/Cape Chamber Western Cape Exporter of the Year Competition.
Abagold Ltd, the Hermanus company that breeds, grows
and exports abalone by the ton, was declared the big
winner at the ECIC/Cape Chamber Western Cape Exporter
of the Year Competition at the gala dinner held on 13
October 2016 at the prestigious Cape Sun.
The Cape Chamber, which has served as the host for the awards
for 26 years, serves, enables and leads business in the region. The
Export Credit Insurance Corporation (ECIC) is the headline sponsor
of the competition and an underwriter of export credit loans and
investments.
The theme for the evening was
“out of this world”, and it was indeed
an intergalactic experience.
Incidentally, as the first African into
space, Mark Shuttlelworth’s company,
Thawte, was a previous competition
winner (and sold to VeriSign
shortly thereafter for R3.5-billion).
The 12 finalists for the 2016
awards included:
WESTERN CAPE BUSINESS 2017
60
FOCUS
• Abagold Ltd, the world’s largest
abalone producer outside
Asia
• Afrinatural Holding, producers
of natural botanical ingredients
from all over Africa
• All Women Recycling, transforming
plastic waste into
beautiful handicrafts
• Bassalicious, producers of a
range of vibrant and tasteful
natural sauces
• Chimpel, an innovative design
and manufacturing company
producing exotic leather
merchandise
• Franz Falke Textiles, producers
of socks and fine hosiery
• Geo Data Design, a geospatial
solution provider providing
industry-leading geographic
solutions tailor-made for
Africa
• JF Hillebrand, an international
service provider specialising
in the logistics of beer, wine,
spirits and keg supply chain
management
• Klein Karoo International,
the world’s leading producer
of ostrich goods, including
meat, leather, feathers and
by-products
• Mervyn Gers Ceramics, specialits
in bespoke dinnerware
designed in collaboration with
award-winning chefs
• Oh Voila design, manufacture,
retail and wholesale of
affordable fashion jewellery,
accessories and corporate
handmade gifts
• Peninsula Drums, specialises
in the manufacture and
reconditioning of metal
and plastic drums as well as
bulk containers
• Technical Systems, a key manufturer and world-wide distributor of
livestock feeding equipment
Abagold Ltd won both the overall prize for excellence in exporting, which
included R50 000 in cash and the Cape Chamber award for the best nonmanufacturing
company.
For the first time in the history of the competition, there was a tie
for second place with Franz Falke Textiles, which won R20 000 worth
of IT assistance from Auric Consulting, and Geo Data Design winning
a R20 000 branding refresh supplied by Fable Design (also an Auric
Consulting company).
The Transnet Port Terminals Trophy for the best engineering/manufacturing
company went to Franz Falke Textiles (Pty) Ltd. The company
makes 8.5-million pairs of running socks, mostly for the United States
market and is the first textile company to be an export winner for
many years.
Geo Data Design (Pty) Ltd, a company that interprets satellite images
and information, won the Credit Guarantee Small Exporter Trophy
and the Gerald Wolman Trophy for excellence in exporting to African
countries. It also shared the overall second prize with Franz Falke
Textiles (Pty) Ltd.
Another double winner was Technical Systems (Pty) Ltd, which
manufactures automated feeding systems for intensive pig and poultry
farms. It won the Bonitas Innovation Trophy and the SAGITA Trophy
for excellence in design.
The Nedbank Trophy for Transformation went to Bassalicious (Pty)
Ltd, a company that produces and exports quality sauces.
The Exporter of the Year is not judged on the volume or value of
product produced, but on excellence in exporting. This creates a level
playing field for both big and small exporters.
For the 2016 competition, we did some arithmetic and found that
the entrants earned more than R3-billion in foreign exchange for the
Western Cape. The finalists alone brought in more than R1.7-billion! Add
to that the previous entrants that continue to export, and we are looking
at many billions of rands brought into the Western Cape economy.
Also, the provincial government and the City of Cape Town are keen
to promote business and go out of their way to make it a little easier
to get things done. The Chamber believes that this kind of teamwork
and quality of enterprise and innovation shown by our exporters will
make for a better future for us all. Here’s to the 27th Exporter of the
Year in 2017!
For more information on the 2017 Exporter of the Year competition,
please email Mary-Jean Thomas-Johnson at mary-jean@
capechamber.co.za or contact her on +27 21 402 4300.
61 WESTERN CAPE BUSINESS 2017
Skills development
A number of investors are driving skills development in the province.
The Western Cape has two problems relating to
employment: not enough work for unskilled
workers, and not enough skilled workers to take
up available jobs. This double-sided challenge
is a legacy of apartheid and it exists throughout
South Africa.
Although the province has higher overall ratios of
highly skilled and skilled workers than the national
averages, less than 20% of the construction industry’s
workforce in the Western Cape is categorised
as skilled or highly skilled (Quantec, 2013). According
to a national business conditions survey conducted
in early 2016, a skills deficit is hampering the
construction industry.
Construction has been one of the best performing
sectors in the Western Cape economy for a number
of years, so improvement in this sphere is vital.
The food sector is the other important area where
work has to be done to impart skills to the workforce.
The Western Cape Provincial Government has
listed skills development as one of four key “enablers”
of the regional economy. A specific intervention
relevant to the construction industry is offered by
the provincial Department of Transport and Public
Works. Targeted training for emerging contractors
is presented in regional centres like Riversdale and
Worcester, and in Piketberg and Saldanha. The fourweek,
modular course, which covers issues such as
site management, safety and enterprise development,
allows contractors to continue running their
businesses while they study. The course supports
the Expanded Public Works Programme (EPWP).
Another provincial initiative was launched in
October 2016: the Western Cape’s Apprenticeship
Game Changer. Announced at the annual meeting
of the Premier’s Council on Skills, the Game Changer
aims to introduce 32 500 qualified apprentices into
the labour market by 2019. R1-billion has been allocated
over a three-year time frame. Businesses
have been asked to identify the specific skills they
need, so for example the oil and gas sector needs
welders certified to a certain level.
A range of interventions at national and regional
level have been launched to tackle the problem in
the public and private sphere:
• Six of South Africa’s biggest construction
companies have established a R1.25-billion
skills fund
WESTERN CAPE BUSINESS 2017
62
SPECIAL FEATURE
• The national Department
of Higher Education and
Training (DHET) declared the
period starting in 2014 as “The
Decade of the Artisan” with
a goal of producing 30 000
per year by 2026 (the current
figure is about 13 000)
• Sector Education and Training
Authorities (SETAs) collect
dues from companies in a particular
industry (Wholesale and
Retail, Banking, Construction,
Chemical Industries, for example)
in order to promote
training in that industry. A
percentage of this money is
returned to the company if
that company can show that
they have a workplace training
plan. The rest of the money
is used to offer skills training
• The National Skills Authority
(NSA) works with SETAs in carrying out the
National Skills Development Strategy (NSDS). The
Human Resource Development Council of South
Africa (HRDCSA) is an over-arching body that
aims to give guidance to the many institutions
working on skills development and training. It is
managed by the DHET. The HRDCSA has identified
five key areas where the skills pipeline must
be improved: access to TVET colleges; intermediate
skills (artisans in particular) and professionals;
production of academics; collaboration between
industry and educational institutions in research
and development; worker education and
foundational learning.
The strategic goal of the DHET is to create “a
capable and skilled workforce for inclusive growth”.
There are many institutions supporting this goal in
the Western Cape, including three academic universities,
one comprehensive university, one university
of technology and six Technical and Vocational
Education and Training (TVET) colleges. Unisa, the
country’s biggest distance learning institution, has
a strong presence in the province with a campus in
Cape Town and a service centre in George.
TVET colleges have been asked to concentrate
on 13 trade areas, including bricklayers, millwrights,
boilermakers and riggers. R16.5-billion has been allocated
by national government to skills development
and infrastructure over the medium term.
Technology
CiTi, the Cape Innovation and Technology Initiative, is
a Western Cape Provincial Government initiative. CiTi
is a technology hub with several components: The
Barn (supporting start-ups); VeloCiti (enterprise and
entrepreneurship development); CapaCiti (technology
skills development and placement).
The renewable energy sector holds great promise
for economic growth, and it should provide many
jobs but specific training is required. In collaboration
with the German government, the DHET has
invested more than R100-million in the South African
Renewable Technology Centre (SARTEC), a teaching
unit of the Cape Peninsula University of Technology
(CPUT). The Bellville campus of CPUT is training wind
turbine service technicians and providing qualifications
for trainers in the same field.
Stellenbosch University (SU) hosts the Centre for
Renewable and Sustainable Energy Studies (CRSES)
and the University of Cape Town has the Energy
Research Centre.
Young people are at the heart of the provincial
government’s drive to widen access to information
technology. As of 2016, a total of 181 MOD centres
had been established by the Department of Cultural
Affairs and Sport: MOD stands for Mass participation;
Opportunity and access; Development and
growth programme.
This is part of a broader, R9.4-billion, provincial
government plan to assist young people in areas
such as access to broadband, internships offered,
and the acquisition of technical skills.
TVETs and colleges
TVET colleges exist to impart skills that are relevant
to the workplace. The College of Cape Town has
eight campuses and its selection of courses gives
63 WESTERN CAPE BUSINESS 2017
SPECIAL FEATURE
a good illustration of the range
of studies available to students
at TVET colleges. Courses at CCT
range from engineering (electrical,
civil and mechanical), through
travel and tourism, hospitality, hair
care, beauty therapy and art and
design, to business studies, information
technology and education
and training. The college
has three residences in different
parts of the city. Career guidance
is offered and the college has a
work placement programme
for graduates.
Northlink College is in Cape
Town’s northern suburbs and
is an innovator in workplace
monitoring. It has three business
units that give students experience:
Hair and Cosmetology, the
Clothing Factory, and a restaurant
and conference centre. The
Fitting and Machining Centre of
Excellence at Wingfield has the
latest equipment.
False Bay TVET College
has campuses in Fish Hoek,
Muizenberg, Mitchells Plain,
Khayelitsha and Westlake.
Engineering skills are a key focus
for this college, together with
hospitality. Appropriately, given
its geographic locations, False
Bay TVET also teaches Yacht and Boat Building. The
college has an enrolment of more than 10 000.
Outside the Cape metropole, Boland College
looks after Stellenbosch, Worcester, Paarl and
Caledon, while the Southern Cape College covers
a wide area, from George to Beaufort West. The West
Coast College also has a big catchment area.
Private colleges such as MANCOSA (Management
College of Southern Africa) often specialise in particular
fields. In this case, a range of certificates, diplomas
and degrees in business, commerce and
administration is presented at five sites around South
Africa, including Cape Town. The business training
programmes of Africa Skills Private College include
courses on leadership, occupational health and
safety and new venture creation.
Universities
In 2014, a total of 5 680 engineers qualified from
South Africa’s 26 universities. A further 2 667 computer
scientists were capped but these numbers are
far from adequate to cater to South Africa’s economy.
Western Cape universities are very aware of the need
to align their courses and research programmes with
WESTERN CAPE BUSINESS 2017 64
SPECIAL FEATURE
the needs of the economy. However, pure research
cannot be ignored and in this area all three of the academic
universities are strong: the University of Cape
Town, Stellenbosch University and the University of
the Western Cape.
A Master of Business Administration (MBA) is
offered both by the Graduate School of Business
at UCT (which also has an executive MBA) and the
University of Stellenbosch Business School. USB also
presents an MPhil in Development Finance.
The National Nanoscience Postgraduate
Teaching and Training Platform is based at the
University of the Western Cape in Bellville, with master’s
degrees in nanoscience and nanotechnology
on offer. UWC also has 14 SARChi Chairs, including
Nano-Electrochemistry and Sensor Technology,
Bioinformatics and Human Health Genomics and
Microbial Genomics.
There are three World Health Organisation (WHO)
Collaborating Centres at UWC and the Centre of
Excellence in Food Security (with Pretoria University)
is funded by the National Research Foundation
and the Department of Science and Technology.
Biotechnology and food security come together in
the Plant Biotechnology Research Group at UWC,
which studies ways of developing crops that can
resist drought.
This kind of focus on specific challenges facing
society in South Africa is an example of universities
working to make their research relevant.
The University of Cape Town is offering a
course in Health Innovation that encourages talented
young South Africans to find solutions to the
country’s health problems. The MPhil in Health
Innovation falls under the Division of Biomedical
Engineering and is open to anyone with a four-year
degree in a relevant discipline, which could be anything
from medicine to engineering.
Several master’s degree programmes at UCT
aim to address the particular challenges of South
African society: the Climate Change and Sustainable
Development degree can be tackled through any
one of the university’s six faculties and in 2017 a new
degree will be on offer, a Master’s in Public Health
(Faculty of Health Sciences).
Another UCT degree that tackles a specific challenge
faced in the South African economy is a Master’s
in Sustainable Mineral Resource Development.
Stellenbosch University is another Western Cape
institution that is tackling sustainability: a diploma
will soon be on offer in this discipline, through the
School for Public Leadership. The university also intends
offering an MSc in Food and Nutrition Security
that will tackle the problem from several angles.
In George, students have access to courses offered
by the Nelson Mandela Metropolitan University
(NMMU): Saasveld is home to the School of Natural
Resource Management and the York Street Campus
delivers courses in business and social science,
accounting and business management.
Among the new courses on offer at the Cape
Peninsula University of Technology are diplomas
in geomatics (one of South Africa’s most soughtafter
skills to aid surveyors, town planners and civil
engineers), clothing and textile technology, and
horticulture and landscape architecture.
65 WESTERN CAPE BUSINESS 2017
PROFILE
College of Cape Town
The forward-looking college has a history dating back to
the early 20th century.
Louis van Niekerk,
Principal of the College
of Cape Town
The College is a
public Technical
and Vocational
Education &
Training (TVET)
College, under
the Department of
Higher Education
and Training.
Qualifications offered
are accredited,
affordable and
quality assured by
Umalusi, various
SETAs and SAQA.
Description of educational offerings
The College is a leading provider of education and
training in mainly the Technical and Vocational
Education and Training (TVET) band and has much
to offer students and prospective partners as an
alternative to Basic and Higher Education and
Training. Qualifications include skills programmes,
technical, vocational and occupational training
that lead to recognised, accredited qualifications
that are in high demand by commerce
and industry.
Students are able to pursue a range of courses in
the following disciplines:
• Art and Design
• Beauty Therapy
• Building and Civil Engineering
• Business Studies
• Education and Training
• Electrical Engineering
• Hair Care
• Hospitality
• Information Technology
• Mechanical Engineering
• Travel and Tourism
Location of facilities
The College is situated in the central area of the
Peninsula. The central office is located in Salt
River, and the College of Cape Town also has
three residences.
It has eight campuses located in:
• Athlone
• Cape Town city centre
• Crawford
• Gardens
• Guguletu
• Pinelands
• Thornton
• Wynberg
Support services
Students at the College may access a variety of
support services to assist them within coping with
problems and difficulties, whether personal or academic.
These services are provided free of charge
and include:
• Counselling
• Academic support
• Health education workshops
• Assistance in applying for loans (loans are not
supplied directly by the College)
WESTERN CAPE BUSINESS 2017
66
PROFILE
• Work placement services
• Social and cultural services
Key facts and figures
Year established: The College of Cape Town is
the oldest Technical and Vocational Education
and Training institution in South Africa with a
proud history dating back to the beginning of the
20th century.
As the name suggests, we are based in Cape Town.
Four former technical colleges, Athlone College,
Cape College, Sivuyile College and Western Province
Technical College, were officially merged on
1 February 2002 to become the College of Cape
Town. This arose from a rationalisation in TVET colleges
in which some 150 colleges around the country
were reduced to 50.
No of staff: 670 (full-time)
No of registered students: 14 379
Qualifications offered: Certificates, Higher
Certificates, Diplomas, UNISA B.Ed Degree
(Foundation Phase), Skills Programmes, Learnerships,
Accredited Trade Test Centre
CONTACT INFO
Key contact people:
Louis van Niekerk, Principal.
Wilfred Jackson, Chief Financial Officer.
Sharon Grobbelaar, Marketing Manager.
Physical address: 334 Albert Road,
Salt River, Cape Town 7945
Postal address: PO Box 1054,
Cape Town 8000
Tel: +27 21 404 6700 / 086 010 3682
Fax: +27 21 404 6701 / 086 615 0582
Email: info@cct.edu.za
Website: www.cct.edu.za
67 WESTERN CAPE BUSINESS 2017
INTERVIEW
Member-oriented
scheme strengthened
by high reserves
Christo Becker, Principal Officer of Selfmed, shares some
insights on the medical insurance industry.
Christo Becker
BIOGRAPHY
After completing his studies in
1996, Christo worked as a paramedic
in Cape Town and Port
Elizabeth (where he was seconded
to run the Eastern Cape
operation for Netcare911). He
furthered his career in healthcare
when he was appointed as
hospital manager for a hospital
in the Netcare Group. Christo
went on to manage a number
of other hospitals before joining
Selfmed Medical Scheme as the
Principal Officer in 2014.
Please provide an overview of Selfmed, including the
history and size of the organisation.
Selfmed Medical Scheme was established 50 years ago and it is one
of the older schemes in South Africa.
Providing coverage for about 8 000 principal members and 13 000
beneficiaries, we are one of the smaller schemes and we focus on providing
individual attention to our members. Our size allows us to do this.
Could you outline the different schemes?
Members are able to choose one of five medical aid options:
Selfnet – this entry-level product is our most affordable as it covers a
narrow band of benefits.
MedXX1 – a hospital plan that extends beyond the prescribed minimum
benefits and pays out at 100% of scheme rates for covered
in-hospital treatment and in-hospital doctor’s consultations.
Selfsure – an option that provides in-hospital and out-of-hospital
benefits and is a great choice for a family with young children.
Med Elite – a broader hospital plan that covers additional conditions
including greater coverage for oncology expenses, hip, knee and
back operations.
Selfmed 80% – 80% of bills relating to a wide range of conditions
are covered.
What is the solvency ratio of Selfmed and how does this
compare to other medical aid schemes?
Selfmed has a solvency ratio of 118%, which is way more than the 25%
mandatory requirement. We are one of the top schemes in the country
in terms of our reserves.
What differentiates your offerings from those of your
competitors?
Selfmed has a very strong member focus. As someone who has
previously worked as a paramedic and a hospital manager, I’m
passionate about healthcare. All of us share the passion and want
WESTERN CAPE BUSINESS 2017
68
INTERVIEW
to ensure our Selfmed members
receive good healthcare.
We are able to attend to requests
for ex-gratia payments
on a case-by-case basis and our
members appreciate knowing
that their health conditions are
not compared to other people’s,
but are evaluated individually.
Furthermore, because our
cash reserves are so high and
our systems (administration, call
centre and marketing, etc) are
managed internally, members
feel confident about the level of
service we can provide.
What is your view of the
National Health Insurance
(NHI) scheme and how do
you think it will impact private
healthcare in South
Africa?
We all support the idea that
healthcare should be accessible
to all, however, a number of issues
weren’t addressed in the White
Paper. These include what the basket of care will
look like and who will provide the care.
This is the first phase of a 14-year implementation
period and it is likely that the parameters of the NHI
will change during its implementation.
A specific risk for private healthcare providers
relates to the introduction of a one-payer system.
I don’t think people are going to be happy to take
the money they usually pay into a medical aid and
pay it into a centralised state-run system.
Given that the UK, with its lower unemployment
rate and higher number of taxpayers and health
professionals, struggles to deliver the desired level of
care via its National Health Service, it is unlikely that
that South Africa will have the reserves to roll out a
system that will rival private healthcare.
How does the South African healthcare
system compare internationally?
I believe that the private healthcare system in South
Africa – private medical care and medical insurance –
is equal to the best in the world. Many of our doctors
and medical professionals go overseas for training or
to attend medical conferences and we have some of
the most advanced medical equipment in the world
in our private hospitals. Furthermore, in countries like
the USA, medical care is far more expensive than it
generally is in South Africa.
Ideally, representatives of the entire healthcare
industry here should get together to discuss challenges
and collaborate on viable ways to solve
these so that quality healthcare can be made
accessible to more people.
Increased legislation, particularly legislation
relating to prescribed minimum benefits, has
meant that medical schemes are under increased
pressure though.
www.selfmed.co.za
69 WESTERN CAPE BUSINESS 2017
KEY SECTORS
Overview of the main economic
sectors of the Western Cape
Agriculture 72
Wine and grapes 76
Fishing 83
Mining 86
Oil and gas 88
Energy 92
Water 94
Manufacturing 98
Construction and
property development 104
Tourism 106
Banking and financial services 110
Information and
communications technology 118
Business process outsourcing 119
INTERVIEW
Focus on economic
game-changers
Western Cape Business spoke to Western Cape Provincial
Minister of Economic Opportunities Minister Alan Winde
about creating growth and jobs.
Alan Winde, Western Cape
Provincial Minister of
Economic Opportunities
BIOGRAPHY
Alan Winde became MEC for
Finance, Economic Development and
Tourism in May 2009, shortly after
the Democratic Alliance won the
Western Cape Province. Winde has
been a member of the Western Cape
Provincial Legislature since 1999. During
his first term he served as provincial
finance chairman and executive
committee member with the
Democratic Party. He has also
served as chief whip of the
official opposition in the West ern
Cape, as the DA spokesperson on
Environment and Planning and as the
deputy DA spokes person on Economic
Development and Tourism.
What is your brief?
Defining my job is easy. I am responsible for making provincial strategic
goal number one – creating growth and jobs, happen. Together with
my team, we’re looking at strategies to improve every facet of our
economy. We’re obsessed with making our region more competitive
and more compelling as a place to live, work and play.
When I came in for the second term, I was determined to become
the most accessible Ministry in South Africa, in touch with business
people and in the heart of the city. So we moved our office space to
a renovated ground-floor shop on Long Street.
What are your priorities?
We have identified a suite of economic game-changers. These include
getting rid of red tape so business can start and operate more
efficiently; securing stable energy for growth; improving broadband
access; and ensuring we meet the demand for skills.
For instance, in reducing red tape, in an area like the Voortrekker
Corridor space, how do we as government put pre-zoning in place? We
can do the environmental impact assessment (EIA), and the developer
submits a planning proposal. In this way, you enable an easier decisionmaking
process for developers. We need to put the levers in place so
that this process does not take six months, but six weeks.
Securing a reliable and affordable energy supply is also an important
enabler. In the Western Cape, our approach is to diversify our sources
of energy.
The Information Communication and Technology (ICT) sector is
growing at lightning speed. The Western Cape government’s incubators
at the Bandwidth Barns in Woodstock and Khayelitsha lead our
efforts to inculcate a culture of new tech innovations, led by driven
entrepreneurs, and there has been huge interest by the private sector
including French and British firms on the same mission. Barclays’ Rise
Cape Town supports fintech companies. They have put money into
WESTERN CAPE BUSINESS 2017
72
New York, London and Manchester, and also in Cape
Town. DVT’s app-testing facility just off the N1 is the
biggest in the southern hemisphere.
With regard to skills, we have an artisanal focus
and are aiming to produce 32 500 artisans in the next
three years. To get the last mile done, on-the-job
training, we have to get businesses on board to offer
the required in-service training component.
Does the green economy hold potential for
the Western Cape?
We are very excited about a recent Moody’s report,
which found that the green economy in South Africa
is the fastest growing in Africa, and is one of the
fastest in the world. The Western Cape hosts 70%
of green economy manufacturing and 60% of head
offices of green economy companies. GreenCape has
a mandate to grow the green economy.
Do you have a focus on particular sectors?
At the start of the new five-year term in 2014, we
worked with McKinsey and Company to conduct a
deep-dive study into our economy. Drawing from
best practice in emerging market economies from all
over the world, they helped us develop a choice strategy:
let’s concentrate on fewer sectors and drill much
deeper. These sectors were tourism, agri-processing
and oil and gas. This became Project Khulisa, which
means “cause to grow” in isiXhosa.
What were the key factors in choosing
these sectors?
Project Khulisa earmarked the following sectors as
the biggest growth engines for the next five years:
• Agri-processing had 1.8% growth in Gross Value
Add (GVA) and 7.7% jobs growth
• Tourism was growing at 6.8% GVA growth and
7.8% jobs growth
The next sectors on the list were ICT, BPO and film
with the green economy cutting across many sectors.
Can you give examples of how your department
supports businesses in the key
sectors?
We are driving a suite of initiatives to grow agriprocessing,
under the banner of Project Khulisa.
These include efforts to boost halaal and wine
INTERVIEW
exports, and to create an enabling environment
for all agri-processed products to flourish. We have
made headway, together with our partners, in our
drive to increase water storage in the Brandvlei Dam
so that more hectares can come under irrigation,
producing more product for agri-processed goods.
We have also commissioned the equipment we
require for our residue testing facility, so that we
can accomplish the testing required to export more
product to key international markets. All of the initiatives
under Project Khulisa are designed to open
international markets for our produce.
As part of Project Khulisa, we have also prioritised
direct air access. We are pleased with the significant
impact of the work we’ve done in boosting arrivals
to our province.
There has been an impressive 60% increase in
Origin and Destination (O&D) passengers coming
through Qatar since the project started. There has
been an increase of 53% in O&D passengers from
Turkey from 36 348 to 55 714. This growth is linked
to the landing of direct Turkish Airlines flights into
Cape Town.
In total, between July 2015 and December 2016,
we will have expanded six direct routes and established
two new direct routes, resulting in 400 000
additional two-way seats to Cape Town.
What are some of the indicators of this
good growth?
A total of 654 000m² was approved for construction
in the Western Cape in 2015, nine times more
than the figure approved in Gauteng. Absa is
centralising its operations at Century City, British
American Tobacco has just moved into offices at
the Waterfront. Hisense, which already has a manufacturing
facility in Atlantis, is working at how it can
plug into the green economy. It is looking to treble
or quadruple its investment into the region. Recently
Cape Town received an award as best offshoring
destination from a British outsourcing organisation.
This is testament to the business confidence in the
Western Cape.
73
WESTERN CAPE BUSINESS 2017
OVERVIEW
Agriculture
Processing plants boost rural employment.
While the contribution of agriculture to provincial gross
domestic product (GDP) is small at 4.2%, the fact that
nearly 40% of exports from the Western Cape derive
from fruit or agri-processing makes this a vital sector to
the health of the regional economy.
Seven of the 10 biggest export earners are either agricultural
products or agri-processed goods.
In the national context, agricultural products made up 5.2% of the
country’s export basket in 2015. The African continent accounted for
22.7% of total exports.
Wheat is another of the province’s strong sectors: the Western Cape’s
310 000ha planted to wheat in 2015 represented 64% of South Africa’s
crop. Japan is a major destination of the province’s maize production.
In canola, the Western Cape is even more dominant, with 99% of the
nation’s hectares. (StatsSA). A working group of the Protein Research
Foundation is developing strategies to increase the yields and plantings
of canola. A canola symposium was held in Bredasdorp in 2016.
The province’s climatic regions vary from Mediterranean around
Cape Town and on the coast (where rainfall can be 2 000mm at places)
to the drier regions of the inland Karoo districts where annual rainfall
SECTOR INSIGHT
A new testing centre will be
built in the Western Cape to
certify agricultural products
for export to the EU.
figures can be below 150mm.
Just over three-million hectares
of the province is cultivated and
270 000ha are under irrigation.
The sector supports almost
10 000 farms and employs
214 000 people. Farming carried out
on the Western Cape’s 13-million
hectares of agricultural land comprises
approximately 21% of South
African commercial agriculture.
The Provincial Government
of the Western Cape has identi-
WESTERN CAPE BUSINESS 2017
74
OVERVIEW
fied agri-processing as one of
the three key sectors that can
deliver high growth and lots of
jobs. Over a five-year period to
2014, the sector grew at nearly
5% and delivered jobs growth of
more than 7%.
Agri-processing holds potential
to increase employment
in rural areas. If it receives the
dedicated attention and support,
it could add up to 100 000
jobs and generate R26-billion
for the economy under a highgrowth
scenario.
Among the areas on the todo
list of Western Cape Minister
for Economic Opportunities Alan
Winde, whose ministry is responsible
for agriculture, is to bring
more irrigated land on-stream
to increase product into the
agri-processing chain; to keep
promoting wine sales to the
world; to expand African exports
(Angola is proving a good first
step); investigating whether the
Western Cape can tap into the
global halaal market said to be
worth $2.3-trillion; and to build
a testing centre for agricultural
products so they can be certified
for sale into the European Union
(EU).
Zoning laws also have to be
adopted to promote growth in
rural areas. He gives an example
of a fruit pulping and drying company
in the small town of Gouda,
which was restricted by zoning
laws when it wanted to expand
its factory space beyond 1 000m².
“They are growing at 65% and you
are telling them to pack up and
move to the city? Gouda loses
1 000 jobs!” Winde says that it
must be the objective of government
and planners to create an enabling environment for companies
to expand.
In presenting his 2016/17 budget, Minister Winde said that the number
of jobs in the agricultural sector had grown by 63% in a year, citing
StatsSA data. This figure included seasonal jobs.
Many more opportunities for employment may come about if the trend
reported on by City Press in August of 2016 grows bigger: experienced
citrus farmers moving to the Western Cape from other areas. Reporting
that five farmers from Limpopo and the Eastern Cape had bought farms in
Citrusdal, Robertson and Wellington, the newspaper noted that the variety
of new fruit types (apart from lemons and other citrus fruit) to be planted
by these new farmers would supply work all-year round for local people.
Mandarins, seedless watermelons and squash are among the other fruits.
There is also good news for agriculture in the Western Cape – out
of Gauteng. South African Breweries has built a new malting plant in
that province. To get to an annual production figure of 130 000 tons of
malted barley for the new facility, more barley will have to be grown.
The locally-sourced barley that SAB buys will rise from 65% to 95% of
total stock. The company’s only other malting facility is in the heart
of barley-growing country, at Caledon in the Overberg region, where
180 000 tons are processed every year.
The Western Cape is a major producer of fruit and vegetables and is by
far the biggest producer of peaches in South Africa. The country produces
about 60 000 tons per year.
Only 1% of South Africa’s fruit is dried, but that still represents 51 000
tons of product. The Western Cape is strong in dried fruit and nuts with
Montagu Dried Fruit and Nuts, Cape Dried Fruit Packers (also based in
the Boland town of Montagu), and Safari among the biggest producers
and distributors.
POSITION COMMODITY AMOUNT
1 Refined petroleum R18.2bn
2 Citrus R8.6bn
3 Wine R8.6bn
4 Apples and pears R6bn
5 Grapes R6bn
6 Iron and steel R3bn
7 Fruit juice R2.2bn
8 Fruit and nuts R2.1bn
9 Tobacco R1.8bn
10 Engine parts R1.6bn
Top 10 exports 2015
SOURCE: QUANTEC, 2015
75 WESTERN CAPE BUSINESS 2017
OVERVIEW
The estimated cost of the
drought to the wine and fruit industries
is about R1.2-billion.
Companies
Drought
A severe drought has had an effect on all agricultural enterprises
throughout South Africa.
For some time now, most regions have not received the rainfall they
expected. Rainfall recorded in September 2016 in the Central Karoo
ranged between 0mm and 2mm. This will affect grazing for animals
in summer. Irrigation in most areas has been affected and in some
places has had to be stopped.
Although the Western Cape’s winter grain crop regions received
some timely rain, a long-term “climate response action plan” has
been introduced called Smart Agri. This is a partnership between the
provincial government, the private sector and academic institutions.
Among the recommendations for the way forward is conservation
agriculture, which is being tested at the provincial research farm,
Langgewens. Minimum tillage and crop rotation are among the strategies
being adopted.
Zeder Investments is the agricultural
arm of investment holding
company PSG Group (which
has become well known to the
general public through Capitec
Bank and Curro schools). Zeder
has been very active in increasing
its stake in agricultural companies
in recent years, most notably
Capespan, where it is now
the holder of 98.1%. Capespan
has a turnover of R7.6-billion
across three divisions: farms, logistics
and fruit. Brands include
Cape and Outspan, Capespan
Logistics (known as FPT for Fresh
Produce Terminals) and Groot
Gariep Koelkamers. Zeder has a
similarly large stake in the holding
company that controls three
seed companies, Zaad Holdings
(turnover R1.2-billion), and it has
further shareholdings in egg and
grain companies. Zeder is a 39.6%
shareholder in Kaap Agri Ltd.
Kaap Agri has more than 200
operating points stretching from
its headquarters in Malmesbury
in the Swartland to Namaqualand
and beyond. What started out as
a farmers’ co-operative is now
a large enterprise with eight
business units covering everything
from grain (Wesgraan), to
packaging (Pakmark) and retail
(Agrimark).
Zeder also owns 27.2% of
Pioneer Foods, which makes and
distributes many big food and
drink brands across Southern
WESTERN CAPE BUSINESS 2017
76
OVERVIEW
Africa, including Weet-Bix, Liqui-
Fruit, Ceres, Sasko and White
Star. The company has an annual
turnover of R20-billion and it has
two Bokomo facilities producing
wheat biscuits, cereal and muesli
in the United Kingdom.
Overberg Agri is an unlisted
company with a wide range of
investments in several sectors,
including mining, pet food and
industrial fasteners. Promeal
manufactures pet-food in Atlantis
and Boltfast distributes nuts, fasteners
and screws all over South
Africa. Grain services, irrigation,
financial services and retail form
more traditional parts of the agricultural
company’s profile, which
had a turnover of R2.8-billion in
2015/16. Headquarters are located
in Caledon and the group has
1 144 permanent employees.
SSK (Sentraal Suid Ko-operasie)
has outlets in the Overberg (headquarters
are in Swellendam) and
in the Southern Cape as far east
as George. There are retail outlets
at Swellendam, Heidelberg
and Robertson, and grain depots
at Swellendam, Heidelberg,
Karringmelksrivier, Protem
and Ashton.
SSK has increased its reach
with the acquisition of Tuinroete
Agri, which has four grain silos
and 19 retail outlets and depots
stretching along the Garden
Route from Riversdale to Jeffrey’s
Bay. It also has a presence in the
Langkloof and at Aberdeen in
the Karoo. SSK either controls
or has an interest in companies
that engage in oil extraction,
property, equipment, animal
feed, abattoirs, investments and
motor sales.
The Klein Karoo group based in Oudtshoorn focusses on ostriches
through Klein Karoo International. Separate units deal in fashion products,
feathers, leather, skins and meat production.
Other companies in the group cover seed sales, auctions and a
retailer, Klein Karoo Agri, which has two petrol stations, six shops, a
mechanisation business and an irrigation business.
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
Bureau for Food and Agricultural Policy: www.bfap.co.za
Cape Agency for Integrated Sustainable Development in Rural
Areas: www.casidra.co.za
Citrus Growers’ Association: www.cga.co.za
Fresh Produce Exporters’ Forum: www.fpef.co.za
Fruit SA: www.fruitsa.co.za
HORTGRO: www.hortgro.co.za
Klein Karoo: www.kleinkaroo.com
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
SA Grain Information Service: www.sagis.org.za
SA Olive Industry Association: www.saolive.co.za
SA Table Grape Industry: www.satgi.co.za
SA Trade Directory of Indigenous Natural Products:
www.cpwild.co.za
South African Rooibos Council: www.sarooibos.org.za
Western Cape Department of Agriculture: www.elsenburg.com
77 WESTERN CAPE BUSINESS 2017
OVERVIEW
Wine and grapes
China is importing the fruits of the Western Cape’s vineyards.
SECTOR INSIGHT
Nearly 50 000 people work
in the province’s table grape
sector.
• A Cape wine farm is selling
exclusively to China.
• KWV has been sold to a
global company.
Chinese consumers love the grapes of the Western Cape,
whether they are presented to them in bunches or in bottles.
Alterations to importation regulations are set to massively
boost table grape sales to China, and wine farmers
are selling ever-increasingly volumes to that country.
Table grapes
South Africa’s table grape producers and exporters had something to
cheer about in 2016. Because China has changed its cold-treatment
protocol, South Africa can now increase its exports to that country to
R2.5-billion within five years.
In 2015, 10 600 tons of table grapes were sold into China but the
figure could not be increased because of the cold-treatment protocol
relating to the South Africa product, which affected quality, market
share and price. The Chinese market for table grapes has been growing
at 30% since 2000 and stands at about $600-million.
The South African Table Grape
Industry Partnership (SATI) is a
partnership whose board membership
represents every growing
region. The industry’s contribution
to the national GDP is estimated
at more than R3-billion.
The table grape industry provided
over 46 000 direct jobs to
the Western Cape during the
2015/16 harvest. The Western
Cape is responsible for 65% of
total production volumes in
table grapes.
There is also a significant contribution
to downstream production
income – R3.2-billion to
other product-input providers,
R720-million to packaging material
suppliers and R250-million to
logistics suppliers.
On farms with black ownership,
income of R183-million was
generated in 2014/15.
Key industry figures for the
annual national harvest:
• More than 85 000 jobs
WESTERN CAPE BUSINESS 2017
78
OVERVIEW
• Wages valued at R950-million
• Additional R600-million job
creation by suppliers in the
value chain
Three of South Africa’s grapegrowing
regions are located in
the Western Cape:
• Olifants River: The river flows
from the Cederburg Mountains
westwards towards the Atlantic
Ocean via Namaqualand.
• Berg River: The Du Toitskloof
Mountains are the main geographical
feature of this region
named for the strong-running
river that irrigates the fields of
grape varieties such as Red
Globe, La Rochelle and Bonheur.
• Hex River: The river runs past
the Matroosberg where snow
falls are a regular occurrence.
Popular varieties are La Rochelle,
Sunred Seedless and Barlinka.
Wine
A bottle-making factory in
Gauteng is doubling its capacity
because Cape wine exports
are rising so quickly. Exports
from the Western Cape reached
R8.6-billion in 2015.
Nampak told Business Day
in 2016 that the main factor in
increased orders from its Cape
wine buyers was the Economic
Partnership with the European
Union, allowing easier access into
the EU for Southern African goods.
Total exports of wine out of the
Cape have grown from 50-million
litres to close to 450-million,
with many of the new sales going
to China.
The Chinese market was valued
at R240-billion in 2015 (IWSR) and a
joint venture between Leopard’s Leap and Yangzhou Perfect (51%) has
bought the wine farm Val de Vie to make wine to export to that country.
The wine is branded L’Huguenot.
There is a move to try to shift South Africa’s focus away from
bulk wine sales, to bottled wines. The website beveragedaily.com
quoted the managing director of Origin Wines stating that for every
10-million litres of additional wine bottled in South Africa in 2016, additional
direct income of R200-million should accrue to the Cape Winelands.
The decision by Britain’s electorate to extract the country from the
EU will lead to some complications, but Western Cape Minister for
Economic Opportunities Alan Winde believes that the new situation
could lead to many new opportunities. The EU may push for the reduction
in some of the figures set for imports (on the basis that a chunk of
the allocation would have been going to Britain), but Britain will surely
want to negotiate a good deal with South Africa as quickly as possible.
There are over 3 500 wine producers in South Africa, with the large
majority located in the Western Cape.
Wine is produced by estates, independent cellars and producer cellars
or co-operatives. The Distell group runs five distilleries and seven
wineries in the Western Cape, produces about a third of the country’s
natural and sparkling wine and is ranked 12th in the world in terms of
global wine volume sales.
The multi-brand KWV was sold in 2016 to consumer investment
group Vasari. The reported sale price was R1.15-billion. Niveus, the
previous owner of KWV, retains the company headquarters building
in Paarl (La Concorde) and the Laborie wine estate.
Wellington Wines is a new venture that arose from the merger of
the Wellington Co-operative and the Wamakersvallei Co-operative.
DGB is a large wine and spirits company that makes much of its own
product at five famous wineries. These include Boschendal, Bellingham
and Douglas Green. Edward Snell & Co is a wine and spirits wholesaler
that also makes its own line of spirits. Fourteen brandy distilleries can
be visited on the Western Cape Brandy Route and a further six on the
R62 Brandy Route on the road east.
ONLINE RESOURCES
Integrated Production of Wine: www.ipw.co.za
National Agricultural Marketing Council: www.namc.co.za
Nietvoorbij Institute for Viticulture and Oenology:
www.arc.agric.za
SA Wine Industry Information & Systems: www.sawis.co.za
South African Brandy Foundation: www.sabrandy.co.za
South African Table Grape Industry: www.satgi.co.za
Western Cape Department of Agriculture: www.elsenburg.com
Wines of South Africa: www.wosa.co.za
79 WESTERN CAPE BUSINESS 2017
INTERVIEW
The magic grape
Beyers Truter, who is associated internationally with the
Pinotage varietal, shares some insights on the local
winemaking industry.
Beyers Truter
BIOGRAPHY
Beyers Truter received a BSc
Agric degree from the University
of Stellenbosch before
starting his winemaking career
at Kanonkop. Today he is the
cellar master and co-owner of
Beyerskloof. He played an enormous
role in the development
of the Pinotage red wine grape
varietal when, in 1991, he was
named international Winemaker
of the Year with a Pinotage wine
at the International Wine and
Spirits Competition. He was
also the founder and chairman
of the Pinotage Association. He
has won numerous local and
international awards.
Please provide an overview of your business operations
and the Beyerskloof Wine Estate.
Beyerskloof was established in 1988 and is known internationally for its
Pinotage wines, the only indigenous South African variety.
We have grown tremendously over the last few years and we are
considered one of the foremost producers of Pinotage and Cape
Blends in South Africa. Although I don’t want to grow too fast, there
is a big demand for South African wines. My son is now in charge of
the vineyards and winemaking and we intend to expand operations.
I regard the fact that my son is actively involved in the business and will
continue to build it as the biggest reward of my life thus far.
Could you explain something about your relationship
with Pinotage?
I have a very long relationship with Pinotage. I would say the relationship
started in 1981; I was farming at Kanonkop and I tasted a 1972
wine from Simonsig. I liked it so much that I phoned winemaker Frans
Malan to ask him about it – it was a Pinotage, which at that stage was
a kind of “black sheep” of wines. Well, I have always been fond of “black
sheep” and the relationship has flourished ever since.
In 1995, I established the Pinotage Association, which focuses on
prioritising research ideas, knowledge dissemination and marketing of
the varietal. It is a magic grape with a wonderful classic taste!
WESTERN CAPE BUSINESS 2017
80
INTERVIEW
Please describe the relationship with
Nedbank, in terms of your business and
the wine industry.
Nedbank does a lot to support the wine industry;
in particular, they sponsor the Cape Winemakers
Guild Auction. In addition to well-known estates,
individuals are also able to market their topclass
wines through the event. They are also involved
in the sponsorship of the Nedbank Vinpro
Information Day held annually. Nedbank is also our
Business Bank.
What is your view of the current state of
the wine industry in South Africa and the
outlook for the next five-to-10 years?
Some South African wines are doing very well.
I could mention Pinotage and Chenin Blanc,
local sales of which have grown by 73% and 60%
respectively over the past five years.
I foresee that it will continue to go well for the
wine industry in the short-to-medium term but
unfortunately the outlook is not as positive for the
grape farmers. The price of grapes has not risen as
much as the price of the value-added product –
wine in the bottle.
What prompted you to start a community
project focusing on alcohol abuse among
women and youth pregnancy, and what
impact has the project had?
Some years ago, I started the FAITH Fund (Foetal
Alcohol-Syndrome and Interrelated Treatment Help
Fund) and we have been working at communicating
the negative effects of drinking during pregnancy
ever since. It is widely known that the Western
Cape has a serious problem when it comes to Foetal
Alcohol Syndrome (FAS).
We have what we call the “Klop-klop” project,
where we literally send people door-to-door to
speak to farm workers, particularly pregnant women,
about the dangers of drinking while pregnant. We
follow up by visiting pregnant women each month
until they deliver and we provide food and necessities
to assist them. We also visit schools and clinics as
far afield as Beaufort West and Graaff-Reinet.
I do this because I believe that every child needs
a future and FAS robs children of a future they can
look forward to.
How is the drought likely to impact the
wine industry?
Typically during periods of dry weather you have a
smaller crop but sometimes a superior crop, so the
effects “cancel each other out”. Longer term, however,
continuing drought would significantly affect
volumes, which would affect wine sales.
81 WESTERN CAPE BUSINESS 2017
PROFILE
South African Table
Grape Industry
South Africa: preffered country of origin for the
world’s best-tasting grapes.
SATI represents
growers in key
government and
industry initiatives
aimed at creating
more opportunities,
from ownership to
accessing new markets
in a sustainable
way.
SATI assists growers
with crucial industry
information,
Willem Bestbier, CEO
transformation, statistics, research, technology and
technical transfer as well as training and education
with the aim of establishing South Africa as the
Preferred Country of Origin for the world’s besttasting
grapes.
South African table grape growers and exporters
are committed to being a reliable supplier of table
grapes by delivering a safe, flavour-filled product of
the highest quality.
grape producer as wide a choice as possible with
profitable markets.
Mission
SATI delivers service excellence to create a progressive,
equitable and sustainable South African table
grape industry.
SATI’S key areas of intervention
• Technical market access
• Research and technology transfer
• Information and knowledge management
• Transformation
• Communication and stakeholder engagement
• Human capacity and skills development
• Technical support
continued on page 82
They have dedicated themselves to ensuring
that our special taste, quality and choice product
meet the highest level of compliance with world
market standards.
Vision
South Africa is the Preferred Country of Origin
for table grapes and will provide every table
WESTERN CAPE BUSINESS 2017
82
PROFILE
These interventions are aimed at assisting producers
to Gain, Retain and Optimise (GRO) market access.
SATI is funded by a grower levy, and is a co-founder
and a key supporter of the Sustainability Initiative of
South Africa (SIZA).
A world of variety
There are five major growing regions in South Africa.
The difference in soil and climate enables growers
to supply the markets from November to May. The
early season is dominated by varieties from the
Northern Provinces and the valleys of the Orange
and Olifants Rivers , followed by table grape varieties
from the Berg River and Hex River regions.
The South African table grape industry is ideally positioned
to work with the government on all levels
to make a significant contribution to the primary
goals of the National Development Plan, namely
job creation, rural development and the earning
of foreign revenue.
CONTACT INFO
Contacts:
Willem Bestbier, Chief Executive Officer
Email: willem@satgi.co.za
Joseph Lombardt
Manager: Information and Knowledge
Management
Email: joseph@satgi.co.za
Physical Address: 63 Main Street, Paarl 7624
Tel: +27 21 863 0366
Fax: +27 21 863 3039
Email: info@satgi.co.za
Website: www.satgi.co.za
WESTERN CAPE BUSINESS 2017
84
Fishing
More fish, fewer chips.
OVERVIEW
The Oceana Group has made some purchases that will boost its
fishing and fish processing volumes. It has also sold off its potatoprocessing
business, Lamberts’ Bay Foods. With the purchase
of Foodcorp’s fishing rights and an American fishmeal and oil
company, Daybrook, Oceana now has operations in the USA, South
Africa and Angola and achieved revenues in 2015/16 of R8.2-billion.
The biggest brand performer for Oceana is Lucky Star canned
pilchards, which enjoys 80% of market share in South Africa.
Demersal fish such as hake and kingklip account for 46% of the
national catch, with pelagic fish (anchovy, pilchards and sardines)
making up 23%. Lobster makes up 11% and linefish 13%. The Western
Cape is responsible for about 75% of the nation’s fishing.
The value of the national catch across 22 commercial fishing
sectors is about R6-billion. Sectors range from the highly capitalised
deep-sea trawling industry to much smaller-scale lobster and
abalone operations.
Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana
has stated his intention to restructure the horse mackerel industry to
promote local fishers and processors. A 15-year contract awarded in
2015 on this basis was overturned by the courts after objections by
bodies such as FishSA, which represents eleven fishing associations.
Most of South Africa’s major food companies have fishing divisions.
Pioneer Fishing has no connection to the multi-product group Pioneer
Foods, and is owned by Suiderland Corporation and African Pioneer
Limited. Pioneer Fishing controls a canning, fishmeal and fish oil factory
in St Helena Bay called Oranjevis, a joint venture with Terrasan Pelagic
Fishery, and a processing and freezing factory in the Port Elizabeth
harbour (Eyethu Fishing).
ONLINE RESOURCES
FishSA: www.fishsa.org
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
SA Deep Sea Trawling Industry Association: www.sadstia.co.za
Southern African Sustainable Seafood Initiative:
www.wwfsassi.co.za
SECTOR INSIGHT
Government intends restructuring
the horse mackerel industry
to boost local fishers.
Premier Fishing, a subsidiary
of Sekunjalo Investments, runs
16 vessels and operates at seven
locations, including Atlantic Cold
Storage, which has capacity to
store 2 500 tons of fish and 405
tons of live lobster. The company
has lobster plants at Port Nolloth
and Hout Bay, and a fish meal
plant at Saldanha.
Viking Fishing is active in fishing,
processing and fish farms. It
has 1 250 employees across its
varied operations, which include
trawling for hake; sardines and
anchovies; the west coast rock
lobster and prawns (in South
Africa and Mozambique).
Sea Harvest is vertically integrated
and owns all its fishing
vessels, processing facilities
and cold storage facilities. Sea
Harvest runs several shore-based
factory plants, sells to more
than 2 000 stores and has 46%
of South Africa’s retail frozen
fish market.
Dromedaris Visserye specialises
in Cape lobster, and supplies
sardines and anchovies to China
and Japan.
85 WESTERN CAPE BUSINESS 2017
SPECIAL FEATURE
87 WESTERN CAPE BUSINESS 2017
OVERVIEW
Mining
The sands of the West Coast are giving up their riches.
A
new mineral sands project on the West Coast near Lutzville
and Koekenaap has started sending product to China.
Australian miner Mineral Commodities (MRC) says it will
spend R5-billion at its Tormin mine to 2019 in search of zircon,
rutile, ilmenite and garnet.
Namakwa Sands is an existing mineral sands operation on the
West Coast, owned by Tronox. Tronox is listed on the New York Stock
Exchange and South African company Exxaro Resources is a 43.87%
shareholder. The company has a mine and concentration plant at
Brand-se-Baai and a mineral separation plant at Koekenaap near
Lutzville about 350km from Cape Town. Ilemnite, rutile and zircon
are extracted at this site and then taken to the company’s smelter at
Saldanha Bay. Zircon is used in tile glazing and ilmenite is melted to
become pig iron for use in engine blocks. The left-over slag is used as
pigmentation in paints.
The Cape Bentonite Mine (with five quarries) near Heidelberg is run
by Ecca Holdings with another site east of Knysna at Roodefontein.
Dimension stone occurs around Vanrhynsdorp (which also has some
gypsum) and medium-grain granite is found at Paarl.
Sixteen rare earth minerals have been identified north of
Vanrhynsdorp, with the most prevalent being cerium, an important
component of catalytic converters. South Africa is a world leader in
converters. Other minerals found at the site are used in magnets,
batteries and electric-powered cars.
More than one investor has come and gone, but the acquisition
in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of
ONLINE RESOURCES
African Mining Indaba: www.miningindaba.com
Chamber of Mines of South Africa:
www.chamberofmines.org.za
Council for Geoscience: www.geoscience.org.za
Geological Society of South Africa: www.gssa.org.za
National Department of Mineral Resources: www.dmr.gov.za
Southern African Institute of Mining and Metallurgy:
www.saimm.co.za
SECTOR INSIGHT
Sixteen rare earth minerals
have been identified north of
Vanrhynsdorp.
Rareco has given it the right to
the rare earth deposits at the
Steenkampskraal monazite
mine. STL already had the thorium
rights. STL has an associate
company in Norway, Thor Energy.
The plan is to mine, process and
refine thorium for nuclear fuel applications
in Norway. STL reports
that Steenkampskraal has one of
the world’s highest-grade rare
earth and thorium deposits with
an average grade of 14.4% rare
earths and 2.14% thorium.
Limestone for cement, agricultural
lime and feed lime is
extracted at several sites in the
province’s western regions while
kaolin is found in Noordhoek and
Somerset West. Ball clay is mined
in the Albertina district by G&W
Base and Industrial Minerals, a
subsidiary of the Zimco Group.
Pretoria Portland Cement
(PPC) has operations near
Riebeek-West and Piketberg (De
Hoek). Slasto and building stone
is quarried near Clanwilliam.
Consol quarries glass sand
near Philippi.
WESTERN CAPE BUSINESS 2017
88
OVERVIEW
Oil and gas
The Western Cape Government is hoping to exploit opportunities related to the gas sector.
SECTOR INSIGHT
A new LPG terminal will be
commissioned at Saldanha
in 2017.
• Chevron wants to sell its
refinery.
• A new fuel storage terminal
is being built in Cape
Town harbour.
Thirty-two companies are set invest in the Saldanha Bay Industrial
Development Zone (SBIDZ). These companies are in the oil and
gas, and servicing and logistics sectors. The idea of providing
infrastructure and incentives at the SBIDZ in these sectors is
reaping rewards.
Large industrial operations already exist at Saldanha and the Port
of Saldanha Bay is used for the export of South Africa’s iron ore. Large
quantities of oil are transported around the Cape of Good Hope every
year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the
Middle East. Reduced global prices for oil and troubles in the container
ship market have caused some stress in the local sector – DCD
Marine went into voluntary business rescue in November 2016 – but
the long-term prospects for shipping and oil and gas are still strong
enough for national government to pursue Operation Phakisa (which
includes a strong maritime economy push) and for Transnet National
Ports Authority to spend heavily on upgrading the nation’s ports.
Considerable planning has gone into positioning the SBIDZ as a
hub for a range of maritime repair activities and oil rig maintenance
and repair. (A separate article on the SBIDZ appears elsewhere in
this publication.) But Saldanha has not been chosen by the national
Department of Energy (DoE) to host a gas-to-power plant: Richards
Bay and Coega (Port Elizabeth) have instead been listed as the sites
for 2 000MW and 1 000MW potential, if private investors for projects
at those ports can be found. The
Provincial Government of the
Western Cape has asked the DoE
to reconsider and wants Saldanha
to be allocated at least 1 000MW
potential for private companies
to consider bidding to run such
a power plant.
If gas was used to generate
power, the next step would be
for factories to consider using gas
and then the whole energy mix
could be changed. The Western
Cape Ministry of Economic
Opportunities sees the potential
of gas in the context of working
together with wind and solar energy.
Gas, a CSIR report has concluded,
could be a very good support
for renewable energy during
times of peak demand.
Another possible gamechanger
is shale gas. The Council
for Geoscience (CGS) is doing an
intensive study of South Africa’s
WESTERN CAPE BUSINESS 2017
90
OVERVIEW
potential shale gas resources. The
study centres on the area around
Beaufort West in the Karoo. The
study wants to look at the reserves,
the technology associated
with getting the gas out of the
ground and the value chain.
Natural gas lies offshore to
the west of South Africa in the
Atlantic Ocean (Ibhubesi) and off
the southern coast in the Indian
Ocean (Bredasdorp Basin). Both
fields have great potential: Block
2A of the Ibhubesi gas field northwest
of Saldanha is estimated to
have reserves of 850-billion cubic
feet of gas and the Bredasdorp
Basin is said to have reserves of
one-trillion cubic feet, but getting
to the gas has proved tricky.
The Bredasdorp Basin is close
to Mossel Bay where a gas-toliquids
plant is located. Project
Ikhwezi, run by South Africa’s oil
company PetroSA, produced 25-
billion cubic feet (bcf) from that
field instead of a projected 242bcf
(Engineering News). PetroSA recorded
a net operating loss of
R14.6-billion for the 2014/15
financial year.
Sunbird Energy (a joint venture
between Sunbird Energy 76%
and PetroSA 24%) was reported
in March 2016 to be proceeding
with plans to produce gas from
the Ibhubesi field, but lower
global gas prices and negotiations
with national utility Eskom
(which has to agree to buy the
gas) were factors that had to be
considered (Financial Mail).
Further afield, major gas finds
have been made off the coast
of East Africa and plans to pipe
greater volumes of Mozambican
gas to Gauteng are far advanced.
Industrial gas manufacturing in the Western Cape is a particular
focus for Air Products, a part of the Metkor Group controlled by Remgro.
The company is the largest supplier in the pipeline and on-site markets,
and it also supplies to the packaged chemicals, bulk and chemicals
markets. The company has a national footprint, with a very strong presence
in the oil, gas and chemical hub of the country around Sasolburg
and Vereeniging. Air Products has a network of private distributors who
get support from the company in terms of sales, service and technical
advice. Safety training is also offered.
Facilities
The gas-to-liquids plant that PetroSA runs at Mossel Bay on the south
coast is one of the country’s key pieces of energy infrastructure. Getting
new feedstock for this plant is now an urgent priorty (and something
which Project Ikhwezi was supposed to do).
The Chevref oil refinery in the Cape Town suburb of Milnerton is one
of six in South Africa. It produces about 110 000 barrels a day of South
Africa’s total production of 703 000 barrels a day. Chevron gave notice
in early 2016 of its intention to leave South Africa. A price of R15-billion
has been suggested for Chevron’s assets, which include a lubricants
business and 850 Caltex petrol stations (Sunday Times).
A new facility is to be added to the oil and gas sector in Cape Town
– a 118 000m³ fuel storage unit. The Bergan terminal will comprise 12
tanks located on the Eastern Mole of the Port of Cape Town and it will
be connected by pipeline to the Chevref refinery.
A new import terminal dedicated to Liquefied Petroleum Gas (LPG)
is being constructed at Saldanha Bay by Sunrise Energy. The terminal
will be an open-access facility, so any gas importer, distributor or
downstream user can use it for the importation of LPG, commercial
propane or commercial butane. It is due to be commissioned in the
second quarter of 2017.
ONLINE RESOURCES
Liquefied Petroleum Gas Association of Southern Africa:
www.lpgas.co.za
National Department of Energy: www.energy.gov.za
National Energy Regulator of South Africa: www.nersa.org.za
Petroleum Agency of South Africa:
www.petroleumagencysa.com
PetroSA: www.petrosa.co.za
Saldanha Bay IDZ: www.sbidz.co.za
South African Oil and Gas Alliance: www.saoga.org.za
WESTERN CAPE BUSINESS 2017
92
Air Products
South Africa
PROFILE
This leading industrial gases and related products company has
introduced innovations throughout its history.
Air Products South Africa manufactures, supplies
and distributes a wide variety of atmospheric gases,
speciality gases, performance materials, equipment
and services to the southern African region.
Founded in 1969, the company has grown rapidly
and has used its world-class production and regional
distribution facilities to become the largest
supplier in the on-site and pipeline markets. It is also
a leader in the bulk, packaged gas and chemicals
supply markets.
Liquid and gaseous product is distributed to customers
throughout South Africa using the company’s
modern fleet of cryogenic tankers and cylinder
trucks. This ensures reliable supplies of gases such
as oxygen, nitrogen, argon, hydrogen and carbon
dioxide to major corporations in the steel, stainless
steel, chemical, petrochemical and engineering
industries.
In fact, Air Products touches the lives of consumers
in positive ways every day, and serves customers
in a range of industries from food and beverage,
mining and petrochemicals, primary metal and steel
manufacturers, chemical applications, welding and
cutting applications to laboratory applications.
Business units
Air Products has four business units to serve its
broad client base.
On-site generation
These systems include small membrane cabinets,
packaged plants, large air separation and hydrogen/
carbon monoxide/syngas plants and industrial gas
pipelines. The systems are classified as either generated
gases or tonnage gases.
Bulk gas
This division facilitates the supply of bulk liquid product
to a wide range of customers. Products including
liquid oxygen, liquid nitrogen, liquid carbon dioxide,
liquid argon and gaseous hydrogen are transported
from the company’s four main air separation units
via its fleet of road tankers.
Specialty gases
There are over 100 different gaseous and liquid
chemicals and thousands of different gas mixtures.
These products can be supplied in any quantity,
from a few grams or litres to a 4 000m³ trailer load.
Chemicals
The Air Products chemical offerings are backed up
by its applications support personnel, who rigorously
match product properties to meet specific
end-use applications.
CONTACT INFO
Tel: +27 11 570 5000
Email: info@airproducts.co.za
Website: www.airproducts.co.za
93 WESTERN CAPE BUSINESS 2017
OVERVIEW
Energy
Manufacturing in the renewable energy sector is taking off in Atlantis.
The energy landscape of the Western Cape is undergoing rapid
change. Mostly this is because the potential of renewable energy
is being realised, but if a gas-to-energy plant becomes a reality in
the province, then another big shift could take place.
The Western Cape already hosts the country’s only nuclear power
station (Koeberg, north of Cape Town) and it has a pumped water
storage plant and three open-cycle gas turbines.
The West Coast was the site of two of the country’s first experimental
wind farms. Successful trials there and elsewhere (and
critical power shortages in the national grid) led to the adoption
by national government of a scheme to invite private producers
to bid for the right to build plants that would produce wind, solar
or hydropower. This is the Renewable Energy Independent Power
Producer Procurement Programme (REIPPPP) and the first bids closed
in December 2011.
By the time the fourth bid closed in 2015, the Western Cape had
been allocated 11 projects, six wind and five photo-voltaic solar power.
The total capacity of these projects totalled 592MW. Among the foreign
companies to engage in renewable energy projects in the province
are Gamesa and Acciona, Gestamp Renewables, Vestas, Sunpower
and JinkoSolar.
The Provincial Government of the Western Cape is prioritising
energy in its plans, and this includes generation (gas, biogas and
renewables), distribution and energy-saving.
SECTOR INSIGHT
Progress reports on energy
plans are presented to the
Premier every six weeks.
• There are 2 000 private
energy providers in Cape
Town.
A wide range of experts drew
up the provincial energy plan,
the key points of the energy plan
include: efficiency in the system;
get the uptake of renewable energy
to move faster; and move to
gas. With every project within that
plan, a detailed timetable has been
worked out and reports are sent to
the Premier’s office every six weeks.
Western Cape Minister
of Economic Opportunities
Alan Winde notes that the
Department of Agriculture, simply
by carefully recording its usage
WESTERN CAPE BUSINESS 2017
94
OVERVIEW
patterns, has cut its electricity bill by
R1.7-million.
On top of this, the Western
Cape has its own private producers’
programme. “As I speak, there
are more than 2 000 private producers
in Cape Town,” says Winde.
These range from a solar panel on
the roof of a single private household
to major installations in the
Waterfront. Excess power is sold
to the city.
Winde is lobbying hard for the
national Department of Energy
to allow Saldanha Bay to be a site
for a gas-to-power plant. “There
should be at least 1 000MW at
Saldanha. If the private sector
and investors think it is a bad
idea, then that’s fine.” He clearly
believes that investors will think it
a very good idea to invest in a site
that already has bulk power consumers
like ArcelorMittal Steel. If a
gas plant is built at Saldanha, then
it could be a catalyst for the use
of gas in many other sectors such
as manufacturing and residential.
“Then gas plays a different
role in the economy,” says Winde.
“That is enabling a whole process
and it complements the work we
are doing. If you have solar and
wind power, then you need the
base, something to cover the
peak hours: gas can do that.”
About 100km south of
Saldanha, on the West Coast road
to Cape Town, is Atlantis, where
a green economy manufacturing
hub is under construction.
A number of companies have
already invested in making wind
turbines, ladders and platforms
for turbines and solar panels
among other things. With about
R680-million already invested,
and another R1-billion projected, the renewable energy economy is
making an impact.
There are many manufacturing opportunities. A pilot plant to investigate
one of the more sophisticated aspects of solar technology is
operating at the Techno Park in Stellenbosch. Photovoltaic Technology
Intellectual Property (PTiP) and German engineering company Singulus
Technologies have started making thin-film solar modules.
Funding for the project’s infrastructure came from the Technology
Innovation Agency, a unit of the Industrial Development Corporation
(IDC), and Stellenbosch University.
The Cape Peninsula University of Technology’s Energy Institute is a
leader in research in the field of electricity, and is also responsible for
a regional publication relating to domestic use, DUE.
A unit based on the Bellville campus of CPUT teaches courses
related to renewable energy. The South African Renewable Energy
Technology Centre (SARETEC) offers courses such as Wind Turbine
Service Technician and Solar Photovoltaic Service Technician and
various short courses such as Bolting Joint Technology. By the end
of 2016, more than 1 500 people had attended courses at SARETEC.
In November 2016, SARETEC became the home of the Solar
Academy, with the support of German solar energy company,
maxx|solar energy.
The Centre for Renewable and Sustainable Energy Studies is at the
University of Stellenbosch, while the University of Cape Town has the
Energy Research Centre. The University of the Western Cape is doing
research on the possibilities of hydrogen as an energy source.
A programme run by Green Cape claims to have engineered 21 000
tons in fossil greenhouse gas savings over five years through its Western
Cape Industrial Symbiosis Programme (WISP). This is the equivalent
to annual electricity usage in 5 600 South African households. WISP
is a network of 300 businesses to share unused resources and create
value from “waste”.
ONLINE RESOURCES
African Wind Energy Association: www.afriwea.org
Eskom: www.eskom.co.za
Green Cape: www.greencape.co.za
National Department of Energy: www.energy.gov.za
National Nuclear Regulator: www.nnr.co.za
South African Photovoltaic Industry Association:
www.sapvia.co.za
South African Wind Energy Association: www.sawea.org.za
Southern African Solar Thermal and Electricity Association (CSP):
www.sastela.org
Sustainable Energy Africa: www.sustainable.org.za
95 WESTERN CAPE BUSINESS 2017
OVERVIEW
Water
Farms and factories are becoming water wise.
SECTOR INSIGHT
WWF-South Africa and
Woolworths are working on
rural water plans.
• UCT researchers have
won a Water Research
Commission prize.
• French company Veolia
is installing desalination
plants.
In 2030 South African demand for water will be 17% greater than
supply. That is the verdict of the 2030 Water Resources Group.
The Western Cape’s dams were at 61% in the fourth quarter of
2016, against 90% at the same time in 2015. The biggest provincial
dam, which is Cape Town’s main source of water as well as providing
irrigation for farms, Theewaterskloof, stood at 52%, 14% down on the
previous year. Elsewhere:
• Garden Route Dam (George) was at 72% versus 100% in 2015
• Kammanasie Dam (Oudtshoorn) was at 29% versus 100% in 2015
• Hartebeestkuil Dam (Mossel Bay) was at 52% versus 88% in 2015
In November 2016, the City of Cape Town introduced level-three
water restrictions, banning all irrigation systems and hosepipes for
domestic lawns.
The good news is that South Africa and the Western Cape are doing
something about the situation. Times of crisis can also be times when
innovation and entrepreneurship come to the fore.
The Water Resources Group, an international consortium of private
companies, agencies and development banks, has established a South
African chapter, the Strategic Water Partners Network (SWPN). It has a
focus on three things: water efficiency and leakage reduction; effluent
and wastewater management; and the agricultural supply chain.
SWPN aims to support government and programmes have been put
in place in all three areas that are showing results.
The Western Cape Provincial Government has a two-pronged
strategy: new water infrastructure for agriculture and water demand
management programmes to
improve efficiency.
In terms of its water infrastructure
and maintenance of its
wastewater treatments plants,
the Western Cape fares relatively
well compared to most other
South African regions. Only 3%
of households reported to the
General Household Survey of
2014 that their water services had
been interrupted. Fully 87.7% were
satisfied with water delivery services.
Access to water and sanitation
in the province is generally
very good.
A provincial scheme to improve
rivers has been outlined
by Premier Helen Zille. The River
Improvement Plan ultimately
seeks to improve the lives of
people living alongside rivers,
but also ensure that river
water quality enhances the region’s
economy. The fruit, grape
and wine sectors need good
WESTERN CAPE BUSINESS 2017
96
OVERVIEW
quality water, as do agri-processing
concerns. Programmes
include upgrading wastewater
treatment plants, clearing
alien vegetation and
regular monitoring of water
quality. The scheme encompasses
the Olifants-Doorn and
Breede rivers.
The Western Cape
Department of Agriculture has
launched a climate action plan
called Smart Agri, which includes
doing studies on conservation
agriculture. The plan draws on
the expertise of academics and
companies in the private sector.
One of the possible plans
to add to the supply of the
Western Cape Water Supply
System is the Berg River–Voëlvlei
Augmentation Scheme. This
would entail pumping water
out of the Berg River in winter,
having first allowed for enough
water to cover the ecological water
requirements of the river and
the estuary.
The last time a severe drought
affected the province, many of
the towns along the Garden
Route installed desalination and
recycling plants. More than one
of these facilities had to close
because not enough care had
been taken in choosing the site,
so environmental issues and silting
stymied the plans.
However, Mossel Bay has a
functioning plant and Lamberts
Bay on the West Coast will soon
have a 1 700m³ per day plant. This
will be the sixth such plant installed
by French company Veolia
Water Solutions & Technologies.
Other sites include Saldanha,
Knysna and Plettenberg Bay.
A water stewardship programme has been introduced in the Breede
River catchment area. WWF-South Africa, Woolworths and Marks and
Spencer are collaborating on a scheme encouraging stone fruit farmers
to put in place systems that reduce risk to water supply and quality.
WWF-SA also has a Water Balance Programme that works to increase
the amount of clean water coming into the environment. Woolworths’
contribution to this plan involves getting rid of alien vegetation on the
farm where it sources its wines (Paul Cluver Wines) and in the Leeu
River catchment area.
Improving quality
The introduction by the National Department of Water and Sanitation
(DWS) and the Water Institute of South Africa (WISA) of the Blue and
Green Drop Awards has been very successful. The nation’s municipalities
receive scores reflecting how well they are doing in terms of
providing clean water.
In order to win a Drop Award (Blue for water quality, Green for waste
treatment), water systems have to score 95% or higher. The DWS has allocated
R4.3-billion to helping municipalities deliver water. The Interim
Water Supply Programme will concentrate on 23 district municipalities.
The awards are run by WISA with the help of consulting engineering
group Aecom SA. Aecom assists municipalities in preparing for the
audit and has a wide range of capabilities within the water-treatment
sector, including bulk and reticulation water and sewage pipelines.
The City of Cape Town won a C40 Cities Award in 2015 for its programme
to conserve and manage demand for water.
The Water Institute of South Africa has 1 800 members. It does
research, keeps its members up-to-date and runs conferences. As in
most areas of life in South Africa, environmental standards are set and
maintained by the South African Bureau of Standards (SABS).
The University of Cape Town’s Engineering and Built Environment
Faculty has won a Water Research Commission prize for its work on
the treatment of acid mine drainage.
ONLINE RESOURCES
Breede-Overberg Catchment Management Agency:
www.breedegouritzcma.co.za
National Department of Water and Sanitation: www.dws.gov.za
South African Water Research Commission: www.wrc.org.za
Trans-Caledon Tunnel Authority: www.tcta.co.za
Water Institute of Southern Africa: www.wisa.org.za
Water Resources Group: www.2030wrg.org
97 WESTERN CAPE BUSINESS 2017
BGCMA
Situated in the southwestern corner of South Africa,
the Breede-Gouritz Catchment Management
Agency (BGCMA) plays a pivotal role in protecting,
developing, conserving, managing and controlling
water resources. Formerly known as the Breede-
Overberg Catchment Management Agency, the Gouritz
region was recently incorporated within the mandate.
The merger came after the former Minister of Water
Affairs, Edna Molelwa, approved the expansion of the
boundary and area of operation of Breede-Overberg
CMA in terms of Section 78(4) of the National Water
Act, 1998 (Act No 36 of 1998). The area of operation
of the Breede-Gouritz Catchment Management
Agency includes the previous Breede-Overberg Water
Management Area and the Gouritz Catchment.
“The strategic focus of the agency incorporates
water resource planning, water use management, institutional
development, water resource protection
and water allocation reform,” says CEO Phakamani
Buthelezi. “The vision of the BGCMA, ‘quality water
for all, forever’, was developed around the question
of how the BGCMA can make a positive contribution
and engender meaningful change within a broader
social context.”
The main elements of the vision are inclusion and
participation of all stakeholders, mediation between
competing environmental and human priorities,
ensuring availability of good quality water and a
responsibility to assist in eradicating poverty.
Buthelezi explains that the BGCMA works closely
with local governments on water management and
water-related services to ensure synergy between the
priorities of the Catchment Management Agency and
the local and district municipalities.
“The BGCMA is the operating arm of the
DWS and its aim is to bring water resource services
in an efficient manner to the inhabitants of
the Breede-Gouritz Water Management Area,”
explains Buthelezi.
“Furthermore, the BGCMA works closely with
other government departments to ensure compliance
in all water use practices. The BGCMA provides
comments on rezoning and consolidations to
relevant municipalities, and on environmental impact
studies and basic assessment reports in conjunction
with the Department of Environmental
Affairs.”
The BGCMA is currently busy with the validation
and verification process where all water users will be
evaluated for legal compliance. This process will assist
with the management of water allocations in the
Breede-Gouritz Water Management Area (WMA).
WESTERN CAPE BUSINESS 2017
98
Our Vision is
“Quality water for all, forever”
Our Mission is to manage our water resources
responsibly through stakeholder engagement
and to devolve decision making to the lowest
level for the benefi t of all water users in the
Breede-Gouritz area.
Breede-Gouritz CMA is responsible for:
• Water Resource Planning
• Water Allocation Reform
• Water Use Management
• Institutional Management
• Resource Protection
For more information, contact us on:
Breede-Gouritz CMA (BGCMA)
51 Baring Street
Worcester, 6850
101 York Street (New Offi ce)
George, 6529
Breede-Gouritz CMA
Private Bag X 3055
Worcester, 6849
Ms Malehlohonolo Mlabateki -
Public Relations and Marketing Offi cer
Tel: (023) 346 8000
Fax: (023) 347 2012
E-mail: mmlabateki@breedegouritzcma.co.za
www.breedegouritzcma.co.za
OVERVIEW
Manufacturing
Diesel locomotive engines are powering up in Montague Gardens.
A
diverse manufacturing sector contributes 15% to the
Western Cape’s GDP and the renewable energy sector holds
huge potential for further growth.
Growth in the manufacturing sector between 2003 and
2013 averaged 2.2% and the Provincial Economic Review and Outlook
(Western Cape Treasury 2015) predicts the same level of growth
to 2020.
A recent Moody’s report on the green economy in Africa states
that South Africa is growing the fastest in that sector in Africa, and
at one of the fastest rates in the world. The Western Cape is driving a
green economy manufacturing strategy focussed on the suburb of
Atlantis. At this stage, some 70% of South Africa’s manufacturing in
renewables is happening in the Western Cape.
Even an established investor such as fridge manufacturer Hisense
is exploring ways to make its product greener, either through its own
processes or encouraging its suppliers to go down that route.
SECTOR INSIGHT
Seda has launched an
enterprise incubator at False
Bay TVET College.
• Cape Town’s catamaran
builders are world leaders.
Investment agency Wesgro
has noted the following major investments
into the Western Cape
since 2003: Hisense, Kimberly-
Clark, Tellumat, Exar Corporation,
GlaxoSmithKline and General
Electric.
WESTERN CAPE BUSINESS 2017
100
OVERVIEW
Within the Western Cape
manufacturing sector, the
agri-processing subsector (including
food and beverages
and tobacco) is the largest employer
(24%) followed by metals,
metal products, machinery and
equipment at 19%.
The Western Cape Provincial
Government has identified agriprocessing
as a key growth sector,
one of those most likely to
deliver economic growth and
jobs. For too many years, jobless
growth was the norm.
An initiative of the Small
Enterprise Development Agency
(Seda) aims to boost manufacturing
in metal fabrication and
furniture. False Bay TVET College
will host a Rapid Incubator and
Centre for Entrepreneurship
(CFE) which will teach students
how to start businesses
and how to make their
products marketable.
Areas
Manufacturing in the Cape
Winelands District makes the
single biggest GDP contribution
(19%) to provincial GDP. Many small
towns in the rural areas have some
kind of agri-processing facility.
Bonnievale has two cheese
factories, Mooivallei Suiwel and
Parmalat, which have recently
decided to increase the size of
their operation in the Breede
River Valley.
Iron production at Saldanha
includes hot-rolled coil produced
by ArcelorMittal (about
two thirds of which is exported
to other countries in Africa) and
cold-rolled and galvanised steel by DSP, a joint venture between
South Africa’s Industrial Development Corporation (IDC) and a Belgian
company, Duferco.
Within the City of Cape Town there are several areas where
manufacturing takes place, including Epping Industria, Blackheath
Industria, Bellville South, Paarden Island, Maitland and Ndabeni,
Airport Industria, Parow Industria and Montague Gardens.
A City of Cape Town survey has found that Montague Gardens
has 308 manufacturing concerns, more than any other area. It is
also well suited to logistics and distribution, being near to the N1
highway and to the road north along the West Coast.
MTU Friedrichshafen has spent R50-million on upgrading its
engine business at Montague Gardens. MTU is the core business
of Rolls-Royce Power Systems, a division of Rolls-Royce plc. The
overhaul was done as preparation to make 232 diesel engines for
Transnet Freight Rail. Additional training for staff has been provided
on site and in Germany, and an extra 20 staff have been added to
deal with the order.
MTU’s other facility in the Cape is a maintenance and support
centre at the South African Navy base at Simon’s Town. MTU also
has a strong presence in the mining sector.
According to the City, the industries in which Cape Town has
a competitive advantage include fishing, clothing and textiles,
electronics, furniture and wood product manufacturing – in addition
to the more service-driven hospitality, finance and business
services industries.
Food and beverages
The combination of excellent and plentiful agricultural produce, good
manufacturing capacity and a skilled workforce give the Western
101 WESTERN CAPE BUSINESS 2017
OVERVIEW
Cape a competitive advantage in the food and beverages sector.
A sophisticated transport infrastructure system allows it to service
international markets.
Famous Brands has bought a Western Cape brand in its drive for
greater backward integration. Lamberts Bay Foods supplied Famous
Brands restaurants with chips for two decades. With its purchase
from Oceana, Famous Brands now has greater control over one of
the vital items on the menu of its 26 restaurant brands, including
Wimpy, Steers, Fishaways and Mugg & Bean. Lamberts Bay Foods
sources potatoes from all over South Africa, but its proximity to the
potato-growing Sandveld region is helpful. A meat-processing plant
in Cape Town supplies the group with meat patties, ground beef,
chicken cubes and fillets. The Famous Brands logistics centre in the
Western Cape services 308 restaurants six days a week.
British American Tobacco, which has about 65% of the legal
domestic market, has its administrative headquarters at the V&A
Waterfront in Cape Town.
The wheat-growing areas of the Swartland host several mills such
as Sasko’s facility in Malmesbury. Bokomo has several manufacturing
facilities: Atlantis (Weetbix cereals); Epping (oats and baking facilitiy);
Ndabeni near Pinelands (Moir’s Jelly and custard and instant puddings);
Worcester (dried fruit and cake mix); Bonnievale (Werda salads);
Malmesbury (Sugarbird glace fruit and jams). Safari Vinegar is based
in the Strand and there are two
Heinz manufacturing plants at
Wellington and Atlantis.
Two of the biggest chickenprocessing
facilities are located
on the N7 highway to
Malmesbury (Tydstroom) and
on the N1 to Worcester (Rainbow
Chickens). The Western Cape has
about 16 000 commercial pork
sows and produces a quarter of
South Africa’s milk.
Willards has a factory in
Goodwood, in nearby Parow
there is a Simba factory and local
chip and snack manufacturer
Messaris, which has been in operation
since 1898, has a facility in
Elsies River. Nestlé produces condensed
milk and milk powder in
Mossel Bay and canned pet food
in Cape Town. Tiger Brands makes
mayonnaise in Bellville and have
WESTERN CAPE BUSINESS 2017
102
OVERVIEW
also invested heavily in its prepared
meals plant in Cape Town.
SABMiller’s Newlands brewery
is one of the busiest in the country
as it is responsible for providing
product for a very large
geographical area.
Coca-Cola bottler and distributor
Peninsula Beverage has
three plants, at Parow, Athlone
and Vredendal on the West Coast,
and employs 1 300 people.
Bashew’s cooldrinks has been
a Cape Town favourite since 1899
and the company’s returnable
bottle celebrated a 40th anniversary
in 2010. Quality Beverages
is a much more recent entrant
to the market but its two main
products, Jive and Aqua Blue, are
doing well.
The Ceres Beverage Company
(TCBC) has three major divisions
producing fruit juices, concentrate
and carbonated soft drinks. Twizza
has a factory in Bellville South.
Boat building
The Western Cape boat-building
sector is concentrated in greater
Cape Town. Several companies
are internationally competitive
in the catamaran and yacht markets
and there is a good spread of
firms making large custom boats,
inflatable boats and commercial
craft. Associated sectors include
sail-making, engines, repairs
and masts.
Key export markets include the
USA, Europe and the Caribbean
with increased interest being
shown from Asia and Australia.
Nautic Africa makes larger vessels,
including patrol, defense, oil
and gas platform, and commercial vessels. It is also active in service
and support, parts and spares and vessel leasing and management.
Robertson & Caine’s manufacturing facility in Woodstock produces
three boats a week for the international market. With a staff
complement of 1 350, a record of having launched more than
1 300 vessels and a subsidiary company in Tampa, Florida, the company
is a world leader in power catamarans and sailing catamrans.
Atlantis is home to Admiral Boat Manufacturers and Phoenix
Marine, both specialist catamaran manufacturers, and Celtic Yachts
who make catamarans and cruising yachts. Ullman Sails makes sails
in Maitland while Two Oceans Marine Manufacturing constructs its
catamarans on the Foreshore.
The Whisper Boat Building Academy is located at the False Bay
TVET College.
ONLINE RESOURCES
Cape Town Boatbuilding and Technology Initiative (CTBi):
www.ctbi.co.za
Cape Chamber of Commerce: www.capetownchamber.com
National Agricultural Marketing Council: www.namc.co.za
National Department of Trade and Industry: www.thedti.gov.za
South African Boatbuilders Export Council (SABBEX):
www.sabbex.co.za
South African Textile Federation: www.texfed.co.za
Wesgro: www.wesgro.co.za
103 WESTERN CAPE BUSINESS 2017
Seascape Stainless
Specialised manufacturer of stainless steel and aluminium components
and products for the marine, automotive and agricultural industries.
Seascape Stainless Steel Services and Formatube
(Pty) Ltd (an ISO 9001:2015 certified
company) have recently merged operations.
Seascape Stainless Steel Services has been
the preferred supplier to the marine industry
for a number of years, and with the addition of
Formatube under our brand, we can now offer
the specialised tube bending and manipulation
services in stainless steel and aluminium
that has won several awards.
In the early years of its existence, Seascape
Stainless Steel Services focused on the yachting
industry’s very particular stainless steel
needs. It has subsequently extended its specialist
manufacturing services to products
suitable for a number of other industries.
Formatube is renowned for its ability to
bend piping without welding it, resulting in a
finished product that has a smaller degree of
ovality than most competitor products.
Capitalising on the success of the two businesses
and to accommodate our growth, we
are now operating from a new state-of-theart
facility in Blackheath in the Western Cape.
We also intend expanding operations into
Europe in 2017.
What we do
Our skilled team of engineers and artisans with decades
of combined experience are able to provide a range of
specialist services including:
• Supply and distribution
• Tube forming and manufacture
• Manipulations
• Cutting
• Rolling
• Notching
• Precision bending
• Mandrel bending
• Customised designs
• Precision manufacturing of stainless steel and
aluminium marine accessories
• Polishing
• International trade in required products
• Guillotines and press-brake cutting and bending
• Laser cutting
CONTACT US TO DISCUSS YOUR MANUFACTURING
OR TUBE BENDING REQUIREMENTS.
TEL: +27 21 905 0087 | FAX : 086 695 0635
EMAIL: sales@seascapesss.com or koorts@seascapesss.com
Steel Services
Industries supplied
We are able to supply customised, high-quality
products to the following industries:
• Marine
• Automotive
• Agricultural
• Architectural
• Petrochemical
• Aerospace
• Pharmaceutical
• Food and Wine
Footprint
We have been supplying the local market for 15 years and the international market for eight years.
Our products are being supplied to a range of countries including the United Kingdom, the USA, New Zealand,
Australia, Norway, the Maldives, Seychelles, Mauritius and a number of other African and European countries.
MEMBERS OF:
Sassda
MEMBER
FIND US AT:
26 Cincaut Road,
Saxenburg Industrial Park 1,
Blackheath, Cape Town
OVERVIEW
Construction and property
development
Construction is on the rise in the Western Cape.
SECTOR INSIGHT
3 000 housing units are
planned for the old Conradie
Hospital site.
• Two new estates have
been built in George.
Commercial and residential development plans totalling
654 000m² were approved in the Western Cape in
2015, a 14% rise over the previous year and a figure
almost nine times greater than that for the province
of Gauteng.
The construction sector has grown steadily over the past several
years and is expected to be the fastest-growing sector in the
next five years, especially in the City of Cape Town. Infrastructure
spending and residential developments are the key drivers in this
trend (Western Cape Treasury).
The hotel-led construction boom in the central business district
of the City of Cape Town is the subject of a separate article
elsewhere in this publication. A large hotel and conference centre
development was opened in early 2016 at Century City.
House prices in Cape Town are moving upwards faster than
anywhere else in the country, both in terms of inflation (10.35%
vs 5.59%, Lighthouse) and average house prices (11.89% vs 5.6%,
Pam Golding). A six-bedroomed Clifton house sold for a record
R90-million in November 2016.
The economic development department of the City of Cape Town
has done a survey of 23 of the city’s industrial areas, designed to help
the decision-making process for
investors and businesses wanting
to expand. The report found
that there were 7 229 businesses
in the 23 areas and that industrial
property was concentrated in two
areas: Voortrekker Road and the
metropolitan south-east including
the airport precinct, Epping
and Philippi.
The CBD hosts 39% of office
space in Cape Town, with
Bellville/Tygerberg accounting
for 25%. The fairly new development
at Century City has already
secured 12% of office accommodation
with the established suburb
of Pinelands (which houses a
huge Old Mutual office) responsible
for 11%.
The first Western Capespecific
real estate investment
trust (REIT) listed
on the stock exchange in
November 2016. Spear Reit’s
R1.5-billion portfolio comprises
mostly industrial property (46%)
with retail and office space each
making up 22%.
WESTERN CAPE BUSINESS 2017
106
OVERVIEW
Growth areas
Brackengate 2 is a new industrial
area that has been developed
east of the R300 highway. It is
intended as a warehousing and
distribution node, given the easy
access to the N1 and N2 highways.
Shoprite has a distribution centre
at the site. Brackengate Business
Park, the first phase of the development,
has tenants such as Fruit
and Veg City, Docufile, Pearson
and British American Tobacco.
Voortrekker Road is the subject
of several interventions to
encourage bulking up (businesses
and residential). The
Greater Tygerberg Partnership is
working to provide a catalyst for
new developments that will build
on the area’s existing strengths:
transport links, medical facilities,
retail, motor dealerships and
residential.
Possible construction projects
could arise out of the fact that
about 100 000 students are in
the area. The Greater Tygerberg
Partnership has done a study
on students’ accommodation
needs and encouraged building
owners to cater to this need.
Two buildings have recently
been purchased with the intention
of turning them into student
accommodation.
The Voortrekker Road Corridor
already has services and an established
built environment
but it also has some dilapidated
structures and has lots of open
spaces. In other words, it has lots
of potential.
A pilot scheme is being
launched on the 22ha site of the
old Conradie Hospital, which lies not far from Voortrekker Road in the
suburb of Pinelands. A 3 000 housing unit development is planned
there, which will align with the provincial government’s concept of Live,
Work and Play. With the state (provincial or local government) putting
in the bulk infrastructure, costs for developers would be significantly
reduced – the quid pro quo is that the developer must then set aside
a certain number of housing units (49%) to grant-funded housing.
Spatial planning also underpins the thinking behind the concept
of an “aerotropolis”, the idea of using a city’s airport to be a catalyst for
growth across multiple sectors. The airport’s cluster of industries and
storage facilities should be linked to the metropolitan south-east and
two sections in Philippi: the industrial area and the horticultural area.
An area that continues to grow in terms of residential property
is the West Coast. With mountains to the east, it is logical that areas
north of Cape Town will grow: the only constraint is access to water.
Blouberg, Parklands and Sunningdale continue to attract good houses
for residential property. Several schools have been built in the area.
A developer has put forward a plan to build a city near Melkbosstrand.
The ambitious plan is called Wescape. The MyCiti bus service with its
own dedicated lane is making it easier to live in suburbs along the West
Coast. MyCiti also serves the Century City development.
George on the Southern Cape coast has seen some substantial new
developments, including a private hospital built for MediClinic, some
new malls and a number of estates being completed. The famous
Fancourt facility, which incorporates residential holiday accommodation
and a hotel, also has three golf courses (but one has a very
exclusive membership). Kingswood is another premier golf estate in
George. Pam Golding was selling a three-bedroomed townhouse at
Kingswood in November 2016 for R2.35m.
Newer estates have been built on the eastern edge of George,
near to the recently constructed mall, the Eden Meander Lifestyle
Centre. Kraaibosch estate will have four options for potential buyers,
including a retirement village. The Blue Mountain Lifestyle Estate has
similar options.
ONLINE RESOURCES
Construction Industry Development Board: www.cidb.org.za
Greater Tygerberg Partnership: http://gtp.org.za/
Master Builders and Allied Trades Association, Western Cape:
www.mbawc.org.za
SA Estate Agency Affairs Board: www.eaab.org.za
SA Institute of Architects: www.saia.org.za
SA Institute of Valuers: www.saiv.org.za
SA Property Owners Association: www.sapoa.org.za.
107 WESTERN CAPE BUSINESS 2017
OVERVIEW
Tourism
New flights are bringing greater numbers of tourists to the Western Cape.
The Western Cape attracts huge numbers of tourists every year and
this is a sector where positive growth has already created many job
opportunities. Every kind of tourism is doing well, from leisure and
adventure tourism to meetings and conferences.
Tourism grew at 6.6% for the five years to 2014 and generated jobs
growth in the same time period of 7.7%. The sector employs 204 000 people
in formal jobs and is worth about R17-billion to the regional economy.
A project to increase the number of seats available on aeroplanes
flying into Cape Town International Airport has reaped remarkable
success. Between July 2015 and December 2016 the Cape Town Air
Access programme secured an increase in 408 400 direct two-way
seats to Cape Town from destinations such as Dubai (140 000), Turkey
(110 000), Ethiopia (80 000) and the Netherlands (30 000). A total of
162 000 tourists travelled to the Western Cape from the USA; arrivals
at the Cape Town International Airport increased 16% year-on-year
in 2015.
The airport regularly wins accolades such as Best Airport in Africa
and the total number of passengers passing through the airport has
been above eight-million every year since the FIFA football World Cup
in 2010, with the figure approaching 10-million in 2015/16.
SECTOR INSIGHT
The Cape Town International
Convention Centre will be
twice as large in 2017.
• Scheduled flights are
available to Plettenberg
Bay.
• Hilton Hotels and Resorts
runs a resort in Knysna.
• Cape Town’s Foreshore
is alive with new tourism
developments.
George Airport had a total of
about 720 000 passengers last
year. Airlink, SA Express and kulula
are the airlines that fly into George.
It serves as a tourism hub for the
Southern Cape region, includ-
WESTERN CAPE BUSINESS 2017
108
OVERVIEW
ing destinations such as Knysna,
Oudtshoorn and Plettenberg Bay.
CemAir offers scheduled flights to
Plettenberg Bay.
Several strategies are being
adopted to further improve the
province’s tourist offering and
increase numbers. These include
a service excellence programme
where a town’s residents are encouraged
to act as tourism ambassadors.
A pilot project was successfully
launched in Clanwilliam,
where everyone in the town,
including shop clerks and petrol
station attendants, joined in.
Work is being done on improving
the system of visa approvals
and on linking various sites associated
with the late President
Nelson Mandela. Halaal tourism
also holds tremendous potential.
One of the reasons that tourists
visit the Western Cape is the
quality of its beaches. The province
has 29 Blue Flag-accredited
beaches, an international quality
standard that covers 33 different
measures. Ten beaches in greater
Cape Town together with the likes
of Santos (Mossel Bay), Grotto
(Hermanus), Witsand (Hessequa)
and Wilderness (Eden) have made
the grade. A further five marinas
have qualified for the programme,
the local version of which is run
by the Wildlife and Environment
Society of South Africa.
Hotels and conferences
The capacity of the Cape Town
International Conference Centre
(CTICC) is being doubled. The
R832-million expansion will add
31 000m², including 10 000m² of
conference and exhibition space. CTICC East (the new section) will
connect to CTICC West via a tunnel (for services) and a skybridge
over the Heerengraght. The new section is expected to open in 2017,
and will line up along other new Foreshore buildings such as KPMG
Place and the Netcare Christiaan Barnard Memorial Hospital. The
South African Green Building Council has given the CTICC expansion
a Four-Star Green Building rating.
The Foreshore is at the heart of a series of new developments
that are set to have a major impact on the tourism industry. These
include the new Cruise Terminal and the adjacent Yacht Club, a hotel,
residential and commercial complex being developed by the Amdec
Group. This precinct is very close to the entrance to the CTICC and
will be linked to the Waterfront by the extension of the existing canal.
On the other (eastern) edge of the Foreshore, an a major development
is in the works which will include two Marriott hotels. In
the Cape Town CBD there are going to be 500 new rooms, courtesy
of two Tsogo Sun hotels, plus a smaller hotel in the De Waterkant
(Capital Mirage). Tsogo Sun already operates several hotels in greater
Cape Town, including three full-service hotels in the city centre, the
Cullinan, Southern Sun Waterfront and Southern Sun Cape Sun. The
other seven hotels cover five brands in the Tsogo Sun stable.
Elsewhere in the Western Cape, Tsogo Sun has hotels in Caledon,
Beaufort West, Mossel Bay and Plettenberg Bay.
109 WESTERN CAPE BUSINESS 2017
OVERVIEW
Outside of the Cape Town CBD, a revamp of the Ritz in Sea
Point will add another 220 rooms to the city’s capacity while in
Franschhoek, the last word in luxury has opened as Leeu House
(part of the Leeu Collection). Analjit Singh has also acquired Le
Quartier Français restaurant, one of best known in a town where
outstanding restaurants are plentiful, and a wine label, Mullineux
& Leeu Family Wines.
Protea Hotels, now part of the Marriott Group, has 10 hotels in
Cape Town and a further one each in Franschhoek and Stellenbosch.
There are two hotels in George.
Three of the brands of City Lodge Hotel Group are represented
by seven hotels in the Western Cape, with all but one of the hotels
(the George Town Lodge) being located in Cape Town.
Hilton Hotels and Resorts has three Western Cape properties,
two hotels in Cape Town and the Conrad Pezula Resort & Spa on
the eastern head of the Knysna Heads.
The Waterfront will soon be getting two more hotels (Radisson
Red) and the Silo Hotel attached to the Zeitz Museum of
Contemporary Art Africa.
In addition to all of these beds available in Cape Town, there are
15 000 properties on Airbnb. A Western Cape tourism delegation
met with Airbnb in the USA in 2016.
Country Hotels has upgraded the 42-room Clanwilliam Hotel as
part of its plan to roll out good accommodation in smaller towns.
What used to be known as the Hantam Hotel in Calvinia is now
the refurbished Calvinia Hotel and Tankwa Lodge offering 25 airconditioned
rooms and easy access to flower-spotting and
the Tankwa Karoo National
Park. Plett Lagoon Villa on
the Keurbooms Lagoon is
rather different to the rest
of the Country Hotels suite
of hotels in that it is a fivebedroomed
house to rent.
Country Hotels has other hotels
in the Northern Cape Province.
Events
The international HSBC Rugby
Sevens tournament was held for
the first time in Cape Town in
2015 and was a huge success. The
City of Cape Town says that the
tournament attracted more than
100 000 fans, at least 25 000 of
whom were international visitors.
The local economy benefited to
the tune of R539-million. A contract
has been signed to keep the
tournament in the city to 2018.
The Cape2Rio yacht race returns
to the Cape in January 2017.
WESTERN CAPE BUSINESS 2017
110
OVERVIEW
In the last race in 2014, a total of
eleven of the fleet of 37 boats had
to retire in stormy weather, testament
to the tough nature of the
event. The event first took place in
1971 and since then it has become
a byword for the glamour and
gruelling nature of long-distance
yacht racing. Royal Cape Yacht
Club will host the event, which is
sure to boost the coffers of Cape
Town’s tourism industry.
The Klein Karoo National Arts
Festival (KKNK) is held every year
in Oudtshoorn in April. It attracts
hundreds of artistic productions of
every sort, mostly in Afrikaans, with
attendances normally topping
90 000 festival-goers
ONLINE RESOURCES
CapeNature: www.capenature.co.za
Cape Town Tourism: www.capetown.travel
Destinations Expo: www.cadek.co.za
Garden Route and Klein Karoo:
www.visitgardenrouteandkleinkaroo.com
South African Golf Tourism Association: www.sagta.co.za
South African National Parks: www.sanparks.co.za
South African Tourism: www.southafrica.net
Tourism Business Council of South Africa: www.tbcsa.travel
Tourism Grading Council: www.tourismgrading.co.za
Wesgro: www.wesgro.co.za
Cape to Rio: www.cape2rio2017.com
Plettenberg Bay: www.plett-tourism.co.za
Wildlife and Environment Society of South Africa:
www.wessa.org.za
111 WESTERN CAPE BUSINESS 2017
OVERVIEW
Banking and financial services
The JSE has opened an Exchange Hub in Cape Town.
SECTOR INSIGHT
A Stellenbosch bank has expanded
the Big Four to Five.
• International banks are
setting up app development
hubs in Cape Town.
The finance and insurance sector contributes 10.9% to provincial
GDP and grew at a rate of 6.4% between 2000 and 2013.
Research done by banking group First National Bank notes
how successful the Western Cape has been in attracting financial
services companies of every sort. These range from asset managers to
hedge funds, venture capitalists and insurers. The sector outperformed
most other sectors according to the report, and further growth is
anticipated (FNB Chartbook).
The decision by the Johannesburg Stock Exchange (JSE) to open
a JSE Exchange Hub in Cape Town confirms the city’s importance
in the financial world. There are eight Cape Town-based companies
in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers,
Woolworths, British American Tobacco, Remgro, Shoprite Holdings
and Sanlam.
The head offices of financial firms are dotted all over Cape Town.
These include Old Mutual (a huge complex in Pinelands), Foord (also
in Pinelands), Coronation (Newlands), Prudential (Claremont), Sygnia
(Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has
its headquarters in Stellenbosch and is well represented in rural
towns in the province. Even the small rural town of Greyton is home
to Overberg Asset Management.
Insurers such as Santam and
Metropolitan Life are based
in Bellville.
Most of the banking groups
also offer a range of services
such as asset management or
investment advice.
Financial services group Old
Mutual (which has a 54% stakeholder
in Nedbank) is set to create
four stand-alone businesses
out of the Old Mutual Group. This
will allow the UK-based wealth
management business and the
New York-based asset managers
to be free of linkages to the
rand, while the South African
businesses, Nedbank and Old
Mutual Emerging Markets, can
focus on their specialities.
Fintech is the new buzz word
in the world of banking. Barclays
has established a worldwide organisation
to promote the latest
thinking in app development.
Rise has seven outlets around
the world, including one in
Woodstock in Cape Town. A
WESTERN CAPE BUSINESS 2017
112
OVERVIEW
French-funded fintech operation
was launched at Century City in
November 2016.
In 2015, the Western Cape
Provincial Government, the
University of Cape Town, Barclays
Africa Group, FirstRand and
Liberty launched the African
Institute of Financial Markets
and Risk Management (AIFMRM).
One of its aims is to meet the
demand for skills by developing
local talent.
Banking
For many decades South Africa
had a retail banking Big Four –
Standard Bank, Nedbank, Absa/
Barclays and First National Bank.
All of them have a strong presence
in the Western Cape, but
the big news in the sector since
2001 has been the emergence
of Stellenbosch-based Capitec
Bank. Based on Capitec’s results
for 2015/16, BusinessTech published
a chart giving Capitec the
fourth-most customers, at 7.3-million,
just less than Nedbank and
slightly more than FNB. Standard
Bank (about 11-million) and Absa
(about nine-million) are top of
the list.
With the renewable energy
sector being actively pursued
in South Africa, a whole new
industry in need of funding has
opened up for banks.
Competition among banks
in reaching out to South Africa’s
emerging economy is stiff.
Finscope’s 2014 survey of
South African banking and financial
surveys shows that between
2004 and 2014 a remarkable
eight-million people were connected to the financial system in
some way. Overall, the “financially included” reached 31.4-million (up
from 17.7-million in 2004). In a category called “formally served” which
includes services other than formal banks with branch networks, the
percentage of South Africans so served grew from 50% to 80%; in
the “banked” category (more traditional but including new devices),
the percentage grew from 46% to 75%. This is partly because South
Africa’s formal banking sector has such excellent – and widely spread
– infrastructure.
Among recent innovations designed to reach the unbanked were
Teba Bank’s decision to allow customers to deposit at supermarkets,
Pick n Pay Go Banking (a division of Nedbank), 70% of Absa’s new ATMs
(400 in one year) in poorer areas and Absa’s launch of two mobile
banks. FNB created mobile branches and most of Standard Bank’s
new sites were planned for townships (Finscope).
Absa’s partnership with Thumbzup allows shops to accept card
payments with smartphones and tablets. Absa’s Entry Level and
Inclusive Banking (Elib) branches have proved popular, accounting
for an increasingly high percentage of the bank’s loan book.
Nedbank has Approve-it, which allows customers to accept or
reject an Internet transaction by cellphone.
FNB offers a range of cellphone-banking options and a Facebook
application where cellphone vouchers can be posted on the socialnetworking
site. The eWallet application converts the voucher into
cash or airtime.
Standard Bank’s community-banking initiative offers a low-cost
cellphone-banking service. Retailers can act as agents for the bank,
even in remote rural areas. Shops such as Shoprite, Pep and Spar are
connected, as are certain spazas.
The stokvel (savings clubs) market is estimated at R44-billion and
developing products for this market could be a lucrative outlet for
South African financial services companies.
ONLINE RESOURCES
Alternative Exchange (AltX): www.altx.co.za
Auditor-General South Africa: www.agsa.co.za
Banking Association South Africa: www.banking.org.za
Financial Services Board: www.fsb.co.za
Insurance Institute of South Africa: www.iisa.co.za
Insurance South Africa: www.insurance.za.org
JSE Limited: www.jse.co.za
Post Bank: www.postbank.co.za
South African Reserve Bank: www.resbank.co.za
South African Institute for Chartered Accountants:
www.saica.co.za
113 WESTERN CAPE BUSINESS 2017
INTERVIEW
Renewed focus on
improved customer
experience
Provincial Head Retail and Business Banking Standard
Bank Western Cape, Eben Klopper, explains what the bank
is doing to provide the innovation and service that matter
most to customers.
Eben Klopper
What is Standard Bank’s purpose in South Africa?
As a personal and business bank in South Africa, our purpose is to
improve lives and fulfil aspirations across the African continent. We
believe that we can achieve this through our vision, which is to radically
redefine client experience by understanding and delivering what
matters to our customers.
BIOGRAPHY
Eben Klopper, the newly appointed
Provincial Head Retail
and Business Banking for the
Western Cape, is a seasoned
banking professional. Having
started on the bottom rung of
the ladder at Standard Bank in
1990, his progress in the organisation
has seen him fulfi l a
variety of business and commercial
banking roles in four
South African provinces. Prior
to his promotion to Regional
Head he was the Executive:
Head Channel Business Banking,
Commercial Banking and
Specialised Sales.
What is your footprint beyond South Africa?
Standard Bank Group prides itself on being a global bank with African
roots. The largest African bank by assets and earnings, it operates in
20 countries on the African continent, including South Africa, as well
as in other selected emerging markets.
The Group’s aim is to grow their presence selectively in high potential
markets in Africa and in other emerging markets, either organically
or, where appropriate, by acquisitions.
In your new role of Provincial Head Retail and Business
Banking, what is your strategy regarding Standard
Bank’s business in the region?
As a team, our priorities include greater emphasis on customer experience.
We intend to make sure that every customer feels like a VIP; we
will do this by raising our game and getting to know what matters
most to them.
One of the ways in which we will improve customer experience is
through our digital solutions, as these assist customers by freeing up
their time. Something else that will directly impact customers is our
goal of decentralising decision-making so that decisions are made as
close as possible to the “frontline”.
We want to increase our market share in all customer segments
and to build specialist capabilities to serve our small enterprise (SE),
commercial and business banking clients.
WESTERN CAPE BUSINESS 2017 114
INTERVIEW
What will some of the key focus areas be?
Foreign exchange: In the Western Cape we will be
driving our foreign exchange (FX) and international
banking capabilities. Standard Bank is relentless in
providing support to our businesses with a view to
improving liquidity and driving growth across the
African continent.
Companies active in the international market,
be it in trade or the provision of services, may find a
Customer Foreign Currency account a useful mechanism
for managing the flows of foreign currency
receipts and payments. It is suitable for businesses
with a high import and export turnover, including
large volumes of shipments of relatively small values.
The Western Cape presents many international
trade and foreign exchange opportunities, which
can be offered and facilitated by our FX specialists.
They are fully integrated in our Business Banking
Business Centres to support our Standard Bank and
non-Standard Bank client base.
“OUR RESEARCH INDICATES
THAT TWO OUT OF EVERY 10
BUSINESS CLIENTS ARE KEEN
TO EXPAND TO THE REST OF
AFRICA.”
A game changer, in forex capabilities, is Standard
Bank’s strategic partnership with the Industrial and
Commercial Bank of China. While Standard Bank
already conducts 2.1-million forex trades each
year, the bank’s partnership with the Industrial and
Commercial Bank of China provides a unique ability
to deal Renminbi competitively.
Resident Africa advisor: Our research indicates that
two out of every 10 business clients are keen to expand
to the rest of Africa and we have appointed
someone with valuable Africa experience to act as
a resident advisor to businesses in the province. Our
expert will be able to make recommendations on
doing business in any of the 20 African countries in
which Standard Bank has a presence.
During 2016, in support of our focus on the rest
of Africa, we led two successful trade delegations –
one to East Africa and one to West Africa. This was
a first for us and the initiative was very well received.
Commercial property finance: Another key focus
is commercial property finance. I have been actively
involved in this area over the past few years and
it has been a successful market for the bank, but
there are additional opportunities to explore in the
Western Cape.
A business’s premises are integral to their trading
operation and it is important that businesses secure
tenure as well as create equity in their investment.
Standard Bank understands the importance of supporting
its customers in all aspects of their business
growth, including where customers are diversifying
from their main business interests to invest in
commercial rental properties.
The Western Cape commercial property finance
market has continued to show strong growth, outperforming
many of its peers in the country, which
further supports the bank’s focus on the industry
going forward.
Have the needs of and demands from
your key business clients changed in the
past few years or do the challenges they
experience essentially remain the same?
Economic growth has been muted and so
the landscape has definitely changed. For this
115 WESTERN CAPE BUSINESS 2017
INTERVIEW
reason, many of our customers are looking outside
of South Africa’s border. Cross-border financing is
more complex and so their banking requirements
have changed in some cases. Volatility and currency
fluctuations have meant that forex hedging and
forward-buying have become more important.
These days, customers also have a greater choice
when it comes to international products and are not
compelled to use local banks for each transaction.
Increasingly, executives are complaining about
the difficultly they have in recruiting appropriately
skilled people.
Has Standard Bank introduced any new
products or services recently?
In the last year we introduced a reward programme
for our small enterprise (SE) clients – UCount:
Businesses with an annual turnover of up to
R20-million stand to benefit from these rewards.
Payment solutions: BluMobi is another innovation
we’ve introduced; it functions as a fully mobile
point-of-sale solution. SnapScan and Tap to Pay are
other payment solutions that are making it far more
convenient for business clients to collect payment
and for individuals to make payments. SE clients also
benefit from Banker Chat 24/7.
Online banking: We are in the process of enhancing
our online banking services, particularly for businesses.
Customers are already able to view balances,
check statements and make payments on their
business accounts.
We have spent time aligning the look and feel
of our applications across various digital platforms,
which means that irrespective of whether customers
choose to use a mobile phone, a tablet or a
computer, they will have the same online experience.
Tradesmen and medical professionals: Two new
areas of focus in the SE segment include specific
value propositions for tradesmen and the medical
profession. The Tradesmen offer packages a number
of banking services at a very affordable rate. The
Medical proposition provides solutions that will
assist medical professionals in both their personal
capacity and business capacity.
Instant Money: Another product that has been extended
to our business customers is Instant Money,
“THE WESTERN CAPE
COMMERCIAL PROPERTY
FINANCE MARKET HAS
CONTINUED TO SHOW STRONG
GROWTH, OUT- PERFORMING
MANY OF ITS PEERS IN THE
COUNTRY.”
a payment solution that allows you to send money
to anyone in South Africa by using their cellphone
number. This solution will allow businesses to make
payments in a cost-effective and secure manner.
Always On: As far as our personal customers are concerned,
they benefit from Always On – 24/7 banking
anywhere, anytime. Customers can now conduct
their banking through email, WeChat, Facebook, a
call to their personal banker or by simply using our
banking app and new internet banking functionality.
Shari’ah offering: Many of our Western Cape customers
will be pleased to hear about an improved
Shari’ah offering relating to fixed deposits for personal
and business purposes as well as forward exchange
contracts.
Kidz Banking: We have also aunched a Kidz Banking
app that teaches children how to manage money
from a young age.
Having mentioned all of these innovations and
new products, I still believe, however, that the real
differentiator will be in the way that we execute
our intentions. Great thinking and effective marketing
messaging are important, but we intend to ensure
that Standard Bank Western Cape implements
excellent service and that we do what matters most
to customers.
WESTERN CAPE BUSINESS 2017 116
FOCUS
Banking for your business
Standard Bank understands that as a business owner, you would prefer
to free up your time and focus on running your business. Its online
banking solutions allow you to do that.
We understand that to manage your business you cannot
be restricted by banking hours. We also understand that
managing your financial affairs online can be daunting.
At Standard Bank we have a range of online banking
solutions that enable you as the business owner to do your everyday
banking, everywhere you are. Online banking is convenient, cost effective
and secure. You can have peace of mind when you transact online.
How does online banking help you manage
your business?
• It saves you time, allowing you to focus on running your business
• It helps you maintain control of all activity on your
business accounts
• It allows you to bank everywhere you are
What can I do on online banking?
• Pay people and companies, that is, suppliers or invoices
• Transfer funds to and from your business accounts
• View account balances and download statement’s history
• Top-up on prepaid services
Is it secure?
• Yes. As the business owner, you will maintain complete oversight
over all activity on the business account
• You are notified every time your online banking profile is accessed
• Your confirmation is required (One Time PIN) before beneficiaries
are added or when you change your profile
• You are notified when funds leave your account (email or SMS
notification) and you always know your latest balance
• You can manage transactions limits (Electronic Account Payment and
ATM limits), minimising your online exposure while giving you control
How do I sign up?
• Register online or download the Standard Bank app form your app store
• If you already have access to
the app, you can use the same
login details to sign in to online
banking
What do I need?
• A smartphone, tablet, laptop
or desktop computer
• You must be the director or
owner of your business
• You have a card and PIN linked
to your business account
What are the costs?
• Access is free
• Account management fees,
transactional fees and subscription
fees are as per the
annual Standard Bank pricing
schedule
More info
To find out more about online
banking, contact us anytime
via the BizDirect Response
Centre on 0860 109 075,
via email bizdirect@standardbank.co.za
or via WeChat
(BB_Entrepreneur).
Visit our website to see our
security tips and terms and
conditions for using Standard
Bank digital channels.
www.standardbank.co.za
WESTERN CAPE BUSINESS 2017
118
Global Africa Network
Promoting business, trade and investment in SA’s nine provinces
www.gan.co.za
www.southafricanbusiness.co.za
www.easterncapebusiness.co.za
www.freestatebusiness.co.za
www.gautengbusinessguide.co.za
www.kwazulunatalbusiness.co.za
www.limpopobusiness.co.za
www.mpumalangabusiness.co.za
www.northerncapebusiness.co.za
www.northwestbusiness.co.za
www.westerncapebusiness.co.za
NETWORK MEDIA
Tel 021 657 6200
Email sales@gan.co.za
Web www.gan.co.za
OVERVIEW
Information and
communications technology
Cape Town is attracting ICT investment.
Providing better and broader access to broadband is a key
priority for the Western Cape. The provincial government has
identified the issue as an economic enabler that will act as a
catalyst for growth across several economic sectors. There are
2 000 ICT firms in the Western Cape and they have 17 000 employees.
Private companies Link Africa and Fibrehoods are rolling out highspeed
connections via fibre-optic cables to residential addresses. As
part of the contract, Fibrehoods must supply the city with a line for
the use of public institutions.
A group of entrepreneurs, investors and developers has created the
non-profit Silicon Cape Initiative which aims to support the burgeoning
sector. Just one of its groups, the Startup Group, has 425 members
and it offers advice and support.
The Cape Innovation and Technology Initiative (CiTi) is another
support system for the ICT sector. The Bandwidth Barn (shared office
space in Woodstock) is one of three initiatives run by CiTi. The others
are VeloCiTi (enterprise and entrepreneur development) and CapaCiti
(tech skills and job placement). The University of Cape Town claims a
90% placement rate for CapaCiti and more than 400 graduates. CiTi
collaborates with two departments of the Western Cape provincial
government, Oracle and On The Ball College to present the Java
Schools Programme, which promotes programming.
Barclays Bank has invested in a fintech incubator in Cape Town, Rise.
The building has an auditorium, meeting and conference rooms but
the main idea is to create a community of thinkers and developers.
Banks are keen to stay ahead of the game and there are six other Rise
incubator locations around the world, including New York and Mumbai.
It was a banking application (app) that won the IT Challenge presented
by Standard Bank in 2015. Three students from the University
of the Western Cape created a voice-activated online banking app,
ONLINE RESOURCES
Cape Innovation and Technology Initiative: www.citi.org.za
Independent Communications Authority: www.icasa.org.za
Silicon Cape: www.siliconcape.com
State Information Technology Agency: www.sita.co.za
SECTOR INSIGHT
Silicon Cape is a catalyst for
tech in the Western Cape .
which they called EasyBank. The
challenge was to use and adopt
the Amazon Echo app.
French Tech Labs was
launched as a fintech incubator
at Century City in November
2016. The same company earlier
established Methys Labs. The new
incubator will offer mentoring
support for innovators, connections
to possible investors and
a programme where selected
candidates will travel to France
for work opportunities.
There is no business sector
less in need of a geographic
home than ICT but a section of
Cape Town is developing into
a Silicon Valley: Marconi Beam/
Century City. DVT’s app-testing
facility is immediately south of
that location (just off the N1 at
Northgate Island) so perhaps
this is the home of Western Cape
ICT. Wembley Square and nearby
buildings in Gardens might
be another candidate, where
Amazon Development Centre is
a core tenant.
WESTERN CAPE BUSINESS 2017
120
Business process outsourcing
Offshoring – foreign BPO contracts – is growing fast.
OVERVIEW
The South Africa business process outsourcing sector has
consistently won international awards for the work it does
for international companies and 2016 was no exception. The
Global Sourcing Association (previously National Outsourcing
Association) capped South Africa as the “Offshoring Destination of
the Year” for 2016 in London in November.
BPO involves any internal business function that a company chooses
to outsource to a specialist in that field, for example accounting or
call centres (also known as customer service centres). One interesting
example relates to loading an aeroplane’s freight load – in Frankfurt!
The loader does this in the Western Cape via remote cameras and
weighing machines. After work the loader can visit the beach.
Offshoring refers to BPO that is done across international borders.
Cape Town is a leader in the field. A City of Cape Town report gave
the BPO contribution to provincial GDP in 2014 as approximately
R9-billion.
The national Minister of Trade and Industry, Rob Davies, says that
the local BPO sector has had compounded growth since 2012 of 25%
year-on-year. There are approximately 30 000 jobs nationally with the
top market being the UK.
Within the Western Cape sector, 63% of companies are involved in
inbound customer service work; back office accounts for 13.8% and
debt collection at 9.1%. UK shop Asda and online retailer Amazon
have large customer service centres in Cape Town.
The fact that greater Cape Town is home to three well-regarded
universities, a university of technology and two technical colleges
is a major advantage in attracting companies with sophisticated
operations, such as BPO. A director of a British business intelligence
ONLINE RESOURCES
Business Process enabling South Africa (BPeSA):
www.bpesa.co.za
National Department of Trade and Industry: www.dti.gov.za
Wesgro: www.wesgro.co.za
SECTOR INSIGHT
Incentives are on offer to
BPO investors.
• South Africa’s BPO sector
won a 2016 global award.
company that has operations
in Cape Town, S-RM, says the
that Cape Town’s position as a
“knowledge nexus” was a major
factor in deciding to open an
office in the city.
Other factors in favour of
Cape Town are the relatively neutral
accents, good infrastructure
(financial and telecommunications)
and the time zone being
the same or close to Europe’s.
The Department of Trade
and Industry (dti) offers some
incentives to BPO investors. A
base incentive is calculated on
projected offshore jobs to be
created and is awarded on actual
offshore jobs created. The
incentive has a two-tier structure
for non-complex and complex
jobs and is paid over a five-year
period. A bonus incentive becomes
payable at the end of the
five-year period.
121 WESTERN CAPE BUSINESS 2017
LISTINGS
South African National Government
An overview of South Africa’s national government departments.
www.gov.za
President
Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001
Postal address: Private Bag X1000, Pretoria 0001
Tel: +27 12 300 5200
Fax: +27 12 323 8246
Website: www.thepresidency.gov.za
Website: www.economic.gov.za
Deputy President
Address: Union Buildings, Government Avenue, East Wing,
1st Floor, Arcadia, Pretoria 0001
Postal address: Private Bag X1000, Pretoria 0001
Tel: +27 12 300 5200
Fax: +27 12 323 8246
Website: www.thepresidency.gov.za
Minister in the Presidency
Address: Union Buildings, Government Avenue, East Wing,
1st Floor, Arcadia, Pretoria 0001
Postal address: Private Bag X1000, Pretoria 0001
Tel: +27 12 300 5200
Fax: +27 12 300 5795
Website: www.thepresidency.gov.za
Dept of Agriculture, Forestry and Fisheries
Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street
and Soutpansberg Road, Arcadia, Pretoria
Postal address: Private Bag X250, Pretoria
Tel: +27 12 319 7319
Fax: +27 12 319 6681
Website: www.daff.gov.za
Department of Arts and Culture
Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza
Bopape streets, Arcadia, Pretoria 0001
Postal address: Private Bag X899, Pretoria 0001
Tel: +27 12 441 3000 | Fax: +27 12 440 4485
Website: www.dac.gov.za
Department of Basic Education
Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001
Postal address: Private Bag X9034, 8000
Tel: +27 12 357 3000
Fax: +27 12 323 5989
Website: www.education.gov.za
Department of Communications
Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival
Street), Hatfield, Pretoria 0001
Postal address: Private Bag X745, Pretoria 0001
Tel: +27 12 473 0000
Fax: +27 12 462 1646
Website: www.doc.gov.za
Department of Cooperative Governance and
Traditional Affairs
Address: 87 Hamilton Street, Arcadia, Pretoria 0083
Postal address: Private Bag X802, Pretoria 0001
Tel: +27 12 334 0705
Fax: +27 12 326 4478
Website: www.cogta.gov.za
Department of Correctional Services
Address: 123 Poyntons Building, West Block,
cnr Schubart and Church streets, Pretoria 0001
Postal address: Private Bag X136, Pretoria 0001
Tel: +27 12 307 2934/2884
Fax: +27 12 323 4111
Website: www.dcs.gov.za
Department of Economic Development
Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &
Esselen streets, Sunnyside, Pretoria 0001
Postal address: Private Bag X149, Pretoria 0001
Tel: +27 12 394 1006
Fax: +27 12 394 0255
Website: www.economic.gov.za
WESTERN CAPE BUSINESS 2017
122
LISTINGS
Department of Defence
Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001
Postal address: Private Bag X427, Pretoria 0001
Tel: +27 12 355 6101 | F ax: +27 12 347 0118
Website: www.dod.mil.za
Department of Energy
Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001
Postal address: Private Bag X96, Pretoria 0001
Tel: +27 12 406 8000
Fax: +27 12 319 6681
Website: www.energy.gov.za
Department of Environmental Affairs
Address: Environment House, 473 Steve Biko and Soutpansberg Road,
Arcadia, 0083
Postal address: Private Bag X447, Pretoria 0001
Tel: +27 12 310 3537 | Fax: +27 086 593 6526
Website: www.environment.gov.za
Department of Finance (National Treasury)
Address: 40 WF Nkomo Street,
Old Reserve Bank Building, 2nd Floor, Pretoria
Postal address: Private Bag X115, Pretoria 0001
Tel: +27 12 323 8911 | Fax: +27 12 323 3262
Website: www.treasury.gov.za
Department of Health
Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets,
Pretoria 0001
Postal address: Private Bag X399, Pretoria 0001
Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165
Website: www.doh.gov.za
Department of Higher Education
and Training
Address: 123 Francis Baard Street, Pretoria 0001
Postal address: Private Bag X893, Pretoria 0001
Tel: +27 12 312 5555
Fax: +27 12 323 5618
Website: www.dhet.gov.za
Department of Home Affairs
Address: 909 Arcadia Street, Hatfield 0083
Postal address: Private Bag X114, Pretoria 0001
Tel: +27 12 432 6648 | Fax: +27 12 432 6675
Website: www.dha.gov.za
Department of Human Settlements
Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001
Postal address: Private Bag X644, Pretoria 0001
Tel: +27 12 421 1310 | Fax: +27 12 341 8513
Website: www.dhs.gov.za
Department of International Relations and
Cooperation
Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,
Pretoria 0001
Postal address: Private Bag X152, Pretoria 0001
Tel: +27 12 351 1000 | Fax: +27 12 329 1000
Website: www.dirco.gov.za
Department of Justice and Constitutional
Development
Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard
Streets, Pretoria 0001
Postal address: Private Bag X276, Pretoria 0001
Tel: +27 12 406 4669 | Fax: +27 12 406 4680
Website: www.doj.gov.za
Department of Labour
Address: 215 Laboria House, cnr Francis Baard and
Paul Kruger Streets, Pretoria 0001
Postal address: Private Bag X499, Pretoria 0001
Tel: +27 12 392 9620 | Fax: +27 12 320 1942
Website: www.labour.gov.za
Department of Military Veterans
Address: 328 Festival Street, Hatfield, Pretoria 0001
Postal address: Private Bag X943, Pretoria 0001
Tel: 080 232 3244 (SA only)
Website: www.dmv.gov.za
Department of Mineral Resources
Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007
Postal address: Private Bag X59, Pretoria 0001
Tel: +27 12 444 3000 | Fax: +27 86 624 5509
Website: www.dmr.gov.za
Department of Police (Civilian Secretariat for
Police Service)
Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001
Postal address: Private Bag X463, Pretoria 0001
Tel: +27 12 393 2800 | Fax: +27 12 393 2812
Website: www.saps.gov.za
123 WESTERN CAPE BUSINESS 2017
LISTINGS
Department of Public Enterprises
Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001
Postal address: Private Bag X15, Hatfield 0028
Tel: +27 12 431 1000
Fax: +27 12 431 1039
Website: www.dpe.gov.za
Department of Public Service and
Administration
Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria
Postal address: Private Bag X884, Pretoria 0001
Tel: +27 12 336 1700
Fax: +27 12 336 1809
Website: www.dpsa.gov.za
Department of Public Works
Address: 7th Floor, CGO Building, cnr Bosman and Madiba Streets,
Pretoria Central
Postal address: Private Bag X65, Pretoria 0001
Tel: +27 12 406 21978
Fax: +27 086 276 8757
Website: www.publicworks.gov.za
Department of Rural Development and
Land Reform
Address: 184 Old Building, cnr Jeff Masemola
and Paul Kruger Streets, Pretoria 0001
Postal address: Private Bag X833, Pretoria 0001
Tel: +27 12 312 9300
Fax: +27 12 323 3306
Website: www.ruraldevelopment.gov.za
Department of Science and Technology
Address: DST Building, Building No 53, CSIR South Gate Entrance,
Meiring Naude Road, Brummeria, Pretoria 0001
Postal address: Private Bag X727, Pretoria 0001
Tel: +27 12 843 6300
Fax: +27 12 349 1041/8
Website: www.dst.gov.za
Department of Small Business Development
Address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside,
Pretoria 0001
Postal address: Private Bag X84, Pretoria 0001
Tel: +27 12 394 1006
Fax: +27 12 394 1006
Website: www.dsbd.gov.za
Department of Social Development
Address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001
Postal address: Private Bag X904, Pretoria 0001
Tel: +27 12 312 7479 | Fax: +27 086 715 0829
Website: www.dsd.gov.za
Department of State Security
Address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001
Postal address: PO Box 1037, Menlyn 0077
Tel: +27 12 367 0700 | Fax: +27 12 367 0749
Website: www.ssa.gov.za
Department of Sport and Recreation
South Africa
Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street,
Pretoria 0001
Postal address: Private Bag X896, Pretoria 0001
Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583
Website: www.srsa.gov.za
Department of Tourism
Address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001
Postal address: Private Bag X424, Pretoria 0001
Tel: +27 12 444 6780 | Fax: +27 12 444 7027
Website: www.tourism.gov.za
Department of Trade and Industry
Address: The dti, 77 Meintjie Street, Block A, Floor 3,
Sunnyside, Pretoria 0001
Postal address: Private Bag X274, Pretoria 0001
Tel: +27 12 394 1568 | Fax: +27 12 394 0337
Website: www.thedti.gov.za
Department of Transport
Address: Forum Building, 159 Struben Street,
Room 4111, Pretoria 0001
Postal address: Private Bag X193, Pretoria 0001
Tel: +27 12 309 3131 | Fax: +27 12 328 3194
Website: www.transport.gov.za
Telecommunications and Postal Services
Address: Iparioli Office Park, 399 Jan Shoba Street,
Hatfield, Pretoria 0001
Postal address: Private Bag X860, Pretoria 0001
Tel: +27 12 427 8000
Fax: +27 12 427 8016
Website: www.dtps.gov.za
WESTERN CAPE BUSINESS 2017
124
LISTINGS
Department of Water and Sanitation
Address: Sedibang Building, 185 Frances Baard Street,
Pretoria 0001
Postal address: Private Bag X313, Pretoria 0001
Tel: +27 12 336 8733
Fax: +27 12 336 8850
Website: www.dwa.gov.za
Department of Women
Address: 36 Hamilton Street, Arcadia Pretoria 0001
Postal address: Private Bag X931, Pretoria 0001
Tel: +27 12 359 0000
Fax: 086 765 3365
Website: www.women.gov.za
National coat of arms
The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which
are described as the circle of foundation and the circle of ascendance.
Circle of foundation
Shield – The two Khoisan figures on the shield are taken from a Bushman rock
painting known as the Linton stone, and represent the common humanity and
heritage of South Africans. Depicted in an attitude of greeting, the figures
symbolise unity. Spear and knobkierie – Together, these objects symbolise
defence and authority, but the flat angle at which they lie symbolises peace.
Wheat – The ears of wheat, as emblems of fertility, represent germination,
growth and the development of potential, as well as nourishment
and agriculture. Elephant tusks – Elephants symbolise wisdom, strength,
power, authority, moderation and eternity, and the use of tusks is a tribute
to the world’s largest land mammal, Loxodonta Africana, which is found in
South Africa. Motto – Taken from the language of the now extinct /Xam
Bushmen, the motto translated means ‘people who are different come
together’ or ‘diverse people unite’.
Circle of ascendance
Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of
the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the
secretary bird represents growth and speed, and is a symbol of divine majesty and protection.
Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for
a country characterised by sunshine and warmth.
125 WESTERN CAPE BUSINESS 2017
LISTINGS
Western Cape
Provincial Government
An overview of the Western Cape’s provincial government departments.
Office of the Premier
Premier: Ms Helen Zille
Provincial Legislature Building, 1st Floor,
7 Wale Street, Cape Town 8000
Tel: 0860 142 142
Fax: +27 21 483 7216
Email: service@westerncape.gov.za
Web: www.westerncape.gov.za/dept/
department-premier
Department of Agriculture
MEC: Mr Alan Winde
Admin Building, Muldersvlei Road, Elsenburg 7607
Tel: +27 21 808 5111 | Fax: +27 21 808 7605
Web: www.elsenburg.com
Department of Community Safety
MEC: Mr Dan Plato
35 Wale Street, Cape Town 8000
Tel: +27 21 483 6949/8588 | Fax: +27 21 483 6591
Web: www.westerncape.gov.za/dept/
community-safety
Department of Cultural Affairs and Sport
MEC: Ms Anroux Marais (Minister)
Protea House Building, 7th Floor, Greenmarket Square,
Cape Town 8000
Tel: +27 21 483 9503 | Fax: +27 21 483 9504
Web: www.westerncape.gov.za/dept/cas
Department of Economic Development
and Tourism
MEC: Mr Alan Winde
11th Floor, NBS Waldorf Building, 80 St George’s Mall,
Cape Town 8001
Tel: +27 21 483 5065 | Fax: +27 21 483 7527
Web: www.westerncape.gov.za/dept/edat
Western Cape Education Department
MEC: Ms Debbie Schäfer
Grand Central Towers, Lower Parliament Street,
Cape Town 8001
Tel: +27 21 467 2000
Fax: +27 21 467 2996
Web: http://wced.school.za
Department of Environmental Affairs
and Development Planning
MEC: Mr Anton Bredell
8th Floor, 1 Dorp Street, Cape Town 8000
Tel: +27 21 483 4091
Fax: +27 21 483 3016
Web: www.westerncape.gov.za/dept/eadp
Department of Health
MEC: Dr Nomafrench Mbombo
21st Floor, 4 Dorp Street, Cape Town 8000
Tel: +27 21 483 3245/5417
Fax: +27 21 483 6169
Web: www.westerncape.gov.za/dept/health
Department of Human Settlements
MEC: Mr Bonginkosi Madikizela
27 Wale Street, Cape Town 8001
Tel: +27 21 483 9482
Fax: +27 21 483 2589
Web: www.westerncape.gov.za/dept/
human-settlements
Department of Local Government
MEC: Mr Anton Bredell
8th Floor, Waldorf Building, 80 St George’s Mall,
Cape Town 8001
Tel: +27 21 483 4049/4997 | Fax: +27 21 483 4493
Web: www.westerncape.gov.za/dept/local-government
WESTERN CAPE BUSINESS 2017
126
LISTINGS
Department of Social Development
MEC: Mr Albert Fritz
Union House, 14 Queen Victoria Street, Cape Town 8001
Tel: +27 21 483 5045 | Fax: +27 21 483 4783
Web: www.westerncape.gov.za/dept/
social-development
Provincial Treasury
MEC: Dr Ivan Meyer
3rd Floor, 7 Wale Street, Cape Town 8000
Tel: +27 21 483 4237 | Fax: +27 21 483 3855
Web: www.westerncape.gov.za/dept/treasury
Department of Transport and Public Works
MEC: Mr Donald Grant
8th Floor, 9 Dorp Street, Cape Town 8000
Tel: +27 21 483 4813
Fax: +27 21 483 5068
Web: www.westerncape.gov.za/dept/tpw
Brandvlei
Britstown
Garies
De Aar
Kliprand
R 27
Loeriesfontein
Carnarvon
N10
R 63
N12
Hanover
N7
R63
R63
Nieuwoudtville
Victoria West
R 63
Williston
N1
Loxton
Richmond
R 27
R27
Calvinia
R27 Vanrhynsdorp
R63
Vredendal
Northern Cape
R27
Fraserburg
Three
Sisters
R 63
Graaff-Reinet
Lambert's Bay
Clanwilliam
Beaufort West
Aberdeen
R27
Sutherland
Cederberg
R 61
N12
N9
St Helena Bay
Citrusdal
Prince
Velddrif
Leeu-Gamka
Paternoster
Albert N1
Road
Eastern Cape
Vredenburg Piketberg
R44
R79
Saldanha
R45
N7
Klipplaat
Western Cape
Saldanha Bay
Moorreesburg
LangebaanR27
R45
R 44Tulbagh
Laingsburg
Prince Albert
Willowmore
Riebeek West
Matjiesfontein
R 46
Darling
Ceres Touwsrivier
Dassen Island
Calitzdorp
R62
N1
Ladismith
R43
Malmesbury
De Rust
R44
Uniondale
R45 Wellington Worcester
Oudtshoorn
R 62
Paarl
R62
N12
Melkbosstrand
Rawsonville Montagu
Joubertina
N9
R60
Robben Island (World Heritage Site)
R43
Table Bay
Franschhoek Robertson Ashton R62
Barrydale
Kareedouw
Durbanville
George SedgefieldKnysna
N2
CAPE TOWN
Villiersdorp Swellendam
Stormsrivier
Stellenbosch
Riversdale
Somerset
Genadendal
Herolds
Plettenberg
Bay
Fish Hoek West Grabouw
Heidelberg
Bay
N2 Riviersonderend
N2 Mossel Bay
Cape St Francis
Gordon's Bay
Vleesbaai
Simon's Town
Caledon
False R44
Cape Bay Kleinmond Hermanus
Stillbaai
INDIAN OCEAN
Point
Bredasdorp Cape St Sebastian
R 43
Infanta
Walker Bay
Bay
0
100 km
Gansbaai
Arniston
Struisbaai
0 100 miles
Struisbaai
Quoin Point
Cape
Agulhas
WESTERN CAPE PROVINCE
Groen
ATLANTIC OCEAN
N
Motorway
Main Road
Railway
Sout
Tankwa
Fish
Breede
Sak
Riet
Touws
Buffels
Dwyka
Groot
Gourits
Gamka
Leeuw
Olifants
Groen
Sout
Sout
Kariega
Ongers
Kouga
Groot
Seekoei
Sundays
127 WESTERN CAPE BUSINESS 2017
LISTINGS
Western Cape Local Government
A guide to the metropolitan, district and local municipalities in the Western Cape.
CITY OF CAPE TOWN
METROPOLITAN MUNICIPALITY
Address: Civic Centre, Podium Block, 6th Floor, 12 Hertzog
Boulevard, Cape Town 8000
Tel: +27 21 400 1300 | Fax: +27 21 400 1313
Website: www.capetown.gov.za
CAPE WINELANDS DISTRICT MUNICIPALITY
Address: 46 Alexander Street, Stellenbosch 7599
Tel: +27 21 888 5100 | Fax: +27 23 342 8442
Website: www.capewinelands.gov.za
Breede Valley Local Municipality
Tel: +27 23 348 2600 | Fax: +27 21 883 8871
Website: www.bvm.gov.za
Drakenstein Local Municipality
Tel: +27 21 807 4500 | Fax: +27 21 807 4645
Website: www.drakenstein.gov.za
Langeberg Local Municipality
Tel: +27 23 615 8000 | Fax: +27 23 615 1563
Website: www.langeberg.gov.za
Stellenbosch Local Municipality
Tel: +27 21 808 8111 | Fax: +27 21 808 8003
Website: www.stellenbosch.gov.za
Witzenberg Local Municipality
Tel: +27 23 316 1854 | Fax: +27 23 316 1877
Website: www.witzenberg.gov.za
CENTRAL KAROO DISTRICT MUNICIPALITY
Address: 63 Donkin Street, Beaufort West 6970
Tel: +27 23 449 1000
Fax: +27 23 415 1253
Website: www.skdm.co.za
Beaufort West Local Municipality
Tel: +27 23 414 8100
Fax: +27 23 414 8105
Website: www.beaufortwestmun.co.za
Laingsburg Local Municipality
Tel: +27 23 551 1019 | Fax: +27 23 551 1019
Website: www.laingsburg.gov.za
Prince Albert Local Municipality
Tel: +27 23 541 1320 | Fax: +27 23 541 1321
Website: www.princealbertmunicipality.com
EDEN DISTRICT MUNICIPALITY
Address: 54 York Street, George 6530
Tel: +27 44 803 1300
Fax: +27 86 555 6303
Website: www.edendm.co.za
Bitou Local Municipality
Tel: +27 44 501 3000
Fax: +27 44 533 6198
Website: www.plett.gov.za
George Local Municipality
Tel: +27 44 801 9111 | Fax: +27 44 801 9105
Website: www.george.gov.za
Hessequa Local Municipality
Tel: +27 28 713 8000 | Fax: +27 86 713 3146
Website: www.hessequa.gov.za
Kannaland Local Municipality
Tel: +27 28 551 1023 | Fax: +27 86 551 1766
Website: www.kannaland.gov.za
Knysna Local Municipality
Tel: +27 44 302 6300 | Fax: +27 44 302 6333
Website: www.knysna.gov.za
Mossel Bay Local Municipality
Tel: +27 44 606 5000 | Fax: +27 44 606 5062
Website: www.mosselbay.gov.za
Oudtshoorn Local Municipality
Tel: +27 44 203 3000 | Fax: +27 44 203 3104
Website: www.oudtmun.gov.za
WESTERN CAPE BUSINESS 2017
128
LISTINGS
OVERBERG DISTRICT MUNICIPALITY
Address: 26 Long Street, Bredasdorp 7280
Tel: +27 28 425 1157
Fax: +27 28 425 1014
Website: www.odm.org.za
Cape Agulhas Local Municipality
Tel: +27 28 425 5500 | Fax: +27 28 425 1019
Website: www.capeagulhas.gov.za
Overstrand Local Municipality
Tel: +27 28 313 8000 |
Fax: +27 28 312 1894
Website: www.overstrand.gov.za
Swellendam Local Municipality
Tel: +27 28 514 8500
Fax: +27 28 514 2694
Website: www.swellenmun.co.za
Theewaterskloof Local Municipality
Tel: +27 28 214 3300
Fax: +27 28 214 1289
Website: www.twk.org.za
WEST COAST DISTRICT MUNICIPALITY
Address: 58 Long Street, Moorreesburg 7310
Tel: +27 22 433 8400 | Fax: +27 86 692 6113 (SA only)
Website: www.westcoastdm.co.za
Bergrivier Local Municipality
Tel: +27 22 913 6000 | Fax: +27 22 913 1406
Website: www.bergmun.org.za
Cederberg Local Municipality
Tel: +27 27 482 8000 | Fax: +27 27 482 1933
Website: www.cederbergmunicipality.co.za
Matzikama Local Municipality
Tel: +27 27 201 3300 | Fax: +27 27 213 3238
Website: www.matzikamamun.co.za
Saldanha Bay Local Municipality
Tel: +27 22 701 7000 | Fax: +27 22 715 1518
Website: www.sbm.gov.za
Swartland Local Municipality
Tel: +27 22 487 9400 | Fax: +27 22 487 9440
Website: www.swartland.org.za
Municipalities in the Western Cape
WCDMA01
Northern Cape
Metropolitan/District Municipality
Boundary
Local Municipality Boundary
District Municipality
Local Municipality
Eden
Oudtshoorn
Matzikama
WCDMA05
Cederberg
Beaufort West
West Coast
Central Karoo
Bergrivier
WCDMA02
Saldanha
Bay
Swartland
City of
Cape Town
Metropolitan
Municipality
ATLANTIC OCEAN
Witzenberg
Cape Winelands
Breede Valley
Drakenstein
Langeberg
Stellenbosch
Theewaterskloof
Swellendam
Overberg
Cape Agulhas
WCDMA03
Overstrand
Laingsburg
Kannaland
Hessequa
Prince Albert
Oudtshoorn
WCDMA04
Eden
George Knysna Bitou
Mossel Bay
INDIAN OCEAN
Eastern Cape
129 WESTERN CAPE BUSINESS 2017
INDEX
INDEX
Accelerate Cape Town.......................................................................................................................................................................... 38 - 41
Air Products........................................................................................................................................................................................................91, IBC
Atterbury................................................................................................................................................................................................................34
Beyerskloof........................................................................................................................................................................................................... 78
Breede-Gouritz Catchment Management Agency...................................................................................................................... 96
Cape Chamber of Commerce & Industry....................................................................................................................................... 2, 22, 58
Cape Town International Convention Centre (CTICC) ........................................................................................................................ 32
College of Cape Town.................................................................................................................................................................................. 5, 64
Formatube.............................................................................................................................................................................................................. 102
Invest Cape Town............................................................................................................................................................................................... 36
Masisizane Fund................................................................................................................................................................................................ 26
Nedbank.............................................................................................................................................................................................................. 45 - 49
Old Mutual.......................................................................................................................................................................................................... 50 - 55
Petroleum Agency South Africa.................................................................................................................................................................. 89
Pioneer Fishing...................................................................................................................................................................................................... 84
Seascape ............................................................................................................................................................................................................... 102
Selfmed ............................................................................................................................................................................................................ 66, OBC
South Africa Table Grape Industry (SATI)....................................................................................................................................... 80 - 82
Standard Bank Western Cape...............................................................................................................................................................112 - 116
Unemployment Insurance Fund (UIF) ........................................................................................................................................................ 7
Wesgro...................................................................................................................................................................................................................18 - 21
West Coast District Municipality.................................................................................................................................................................. IFC
Western Cape Business Opportunities Forum (WECBOF)......................................................................................................... 24
Western Cape Department of Economic Development and Tourism................................................................................10, 70
WESTERN CAPE BUSINESS 2017
130
Service that
delivers the
Difference
Air Products South Africa (Pty) Limited manufactures, supplies and distributes a diverse
portfolio of atmospheric gases, specialty gases, performance materials, equipment and services
to the Southern African region.
Air Products touches the lives of consumers in positive ways every day, and serves customers
across a wide range of industries from food and beverage, mining and petrochemicals, primary
metal and steel manufacturers, chemical applications, welding and cutting applications to
laboratory applications.
Founded in 1969, Air Products South Africa has built a reputation for its innovative culture,
operational excellence and commitment to safety, quality and the environment. In addition the
company aims to continue its growth and market leadership position in the Southern African
region.
www.airproducts.co.za
Breakup
with your
medical aid.
PLEASE STAY.
We’ll give you more points,
movie tickets and a gym
subscription.
SORRY,
I just want medical aid.
I’m changing to Selfmed.
SMS “business”
to 45738 today
and we’ll
phone you.
www.selfmed.co.za
Affordable, reliable,
medical aid, since 1965
/ selfmed medical scheme