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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.

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WESTERN CAPE<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN THE WESTERN CAPE PROVINCE<br />

<strong>2017</strong> EDITION<br />

JOIN US ONLINE<br />

WWW.WESTERNCAPEBUSINESS.CO.ZA


New opportunities for<br />

investors in the West Coast<br />

New opportunities are emerging in specific sectors of the West Coast district. With the N7<br />

being upgraded, the time it takes to travel from Malmesbury to <strong>Cape</strong> Town for instance<br />

is less than from Paarl, Somerset West or Stellenbosch. <strong>Business</strong>es can serve the <strong>Cape</strong><br />

Town market while enjoying lower operating costs, an excellent work ethic, lower crime and<br />

reduced risk with excellent local government support. Developers are providing new industrial,<br />

commercial and residential property.<br />

Protein, dairy and other food producers are moving closer to their markets to reduce transportation<br />

costs. They remain outside the metro boundaries, to gain cost advantages. Increasing<br />

numbers of logistics firms recognise the strategic location. Vehicle and equipment suppliers are<br />

growing as services sector.<br />

The number of mines are increasing in Matzikama and a breakthrough with abalone production<br />

holds huge promise for supplying a lucrative market. In Cederberg the dam wall is being<br />

raised, meaning the bottleneck to agricultural growth is reduced. The Saldanha Industrial<br />

Development Zone, which is located at the deep-water port, includes a unique package of<br />

government incentives.<br />

The complete region offers a large variety of world-class tourism attractions, leisure activities<br />

and events. These include bouldering, hiking, kite surfing, surfing, skydiving, paragliding,<br />

cycling, canoeing, birding, music festivals, arts, culture, heritage and of course the unrivalled<br />

West Coast flowers. Country life at its best – topped off with local brews and great wine. A great<br />

place to live, work and play.<br />

Swartland Municipality<br />

Lower cost structures, a productive workforce and less risk than the <strong>Cape</strong> Town<br />

metro provide businessess here with a competitive advantage in their markets. Add<br />

to this the benefits of a sophisticated city that is still close enough to leverage when<br />

needed, while employees get to enjoy the best of both country life and the city.<br />

Similar to growth patterns of towns on the outskirts of cities worldwide, both businesses<br />

and citizens will increasingly view the Swartland as a good place to locate.<br />

Investment growth is expected from sectors such as protein, dairy, agroprocessing,<br />

transport, logistics, retail, services and construction sectors.<br />

www.swartland.org.za<br />

Bergrivier Municipality<br />

Situated north of Saldanha Bay, the Bergriver region is particularly suited to<br />

agriculture. Livestock, fruit, vegetables and flowers are farmed in the area and there<br />

are opportunities in kelp farming and processing.<br />

The large cement factory and smaller salt-reclamation works are indicators of<br />

business development opportunities related to mining.<br />

www.bergmun.org.za


MATZIKAMA<br />

Vredendal<br />

BERGRIVIER<br />

Vredenberg<br />

Piketberg<br />

SALDANHA<br />

BAY<br />

Moorreesburg<br />

SWARTLAND<br />

Clanwilliam<br />

CEDERBERG<br />

Langeberg<br />

Cederberg Municipality<br />

Blessed by nature, rich in<br />

heritage and warm-hearted<br />

people, this a great place<br />

for tourism all year round.<br />

Cederberg boasts a beautiful and varying landscape<br />

that includes mountains, valleys and coastline with a<br />

multitude of attractions and activities.<br />

The area is rich in flowers and fynbos, including<br />

Rooibos, which makes this the heart of the international<br />

Rooibos tea industry. The Clanwilliam dam<br />

wall is being raised, which will soon provide more<br />

water. Unutilised fertile lands can then be irrigated<br />

to produce high yields to boost agricultural output.<br />

www.cederbergmunicipality.co.za<br />

Matzikama Municipality<br />

Approximately 240km north of<br />

<strong>Cape</strong> Town, the Matzikama region<br />

has abundant water and fertile soil<br />

and therefore a thriving vegetable,<br />

fruit and wine farming economy.<br />

Investors visiting the region will<br />

find opportunities in aquaculture<br />

(especially abalone), fishing, mining, manufacturing,<br />

agriculture and property development.<br />

www.matzikamamun.co.za<br />

Saldanha Bay Municipality<br />

Saldanha Bay Municipality is a local municipality located on the West Coast of<br />

South Africa, in the <strong>Western</strong> <strong>Cape</strong> Province. It is approximately 140km north of<br />

<strong>Cape</strong> Town and forms part of the West Coast District Municipality. The Municipality<br />

is bordered on the west by the Atlantic Ocean, in the north by the Bergivier<br />

Municipality and in the east by the Swartland Municipality.<br />

Saldanha Bay Municipality covers an area of 2 015km 2 and has 238km of coastline.<br />

The head office is located in Vredenburg with satellite offices in Hopefield, St Helena Bay, Paternoster,<br />

Saldanha and Langebaan.<br />

Saldanha Bay has the largest natural port in Africa and the area is earmarked for regional development<br />

of the <strong>Western</strong> <strong>Cape</strong> Province.<br />

www.saldanhabay.co.za<br />

If you have your eye on growth,<br />

you should invest on the West Coast!<br />

Find out more at www.westcoastdm.co.za


Besides being the voice of business in the region, when you belong to the<br />

Chamber, you become part of an esteemed network that is geared to<br />

promote your success.<br />

As a member, you enjoy a substantial number of benefits, as well as<br />

receiving expert support for a wide range of issues. Our services include<br />

business advice, extensive networking opportunities, seminars & events,<br />

training at all levels, international trade support and more.<br />

Join now - it’s Where Opportunity Meets.


Where Opportunity Meets <br />

4th floor, 33 Martin Hammerschlag Way, Foreshore, <strong>Cape</strong> Town<br />

Tel: +27 21 402 4300 | Fax: +27 21 402 4302<br />

info@capechamber.co.za | capechamber.co.za<br />

Facebook: <strong>Cape</strong>ChamberOfCommerce | Twitter: @<strong>Cape</strong>_Chamber


CONTENTS<br />

CONTENTS<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> <strong>2017</strong> Edition<br />

Introduction<br />

Foreword 9<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is a unique guide to business,<br />

investment and tourism in the <strong>Western</strong> <strong>Cape</strong>.<br />

Growth strategy is paying off 10<br />

Alan Winde, <strong>Western</strong> <strong>Cape</strong> Provincial Minister of Economic<br />

Opportunities, explains how Project Khulisa will impact<br />

the province.<br />

Special features<br />

Regional overview 12<br />

Tourism and technology are boosting the <strong>Western</strong> <strong>Cape</strong><br />

economy and Brexit offers new opportunities for investors.<br />

Down-town boom town, <strong>Cape</strong> Town 28<br />

A number of high-visibility construction projects are under<br />

development in the <strong>Cape</strong> Town CBD and surrounds.<br />

South African economy at a glance 42<br />

Insight into the performance of the South African economy<br />

is provided through these graphical representations of key<br />

statistics.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

6


CONTENTS<br />

Special Economic Zones 56<br />

Dedicated development hubs on the West Coast are tapping<br />

into the potential of two of the fastest-growing economic<br />

sectors in Southern Africa – oil and gas and manufacturing for<br />

the renewable energy sector.<br />

Skills development 60<br />

A number of investors are driving skills development in the<br />

province.<br />

Economic sectors<br />

Agriculture 72<br />

Processing plants boost rural employment.<br />

Wine and grapes 76<br />

China is importing the fruits of the <strong>Western</strong> <strong>Cape</strong>’s vineyards.<br />

Fishing 83<br />

More fish, fewer chips following the sale of Lamberts<br />

Bay Foods.<br />

Mining 86<br />

The sands of the West Coast are giving up their riches.<br />

Oil and gas 88<br />

The <strong>Western</strong> <strong>Cape</strong> Government is hoping to exploit<br />

opportunities related to the gas sector.<br />

Energy 92<br />

Manufacturing in the renewable energy sector is<br />

taking off in Atlantis.<br />

Water 94<br />

Farms and factories are becoming water wise.<br />

Manufacturing 98<br />

Diesel locomotive engines are powering up in Montague<br />

Gardens.<br />

Construction and property development 104<br />

Construction is on the rise in the <strong>Western</strong> <strong>Cape</strong>.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

8


UIF SAVING JOBS<br />

THROUGH SOCIALLY<br />

RESPONSIBLE INVESTMENTS<br />

The National Development Plan is a blueprint serving as<br />

a guideline to government departments and state entities<br />

on how they can play a role in government wide efforts<br />

of creating decent work, reducing unemployment and<br />

poverty. The Unemployment Insurance Fund is among<br />

the leading state entities in the implementation of the<br />

provisions of the NDP to address the slow economic<br />

growth, unemployment and poverty in South Africa.<br />

The UIF social investment mandate ensures that,<br />

additional to earning good financial returns, investments<br />

must be supportive of long term economic, social and<br />

adhere to sustainable environmental outcomes. The<br />

investments must also yield a good social return for the<br />

country. These investments have sustained 6 860 jobs of<br />

which 3 024 are permanent, 3 836 are temporary/seasonal<br />

and 195 are new jobs created during the financial year<br />

ending in March 2016.<br />

UIF INVESTMENTS IN RENEWABLE ENERGY<br />

The UIF investments are contributing to the energy<br />

requirements of South Africa and the investments in the<br />

renewable energy sector provides a total capacity of 192<br />

megawatt of electricity of which 117 megawatt is solar<br />

energy and 27 megawatt is wind generated electricity.<br />

The De Aar project is a shining example of the UIF energy<br />

investments and this project produces 90 megawatt of<br />

electricity and was completed in April 2016. The solar plant<br />

in the area generates enough electricity to power 15 000<br />

houses. Another mainstay project is the Phakwe Group ran<br />

projects undertaken in the Northern and Eastern <strong>Cape</strong>.<br />

INVESTMENT IN FOOD SECURITY<br />

The UIF investments in this regard are undertaken under<br />

the banner of the UIF Agri-Fund in partnership with<br />

Futuregrowth and Day Breaker Poultry Project. The UIF<br />

Agri-Fund has invested in 4 farms situated in Mable Hall<br />

in Limpopo. One of the farms is a cash crop farm spanning<br />

450 hectares. The farm in the last financial year produced<br />

235 hectares of white maize, and cotton was planted in an<br />

area covering 28 hectares.<br />

A further three farms are located in the Saron area in the<br />

<strong>Western</strong> <strong>Cape</strong>. In this project a total of 178 hectares has<br />

been used to plant grapes, 37 hectares has been used to<br />

pant citrus fruit. Furthermore, there is potential to plant an<br />

additional 92 hectares of grapes. The Daybreaker Poultry<br />

project operates in Gauteng, Limpopo and Mpumalanga<br />

and the combined projects have facilities to grow 1.6<br />

million broiler chickens.<br />

INVESTMENTS IN HEALTH CARE FACILITIES<br />

The UIF concluded two investments in this regard that<br />

include a BEE hospital manager, Busamed to build a<br />

private hospital in Modderfontein and Fund Manager<br />

Razorite Heatlhcare that focus on the provision of<br />

affordable heathcare facilities that include rehabilitation<br />

and sub-acute centres.<br />

The Modderfontein hospital is a 220 hospital bed with subacute<br />

facilities. This hospital is under construction. While<br />

the RH Fund Manager has concluded seven investments<br />

that include:<br />

• Busamed with four hospital facilities<br />

• HealthMed with two facilities<br />

INVESTMENTS IN EDUCATION<br />

UIF has invested in three investments that play a role<br />

to unlock access to education. The investments were<br />

concluded with Eduloan – an organisation that provides<br />

financial support to tertiary students and South Point and<br />

Educor organisations that provide student accommodation.<br />

By March 2016, Eduloan had disbursed about R446 986.64<br />

benefiting 34 047 students, whiles South Point provided<br />

about 10 000 student with accommodation.<br />

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT<br />

The UIF has concluded two investments with the aim of<br />

supporting small and medium enterprises. In this regard<br />

the PIC on behalf of UIF has concluded investment deals<br />

with Musa Capital and TOSACO.<br />

The investments will support more than 250 SMMEs across<br />

various sectors inclusive of agriculture and affordable<br />

housing. Musa Capital for example has a supply chain of<br />

over 250 SMME’s that have facilitated the creation of 2 500<br />

jobs.<br />

TOSACO investments is planning to advance capital to<br />

young black entrepreneurs who aspire to own and manage<br />

Total Filling stations around the country.<br />

For more information:<br />

Call: 0800 843 843 or<br />

visit: www.labour.gov.za


Brandvlei<br />

Britstown<br />

Garies<br />

De Aar<br />

Kliprand<br />

R 27<br />

Loeriesfontein<br />

Carnarvon<br />

N10<br />

R 63<br />

N12<br />

Hanover<br />

N7<br />

R63<br />

R63<br />

Nieuwoudtville<br />

Victoria West<br />

R 63 Williston<br />

N1<br />

Loxton<br />

Richmond<br />

R 27<br />

R27<br />

Calvinia<br />

R27 Vanrhynsdorp<br />

R63<br />

Vredendal<br />

R27<br />

Fraserburg<br />

Three<br />

Sisters<br />

R 63<br />

Graaff-Reinet<br />

Lambert's Bay<br />

Clanwilliam<br />

Beaufort West<br />

Aberdeen<br />

R27<br />

Sutherland<br />

Cederberg<br />

R 61<br />

N12<br />

N9<br />

St Helena Bay<br />

Citrusdal<br />

Prince<br />

Velddrif<br />

Leeu-Gamka<br />

Paternoster<br />

Albert N1<br />

Vredenburg Piketberg<br />

Road<br />

R44<br />

R79<br />

Saldanha<br />

R45<br />

N7<br />

Klipplaat<br />

Saldanha Bay<br />

Moorreesburg<br />

LangebaanR27<br />

R45<br />

R 44Tulbagh<br />

Laingsburg<br />

Prince Albert<br />

Willowmore<br />

Riebeek West<br />

Matjiesfontein<br />

R 46<br />

Darling<br />

Ceres Touwsrivier<br />

Dassen Island<br />

Calitzdorp<br />

R62<br />

N1<br />

Ladismith<br />

R43<br />

Malmesbury<br />

De Rust<br />

R44<br />

Uniondale<br />

R45<br />

Oudtshoorn<br />

R 62<br />

Paarl<br />

R62<br />

N12<br />

Melkbosstrand<br />

Rawsonville Montagu<br />

Joubertina<br />

N9<br />

R60<br />

Robben Island (World Heritage Site)<br />

R43<br />

Table Bay<br />

Franschhoek Robertson Ashton R62 Barrydale<br />

Kareedouw<br />

Durbanville<br />

George SedgefieldKnysna<br />

N2<br />

Villiersdorp Swellendam<br />

Stormsrivier<br />

Stellenbosch<br />

Riversdale<br />

Somerset<br />

Genadendal<br />

Herolds<br />

Plettenberg<br />

Fish Hoek West Grabouw<br />

Heidelberg<br />

Bay<br />

Bay<br />

N2 Riviersonderend<br />

N2 Mossel Bay<br />

<strong>Cape</strong> St Francis<br />

Gordon's Bay<br />

Vleesbaai<br />

Simon's Town<br />

Caledon<br />

Motorway<br />

False R44<br />

<strong>Cape</strong> Bay Kleinmond Hermanus<br />

Stillbaai<br />

Main Road<br />

Point<br />

Bredasdorp <strong>Cape</strong> St Sebastian<br />

R 43<br />

Infanta<br />

Railway<br />

Walker Bay<br />

Bay<br />

0<br />

100 km<br />

Gansbaai<br />

Arniston<br />

Struisbaai<br />

0 100 miles<br />

Struisbaai<br />

Quoin Point<br />

<strong>Cape</strong><br />

Agulhas<br />

Groen<br />

CONTENTS<br />

Tourism 106<br />

New flights are bringing greater numbers of tourists to the<br />

<strong>Western</strong> <strong>Cape</strong>.<br />

Banking and financial services 110<br />

The JSE has opened an Exchange Hub in <strong>Cape</strong> Town.<br />

Information and communications technology 118<br />

<strong>Cape</strong> Town is attracting ICT investment.<br />

<strong>Business</strong> process outsourcing 119<br />

Offshoring – foreign BPO contracts – is growing.<br />

Government<br />

South African National Government 120<br />

An overview of South Africa’s national<br />

government departments.<br />

<strong>Western</strong> <strong>Cape</strong> Provincial Government 124<br />

An overview of the <strong>Western</strong> <strong>Cape</strong>s Provincial<br />

Government departments.<br />

<strong>Western</strong> <strong>Cape</strong> Local Government 126<br />

An overview of the <strong>Western</strong> <strong>Cape</strong> municipalities.<br />

Reference<br />

Sector contents 68<br />

Index 128<br />

Maps<br />

<strong>Western</strong> <strong>Cape</strong> locator map. 17<br />

<strong>Western</strong> <strong>Cape</strong> provincial map. 125<br />

<strong>Western</strong> <strong>Cape</strong> municipal map. 127<br />

WESTERN CAPE PROVINCE<br />

ATLANTIC OCEAN<br />

N<br />

CAPE TOWN<br />

Sout<br />

Wellington Worcester<br />

Tankwa<br />

Fish<br />

Breede<br />

Sak<br />

Northern <strong>Cape</strong><br />

Riet<br />

<strong>Western</strong> <strong>Cape</strong><br />

Touws<br />

Bu fels<br />

Dwyka<br />

Groot<br />

Gourits<br />

Gamka<br />

Leeuw<br />

Olifants<br />

Groen<br />

Sout<br />

Sout<br />

Kariega<br />

Ongers<br />

Eastern <strong>Cape</strong><br />

Kouga<br />

Groot<br />

INDIAN OCEAN<br />

Seekoei<br />

Sundays<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 10


CREDITS<br />

Publisher: Chris Whales<br />

Publishing director:<br />

Robert Arendse<br />

Editor: Simon Lewis<br />

Writing: John Young and<br />

Karen Kühlcke<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Colin Carter<br />

Production: Lizel Olivier<br />

Ad sales: Sam Oliver, Gabriel<br />

Venter, Jeremy Petersen, Nigel<br />

Williams and Sydwell Adonis<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution and circulation:<br />

Edward MacDonald<br />

Printing: FA Print<br />

Cover photo courtesy<br />

of Rodger Bosch<br />

www.rodgerbosch.co.za<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong><br />

A unique guide to business and investment<br />

in the <strong>Western</strong> <strong>Cape</strong>.<br />

The <strong>2017</strong> <strong>edition</strong> of <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is the 10th issue<br />

of this highly successful publication that, since its launch<br />

in 2005, has established itself as the premier business and<br />

investment guide to the <strong>Western</strong> <strong>Cape</strong> province.<br />

The <strong>Western</strong> <strong>Cape</strong> has numerous promising investment and business<br />

opportunities and this issue includes contributions from Alan Winde<br />

(Minister of Economic Opportunities for the <strong>Western</strong> <strong>Cape</strong> Government),<br />

interviews with Ryan Ravens (CEO of Accelerate <strong>Cape</strong> Town), Arifa Parkar<br />

(<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> Opportunities Forum CEO), Wesgro CEO Tim<br />

Harris and Lance Greyling (Invest <strong>Cape</strong> Town) as well as contributions from<br />

various business leaders. In addition, you will also find comprehensive<br />

features on all the key sectors in the <strong>Western</strong> <strong>Cape</strong>.<br />

To complement the extensive local, national and international distribution<br />

of the print <strong>edition</strong> of the magazine, the full content can also be<br />

viewed online at www.westerncapebusiness.co.za. Updated information<br />

on the <strong>Western</strong> <strong>Cape</strong> is also available through our monthly e-newsletter,<br />

which you can subscribe to online at www.gan.co.za, in addition to our<br />

complementary business-to-business titles that cover all nine provinces<br />

as well as our flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

Email: chris@gan.co.za<br />

CREDITS<br />

DISTRIBUTION<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions, through trade and investment<br />

agencies; at top national and international events; through<br />

the offices of foreign representatives in South Africa; as well as<br />

nationally and regionally via chambers of commerce, tourism<br />

offices, airport lounges, provincial government departments,<br />

municipalities and companies.<br />

COPYRIGHT | <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />

the publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Pictures supplied by Anglo American, flickr.com,<br />

Transnet National Ports Authority, Sasol, World Bank Images, City of <strong>Cape</strong><br />

Town, Wikimedia Commons, Pixabay, Accelerate, Northlink College, IRC<br />

Wash, Aquacor, South African Tourism, Wikimedia, gewainer@flickr.com,<br />

mycapetown.co.za, Railways Africa, pascalparentphotos, Pinterest, and FWJK.<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN 1816-370X<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

11<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


MESSAGE<br />

Growth strategy is paying off<br />

Alan Winde, <strong>Western</strong> <strong>Cape</strong> Provincial Minister of Economic Opportunities,<br />

explains how Project Khulisa will impact the province.<br />

Alan Winde, <strong>Western</strong> <strong>Cape</strong><br />

Provincial Minister of<br />

Economic Opportunities<br />

In the <strong>Western</strong> <strong>Cape</strong>, we have<br />

taken a focused approach to<br />

job creation and growth.<br />

To achieve this objective<br />

we have put in place our Project<br />

Khulisa growth strategy, which<br />

focuses on a set of high-potential<br />

sectors, namely tourism, agriprocessing<br />

and oil and gas.<br />

In each of these areas, we worked with the private sector to develop<br />

tailored action plans to drive growth.<br />

I am happy to report that we are making significant progress.<br />

Tourism employs 204 000 people, and under Project Khulisa we<br />

have set ourselves the goal of adding up to a further 100 000 jobs<br />

to the sector. Through Project Khulisa we are focusing on driving an<br />

increase in leisure and business tourism.<br />

The <strong>Cape</strong> Town International Convention Centre (CTICC) continues<br />

to deliver a significant contribution to economic growth. That is why<br />

we are doubling the CTICC’s capacity. We’ve also seen a R1-billion<br />

private investment into the Century City Conference Centre and Hotel.<br />

The Aquarium added a conference facility when it upgraded and<br />

many hotels are doing the same. A large number of hotels are being<br />

developed, partly in response to increased conference numbers, but<br />

also in response to general good growth figures in this space.<br />

We know that conference delegates have a higher spend than<br />

leisure tourists, and that they often return for a holiday with their<br />

families. From here, they could purchase property in the region, or<br />

decide to open a business here.<br />

It is all interlinked. On the leisure front, we are driving an events<br />

strategy to pull tourists to our smaller gem towns. From our investment<br />

in seeding events, we have helped drive 150 000 tourists to travel in the<br />

region, generating an economic impact of R240-million. Very shortly<br />

we’ll be embarking on a project to define the competitive identity of<br />

our region, creating a compelling story about who we are, what we<br />

have to offer, and why we should be at the top of travellers’ bucket lists.<br />

We’ll take the outcome of this process to market in <strong>2017</strong>.<br />

We are continuing with our plans to position the province as the<br />

trail capital of Africa. This year we launched the first part of our cycle<br />

track, which will eventually stretch from Plettenberg Bay to <strong>Cape</strong> Town.<br />

The first 5km of the cycle route consists of bespoke-designed single<br />

track on a section of land between Knysna and Sedgefield.<br />

This track will become the backbone of a trail system driving<br />

business to farms and communities all along our southern coastline.<br />

We will also focus on culture and heritage tourism, food and wine<br />

tourism, and our growing events economy.<br />

In agri-processing, we are seeking to grow the size of the sector<br />

and add up to 100 000 jobs.<br />

Our plan to boost the sector includes efforts to increase halal<br />

and wine exports, and to create an enabling environment for all<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

12


MESSAGE<br />

agri-processed products to flourish. We have made headway, together<br />

with our partners, in our drive to increase water storage in the Brandvlei<br />

Dam, and we have commissioned the equipment we require for our<br />

residue-testing facility. All of the initiatives under Project Khulisa are<br />

designed to open international markets for our produce, and I am<br />

pleased with the progress we have achieved thus far.<br />

Oil and gas also presents a significant opportunity to grow our<br />

economy. It is our goal to add up to a further 60 000 jobs to this sector,<br />

and increase its economic contribution to R3-billion.<br />

One of our flagship initiatives in driving growth in the oil and gas<br />

sector is the Saldanha Bay Industrial Development Zone along the West<br />

Coast, which is being managed<br />

by the Saldanha Bay Industrial<br />

Development Zone Licencing<br />

Company.<br />

We’re seeing a good flow of<br />

vessels along our coast and in<br />

the pipeline is a major project<br />

to recertify vessels here. The<br />

lease between the Saldanha<br />

Bay Industrial Development<br />

Zone Licencing Company and<br />

the Transnet National Ports<br />

Authority (TNPA) is in place, and<br />

we expect to start construction<br />

next year. TNPA will also be asking<br />

for a formal proposal from<br />

an international consortium<br />

to develop the 500m terminal<br />

at Mossgas.<br />

There’s been an overwhelmingly<br />

positive investor response.<br />

At the time of going to print, the<br />

Licencing Company already has<br />

Memorandums of Understanding<br />

non-disclosure agreements and<br />

rights of first refusal in place<br />

with 36 companies, and building<br />

plans have been submitted for<br />

three firms.<br />

They’re getting ready to start<br />

construction as soon as the<br />

necessary approvals have been<br />

obtained.<br />

Along with a focus on these<br />

priority sectors, we have identified<br />

strategic economic enablers.<br />

These include securing an<br />

affordable and reliable energy<br />

supply and reducing red tape.<br />

Through a focussed approach,<br />

we are moving closer<br />

towards reaching our goals,<br />

and I am confident through our<br />

partnerships, we will continue<br />

to grow our economy, Better<br />

Together.<br />

13<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


A REGIONAL OVERVIEW OF THE<br />

WESTERN CAPE<br />

PROVINCE


Tourism and technology are boosting the<br />

<strong>Western</strong> <strong>Cape</strong> economy and Brexit offers<br />

new opportunities for exporters.<br />

The <strong>Western</strong> <strong>Cape</strong> straddles the west and<br />

south-eastern coastlines of South Africa.<br />

The province’s southernmost point is<br />

Agulhas, which is also the southern tip of<br />

Africa where the Atlantic and Indian oceans meet.<br />

Trade with Europe (including Britain) has long<br />

been the mainstay of the <strong>Western</strong> <strong>Cape</strong>’s export<br />

income. The top three destinations in 2013 (the<br />

Netherlands, the UK and Germany) combined to<br />

import R17.2-billion worth of <strong>Western</strong> <strong>Cape</strong> goods.<br />

The European Union (EU) signed an Economic<br />

Partnership Agreement with the Southern African<br />

Development Community (SADC) in June 2016<br />

that included some very good news for the<br />

<strong>Western</strong> <strong>Cape</strong>. For example, dairy products would<br />

attract no duty, a range of geographic indicators<br />

(including Karoo lamb and rooibos) were accepted,


SPECIAL FEATURE<br />

and the amount of wine that could be exported was<br />

increased from 50-million litres to 100-million litres.<br />

Thirteen days later Britain voted to leave the EU.<br />

This means that at least two new treaties have to be<br />

signed: a SADC-EU treaty that excludes the UK from<br />

the provisions and a new SADC-UK treaty. This could<br />

present new opportunities for all parties but it does<br />

mean that the landscape will be somewhat different.<br />

The <strong>Western</strong> <strong>Cape</strong> stretches to the north along the<br />

Atlantic Ocean about 400km from the provincial capital,<br />

<strong>Cape</strong> Town. The Port of Saldanha Bay lies along this<br />

coast; it is intended to become a hub for the maritime<br />

repair and oil and gas industries. The eastern boundary<br />

is defined by the Bloukrans River, which means<br />

that tourism hotspot Plettenberg Bay falls within the<br />

<strong>Western</strong> <strong>Cape</strong>. Beaufort West on the N1 highway is<br />

the biggest town in the north-eastern section of the<br />

province.<br />

The province is well served with infrastructure<br />

such as the N1 and N2 highways, and the N7 which<br />

services the West Coast. Three ports at Saldanha Bay,<br />

<strong>Cape</strong> Town and Mossel Bay serve different markets.<br />

The Port of <strong>Cape</strong> Town has recently opened a Cruise<br />

Terminal and a large new fuel storage terminal is being<br />

constructed in the port.<br />

<strong>Cape</strong> Town International Airport and George<br />

Airport see to air travel needs. <strong>Cape</strong> Town also hosts<br />

an oil refinery (Chevref) and a gas-to-liquids refinery<br />

at Mossel Bay, which is run by the national oil<br />

company, PetroSA.<br />

Koeberg nuclear power station is South Africa’s<br />

only such power station and there are a further three<br />

open-cycle gas turbines and a pumped-water-storage<br />

scheme. Wind and solar power are being installed<br />

rapidly across the province as South Africa tries to end<br />

its dependency on fossil fuels.<br />

The population of the <strong>Western</strong> <strong>Cape</strong> is also well<br />

served by educational institutions including the<br />

University of <strong>Cape</strong> Town, the University of Stellenbosch,<br />

the University of the <strong>Western</strong> <strong>Cape</strong> and the <strong>Cape</strong><br />

Peninsula University of Technology. <strong>Cape</strong> Town has<br />

three Technical and Vocational Education and Training<br />

(TVET) colleges and there are a further three for the<br />

Boland, the Southern <strong>Cape</strong> and the West Coast, all<br />

with multiple campuses.<br />

The <strong>Cape</strong> Town International Convention Centre<br />

is the province’s leading facility in the events and<br />

conference field, and it is undergoing an extension<br />

that will lead to its doubling in size. The extension<br />

is due to open in <strong>2017</strong>. Many hotels have conference<br />

facilities and a large number of new hotels are being<br />

built, particularly in and around <strong>Cape</strong> Town.<br />

The national parliament is located in <strong>Cape</strong> Town<br />

and there is a separate provincial legislature. The<br />

<strong>Western</strong> <strong>Cape</strong> is unique among South Africa’s nine<br />

provinces in that the Democratic Alliance (DA) runs the<br />

province. The African National Congress is the majority<br />

party in the national parliament and it controls the<br />

other eight provinces.<br />

The DA also governs most of the provincial municipalities<br />

in the province, including the metropolitan<br />

municipality of <strong>Cape</strong> Town. There are five district<br />

municipalities, which are further divided into 24<br />

local municipalities.<br />

In 2015, the population of the <strong>Western</strong> <strong>Cape</strong> was<br />

estimated to be 6.2-million. The official languages of<br />

the province are Afrikaans, English and Xhosa.<br />

The province has diverse climatic conditions and<br />

geographical features. The north-west coastal strip<br />

is dry but the valleys inland from the coast support<br />

intensive citrus and grape cultivation. The Garden<br />

Route regions of the Southern <strong>Cape</strong> are heavily<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 16


SPECIAL FEATURE<br />

forested. In between there are the rugged mountains<br />

of the Cederberg, the wheat and barley fields<br />

and winelands of the Boland and the Overberg, the<br />

fruit-producing valleys of the Klein Karoo and the dry<br />

plains of the Great Karoo. The province and the region<br />

are most commonly associated with Table Mountain,<br />

which watches over the city of <strong>Cape</strong> Town and forms<br />

a national park of its own.<br />

The <strong>Western</strong> <strong>Cape</strong> has the natural advantage of<br />

access to the warm Agulhas current along the south<br />

coast and the cold Benguela current up the west<br />

coast, offering opportunities for a wide variety of<br />

aquaculture and mariculture products to be farmed<br />

along the province’s coastline.<br />

Economy<br />

Finance, business services and real estate combined<br />

contribute 28% to the gross domestic product (GDP)<br />

of the <strong>Western</strong> <strong>Cape</strong>. The financial services and insurance<br />

sector in particular has been a key component<br />

of the economy for many years, with many of South<br />

Africa’s biggest companies having their headquarters<br />

in <strong>Cape</strong> Town. Asset management and venture<br />

capital companies have been growing strongly in<br />

recent times.<br />

Agriculture is another important sector. Although<br />

only accounting for 4.3% of GDP on its own, the<br />

sector is responsible for the fruit and vegetables<br />

that contribute to agri-processing, which accounts<br />

for nearly 40% of the province’s export basket. (Agriprocessing<br />

accounts for 8.1% of GDP.) Citrus, wine,<br />

apples and pears, grapes, fruit juice, fruit and nuts<br />

and tobacco all appear in the top 10 of the province’s<br />

exports. Seventy percent of South Africa’s beverage<br />

exports came from the <strong>Western</strong> <strong>Cape</strong> over the last<br />

decade. Grape and wine sales to Europe remain<br />

very strong but the Chinese market is becoming<br />

increasingly important.<br />

Refined petroleum was the single biggest earner<br />

for the <strong>Western</strong> <strong>Cape</strong> in 2015, with exports valued<br />

at R18.2-billion (Wesgro).<br />

The province has a diverse manufacturing sector<br />

ranging from textiles, clothing, footwear and<br />

furniture to coke and refined petroleum products.<br />

Excluding agri-processing, other manufacturing<br />

makes up 6.9% of GDP. Several significant foreign<br />

investments have been received into the <strong>Western</strong><br />

<strong>Cape</strong> in recent years: Hisense, GlaxoSmithKline and<br />

Kimberley-Clark, among others.<br />

Sector growth<br />

The Provincial Government of the <strong>Western</strong> <strong>Cape</strong> is<br />

putting multiple resources into Project Khulisa, a<br />

plan to promote growth in three sectors that will<br />

also create new jobs: Oil and Gas, Agri-processing<br />

and Tourism.<br />

Other sectors that are also expected to grow<br />

quickly are:<br />

• ICT: <strong>Cape</strong> Town is already a knowledge hub with<br />

banks supporting fintech hubs and several firms<br />

making high-tech medical equipment. The City<br />

of <strong>Cape</strong> Town has an ICT strategy and the Silicon<br />

<strong>Cape</strong> Initiative is doing all it can to keep the momentum<br />

going in this field.<br />

• Film: The skyline near Somerset West has been<br />

notable for the rigging of two huge sailing ships<br />

17 WESTERN CAPE BUSINESS <strong>2017</strong>


SPECIAL FEATURE<br />

punctuating it for many months: this is the <strong>Cape</strong><br />

Town Film Studios, which hosted the Black Sails<br />

production team. More than 19 000 filming permits<br />

were issued by the City of <strong>Cape</strong> Town between<br />

2014 and October 2016. Universal Studios<br />

and Disney have a presence in <strong>Cape</strong> Town. The<br />

city of George is another important hub for the<br />

film industry.<br />

• <strong>Business</strong> Process Outsourcing (BPO): Amazon<br />

and Asda are just two big international companies<br />

that have call centres in <strong>Cape</strong> Town. Many<br />

more have signed up for similar services, and<br />

many more are expected. The national BPO association<br />

says that 5 000 jobs were created in<br />

South Africa in 2015, and it expects this to accelerate<br />

in <strong>2017</strong>.<br />

• Green economy: Atlantis is being promoted as<br />

a green economy manufacturing hub. The renewable<br />

energy sector is growing very fast and<br />

opportunities are opening in many fields; biogas<br />

and use of waste are areas of huge potential. The<br />

<strong>Western</strong> <strong>Cape</strong> Industrial Symbiosis Programme,<br />

or WISP, has achieved some major milestones<br />

in diverting organic waste and saving in greenhouse<br />

fossil gases. WISP is a Green<strong>Cape</strong> initiative.<br />

Each of the sectors listed above could be categorised<br />

as “tech” industries. Another one that could fall<br />

in this category is “design”. The <strong>Western</strong> <strong>Cape</strong> wants<br />

to lead in innovation.<br />

Renewable energy, the green economy, energy<br />

efficiency – all of these related concepts, once just<br />

a fuzzy dream, have become the bedrock of future<br />

business plans.<br />

Green buildings are becoming much more than<br />

a “nice-to-have”. A planned residential development<br />

in Somerset West, the Blue Rock Village with 1 000<br />

flats, will be powered by solar power and have water<br />

and energy management systems. The Hotel Verde<br />

at <strong>Cape</strong> Town International Airport claims to be<br />

carbon neutral and has a six-star rating from the<br />

Green Building Council of South Africa.<br />

Small, medium and micro enterprises are said<br />

to create jobs faster than large concerns. To bolster<br />

the SMME sector, the Industrial Development<br />

Corporation is supporting the Philippi Village<br />

Container Walk, an initiative of The <strong>Business</strong> Place<br />

and Bertha Foundation initiative. A total of 127 containers<br />

house entrepreneurs of every sort from shoe<br />

shops, barbers and construction material retailers to<br />

accountants, NGOs and a LEAP Science and Maths<br />

School training centre.<br />

The annual Premier’s Entrepreneurship<br />

Recognition Awards (PERA) has received more than<br />

1 000 entries since 2013. Some of the categories in<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 18


SPECIAL FEATURE<br />

2016 were for job creation (Doring Bay Abalone was<br />

the winner), innovation (Praelexis, a data company)<br />

and emerging rural business (Anja’s Pantry from<br />

Vredenburg).<br />

West Coast District Municipality<br />

Towns: Saldanha Bay, Malmesbury, Clanwilliam,<br />

Vredenburg, Moorreesburg.<br />

The economy of this region ranges from manufacturing<br />

in Saldanha, Atlantis and Malmesbury to<br />

agriculture and forestry centred on inland towns<br />

like Moorreesburg (wheat) and Cederberg (forestry)<br />

and Citrusdal. Cement is made in Riebeek West and<br />

Piketberg and fishing takes place all along the coast.<br />

Rooibos tea and shoes are made in Clanwilliam. The<br />

remote mission station of Wupperthal is famous for<br />

its veldskoens. The Port of Saldanha Bay is the principal<br />

port for the export of iron ore and is gearing<br />

itself to service the continent’s oil and gas industry<br />

and to be a steel manufacturing hub. Mineral sands<br />

are mined north of Saldanha.<br />

<strong>Cape</strong> Winelands District Municipality<br />

Towns: Stellenbosch, Paarl, Worcester, Robertson,<br />

Wellington, Franschhoek.<br />

Nearly 70% of South Africa’s wine comes from this<br />

area. Vineyards also attract many tourists but tourism<br />

in the Winelands includes wellness spas, adventure<br />

tourism and game farms. Manufacturing is concentrated<br />

on processing grapes and fruit into wine, juice,<br />

brandy, dried and tinned fruit products. Dairy manufacturer<br />

Parmalat has an award-winning cheesemaking<br />

facility in Bonnievale. Robertson is known<br />

for roses and thoroughbred horses. Stellenbosch<br />

is home to its eponymous university and houses<br />

the headquarters of several large companies, such<br />

as PSG Group.<br />

Overberg District Municipality<br />

Towns: Caledon, Bredasdorp, Hermanus,<br />

Swellendam, <strong>Cape</strong> Agulhas.<br />

The Overberg contains the southernmost tip of<br />

Africa (<strong>Cape</strong> Agulhas), the oldest mission station in<br />

South Africa (Genadendal), a large casino resort (in<br />

Caledon) and some of the best whale viewing in the<br />

world (Whale Coast). It also hosts some high-quality<br />

fruit farms in the Ceres Valley and rural villages that<br />

NAMIBIA<br />

Northern <strong>Cape</strong><br />

Northern <strong>Cape</strong><br />

WESTERN<br />

CAPE<br />

BOTSWANA<br />

North West<br />

Free State<br />

Eastern <strong>Cape</strong><br />

Limpopo<br />

ZIMBABWE<br />

Mpumalanga<br />

Gauteng<br />

SWAZI-<br />

LAND<br />

LESOTHO<br />

KwaZulu-<br />

Natal<br />

are popular with tourists, such as Barrydale and<br />

Greyton. Agriculture is the principal economic activity<br />

of the region and the services sector is strong.<br />

Eden District Municipality<br />

Towns: George, Oudtshoorn, Calitzdorp, Knysna,<br />

Mossel Bay, Plettenberg Bay.<br />

The area has two important tourist components:<br />

the <strong>Cape</strong> Garden Route on the coast and the Klein<br />

Karoo between the mountain ranges. Route 62 is a<br />

popular route that ends (or starts) in Oudtshoorn,<br />

home of the Cango Caves. A report by the Bureau for<br />

Economic Research (Stellenbosch University) found<br />

that Eden District is one of the best-performing<br />

regions because of tourism. Mossel Bay hosts the<br />

country’s main gas-processing plant while George<br />

is a node of manufacturing, trade, tourism and administration.<br />

The Klein Karoo has its own wine route<br />

and port, cheese and brandy are produced. Fruit,<br />

vegetables and ostriches are other main products.<br />

Central Karoo District Municipality<br />

Towns: Beaufort West, Laingsburg, Prince Albert.<br />

The largest district in the province has the smallest<br />

population, a reflection of the semi-desert conditions.<br />

Sheep farming predominates. Beaufort West<br />

is strategically positioned on the N1 highway, which<br />

links <strong>Cape</strong> Town with the interior of South Africa. It is<br />

nearby the Karoo National Park and not far from Prince<br />

Albert, a quaint town situated in the shadow of the<br />

Swartberg Mountain. Prince Albert is a popular tourist<br />

destination and is close to the dramatic portals that<br />

link the Karoo to the Klein Karoo: Seweweekspoort,<br />

the Swartberg Pass and Meiringspoort.<br />

MOZAMBIQUE<br />

19 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

R2-billion of investment<br />

into the <strong>Western</strong> <strong>Cape</strong><br />

Tim Harris, CEO of Wesgro, reviews a successful year for<br />

business and investment in the <strong>Western</strong> <strong>Cape</strong>.<br />

Wesgro CEO Tim Harris<br />

BIOGRAPHY<br />

Tim Harris is Chief Executive Officer<br />

of Wesgro, the <strong>Western</strong> <strong>Cape</strong>’s official<br />

Destination Marketing, Investment and<br />

Trade Promotion Agency. Wesgro is<br />

more than 30 years old and remains<br />

the oldest organisation of its kind in<br />

the country. Prior to that appointment<br />

he was the Director of Trade and<br />

Investment in the Office of the Executive<br />

Mayor at the City of <strong>Cape</strong> Town and<br />

the Shadow Minister of Finance with<br />

Democratic Alliance in parliament.<br />

He was elected to Parliament aged<br />

29. Harris has a Masters in Economics<br />

from UCT.<br />

Please could you give an overview of Wesgro’s activities<br />

over the year?<br />

In a difficult economic climate, Wesgro has performed very strongly<br />

over the past year.<br />

Our work always begins with economic insight and the Wesgro<br />

research team has helped deliver a much deeper understanding of<br />

economic opportunities in the <strong>Western</strong> <strong>Cape</strong>, publishing 115 research<br />

pieces over the past year. For example, there has been huge interest<br />

in markets such as Angola, and our report on food and beverage opportunities<br />

in Anglo was downloaded more than 1 500 times. So the<br />

research team continues to give us the hard numbers we need to make<br />

the case for business in the <strong>Western</strong> <strong>Cape</strong>.<br />

The new Wesgro website (www.wesgro.co.za) was launched late<br />

in 2016 with a much more interactive approach to data and business<br />

intelligence. It will enable business in the <strong>Western</strong> <strong>Cape</strong> to be more<br />

informed and able to realise opportunities quickly because of the work<br />

that our economists are doing. We developed online dashboards for<br />

Tourism and for Air Access, both of which are part of the Province’s<br />

Project Khulisa initiative.<br />

On the trade side, we were helped by the weakening of the rand,<br />

and we trained more than 500 companies in export readiness, helping<br />

them to build their capacity to export. We also took hundreds of companies<br />

to market to help grow their global sales. For the first time this<br />

year we really engaged with the new mandate that the Minister gave us<br />

to help drive outward investments into the rest of Africa, so we are now<br />

also helping <strong>Western</strong> <strong>Cape</strong> companies to establish operations in Africa.<br />

On the investment side, we surpassed the R2-billion mark in terms of<br />

investment landed in the <strong>Western</strong> <strong>Cape</strong>. Our biggest investment was a<br />

R1.189-billion renewable energy project from Spanish-based Acciona in<br />

the rural area of Gouda, which we worked on with Green<strong>Cape</strong>.<br />

Overall, the investment we facilitated created 681 jobs, and<br />

the agri-team in particular landed three deals including an abalone-farming<br />

facility in Doringbaai and the world’s first commercial<br />

fly farm in Philippi, so there was a strong performance<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

20


INTERVIEW<br />

from the investment team despite obvious<br />

challenges in the global and local economy.<br />

On the destination marketing side, the<br />

Convention Bureau helped bring almost 28 000<br />

new delegates to the <strong>Western</strong> <strong>Cape</strong> in the past year,<br />

with the economic impact of R374-million from the<br />

bids they landed for events in <strong>Cape</strong> Town. On the<br />

Leisure Marketing side, we supported 48 events<br />

around the province, helping to give people reasons<br />

to travel out of <strong>Cape</strong> Town into the outlying regions,<br />

particularly during the winter season.<br />

The film team continues to position the <strong>Western</strong><br />

<strong>Cape</strong> as one of the top film destinations in the developing<br />

world. They assisted 188 film and media<br />

companies and conducted four events focused on<br />

opportunities in the film sector.<br />

“WE HELPED TO RAISE<br />

SOUTH AFRICA’S GROWTH<br />

RATE AND REDUCE<br />

UNEMPLOYMENT”.<br />

Air Access is a collaborative project that Wesgro<br />

coordinated between key government organisations,<br />

including the <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government, City of <strong>Cape</strong> Town, <strong>Cape</strong> Town Tourism<br />

and Airports Company South Africa. We’ve added<br />

over 53 800 new two-way seats on a variety of flights<br />

from regions all around the world, and are achieving<br />

the objective of connecting <strong>Cape</strong> Town to Africa<br />

and the world in a very practical way. Establishing<br />

these flight connections is a great way of driving<br />

trade, investment and tourism.<br />

The relative performance of the <strong>Western</strong> <strong>Cape</strong><br />

continues to be impressive – we helped to raise<br />

South Africa’s growth rate and reduce South Africa’s<br />

unemployment rate. We’ve had 147 000 people net<br />

moving into the <strong>Cape</strong> in the past decade according<br />

to StatsSA, and almost half of those have come<br />

from Gauteng, so South Africans are voting with<br />

their feet for the <strong>Western</strong> <strong>Cape</strong> economy, bringing<br />

skills, capital and experience. Entrepreneurs from all<br />

backgrounds and from all race groups are seeing<br />

opportunities to grow in the <strong>Western</strong> <strong>Cape</strong>.<br />

What is the expected effect of Brexit on<br />

business in the region?<br />

Brexit is a risk but also an opportunity. The UK is<br />

an important trading partner for us and they are<br />

also one of the largest investors in the <strong>Western</strong><br />

<strong>Cape</strong> over the past decade (measured by number<br />

of projects).<br />

The uncertainty around the trading arrangements<br />

with Britain is not a good thing, as uncertainty<br />

is a disincentive for business. We’ve had several<br />

engagements with the Consulate General and also<br />

our largest agri-exporters who are very exposed to<br />

the British market, to give them a view of what the<br />

roadmap is for Brexit but also to focus on the opportunity<br />

it might present. Right now our trade with<br />

Britain is governed by EU trading arrangements, and<br />

there exists the distinct possibility that we may be<br />

able to negotiate more favourable terms when and<br />

if Britain exits from the EU arrangement.<br />

What impact will the Special Economic<br />

Zones have?<br />

The plan is to have two zones, with oil and gas services<br />

at the Saldanha Bay IDZ, and clean technology<br />

around Atlantis, which Green<strong>Cape</strong> is putting<br />

together. What this shows is that <strong>Cape</strong> Town is being<br />

defined as a leading global energy city. One of the<br />

interesting results of the decline in the oil price is<br />

that it’s forced many cities like <strong>Cape</strong> Town to look<br />

at where the skills that were involved in the oil industry<br />

can be deployed, and we found that many<br />

of those technical skills are quite transferrable into<br />

new energy like renewables and clean technologies<br />

So there’s a synergy between those two , old<br />

energy and renewables or new energy. Recently,<br />

the Mayor invited the leading energy cities from<br />

around the world to <strong>Cape</strong> Town and when we met<br />

with them it became clear that <strong>Cape</strong> Town is really<br />

special in terms of the broad package of energy opportunities<br />

and most importantly skills to activate<br />

those opportunities. I think when we look back in<br />

a decade you will see <strong>Cape</strong> Town emerge as a real<br />

energy capital for Africa.<br />

21 WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

More than the voice<br />

of business<br />

The <strong>Cape</strong> Chamber is “where opportunity meets”.<br />

Although we have never been as technologically connected<br />

as we are today, the harsh reality is that we have never been<br />

as disconnected socially as we are now, in spite of the prevalence<br />

and growth of social media. The <strong>Cape</strong> Chamber offers<br />

access to an established network where legitimate businesses can meet,<br />

engage and grow. It is a dynamic and safe space for lowering risk, being<br />

heard and finding opportunity.<br />

We have been challenged with a macro economy that is showing<br />

no sign of creating a buoyant platform for profitable business. However,<br />

no matter what the prevailing climate is for business, there will always<br />

be opportunity for those who seek it out and rise to the challenge.<br />

If we used the rest of the country as a comparison, the <strong>Western</strong><br />

<strong>Cape</strong>’s economic performance is above the average. In addition, this<br />

is a great place to live, work and play with <strong>Cape</strong> Town being a clean,<br />

orderly and beautiful city that attracts innovative and dynamic individuals<br />

who in turn infuse creativity and growth into the region. There are<br />

many spin-offs to this, such as our substantially lower unemployment<br />

rate (when compared to the average for South Africa). We also attract<br />

considerable foreign direct investment, for example more than R200-<br />

million invested by Kimberly Clarke, R260-million by Hisense and nearly<br />

R1-billion by Amazon in BPO and tech projects.<br />

Although the <strong>Cape</strong> Chamber, which is the oldest membership-based<br />

organisation in Africa, will turn 213 years in <strong>2017</strong>, it is not business as<br />

usual. We have, as an organisation, embraced innovation to the extent<br />

that it is in our very DNA. The result is a substantial member base who<br />

advocate strongly for what the Chamber does and stands for.<br />

We are considered the voice of business in the region. Our ability<br />

to lobby is underpinned by our status of being fiercely independent.<br />

We are not affiliated to any political party, and we are not beholden to<br />

any single organisation. We monitor proposed legislation that could<br />

impact business in the region, and where necessary, submit evidence<br />

to the relevant Parliamentary Standing Committee or other authorities<br />

in the interests of our members. We stand up and say what needs to be<br />

said – we are heard and people in authority often heed what we say.<br />

The Chamber is intimately connected with specialised sectors in the<br />

economy through our Portfolio Committees that focus on agribusiness,<br />

digital, economic development, HR, industrial focus, international trade<br />

<strong>Cape</strong> Chamber President<br />

Janine Myburgh<br />

<strong>Cape</strong> Chamber Executive<br />

Director Sid Peimer<br />

and tourism, small business development<br />

and transport. We have<br />

a Youth Chamber that focuses<br />

on the 13-to 25 year old scholars,<br />

students and entrepreneurs, so<br />

as to give them the leverage to<br />

become successful. In addition,<br />

we host the Port Liaison Forum,<br />

a committee comprising users of<br />

the Port of <strong>Cape</strong> Town, including<br />

shipping lines, freight and forwarding<br />

agents, cargo owners and port<br />

officials. This facilitates a port that<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

24


FOCUS<br />

is run smoothly and effectively. We<br />

also have various chapters across<br />

the peninsula, each with its own<br />

committee that focus on adding<br />

value to the members in their<br />

respective areas.<br />

We play a significant role in<br />

keeping our members informed<br />

of the latest issues affecting business<br />

and industry, both large<br />

and small. To that end we host<br />

a substantial number of seminars<br />

and workshops to facilitate<br />

information-sharing and training<br />

for our members. We have had<br />

many stimulating and informative<br />

speakers address members at the<br />

Chamber. These have included:<br />

Professor Jonathan Jansen who<br />

was, until recently, Vice Chancellor<br />

of the University of the Free State;<br />

Dr Annthea Jeffrey of the Institute<br />

of Race Relations; Anette Steyn, the<br />

Shadow Minister of Agriculture,<br />

Forestry and Fishing; Dr Ivan<br />

Meyer, the <strong>Western</strong> <strong>Cape</strong> Minister<br />

of Finance; Ms Lumka Yengeni,<br />

Chairperson of the Parliamentary<br />

Labour Portfolio Committee;<br />

Richard Walker, Regional<br />

Manager Metrorail; Dr Mamphela<br />

Ramphela, activist and one-time<br />

MD of the World Bank; Mr Tshediso<br />

Matona, Secretary of Planning<br />

and Acting Director General of<br />

the Department of Planning,<br />

Monitoring and Evaluation, and<br />

many more.<br />

The Chamber is well respected<br />

and we can attract high-profile<br />

speakers to debate issues and<br />

answer questions from our members.<br />

Recent events that have<br />

drawn much attention are our<br />

“Rumble in the Urban Jungle”<br />

series of debates. We had two in<br />

2016 – the first featured the leader<br />

of the EFF Julius Malema versus the futurist Clem Sunter, and our second<br />

“rumble” pitted Finance Minister Pravin Gordhan against controversial<br />

journalist and author Justice Malala. These events received extensive<br />

coverage and were featured in all major media in addition to being<br />

livestreamed to an international audience. But more importantly, they<br />

provided information enabling listeners to make better decisions as<br />

business people and citizens.<br />

In addition to the numerous meetings and presentations, the<br />

Chamber hosts a number of landmark events. Our Small <strong>Business</strong> Expo<br />

attracts thousands and is growing at a phenomenal rate. We also introduced<br />

the <strong>Cape</strong> <strong>Business</strong> Summit in 2016, with Google as one of the<br />

keynote speakers. The Chamber also owns the Design for Living expo,<br />

which in its heyday attracted 100 000 attendees, but was halted a number<br />

of years ago. We are currently in the process of repositioning the expo<br />

as Design for Future Living, which will attract exhibitors and attendees<br />

who are interested in everything that affects our modern lifestyle.<br />

Our Exporter of the Year competition celebrated its 26th year in 2016.<br />

This competition brings together the <strong>Western</strong> <strong>Cape</strong>’s leading exporters<br />

and provides an insight into the work and achievements of many companies<br />

that are not necessarily well known to the public. The annual gala<br />

awards dinner has become one of the highlights of the year and an outstanding<br />

opportunity for networking. We also serve on the Board and run<br />

the SA Chapter of the International Women’s Entrepreneurial Challenge, a<br />

global competition that brings some of the foremost women in business<br />

together, publicises their considerable achievements and allows them<br />

to network with their peers at an international level.<br />

In addition to all these events, we host both formal and informal<br />

networking functions, allowing our members to leverage relationships<br />

that they have built up through the Chamber. We offer business advice<br />

covering a range of subjects from legislation to HR to tendering. There<br />

is also an International Trade Desk, which is the first point of contact<br />

for trade missions and visiting delegations who come to the Chamber<br />

to interact with our members. The Chamber is authorised to issue<br />

certificates of origin for exporters.<br />

The <strong>Cape</strong> Chamber of Commerce & Industry is a respected and<br />

admired brand that has managed to remain relevant in a rapidly<br />

changing world. It’s “where opportunity meets”.<br />

CONTACT INFO<br />

Physical address: 4th Floor, 33 Martin Hammerschlag Way,<br />

Foreshore, <strong>Cape</strong> Town 8001<br />

Postal address: PO Box 204, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 402 4300 | Fax: +27 21 402 4302<br />

Email: info@capechamber.co.za<br />

Website: capechamber.co.za<br />

25 WESTERN CAPE BUSINESS <strong>2017</strong>


PROFILE<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong><br />

Opportunities Forum<br />

The <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> Opportunities Forum (WECBOF) is a non-profit organisation<br />

with a powerful voice for business in the southernmost region of the African continent,<br />

the <strong>Western</strong> <strong>Cape</strong>.<br />

Description<br />

The <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> Opportunities Forum<br />

(WECBOF) is a member-based organisation for business.<br />

It has access to channels for information on<br />

how to grow and develop businesses in mainly the<br />

Small, Medium and Micro Enterprise (SMME) sector,<br />

and is an enabler for its members to access new<br />

business opportunities.<br />

Service<br />

WECBOF is a service association providing businesspeople<br />

with relevant information, training,<br />

business opportunities, and representation on<br />

appropriate investment, public sector and related<br />

platforms. It also ensures that it is represented on<br />

the boards of relevant associations and affiliations<br />

in order to ensure that its members are well-represented<br />

and that opportunities are filtered to the<br />

organisation for their benefit.<br />

<strong>Business</strong> objective<br />

WECBOF’s objective is to improve business performance<br />

in order to achieve improved levels of economic<br />

growth and employment, reduce poverty<br />

and meet social objectives. In order to achieve its<br />

objective, the organisation focuses on addressing<br />

issues such as contributing to the establishment of<br />

an environment that is conducive to a free market<br />

based on competitiveness, access to financial and<br />

other business support services, and expanding<br />

markets for products and services.<br />

Target market<br />

The organisation’s target market is the entrepreneurial<br />

community of the <strong>Western</strong> <strong>Cape</strong>, including<br />

the SMME sector.<br />

CONTACT INFO<br />

Email addresses<br />

General enquiries: office@wecbof.co.za<br />

Chief Executive Officer: arifa@wecbof.co.za<br />

Administration: rene@wecbof.co.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

26


WECBOF: Where<br />

entrepreneurs excel<br />

Arifa Parkar is the CEO of the <strong>Western</strong> <strong>Cape</strong> <strong>Business</strong><br />

Opportunities Forum (WECBOF).<br />

INTERVIEW<br />

Arifa Parkar, CEO<br />

BIOGRAPHY<br />

Arifa Parkar completed her formal<br />

education at the University<br />

of Bombay and Mumbai, earning<br />

a BA in Economics and Politics<br />

before moving on to complete<br />

her LLB in 1985. The same year<br />

she acquired her qualifications in<br />

<strong>Business</strong> Management. In 1999<br />

she joined the Department of Economic<br />

Affairs and Tourism before<br />

becoming Marketing Manager<br />

at the <strong>Cape</strong> Chamber in 2001.<br />

She is an active member and<br />

executive on the Committee of<br />

the South African Institute of International<br />

Affairs (<strong>Western</strong> Province<br />

Branch) and was elected the 1st<br />

President of Mafubo South Africa,<br />

an international NGO.<br />

In addition to her role as CEO<br />

of WECBOF, Arifa also owns and<br />

runs Aasha Investment Solutions<br />

(Pty) Ltd.<br />

You were born in Zanzibar, grew up in the Seychelles,<br />

Mauritius and India… so when did <strong>Cape</strong> Town<br />

become home?<br />

I came to the shores of South Africa in 1991 and very soon after I<br />

realised that this could very well be my final choice of a place to call<br />

home. It just suited me in every aspect – the different cultures, the<br />

“joie de vivre”, the diversity, and of course the cosmopolitan appeal of<br />

<strong>Cape</strong> Town just spread its web around my heart.<br />

Does your vast international experience enhance<br />

WECBOF’s work?<br />

Absolutely – I strongly believe that networking is the key to any business’s<br />

success. Over the years my personal network has grown quite<br />

significantly, and this will be the key to opening local, national and<br />

international opportunities for WECBOF and our members.<br />

How has WECBOF changed its focus in recent years?<br />

WECBOF started out as a voice for coloured businesspeople, but today<br />

it represents all South Africans with a common passion for entrepreneurship<br />

in the <strong>Western</strong> <strong>Cape</strong>. This is our greatest achievement.<br />

How does WECBOF encourage more opportunities for SMMEs?<br />

To succeed in today’s collaborative, client-driven, networked economy,<br />

companies must take advantage of the strength of their business<br />

relationships to succeed. A new economy is emerging, one built on a<br />

complex network of information, interaction and change. This evolving<br />

business landscape, shaken by technological innovation, globalisation<br />

and downsizing, has led us back to embracing the most fundamental<br />

aspect of business: relationships. That is why WECBOF is in constant dialogue<br />

with stakeholders so that we create an enabling environment for<br />

our members, as well as those with whom we interact and do business.<br />

Which of your accolades means the most to you?<br />

I have two personal favourites that stand out from the rest, one from<br />

CEO Magazine as the “Most Influential Woman in <strong>Business</strong>” Award,<br />

and the second was awarded to me by <strong>Business</strong> Partners for my<br />

“Contribution to SMMEs in the <strong>Western</strong> <strong>Cape</strong>”. These two are very<br />

dear to my heart.<br />

27 WESTERN CAPE BUSINESS <strong>2017</strong>


DID YOU KNOW?<br />

OMBDS 12.2016 L10069<br />

OMBDS 12.2016 L10069<br />

• 10 years ago the Masisizane Fund was established as an initiative of Old Mutual<br />

South Africa following the closure of the Unclaimed Shares Trust.<br />

• The Fund provides loan finance to small businesses.<br />

• The mandate of the Fund is to contribute meaningfully to employment creation,<br />

poverty eradication and reduction of inequality, economic growth and the attraction<br />

of investment.<br />

• The Fund honours the mandate through the promotion of entrepreneurship, enterprise<br />

finance and support to small, micro and medium enterprises.<br />

• The focus of the Fund is on enterprises that are 51% or more owned by previously<br />

disadvantaged individual(s) and gives priority to rural and peri-urban/township<br />

areas.<br />

• Preference is given to businesses owned by youth, people with disabilities or are<br />

owned by women (51% or more).<br />

• In order to contribute meaningfully to job creation, productive and labour absorbing<br />

sectors are targeted:<br />

Agribusiness<br />

Franchising<br />

Supply Chain<br />

Flagship initiative in agriculture in the Eastern <strong>Cape</strong><br />

• Over the last almost 10 years, the <strong>Western</strong> <strong>Cape</strong> has benefited from investments<br />

from the Masisizane Fund in all of the sectors mentioned above to the value of more<br />

than R22m. With its focus in agriculture, investments to the value of R14m has been<br />

made in this sector alone.<br />

Old Mutual is a Licensed Financial Services Provider


MASISIZANE FUND<br />

• The Fund supplies non-financial value-adding post-investment services including<br />

capacity development, business management and technical support, financial<br />

education, market development and product-service quality standards and<br />

compliance.<br />

• Masisizane plays a vital role in the assessment of potential suppliers to Old Mutual<br />

and the further development of suppliers to include the creation of business to<br />

business transactions with Old Mutual.<br />

• Since 2012, the Masisizane Fund has offices in five of the nine provinces with the<br />

national head office in Gauteng:<br />

Gauteng (including North West & Free State) 011 217 1746<br />

<strong>Western</strong> <strong>Cape</strong> (including Northern <strong>Cape</strong>) 021 509 5074<br />

KwaZulu-Natal 031 335 0400<br />

Eastern <strong>Cape</strong> 043 704 0116<br />

Limpopo (including Mpumalanga) 015 287 4279<br />

An initiative of the<br />

Group


Down-town boom town, <strong>Cape</strong> Town<br />

A number of high-visibility construction projects are under development in the <strong>Cape</strong> Town<br />

CBD and surrounds.<br />

Thousands of people happily meandering<br />

through the streets of the inner-city till late<br />

at night – that’s down-town <strong>Cape</strong> Town on<br />

the first Thursday of every month. Started in<br />

2012 as a way of attracting people to art galleries and<br />

museums, the event has morphed into an urban festival<br />

of fun, film, fashion, food and performance art.<br />

It’s also a good measure of a city economy on the up.


SPECIAL FEATURE<br />

The land earmarked for the Richmond Park development.<br />

<strong>Cape</strong> Town’s central business district (CBD) delivers<br />

a quarter of the city’s economic activity and about<br />

30% of employment. Construction projects worth<br />

R16-billion are either being built or are in the pipeline<br />

for the CBD. Hundreds of hotel beds are being<br />

added to the city’s tourist offering and public money<br />

is going in to upgrades of the railway station and<br />

the Iziko South African Museum. A new <strong>Cape</strong> Town<br />

Museum is planned for the old Standard Bank building<br />

on Adderley Street.<br />

Major developments on both ends of the Foreshore<br />

will transform the city’s connection to the harbour and<br />

effectively extend the very successful formula of the<br />

V&A Waterfront across the front of <strong>Cape</strong> Town.<br />

A new cruise terminal on the western edge of the<br />

Foreshore (north-west of the <strong>Cape</strong> Town International<br />

Convention Centre, CTICC) welcomed 86 000 passengers<br />

in its first year of operation. The tender to<br />

run the terminal was won by the V&A Waterfront. The<br />

Amdec Group is developing The Yacht Club directly<br />

south of the terminal, a mix of commercial, residential<br />

and hotel space.<br />

This is part of a larger Port Gateway project that<br />

aims to connect the city to the sea. The Roggebaai<br />

Canal will be extended to Duncan Dock, providing a<br />

link to both the CTICC and the Waterfront.<br />

On the eastern edge of the Foreshore, a very<br />

ambitious plan envisages two new hotels, flats, retail<br />

space and offices rising out of ground currently occupied<br />

by three car dealerships and a roadworthy<br />

station on Christiaan Barnard Street. The Harbour<br />

Arch concept is based on Johannesburg’s Melrose<br />

Arch, with seven tower blocks to be constructed<br />

on 200 000m², roughly half the footprint of the V&A<br />

Waterfront. The Amdec Group are the owners and<br />

developers of the project.<br />

Further afield, a high-visibility site 17km from<br />

<strong>Cape</strong> Town CBD is being developed as a mixed-use<br />

commercial precinct with 300 000 m 2 of gross bulk<br />

lettable area on a 99-year leasehold basis. Called<br />

Richmond Park, it is anticipated that the development<br />

will be popular with distribution and light<br />

industrial businesses, but it will also incorporate a<br />

retail centre.<br />

Hotels<br />

Marriott International’s introduction of three new<br />

hotel brands to <strong>Cape</strong> Town forms part of the re-shaping<br />

of the Foreshore. Both the <strong>Cape</strong> Town Marriott<br />

Hotel Foreshore and the Residence Inn by Marriott<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 32


SPECIAL FEATURE<br />

will be part of the new Harbour Arch precinct, while<br />

the AC Hotel will be attached to the Yacht Club and<br />

be the first thing cruise line visitors see after they<br />

emerge from dealing with customs authorities. The<br />

three hotels will offer a total of 539 rooms.<br />

The Rezidor Hotel Group is adding a sixth <strong>Cape</strong><br />

Town property to its portfolio with the opening<br />

of the Radisson Red Hotel V&A Waterfront <strong>Cape</strong><br />

Town. The Capital Mirage opens in De Waterkant<br />

in 2016 while the boutique Silo Hotel will perch<br />

above the Zeitz Museum of Contemporary Art Africa,<br />

which is going to display its contemporary art in the<br />

Waterfront’s re-purposed grain silos.<br />

Tsogo Sun is spending R680-million on the site<br />

of the old Tulip Hotel to create a two-hotel and<br />

conference complex. Fronting on Strand Street (and<br />

Bree and Buitengracht), a total of 500 rooms will be<br />

available in a SunSquare hotel and a StayEasy hotel.<br />

<strong>Cape</strong> Town International Convention<br />

Centre<br />

Since it started operating in 1999, the CTICC has<br />

added R38-billion to the regional economy. It is<br />

jointly owned by the City of <strong>Cape</strong> Town (67.8%), the<br />

<strong>Western</strong> <strong>Cape</strong> Government (25.3%), and SunWest<br />

International (Pty) Ltd (6.9%). The Westin Hotel is on<br />

the western edge of the conference centre complex<br />

and several other large hotels are nearby, including<br />

two Southern Sun hotels, Waterfront <strong>Cape</strong> Town<br />

and The Cullinan.<br />

Building is under way to double the size of the<br />

CTICC, which will position <strong>Cape</strong> Town to handle<br />

mega-conferences such as those dealing with climate<br />

change. Two major conferences were recently<br />

secured with the help of the <strong>Cape</strong> Town & <strong>Western</strong><br />

<strong>Cape</strong> Convention Bureau: the 18th International<br />

Congress of Immunology (IUIS) and the International<br />

Symposium on Microbial Ecology (ISME). The CTICC<br />

bids were in competition with London, Paris, Mexico<br />

and Toronto, Hawaii, Auckland, Beijing and Santiago.<br />

These two events alone will bring 8 500 visitors<br />

to the city.<br />

In 2015/16, the CTICC generated R200-million in<br />

revenue and earned R65-million in operating profit<br />

by hosting 504 events.<br />

Voortrekker Road Corridor development<br />

The old road to the north is still a very busy road<br />

but there are plans to bulk up Voortrekker Road<br />

and make it an attractive investment destination.<br />

The City of <strong>Cape</strong> Town has recently put infrastructure<br />

worth more than R300-million into<br />

supporting the plan, and has given money to the<br />

Passenger Rail Agency of South Africa (PRASA)<br />

for it to develop a plan to upgrade the rail corridor.<br />

The Voortrekker Corridor is one of the<br />

densest transport nodes, with rail, road and taxi<br />

linkages throughout.<br />

The Greater Tygerberg Partnership is driving<br />

several initiatives to spur developments in the<br />

region. These relate to attracting investment, affordable<br />

housing, creating a world-class sporting<br />

facility at the Haardekraaltjie precinct, and lobbying<br />

for pedestrian malls, bike lanes and more<br />

efficient public transport.<br />

The City of <strong>Cape</strong> Town presented its Voortrekker<br />

Road Corridor: Strategy and Investment Plan at the<br />

African Real Estate and Infrastructure Summit at<br />

the CTICC in November 2016.<br />

33 WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

A world-class<br />

convention centre<br />

welcoming the world<br />

By expanding its existing footprint, the CTICC is moving closer to its goal of becoming<br />

one of the top convention centres in the world.<br />

©ALAIN PROUST<br />

The <strong>Cape</strong> Town International Convention Centre (CTICC) is a destination<br />

of choice for conferences, exhibitions and business events on<br />

the African continent. Located in the foreshore business precinct<br />

in the City of <strong>Cape</strong> Town, the centre is currently undergoing an<br />

impressive expansion project. The expansion – known as CTICC East – is<br />

set to further the centre’s reputation for hosting the highest number of<br />

international conferences in Africa and will allow it to simultaneously<br />

host concurrent large-scale events across CTICC West (the original<br />

facility) and CTICC East.<br />

Only a 20-minute drive from <strong>Cape</strong> Town International Airport, the<br />

CTICC offers:<br />

• Two auditoria seating 1 500 and 612 delegates respectively<br />

• A roof terrace for 380 delegates<br />

• 33 breakout rooms of varying sizes accommodating 25-320<br />

delegates<br />

• 11 399m 2 of dedicated exhibition and tradeshow space<br />

• Versatile banqueting and function rooms including a grand<br />

ballroom of 2 000m 2 with breathtaking city views<br />

• 1 400 parking bays<br />

CTICC East, scheduled to open in July <strong>2017</strong>, increases the centre’s capacity<br />

with 10 000m 2 of multipurpose conference and exhibition space and<br />

3 000m 2 of formal and informal meeting space. It has been awarded a<br />

Four-Star Green Building Rating by the South African Green Building<br />

Council.<br />

The CTICC is a purpose-built<br />

facility in one of the premier tourism<br />

destination cities. Its expansion<br />

bolsters its vision to deliver<br />

extraordinary experiences to a far<br />

broader audience and become<br />

one of the top 10 convention<br />

centres in the world.<br />

CONTACT INFO<br />

Physical address:<br />

Convention Square, 1 Lower<br />

Long Street, <strong>Cape</strong> Town<br />

8001<br />

Tel: +27 21 410 5000<br />

Email: info@cticc.co.za<br />

Website: www.cticc.co.za<br />

Twitter: @ C T I C C _ O f fi c i a l<br />

Facebook: facebook.com/<br />

CTICC<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

34


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INTERVIEW<br />

<strong>Cape</strong> Town’s new<br />

warehousing hub<br />

Gerrit van den Berg of Atterbury<br />

outlines the proposal to develop Richmond Park.<br />

Gerrit van den Berg<br />

BIOGRAPHY<br />

Gerrit, who heads up the <strong>Western</strong><br />

<strong>Cape</strong> offi ce for Atterbury, studied<br />

a BCom Investment Management<br />

at Tuks (the University of<br />

Pretoria) before he started working<br />

for a Johannesburg-based<br />

developer. On his daily commute<br />

between Pretoria and Johannesburg<br />

he would drive past two<br />

buildings being developed by<br />

Atterbury. He was so impressed<br />

with the look of the buildings that<br />

he plucked up the courage to<br />

approach the company for a job.<br />

His initiative paid off and he has<br />

been working for Atterbury since<br />

2006. In January 2016 he moved<br />

to the <strong>Western</strong> <strong>Cape</strong> to open the<br />

regional offi ce in Stellenbosch.<br />

What prompted the decision to develop Richmond Park?<br />

Atterbury was approached by two individuals, Richard Glass and Daniel<br />

Filippi, who saw an invitation to tender for the development of 84ha of<br />

land adjacent to the suburb of Richwood along the N7 highway. They<br />

invited us to join them in bidding for the land that had been advertised<br />

following the awarding of a land claim.<br />

We were impressed by the fact that the land is joined by key roads in the<br />

north/central part of the city and is therefore very accessible and so were<br />

delighted when the tender was awarded to our consortium.<br />

How will the land claimants benefit from the project?<br />

The 401 families who lived on the land in the 1970s and ‘80s were removed<br />

against their will from the land by the former apartheid administration.<br />

The land was returned to the original inhabitants following a successful<br />

land claim.<br />

Our tender bid specified that the original community members would<br />

become a 25% shareholder in the final development project. The original<br />

families and their descendants received a monetary amount when the<br />

lease was registered and they will qualify for an annuity income from the<br />

proceeds of the development – that is, once the development becomes<br />

profitable and for the remainder of the 99-year lease.<br />

Who are you targeting in terms of sales/leases and which<br />

companies have signed up to move to Richmond Park?<br />

We are targeting larger distribution and logistics companies, particularly<br />

those requiring in excess of 5 000m 2 facilities. We have sold 3.5ha of land to<br />

<strong>Cape</strong> Fruit Coolers, and also concluded a deal with CTM. We have earmarked<br />

a retail development of 11 000m 2 at Richmond Corner with Pick n Pay, Clicks<br />

and Planet Fitness as anchor tenants, scheduled to open in March 2018.<br />

We estimate there is sufficient space to construct 300 000m 2 of bulk<br />

in total.<br />

www.richmondpark.biz<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

36


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atterbury.co.za


INTERVIEW<br />

Driving investment<br />

in <strong>Cape</strong> Town<br />

Lance Greyling heads up the newly launched<br />

Invest <strong>Cape</strong> Town initiative.<br />

Lance Greyling<br />

BIOGRAPHY<br />

Lance Greyling has experience<br />

in the private sector, civil society<br />

and government. After some<br />

time in the corporate world he<br />

joined environmental organisation<br />

Globe Southern Africa as the<br />

programme manager for Southern<br />

Africa. In 2003, he joined<br />

the newly formed Independent<br />

Democrats under Patricia de Lille<br />

and was elected to Parliament<br />

in 2004. He spent 11 years in<br />

Parliament, serving on a number<br />

of different portfolios, including<br />

Trade and Industry, Finance,<br />

Education, Environmental Affairs<br />

and Energy. In February 2015, he<br />

took up the position of Director<br />

of Trade and Investment at the<br />

City of <strong>Cape</strong> Town.<br />

Please give some background on Invest <strong>Cape</strong> Town and<br />

its role.<br />

<strong>Cape</strong> Town is known the world over as a beautiful city and a tourist<br />

destination, but we want to position <strong>Cape</strong> Town as a globally competitive<br />

business destination – a great place to invest and a great place<br />

to do business. If we are going to address our socio-economic challenges<br />

as a city, we have to grow the economy and create more jobs.<br />

We have the lowest rate of unemployment of all the metros, but it still<br />

sits at around 20% which is far too high. If we’re going to make a dent<br />

in that we have to position <strong>Cape</strong> Town in the minds of both local and<br />

international investors as a globally competitive business destination,<br />

and if they choose to invest here we will make it as easy as possible to<br />

get their enterprise going.<br />

What makes <strong>Cape</strong> Town an attractive destination<br />

for investors?<br />

There are a number of exciting things that are happening in <strong>Cape</strong> Town.<br />

Firstly, potential investors coming to <strong>Cape</strong> Town realise that this is a<br />

city that actually works – the infrastructure is in place, we have reliable<br />

electricity and water, on an administrative level this is a city that is easy<br />

to deal with, we’re very responsive to businesspeople and our citizens,<br />

so we deal with issues quickly and make sure problems are resolved.<br />

In terms of governance, we’re now the most stable metro in the<br />

country, with a 65% majority, so there is continuity of policies and<br />

governance. We’ve had unqualified audits for the past 10 years. This<br />

factor is vitally important to investors.<br />

Secondly, there are a number of interesting sectors that have<br />

emerged in <strong>Cape</strong> Town, which investors will be particularly interested<br />

in. We conducted a study of the <strong>Cape</strong> Town economy to identify areas<br />

for growth, and what we found was that a lot of the sectors that <strong>Cape</strong><br />

Town is doing well in are sectors that are poised for big global growth<br />

– sectors of the future.<br />

An example is the ICT sector – we are very much the tech hub of<br />

Africa with the most tech start-ups of any city on the continent, and<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

38


INTERVIEW<br />

we also have a mature ecosystem here that can<br />

support tech companies.<br />

In BPO (<strong>Business</strong> Process Outsourcing), we’re<br />

the leader in South Africa and in Africa. There are<br />

a number of global companies such as Amazon<br />

running back-office and call-centre operations out<br />

of <strong>Cape</strong> Town. This is another sector where we want<br />

to attract more investors and where we have an<br />

attractive offering.<br />

In terms of the renewable energy and clean-tech<br />

industries, we’re also a leader. We should shortly<br />

receive national designation for a Special Economic<br />

Zone in Atlantis for the clean-tech sector, and we<br />

already account for about 60% of the manufacturing<br />

of the renewable energy component for the<br />

national programme.<br />

“WE AIM TO POSITION CAPE<br />

TOWN IN THE MINDS OF BOTH<br />

LOCAL AND INTERNATIONAL<br />

INVESTORS AS A GLOBALLY<br />

COMPETITIVE BUSINESS<br />

DESTINATION.”<br />

We’re also seeing investment into advanced<br />

manufacturing such as electronics. An example is<br />

Hisense, which is expanding its operations in Atlantis,<br />

and there’s an aerospace cluster in Somerset West<br />

where there are a number of companies that are<br />

producing satellites for the global market.<br />

So we are doing well in the knowledge economy,<br />

which is supported by the fact that we have four<br />

higher education institutions here. This is a key point<br />

for companies looking to invest as they know that<br />

we have the requisite skills base.<br />

<strong>Cape</strong> Town is also a place where people want<br />

to come and live, so companies know they’re not<br />

going to struggle to get people to come and work<br />

for them if they base themselves here.<br />

<strong>Cape</strong> Town is also the retail capital of South Africa,<br />

with many of the retail giants headquartered here,<br />

Shoprite being an example. This is a good base for<br />

companies that are looking to penetrate the African<br />

market, given our port infrastructure, and we also<br />

have the financial and legal companies to underpin<br />

and advance an African strategy.<br />

Are there any incentives that you offer<br />

to investors?<br />

We’re limited at local government level in terms of<br />

incentives we can offer, but we did pilot an incentive<br />

scheme in Atlantis that worked phenomenally<br />

well – the one financial incentive we were able to<br />

offer was a discount on electricity, and companies<br />

have taken that up, but actually the bigger incentive<br />

that we offer is in the efficient allocation of land.<br />

For example, a company looking to build a factory<br />

here was able to make an investment decision and<br />

within nine months buy the land from us, get all the<br />

approvals, get the building plans done, construct<br />

the factory and then open up their operation in a<br />

record time. That’s where the real incentive lies, a<br />

non-financial incentive – in our ability to fast-track<br />

administrative processes.<br />

And of course a Special Economic Zone for the<br />

clean-tech sector would offer a national incentive<br />

in terms of a lower tax rate, which is a big drawcard.<br />

How are you taking the message about<br />

<strong>Cape</strong> Town to the world?<br />

First, we’re having three months of structured engagements<br />

with key stakeholders and partners to<br />

see what they require to get the message out about<br />

<strong>Cape</strong> Town.<br />

Although we have initiated this campaign, we<br />

don’t see ourselves as owning it – we want people<br />

to be economic ambassadors for <strong>Cape</strong> Town, to<br />

engage with us as to the kind of materials that would<br />

be useful to them when they go out on a global<br />

mission. We will then craft the collateral for them<br />

to use.<br />

So it’s not just about us pushing out a message<br />

of the City of <strong>Cape</strong> Town, but about us empowering<br />

economic ambassadors for <strong>Cape</strong> Town and giving<br />

them the materials to enable them to sell a good<br />

story about <strong>Cape</strong> Town globally.<br />

39 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

Collaboration for<br />

growth<br />

CEO of Accelerate <strong>Cape</strong> Town, Ryan Ravens, explains how<br />

the organisation is engaging with a variety of role-players to<br />

shape growth in the city.<br />

Ryan Ravens<br />

BIOGRAPHY<br />

Ryan Ravens has extensive<br />

experience in leadership positions<br />

in the public and private<br />

sectors. Having served as the<br />

masterplan project manager for<br />

the FIFA 2010 World Cup, he<br />

was subsequently headhunted<br />

by the Gauteng Growth and Development<br />

Agency. His next role<br />

was CEO of a holding company<br />

that invested in numerous initiatives<br />

whereafter he joined Accelerate<br />

<strong>Cape</strong> Town. He holds<br />

three degrees including an MBA<br />

from UCT.<br />

How does Accelerate <strong>Cape</strong> Town differ from other<br />

business organisations in the region?<br />

Our model is very different to the chambers in that we represent or<br />

aim to represent some of the largest corporates and we are not looking<br />

to grow our membership massively. We keep our membership<br />

small because we want to have the big players and the people who<br />

can collectively shift the landscape, not people who are trying to use<br />

the platform for business development. Having a small number allows<br />

me to engage with them quite intimately, so I can have face-to-face<br />

interaction with the CEOs on a regular basis.<br />

We have 42 of the largest corporates as members, and we are<br />

aiming to reach 50. The four universities, two business schools and<br />

political leadership of the region are part of our network so it becomes<br />

an effective network that should be capable of shifting the landscape<br />

and driving the bigger game-changing projects in the region.<br />

Our independence is important; we don’t accept any money from<br />

government as that allows us to be an independent voice for the<br />

private sector.<br />

What are your key areas of activity?<br />

When you have limited resources you have to make tough choices<br />

as to what you can do, so we narrowed our focus to five key areas:<br />

Talent<br />

The first focus area is talent, specifically the transformation, attraction<br />

and retention of young black talent in the corporate environment.<br />

We found that companies have been spending a fortune to import<br />

black talent to the <strong>Cape</strong> but once their orientation programme ends<br />

and those people haven’t settled socially into the city and built social<br />

capital, they’re on a plane going back. We do inspiration sessions aimed<br />

at young leaders and young talent to help them build their personal<br />

networks in the region and meet their peers in other corporates in<br />

order to share experiences.<br />

In 2016 we extended that reach to senior professionals who’ve<br />

relocated to the <strong>Cape</strong>. Whether they’re foreign nationals or<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

40


INTERVIEW<br />

senior professionals from other parts of South<br />

Africa, they are struggling to settle into the city and<br />

they have similar issues except they have families. It<br />

has become quite challenging for many corporates,<br />

so we’ve launched what we call the “Welcome<br />

to <strong>Cape</strong> Town” initiative. This is less serious than<br />

our usual networking engagements because it’s<br />

geared more towards showcasing the food, wine<br />

and entertainment of the region, but ultimately<br />

it’s about helping them meet their peers and the<br />

feedback so far has been massively encouraging.<br />

It’s fine focusing on talent, but if we’re serious<br />

about transformation we also have to look<br />

at the HR practitioners. We have started the HR<br />

Practitioner Forum which brings together all the<br />

senior HR leadership from across these corporates<br />

to engage around specific issues. These include<br />

the unintended consequences of the new BEE<br />

codes and what that means, how they practically<br />

implement transformation in their organisation<br />

and best practices. There is an opportunity for<br />

sharing, so that adds value. We’ve tried to create<br />

linkages between our focus areas, so when we<br />

talk about the Atlantis SEZ, for example, there’s a<br />

tie-in with talent with respect to artisanal training<br />

and so on.<br />

WE DON’T ACCEPT ANY<br />

MONEY FROM GOVERNMENT<br />

AS THAT ALLOWS US TO BE<br />

AN INDEPENDENT VOICE FOR<br />

THE PRIVATE SECTOR.<br />

<strong>Business</strong> leadership<br />

The second focus area is business leadership, which<br />

has two components. The first is the activities we do<br />

with the leaders of these corporates which includes<br />

intimate engagements with people such as Christo<br />

Wiese, Simon Susman, etc, who act as mentors. We<br />

engage around specific topics, junk status and Brexit<br />

and the implications thereof. We invite people from<br />

the National Treasury or the major banks to participate<br />

and engage with the local CEOs.<br />

We also host dinners with the Premier and the<br />

Mayor, private events around one table so that CEOs<br />

can engage with them on issues that are impacting<br />

business in the region. This helps drive real working<br />

relationships between business and government<br />

not just talk shops and “protocol-observed”<br />

type events.<br />

In the second aspect of our business leadership<br />

focus, we started reaching out to the diplomatic<br />

corps by launching the Foreign Office Programme.<br />

We been quite selective and have focused on the<br />

Dutch, the Germans, the French and the English<br />

because they are all actively involved in assisting<br />

their corporates in this region. From the Asia<br />

Pacific region it’s Japan, China, India and the USA,<br />

and those eight represented our Foreign Office<br />

Programme for 2016.<br />

Connectedness<br />

Our third area of focus is connectedness and again<br />

there are two components. There’s physical connectedness<br />

and we are doing a series of engagements<br />

with Wesgro where we’re looking at issues<br />

of traffic congestion. For example, quite a number<br />

of members moving into the Waterfront are concerned<br />

about the level of traffic congestion and the<br />

way it is negatively impacting productivity. We are<br />

exploring different options but also looking at rail<br />

and freight logistics and the direct flights out of<br />

<strong>Cape</strong> Town to key economic destinations.<br />

Then there is virtual connectedness – the fibre<br />

optic broadband infrastructure, the wifi zones, etc.<br />

From a social development perspective, you want<br />

that infrastructure in the townships. Research<br />

has shown that a 10% increase in broadband<br />

connectivity results in a 1.3% increase in GDP<br />

growth. So the City decided to use its budget<br />

and grow the infrastructure and then they came<br />

to us and asked what the corporates could do<br />

with open access networks.<br />

Our corporates are very excited about it<br />

because with these wifi zone and fibre optic<br />

networks you have an opportunity to access<br />

communities that they had difficulty in reaching.<br />

41 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

Allied to this is the City of <strong>Cape</strong><br />

Town’s strategy to position <strong>Cape</strong><br />

Town as Africa’s first smart city.<br />

The City had a draft strategy for<br />

this but it wanted input from regional<br />

players. The tricky thing is<br />

they couldn’t go directly to specific<br />

corporates because that would<br />

have meant those corporates<br />

would have needed to be excluded<br />

from the procurement process.<br />

I suggested that they speak to us<br />

because we are not-for-profit and<br />

I could organise a workshop with<br />

various role-players.<br />

The first workshop was held<br />

at the new Deloitte Greenhouse<br />

facility and something amazing<br />

happened. As the City officials outlined various<br />

initiatives, the private sector representatives<br />

started putting up their hands and saying things<br />

like, “We already have a product that does that”, or<br />

“We were planning to do that in five years anyway<br />

based on our business strategy but now we know<br />

it’s needed we can fast-track it”. So, whereas you<br />

might have expected government to take the<br />

lead in certain initiatives and for the corporates<br />

to be gearing themselves up for the procurement,<br />

it became clear the private sector could take the<br />

lead now that they had the knowledge of where<br />

government was intending to go.<br />

We have now replicated that model for other key<br />

initiatives such as big data, which is relevant to the<br />

SKA project. One of the most interesting aspects of<br />

the Square Kilometre Array project is that the facility<br />

generates data at an absolutely unprecedented rate<br />

and we have facilitated some very fruitful discussions<br />

around associated opportunities.<br />

Innovation<br />

Allied to that is our fourth focus area, which is innovation.<br />

We’ve narrowed the focus specifically to<br />

academia and business, and have also created links<br />

with the Technology Innovation Agency (TIA). We<br />

are working specifically with the Technology Transfer<br />

Office (TTO) at each university. Each university has<br />

been mandated to establish a technology office<br />

The Thought Leaders sessions are popular with <strong>Cape</strong> Town<br />

businesspeople.<br />

where they house all the inventions, all the innovations<br />

and the spinout companies that come from<br />

the university environment.<br />

Commercialisation out of that incubation space<br />

into mainstream commerce is a challenge and that’s<br />

where the link with corporates becomes significant.<br />

The advanced manufacturing and technology<br />

that’s coming out of those TTOs has blown me away.<br />

They attract finance because they’re good products<br />

but what happens is, because it is headed by a sciences<br />

or engineering graduate, it flounders because<br />

there isn’t a depth of business experience.<br />

We initially approached our corporate network<br />

to find out if there were individuals who were willing<br />

to act as directors with a view to mentoring<br />

these young entrepreneurs and also to potentially<br />

buying an equity stake. What we discovered is that<br />

corporate managers are often governance focused,<br />

whereas what a start-up needs is to grow its market,<br />

to increase efficiency and product development,<br />

and to implement systems required for growth.<br />

Unfortunately, some of the corporate people were<br />

stifling the start-up with that mindset so we are going<br />

to develop a start-up mentorship course (an accredited<br />

standardised course) that seasoned professionals<br />

can take in order to help them understand start-ups.<br />

We are also having conversations with players<br />

in the e-learning space to drive effective e-learning<br />

initiatives in our region.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

42


INTERVIEW<br />

Welcome to <strong>Cape</strong> Town event, from left to right: CEO of Accelerate <strong>Cape</strong> Town Ryan Ravens, Katlego<br />

Letlonkane Associate, Employment Law, Cliffe Dekker Hofmeyr Inc and Savarion Arendse, Old Mutual.<br />

Sustainability<br />

Our last focus area is sustainability – food, water and<br />

energy security. The drought is obviously influencing<br />

food security so we have had people talking<br />

about innovative ways of managing water and<br />

innovative agricultural practices.<br />

Perhaps the most exciting programme in our<br />

sustainability focus area is the application that has<br />

been submitted to the dti to have Atlantis Green<br />

Technology Industrial Park designated as a Special<br />

Economic Zone.<br />

We can’t compete with the Chinese in terms of<br />

solar panel manufacturing and we don’t have the<br />

engineering skill and the artisans who can build<br />

related electrical engineering components. But what<br />

every solar panel needs is a steel mounting structure;<br />

what every electrical component needs is a steel<br />

casing and steel components.<br />

What we’ve been saying to Green <strong>Cape</strong> and provincial<br />

government is, make steel the local content<br />

component. You have all these big global traders<br />

rushing in because they get a massive tax break (15%<br />

versus the usual 29%). That is already a big pull factor,<br />

but then you compel them to use local steel. This is<br />

will improve prospects for our steel industry but also<br />

stimulate the market for artisans (although demand<br />

is already massive).<br />

The problem in South Africa is we simply haven’t<br />

produced enough artisans and recent studies<br />

have shown if we are to implement the National<br />

Development Plan and if we are to get our economy<br />

back on track we need 40-60% of school<br />

leavers doing artisanal training, but at the moment that<br />

number is 8%.<br />

We see this initiative in Atlantis as the optimal<br />

opportunity to establish more artisanal training in<br />

colleges. We want to grow the economy in a particular<br />

direction but it has to be inclusive; there’s no<br />

point in growing the economy in a direction that the<br />

mass population cannot participate in.<br />

As a result of our engagement with Airports<br />

Company South Africa there is a chance that a facility<br />

situated between Mitchells Plain, Khayelitsha and<br />

Philippi could become the location of an artisanal<br />

training college.<br />

These are some examples of our tangible and<br />

connected approach to growing the regional<br />

economy.<br />

www.acceleratecapetown.co.za<br />

43 WESTERN CAPE BUSINESS <strong>2017</strong>


SPECIAL FEATURE<br />

South African economy at a glance<br />

Insight into the performance of the South African economy is provided through these<br />

graphical representations of key statistics.<br />

ZIMBABWE<br />

NAMIBIA<br />

BOTSWANA<br />

Limpopo<br />

0.9% (7.1%)<br />

MOZAMBIQUE<br />

North West<br />

-3.6% (6.5%)<br />

Gauteng<br />

2.1%<br />

(34.3%)<br />

Mpumalanga<br />

2.7%<br />

(7.5%)<br />

SWAZI-<br />

LAND<br />

Northern <strong>Cape</strong><br />

2.8% (2.1%)<br />

Free State<br />

1.8%<br />

(5%)<br />

LESOTHO<br />

KwaZulu-<br />

Natal<br />

2.3%<br />

(16.1%)<br />

<strong>Western</strong> <strong>Cape</strong><br />

2.0% (13.6%)<br />

Eastern <strong>Cape</strong><br />

1.0% (7.6%)<br />

SA GDP: Percentage of growth per province (2014) and percentage<br />

contribution to national GDP (figures in brackets).<br />

SOURCE: STATS SA WWW.STATSSA.GOV.ZA<br />

PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND<br />

Eastern <strong>Cape</strong> Bhisho<br />

Phumulo<br />

Masualle<br />

6 916 200 168 966km 2 R289.9<br />

Free State Bloemfontein<br />

Elias Sekgobelo<br />

"Ace" Magashule<br />

2 817 900 129 825km 2 R189.1<br />

Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6<br />

KwaZulu-<br />

Natal<br />

Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1<br />

Limpopo Polokwane<br />

Stanley<br />

Mathabatha<br />

5 726 800 125 754km 2 R271.5<br />

Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2<br />

North West Mahikeng<br />

Supra<br />

Mahumapelo<br />

3 707 000 104 882km 2 R249.5<br />

Northern <strong>Cape</strong> Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Cape</strong> Town Helen Zille 6 200 100 129 462km ² R518.1<br />

Snapshot of South Africa’s provinces<br />

SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 44


SPECIAL FEATURE<br />

How South Africa’s economy performed in 2015. *<br />

* PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA<br />

SECTOR LP MP GP NW KZN FS NC EC WC<br />

Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5<br />

Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3<br />

Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8<br />

Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0<br />

Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3<br />

Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0<br />

Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1<br />

Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6<br />

Personal<br />

Services<br />

Government<br />

Services<br />

3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1<br />

16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2<br />

Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0<br />

Gross Domestic Product by province, percentage contribution.<br />

SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1<br />

45 WESTERN CAPE BUSINESS <strong>2017</strong>


SPECIAL FEATURE<br />

7%<br />

6%<br />

5%<br />

4%<br />

3%<br />

2%<br />

1%<br />

0<br />

2011 2012 2013 2014 2015 2016<br />

CPI (percentages from 2011 to 2016)<br />

PPI (percentages from 2011 to 2016)<br />

denotes data for September 2016 rather than the average for the full year.<br />

**<br />

Inflation rate 2011 to 2016<br />

SOURCE: WWW.STATSSA.GOV.ZA<br />

Mineral products 20.41%<br />

Precious metals 18.24%<br />

Vehicles, aircraft and vessels 12.57%<br />

Products iron and steel 12.02%<br />

Machinery 9.69%<br />

Chemicals 6.47%<br />

Vegetables (including fruit, nuts and cereals) 4.96%<br />

Prepared foodstuff (including beverages) 4.29%<br />

Plastic and rubber 2.11%<br />

Wood pulp and paper 1.92%<br />

South Africa’s top 10 export commodity categories: 2015<br />

SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA<br />

Machinery 25.02%<br />

Mineral products 16.12%<br />

Vehicles, aircraft and vessels 10.4%<br />

Chemicals 10.37%<br />

Equipment components 7.3%<br />

Products iron and steel 5.54%<br />

Plastic and rubber 4.13%<br />

Textiles 3.72%<br />

Prepared foodstuff (including beverages) 2.93%<br />

Photographic, medical equipment 2.71%<br />

South Africa’s top 10 import commodity categories: 2015<br />

SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

46


Nedbank Corporate and<br />

Investment Banking<br />

FOCUS<br />

Nedbank is banking on relationships with corporate clients.<br />

Nedbank Corporate and Investment Banking provides expert<br />

banking services, funding and transactional banking capabilities<br />

to corporate clients. Its solutions are customised to<br />

suit the needs of each client and the division is committed<br />

to providing excellent client service – a commitment that is confirmed<br />

by the high ratings consistently provided by client surveys.<br />

“We are a relationship-driven business, focused on JSE-listed companies,<br />

large unlisted companies, branches or subsidiaries of inbound<br />

multinational entities and public sector entities at national, provincial<br />

and local government level. The Coastal region incorporates the<br />

Durban and <strong>Cape</strong> Town offices, with clients from Saldanha Bay in<br />

the west to Richards Bay in the east,” says Alistair Pearce, Divisional<br />

Executive of Nedbank Corporate and Investment Banking. “In the<br />

<strong>Cape</strong>, we have two offices and focus mainly on the life assurance,<br />

retail, media, asset management and oil industries, the consumer<br />

goods and food sectors, and the public sector – the latter being a<br />

sector we’re targeting for substantial growth.”<br />

What we do differently<br />

The division provides a differentiated client value proposition, based on<br />

established relationships and an in-depth understanding of its clients’<br />

businesses and the industries in which they operate. It provides a fullservice<br />

wholesale banking offering – including lending, deposit-taking,<br />

transactional banking, global trade services and asset finance – by way<br />

of dedicated corporate bankers who are primarily responsible for dealing<br />

with corporate clients.<br />

Specific solutions<br />

The division provides a variety of funding solutions amounting to<br />

between R50-million and several billion rand from short-term and<br />

working capital facilities, trade finance and letters of credit and<br />

guarantees, to vanilla and complex term debt structures by way of<br />

bilateral, club and syndicated transactions, the issuance of corporate<br />

paper and other debt instruments. Leveraged buyouts (LBOs)<br />

and management buyouts (MBOs) are also funded, with Nedbank<br />

Corporate and Investment Banking acting as lead arranger, coarranger<br />

or facility agent.<br />

Transactional banking offers<br />

full-spectrum domestic-clearing<br />

bank services, including current<br />

accounts, cash management and<br />

electronic banking, through its<br />

scalable Internet-based NetBank<br />

<strong>Business</strong> system, its high-volume<br />

host-to-host platform, Corporate<br />

Payments System, and a full range<br />

of cross-border and international<br />

transactions. The deposit-taking<br />

franchise is strong, with a range of<br />

tenor-linked investment offerings<br />

paying interest rates, linked to a<br />

range of instruments.<br />

Commitment to the<br />

community<br />

“As part of the Nedbank Group,<br />

we are committed to making a<br />

difference in the community in<br />

which we operate and, through<br />

the Nedbank Foundation, contribute<br />

to a number of educational<br />

causes. We are especially proud<br />

of our <strong>Western</strong> <strong>Cape</strong> essay writing<br />

competition in partnership with<br />

the <strong>Western</strong> <strong>Cape</strong> Government”.<br />

For more information on Nedbank<br />

Corporate and Investment<br />

Banking contact Alistair Pearce,<br />

Divisional Executive on tel:<br />

+27 21 416 6825 or email:<br />

alistairp@nedbank.co.za<br />

47<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

Nedbank <strong>Business</strong> Banking:<br />

Making it easier to<br />

do business<br />

<strong>Business</strong> customers benefit from Nedbank’s relationship-based banking model.<br />

Great news for <strong>Cape</strong> business owners and entrepreneurs seeking<br />

a unique banking experience: Nedbank <strong>Business</strong> Banking<br />

has over 80 business managers located across the <strong>Western</strong><br />

<strong>Cape</strong> who are ready to assist you with professional advice<br />

and industry-specific solutions.<br />

“At Nedbank <strong>Business</strong> Banking we believe that you need a financial<br />

partner who not only understands your circumstances and aspirations,<br />

but can also provide you with relevant solutions and a banking experience<br />

that is hassle-free, allowing you to concentrate on the running of<br />

your business,” says Goolam Kader, Nedbank <strong>Business</strong> Banking’s Divisional<br />

Executive for the <strong>Western</strong> <strong>Cape</strong>.<br />

At the core of the bank’s offering is a relationship-based model, with<br />

a business manager dedicated to your business as the key entry point<br />

into the bank. Each business manager is part of a client services team,<br />

additional members being a credit manager, credit analyst and services<br />

manager, all of whom have a genuine interest in the success of each<br />

individual business. “When you do business with us, you are speaking to<br />

people who know the area and are familiar with the various industries<br />

operating here,” explains Kader.<br />

Kader adds that Nedbank is constantly innovating and these principles<br />

are further embedded in our first-to-market approach with the launch of<br />

Whole-View <strong>Business</strong> Banking, which emphasises that by partnering with<br />

us, we are able to provide a holistic view of the client`s entire business.<br />

This will have substantial benefits to our clients, including leveraging<br />

skills and resources across the bank; better business, transactional and<br />

cash flow solutions; better understanding of our client`s liquidity risk and<br />

associated costs as well as improved overall pricing.<br />

An added benefit of banking your business with Nedbank <strong>Business</strong><br />

Banking is that your business and your personal financial needs as well<br />

as that of your employees can be managed in one place.<br />

“Very often business owners and their businesses are financially dependent<br />

on each other. Our client service teams now also offer individual<br />

banking solutions, better advice and a hassle-free service to you and<br />

Goolam Kader,<br />

Nedbank <strong>Business</strong> Banking<br />

Divisional Executive,<br />

<strong>Western</strong> <strong>Cape</strong><br />

your staff as we already know and<br />

understand your needs,” explains<br />

Kader.<br />

With this in mind, Nedbank<br />

introduced Nedbank@Work – a<br />

unique service to employees<br />

of companies who bank with<br />

Nedbank. The service facilitates<br />

convenient banking at the workplace<br />

through bankers or consultants<br />

on site, in the branch or via our<br />

call centre and internet channels.<br />

In addition, Nedbank@Work offers<br />

non-financial support to you and<br />

your employees free of charge.<br />

For more information call Goolam<br />

Kader on +27 21 928 2000 or<br />

email goolamk@nedbank.co.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 48


Nedbank Retail Banking:<br />

Making banking<br />

accessible to all<br />

FOCUS<br />

Nedbank intends working with communities to make banking services more accessible.<br />

Our clients are engaged by skilled, enabled and productive<br />

staff who, through meaningful conversations, ensure we<br />

deliver our clients’ needs and aspirations. As a bank for all,<br />

Nedbank realises that communities and their representatives<br />

are key stakeholders in our bank for all strategy. As such, the bank’s<br />

strong relations with government, organised business and communities<br />

remain a key focus in growing its client base of over seven-million.<br />

Our presence in the <strong>Western</strong> <strong>Cape</strong> community goes a long way<br />

in allowing for greater financial inclusion while contributing to social<br />

upliftment and economic development.<br />

Nedbank continues to grow its distribution presence across South<br />

Africa, including the <strong>Western</strong> <strong>Cape</strong> as the fastest-growing province.<br />

This enables us to provide accessible banking to all South Africans.<br />

We continue to invest in our frontline staff that operate across 95 traditional<br />

branches, eight relationship centres and seven personal loan<br />

centres. Nedbank has embarked on a distribution strategy to convert<br />

all traditional branches to “Branch(es) of the Future”.<br />

Branches of the Future are equipped and enabled with world-class<br />

technology to create a great place to bank for our clients and a great<br />

place to work for our staff. We currently have 25 “Branch of the Future”<br />

stores in the <strong>Western</strong> <strong>Cape</strong>. To make banking more convenient, we<br />

currently have eight branches that operate and trade on a Sunday. For<br />

further convenience to our clients, we have also increased our ATM<br />

distribution to 606 and Intelligent Depositors to 127 in the province.<br />

Nedbank’s client-centred approach has seen the bank intensify<br />

its efforts in delivering a distinctive client experience through innovation.<br />

The introduction of the award-winning Nedbank App Suite<br />

is evidence of the bank’s progress and its understanding of client<br />

needs. The App Suite serves as a virtual extension of our distribution<br />

network operating from the palm of your hands. “It makes it easy for<br />

clients to do their banking securely – from anywhere, anytime,” says<br />

Sharon Smith: Regional General Manager of <strong>Western</strong> <strong>Cape</strong> Branch<br />

Networks at Nedbank.<br />

“Our offering in <strong>Western</strong> <strong>Cape</strong> Retail extends to Small <strong>Business</strong><br />

and Professional Banking. We believe that small business is a critical<br />

segment of our economy and plays a key role in job creation. To<br />

Sharon Smith, Nedbank<br />

Regional General Manager<br />

Branch Networks<br />

support small businesses we have<br />

dedicated relationship managers,<br />

either in branch or in relationship<br />

centres for every small business<br />

account holder. We have a website<br />

called ‘simplyBiz.co.za’ that<br />

serves as a networking platform<br />

for small business owners and<br />

provides ongoing support in<br />

numerous aspects of business.<br />

We also have a fully integrated<br />

electronic banking application<br />

that incorporates payroll, as well<br />

as accounting, all accessible via a<br />

single platform,” Smith adds.<br />

For more information about our<br />

Nedbank Retail Banking offering<br />

please call Sharon Smith on<br />

+27 21 928 2000 or send an email<br />

to sharonsmi@nedbank.co.za<br />

49<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

Accessible<br />

onsite banking<br />

Nedbank is happy to help its clients learn<br />

to better manage their money.<br />

Nedbank@Work aims to make a difference in the communities<br />

in which we operate through financial wellness education<br />

for all employees in both the private sector and government.<br />

This is done through tailored financial fitness and consumer<br />

education training. Our continuous involvement in corporate social<br />

programmes in communities throughout the <strong>Western</strong> <strong>Cape</strong> also<br />

supports growth and development.<br />

How Nedbank@Work works for you, the employee<br />

It’s hard to focus on anything if you are having personal financial challenges<br />

like needing a personal loan, providing for school or university<br />

fees, or for unexpected costs like funerals.<br />

Unfortunately, dealing with a lot of these worrying financial issues<br />

takes time and energy, and more often than not they can only be<br />

sorted out during office hours, when you don’t have time.<br />

That’s where Nedbank@Work comes in:<br />

Nedbank@Work makes convenient banking at your workplace possible.<br />

But, we offer more than just the convenience of having a relationship<br />

banker on site to open accounts and address queries; we also help<br />

you understand your financial position and work with you on a plan<br />

to reach financial fitness.<br />

What are the benefits of Nedbank@Work?<br />

• You have access to a dedicated sales consultant, whose role is to<br />

establish convenience and ensure the best service delivery for all<br />

employees.<br />

• Our financial fitness and consumer education training provides you<br />

with the services and expert advice you need to help you better<br />

manage your personal finances, make provision for unexpected<br />

circumstances, provide for<br />

your children’s education, etc.<br />

• The Financial Fitness Trainer<br />

will also be able to assist you<br />

when it comes to improving<br />

your credit ratings and managing<br />

your budget.<br />

• You also get great-vaue<br />

banking products as well as<br />

immediate access to your<br />

salary if your company banks<br />

with Nedbank.<br />

• Peace of mind as a result of<br />

financial well-being.<br />

• We’re continuously there on<br />

site, making it that much easier<br />

to access and expand on and/<br />

or enhance your existing suite<br />

of banking products.<br />

• And because we bring the<br />

bank to your workplace, you<br />

don’t have to waste your<br />

lunchtime by going to the<br />

bank to wait in long queues.<br />

Any company or government<br />

department interested in offering<br />

the Nedbank@Work value to<br />

their employees can contact the<br />

Area Manager, Shamima Nazeer<br />

on +27 21 412 3478 or email<br />

ShamimaN@nedbank.co.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 50


Make the most of your<br />

money with our local and<br />

international expertise<br />

At Nedbank Financial Planning and Nedbank Private Wealth<br />

we care about your financial security and goals.<br />

FOCUS<br />

This means ensuring that you have a plan to cater for your<br />

circumstances as your needs evolve and change. We provide<br />

clients with holistic financial planning and a range of services<br />

to support this. As our client, you can build wealth by aligning<br />

your decisions with your deepest values and highest aspirations.<br />

We offer financial advice that is customised to each client’s needs.<br />

For some clients, this is about establishing a financial plan, and for<br />

others it may be about customised international estate planning<br />

structures and intergenerational wealth transfers.<br />

Based on your needs and circumstances, a Nedbank Financial<br />

Planner or a dedicated Wealth Manager can help you make the<br />

most of your money. To become a Nedbank Private Wealth client,<br />

you need to earn at least R1.5-million per year and/or have R5-million<br />

of investable assets. But if you don’t yet qualify, you can still benefit<br />

from our specialist expertise through Nedbank Financial Planning.<br />

We are here to help put a plan in place to grow your money to<br />

achieve your financial aspirations.<br />

Your Nedbank Financial<br />

Planner and Nedbank Private<br />

Wealth Manager have access to<br />

specialist teams who can help<br />

you:<br />

• Structure sound estate and<br />

succession plans to protect<br />

your own interests and the<br />

interest of your family<br />

• Grow your money by investing<br />

in a range of top local and<br />

offshore investments, including<br />

using our specialist stockbroking<br />

service<br />

• Protect your personal and<br />

business assets against life’s<br />

uncertainties through shortand<br />

long-term insurance solutions<br />

• Access your money whenever<br />

and wherever it suits you<br />

through a full range of local<br />

and international banking<br />

services available through a<br />

single point of contact;<br />

• Give your wealth a life beyond<br />

yours by leaving a legacy with<br />

our philanthropy services<br />

Contact Nedbank Financial<br />

Planning on 0861 238 887 or<br />

contact Nedbank Private Wealth<br />

on 0860 111 263.<br />

Visit www.nedbank.co.za.<br />

51<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

Old Mutual’s<br />

Provincial Management Board<br />

Old Mutual’s Provincial Management Board (PMB) was created to enable positive futures<br />

through collaboration at all levels of the organisation.<br />

What are the Provincial<br />

Management Boards?<br />

Each province in South Africa<br />

has a board that is served by an<br />

Old Mutual Exco member and<br />

representatives from the business<br />

units, including Corporate, Retail<br />

Affluent, Retail Mass, Old Mutual<br />

Investment Group, Mutual & Federal<br />

and Nedbank.<br />

What is their objective?<br />

The boards were established in order<br />

to drive priorities and performance<br />

in the regions. Our key objective is to promote<br />

collaboration and efficiency by aligning projects,<br />

decisions and resources of the different business<br />

units in the regions. This is to help Old Mutual<br />

South Africa (OMSA) execute its strategy in the<br />

regions with greater effectiveness.<br />

The boards enable us to maximise synergies and<br />

cross-fertilisation between the different businesses<br />

in the regions and allow us to approach customers<br />

and the communities we serve as one green group.<br />

They also play an important role in building our<br />

brand and reputation:<br />

How do they benefit the communities you<br />

operate in?<br />

Through the relationships they manage, the<br />

Provincial Management Boards play a key role<br />

in positively impacting South Africa’s socioeconomic<br />

development in the regions.<br />

It is key to our corporate culture that we strive<br />

to improve the lives of people and uplift the<br />

communities we serve, and we believe that this<br />

helps to keep the OMSA fortress strong.<br />

Savarion Arendse,<br />

Provincial<br />

Management Board<br />

Chairman<br />

We also fully support the National<br />

Development Plan (NDP) as, for us, the<br />

fundamental objectives of the Plan<br />

(reducing poverty, unemployment<br />

and inequality) can best be achieved<br />

through forging healthy public and<br />

private partnerships.<br />

How important is networking<br />

in order to achieve the Board’s<br />

objectives?<br />

We believe strongly in the importance of<br />

networking. Senior members of OMSA<br />

as well as the Old Mutual Investment<br />

Group go on roadshows across South Africa a couple<br />

of times a year to visit various regions and meet with<br />

Provincial Management Boards, key stakeholders<br />

and employees.<br />

The main objective is to build strong relationships and<br />

networks, and then to share these insights and updates<br />

with our colleagues throughout the Old Mutual group.<br />

Who makes up the PMB membership and<br />

what are their roles and responsibilities?<br />

The PMB comprises senior leadership of each<br />

business unit represented in the province, in addition<br />

to senior leadership (regional managers) for Nedbank<br />

and Mutual & Federal, as well as the OMSA Exco.<br />

The roles and responsibilities of the PMB<br />

chairperson is as follows:<br />

• Fostering collaboration.<br />

• Removing obstacles to the PMB’s successful<br />

delivery, adoption and use.<br />

• Maintaining at all times the focus of the PMBs<br />

on the agreed scope, outcomes and benefits.<br />

• Monitoring and managing the factors outside<br />

the PMB’s control that are critical to its success.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

52


Old Mutual SuperFund –<br />

A Comprehensive Retirement<br />

Solution<br />

FOCUS<br />

Old Mutual Corporate has developed a flexible and dynamic retirement savings umbrella<br />

fund that offers substantial employee benefits – at the same time helping the company to<br />

grow their appeal as an employer of choice.<br />

Help your employees save for retirement<br />

Every business in SA needs to incentivise and enable<br />

its employees to save for their future – not only for<br />

the wellbeing of those employees, but also to help<br />

South Africa build a savings culture.<br />

By making employee benefits more accessible,<br />

flexible and affordable than ever before, Old Mutual<br />

SuperFund offers a simple way for businesses to help<br />

their employees save for retirement.<br />

Old Mutual SuperFund is as unique as your company,<br />

and delivers exactly the right solution, at the<br />

right price, tailored to the needs of your business and<br />

its employees – regardless of the size or diversity of<br />

your workforce.<br />

It does this by means of three simple, distinct and<br />

highly effective retirement funding and risk cover<br />

solutions, each with its own, flexible level of member<br />

and employer choice.<br />

As a result, Old Mutual SuperFund has made<br />

employee benefits a reality for businesses of every<br />

shape and size across South Africa. And it can do the<br />

same for your business.<br />

Why should you invest in employee<br />

b e n e fi t s<br />

Offering employee benefits unlocks significant<br />

competitive advantages, not least of which is an<br />

enhanced appeal as an employer of choice, so you<br />

can compete effectively for the best talent.<br />

• Adapts to the<br />

changing needs of<br />

your business;<br />

• Integrates seamlessly<br />

into your business<br />

and payroll processes;<br />

• Has simple eligibility<br />

requirements to<br />

maximize employee<br />

access;<br />

• Offers transparent,<br />

simple and affordable<br />

fees*;<br />

Clint Beech,<br />

Regional Sales<br />

Manager<br />

• Uses a risk-free authorised collection payment<br />

processes; and<br />

• Comes with dedicated, professional support.<br />

For more information on Old Mutual SuperFund<br />

visit www.oldmutual.co.za/superfund or speak<br />

to your financial adviser.<br />

* When comparing employee benefits costs with that of<br />

our competitors, be sure to consider all the fees involved,<br />

including those for investment management, advice,<br />

and administration.<br />

And when your employee benefits are delivered<br />

through Old Mutual SuperFund, the benefits are<br />

compounded because the solution:<br />

53<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

A passion for people<br />

Old Mutual’s success as a trusted investment, savings, insurance and banking group<br />

since 1845 has been built on financial acumen and dedication. Another critical aspect of<br />

the Old Mutual business is the passion for the communities we serve, says Helene Africa,<br />

Provincial Manager at Old Mutual.<br />

How did the Mass Foundation Cluster<br />

come into being?<br />

Old Mutual is 170 years old but the Mass Foundation<br />

Cluster started 40 years ago, primarily because we<br />

identified a need in the middle-income market for<br />

our products. Employers also asked for something<br />

for their clients who were not in the high-income<br />

bracket, such as a simple funeral product or even a<br />

basic savings or retirement product.<br />

As our clients evolved and our initial client basket<br />

of two products became increasingly bigger until<br />

we had a whole basket of products, even down to<br />

education. We try to listen to our clients and help<br />

them to progress with their financial life as their<br />

needs change.<br />

Today the Cluster includes the short-term<br />

insurance product iWYZE through to financial<br />

support products such as loans, consolidation<br />

products and any financial need a client might have.<br />

In the past clients would have to go to a competitor<br />

for assistance with a loan and then other financial<br />

products as their needs changed, so we realised<br />

that we needed to look at a client’s financial needs<br />

from a wider perspective to be able to retain them<br />

as clients and also to accommodate their growing<br />

needs. We operate through four divisions:<br />

• Foundation <strong>Business</strong> Unit<br />

• Retail Mass <strong>Business</strong> Unit<br />

• Old Mutual Finance <strong>Business</strong> Unit<br />

• iWYZE<br />

However, our focus and vision continues to be centred<br />

around our clients as we aim to be their most<br />

trusted partner. As our customers are at the hub of<br />

our business we constantly look at ways of earning<br />

and building on their trust by delivering on time and<br />

delivering value-for-money prodicts.<br />

In what ways<br />

has your business<br />

adapted to<br />

suit your clients<br />

changing needs?<br />

We launched new<br />

technology aimed<br />

at improving service<br />

to our customers, as<br />

we moved from a<br />

manual environment<br />

to paperless and<br />

Helene Africa,<br />

Provincial Manager<br />

harnessing the power of technology. All our<br />

advisers are now equipped with laptops and<br />

they run everything through this, instead of<br />

paper. Information is now captured from point<br />

of sale in order to reduce errors and to prevent<br />

a paper application from being lost. It has been<br />

a big innovative move and shift for us but it was<br />

essential as young people in particular want to do<br />

things online without face-to-face interaction, so<br />

it’s important to satisfy that need. This came about<br />

because we always listen to what our clients want.<br />

We are also constantly researching the digital<br />

environment and what our future client is going<br />

to look like.<br />

What are some of the challenges you face<br />

in doing your business?<br />

Insurance is not a product that sells itself, and clients<br />

don’t come knocking on your door. You have to go<br />

out and create awareness about why these products<br />

are important for them to consider.<br />

The middle-income segment don’t necessarily<br />

have lots of disposable income to cover<br />

the costs related to death in a family or a serious<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

54


FOCUS<br />

injury or illness, so the need to have insurance is<br />

definitely out there. However, there is a big<br />

educational need, which is why we went on a<br />

journey with our Financial Education which offers<br />

the public information on money management<br />

as well as financial workshops, and also employ<br />

facilitators to train communities, clients or stakeholders.<br />

Even if we don’t bring any business from these<br />

workshops and initiatives, they have a wider<br />

micro economic benefit, and this impacts on the<br />

macro economy, so we see it as an important project.<br />

However, once you start speaking to people it’s a<br />

whole new world and they suddenly realise they have<br />

been wasting money for a long time that could easily<br />

have been used to protect or build their financial life.<br />

It’s important to us to help people who aren’t earning<br />

much to realise their dreams and to reach their goals.<br />

What we aim to bring to the attention of our clients<br />

is the fact that, when it comes to your finances, if you<br />

make a mistake you won’t pay for it now – instead you<br />

really pay for it in 10 to 15 years time. Unfortunately a<br />

lot of people wake up too late and suffer financially.<br />

This is also why it’s critical to get out there to the<br />

young workforce in particular, because if we can<br />

help people to start out with the right decisions and<br />

products from the start of their career it will make a<br />

tremendous difference to their financial future.<br />

effort to work in and create opportunities to give<br />

back through staff volunteering. Staff who want<br />

to participate can choose if they want to give of<br />

their time, or they can give from their paycheck. To<br />

honour their contribution, Old Mutual then matches<br />

that amount at the end of the year and distributes it<br />

to the relevant communities.<br />

We also make funds available for our staff<br />

members who have been working on community<br />

projects. This is our Staff Volunteerism programme<br />

where Old Mutual will donate up to R20 000 to a<br />

project if our staff are supporting it with their time.<br />

This obviously gives back to the community, but it<br />

also allows Old Mutual to honour and support our<br />

staff who give of their time through a meaningful<br />

cash donation.<br />

What is different about how you do your<br />

business?<br />

With our Mass <strong>Business</strong> unit we pay our advisers<br />

salaries, not commission. We find that salaried<br />

staff are better able to offer the correct service<br />

to the public and that distinguishes them from<br />

commission earners who are, perhaps understandably,<br />

motivated by their commission. By paying them a<br />

salary we believe it allows them to really look after the<br />

client and to build trust as a financial adviser, not<br />

just a sales person. Our advisers are then better able<br />

to sell a client what they need and what they can<br />

afford, not what the salesperson wants in terms of<br />

their commission.<br />

Our aim is to provide that really good service<br />

because then we start to build a good relationship<br />

with the client and they will then hopefully want<br />

to seek our advice for their other future needs. We<br />

see it as really caring for their wellbeing and then<br />

going on a journey with the client, and by seeing<br />

them as a person.<br />

We’re also very passionate about our people -<br />

our clients and our staff – and if you walk into our<br />

business you will get the sense for how they care.<br />

That spirit has really helped to make us successful.<br />

How else does Old Mutual give back to the<br />

community?<br />

We are passionate about giving back to the<br />

communities in which we work, so we make an<br />

55<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

Old Mutual’s debt consolidation<br />

Old Mutual Finance has developed a unique plan to help clients who are battling to<br />

survive financially to consolidate their debt and save thousands of rands on initiation fees<br />

and administration charges – helping clients to manage their finances in a smart way.<br />

What makes our lending business<br />

different?<br />

At Old Mutual Finance, we have a deep rooted<br />

respect for our customers, for their circumstances,<br />

needs and culture. It drives us to treat customers<br />

with dignity, provide outstanding service and to do<br />

our utmost to provide the best financial solutions.<br />

Old Mutual is known as the savings and<br />

assurance powerhouse of South Africa. We also<br />

recognise that lending is a reality for most people.<br />

Generally lending and savings are seen as conflicting<br />

needs and offerings. Old Mutual Finance therefore<br />

takes an holistic view of customers’ savings, risk and<br />

lending needs by providing a balanced basket of<br />

products that meet these needs.<br />

What are our lending principles?<br />

• Affordability is the cornerstone of our lending.<br />

Debt is often seen as bad. However, if used<br />

responsibly and prudently, debt can open many<br />

doors and opportunities for customers – think<br />

about loans for education, home extensions etc.<br />

It is therefore vital that customers understand their<br />

repayment obligation and be able to afford the<br />

loan instalments over the period of the loan.<br />

• Financial education.<br />

The financial services industry is complex and<br />

financial terms can be equally confusing. During the<br />

loan application process our Financial Consultants<br />

provide basic financial education to this end.<br />

• Spending time.<br />

We prefer spending more time with customers<br />

to ensure that they understand the loan process<br />

and take their obligations under the agreements<br />

seriously. Applying for a loan shouldn’t be as easy as<br />

“buying a loaf of bread”.<br />

Old Mutual Finance<br />

has opened more than<br />

250 new retail branches<br />

conveniently located in<br />

shopping centres, CBD’s<br />

and near transport nodes,<br />

offering lending, transactional<br />

banking, insurance<br />

sales and client servicing.<br />

Each client receives a<br />

free copy of their Experian<br />

credit bureau profile as<br />

part of our consultation,<br />

along with guidance<br />

Buyisile Keli,<br />

Senior Provincial<br />

Manager at Old<br />

Mutual Finance<br />

on what to do if certain of their bureau information is<br />

incorrect. As part of our ongoing commitment to<br />

financial education, clients are also informed about what<br />

kinds of behaviour can improve their credit records.<br />

Do the smart thing and contact your nearest Old<br />

Mutual Finance Branch, and get your plan to financial<br />

freedom.<br />

Visit www.oldmutualfinance.co.za<br />

to find your nearest branch or call us on<br />

086 000 0886<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

56


Advice that matters<br />

FOCUS<br />

Old Mutual has a dedicated team of advisers who are trained and accredited to offer you<br />

expert advice backed by the experience of Old Mutual’s investment professionals.<br />

You know the value of advice in your respective<br />

field of expertise. At Old Mutual, we are not<br />

business specialists, but we do know a lot about<br />

financial planning.<br />

We have a team of financial advisers who can give<br />

you the right advice at the right time and create<br />

financial security for you, your business and your<br />

family. A personal financial adviser will meet with<br />

you at your convenience, get to know you and<br />

keep abreast of changes in your life and business,<br />

in order to ensure your financial plan stays aligned.<br />

Old Mutual provides financial advice for middleand<br />

high-income customers through our<br />

focus on our long-term savings, investment and<br />

protection of business. We do this by delivering on<br />

our promise to be every customer’s most trusted<br />

financial partner, helping them to achieve their<br />

lifetime goals.<br />

We also believe true wealth is about more than<br />

just how much money you have. It is about<br />

being able to live the life you want. Our wealth<br />

OLD MUTUAL PERSONAL FINANCIAL<br />

ADVISERS<br />

• Undergo mandatory Financial Advisory and<br />

Intermediary Services (FAIS) compliance.<br />

• Complete extensive training.<br />

• Have access to in-house resources including<br />

specialist advice on legal and tax issues.<br />

• Have access to research and advanced<br />

financial needs analysis and planning software.<br />

management business<br />

has a comprehensive<br />

offering tailored to<br />

meet the needs of high<br />

net-worth individuals<br />

through personalised<br />

financial service to every<br />

customer.<br />

We build on our<br />

heritage of trust<br />

and accountability to<br />

help our customers<br />

thrive by enabling<br />

them to achieve their<br />

Barend van der<br />

Westhuizen,<br />

Regional General<br />

Manager, PFA<br />

<strong>Western</strong> <strong>Cape</strong><br />

financial goals. Our team of financial experts offer<br />

you peace of mind in partnering with a company<br />

with a track record of looking after our customers.<br />

For more than 170 years, Old Mutual has been meeting<br />

the diverse financial needs of millions of South<br />

Africans. Let us do it for you as well.<br />

Physical address: Carl Cronje Drive, Southgate<br />

Office Park, 2nd Floor, Tyger Waterfront,<br />

Bellville 7530.<br />

Email: bvanderwesthuizen@oldmutual.com<br />

Telephone: 021-974 8607 (office)<br />

57<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


Special Economic Zones are<br />

boosting growth on the West Coast<br />

Dedicated development hubs on the West Coast are tapping into the potential of two of<br />

the fastest-growing economic sectors in Southern Africa – oil and gas and manufacturing<br />

for the renewable energy sector.<br />

The Department of Trade and Industry (dti) is the<br />

lead agent in the creation of Special Economic<br />

Zones (SEZs), which are part of the national<br />

Industrial Policy Action Plan (IPAP). SEZs are designed<br />

to attract investment, create jobs and boost<br />

exports. Industrial Development Zones (IDZs) are<br />

a type of SEZ.<br />

Several incentives are available to investors in<br />

SEZs. These include tax breaks from the South<br />

African Revenue Service (SARS), subsidised interest<br />

rates from the Industrial Development Corporation<br />

(IDC), subsidies for employees earning below a<br />

certain level and subsidies for the training of the<br />

workforce, incentives and grants from the dti, and<br />

incentives from national electricity utility Eskom.<br />

Other benefits might include a building allowance,<br />

employment incentives and the fact that an SEZ is<br />

a customs-controlled area. Skills transfer is another<br />

stated aim behind the SEZ programme.<br />

Specific incentives relating to energy savings<br />

and reductions in environmental impact are available,<br />

both from Eskom and the dti. Within the dti’s<br />

Manufacturing Competitiveness Enhancement<br />

Programme there is a Green Energy Efficiency Fund,<br />

all of which are designed to make investment – of<br />

the right kind – more attractive.<br />

Atlantis<br />

The suburb of Atlantis was one of apartheid’s bad<br />

experiments that left residents stranded far north<br />

of the metropolis with no industry or employment<br />

to speak of. The planned creation of an SEZ with<br />

a focus on green technology is already changing<br />

that reality. The SEZ is a collaboration between the<br />

<strong>Western</strong> <strong>Cape</strong> Provincial Government (whose unit<br />

Green<strong>Cape</strong> is taking the lead), the City of <strong>Cape</strong> Town<br />

and the dti.<br />

Although the SEZ has not officially been established,<br />

several important investments have been<br />

made into the area and the idea is gaining traction.<br />

Spanish wind-tower manufacturer Gestamp<br />

Renewable Industries (GRI) has added to its initial<br />

investment of R300-million, which created 200<br />

jobs. Others include Resolux (R25-million), which<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

58


SPECIAL FEATURE<br />

makes internal components of<br />

wind turbines; Kaytech (a geotextiles<br />

firm) which has recently<br />

expanded (R130-million), as has<br />

Skyward Windows (double glazing,<br />

R50-million). All told, there<br />

has been about R680-million<br />

invested Atlantis in the green<br />

technology field.<br />

Chinese giant Hisense established<br />

a high-tech factory in Atlantis<br />

in 2013, and is keen to expand its<br />

investment down the value chain,<br />

especially using green technology<br />

to make more efficient fridges and<br />

television sets.<br />

The proposed Atlantis Green<br />

Tech SEZ has several particular incentives<br />

available. These include:<br />

• Financial measures including<br />

an electricity tariff subsidy<br />

• Exemption from land-use<br />

application fees<br />

• Assistance from the City of<br />

<strong>Cape</strong><br />

• Town for companies to obtain faster environmental<br />

authorisation from the<br />

Department of Environmental Affairs and<br />

Development Planning<br />

The state (through the dti) is likely to pass legislation<br />

that requires developers to increase the level of local<br />

content on the solar panels or wind turbines that are<br />

used in renewable energy projects. Any movement<br />

in this sphere could benefit Atlantis.<br />

Saldanha Bay<br />

The Saldanha Bay Industrial Development Zone<br />

(SBIDZ) has formally been in existence since 2013<br />

and has ambitious plans to tap further into the<br />

burgeoning oil rig maintenance and repair business.<br />

About 130 rigs round the <strong>Cape</strong> every year, and at the<br />

moment South Africa attracts only a tiny fraction<br />

of them to its ports.<br />

The SBIDZ fits neatly into two over-arching<br />

visions: Operation Phakisa (the national<br />

government’s strategy to unlock value from the<br />

“Oceans Economy”) and Project Khulisa, the targeted<br />

growth strategy of the <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government, which includes servicing and repairing<br />

of oil rigs as a priority. South Africa currently<br />

accounts for 1% of the global market of ship repair<br />

and refurbishment.<br />

Priority sectors at Saldanha are upstream oil<br />

and gas and marine engineering and services, and<br />

32 companies have already signed non-disclosure<br />

agreements as investors in the IDZ. The IDZ is run<br />

by the SBIDZ-Licencing Company, which works together<br />

with the Transnet National Ports Authority<br />

(TNPA) on many joint projects.<br />

These are being undertaken to create good conditions<br />

for possible investors. Quay-side infrastructure<br />

has been upgraded including a wastewater<br />

treatment plant and a new road and bridge over<br />

the MR559. Fencing and access control points in<br />

support of the customs zone are being constructed.<br />

Three major projects are under way or in the planning<br />

stage and are overseen by national government,<br />

the Southern African Oil and Gas Alliance (SAOGA)<br />

and SBIDZ-LC:<br />

Offshore Supply Base<br />

Basil Read won the contract to extend TNPA’s<br />

general maintenance quay to create an Offshore<br />

Supply Base (OSB). The quayside is 294m with a<br />

further 3.8ha being available onshore for support<br />

operations. It will cater for ships and rigs looking for<br />

oil along both coasts of Africa, and any other rigs<br />

passing along the coast.<br />

Berth 205<br />

This is the name of a planned specialised rig and<br />

vessel repair quay that will be able to cater to the<br />

latest design in oil rigs.<br />

Mossgas Jetty<br />

Equipment and vessel-servicing facility: this<br />

planned 1 000m-long jetty will be perpendicular<br />

to the shoreline of the Port of Saldanha Bay. It<br />

will have a maximum width of 120m and be able<br />

to serve several ships or rigs in need of repairs or<br />

servicing at the same time. In addition, there will<br />

be a floating dock. TNPA has done several studies<br />

on the possible location of the jetty and the local<br />

and international market will be canvassed for<br />

companies to do the work.<br />

59 WESTERN CAPE BUSINESS <strong>2017</strong>


FOCUS<br />

Celebrating export<br />

excellence<br />

The well-established <strong>Western</strong> <strong>Cape</strong> Exporter of the Year Competition, hosted by the <strong>Cape</strong><br />

Chamber and sponsored by the ECIC, highlights the diversity of export products<br />

originating in the province.<br />

Finalists and winners at the ECIC/<strong>Cape</strong> Chamber <strong>Western</strong> <strong>Cape</strong> Exporter of the Year Competition.<br />

Abagold Ltd, the Hermanus company that breeds, grows<br />

and exports abalone by the ton, was declared the big<br />

winner at the ECIC/<strong>Cape</strong> Chamber <strong>Western</strong> <strong>Cape</strong> Exporter<br />

of the Year Competition at the gala dinner held on 13<br />

October 2016 at the prestigious <strong>Cape</strong> Sun.<br />

The <strong>Cape</strong> Chamber, which has served as the host for the awards<br />

for 26 years, serves, enables and leads business in the region. The<br />

Export Credit Insurance Corporation (ECIC) is the headline sponsor<br />

of the competition and an underwriter of export credit loans and<br />

investments.<br />

The theme for the evening was<br />

“out of this world”, and it was indeed<br />

an intergalactic experience.<br />

Incidentally, as the first African into<br />

space, Mark Shuttlelworth’s company,<br />

Thawte, was a previous competition<br />

winner (and sold to VeriSign<br />

shortly thereafter for R3.5-billion).<br />

The 12 finalists for the 2016<br />

awards included:<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

60


FOCUS<br />

• Abagold Ltd, the world’s largest<br />

abalone producer outside<br />

Asia<br />

• Afrinatural Holding, producers<br />

of natural botanical ingredients<br />

from all over Africa<br />

• All Women Recycling, transforming<br />

plastic waste into<br />

beautiful handicrafts<br />

• Bassalicious, producers of a<br />

range of vibrant and tasteful<br />

natural sauces<br />

• Chimpel, an innovative design<br />

and manufacturing company<br />

producing exotic leather<br />

merchandise<br />

• Franz Falke Textiles, producers<br />

of socks and fine hosiery<br />

• Geo Data Design, a geospatial<br />

solution provider providing<br />

industry-leading geographic<br />

solutions tailor-made for<br />

Africa<br />

• JF Hillebrand, an international<br />

service provider specialising<br />

in the logistics of beer, wine,<br />

spirits and keg supply chain<br />

management<br />

• Klein Karoo International,<br />

the world’s leading producer<br />

of ostrich goods, including<br />

meat, leather, feathers and<br />

by-products<br />

• Mervyn Gers Ceramics, specialits<br />

in bespoke dinnerware<br />

designed in collaboration with<br />

award-winning chefs<br />

• Oh Voila design, manufacture,<br />

retail and wholesale of<br />

affordable fashion jewellery,<br />

accessories and corporate<br />

handmade gifts<br />

• Peninsula Drums, specialises<br />

in the manufacture and<br />

reconditioning of metal<br />

and plastic drums as well as<br />

bulk containers<br />

• Technical Systems, a key manufturer and world-wide distributor of<br />

livestock feeding equipment<br />

Abagold Ltd won both the overall prize for excellence in exporting, which<br />

included R50 000 in cash and the <strong>Cape</strong> Chamber award for the best nonmanufacturing<br />

company.<br />

For the first time in the history of the competition, there was a tie<br />

for second place with Franz Falke Textiles, which won R20 000 worth<br />

of IT assistance from Auric Consulting, and Geo Data Design winning<br />

a R20 000 branding refresh supplied by Fable Design (also an Auric<br />

Consulting company).<br />

The Transnet Port Terminals Trophy for the best engineering/manufacturing<br />

company went to Franz Falke Textiles (Pty) Ltd. The company<br />

makes 8.5-million pairs of running socks, mostly for the United States<br />

market and is the first textile company to be an export winner for<br />

many years.<br />

Geo Data Design (Pty) Ltd, a company that interprets satellite images<br />

and information, won the Credit Guarantee Small Exporter Trophy<br />

and the Gerald Wolman Trophy for excellence in exporting to African<br />

countries. It also shared the overall second prize with Franz Falke<br />

Textiles (Pty) Ltd.<br />

Another double winner was Technical Systems (Pty) Ltd, which<br />

manufactures automated feeding systems for intensive pig and poultry<br />

farms. It won the Bonitas Innovation Trophy and the SAGITA Trophy<br />

for excellence in design.<br />

The Nedbank Trophy for Transformation went to Bassalicious (Pty)<br />

Ltd, a company that produces and exports quality sauces.<br />

The Exporter of the Year is not judged on the volume or value of<br />

product produced, but on excellence in exporting. This creates a level<br />

playing field for both big and small exporters.<br />

For the 2016 competition, we did some arithmetic and found that<br />

the entrants earned more than R3-billion in foreign exchange for the<br />

<strong>Western</strong> <strong>Cape</strong>. The finalists alone brought in more than R1.7-billion! Add<br />

to that the previous entrants that continue to export, and we are looking<br />

at many billions of rands brought into the <strong>Western</strong> <strong>Cape</strong> economy.<br />

Also, the provincial government and the City of <strong>Cape</strong> Town are keen<br />

to promote business and go out of their way to make it a little easier<br />

to get things done. The Chamber believes that this kind of teamwork<br />

and quality of enterprise and innovation shown by our exporters will<br />

make for a better future for us all. Here’s to the 27th Exporter of the<br />

Year in <strong>2017</strong>!<br />

For more information on the <strong>2017</strong> Exporter of the Year competition,<br />

please email Mary-Jean Thomas-Johnson at mary-jean@<br />

capechamber.co.za or contact her on +27 21 402 4300.<br />

61 WESTERN CAPE BUSINESS <strong>2017</strong>


Skills development<br />

A number of investors are driving skills development in the province.<br />

The <strong>Western</strong> <strong>Cape</strong> has two problems relating to<br />

employment: not enough work for unskilled<br />

workers, and not enough skilled workers to take<br />

up available jobs. This double-sided challenge<br />

is a legacy of apartheid and it exists throughout<br />

South Africa.<br />

Although the province has higher overall ratios of<br />

highly skilled and skilled workers than the national<br />

averages, less than 20% of the construction industry’s<br />

workforce in the <strong>Western</strong> <strong>Cape</strong> is categorised<br />

as skilled or highly skilled (Quantec, 2013). According<br />

to a national business conditions survey conducted<br />

in early 2016, a skills deficit is hampering the<br />

construction industry.<br />

Construction has been one of the best performing<br />

sectors in the <strong>Western</strong> <strong>Cape</strong> economy for a number<br />

of years, so improvement in this sphere is vital.<br />

The food sector is the other important area where<br />

work has to be done to impart skills to the workforce.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial Government has<br />

listed skills development as one of four key “enablers”<br />

of the regional economy. A specific intervention<br />

relevant to the construction industry is offered by<br />

the provincial Department of Transport and Public<br />

Works. Targeted training for emerging contractors<br />

is presented in regional centres like Riversdale and<br />

Worcester, and in Piketberg and Saldanha. The fourweek,<br />

modular course, which covers issues such as<br />

site management, safety and enterprise development,<br />

allows contractors to continue running their<br />

businesses while they study. The course supports<br />

the Expanded Public Works Programme (EPWP).<br />

Another provincial initiative was launched in<br />

October 2016: the <strong>Western</strong> <strong>Cape</strong>’s Apprenticeship<br />

Game Changer. Announced at the annual meeting<br />

of the Premier’s Council on Skills, the Game Changer<br />

aims to introduce 32 500 qualified apprentices into<br />

the labour market by 2019. R1-billion has been allocated<br />

over a three-year time frame. <strong>Business</strong>es<br />

have been asked to identify the specific skills they<br />

need, so for example the oil and gas sector needs<br />

welders certified to a certain level.<br />

A range of interventions at national and regional<br />

level have been launched to tackle the problem in<br />

the public and private sphere:<br />

• Six of South Africa’s biggest construction<br />

companies have established a R1.25-billion<br />

skills fund<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

62


SPECIAL FEATURE<br />

• The national Department<br />

of Higher Education and<br />

Training (DHET) declared the<br />

period starting in 2014 as “The<br />

Decade of the Artisan” with<br />

a goal of producing 30 000<br />

per year by 2026 (the current<br />

figure is about 13 000)<br />

• Sector Education and Training<br />

Authorities (SETAs) collect<br />

dues from companies in a particular<br />

industry (Wholesale and<br />

Retail, Banking, Construction,<br />

Chemical Industries, for example)<br />

in order to promote<br />

training in that industry. A<br />

percentage of this money is<br />

returned to the company if<br />

that company can show that<br />

they have a workplace training<br />

plan. The rest of the money<br />

is used to offer skills training<br />

• The National Skills Authority<br />

(NSA) works with SETAs in carrying out the<br />

National Skills Development Strategy (NSDS). The<br />

Human Resource Development Council of South<br />

Africa (HRDCSA) is an over-arching body that<br />

aims to give guidance to the many institutions<br />

working on skills development and training. It is<br />

managed by the DHET. The HRDCSA has identified<br />

five key areas where the skills pipeline must<br />

be improved: access to TVET colleges; intermediate<br />

skills (artisans in particular) and professionals;<br />

production of academics; collaboration between<br />

industry and educational institutions in research<br />

and development; worker education and<br />

foundational learning.<br />

The strategic goal of the DHET is to create “a<br />

capable and skilled workforce for inclusive growth”.<br />

There are many institutions supporting this goal in<br />

the <strong>Western</strong> <strong>Cape</strong>, including three academic universities,<br />

one comprehensive university, one university<br />

of technology and six Technical and Vocational<br />

Education and Training (TVET) colleges. Unisa, the<br />

country’s biggest distance learning institution, has<br />

a strong presence in the province with a campus in<br />

<strong>Cape</strong> Town and a service centre in George.<br />

TVET colleges have been asked to concentrate<br />

on 13 trade areas, including bricklayers, millwrights,<br />

boilermakers and riggers. R16.5-billion has been allocated<br />

by national government to skills development<br />

and infrastructure over the medium term.<br />

Technology<br />

CiTi, the <strong>Cape</strong> Innovation and Technology Initiative, is<br />

a <strong>Western</strong> <strong>Cape</strong> Provincial Government initiative. CiTi<br />

is a technology hub with several components: The<br />

Barn (supporting start-ups); VeloCiti (enterprise and<br />

entrepreneurship development); CapaCiti (technology<br />

skills development and placement).<br />

The renewable energy sector holds great promise<br />

for economic growth, and it should provide many<br />

jobs but specific training is required. In collaboration<br />

with the German government, the DHET has<br />

invested more than R100-million in the South African<br />

Renewable Technology Centre (SARTEC), a teaching<br />

unit of the <strong>Cape</strong> Peninsula University of Technology<br />

(CPUT). The Bellville campus of CPUT is training wind<br />

turbine service technicians and providing qualifications<br />

for trainers in the same field.<br />

Stellenbosch University (SU) hosts the Centre for<br />

Renewable and Sustainable Energy Studies (CRSES)<br />

and the University of <strong>Cape</strong> Town has the Energy<br />

Research Centre.<br />

Young people are at the heart of the provincial<br />

government’s drive to widen access to information<br />

technology. As of 2016, a total of 181 MOD centres<br />

had been established by the Department of Cultural<br />

Affairs and Sport: MOD stands for Mass participation;<br />

Opportunity and access; Development and<br />

growth programme.<br />

This is part of a broader, R9.4-billion, provincial<br />

government plan to assist young people in areas<br />

such as access to broadband, internships offered,<br />

and the acquisition of technical skills.<br />

TVETs and colleges<br />

TVET colleges exist to impart skills that are relevant<br />

to the workplace. The College of <strong>Cape</strong> Town has<br />

eight campuses and its selection of courses gives<br />

63 WESTERN CAPE BUSINESS <strong>2017</strong>


SPECIAL FEATURE<br />

a good illustration of the range<br />

of studies available to students<br />

at TVET colleges. Courses at CCT<br />

range from engineering (electrical,<br />

civil and mechanical), through<br />

travel and tourism, hospitality, hair<br />

care, beauty therapy and art and<br />

design, to business studies, information<br />

technology and education<br />

and training. The college<br />

has three residences in different<br />

parts of the city. Career guidance<br />

is offered and the college has a<br />

work placement programme<br />

for graduates.<br />

Northlink College is in <strong>Cape</strong><br />

Town’s northern suburbs and<br />

is an innovator in workplace<br />

monitoring. It has three business<br />

units that give students experience:<br />

Hair and Cosmetology, the<br />

Clothing Factory, and a restaurant<br />

and conference centre. The<br />

Fitting and Machining Centre of<br />

Excellence at Wingfield has the<br />

latest equipment.<br />

False Bay TVET College<br />

has campuses in Fish Hoek,<br />

Muizenberg, Mitchells Plain,<br />

Khayelitsha and Westlake.<br />

Engineering skills are a key focus<br />

for this college, together with<br />

hospitality. Appropriately, given<br />

its geographic locations, False<br />

Bay TVET also teaches Yacht and Boat Building. The<br />

college has an enrolment of more than 10 000.<br />

Outside the <strong>Cape</strong> metropole, Boland College<br />

looks after Stellenbosch, Worcester, Paarl and<br />

Caledon, while the Southern <strong>Cape</strong> College covers<br />

a wide area, from George to Beaufort West. The West<br />

Coast College also has a big catchment area.<br />

Private colleges such as MANCOSA (Management<br />

College of Southern Africa) often specialise in particular<br />

fields. In this case, a range of certificates, diplomas<br />

and degrees in business, commerce and<br />

administration is presented at five sites around South<br />

Africa, including <strong>Cape</strong> Town. The business training<br />

programmes of Africa Skills Private College include<br />

courses on leadership, occupational health and<br />

safety and new venture creation.<br />

Universities<br />

In 2014, a total of 5 680 engineers qualified from<br />

South Africa’s 26 universities. A further 2 667 computer<br />

scientists were capped but these numbers are<br />

far from adequate to cater to South Africa’s economy.<br />

<strong>Western</strong> <strong>Cape</strong> universities are very aware of the need<br />

to align their courses and research programmes with<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 64


SPECIAL FEATURE<br />

the needs of the economy. However, pure research<br />

cannot be ignored and in this area all three of the academic<br />

universities are strong: the University of <strong>Cape</strong><br />

Town, Stellenbosch University and the University of<br />

the <strong>Western</strong> <strong>Cape</strong>.<br />

A Master of <strong>Business</strong> Administration (MBA) is<br />

offered both by the Graduate School of <strong>Business</strong><br />

at UCT (which also has an executive MBA) and the<br />

University of Stellenbosch <strong>Business</strong> School. USB also<br />

presents an MPhil in Development Finance.<br />

The National Nanoscience Postgraduate<br />

Teaching and Training Platform is based at the<br />

University of the <strong>Western</strong> <strong>Cape</strong> in Bellville, with master’s<br />

degrees in nanoscience and nanotechnology<br />

on offer. UWC also has 14 SARChi Chairs, including<br />

Nano-Electrochemistry and Sensor Technology,<br />

Bioinformatics and Human Health Genomics and<br />

Microbial Genomics.<br />

There are three World Health Organisation (WHO)<br />

Collaborating Centres at UWC and the Centre of<br />

Excellence in Food Security (with Pretoria University)<br />

is funded by the National Research Foundation<br />

and the Department of Science and Technology.<br />

Biotechnology and food security come together in<br />

the Plant Biotechnology Research Group at UWC,<br />

which studies ways of developing crops that can<br />

resist drought.<br />

This kind of focus on specific challenges facing<br />

society in South Africa is an example of universities<br />

working to make their research relevant.<br />

The University of <strong>Cape</strong> Town is offering a<br />

course in Health Innovation that encourages talented<br />

young South Africans to find solutions to the<br />

country’s health problems. The MPhil in Health<br />

Innovation falls under the Division of Biomedical<br />

Engineering and is open to anyone with a four-year<br />

degree in a relevant discipline, which could be anything<br />

from medicine to engineering.<br />

Several master’s degree programmes at UCT<br />

aim to address the particular challenges of South<br />

African society: the Climate Change and Sustainable<br />

Development degree can be tackled through any<br />

one of the university’s six faculties and in <strong>2017</strong> a new<br />

degree will be on offer, a Master’s in Public Health<br />

(Faculty of Health Sciences).<br />

Another UCT degree that tackles a specific challenge<br />

faced in the South African economy is a Master’s<br />

in Sustainable Mineral Resource Development.<br />

Stellenbosch University is another <strong>Western</strong> <strong>Cape</strong><br />

institution that is tackling sustainability: a diploma<br />

will soon be on offer in this discipline, through the<br />

School for Public Leadership. The university also intends<br />

offering an MSc in Food and Nutrition Security<br />

that will tackle the problem from several angles.<br />

In George, students have access to courses offered<br />

by the Nelson Mandela Metropolitan University<br />

(NMMU): Saasveld is home to the School of Natural<br />

Resource Management and the York Street Campus<br />

delivers courses in business and social science,<br />

accounting and business management.<br />

Among the new courses on offer at the <strong>Cape</strong><br />

Peninsula University of Technology are diplomas<br />

in geomatics (one of South Africa’s most soughtafter<br />

skills to aid surveyors, town planners and civil<br />

engineers), clothing and textile technology, and<br />

horticulture and landscape architecture.<br />

65 WESTERN CAPE BUSINESS <strong>2017</strong>


PROFILE<br />

College of <strong>Cape</strong> Town<br />

The forward-looking college has a history dating back to<br />

the early 20th century.<br />

Louis van Niekerk,<br />

Principal of the College<br />

of <strong>Cape</strong> Town<br />

The College is a<br />

public Technical<br />

and Vocational<br />

Education &<br />

Training (TVET)<br />

College, under<br />

the Department of<br />

Higher Education<br />

and Training.<br />

Qualifications offered<br />

are accredited,<br />

affordable and<br />

quality assured by<br />

Umalusi, various<br />

SETAs and SAQA.<br />

Description of educational offerings<br />

The College is a leading provider of education and<br />

training in mainly the Technical and Vocational<br />

Education and Training (TVET) band and has much<br />

to offer students and prospective partners as an<br />

alternative to Basic and Higher Education and<br />

Training. Qualifications include skills programmes,<br />

technical, vocational and occupational training<br />

that lead to recognised, accredited qualifications<br />

that are in high demand by commerce<br />

and industry.<br />

Students are able to pursue a range of courses in<br />

the following disciplines:<br />

• Art and Design<br />

• Beauty Therapy<br />

• Building and Civil Engineering<br />

• <strong>Business</strong> Studies<br />

• Education and Training<br />

• Electrical Engineering<br />

• Hair Care<br />

• Hospitality<br />

• Information Technology<br />

• Mechanical Engineering<br />

• Travel and Tourism<br />

Location of facilities<br />

The College is situated in the central area of the<br />

Peninsula. The central office is located in Salt<br />

River, and the College of <strong>Cape</strong> Town also has<br />

three residences.<br />

It has eight campuses located in:<br />

• Athlone<br />

• <strong>Cape</strong> Town city centre<br />

• Crawford<br />

• Gardens<br />

• Guguletu<br />

• Pinelands<br />

• Thornton<br />

• Wynberg<br />

Support services<br />

Students at the College may access a variety of<br />

support services to assist them within coping with<br />

problems and difficulties, whether personal or academic.<br />

These services are provided free of charge<br />

and include:<br />

• Counselling<br />

• Academic support<br />

• Health education workshops<br />

• Assistance in applying for loans (loans are not<br />

supplied directly by the College)<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

66


PROFILE<br />

• Work placement services<br />

• Social and cultural services<br />

Key facts and figures<br />

Year established: The College of <strong>Cape</strong> Town is<br />

the oldest Technical and Vocational Education<br />

and Training institution in South Africa with a<br />

proud history dating back to the beginning of the<br />

20th century.<br />

As the name suggests, we are based in <strong>Cape</strong> Town.<br />

Four former technical colleges, Athlone College,<br />

<strong>Cape</strong> College, Sivuyile College and <strong>Western</strong> Province<br />

Technical College, were officially merged on<br />

1 February 2002 to become the College of <strong>Cape</strong><br />

Town. This arose from a rationalisation in TVET colleges<br />

in which some 150 colleges around the country<br />

were reduced to 50.<br />

No of staff: 670 (full-time)<br />

No of registered students: 14 379<br />

Qualifications offered: Certificates, Higher<br />

Certificates, Diplomas, UNISA B.Ed Degree<br />

(Foundation Phase), Skills Programmes, Learnerships,<br />

Accredited Trade Test Centre<br />

CONTACT INFO<br />

Key contact people:<br />

Louis van Niekerk, Principal.<br />

Wilfred Jackson, Chief Financial Officer.<br />

Sharon Grobbelaar, Marketing Manager.<br />

Physical address: 334 Albert Road,<br />

Salt River, <strong>Cape</strong> Town 7945<br />

Postal address: PO Box 1054,<br />

<strong>Cape</strong> Town 8000<br />

Tel: +27 21 404 6700 / 086 010 3682<br />

Fax: +27 21 404 6701 / 086 615 0582<br />

Email: info@cct.edu.za<br />

Website: www.cct.edu.za<br />

67 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

Member-oriented<br />

scheme strengthened<br />

by high reserves<br />

Christo Becker, Principal Officer of Selfmed, shares some<br />

insights on the medical insurance industry.<br />

Christo Becker<br />

BIOGRAPHY<br />

After completing his studies in<br />

1996, Christo worked as a paramedic<br />

in <strong>Cape</strong> Town and Port<br />

Elizabeth (where he was seconded<br />

to run the Eastern <strong>Cape</strong><br />

operation for Netcare911). He<br />

furthered his career in healthcare<br />

when he was appointed as<br />

hospital manager for a hospital<br />

in the Netcare Group. Christo<br />

went on to manage a number<br />

of other hospitals before joining<br />

Selfmed Medical Scheme as the<br />

Principal Officer in 2014.<br />

Please provide an overview of Selfmed, including the<br />

history and size of the organisation.<br />

Selfmed Medical Scheme was established 50 years ago and it is one<br />

of the older schemes in South Africa.<br />

Providing coverage for about 8 000 principal members and 13 000<br />

beneficiaries, we are one of the smaller schemes and we focus on providing<br />

individual attention to our members. Our size allows us to do this.<br />

Could you outline the different schemes?<br />

Members are able to choose one of five medical aid options:<br />

Selfnet – this entry-level product is our most affordable as it covers a<br />

narrow band of benefits.<br />

MedXX1 – a hospital plan that extends beyond the prescribed minimum<br />

benefits and pays out at 100% of scheme rates for covered<br />

in-hospital treatment and in-hospital doctor’s consultations.<br />

Selfsure – an option that provides in-hospital and out-of-hospital<br />

benefits and is a great choice for a family with young children.<br />

Med Elite – a broader hospital plan that covers additional conditions<br />

including greater coverage for oncology expenses, hip, knee and<br />

back operations.<br />

Selfmed 80% – 80% of bills relating to a wide range of conditions<br />

are covered.<br />

What is the solvency ratio of Selfmed and how does this<br />

compare to other medical aid schemes?<br />

Selfmed has a solvency ratio of 118%, which is way more than the 25%<br />

mandatory requirement. We are one of the top schemes in the country<br />

in terms of our reserves.<br />

What differentiates your offerings from those of your<br />

competitors?<br />

Selfmed has a very strong member focus. As someone who has<br />

previously worked as a paramedic and a hospital manager, I’m<br />

passionate about healthcare. All of us share the passion and want<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

68


INTERVIEW<br />

to ensure our Selfmed members<br />

receive good healthcare.<br />

We are able to attend to requests<br />

for ex-gratia payments<br />

on a case-by-case basis and our<br />

members appreciate knowing<br />

that their health conditions are<br />

not compared to other people’s,<br />

but are evaluated individually.<br />

Furthermore, because our<br />

cash reserves are so high and<br />

our systems (administration, call<br />

centre and marketing, etc) are<br />

managed internally, members<br />

feel confident about the level of<br />

service we can provide.<br />

What is your view of the<br />

National Health Insurance<br />

(NHI) scheme and how do<br />

you think it will impact private<br />

healthcare in South<br />

Africa?<br />

We all support the idea that<br />

healthcare should be accessible<br />

to all, however, a number of issues<br />

weren’t addressed in the White<br />

Paper. These include what the basket of care will<br />

look like and who will provide the care.<br />

This is the first phase of a 14-year implementation<br />

period and it is likely that the parameters of the NHI<br />

will change during its implementation.<br />

A specific risk for private healthcare providers<br />

relates to the introduction of a one-payer system.<br />

I don’t think people are going to be happy to take<br />

the money they usually pay into a medical aid and<br />

pay it into a centralised state-run system.<br />

Given that the UK, with its lower unemployment<br />

rate and higher number of taxpayers and health<br />

professionals, struggles to deliver the desired level of<br />

care via its National Health Service, it is unlikely that<br />

that South Africa will have the reserves to roll out a<br />

system that will rival private healthcare.<br />

How does the South African healthcare<br />

system compare internationally?<br />

I believe that the private healthcare system in South<br />

Africa – private medical care and medical insurance –<br />

is equal to the best in the world. Many of our doctors<br />

and medical professionals go overseas for training or<br />

to attend medical conferences and we have some of<br />

the most advanced medical equipment in the world<br />

in our private hospitals. Furthermore, in countries like<br />

the USA, medical care is far more expensive than it<br />

generally is in South Africa.<br />

Ideally, representatives of the entire healthcare<br />

industry here should get together to discuss challenges<br />

and collaborate on viable ways to solve<br />

these so that quality healthcare can be made<br />

accessible to more people.<br />

Increased legislation, particularly legislation<br />

relating to prescribed minimum benefits, has<br />

meant that medical schemes are under increased<br />

pressure though.<br />

www.selfmed.co.za<br />

69 WESTERN CAPE BUSINESS <strong>2017</strong>


KEY SECTORS<br />

Overview of the main economic<br />

sectors of the <strong>Western</strong> <strong>Cape</strong><br />

Agriculture 72<br />

Wine and grapes 76<br />

Fishing 83<br />

Mining 86<br />

Oil and gas 88<br />

Energy 92<br />

Water 94<br />

Manufacturing 98<br />

Construction and<br />

property development 104<br />

Tourism 106<br />

Banking and financial services 110<br />

Information and<br />

communications technology 118<br />

<strong>Business</strong> process outsourcing 119


INTERVIEW<br />

Focus on economic<br />

game-changers<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> spoke to <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Minister of Economic Opportunities Minister Alan Winde<br />

about creating growth and jobs.<br />

Alan Winde, <strong>Western</strong> <strong>Cape</strong><br />

Provincial Minister of<br />

Economic Opportunities<br />

BIOGRAPHY<br />

Alan Winde became MEC for<br />

Finance, Economic Development and<br />

Tourism in May 2009, shortly after<br />

the Democratic Alliance won the<br />

<strong>Western</strong> <strong>Cape</strong> Province. Winde has<br />

been a member of the <strong>Western</strong> <strong>Cape</strong><br />

Provincial Legislature since 1999. During<br />

his first term he served as provincial<br />

finance chairman and executive<br />

committee member with the<br />

Democratic Party. He has also<br />

served as chief whip of the<br />

official opposition in the West ern<br />

<strong>Cape</strong>, as the DA spokesperson on<br />

Environment and Planning and as the<br />

deputy DA spokes person on Economic<br />

Development and Tourism.<br />

What is your brief?<br />

Defining my job is easy. I am responsible for making provincial strategic<br />

goal number one – creating growth and jobs, happen. Together with<br />

my team, we’re looking at strategies to improve every facet of our<br />

economy. We’re obsessed with making our region more competitive<br />

and more compelling as a place to live, work and play.<br />

When I came in for the second term, I was determined to become<br />

the most accessible Ministry in South Africa, in touch with business<br />

people and in the heart of the city. So we moved our office space to<br />

a renovated ground-floor shop on Long Street.<br />

What are your priorities?<br />

We have identified a suite of economic game-changers. These include<br />

getting rid of red tape so business can start and operate more<br />

efficiently; securing stable energy for growth; improving broadband<br />

access; and ensuring we meet the demand for skills.<br />

For instance, in reducing red tape, in an area like the Voortrekker<br />

Corridor space, how do we as government put pre-zoning in place? We<br />

can do the environmental impact assessment (EIA), and the developer<br />

submits a planning proposal. In this way, you enable an easier decisionmaking<br />

process for developers. We need to put the levers in place so<br />

that this process does not take six months, but six weeks.<br />

Securing a reliable and affordable energy supply is also an important<br />

enabler. In the <strong>Western</strong> <strong>Cape</strong>, our approach is to diversify our sources<br />

of energy.<br />

The Information Communication and Technology (ICT) sector is<br />

growing at lightning speed. The <strong>Western</strong> <strong>Cape</strong> government’s incubators<br />

at the Bandwidth Barns in Woodstock and Khayelitsha lead our<br />

efforts to inculcate a culture of new tech innovations, led by driven<br />

entrepreneurs, and there has been huge interest by the private sector<br />

including French and British firms on the same mission. Barclays’ Rise<br />

<strong>Cape</strong> Town supports fintech companies. They have put money into<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

72


New York, London and Manchester, and also in <strong>Cape</strong><br />

Town. DVT’s app-testing facility just off the N1 is the<br />

biggest in the southern hemisphere.<br />

With regard to skills, we have an artisanal focus<br />

and are aiming to produce 32 500 artisans in the next<br />

three years. To get the last mile done, on-the-job<br />

training, we have to get businesses on board to offer<br />

the required in-service training component.<br />

Does the green economy hold potential for<br />

the <strong>Western</strong> <strong>Cape</strong>?<br />

We are very excited about a recent Moody’s report,<br />

which found that the green economy in South Africa<br />

is the fastest growing in Africa, and is one of the<br />

fastest in the world. The <strong>Western</strong> <strong>Cape</strong> hosts 70%<br />

of green economy manufacturing and 60% of head<br />

offices of green economy companies. Green<strong>Cape</strong> has<br />

a mandate to grow the green economy.<br />

Do you have a focus on particular sectors?<br />

At the start of the new five-year term in 2014, we<br />

worked with McKinsey and Company to conduct a<br />

deep-dive study into our economy. Drawing from<br />

best practice in emerging market economies from all<br />

over the world, they helped us develop a choice strategy:<br />

let’s concentrate on fewer sectors and drill much<br />

deeper. These sectors were tourism, agri-processing<br />

and oil and gas. This became Project Khulisa, which<br />

means “cause to grow” in isiXhosa.<br />

What were the key factors in choosing<br />

these sectors?<br />

Project Khulisa earmarked the following sectors as<br />

the biggest growth engines for the next five years:<br />

• Agri-processing had 1.8% growth in Gross Value<br />

Add (GVA) and 7.7% jobs growth<br />

• Tourism was growing at 6.8% GVA growth and<br />

7.8% jobs growth<br />

The next sectors on the list were ICT, BPO and film<br />

with the green economy cutting across many sectors.<br />

Can you give examples of how your department<br />

supports businesses in the key<br />

sectors?<br />

We are driving a suite of initiatives to grow agriprocessing,<br />

under the banner of Project Khulisa.<br />

These include efforts to boost halaal and wine<br />

INTERVIEW<br />

exports, and to create an enabling environment<br />

for all agri-processed products to flourish. We have<br />

made headway, together with our partners, in our<br />

drive to increase water storage in the Brandvlei Dam<br />

so that more hectares can come under irrigation,<br />

producing more product for agri-processed goods.<br />

We have also commissioned the equipment we<br />

require for our residue testing facility, so that we<br />

can accomplish the testing required to export more<br />

product to key international markets. All of the initiatives<br />

under Project Khulisa are designed to open<br />

international markets for our produce.<br />

As part of Project Khulisa, we have also prioritised<br />

direct air access. We are pleased with the significant<br />

impact of the work we’ve done in boosting arrivals<br />

to our province.<br />

There has been an impressive 60% increase in<br />

Origin and Destination (O&D) passengers coming<br />

through Qatar since the project started. There has<br />

been an increase of 53% in O&D passengers from<br />

Turkey from 36 348 to 55 714. This growth is linked<br />

to the landing of direct Turkish Airlines flights into<br />

<strong>Cape</strong> Town.<br />

In total, between July 2015 and December 2016,<br />

we will have expanded six direct routes and established<br />

two new direct routes, resulting in 400 000<br />

additional two-way seats to <strong>Cape</strong> Town.<br />

What are some of the indicators of this<br />

good growth?<br />

A total of 654 000m² was approved for construction<br />

in the <strong>Western</strong> <strong>Cape</strong> in 2015, nine times more<br />

than the figure approved in Gauteng. Absa is<br />

centralising its operations at Century City, British<br />

American Tobacco has just moved into offices at<br />

the Waterfront. Hisense, which already has a manufacturing<br />

facility in Atlantis, is working at how it can<br />

plug into the green economy. It is looking to treble<br />

or quadruple its investment into the region. Recently<br />

<strong>Cape</strong> Town received an award as best offshoring<br />

destination from a British outsourcing organisation.<br />

This is testament to the business confidence in the<br />

<strong>Western</strong> <strong>Cape</strong>.<br />

73<br />

WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Agriculture<br />

Processing plants boost rural employment.<br />

While the contribution of agriculture to provincial gross<br />

domestic product (GDP) is small at 4.2%, the fact that<br />

nearly 40% of exports from the <strong>Western</strong> <strong>Cape</strong> derive<br />

from fruit or agri-processing makes this a vital sector to<br />

the health of the regional economy.<br />

Seven of the 10 biggest export earners are either agricultural<br />

products or agri-processed goods.<br />

In the national context, agricultural products made up 5.2% of the<br />

country’s export basket in 2015. The African continent accounted for<br />

22.7% of total exports.<br />

Wheat is another of the province’s strong sectors: the <strong>Western</strong> <strong>Cape</strong>’s<br />

310 000ha planted to wheat in 2015 represented 64% of South Africa’s<br />

crop. Japan is a major destination of the province’s maize production.<br />

In canola, the <strong>Western</strong> <strong>Cape</strong> is even more dominant, with 99% of the<br />

nation’s hectares. (StatsSA). A working group of the Protein Research<br />

Foundation is developing strategies to increase the yields and plantings<br />

of canola. A canola symposium was held in Bredasdorp in 2016.<br />

The province’s climatic regions vary from Mediterranean around<br />

<strong>Cape</strong> Town and on the coast (where rainfall can be 2 000mm at places)<br />

to the drier regions of the inland Karoo districts where annual rainfall<br />

SECTOR INSIGHT<br />

A new testing centre will be<br />

built in the <strong>Western</strong> <strong>Cape</strong> to<br />

certify agricultural products<br />

for export to the EU.<br />

figures can be below 150mm.<br />

Just over three-million hectares<br />

of the province is cultivated and<br />

270 000ha are under irrigation.<br />

The sector supports almost<br />

10 000 farms and employs<br />

214 000 people. Farming carried out<br />

on the <strong>Western</strong> <strong>Cape</strong>’s 13-million<br />

hectares of agricultural land comprises<br />

approximately 21% of South<br />

African commercial agriculture.<br />

The Provincial Government<br />

of the <strong>Western</strong> <strong>Cape</strong> has identi-<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

74


OVERVIEW<br />

fied agri-processing as one of<br />

the three key sectors that can<br />

deliver high growth and lots of<br />

jobs. Over a five-year period to<br />

2014, the sector grew at nearly<br />

5% and delivered jobs growth of<br />

more than 7%.<br />

Agri-processing holds potential<br />

to increase employment<br />

in rural areas. If it receives the<br />

dedicated attention and support,<br />

it could add up to 100 000<br />

jobs and generate R26-billion<br />

for the economy under a highgrowth<br />

scenario.<br />

Among the areas on the todo<br />

list of <strong>Western</strong> <strong>Cape</strong> Minister<br />

for Economic Opportunities Alan<br />

Winde, whose ministry is responsible<br />

for agriculture, is to bring<br />

more irrigated land on-stream<br />

to increase product into the<br />

agri-processing chain; to keep<br />

promoting wine sales to the<br />

world; to expand African exports<br />

(Angola is proving a good first<br />

step); investigating whether the<br />

<strong>Western</strong> <strong>Cape</strong> can tap into the<br />

global halaal market said to be<br />

worth $2.3-trillion; and to build<br />

a testing centre for agricultural<br />

products so they can be certified<br />

for sale into the European Union<br />

(EU).<br />

Zoning laws also have to be<br />

adopted to promote growth in<br />

rural areas. He gives an example<br />

of a fruit pulping and drying company<br />

in the small town of Gouda,<br />

which was restricted by zoning<br />

laws when it wanted to expand<br />

its factory space beyond 1 000m².<br />

“They are growing at 65% and you<br />

are telling them to pack up and<br />

move to the city? Gouda loses<br />

1 000 jobs!” Winde says that it<br />

must be the objective of government<br />

and planners to create an enabling environment for companies<br />

to expand.<br />

In presenting his 2016/17 budget, Minister Winde said that the number<br />

of jobs in the agricultural sector had grown by 63% in a year, citing<br />

StatsSA data. This figure included seasonal jobs.<br />

Many more opportunities for employment may come about if the trend<br />

reported on by City Press in August of 2016 grows bigger: experienced<br />

citrus farmers moving to the <strong>Western</strong> <strong>Cape</strong> from other areas. Reporting<br />

that five farmers from Limpopo and the Eastern <strong>Cape</strong> had bought farms in<br />

Citrusdal, Robertson and Wellington, the newspaper noted that the variety<br />

of new fruit types (apart from lemons and other citrus fruit) to be planted<br />

by these new farmers would supply work all-year round for local people.<br />

Mandarins, seedless watermelons and squash are among the other fruits.<br />

There is also good news for agriculture in the <strong>Western</strong> <strong>Cape</strong> – out<br />

of Gauteng. South African Breweries has built a new malting plant in<br />

that province. To get to an annual production figure of 130 000 tons of<br />

malted barley for the new facility, more barley will have to be grown.<br />

The locally-sourced barley that SAB buys will rise from 65% to 95% of<br />

total stock. The company’s only other malting facility is in the heart<br />

of barley-growing country, at Caledon in the Overberg region, where<br />

180 000 tons are processed every year.<br />

The <strong>Western</strong> <strong>Cape</strong> is a major producer of fruit and vegetables and is by<br />

far the biggest producer of peaches in South Africa. The country produces<br />

about 60 000 tons per year.<br />

Only 1% of South Africa’s fruit is dried, but that still represents 51 000<br />

tons of product. The <strong>Western</strong> <strong>Cape</strong> is strong in dried fruit and nuts with<br />

Montagu Dried Fruit and Nuts, <strong>Cape</strong> Dried Fruit Packers (also based in<br />

the Boland town of Montagu), and Safari among the biggest producers<br />

and distributors.<br />

POSITION COMMODITY AMOUNT<br />

1 Refined petroleum R18.2bn<br />

2 Citrus R8.6bn<br />

3 Wine R8.6bn<br />

4 Apples and pears R6bn<br />

5 Grapes R6bn<br />

6 Iron and steel R3bn<br />

7 Fruit juice R2.2bn<br />

8 Fruit and nuts R2.1bn<br />

9 Tobacco R1.8bn<br />

10 Engine parts R1.6bn<br />

Top 10 exports 2015<br />

SOURCE: QUANTEC, 2015<br />

75 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

The estimated cost of the<br />

drought to the wine and fruit industries<br />

is about R1.2-billion.<br />

Companies<br />

Drought<br />

A severe drought has had an effect on all agricultural enterprises<br />

throughout South Africa.<br />

For some time now, most regions have not received the rainfall they<br />

expected. Rainfall recorded in September 2016 in the Central Karoo<br />

ranged between 0mm and 2mm. This will affect grazing for animals<br />

in summer. Irrigation in most areas has been affected and in some<br />

places has had to be stopped.<br />

Although the <strong>Western</strong> <strong>Cape</strong>’s winter grain crop regions received<br />

some timely rain, a long-term “climate response action plan” has<br />

been introduced called Smart Agri. This is a partnership between the<br />

provincial government, the private sector and academic institutions.<br />

Among the recommendations for the way forward is conservation<br />

agriculture, which is being tested at the provincial research farm,<br />

Langgewens. Minimum tillage and crop rotation are among the strategies<br />

being adopted.<br />

Zeder Investments is the agricultural<br />

arm of investment holding<br />

company PSG Group (which<br />

has become well known to the<br />

general public through Capitec<br />

Bank and Curro schools). Zeder<br />

has been very active in increasing<br />

its stake in agricultural companies<br />

in recent years, most notably<br />

<strong>Cape</strong>span, where it is now<br />

the holder of 98.1%. <strong>Cape</strong>span<br />

has a turnover of R7.6-billion<br />

across three divisions: farms, logistics<br />

and fruit. Brands include<br />

<strong>Cape</strong> and Outspan, <strong>Cape</strong>span<br />

Logistics (known as FPT for Fresh<br />

Produce Terminals) and Groot<br />

Gariep Koelkamers. Zeder has a<br />

similarly large stake in the holding<br />

company that controls three<br />

seed companies, Zaad Holdings<br />

(turnover R1.2-billion), and it has<br />

further shareholdings in egg and<br />

grain companies. Zeder is a 39.6%<br />

shareholder in Kaap Agri Ltd.<br />

Kaap Agri has more than 200<br />

operating points stretching from<br />

its headquarters in Malmesbury<br />

in the Swartland to Namaqualand<br />

and beyond. What started out as<br />

a farmers’ co-operative is now<br />

a large enterprise with eight<br />

business units covering everything<br />

from grain (Wesgraan), to<br />

packaging (Pakmark) and retail<br />

(Agrimark).<br />

Zeder also owns 27.2% of<br />

Pioneer Foods, which makes and<br />

distributes many big food and<br />

drink brands across Southern<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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OVERVIEW<br />

Africa, including Weet-Bix, Liqui-<br />

Fruit, Ceres, Sasko and White<br />

Star. The company has an annual<br />

turnover of R20-billion and it has<br />

two Bokomo facilities producing<br />

wheat biscuits, cereal and muesli<br />

in the United Kingdom.<br />

Overberg Agri is an unlisted<br />

company with a wide range of<br />

investments in several sectors,<br />

including mining, pet food and<br />

industrial fasteners. Promeal<br />

manufactures pet-food in Atlantis<br />

and Boltfast distributes nuts, fasteners<br />

and screws all over South<br />

Africa. Grain services, irrigation,<br />

financial services and retail form<br />

more traditional parts of the agricultural<br />

company’s profile, which<br />

had a turnover of R2.8-billion in<br />

2015/16. Headquarters are located<br />

in Caledon and the group has<br />

1 144 permanent employees.<br />

SSK (Sentraal Suid Ko-operasie)<br />

has outlets in the Overberg (headquarters<br />

are in Swellendam) and<br />

in the Southern <strong>Cape</strong> as far east<br />

as George. There are retail outlets<br />

at Swellendam, Heidelberg<br />

and Robertson, and grain depots<br />

at Swellendam, Heidelberg,<br />

Karringmelksrivier, Protem<br />

and Ashton.<br />

SSK has increased its reach<br />

with the acquisition of Tuinroete<br />

Agri, which has four grain silos<br />

and 19 retail outlets and depots<br />

stretching along the Garden<br />

Route from Riversdale to Jeffrey’s<br />

Bay. It also has a presence in the<br />

Langkloof and at Aberdeen in<br />

the Karoo. SSK either controls<br />

or has an interest in companies<br />

that engage in oil extraction,<br />

property, equipment, animal<br />

feed, abattoirs, investments and<br />

motor sales.<br />

The Klein Karoo group based in Oudtshoorn focusses on ostriches<br />

through Klein Karoo International. Separate units deal in fashion products,<br />

feathers, leather, skins and meat production.<br />

Other companies in the group cover seed sales, auctions and a<br />

retailer, Klein Karoo Agri, which has two petrol stations, six shops, a<br />

mechanisation business and an irrigation business.<br />

ONLINE RESOURCES<br />

Agricultural Research Council: www.arc.agric.za<br />

Bureau for Food and Agricultural Policy: www.bfap.co.za<br />

<strong>Cape</strong> Agency for Integrated Sustainable Development in Rural<br />

Areas: www.casidra.co.za<br />

Citrus Growers’ Association: www.cga.co.za<br />

Fresh Produce Exporters’ Forum: www.fpef.co.za<br />

Fruit SA: www.fruitsa.co.za<br />

HORTGRO: www.hortgro.co.za<br />

Klein Karoo: www.kleinkaroo.com<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

SA Grain Information Service: www.sagis.org.za<br />

SA Olive Industry Association: www.saolive.co.za<br />

SA Table Grape Industry: www.satgi.co.za<br />

SA Trade Directory of Indigenous Natural Products:<br />

www.cpwild.co.za<br />

South African Rooibos Council: www.sarooibos.org.za<br />

<strong>Western</strong> <strong>Cape</strong> Department of Agriculture: www.elsenburg.com<br />

77 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Wine and grapes<br />

China is importing the fruits of the <strong>Western</strong> <strong>Cape</strong>’s vineyards.<br />

SECTOR INSIGHT<br />

Nearly 50 000 people work<br />

in the province’s table grape<br />

sector.<br />

• A <strong>Cape</strong> wine farm is selling<br />

exclusively to China.<br />

• KWV has been sold to a<br />

global company.<br />

Chinese consumers love the grapes of the <strong>Western</strong> <strong>Cape</strong>,<br />

whether they are presented to them in bunches or in bottles.<br />

Alterations to importation regulations are set to massively<br />

boost table grape sales to China, and wine farmers<br />

are selling ever-increasingly volumes to that country.<br />

Table grapes<br />

South Africa’s table grape producers and exporters had something to<br />

cheer about in 2016. Because China has changed its cold-treatment<br />

protocol, South Africa can now increase its exports to that country to<br />

R2.5-billion within five years.<br />

In 2015, 10 600 tons of table grapes were sold into China but the<br />

figure could not be increased because of the cold-treatment protocol<br />

relating to the South Africa product, which affected quality, market<br />

share and price. The Chinese market for table grapes has been growing<br />

at 30% since 2000 and stands at about $600-million.<br />

The South African Table Grape<br />

Industry Partnership (SATI) is a<br />

partnership whose board membership<br />

represents every growing<br />

region. The industry’s contribution<br />

to the national GDP is estimated<br />

at more than R3-billion.<br />

The table grape industry provided<br />

over 46 000 direct jobs to<br />

the <strong>Western</strong> <strong>Cape</strong> during the<br />

2015/16 harvest. The <strong>Western</strong><br />

<strong>Cape</strong> is responsible for 65% of<br />

total production volumes in<br />

table grapes.<br />

There is also a significant contribution<br />

to downstream production<br />

income – R3.2-billion to<br />

other product-input providers,<br />

R720-million to packaging material<br />

suppliers and R250-million to<br />

logistics suppliers.<br />

On farms with black ownership,<br />

income of R183-million was<br />

generated in 2014/15.<br />

Key industry figures for the<br />

annual national harvest:<br />

• More than 85 000 jobs<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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OVERVIEW<br />

• Wages valued at R950-million<br />

• Additional R600-million job<br />

creation by suppliers in the<br />

value chain<br />

Three of South Africa’s grapegrowing<br />

regions are located in<br />

the <strong>Western</strong> <strong>Cape</strong>:<br />

• Olifants River: The river flows<br />

from the Cederburg Mountains<br />

westwards towards the Atlantic<br />

Ocean via Namaqualand.<br />

• Berg River: The Du Toitskloof<br />

Mountains are the main geographical<br />

feature of this region<br />

named for the strong-running<br />

river that irrigates the fields of<br />

grape varieties such as Red<br />

Globe, La Rochelle and Bonheur.<br />

• Hex River: The river runs past<br />

the Matroosberg where snow<br />

falls are a regular occurrence.<br />

Popular varieties are La Rochelle,<br />

Sunred Seedless and Barlinka.<br />

Wine<br />

A bottle-making factory in<br />

Gauteng is doubling its capacity<br />

because <strong>Cape</strong> wine exports<br />

are rising so quickly. Exports<br />

from the <strong>Western</strong> <strong>Cape</strong> reached<br />

R8.6-billion in 2015.<br />

Nampak told <strong>Business</strong> Day<br />

in 2016 that the main factor in<br />

increased orders from its <strong>Cape</strong><br />

wine buyers was the Economic<br />

Partnership with the European<br />

Union, allowing easier access into<br />

the EU for Southern African goods.<br />

Total exports of wine out of the<br />

<strong>Cape</strong> have grown from 50-million<br />

litres to close to 450-million,<br />

with many of the new sales going<br />

to China.<br />

The Chinese market was valued<br />

at R240-billion in 2015 (IWSR) and a<br />

joint venture between Leopard’s Leap and Yangzhou Perfect (51%) has<br />

bought the wine farm Val de Vie to make wine to export to that country.<br />

The wine is branded L’Huguenot.<br />

There is a move to try to shift South Africa’s focus away from<br />

bulk wine sales, to bottled wines. The website beveragedaily.com<br />

quoted the managing director of Origin Wines stating that for every<br />

10-million litres of additional wine bottled in South Africa in 2016, additional<br />

direct income of R200-million should accrue to the <strong>Cape</strong> Winelands.<br />

The decision by Britain’s electorate to extract the country from the<br />

EU will lead to some complications, but <strong>Western</strong> <strong>Cape</strong> Minister for<br />

Economic Opportunities Alan Winde believes that the new situation<br />

could lead to many new opportunities. The EU may push for the reduction<br />

in some of the figures set for imports (on the basis that a chunk of<br />

the allocation would have been going to Britain), but Britain will surely<br />

want to negotiate a good deal with South Africa as quickly as possible.<br />

There are over 3 500 wine producers in South Africa, with the large<br />

majority located in the <strong>Western</strong> <strong>Cape</strong>.<br />

Wine is produced by estates, independent cellars and producer cellars<br />

or co-operatives. The Distell group runs five distilleries and seven<br />

wineries in the <strong>Western</strong> <strong>Cape</strong>, produces about a third of the country’s<br />

natural and sparkling wine and is ranked 12th in the world in terms of<br />

global wine volume sales.<br />

The multi-brand KWV was sold in 2016 to consumer investment<br />

group Vasari. The reported sale price was R1.15-billion. Niveus, the<br />

previous owner of KWV, retains the company headquarters building<br />

in Paarl (La Concorde) and the Laborie wine estate.<br />

Wellington Wines is a new venture that arose from the merger of<br />

the Wellington Co-operative and the Wamakersvallei Co-operative.<br />

DGB is a large wine and spirits company that makes much of its own<br />

product at five famous wineries. These include Boschendal, Bellingham<br />

and Douglas Green. Edward Snell & Co is a wine and spirits wholesaler<br />

that also makes its own line of spirits. Fourteen brandy distilleries can<br />

be visited on the <strong>Western</strong> <strong>Cape</strong> Brandy Route and a further six on the<br />

R62 Brandy Route on the road east.<br />

ONLINE RESOURCES<br />

Integrated Production of Wine: www.ipw.co.za<br />

National Agricultural Marketing Council: www.namc.co.za<br />

Nietvoorbij Institute for Viticulture and Oenology:<br />

www.arc.agric.za<br />

SA Wine Industry Information & Systems: www.sawis.co.za<br />

South African Brandy Foundation: www.sabrandy.co.za<br />

South African Table Grape Industry: www.satgi.co.za<br />

<strong>Western</strong> <strong>Cape</strong> Department of Agriculture: www.elsenburg.com<br />

Wines of South Africa: www.wosa.co.za<br />

79 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

The magic grape<br />

Beyers Truter, who is associated internationally with the<br />

Pinotage varietal, shares some insights on the local<br />

winemaking industry.<br />

Beyers Truter<br />

BIOGRAPHY<br />

Beyers Truter received a BSc<br />

Agric degree from the University<br />

of Stellenbosch before<br />

starting his winemaking career<br />

at Kanonkop. Today he is the<br />

cellar master and co-owner of<br />

Beyerskloof. He played an enormous<br />

role in the development<br />

of the Pinotage red wine grape<br />

varietal when, in 1991, he was<br />

named international Winemaker<br />

of the Year with a Pinotage wine<br />

at the International Wine and<br />

Spirits Competition. He was<br />

also the founder and chairman<br />

of the Pinotage Association. He<br />

has won numerous local and<br />

international awards.<br />

Please provide an overview of your business operations<br />

and the Beyerskloof Wine Estate.<br />

Beyerskloof was established in 1988 and is known internationally for its<br />

Pinotage wines, the only indigenous South African variety.<br />

We have grown tremendously over the last few years and we are<br />

considered one of the foremost producers of Pinotage and <strong>Cape</strong><br />

Blends in South Africa. Although I don’t want to grow too fast, there<br />

is a big demand for South African wines. My son is now in charge of<br />

the vineyards and winemaking and we intend to expand operations.<br />

I regard the fact that my son is actively involved in the business and will<br />

continue to build it as the biggest reward of my life thus far.<br />

Could you explain something about your relationship<br />

with Pinotage?<br />

I have a very long relationship with Pinotage. I would say the relationship<br />

started in 1981; I was farming at Kanonkop and I tasted a 1972<br />

wine from Simonsig. I liked it so much that I phoned winemaker Frans<br />

Malan to ask him about it – it was a Pinotage, which at that stage was<br />

a kind of “black sheep” of wines. Well, I have always been fond of “black<br />

sheep” and the relationship has flourished ever since.<br />

In 1995, I established the Pinotage Association, which focuses on<br />

prioritising research ideas, knowledge dissemination and marketing of<br />

the varietal. It is a magic grape with a wonderful classic taste!<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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INTERVIEW<br />

Please describe the relationship with<br />

Nedbank, in terms of your business and<br />

the wine industry.<br />

Nedbank does a lot to support the wine industry;<br />

in particular, they sponsor the <strong>Cape</strong> Winemakers<br />

Guild Auction. In addition to well-known estates,<br />

individuals are also able to market their topclass<br />

wines through the event. They are also involved<br />

in the sponsorship of the Nedbank Vinpro<br />

Information Day held annually. Nedbank is also our<br />

<strong>Business</strong> Bank.<br />

What is your view of the current state of<br />

the wine industry in South Africa and the<br />

outlook for the next five-to-10 years?<br />

Some South African wines are doing very well.<br />

I could mention Pinotage and Chenin Blanc,<br />

local sales of which have grown by 73% and 60%<br />

respectively over the past five years.<br />

I foresee that it will continue to go well for the<br />

wine industry in the short-to-medium term but<br />

unfortunately the outlook is not as positive for the<br />

grape farmers. The price of grapes has not risen as<br />

much as the price of the value-added product –<br />

wine in the bottle.<br />

What prompted you to start a community<br />

project focusing on alcohol abuse among<br />

women and youth pregnancy, and what<br />

impact has the project had?<br />

Some years ago, I started the FAITH Fund (Foetal<br />

Alcohol-Syndrome and Interrelated Treatment Help<br />

Fund) and we have been working at communicating<br />

the negative effects of drinking during pregnancy<br />

ever since. It is widely known that the <strong>Western</strong><br />

<strong>Cape</strong> has a serious problem when it comes to Foetal<br />

Alcohol Syndrome (FAS).<br />

We have what we call the “Klop-klop” project,<br />

where we literally send people door-to-door to<br />

speak to farm workers, particularly pregnant women,<br />

about the dangers of drinking while pregnant. We<br />

follow up by visiting pregnant women each month<br />

until they deliver and we provide food and necessities<br />

to assist them. We also visit schools and clinics as<br />

far afield as Beaufort West and Graaff-Reinet.<br />

I do this because I believe that every child needs<br />

a future and FAS robs children of a future they can<br />

look forward to.<br />

How is the drought likely to impact the<br />

wine industry?<br />

Typically during periods of dry weather you have a<br />

smaller crop but sometimes a superior crop, so the<br />

effects “cancel each other out”. Longer term, however,<br />

continuing drought would significantly affect<br />

volumes, which would affect wine sales.<br />

81 WESTERN CAPE BUSINESS <strong>2017</strong>


PROFILE<br />

South African Table<br />

Grape Industry<br />

South Africa: preffered country of origin for the<br />

world’s best-tasting grapes.<br />

SATI represents<br />

growers in key<br />

government and<br />

industry initiatives<br />

aimed at creating<br />

more opportunities,<br />

from ownership to<br />

accessing new markets<br />

in a sustainable<br />

way.<br />

SATI assists growers<br />

with crucial industry<br />

information,<br />

Willem Bestbier, CEO<br />

transformation, statistics, research, technology and<br />

technical transfer as well as training and education<br />

with the aim of establishing South Africa as the<br />

Preferred Country of Origin for the world’s besttasting<br />

grapes.<br />

South African table grape growers and exporters<br />

are committed to being a reliable supplier of table<br />

grapes by delivering a safe, flavour-filled product of<br />

the highest quality.<br />

grape producer as wide a choice as possible with<br />

profitable markets.<br />

Mission<br />

SATI delivers service excellence to create a progressive,<br />

equitable and sustainable South African table<br />

grape industry.<br />

SATI’S key areas of intervention<br />

• Technical market access<br />

• Research and technology transfer<br />

• Information and knowledge management<br />

• Transformation<br />

• Communication and stakeholder engagement<br />

• Human capacity and skills development<br />

• Technical support<br />

continued on page 82<br />

They have dedicated themselves to ensuring<br />

that our special taste, quality and choice product<br />

meet the highest level of compliance with world<br />

market standards.<br />

Vision<br />

South Africa is the Preferred Country of Origin<br />

for table grapes and will provide every table<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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PROFILE<br />

These interventions are aimed at assisting producers<br />

to Gain, Retain and Optimise (GRO) market access.<br />

SATI is funded by a grower levy, and is a co-founder<br />

and a key supporter of the Sustainability Initiative of<br />

South Africa (SIZA).<br />

A world of variety<br />

There are five major growing regions in South Africa.<br />

The difference in soil and climate enables growers<br />

to supply the markets from November to May. The<br />

early season is dominated by varieties from the<br />

Northern Provinces and the valleys of the Orange<br />

and Olifants Rivers , followed by table grape varieties<br />

from the Berg River and Hex River regions.<br />

The South African table grape industry is ideally positioned<br />

to work with the government on all levels<br />

to make a significant contribution to the primary<br />

goals of the National Development Plan, namely<br />

job creation, rural development and the earning<br />

of foreign revenue.<br />

CONTACT INFO<br />

Contacts:<br />

Willem Bestbier, Chief Executive Officer<br />

Email: willem@satgi.co.za<br />

Joseph Lombardt<br />

Manager: Information and Knowledge<br />

Management<br />

Email: joseph@satgi.co.za<br />

Physical Address: 63 Main Street, Paarl 7624<br />

Tel: +27 21 863 0366<br />

Fax: +27 21 863 3039<br />

Email: info@satgi.co.za<br />

Website: www.satgi.co.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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Fishing<br />

More fish, fewer chips.<br />

OVERVIEW<br />

The Oceana Group has made some purchases that will boost its<br />

fishing and fish processing volumes. It has also sold off its potatoprocessing<br />

business, Lamberts’ Bay Foods. With the purchase<br />

of Foodcorp’s fishing rights and an American fishmeal and oil<br />

company, Daybrook, Oceana now has operations in the USA, South<br />

Africa and Angola and achieved revenues in 2015/16 of R8.2-billion.<br />

The biggest brand performer for Oceana is Lucky Star canned<br />

pilchards, which enjoys 80% of market share in South Africa.<br />

Demersal fish such as hake and kingklip account for 46% of the<br />

national catch, with pelagic fish (anchovy, pilchards and sardines)<br />

making up 23%. Lobster makes up 11% and linefish 13%. The <strong>Western</strong><br />

<strong>Cape</strong> is responsible for about 75% of the nation’s fishing.<br />

The value of the national catch across 22 commercial fishing<br />

sectors is about R6-billion. Sectors range from the highly capitalised<br />

deep-sea trawling industry to much smaller-scale lobster and<br />

abalone operations.<br />

Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana<br />

has stated his intention to restructure the horse mackerel industry to<br />

promote local fishers and processors. A 15-year contract awarded in<br />

2015 on this basis was overturned by the courts after objections by<br />

bodies such as FishSA, which represents eleven fishing associations.<br />

Most of South Africa’s major food companies have fishing divisions.<br />

Pioneer Fishing has no connection to the multi-product group Pioneer<br />

Foods, and is owned by Suiderland Corporation and African Pioneer<br />

Limited. Pioneer Fishing controls a canning, fishmeal and fish oil factory<br />

in St Helena Bay called Oranjevis, a joint venture with Terrasan Pelagic<br />

Fishery, and a processing and freezing factory in the Port Elizabeth<br />

harbour (Eyethu Fishing).<br />

ONLINE RESOURCES<br />

FishSA: www.fishsa.org<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

SA Deep Sea Trawling Industry Association: www.sadstia.co.za<br />

Southern African Sustainable Seafood Initiative:<br />

www.wwfsassi.co.za<br />

SECTOR INSIGHT<br />

Government intends restructuring<br />

the horse mackerel industry<br />

to boost local fishers.<br />

Premier Fishing, a subsidiary<br />

of Sekunjalo Investments, runs<br />

16 vessels and operates at seven<br />

locations, including Atlantic Cold<br />

Storage, which has capacity to<br />

store 2 500 tons of fish and 405<br />

tons of live lobster. The company<br />

has lobster plants at Port Nolloth<br />

and Hout Bay, and a fish meal<br />

plant at Saldanha.<br />

Viking Fishing is active in fishing,<br />

processing and fish farms. It<br />

has 1 250 employees across its<br />

varied operations, which include<br />

trawling for hake; sardines and<br />

anchovies; the west coast rock<br />

lobster and prawns (in South<br />

Africa and Mozambique).<br />

Sea Harvest is vertically integrated<br />

and owns all its fishing<br />

vessels, processing facilities<br />

and cold storage facilities. Sea<br />

Harvest runs several shore-based<br />

factory plants, sells to more<br />

than 2 000 stores and has 46%<br />

of South Africa’s retail frozen<br />

fish market.<br />

Dromedaris Visserye specialises<br />

in <strong>Cape</strong> lobster, and supplies<br />

sardines and anchovies to China<br />

and Japan.<br />

85 WESTERN CAPE BUSINESS <strong>2017</strong>


SPECIAL FEATURE<br />

87 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Mining<br />

The sands of the West Coast are giving up their riches.<br />

A<br />

new mineral sands project on the West Coast near Lutzville<br />

and Koekenaap has started sending product to China.<br />

Australian miner Mineral Commodities (MRC) says it will<br />

spend R5-billion at its Tormin mine to 2019 in search of zircon,<br />

rutile, ilmenite and garnet.<br />

Namakwa Sands is an existing mineral sands operation on the<br />

West Coast, owned by Tronox. Tronox is listed on the New York Stock<br />

Exchange and South African company Exxaro Resources is a 43.87%<br />

shareholder. The company has a mine and concentration plant at<br />

Brand-se-Baai and a mineral separation plant at Koekenaap near<br />

Lutzville about 350km from <strong>Cape</strong> Town. Ilemnite, rutile and zircon<br />

are extracted at this site and then taken to the company’s smelter at<br />

Saldanha Bay. Zircon is used in tile glazing and ilmenite is melted to<br />

become pig iron for use in engine blocks. The left-over slag is used as<br />

pigmentation in paints.<br />

The <strong>Cape</strong> Bentonite Mine (with five quarries) near Heidelberg is run<br />

by Ecca Holdings with another site east of Knysna at Roodefontein.<br />

Dimension stone occurs around Vanrhynsdorp (which also has some<br />

gypsum) and medium-grain granite is found at Paarl.<br />

Sixteen rare earth minerals have been identified north of<br />

Vanrhynsdorp, with the most prevalent being cerium, an important<br />

component of catalytic converters. South Africa is a world leader in<br />

converters. Other minerals found at the site are used in magnets,<br />

batteries and electric-powered cars.<br />

More than one investor has come and gone, but the acquisition<br />

in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of<br />

ONLINE RESOURCES<br />

African Mining Indaba: www.miningindaba.com<br />

Chamber of Mines of South Africa:<br />

www.chamberofmines.org.za<br />

Council for Geoscience: www.geoscience.org.za<br />

Geological Society of South Africa: www.gssa.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

Southern African Institute of Mining and Metallurgy:<br />

www.saimm.co.za<br />

SECTOR INSIGHT<br />

Sixteen rare earth minerals<br />

have been identified north of<br />

Vanrhynsdorp.<br />

Rareco has given it the right to<br />

the rare earth deposits at the<br />

Steenkampskraal monazite<br />

mine. STL already had the thorium<br />

rights. STL has an associate<br />

company in Norway, Thor Energy.<br />

The plan is to mine, process and<br />

refine thorium for nuclear fuel applications<br />

in Norway. STL reports<br />

that Steenkampskraal has one of<br />

the world’s highest-grade rare<br />

earth and thorium deposits with<br />

an average grade of 14.4% rare<br />

earths and 2.14% thorium.<br />

Limestone for cement, agricultural<br />

lime and feed lime is<br />

extracted at several sites in the<br />

province’s western regions while<br />

kaolin is found in Noordhoek and<br />

Somerset West. Ball clay is mined<br />

in the Albertina district by G&W<br />

Base and Industrial Minerals, a<br />

subsidiary of the Zimco Group.<br />

Pretoria Portland Cement<br />

(PPC) has operations near<br />

Riebeek-West and Piketberg (De<br />

Hoek). Slasto and building stone<br />

is quarried near Clanwilliam.<br />

Consol quarries glass sand<br />

near Philippi.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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OVERVIEW<br />

Oil and gas<br />

The <strong>Western</strong> <strong>Cape</strong> Government is hoping to exploit opportunities related to the gas sector.<br />

SECTOR INSIGHT<br />

A new LPG terminal will be<br />

commissioned at Saldanha<br />

in <strong>2017</strong>.<br />

• Chevron wants to sell its<br />

refinery.<br />

• A new fuel storage terminal<br />

is being built in <strong>Cape</strong><br />

Town harbour.<br />

Thirty-two companies are set invest in the Saldanha Bay Industrial<br />

Development Zone (SBIDZ). These companies are in the oil and<br />

gas, and servicing and logistics sectors. The idea of providing<br />

infrastructure and incentives at the SBIDZ in these sectors is<br />

reaping rewards.<br />

Large industrial operations already exist at Saldanha and the Port<br />

of Saldanha Bay is used for the export of South Africa’s iron ore. Large<br />

quantities of oil are transported around the <strong>Cape</strong> of Good Hope every<br />

year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the<br />

Middle East. Reduced global prices for oil and troubles in the container<br />

ship market have caused some stress in the local sector – DCD<br />

Marine went into voluntary business rescue in November 2016 – but<br />

the long-term prospects for shipping and oil and gas are still strong<br />

enough for national government to pursue Operation Phakisa (which<br />

includes a strong maritime economy push) and for Transnet National<br />

Ports Authority to spend heavily on upgrading the nation’s ports.<br />

Considerable planning has gone into positioning the SBIDZ as a<br />

hub for a range of maritime repair activities and oil rig maintenance<br />

and repair. (A separate article on the SBIDZ appears elsewhere in<br />

this publication.) But Saldanha has not been chosen by the national<br />

Department of Energy (DoE) to host a gas-to-power plant: Richards<br />

Bay and Coega (Port Elizabeth) have instead been listed as the sites<br />

for 2 000MW and 1 000MW potential, if private investors for projects<br />

at those ports can be found. The<br />

Provincial Government of the<br />

<strong>Western</strong> <strong>Cape</strong> has asked the DoE<br />

to reconsider and wants Saldanha<br />

to be allocated at least 1 000MW<br />

potential for private companies<br />

to consider bidding to run such<br />

a power plant.<br />

If gas was used to generate<br />

power, the next step would be<br />

for factories to consider using gas<br />

and then the whole energy mix<br />

could be changed. The <strong>Western</strong><br />

<strong>Cape</strong> Ministry of Economic<br />

Opportunities sees the potential<br />

of gas in the context of working<br />

together with wind and solar energy.<br />

Gas, a CSIR report has concluded,<br />

could be a very good support<br />

for renewable energy during<br />

times of peak demand.<br />

Another possible gamechanger<br />

is shale gas. The Council<br />

for Geoscience (CGS) is doing an<br />

intensive study of South Africa’s<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

90


OVERVIEW<br />

potential shale gas resources. The<br />

study centres on the area around<br />

Beaufort West in the Karoo. The<br />

study wants to look at the reserves,<br />

the technology associated<br />

with getting the gas out of the<br />

ground and the value chain.<br />

Natural gas lies offshore to<br />

the west of South Africa in the<br />

Atlantic Ocean (Ibhubesi) and off<br />

the southern coast in the Indian<br />

Ocean (Bredasdorp Basin). Both<br />

fields have great potential: Block<br />

2A of the Ibhubesi gas field northwest<br />

of Saldanha is estimated to<br />

have reserves of 850-billion cubic<br />

feet of gas and the Bredasdorp<br />

Basin is said to have reserves of<br />

one-trillion cubic feet, but getting<br />

to the gas has proved tricky.<br />

The Bredasdorp Basin is close<br />

to Mossel Bay where a gas-toliquids<br />

plant is located. Project<br />

Ikhwezi, run by South Africa’s oil<br />

company PetroSA, produced 25-<br />

billion cubic feet (bcf) from that<br />

field instead of a projected 242bcf<br />

(Engineering News). PetroSA recorded<br />

a net operating loss of<br />

R14.6-billion for the 2014/15<br />

financial year.<br />

Sunbird Energy (a joint venture<br />

between Sunbird Energy 76%<br />

and PetroSA 24%) was reported<br />

in March 2016 to be proceeding<br />

with plans to produce gas from<br />

the Ibhubesi field, but lower<br />

global gas prices and negotiations<br />

with national utility Eskom<br />

(which has to agree to buy the<br />

gas) were factors that had to be<br />

considered (Financial Mail).<br />

Further afield, major gas finds<br />

have been made off the coast<br />

of East Africa and plans to pipe<br />

greater volumes of Mozambican<br />

gas to Gauteng are far advanced.<br />

Industrial gas manufacturing in the <strong>Western</strong> <strong>Cape</strong> is a particular<br />

focus for Air Products, a part of the Metkor Group controlled by Remgro.<br />

The company is the largest supplier in the pipeline and on-site markets,<br />

and it also supplies to the packaged chemicals, bulk and chemicals<br />

markets. The company has a national footprint, with a very strong presence<br />

in the oil, gas and chemical hub of the country around Sasolburg<br />

and Vereeniging. Air Products has a network of private distributors who<br />

get support from the company in terms of sales, service and technical<br />

advice. Safety training is also offered.<br />

Facilities<br />

The gas-to-liquids plant that PetroSA runs at Mossel Bay on the south<br />

coast is one of the country’s key pieces of energy infrastructure. Getting<br />

new feedstock for this plant is now an urgent priorty (and something<br />

which Project Ikhwezi was supposed to do).<br />

The Chevref oil refinery in the <strong>Cape</strong> Town suburb of Milnerton is one<br />

of six in South Africa. It produces about 110 000 barrels a day of South<br />

Africa’s total production of 703 000 barrels a day. Chevron gave notice<br />

in early 2016 of its intention to leave South Africa. A price of R15-billion<br />

has been suggested for Chevron’s assets, which include a lubricants<br />

business and 850 Caltex petrol stations (Sunday Times).<br />

A new facility is to be added to the oil and gas sector in <strong>Cape</strong> Town<br />

– a 118 000m³ fuel storage unit. The Bergan terminal will comprise 12<br />

tanks located on the Eastern Mole of the Port of <strong>Cape</strong> Town and it will<br />

be connected by pipeline to the Chevref refinery.<br />

A new import terminal dedicated to Liquefied Petroleum Gas (LPG)<br />

is being constructed at Saldanha Bay by Sunrise Energy. The terminal<br />

will be an open-access facility, so any gas importer, distributor or<br />

downstream user can use it for the importation of LPG, commercial<br />

propane or commercial butane. It is due to be commissioned in the<br />

second quarter of <strong>2017</strong>.<br />

ONLINE RESOURCES<br />

Liquefied Petroleum Gas Association of Southern Africa:<br />

www.lpgas.co.za<br />

National Department of Energy: www.energy.gov.za<br />

National Energy Regulator of South Africa: www.nersa.org.za<br />

Petroleum Agency of South Africa:<br />

www.petroleumagencysa.com<br />

PetroSA: www.petrosa.co.za<br />

Saldanha Bay IDZ: www.sbidz.co.za<br />

South African Oil and Gas Alliance: www.saoga.org.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

92


Air Products<br />

South Africa<br />

PROFILE<br />

This leading industrial gases and related products company has<br />

introduced innovations throughout its history.<br />

Air Products South Africa manufactures, supplies<br />

and distributes a wide variety of atmospheric gases,<br />

speciality gases, performance materials, equipment<br />

and services to the southern African region.<br />

Founded in 1969, the company has grown rapidly<br />

and has used its world-class production and regional<br />

distribution facilities to become the largest<br />

supplier in the on-site and pipeline markets. It is also<br />

a leader in the bulk, packaged gas and chemicals<br />

supply markets.<br />

Liquid and gaseous product is distributed to customers<br />

throughout South Africa using the company’s<br />

modern fleet of cryogenic tankers and cylinder<br />

trucks. This ensures reliable supplies of gases such<br />

as oxygen, nitrogen, argon, hydrogen and carbon<br />

dioxide to major corporations in the steel, stainless<br />

steel, chemical, petrochemical and engineering<br />

industries.<br />

In fact, Air Products touches the lives of consumers<br />

in positive ways every day, and serves customers<br />

in a range of industries from food and beverage,<br />

mining and petrochemicals, primary metal and steel<br />

manufacturers, chemical applications, welding and<br />

cutting applications to laboratory applications.<br />

<strong>Business</strong> units<br />

Air Products has four business units to serve its<br />

broad client base.<br />

On-site generation<br />

These systems include small membrane cabinets,<br />

packaged plants, large air separation and hydrogen/<br />

carbon monoxide/syngas plants and industrial gas<br />

pipelines. The systems are classified as either generated<br />

gases or tonnage gases.<br />

Bulk gas<br />

This division facilitates the supply of bulk liquid product<br />

to a wide range of customers. Products including<br />

liquid oxygen, liquid nitrogen, liquid carbon dioxide,<br />

liquid argon and gaseous hydrogen are transported<br />

from the company’s four main air separation units<br />

via its fleet of road tankers.<br />

Specialty gases<br />

There are over 100 different gaseous and liquid<br />

chemicals and thousands of different gas mixtures.<br />

These products can be supplied in any quantity,<br />

from a few grams or litres to a 4 000m³ trailer load.<br />

Chemicals<br />

The Air Products chemical offerings are backed up<br />

by its applications support personnel, who rigorously<br />

match product properties to meet specific<br />

end-use applications.<br />

CONTACT INFO<br />

Tel: +27 11 570 5000<br />

Email: info@airproducts.co.za<br />

Website: www.airproducts.co.za<br />

93 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Energy<br />

Manufacturing in the renewable energy sector is taking off in Atlantis.<br />

The energy landscape of the <strong>Western</strong> <strong>Cape</strong> is undergoing rapid<br />

change. Mostly this is because the potential of renewable energy<br />

is being realised, but if a gas-to-energy plant becomes a reality in<br />

the province, then another big shift could take place.<br />

The <strong>Western</strong> <strong>Cape</strong> already hosts the country’s only nuclear power<br />

station (Koeberg, north of <strong>Cape</strong> Town) and it has a pumped water<br />

storage plant and three open-cycle gas turbines.<br />

The West Coast was the site of two of the country’s first experimental<br />

wind farms. Successful trials there and elsewhere (and<br />

critical power shortages in the national grid) led to the adoption<br />

by national government of a scheme to invite private producers<br />

to bid for the right to build plants that would produce wind, solar<br />

or hydropower. This is the Renewable Energy Independent Power<br />

Producer Procurement Programme (REIPPPP) and the first bids closed<br />

in December 2011.<br />

By the time the fourth bid closed in 2015, the <strong>Western</strong> <strong>Cape</strong> had<br />

been allocated 11 projects, six wind and five photo-voltaic solar power.<br />

The total capacity of these projects totalled 592MW. Among the foreign<br />

companies to engage in renewable energy projects in the province<br />

are Gamesa and Acciona, Gestamp Renewables, Vestas, Sunpower<br />

and JinkoSolar.<br />

The Provincial Government of the <strong>Western</strong> <strong>Cape</strong> is prioritising<br />

energy in its plans, and this includes generation (gas, biogas and<br />

renewables), distribution and energy-saving.<br />

SECTOR INSIGHT<br />

Progress reports on energy<br />

plans are presented to the<br />

Premier every six weeks.<br />

• There are 2 000 private<br />

energy providers in <strong>Cape</strong><br />

Town.<br />

A wide range of experts drew<br />

up the provincial energy plan,<br />

the key points of the energy plan<br />

include: efficiency in the system;<br />

get the uptake of renewable energy<br />

to move faster; and move to<br />

gas. With every project within that<br />

plan, a detailed timetable has been<br />

worked out and reports are sent to<br />

the Premier’s office every six weeks.<br />

<strong>Western</strong> <strong>Cape</strong> Minister<br />

of Economic Opportunities<br />

Alan Winde notes that the<br />

Department of Agriculture, simply<br />

by carefully recording its usage<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

94


OVERVIEW<br />

patterns, has cut its electricity bill by<br />

R1.7-million.<br />

On top of this, the <strong>Western</strong><br />

<strong>Cape</strong> has its own private producers’<br />

programme. “As I speak, there<br />

are more than 2 000 private producers<br />

in <strong>Cape</strong> Town,” says Winde.<br />

These range from a solar panel on<br />

the roof of a single private household<br />

to major installations in the<br />

Waterfront. Excess power is sold<br />

to the city.<br />

Winde is lobbying hard for the<br />

national Department of Energy<br />

to allow Saldanha Bay to be a site<br />

for a gas-to-power plant. “There<br />

should be at least 1 000MW at<br />

Saldanha. If the private sector<br />

and investors think it is a bad<br />

idea, then that’s fine.” He clearly<br />

believes that investors will think it<br />

a very good idea to invest in a site<br />

that already has bulk power consumers<br />

like ArcelorMittal Steel. If a<br />

gas plant is built at Saldanha, then<br />

it could be a catalyst for the use<br />

of gas in many other sectors such<br />

as manufacturing and residential.<br />

“Then gas plays a different<br />

role in the economy,” says Winde.<br />

“That is enabling a whole process<br />

and it complements the work we<br />

are doing. If you have solar and<br />

wind power, then you need the<br />

base, something to cover the<br />

peak hours: gas can do that.”<br />

About 100km south of<br />

Saldanha, on the West Coast road<br />

to <strong>Cape</strong> Town, is Atlantis, where<br />

a green economy manufacturing<br />

hub is under construction.<br />

A number of companies have<br />

already invested in making wind<br />

turbines, ladders and platforms<br />

for turbines and solar panels<br />

among other things. With about<br />

R680-million already invested,<br />

and another R1-billion projected, the renewable energy economy is<br />

making an impact.<br />

There are many manufacturing opportunities. A pilot plant to investigate<br />

one of the more sophisticated aspects of solar technology is<br />

operating at the Techno Park in Stellenbosch. Photovoltaic Technology<br />

Intellectual Property (PTiP) and German engineering company Singulus<br />

Technologies have started making thin-film solar modules.<br />

Funding for the project’s infrastructure came from the Technology<br />

Innovation Agency, a unit of the Industrial Development Corporation<br />

(IDC), and Stellenbosch University.<br />

The <strong>Cape</strong> Peninsula University of Technology’s Energy Institute is a<br />

leader in research in the field of electricity, and is also responsible for<br />

a regional publication relating to domestic use, DUE.<br />

A unit based on the Bellville campus of CPUT teaches courses<br />

related to renewable energy. The South African Renewable Energy<br />

Technology Centre (SARETEC) offers courses such as Wind Turbine<br />

Service Technician and Solar Photovoltaic Service Technician and<br />

various short courses such as Bolting Joint Technology. By the end<br />

of 2016, more than 1 500 people had attended courses at SARETEC.<br />

In November 2016, SARETEC became the home of the Solar<br />

Academy, with the support of German solar energy company,<br />

maxx|solar energy.<br />

The Centre for Renewable and Sustainable Energy Studies is at the<br />

University of Stellenbosch, while the University of <strong>Cape</strong> Town has the<br />

Energy Research Centre. The University of the <strong>Western</strong> <strong>Cape</strong> is doing<br />

research on the possibilities of hydrogen as an energy source.<br />

A programme run by Green <strong>Cape</strong> claims to have engineered 21 000<br />

tons in fossil greenhouse gas savings over five years through its <strong>Western</strong><br />

<strong>Cape</strong> Industrial Symbiosis Programme (WISP). This is the equivalent<br />

to annual electricity usage in 5 600 South African households. WISP<br />

is a network of 300 businesses to share unused resources and create<br />

value from “waste”.<br />

ONLINE RESOURCES<br />

African Wind Energy Association: www.afriwea.org<br />

Eskom: www.eskom.co.za<br />

Green <strong>Cape</strong>: www.greencape.co.za<br />

National Department of Energy: www.energy.gov.za<br />

National Nuclear Regulator: www.nnr.co.za<br />

South African Photovoltaic Industry Association:<br />

www.sapvia.co.za<br />

South African Wind Energy Association: www.sawea.org.za<br />

Southern African Solar Thermal and Electricity Association (CSP):<br />

www.sastela.org<br />

Sustainable Energy Africa: www.sustainable.org.za<br />

95 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Water<br />

Farms and factories are becoming water wise.<br />

SECTOR INSIGHT<br />

WWF-South Africa and<br />

Woolworths are working on<br />

rural water plans.<br />

• UCT researchers have<br />

won a Water Research<br />

Commission prize.<br />

• French company Veolia<br />

is installing desalination<br />

plants.<br />

In 2030 South African demand for water will be 17% greater than<br />

supply. That is the verdict of the 2030 Water Resources Group.<br />

The <strong>Western</strong> <strong>Cape</strong>’s dams were at 61% in the fourth quarter of<br />

2016, against 90% at the same time in 2015. The biggest provincial<br />

dam, which is <strong>Cape</strong> Town’s main source of water as well as providing<br />

irrigation for farms, Theewaterskloof, stood at 52%, 14% down on the<br />

previous year. Elsewhere:<br />

• Garden Route Dam (George) was at 72% versus 100% in 2015<br />

• Kammanasie Dam (Oudtshoorn) was at 29% versus 100% in 2015<br />

• Hartebeestkuil Dam (Mossel Bay) was at 52% versus 88% in 2015<br />

In November 2016, the City of <strong>Cape</strong> Town introduced level-three<br />

water restrictions, banning all irrigation systems and hosepipes for<br />

domestic lawns.<br />

The good news is that South Africa and the <strong>Western</strong> <strong>Cape</strong> are doing<br />

something about the situation. Times of crisis can also be times when<br />

innovation and entrepreneurship come to the fore.<br />

The Water Resources Group, an international consortium of private<br />

companies, agencies and development banks, has established a South<br />

African chapter, the Strategic Water Partners Network (SWPN). It has a<br />

focus on three things: water efficiency and leakage reduction; effluent<br />

and wastewater management; and the agricultural supply chain.<br />

SWPN aims to support government and programmes have been put<br />

in place in all three areas that are showing results.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial Government has a two-pronged<br />

strategy: new water infrastructure for agriculture and water demand<br />

management programmes to<br />

improve efficiency.<br />

In terms of its water infrastructure<br />

and maintenance of its<br />

wastewater treatments plants,<br />

the <strong>Western</strong> <strong>Cape</strong> fares relatively<br />

well compared to most other<br />

South African regions. Only 3%<br />

of households reported to the<br />

General Household Survey of<br />

2014 that their water services had<br />

been interrupted. Fully 87.7% were<br />

satisfied with water delivery services.<br />

Access to water and sanitation<br />

in the province is generally<br />

very good.<br />

A provincial scheme to improve<br />

rivers has been outlined<br />

by Premier Helen Zille. The River<br />

Improvement Plan ultimately<br />

seeks to improve the lives of<br />

people living alongside rivers,<br />

but also ensure that river<br />

water quality enhances the region’s<br />

economy. The fruit, grape<br />

and wine sectors need good<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

96


OVERVIEW<br />

quality water, as do agri-processing<br />

concerns. Programmes<br />

include upgrading wastewater<br />

treatment plants, clearing<br />

alien vegetation and<br />

regular monitoring of water<br />

quality. The scheme encompasses<br />

the Olifants-Doorn and<br />

Breede rivers.<br />

The <strong>Western</strong> <strong>Cape</strong><br />

Department of Agriculture has<br />

launched a climate action plan<br />

called Smart Agri, which includes<br />

doing studies on conservation<br />

agriculture. The plan draws on<br />

the expertise of academics and<br />

companies in the private sector.<br />

One of the possible plans<br />

to add to the supply of the<br />

<strong>Western</strong> <strong>Cape</strong> Water Supply<br />

System is the Berg River–Voëlvlei<br />

Augmentation Scheme. This<br />

would entail pumping water<br />

out of the Berg River in winter,<br />

having first allowed for enough<br />

water to cover the ecological water<br />

requirements of the river and<br />

the estuary.<br />

The last time a severe drought<br />

affected the province, many of<br />

the towns along the Garden<br />

Route installed desalination and<br />

recycling plants. More than one<br />

of these facilities had to close<br />

because not enough care had<br />

been taken in choosing the site,<br />

so environmental issues and silting<br />

stymied the plans.<br />

However, Mossel Bay has a<br />

functioning plant and Lamberts<br />

Bay on the West Coast will soon<br />

have a 1 700m³ per day plant. This<br />

will be the sixth such plant installed<br />

by French company Veolia<br />

Water Solutions & Technologies.<br />

Other sites include Saldanha,<br />

Knysna and Plettenberg Bay.<br />

A water stewardship programme has been introduced in the Breede<br />

River catchment area. WWF-South Africa, Woolworths and Marks and<br />

Spencer are collaborating on a scheme encouraging stone fruit farmers<br />

to put in place systems that reduce risk to water supply and quality.<br />

WWF-SA also has a Water Balance Programme that works to increase<br />

the amount of clean water coming into the environment. Woolworths’<br />

contribution to this plan involves getting rid of alien vegetation on the<br />

farm where it sources its wines (Paul Cluver Wines) and in the Leeu<br />

River catchment area.<br />

Improving quality<br />

The introduction by the National Department of Water and Sanitation<br />

(DWS) and the Water Institute of South Africa (WISA) of the Blue and<br />

Green Drop Awards has been very successful. The nation’s municipalities<br />

receive scores reflecting how well they are doing in terms of<br />

providing clean water.<br />

In order to win a Drop Award (Blue for water quality, Green for waste<br />

treatment), water systems have to score 95% or higher. The DWS has allocated<br />

R4.3-billion to helping municipalities deliver water. The Interim<br />

Water Supply Programme will concentrate on 23 district municipalities.<br />

The awards are run by WISA with the help of consulting engineering<br />

group Aecom SA. Aecom assists municipalities in preparing for the<br />

audit and has a wide range of capabilities within the water-treatment<br />

sector, including bulk and reticulation water and sewage pipelines.<br />

The City of <strong>Cape</strong> Town won a C40 Cities Award in 2015 for its programme<br />

to conserve and manage demand for water.<br />

The Water Institute of South Africa has 1 800 members. It does<br />

research, keeps its members up-to-date and runs conferences. As in<br />

most areas of life in South Africa, environmental standards are set and<br />

maintained by the South African Bureau of Standards (SABS).<br />

The University of <strong>Cape</strong> Town’s Engineering and Built Environment<br />

Faculty has won a Water Research Commission prize for its work on<br />

the treatment of acid mine drainage.<br />

ONLINE RESOURCES<br />

Breede-Overberg Catchment Management Agency:<br />

www.breedegouritzcma.co.za<br />

National Department of Water and Sanitation: www.dws.gov.za<br />

South African Water Research Commission: www.wrc.org.za<br />

Trans-Caledon Tunnel Authority: www.tcta.co.za<br />

Water Institute of Southern Africa: www.wisa.org.za<br />

Water Resources Group: www.2030wrg.org<br />

97 WESTERN CAPE BUSINESS <strong>2017</strong>


BGCMA<br />

Situated in the southwestern corner of South Africa,<br />

the Breede-Gouritz Catchment Management<br />

Agency (BGCMA) plays a pivotal role in protecting,<br />

developing, conserving, managing and controlling<br />

water resources. Formerly known as the Breede-<br />

Overberg Catchment Management Agency, the Gouritz<br />

region was recently incorporated within the mandate.<br />

The merger came after the former Minister of Water<br />

Affairs, Edna Molelwa, approved the expansion of the<br />

boundary and area of operation of Breede-Overberg<br />

CMA in terms of Section 78(4) of the National Water<br />

Act, 1998 (Act No 36 of 1998). The area of operation<br />

of the Breede-Gouritz Catchment Management<br />

Agency includes the previous Breede-Overberg Water<br />

Management Area and the Gouritz Catchment.<br />

“The strategic focus of the agency incorporates<br />

water resource planning, water use management, institutional<br />

development, water resource protection<br />

and water allocation reform,” says CEO Phakamani<br />

Buthelezi. “The vision of the BGCMA, ‘quality water<br />

for all, forever’, was developed around the question<br />

of how the BGCMA can make a positive contribution<br />

and engender meaningful change within a broader<br />

social context.”<br />

The main elements of the vision are inclusion and<br />

participation of all stakeholders, mediation between<br />

competing environmental and human priorities,<br />

ensuring availability of good quality water and a<br />

responsibility to assist in eradicating poverty.<br />

Buthelezi explains that the BGCMA works closely<br />

with local governments on water management and<br />

water-related services to ensure synergy between the<br />

priorities of the Catchment Management Agency and<br />

the local and district municipalities.<br />

“The BGCMA is the operating arm of the<br />

DWS and its aim is to bring water resource services<br />

in an efficient manner to the inhabitants of<br />

the Breede-Gouritz Water Management Area,”<br />

explains Buthelezi.<br />

“Furthermore, the BGCMA works closely with<br />

other government departments to ensure compliance<br />

in all water use practices. The BGCMA provides<br />

comments on rezoning and consolidations to<br />

relevant municipalities, and on environmental impact<br />

studies and basic assessment reports in conjunction<br />

with the Department of Environmental<br />

Affairs.”<br />

The BGCMA is currently busy with the validation<br />

and verification process where all water users will be<br />

evaluated for legal compliance. This process will assist<br />

with the management of water allocations in the<br />

Breede-Gouritz Water Management Area (WMA).<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

98


Our Vision is<br />

“Quality water for all, forever”<br />

Our Mission is to manage our water resources<br />

responsibly through stakeholder engagement<br />

and to devolve decision making to the lowest<br />

level for the benefi t of all water users in the<br />

Breede-Gouritz area.<br />

Breede-Gouritz CMA is responsible for:<br />

• Water Resource Planning<br />

• Water Allocation Reform<br />

• Water Use Management<br />

• Institutional Management<br />

• Resource Protection<br />

For more information, contact us on:<br />

Breede-Gouritz CMA (BGCMA)<br />

51 Baring Street<br />

Worcester, 6850<br />

101 York Street (New Offi ce)<br />

George, 6529<br />

Breede-Gouritz CMA<br />

Private Bag X 3055<br />

Worcester, 6849<br />

Ms Malehlohonolo Mlabateki -<br />

Public Relations and Marketing Offi cer<br />

Tel: (023) 346 8000<br />

Fax: (023) 347 2012<br />

E-mail: mmlabateki@breedegouritzcma.co.za<br />

www.breedegouritzcma.co.za


OVERVIEW<br />

Manufacturing<br />

Diesel locomotive engines are powering up in Montague Gardens.<br />

A<br />

diverse manufacturing sector contributes 15% to the<br />

<strong>Western</strong> <strong>Cape</strong>’s GDP and the renewable energy sector holds<br />

huge potential for further growth.<br />

Growth in the manufacturing sector between 2003 and<br />

2013 averaged 2.2% and the Provincial Economic Review and Outlook<br />

(<strong>Western</strong> <strong>Cape</strong> Treasury 2015) predicts the same level of growth<br />

to 2020.<br />

A recent Moody’s report on the green economy in Africa states<br />

that South Africa is growing the fastest in that sector in Africa, and<br />

at one of the fastest rates in the world. The <strong>Western</strong> <strong>Cape</strong> is driving a<br />

green economy manufacturing strategy focussed on the suburb of<br />

Atlantis. At this stage, some 70% of South Africa’s manufacturing in<br />

renewables is happening in the <strong>Western</strong> <strong>Cape</strong>.<br />

Even an established investor such as fridge manufacturer Hisense<br />

is exploring ways to make its product greener, either through its own<br />

processes or encouraging its suppliers to go down that route.<br />

SECTOR INSIGHT<br />

Seda has launched an<br />

enterprise incubator at False<br />

Bay TVET College.<br />

• <strong>Cape</strong> Town’s catamaran<br />

builders are world leaders.<br />

Investment agency Wesgro<br />

has noted the following major investments<br />

into the <strong>Western</strong> <strong>Cape</strong><br />

since 2003: Hisense, Kimberly-<br />

Clark, Tellumat, Exar Corporation,<br />

GlaxoSmithKline and General<br />

Electric.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

100


OVERVIEW<br />

Within the <strong>Western</strong> <strong>Cape</strong><br />

manufacturing sector, the<br />

agri-processing subsector (including<br />

food and beverages<br />

and tobacco) is the largest employer<br />

(24%) followed by metals,<br />

metal products, machinery and<br />

equipment at 19%.<br />

The <strong>Western</strong> <strong>Cape</strong> Provincial<br />

Government has identified agriprocessing<br />

as a key growth sector,<br />

one of those most likely to<br />

deliver economic growth and<br />

jobs. For too many years, jobless<br />

growth was the norm.<br />

An initiative of the Small<br />

Enterprise Development Agency<br />

(Seda) aims to boost manufacturing<br />

in metal fabrication and<br />

furniture. False Bay TVET College<br />

will host a Rapid Incubator and<br />

Centre for Entrepreneurship<br />

(CFE) which will teach students<br />

how to start businesses<br />

and how to make their<br />

products marketable.<br />

Areas<br />

Manufacturing in the <strong>Cape</strong><br />

Winelands District makes the<br />

single biggest GDP contribution<br />

(19%) to provincial GDP. Many small<br />

towns in the rural areas have some<br />

kind of agri-processing facility.<br />

Bonnievale has two cheese<br />

factories, Mooivallei Suiwel and<br />

Parmalat, which have recently<br />

decided to increase the size of<br />

their operation in the Breede<br />

River Valley.<br />

Iron production at Saldanha<br />

includes hot-rolled coil produced<br />

by ArcelorMittal (about<br />

two thirds of which is exported<br />

to other countries in Africa) and<br />

cold-rolled and galvanised steel by DSP, a joint venture between<br />

South Africa’s Industrial Development Corporation (IDC) and a Belgian<br />

company, Duferco.<br />

Within the City of <strong>Cape</strong> Town there are several areas where<br />

manufacturing takes place, including Epping Industria, Blackheath<br />

Industria, Bellville South, Paarden Island, Maitland and Ndabeni,<br />

Airport Industria, Parow Industria and Montague Gardens.<br />

A City of <strong>Cape</strong> Town survey has found that Montague Gardens<br />

has 308 manufacturing concerns, more than any other area. It is<br />

also well suited to logistics and distribution, being near to the N1<br />

highway and to the road north along the West Coast.<br />

MTU Friedrichshafen has spent R50-million on upgrading its<br />

engine business at Montague Gardens. MTU is the core business<br />

of Rolls-Royce Power Systems, a division of Rolls-Royce plc. The<br />

overhaul was done as preparation to make 232 diesel engines for<br />

Transnet Freight Rail. Additional training for staff has been provided<br />

on site and in Germany, and an extra 20 staff have been added to<br />

deal with the order.<br />

MTU’s other facility in the <strong>Cape</strong> is a maintenance and support<br />

centre at the South African Navy base at Simon’s Town. MTU also<br />

has a strong presence in the mining sector.<br />

According to the City, the industries in which <strong>Cape</strong> Town has<br />

a competitive advantage include fishing, clothing and textiles,<br />

electronics, furniture and wood product manufacturing – in addition<br />

to the more service-driven hospitality, finance and business<br />

services industries.<br />

Food and beverages<br />

The combination of excellent and plentiful agricultural produce, good<br />

manufacturing capacity and a skilled workforce give the <strong>Western</strong><br />

101 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

<strong>Cape</strong> a competitive advantage in the food and beverages sector.<br />

A sophisticated transport infrastructure system allows it to service<br />

international markets.<br />

Famous Brands has bought a <strong>Western</strong> <strong>Cape</strong> brand in its drive for<br />

greater backward integration. Lamberts Bay Foods supplied Famous<br />

Brands restaurants with chips for two decades. With its purchase<br />

from Oceana, Famous Brands now has greater control over one of<br />

the vital items on the menu of its 26 restaurant brands, including<br />

Wimpy, Steers, Fishaways and Mugg & Bean. Lamberts Bay Foods<br />

sources potatoes from all over South Africa, but its proximity to the<br />

potato-growing Sandveld region is helpful. A meat-processing plant<br />

in <strong>Cape</strong> Town supplies the group with meat patties, ground beef,<br />

chicken cubes and fillets. The Famous Brands logistics centre in the<br />

<strong>Western</strong> <strong>Cape</strong> services 308 restaurants six days a week.<br />

British American Tobacco, which has about 65% of the legal<br />

domestic market, has its administrative headquarters at the V&A<br />

Waterfront in <strong>Cape</strong> Town.<br />

The wheat-growing areas of the Swartland host several mills such<br />

as Sasko’s facility in Malmesbury. Bokomo has several manufacturing<br />

facilities: Atlantis (Weetbix cereals); Epping (oats and baking facilitiy);<br />

Ndabeni near Pinelands (Moir’s Jelly and custard and instant puddings);<br />

Worcester (dried fruit and cake mix); Bonnievale (Werda salads);<br />

Malmesbury (Sugarbird glace fruit and jams). Safari Vinegar is based<br />

in the Strand and there are two<br />

Heinz manufacturing plants at<br />

Wellington and Atlantis.<br />

Two of the biggest chickenprocessing<br />

facilities are located<br />

on the N7 highway to<br />

Malmesbury (Tydstroom) and<br />

on the N1 to Worcester (Rainbow<br />

Chickens). The <strong>Western</strong> <strong>Cape</strong> has<br />

about 16 000 commercial pork<br />

sows and produces a quarter of<br />

South Africa’s milk.<br />

Willards has a factory in<br />

Goodwood, in nearby Parow<br />

there is a Simba factory and local<br />

chip and snack manufacturer<br />

Messaris, which has been in operation<br />

since 1898, has a facility in<br />

Elsies River. Nestlé produces condensed<br />

milk and milk powder in<br />

Mossel Bay and canned pet food<br />

in <strong>Cape</strong> Town. Tiger Brands makes<br />

mayonnaise in Bellville and have<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

102


OVERVIEW<br />

also invested heavily in its prepared<br />

meals plant in <strong>Cape</strong> Town.<br />

SABMiller’s Newlands brewery<br />

is one of the busiest in the country<br />

as it is responsible for providing<br />

product for a very large<br />

geographical area.<br />

Coca-Cola bottler and distributor<br />

Peninsula Beverage has<br />

three plants, at Parow, Athlone<br />

and Vredendal on the West Coast,<br />

and employs 1 300 people.<br />

Bashew’s cooldrinks has been<br />

a <strong>Cape</strong> Town favourite since 1899<br />

and the company’s returnable<br />

bottle celebrated a 40th anniversary<br />

in 2010. Quality Beverages<br />

is a much more recent entrant<br />

to the market but its two main<br />

products, Jive and Aqua Blue, are<br />

doing well.<br />

The Ceres Beverage Company<br />

(TCBC) has three major divisions<br />

producing fruit juices, concentrate<br />

and carbonated soft drinks. Twizza<br />

has a factory in Bellville South.<br />

Boat building<br />

The <strong>Western</strong> <strong>Cape</strong> boat-building<br />

sector is concentrated in greater<br />

<strong>Cape</strong> Town. Several companies<br />

are internationally competitive<br />

in the catamaran and yacht markets<br />

and there is a good spread of<br />

firms making large custom boats,<br />

inflatable boats and commercial<br />

craft. Associated sectors include<br />

sail-making, engines, repairs<br />

and masts.<br />

Key export markets include the<br />

USA, Europe and the Caribbean<br />

with increased interest being<br />

shown from Asia and Australia.<br />

Nautic Africa makes larger vessels,<br />

including patrol, defense, oil<br />

and gas platform, and commercial vessels. It is also active in service<br />

and support, parts and spares and vessel leasing and management.<br />

Robertson & Caine’s manufacturing facility in Woodstock produces<br />

three boats a week for the international market. With a staff<br />

complement of 1 350, a record of having launched more than<br />

1 300 vessels and a subsidiary company in Tampa, Florida, the company<br />

is a world leader in power catamarans and sailing catamrans.<br />

Atlantis is home to Admiral Boat Manufacturers and Phoenix<br />

Marine, both specialist catamaran manufacturers, and Celtic Yachts<br />

who make catamarans and cruising yachts. Ullman Sails makes sails<br />

in Maitland while Two Oceans Marine Manufacturing constructs its<br />

catamarans on the Foreshore.<br />

The Whisper Boat Building Academy is located at the False Bay<br />

TVET College.<br />

ONLINE RESOURCES<br />

<strong>Cape</strong> Town Boatbuilding and Technology Initiative (CTBi):<br />

www.ctbi.co.za<br />

<strong>Cape</strong> Chamber of Commerce: www.capetownchamber.com<br />

National Agricultural Marketing Council: www.namc.co.za<br />

National Department of Trade and Industry: www.thedti.gov.za<br />

South African Boatbuilders Export Council (SABBEX):<br />

www.sabbex.co.za<br />

South African Textile Federation: www.texfed.co.za<br />

Wesgro: www.wesgro.co.za<br />

103 WESTERN CAPE BUSINESS <strong>2017</strong>


Seascape Stainless<br />

Specialised manufacturer of stainless steel and aluminium components<br />

and products for the marine, automotive and agricultural industries.<br />

Seascape Stainless Steel Services and Formatube<br />

(Pty) Ltd (an ISO 9001:2015 certified<br />

company) have recently merged operations.<br />

Seascape Stainless Steel Services has been<br />

the preferred supplier to the marine industry<br />

for a number of years, and with the addition of<br />

Formatube under our brand, we can now offer<br />

the specialised tube bending and manipulation<br />

services in stainless steel and aluminium<br />

that has won several awards.<br />

In the early years of its existence, Seascape<br />

Stainless Steel Services focused on the yachting<br />

industry’s very particular stainless steel<br />

needs. It has subsequently extended its specialist<br />

manufacturing services to products<br />

suitable for a number of other industries.<br />

Formatube is renowned for its ability to<br />

bend piping without welding it, resulting in a<br />

finished product that has a smaller degree of<br />

ovality than most competitor products.<br />

Capitalising on the success of the two businesses<br />

and to accommodate our growth, we<br />

are now operating from a new state-of-theart<br />

facility in Blackheath in the <strong>Western</strong> <strong>Cape</strong>.<br />

We also intend expanding operations into<br />

Europe in <strong>2017</strong>.<br />

What we do<br />

Our skilled team of engineers and artisans with decades<br />

of combined experience are able to provide a range of<br />

specialist services including:<br />

• Supply and distribution<br />

• Tube forming and manufacture<br />

• Manipulations<br />

• Cutting<br />

• Rolling<br />

• Notching<br />

• Precision bending<br />

• Mandrel bending<br />

• Customised designs<br />

• Precision manufacturing of stainless steel and<br />

aluminium marine accessories<br />

• Polishing<br />

• International trade in required products<br />

• Guillotines and press-brake cutting and bending<br />

• Laser cutting<br />

CONTACT US TO DISCUSS YOUR MANUFACTURING<br />

OR TUBE BENDING REQUIREMENTS.<br />

TEL: +27 21 905 0087 | FAX : 086 695 0635<br />

EMAIL: sales@seascapesss.com or koorts@seascapesss.com


Steel Services<br />

Industries supplied<br />

We are able to supply customised, high-quality<br />

products to the following industries:<br />

• Marine<br />

• Automotive<br />

• Agricultural<br />

• Architectural<br />

• Petrochemical<br />

• Aerospace<br />

• Pharmaceutical<br />

• Food and Wine<br />

Footprint<br />

We have been supplying the local market for 15 years and the international market for eight years.<br />

Our products are being supplied to a range of countries including the United Kingdom, the USA, New Zealand,<br />

Australia, Norway, the Maldives, Seychelles, Mauritius and a number of other African and European countries.<br />

MEMBERS OF:<br />

Sassda<br />

MEMBER<br />

FIND US AT:<br />

26 Cincaut Road,<br />

Saxenburg Industrial Park 1,<br />

Blackheath, <strong>Cape</strong> Town


OVERVIEW<br />

Construction and property<br />

development<br />

Construction is on the rise in the <strong>Western</strong> <strong>Cape</strong>.<br />

SECTOR INSIGHT<br />

3 000 housing units are<br />

planned for the old Conradie<br />

Hospital site.<br />

• Two new estates have<br />

been built in George.<br />

Commercial and residential development plans totalling<br />

654 000m² were approved in the <strong>Western</strong> <strong>Cape</strong> in<br />

2015, a 14% rise over the previous year and a figure<br />

almost nine times greater than that for the province<br />

of Gauteng.<br />

The construction sector has grown steadily over the past several<br />

years and is expected to be the fastest-growing sector in the<br />

next five years, especially in the City of <strong>Cape</strong> Town. Infrastructure<br />

spending and residential developments are the key drivers in this<br />

trend (<strong>Western</strong> <strong>Cape</strong> Treasury).<br />

The hotel-led construction boom in the central business district<br />

of the City of <strong>Cape</strong> Town is the subject of a separate article<br />

elsewhere in this publication. A large hotel and conference centre<br />

development was opened in early 2016 at Century City.<br />

House prices in <strong>Cape</strong> Town are moving upwards faster than<br />

anywhere else in the country, both in terms of inflation (10.35%<br />

vs 5.59%, Lighthouse) and average house prices (11.89% vs 5.6%,<br />

Pam Golding). A six-bedroomed Clifton house sold for a record<br />

R90-million in November 2016.<br />

The economic development department of the City of <strong>Cape</strong> Town<br />

has done a survey of 23 of the city’s industrial areas, designed to help<br />

the decision-making process for<br />

investors and businesses wanting<br />

to expand. The report found<br />

that there were 7 229 businesses<br />

in the 23 areas and that industrial<br />

property was concentrated in two<br />

areas: Voortrekker Road and the<br />

metropolitan south-east including<br />

the airport precinct, Epping<br />

and Philippi.<br />

The CBD hosts 39% of office<br />

space in <strong>Cape</strong> Town, with<br />

Bellville/Tygerberg accounting<br />

for 25%. The fairly new development<br />

at Century City has already<br />

secured 12% of office accommodation<br />

with the established suburb<br />

of Pinelands (which houses a<br />

huge Old Mutual office) responsible<br />

for 11%.<br />

The first <strong>Western</strong> <strong>Cape</strong>specific<br />

real estate investment<br />

trust (REIT) listed<br />

on the stock exchange in<br />

November 2016. Spear Reit’s<br />

R1.5-billion portfolio comprises<br />

mostly industrial property (46%)<br />

with retail and office space each<br />

making up 22%.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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OVERVIEW<br />

Growth areas<br />

Brackengate 2 is a new industrial<br />

area that has been developed<br />

east of the R300 highway. It is<br />

intended as a warehousing and<br />

distribution node, given the easy<br />

access to the N1 and N2 highways.<br />

Shoprite has a distribution centre<br />

at the site. Brackengate <strong>Business</strong><br />

Park, the first phase of the development,<br />

has tenants such as Fruit<br />

and Veg City, Docufile, Pearson<br />

and British American Tobacco.<br />

Voortrekker Road is the subject<br />

of several interventions to<br />

encourage bulking up (businesses<br />

and residential). The<br />

Greater Tygerberg Partnership is<br />

working to provide a catalyst for<br />

new developments that will build<br />

on the area’s existing strengths:<br />

transport links, medical facilities,<br />

retail, motor dealerships and<br />

residential.<br />

Possible construction projects<br />

could arise out of the fact that<br />

about 100 000 students are in<br />

the area. The Greater Tygerberg<br />

Partnership has done a study<br />

on students’ accommodation<br />

needs and encouraged building<br />

owners to cater to this need.<br />

Two buildings have recently<br />

been purchased with the intention<br />

of turning them into student<br />

accommodation.<br />

The Voortrekker Road Corridor<br />

already has services and an established<br />

built environment<br />

but it also has some dilapidated<br />

structures and has lots of open<br />

spaces. In other words, it has lots<br />

of potential.<br />

A pilot scheme is being<br />

launched on the 22ha site of the<br />

old Conradie Hospital, which lies not far from Voortrekker Road in the<br />

suburb of Pinelands. A 3 000 housing unit development is planned<br />

there, which will align with the provincial government’s concept of Live,<br />

Work and Play. With the state (provincial or local government) putting<br />

in the bulk infrastructure, costs for developers would be significantly<br />

reduced – the quid pro quo is that the developer must then set aside<br />

a certain number of housing units (49%) to grant-funded housing.<br />

Spatial planning also underpins the thinking behind the concept<br />

of an “aerotropolis”, the idea of using a city’s airport to be a catalyst for<br />

growth across multiple sectors. The airport’s cluster of industries and<br />

storage facilities should be linked to the metropolitan south-east and<br />

two sections in Philippi: the industrial area and the horticultural area.<br />

An area that continues to grow in terms of residential property<br />

is the West Coast. With mountains to the east, it is logical that areas<br />

north of <strong>Cape</strong> Town will grow: the only constraint is access to water.<br />

Blouberg, Parklands and Sunningdale continue to attract good houses<br />

for residential property. Several schools have been built in the area.<br />

A developer has put forward a plan to build a city near Melkbosstrand.<br />

The ambitious plan is called Wescape. The MyCiti bus service with its<br />

own dedicated lane is making it easier to live in suburbs along the West<br />

Coast. MyCiti also serves the Century City development.<br />

George on the Southern <strong>Cape</strong> coast has seen some substantial new<br />

developments, including a private hospital built for MediClinic, some<br />

new malls and a number of estates being completed. The famous<br />

Fancourt facility, which incorporates residential holiday accommodation<br />

and a hotel, also has three golf courses (but one has a very<br />

exclusive membership). Kingswood is another premier golf estate in<br />

George. Pam Golding was selling a three-bedroomed townhouse at<br />

Kingswood in November 2016 for R2.35m.<br />

Newer estates have been built on the eastern edge of George,<br />

near to the recently constructed mall, the Eden Meander Lifestyle<br />

Centre. Kraaibosch estate will have four options for potential buyers,<br />

including a retirement village. The Blue Mountain Lifestyle Estate has<br />

similar options.<br />

ONLINE RESOURCES<br />

Construction Industry Development Board: www.cidb.org.za<br />

Greater Tygerberg Partnership: http://gtp.org.za/<br />

Master Builders and Allied Trades Association, <strong>Western</strong> <strong>Cape</strong>:<br />

www.mbawc.org.za<br />

SA Estate Agency Affairs Board: www.eaab.org.za<br />

SA Institute of Architects: www.saia.org.za<br />

SA Institute of Valuers: www.saiv.org.za<br />

SA Property Owners Association: www.sapoa.org.za.<br />

107 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Tourism<br />

New flights are bringing greater numbers of tourists to the <strong>Western</strong> <strong>Cape</strong>.<br />

The <strong>Western</strong> <strong>Cape</strong> attracts huge numbers of tourists every year and<br />

this is a sector where positive growth has already created many job<br />

opportunities. Every kind of tourism is doing well, from leisure and<br />

adventure tourism to meetings and conferences.<br />

Tourism grew at 6.6% for the five years to 2014 and generated jobs<br />

growth in the same time period of 7.7%. The sector employs 204 000 people<br />

in formal jobs and is worth about R17-billion to the regional economy.<br />

A project to increase the number of seats available on aeroplanes<br />

flying into <strong>Cape</strong> Town International Airport has reaped remarkable<br />

success. Between July 2015 and December 2016 the <strong>Cape</strong> Town Air<br />

Access programme secured an increase in 408 400 direct two-way<br />

seats to <strong>Cape</strong> Town from destinations such as Dubai (140 000), Turkey<br />

(110 000), Ethiopia (80 000) and the Netherlands (30 000). A total of<br />

162 000 tourists travelled to the <strong>Western</strong> <strong>Cape</strong> from the USA; arrivals<br />

at the <strong>Cape</strong> Town International Airport increased 16% year-on-year<br />

in 2015.<br />

The airport regularly wins accolades such as Best Airport in Africa<br />

and the total number of passengers passing through the airport has<br />

been above eight-million every year since the FIFA football World Cup<br />

in 2010, with the figure approaching 10-million in 2015/16.<br />

SECTOR INSIGHT<br />

The <strong>Cape</strong> Town International<br />

Convention Centre will be<br />

twice as large in <strong>2017</strong>.<br />

• Scheduled flights are<br />

available to Plettenberg<br />

Bay.<br />

• Hilton Hotels and Resorts<br />

runs a resort in Knysna.<br />

• <strong>Cape</strong> Town’s Foreshore<br />

is alive with new tourism<br />

developments.<br />

George Airport had a total of<br />

about 720 000 passengers last<br />

year. Airlink, SA Express and kulula<br />

are the airlines that fly into George.<br />

It serves as a tourism hub for the<br />

Southern <strong>Cape</strong> region, includ-<br />

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OVERVIEW<br />

ing destinations such as Knysna,<br />

Oudtshoorn and Plettenberg Bay.<br />

CemAir offers scheduled flights to<br />

Plettenberg Bay.<br />

Several strategies are being<br />

adopted to further improve the<br />

province’s tourist offering and<br />

increase numbers. These include<br />

a service excellence programme<br />

where a town’s residents are encouraged<br />

to act as tourism ambassadors.<br />

A pilot project was successfully<br />

launched in Clanwilliam,<br />

where everyone in the town,<br />

including shop clerks and petrol<br />

station attendants, joined in.<br />

Work is being done on improving<br />

the system of visa approvals<br />

and on linking various sites associated<br />

with the late President<br />

Nelson Mandela. Halaal tourism<br />

also holds tremendous potential.<br />

One of the reasons that tourists<br />

visit the <strong>Western</strong> <strong>Cape</strong> is the<br />

quality of its beaches. The province<br />

has 29 Blue Flag-accredited<br />

beaches, an international quality<br />

standard that covers 33 different<br />

measures. Ten beaches in greater<br />

<strong>Cape</strong> Town together with the likes<br />

of Santos (Mossel Bay), Grotto<br />

(Hermanus), Witsand (Hessequa)<br />

and Wilderness (Eden) have made<br />

the grade. A further five marinas<br />

have qualified for the programme,<br />

the local version of which is run<br />

by the Wildlife and Environment<br />

Society of South Africa.<br />

Hotels and conferences<br />

The capacity of the <strong>Cape</strong> Town<br />

International Conference Centre<br />

(CTICC) is being doubled. The<br />

R832-million expansion will add<br />

31 000m², including 10 000m² of<br />

conference and exhibition space. CTICC East (the new section) will<br />

connect to CTICC West via a tunnel (for services) and a skybridge<br />

over the Heerengraght. The new section is expected to open in <strong>2017</strong>,<br />

and will line up along other new Foreshore buildings such as KPMG<br />

Place and the Netcare Christiaan Barnard Memorial Hospital. The<br />

South African Green Building Council has given the CTICC expansion<br />

a Four-Star Green Building rating.<br />

The Foreshore is at the heart of a series of new developments<br />

that are set to have a major impact on the tourism industry. These<br />

include the new Cruise Terminal and the adjacent Yacht Club, a hotel,<br />

residential and commercial complex being developed by the Amdec<br />

Group. This precinct is very close to the entrance to the CTICC and<br />

will be linked to the Waterfront by the extension of the existing canal.<br />

On the other (eastern) edge of the Foreshore, an a major development<br />

is in the works which will include two Marriott hotels. In<br />

the <strong>Cape</strong> Town CBD there are going to be 500 new rooms, courtesy<br />

of two Tsogo Sun hotels, plus a smaller hotel in the De Waterkant<br />

(Capital Mirage). Tsogo Sun already operates several hotels in greater<br />

<strong>Cape</strong> Town, including three full-service hotels in the city centre, the<br />

Cullinan, Southern Sun Waterfront and Southern Sun <strong>Cape</strong> Sun. The<br />

other seven hotels cover five brands in the Tsogo Sun stable.<br />

Elsewhere in the <strong>Western</strong> <strong>Cape</strong>, Tsogo Sun has hotels in Caledon,<br />

Beaufort West, Mossel Bay and Plettenberg Bay.<br />

109 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Outside of the <strong>Cape</strong> Town CBD, a revamp of the Ritz in Sea<br />

Point will add another 220 rooms to the city’s capacity while in<br />

Franschhoek, the last word in luxury has opened as Leeu House<br />

(part of the Leeu Collection). Analjit Singh has also acquired Le<br />

Quartier Français restaurant, one of best known in a town where<br />

outstanding restaurants are plentiful, and a wine label, Mullineux<br />

& Leeu Family Wines.<br />

Protea Hotels, now part of the Marriott Group, has 10 hotels in<br />

<strong>Cape</strong> Town and a further one each in Franschhoek and Stellenbosch.<br />

There are two hotels in George.<br />

Three of the brands of City Lodge Hotel Group are represented<br />

by seven hotels in the <strong>Western</strong> <strong>Cape</strong>, with all but one of the hotels<br />

(the George Town Lodge) being located in <strong>Cape</strong> Town.<br />

Hilton Hotels and Resorts has three <strong>Western</strong> <strong>Cape</strong> properties,<br />

two hotels in <strong>Cape</strong> Town and the Conrad Pezula Resort & Spa on<br />

the eastern head of the Knysna Heads.<br />

The Waterfront will soon be getting two more hotels (Radisson<br />

Red) and the Silo Hotel attached to the Zeitz Museum of<br />

Contemporary Art Africa.<br />

In addition to all of these beds available in <strong>Cape</strong> Town, there are<br />

15 000 properties on Airbnb. A <strong>Western</strong> <strong>Cape</strong> tourism delegation<br />

met with Airbnb in the USA in 2016.<br />

Country Hotels has upgraded the 42-room Clanwilliam Hotel as<br />

part of its plan to roll out good accommodation in smaller towns.<br />

What used to be known as the Hantam Hotel in Calvinia is now<br />

the refurbished Calvinia Hotel and Tankwa Lodge offering 25 airconditioned<br />

rooms and easy access to flower-spotting and<br />

the Tankwa Karoo National<br />

Park. Plett Lagoon Villa on<br />

the Keurbooms Lagoon is<br />

rather different to the rest<br />

of the Country Hotels suite<br />

of hotels in that it is a fivebedroomed<br />

house to rent.<br />

Country Hotels has other hotels<br />

in the Northern <strong>Cape</strong> Province.<br />

Events<br />

The international HSBC Rugby<br />

Sevens tournament was held for<br />

the first time in <strong>Cape</strong> Town in<br />

2015 and was a huge success. The<br />

City of <strong>Cape</strong> Town says that the<br />

tournament attracted more than<br />

100 000 fans, at least 25 000 of<br />

whom were international visitors.<br />

The local economy benefited to<br />

the tune of R539-million. A contract<br />

has been signed to keep the<br />

tournament in the city to 2018.<br />

The <strong>Cape</strong>2Rio yacht race returns<br />

to the <strong>Cape</strong> in January <strong>2017</strong>.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

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OVERVIEW<br />

In the last race in 2014, a total of<br />

eleven of the fleet of 37 boats had<br />

to retire in stormy weather, testament<br />

to the tough nature of the<br />

event. The event first took place in<br />

1971 and since then it has become<br />

a byword for the glamour and<br />

gruelling nature of long-distance<br />

yacht racing. Royal <strong>Cape</strong> Yacht<br />

Club will host the event, which is<br />

sure to boost the coffers of <strong>Cape</strong><br />

Town’s tourism industry.<br />

The Klein Karoo National Arts<br />

Festival (KKNK) is held every year<br />

in Oudtshoorn in April. It attracts<br />

hundreds of artistic productions of<br />

every sort, mostly in Afrikaans, with<br />

attendances normally topping<br />

90 000 festival-goers<br />

ONLINE RESOURCES<br />

<strong>Cape</strong>Nature: www.capenature.co.za<br />

<strong>Cape</strong> Town Tourism: www.capetown.travel<br />

Destinations Expo: www.cadek.co.za<br />

Garden Route and Klein Karoo:<br />

www.visitgardenrouteandkleinkaroo.com<br />

South African Golf Tourism Association: www.sagta.co.za<br />

South African National Parks: www.sanparks.co.za<br />

South African Tourism: www.southafrica.net<br />

Tourism <strong>Business</strong> Council of South Africa: www.tbcsa.travel<br />

Tourism Grading Council: www.tourismgrading.co.za<br />

Wesgro: www.wesgro.co.za<br />

<strong>Cape</strong> to Rio: www.cape2rio<strong>2017</strong>.com<br />

Plettenberg Bay: www.plett-tourism.co.za<br />

Wildlife and Environment Society of South Africa:<br />

www.wessa.org.za<br />

111 WESTERN CAPE BUSINESS <strong>2017</strong>


OVERVIEW<br />

Banking and financial services<br />

The JSE has opened an Exchange Hub in <strong>Cape</strong> Town.<br />

SECTOR INSIGHT<br />

A Stellenbosch bank has expanded<br />

the Big Four to Five.<br />

• International banks are<br />

setting up app development<br />

hubs in <strong>Cape</strong> Town.<br />

The finance and insurance sector contributes 10.9% to provincial<br />

GDP and grew at a rate of 6.4% between 2000 and 2013.<br />

Research done by banking group First National Bank notes<br />

how successful the <strong>Western</strong> <strong>Cape</strong> has been in attracting financial<br />

services companies of every sort. These range from asset managers to<br />

hedge funds, venture capitalists and insurers. The sector outperformed<br />

most other sectors according to the report, and further growth is<br />

anticipated (FNB Chartbook).<br />

The decision by the Johannesburg Stock Exchange (JSE) to open<br />

a JSE Exchange Hub in <strong>Cape</strong> Town confirms the city’s importance<br />

in the financial world. There are eight <strong>Cape</strong> Town-based companies<br />

in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers,<br />

Woolworths, British American Tobacco, Remgro, Shoprite Holdings<br />

and Sanlam.<br />

The head offices of financial firms are dotted all over <strong>Cape</strong> Town.<br />

These include Old Mutual (a huge complex in Pinelands), Foord (also<br />

in Pinelands), Coronation (Newlands), Prudential (Claremont), Sygnia<br />

(Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has<br />

its headquarters in Stellenbosch and is well represented in rural<br />

towns in the province. Even the small rural town of Greyton is home<br />

to Overberg Asset Management.<br />

Insurers such as Santam and<br />

Metropolitan Life are based<br />

in Bellville.<br />

Most of the banking groups<br />

also offer a range of services<br />

such as asset management or<br />

investment advice.<br />

Financial services group Old<br />

Mutual (which has a 54% stakeholder<br />

in Nedbank) is set to create<br />

four stand-alone businesses<br />

out of the Old Mutual Group. This<br />

will allow the UK-based wealth<br />

management business and the<br />

New York-based asset managers<br />

to be free of linkages to the<br />

rand, while the South African<br />

businesses, Nedbank and Old<br />

Mutual Emerging Markets, can<br />

focus on their specialities.<br />

Fintech is the new buzz word<br />

in the world of banking. Barclays<br />

has established a worldwide organisation<br />

to promote the latest<br />

thinking in app development.<br />

Rise has seven outlets around<br />

the world, including one in<br />

Woodstock in <strong>Cape</strong> Town. A<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

112


OVERVIEW<br />

French-funded fintech operation<br />

was launched at Century City in<br />

November 2016.<br />

In 2015, the <strong>Western</strong> <strong>Cape</strong><br />

Provincial Government, the<br />

University of <strong>Cape</strong> Town, Barclays<br />

Africa Group, FirstRand and<br />

Liberty launched the African<br />

Institute of Financial Markets<br />

and Risk Management (AIFMRM).<br />

One of its aims is to meet the<br />

demand for skills by developing<br />

local talent.<br />

Banking<br />

For many decades South Africa<br />

had a retail banking Big Four –<br />

Standard Bank, Nedbank, Absa/<br />

Barclays and First National Bank.<br />

All of them have a strong presence<br />

in the <strong>Western</strong> <strong>Cape</strong>, but<br />

the big news in the sector since<br />

2001 has been the emergence<br />

of Stellenbosch-based Capitec<br />

Bank. Based on Capitec’s results<br />

for 2015/16, <strong>Business</strong>Tech published<br />

a chart giving Capitec the<br />

fourth-most customers, at 7.3-million,<br />

just less than Nedbank and<br />

slightly more than FNB. Standard<br />

Bank (about 11-million) and Absa<br />

(about nine-million) are top of<br />

the list.<br />

With the renewable energy<br />

sector being actively pursued<br />

in South Africa, a whole new<br />

industry in need of funding has<br />

opened up for banks.<br />

Competition among banks<br />

in reaching out to South Africa’s<br />

emerging economy is stiff.<br />

Finscope’s 2014 survey of<br />

South African banking and financial<br />

surveys shows that between<br />

2004 and 2014 a remarkable<br />

eight-million people were connected to the financial system in<br />

some way. Overall, the “financially included” reached 31.4-million (up<br />

from 17.7-million in 2004). In a category called “formally served” which<br />

includes services other than formal banks with branch networks, the<br />

percentage of South Africans so served grew from 50% to 80%; in<br />

the “banked” category (more traditional but including new devices),<br />

the percentage grew from 46% to 75%. This is partly because South<br />

Africa’s formal banking sector has such excellent – and widely spread<br />

– infrastructure.<br />

Among recent innovations designed to reach the unbanked were<br />

Teba Bank’s decision to allow customers to deposit at supermarkets,<br />

Pick n Pay Go Banking (a division of Nedbank), 70% of Absa’s new ATMs<br />

(400 in one year) in poorer areas and Absa’s launch of two mobile<br />

banks. FNB created mobile branches and most of Standard Bank’s<br />

new sites were planned for townships (Finscope).<br />

Absa’s partnership with Thumbzup allows shops to accept card<br />

payments with smartphones and tablets. Absa’s Entry Level and<br />

Inclusive Banking (Elib) branches have proved popular, accounting<br />

for an increasingly high percentage of the bank’s loan book.<br />

Nedbank has Approve-it, which allows customers to accept or<br />

reject an Internet transaction by cellphone.<br />

FNB offers a range of cellphone-banking options and a Facebook<br />

application where cellphone vouchers can be posted on the socialnetworking<br />

site. The eWallet application converts the voucher into<br />

cash or airtime.<br />

Standard Bank’s community-banking initiative offers a low-cost<br />

cellphone-banking service. Retailers can act as agents for the bank,<br />

even in remote rural areas. Shops such as Shoprite, Pep and Spar are<br />

connected, as are certain spazas.<br />

The stokvel (savings clubs) market is estimated at R44-billion and<br />

developing products for this market could be a lucrative outlet for<br />

South African financial services companies.<br />

ONLINE RESOURCES<br />

Alternative Exchange (AltX): www.altx.co.za<br />

Auditor-General South Africa: www.agsa.co.za<br />

Banking Association South Africa: www.banking.org.za<br />

Financial Services Board: www.fsb.co.za<br />

Insurance Institute of South Africa: www.iisa.co.za<br />

Insurance South Africa: www.insurance.za.org<br />

JSE Limited: www.jse.co.za<br />

Post Bank: www.postbank.co.za<br />

South African Reserve Bank: www.resbank.co.za<br />

South African Institute for Chartered Accountants:<br />

www.saica.co.za<br />

113 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

Renewed focus on<br />

improved customer<br />

experience<br />

Provincial Head Retail and <strong>Business</strong> Banking Standard<br />

Bank <strong>Western</strong> <strong>Cape</strong>, Eben Klopper, explains what the bank<br />

is doing to provide the innovation and service that matter<br />

most to customers.<br />

Eben Klopper<br />

What is Standard Bank’s purpose in South Africa?<br />

As a personal and business bank in South Africa, our purpose is to<br />

improve lives and fulfil aspirations across the African continent. We<br />

believe that we can achieve this through our vision, which is to radically<br />

redefine client experience by understanding and delivering what<br />

matters to our customers.<br />

BIOGRAPHY<br />

Eben Klopper, the newly appointed<br />

Provincial Head Retail<br />

and <strong>Business</strong> Banking for the<br />

<strong>Western</strong> <strong>Cape</strong>, is a seasoned<br />

banking professional. Having<br />

started on the bottom rung of<br />

the ladder at Standard Bank in<br />

1990, his progress in the organisation<br />

has seen him fulfi l a<br />

variety of business and commercial<br />

banking roles in four<br />

South African provinces. Prior<br />

to his promotion to Regional<br />

Head he was the Executive:<br />

Head Channel <strong>Business</strong> Banking,<br />

Commercial Banking and<br />

Specialised Sales.<br />

What is your footprint beyond South Africa?<br />

Standard Bank Group prides itself on being a global bank with African<br />

roots. The largest African bank by assets and earnings, it operates in<br />

20 countries on the African continent, including South Africa, as well<br />

as in other selected emerging markets.<br />

The Group’s aim is to grow their presence selectively in high potential<br />

markets in Africa and in other emerging markets, either organically<br />

or, where appropriate, by acquisitions.<br />

In your new role of Provincial Head Retail and <strong>Business</strong><br />

Banking, what is your strategy regarding Standard<br />

Bank’s business in the region?<br />

As a team, our priorities include greater emphasis on customer experience.<br />

We intend to make sure that every customer feels like a VIP; we<br />

will do this by raising our game and getting to know what matters<br />

most to them.<br />

One of the ways in which we will improve customer experience is<br />

through our digital solutions, as these assist customers by freeing up<br />

their time. Something else that will directly impact customers is our<br />

goal of decentralising decision-making so that decisions are made as<br />

close as possible to the “frontline”.<br />

We want to increase our market share in all customer segments<br />

and to build specialist capabilities to serve our small enterprise (SE),<br />

commercial and business banking clients.<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 114


INTERVIEW<br />

What will some of the key focus areas be?<br />

Foreign exchange: In the <strong>Western</strong> <strong>Cape</strong> we will be<br />

driving our foreign exchange (FX) and international<br />

banking capabilities. Standard Bank is relentless in<br />

providing support to our businesses with a view to<br />

improving liquidity and driving growth across the<br />

African continent.<br />

Companies active in the international market,<br />

be it in trade or the provision of services, may find a<br />

Customer Foreign Currency account a useful mechanism<br />

for managing the flows of foreign currency<br />

receipts and payments. It is suitable for businesses<br />

with a high import and export turnover, including<br />

large volumes of shipments of relatively small values.<br />

The <strong>Western</strong> <strong>Cape</strong> presents many international<br />

trade and foreign exchange opportunities, which<br />

can be offered and facilitated by our FX specialists.<br />

They are fully integrated in our <strong>Business</strong> Banking<br />

<strong>Business</strong> Centres to support our Standard Bank and<br />

non-Standard Bank client base.<br />

“OUR RESEARCH INDICATES<br />

THAT TWO OUT OF EVERY 10<br />

BUSINESS CLIENTS ARE KEEN<br />

TO EXPAND TO THE REST OF<br />

AFRICA.”<br />

A game changer, in forex capabilities, is Standard<br />

Bank’s strategic partnership with the Industrial and<br />

Commercial Bank of China. While Standard Bank<br />

already conducts 2.1-million forex trades each<br />

year, the bank’s partnership with the Industrial and<br />

Commercial Bank of China provides a unique ability<br />

to deal Renminbi competitively.<br />

Resident Africa advisor: Our research indicates that<br />

two out of every 10 business clients are keen to expand<br />

to the rest of Africa and we have appointed<br />

someone with valuable Africa experience to act as<br />

a resident advisor to businesses in the province. Our<br />

expert will be able to make recommendations on<br />

doing business in any of the 20 African countries in<br />

which Standard Bank has a presence.<br />

During 2016, in support of our focus on the rest<br />

of Africa, we led two successful trade delegations –<br />

one to East Africa and one to West Africa. This was<br />

a first for us and the initiative was very well received.<br />

Commercial property finance: Another key focus<br />

is commercial property finance. I have been actively<br />

involved in this area over the past few years and<br />

it has been a successful market for the bank, but<br />

there are additional opportunities to explore in the<br />

<strong>Western</strong> <strong>Cape</strong>.<br />

A business’s premises are integral to their trading<br />

operation and it is important that businesses secure<br />

tenure as well as create equity in their investment.<br />

Standard Bank understands the importance of supporting<br />

its customers in all aspects of their business<br />

growth, including where customers are diversifying<br />

from their main business interests to invest in<br />

commercial rental properties.<br />

The <strong>Western</strong> <strong>Cape</strong> commercial property finance<br />

market has continued to show strong growth, outperforming<br />

many of its peers in the country, which<br />

further supports the bank’s focus on the industry<br />

going forward.<br />

Have the needs of and demands from<br />

your key business clients changed in the<br />

past few years or do the challenges they<br />

experience essentially remain the same?<br />

Economic growth has been muted and so<br />

the landscape has definitely changed. For this<br />

115 WESTERN CAPE BUSINESS <strong>2017</strong>


INTERVIEW<br />

reason, many of our customers are looking outside<br />

of South Africa’s border. Cross-border financing is<br />

more complex and so their banking requirements<br />

have changed in some cases. Volatility and currency<br />

fluctuations have meant that forex hedging and<br />

forward-buying have become more important.<br />

These days, customers also have a greater choice<br />

when it comes to international products and are not<br />

compelled to use local banks for each transaction.<br />

Increasingly, executives are complaining about<br />

the difficultly they have in recruiting appropriately<br />

skilled people.<br />

Has Standard Bank introduced any new<br />

products or services recently?<br />

In the last year we introduced a reward programme<br />

for our small enterprise (SE) clients – UCount:<br />

<strong>Business</strong>es with an annual turnover of up to<br />

R20-million stand to benefit from these rewards.<br />

Payment solutions: BluMobi is another innovation<br />

we’ve introduced; it functions as a fully mobile<br />

point-of-sale solution. SnapScan and Tap to Pay are<br />

other payment solutions that are making it far more<br />

convenient for business clients to collect payment<br />

and for individuals to make payments. SE clients also<br />

benefit from Banker Chat 24/7.<br />

Online banking: We are in the process of enhancing<br />

our online banking services, particularly for businesses.<br />

Customers are already able to view balances,<br />

check statements and make payments on their<br />

business accounts.<br />

We have spent time aligning the look and feel<br />

of our applications across various digital platforms,<br />

which means that irrespective of whether customers<br />

choose to use a mobile phone, a tablet or a<br />

computer, they will have the same online experience.<br />

Tradesmen and medical professionals: Two new<br />

areas of focus in the SE segment include specific<br />

value propositions for tradesmen and the medical<br />

profession. The Tradesmen offer packages a number<br />

of banking services at a very affordable rate. The<br />

Medical proposition provides solutions that will<br />

assist medical professionals in both their personal<br />

capacity and business capacity.<br />

Instant Money: Another product that has been extended<br />

to our business customers is Instant Money,<br />

“THE WESTERN CAPE<br />

COMMERCIAL PROPERTY<br />

FINANCE MARKET HAS<br />

CONTINUED TO SHOW STRONG<br />

GROWTH, OUT- PERFORMING<br />

MANY OF ITS PEERS IN THE<br />

COUNTRY.”<br />

a payment solution that allows you to send money<br />

to anyone in South Africa by using their cellphone<br />

number. This solution will allow businesses to make<br />

payments in a cost-effective and secure manner.<br />

Always On: As far as our personal customers are concerned,<br />

they benefit from Always On – 24/7 banking<br />

anywhere, anytime. Customers can now conduct<br />

their banking through email, WeChat, Facebook, a<br />

call to their personal banker or by simply using our<br />

banking app and new internet banking functionality.<br />

Shari’ah offering: Many of our <strong>Western</strong> <strong>Cape</strong> customers<br />

will be pleased to hear about an improved<br />

Shari’ah offering relating to fixed deposits for personal<br />

and business purposes as well as forward exchange<br />

contracts.<br />

Kidz Banking: We have also aunched a Kidz Banking<br />

app that teaches children how to manage money<br />

from a young age.<br />

Having mentioned all of these innovations and<br />

new products, I still believe, however, that the real<br />

differentiator will be in the way that we execute<br />

our intentions. Great thinking and effective marketing<br />

messaging are important, but we intend to ensure<br />

that Standard Bank <strong>Western</strong> <strong>Cape</strong> implements<br />

excellent service and that we do what matters most<br />

to customers.<br />

WESTERN CAPE BUSINESS <strong>2017</strong> 116


FOCUS<br />

Banking for your business<br />

Standard Bank understands that as a business owner, you would prefer<br />

to free up your time and focus on running your business. Its online<br />

banking solutions allow you to do that.<br />

We understand that to manage your business you cannot<br />

be restricted by banking hours. We also understand that<br />

managing your financial affairs online can be daunting.<br />

At Standard Bank we have a range of online banking<br />

solutions that enable you as the business owner to do your everyday<br />

banking, everywhere you are. Online banking is convenient, cost effective<br />

and secure. You can have peace of mind when you transact online.<br />

How does online banking help you manage<br />

your business?<br />

• It saves you time, allowing you to focus on running your business<br />

• It helps you maintain control of all activity on your<br />

business accounts<br />

• It allows you to bank everywhere you are<br />

What can I do on online banking?<br />

• Pay people and companies, that is, suppliers or invoices<br />

• Transfer funds to and from your business accounts<br />

• View account balances and download statement’s history<br />

• Top-up on prepaid services<br />

Is it secure?<br />

• Yes. As the business owner, you will maintain complete oversight<br />

over all activity on the business account<br />

• You are notified every time your online banking profile is accessed<br />

• Your confirmation is required (One Time PIN) before beneficiaries<br />

are added or when you change your profile<br />

• You are notified when funds leave your account (email or SMS<br />

notification) and you always know your latest balance<br />

• You can manage transactions limits (Electronic Account Payment and<br />

ATM limits), minimising your online exposure while giving you control<br />

How do I sign up?<br />

• Register online or download the Standard Bank app form your app store<br />

• If you already have access to<br />

the app, you can use the same<br />

login details to sign in to online<br />

banking<br />

What do I need?<br />

• A smartphone, tablet, laptop<br />

or desktop computer<br />

• You must be the director or<br />

owner of your business<br />

• You have a card and PIN linked<br />

to your business account<br />

What are the costs?<br />

• Access is free<br />

• Account management fees,<br />

transactional fees and subscription<br />

fees are as per the<br />

annual Standard Bank pricing<br />

schedule<br />

More info<br />

To find out more about online<br />

banking, contact us anytime<br />

via the BizDirect Response<br />

Centre on 0860 109 075,<br />

via email bizdirect@standardbank.co.za<br />

or via WeChat<br />

(BB_Entrepreneur).<br />

Visit our website to see our<br />

security tips and terms and<br />

conditions for using Standard<br />

Bank digital channels.<br />

www.standardbank.co.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

118


Global Africa Network<br />

Promoting business, trade and investment in SA’s nine provinces<br />

www.gan.co.za<br />

www.southafricanbusiness.co.za<br />

www.easterncapebusiness.co.za<br />

www.freestatebusiness.co.za<br />

www.gautengbusinessguide.co.za<br />

www.kwazulunatalbusiness.co.za<br />

www.limpopobusiness.co.za<br />

www.mpumalangabusiness.co.za<br />

www.northerncapebusiness.co.za<br />

www.northwestbusiness.co.za<br />

www.westerncapebusiness.co.za<br />

NETWORK MEDIA<br />

Tel 021 657 6200<br />

Email sales@gan.co.za<br />

Web www.gan.co.za


OVERVIEW<br />

Information and<br />

communications technology<br />

<strong>Cape</strong> Town is attracting ICT investment.<br />

Providing better and broader access to broadband is a key<br />

priority for the <strong>Western</strong> <strong>Cape</strong>. The provincial government has<br />

identified the issue as an economic enabler that will act as a<br />

catalyst for growth across several economic sectors. There are<br />

2 000 ICT firms in the <strong>Western</strong> <strong>Cape</strong> and they have 17 000 employees.<br />

Private companies Link Africa and Fibrehoods are rolling out highspeed<br />

connections via fibre-optic cables to residential addresses. As<br />

part of the contract, Fibrehoods must supply the city with a line for<br />

the use of public institutions.<br />

A group of entrepreneurs, investors and developers has created the<br />

non-profit Silicon <strong>Cape</strong> Initiative which aims to support the burgeoning<br />

sector. Just one of its groups, the Startup Group, has 425 members<br />

and it offers advice and support.<br />

The <strong>Cape</strong> Innovation and Technology Initiative (CiTi) is another<br />

support system for the ICT sector. The Bandwidth Barn (shared office<br />

space in Woodstock) is one of three initiatives run by CiTi. The others<br />

are VeloCiTi (enterprise and entrepreneur development) and CapaCiti<br />

(tech skills and job placement). The University of <strong>Cape</strong> Town claims a<br />

90% placement rate for CapaCiti and more than 400 graduates. CiTi<br />

collaborates with two departments of the <strong>Western</strong> <strong>Cape</strong> provincial<br />

government, Oracle and On The Ball College to present the Java<br />

Schools Programme, which promotes programming.<br />

Barclays Bank has invested in a fintech incubator in <strong>Cape</strong> Town, Rise.<br />

The building has an auditorium, meeting and conference rooms but<br />

the main idea is to create a community of thinkers and developers.<br />

Banks are keen to stay ahead of the game and there are six other Rise<br />

incubator locations around the world, including New York and Mumbai.<br />

It was a banking application (app) that won the IT Challenge presented<br />

by Standard Bank in 2015. Three students from the University<br />

of the <strong>Western</strong> <strong>Cape</strong> created a voice-activated online banking app,<br />

ONLINE RESOURCES<br />

<strong>Cape</strong> Innovation and Technology Initiative: www.citi.org.za<br />

Independent Communications Authority: www.icasa.org.za<br />

Silicon <strong>Cape</strong>: www.siliconcape.com<br />

State Information Technology Agency: www.sita.co.za<br />

SECTOR INSIGHT<br />

Silicon <strong>Cape</strong> is a catalyst for<br />

tech in the <strong>Western</strong> <strong>Cape</strong> .<br />

which they called EasyBank. The<br />

challenge was to use and adopt<br />

the Amazon Echo app.<br />

French Tech Labs was<br />

launched as a fintech incubator<br />

at Century City in November<br />

2016. The same company earlier<br />

established Methys Labs. The new<br />

incubator will offer mentoring<br />

support for innovators, connections<br />

to possible investors and<br />

a programme where selected<br />

candidates will travel to France<br />

for work opportunities.<br />

There is no business sector<br />

less in need of a geographic<br />

home than ICT but a section of<br />

<strong>Cape</strong> Town is developing into<br />

a Silicon Valley: Marconi Beam/<br />

Century City. DVT’s app-testing<br />

facility is immediately south of<br />

that location (just off the N1 at<br />

Northgate Island) so perhaps<br />

this is the home of <strong>Western</strong> <strong>Cape</strong><br />

ICT. Wembley Square and nearby<br />

buildings in Gardens might<br />

be another candidate, where<br />

Amazon Development Centre is<br />

a core tenant.<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

120


<strong>Business</strong> process outsourcing<br />

Offshoring – foreign BPO contracts – is growing fast.<br />

OVERVIEW<br />

The South Africa business process outsourcing sector has<br />

consistently won international awards for the work it does<br />

for international companies and 2016 was no exception. The<br />

Global Sourcing Association (previously National Outsourcing<br />

Association) capped South Africa as the “Offshoring Destination of<br />

the Year” for 2016 in London in November.<br />

BPO involves any internal business function that a company chooses<br />

to outsource to a specialist in that field, for example accounting or<br />

call centres (also known as customer service centres). One interesting<br />

example relates to loading an aeroplane’s freight load – in Frankfurt!<br />

The loader does this in the <strong>Western</strong> <strong>Cape</strong> via remote cameras and<br />

weighing machines. After work the loader can visit the beach.<br />

Offshoring refers to BPO that is done across international borders.<br />

<strong>Cape</strong> Town is a leader in the field. A City of <strong>Cape</strong> Town report gave<br />

the BPO contribution to provincial GDP in 2014 as approximately<br />

R9-billion.<br />

The national Minister of Trade and Industry, Rob Davies, says that<br />

the local BPO sector has had compounded growth since 2012 of 25%<br />

year-on-year. There are approximately 30 000 jobs nationally with the<br />

top market being the UK.<br />

Within the <strong>Western</strong> <strong>Cape</strong> sector, 63% of companies are involved in<br />

inbound customer service work; back office accounts for 13.8% and<br />

debt collection at 9.1%. UK shop Asda and online retailer Amazon<br />

have large customer service centres in <strong>Cape</strong> Town.<br />

The fact that greater <strong>Cape</strong> Town is home to three well-regarded<br />

universities, a university of technology and two technical colleges<br />

is a major advantage in attracting companies with sophisticated<br />

operations, such as BPO. A director of a British business intelligence<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Process enabling South Africa (BPeSA):<br />

www.bpesa.co.za<br />

National Department of Trade and Industry: www.dti.gov.za<br />

Wesgro: www.wesgro.co.za<br />

SECTOR INSIGHT<br />

Incentives are on offer to<br />

BPO investors.<br />

• South Africa’s BPO sector<br />

won a 2016 global award.<br />

company that has operations<br />

in <strong>Cape</strong> Town, S-RM, says the<br />

that <strong>Cape</strong> Town’s position as a<br />

“knowledge nexus” was a major<br />

factor in deciding to open an<br />

office in the city.<br />

Other factors in favour of<br />

<strong>Cape</strong> Town are the relatively neutral<br />

accents, good infrastructure<br />

(financial and telecommunications)<br />

and the time zone being<br />

the same or close to Europe’s.<br />

The Department of Trade<br />

and Industry (dti) offers some<br />

incentives to BPO investors. A<br />

base incentive is calculated on<br />

projected offshore jobs to be<br />

created and is awarded on actual<br />

offshore jobs created. The<br />

incentive has a two-tier structure<br />

for non-complex and complex<br />

jobs and is paid over a five-year<br />

period. A bonus incentive becomes<br />

payable at the end of the<br />

five-year period.<br />

121 WESTERN CAPE BUSINESS <strong>2017</strong>


LISTINGS<br />

South African National Government<br />

An overview of South Africa’s national government departments.<br />

www.gov.za<br />

President<br />

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X1000, Pretoria 0001<br />

Tel: +27 12 300 5200<br />

Fax: +27 12 323 8246<br />

Website: www.thepresidency.gov.za<br />

Website: www.economic.gov.za<br />

Deputy President<br />

Address: Union Buildings, Government Avenue, East Wing,<br />

1st Floor, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X1000, Pretoria 0001<br />

Tel: +27 12 300 5200<br />

Fax: +27 12 323 8246<br />

Website: www.thepresidency.gov.za<br />

Minister in the Presidency<br />

Address: Union Buildings, Government Avenue, East Wing,<br />

1st Floor, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X1000, Pretoria 0001<br />

Tel: +27 12 300 5200<br />

Fax: +27 12 300 5795<br />

Website: www.thepresidency.gov.za<br />

Dept of Agriculture, Forestry and Fisheries<br />

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street<br />

and Soutpansberg Road, Arcadia, Pretoria<br />

Postal address: Private Bag X250, Pretoria<br />

Tel: +27 12 319 7319<br />

Fax: +27 12 319 6681<br />

Website: www.daff.gov.za<br />

Department of Arts and Culture<br />

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza<br />

Bopape streets, Arcadia, Pretoria 0001<br />

Postal address: Private Bag X899, Pretoria 0001<br />

Tel: +27 12 441 3000 | Fax: +27 12 440 4485<br />

Website: www.dac.gov.za<br />

Department of Basic Education<br />

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001<br />

Postal address: Private Bag X9034, 8000<br />

Tel: +27 12 357 3000<br />

Fax: +27 12 323 5989<br />

Website: www.education.gov.za<br />

Department of Communications<br />

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival<br />

Street), Hatfield, Pretoria 0001<br />

Postal address: Private Bag X745, Pretoria 0001<br />

Tel: +27 12 473 0000<br />

Fax: +27 12 462 1646<br />

Website: www.doc.gov.za<br />

Department of Cooperative Governance and<br />

Traditional Affairs<br />

Address: 87 Hamilton Street, Arcadia, Pretoria 0083<br />

Postal address: Private Bag X802, Pretoria 0001<br />

Tel: +27 12 334 0705<br />

Fax: +27 12 326 4478<br />

Website: www.cogta.gov.za<br />

Department of Correctional Services<br />

Address: 123 Poyntons Building, West Block,<br />

cnr Schubart and Church streets, Pretoria 0001<br />

Postal address: Private Bag X136, Pretoria 0001<br />

Tel: +27 12 307 2934/2884<br />

Fax: +27 12 323 4111<br />

Website: www.dcs.gov.za<br />

Department of Economic Development<br />

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &<br />

Esselen streets, Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X149, Pretoria 0001<br />

Tel: +27 12 394 1006<br />

Fax: +27 12 394 0255<br />

Website: www.economic.gov.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

122


LISTINGS<br />

Department of Defence<br />

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001<br />

Postal address: Private Bag X427, Pretoria 0001<br />

Tel: +27 12 355 6101 | F ax: +27 12 347 0118<br />

Website: www.dod.mil.za<br />

Department of Energy<br />

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001<br />

Postal address: Private Bag X96, Pretoria 0001<br />

Tel: +27 12 406 8000<br />

Fax: +27 12 319 6681<br />

Website: www.energy.gov.za<br />

Department of Environmental Affairs<br />

Address: Environment House, 473 Steve Biko and Soutpansberg Road,<br />

Arcadia, 0083<br />

Postal address: Private Bag X447, Pretoria 0001<br />

Tel: +27 12 310 3537 | Fax: +27 086 593 6526<br />

Website: www.environment.gov.za<br />

Department of Finance (National Treasury)<br />

Address: 40 WF Nkomo Street,<br />

Old Reserve Bank Building, 2nd Floor, Pretoria<br />

Postal address: Private Bag X115, Pretoria 0001<br />

Tel: +27 12 323 8911 | Fax: +27 12 323 3262<br />

Website: www.treasury.gov.za<br />

Department of Health<br />

Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets,<br />

Pretoria 0001<br />

Postal address: Private Bag X399, Pretoria 0001<br />

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165<br />

Website: www.doh.gov.za<br />

Department of Higher Education<br />

and Training<br />

Address: 123 Francis Baard Street, Pretoria 0001<br />

Postal address: Private Bag X893, Pretoria 0001<br />

Tel: +27 12 312 5555<br />

Fax: +27 12 323 5618<br />

Website: www.dhet.gov.za<br />

Department of Home Affairs<br />

Address: 909 Arcadia Street, Hatfield 0083<br />

Postal address: Private Bag X114, Pretoria 0001<br />

Tel: +27 12 432 6648 | Fax: +27 12 432 6675<br />

Website: www.dha.gov.za<br />

Department of Human Settlements<br />

Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X644, Pretoria 0001<br />

Tel: +27 12 421 1310 | Fax: +27 12 341 8513<br />

Website: www.dhs.gov.za<br />

Department of International Relations and<br />

Cooperation<br />

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,<br />

Pretoria 0001<br />

Postal address: Private Bag X152, Pretoria 0001<br />

Tel: +27 12 351 1000 | Fax: +27 12 329 1000<br />

Website: www.dirco.gov.za<br />

Department of Justice and Constitutional<br />

Development<br />

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard<br />

Streets, Pretoria 0001<br />

Postal address: Private Bag X276, Pretoria 0001<br />

Tel: +27 12 406 4669 | Fax: +27 12 406 4680<br />

Website: www.doj.gov.za<br />

Department of Labour<br />

Address: 215 Laboria House, cnr Francis Baard and<br />

Paul Kruger Streets, Pretoria 0001<br />

Postal address: Private Bag X499, Pretoria 0001<br />

Tel: +27 12 392 9620 | Fax: +27 12 320 1942<br />

Website: www.labour.gov.za<br />

Department of Military Veterans<br />

Address: 328 Festival Street, Hatfield, Pretoria 0001<br />

Postal address: Private Bag X943, Pretoria 0001<br />

Tel: 080 232 3244 (SA only)<br />

Website: www.dmv.gov.za<br />

Department of Mineral Resources<br />

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007<br />

Postal address: Private Bag X59, Pretoria 0001<br />

Tel: +27 12 444 3000 | Fax: +27 86 624 5509<br />

Website: www.dmr.gov.za<br />

Department of Police (Civilian Secretariat for<br />

Police Service)<br />

Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001<br />

Postal address: Private Bag X463, Pretoria 0001<br />

Tel: +27 12 393 2800 | Fax: +27 12 393 2812<br />

Website: www.saps.gov.za<br />

123 WESTERN CAPE BUSINESS <strong>2017</strong>


LISTINGS<br />

Department of Public Enterprises<br />

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001<br />

Postal address: Private Bag X15, Hatfield 0028<br />

Tel: +27 12 431 1000<br />

Fax: +27 12 431 1039<br />

Website: www.dpe.gov.za<br />

Department of Public Service and<br />

Administration<br />

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria<br />

Postal address: Private Bag X884, Pretoria 0001<br />

Tel: +27 12 336 1700<br />

Fax: +27 12 336 1809<br />

Website: www.dpsa.gov.za<br />

Department of Public Works<br />

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Streets,<br />

Pretoria Central<br />

Postal address: Private Bag X65, Pretoria 0001<br />

Tel: +27 12 406 21978<br />

Fax: +27 086 276 8757<br />

Website: www.publicworks.gov.za<br />

Department of Rural Development and<br />

Land Reform<br />

Address: 184 Old Building, cnr Jeff Masemola<br />

and Paul Kruger Streets, Pretoria 0001<br />

Postal address: Private Bag X833, Pretoria 0001<br />

Tel: +27 12 312 9300<br />

Fax: +27 12 323 3306<br />

Website: www.ruraldevelopment.gov.za<br />

Department of Science and Technology<br />

Address: DST Building, Building No 53, CSIR South Gate Entrance,<br />

Meiring Naude Road, Brummeria, Pretoria 0001<br />

Postal address: Private Bag X727, Pretoria 0001<br />

Tel: +27 12 843 6300<br />

Fax: +27 12 349 1041/8<br />

Website: www.dst.gov.za<br />

Department of Small <strong>Business</strong> Development<br />

Address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside,<br />

Pretoria 0001<br />

Postal address: Private Bag X84, Pretoria 0001<br />

Tel: +27 12 394 1006<br />

Fax: +27 12 394 1006<br />

Website: www.dsbd.gov.za<br />

Department of Social Development<br />

Address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001<br />

Postal address: Private Bag X904, Pretoria 0001<br />

Tel: +27 12 312 7479 | Fax: +27 086 715 0829<br />

Website: www.dsd.gov.za<br />

Department of State Security<br />

Address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001<br />

Postal address: PO Box 1037, Menlyn 0077<br />

Tel: +27 12 367 0700 | Fax: +27 12 367 0749<br />

Website: www.ssa.gov.za<br />

Department of Sport and Recreation<br />

South Africa<br />

Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street,<br />

Pretoria 0001<br />

Postal address: Private Bag X896, Pretoria 0001<br />

Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583<br />

Website: www.srsa.gov.za<br />

Department of Tourism<br />

Address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X424, Pretoria 0001<br />

Tel: +27 12 444 6780 | Fax: +27 12 444 7027<br />

Website: www.tourism.gov.za<br />

Department of Trade and Industry<br />

Address: The dti, 77 Meintjie Street, Block A, Floor 3,<br />

Sunnyside, Pretoria 0001<br />

Postal address: Private Bag X274, Pretoria 0001<br />

Tel: +27 12 394 1568 | Fax: +27 12 394 0337<br />

Website: www.thedti.gov.za<br />

Department of Transport<br />

Address: Forum Building, 159 Struben Street,<br />

Room 4111, Pretoria 0001<br />

Postal address: Private Bag X193, Pretoria 0001<br />

Tel: +27 12 309 3131 | Fax: +27 12 328 3194<br />

Website: www.transport.gov.za<br />

Telecommunications and Postal Services<br />

Address: Iparioli Office Park, 399 Jan Shoba Street,<br />

Hatfield, Pretoria 0001<br />

Postal address: Private Bag X860, Pretoria 0001<br />

Tel: +27 12 427 8000<br />

Fax: +27 12 427 8016<br />

Website: www.dtps.gov.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

124


LISTINGS<br />

Department of Water and Sanitation<br />

Address: Sedibang Building, 185 Frances Baard Street,<br />

Pretoria 0001<br />

Postal address: Private Bag X313, Pretoria 0001<br />

Tel: +27 12 336 8733<br />

Fax: +27 12 336 8850<br />

Website: www.dwa.gov.za<br />

Department of Women<br />

Address: 36 Hamilton Street, Arcadia Pretoria 0001<br />

Postal address: Private Bag X931, Pretoria 0001<br />

Tel: +27 12 359 0000<br />

Fax: 086 765 3365<br />

Website: www.women.gov.za<br />

National coat of arms<br />

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which<br />

are described as the circle of foundation and the circle of ascendance.<br />

Circle of foundation<br />

Shield – The two Khoisan figures on the shield are taken from a Bushman rock<br />

painting known as the Linton stone, and represent the common humanity and<br />

heritage of South Africans. Depicted in an attitude of greeting, the figures<br />

symbolise unity. Spear and knobkierie – Together, these objects symbolise<br />

defence and authority, but the flat angle at which they lie symbolises peace.<br />

Wheat – The ears of wheat, as emblems of fertility, represent germination,<br />

growth and the development of potential, as well as nourishment<br />

and agriculture. Elephant tusks – Elephants symbolise wisdom, strength,<br />

power, authority, moderation and eternity, and the use of tusks is a tribute<br />

to the world’s largest land mammal, Loxodonta Africana, which is found in<br />

South Africa. Motto – Taken from the language of the now extinct /Xam<br />

Bushmen, the motto translated means ‘people who are different come<br />

together’ or ‘diverse people unite’.<br />

Circle of ascendance<br />

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of<br />

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the<br />

secretary bird represents growth and speed, and is a symbol of divine majesty and protection.<br />

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for<br />

a country characterised by sunshine and warmth.<br />

125 WESTERN CAPE BUSINESS <strong>2017</strong>


LISTINGS<br />

<strong>Western</strong> <strong>Cape</strong><br />

Provincial Government<br />

An overview of the <strong>Western</strong> <strong>Cape</strong>’s provincial government departments.<br />

Office of the Premier<br />

Premier: Ms Helen Zille<br />

Provincial Legislature Building, 1st Floor,<br />

7 Wale Street, <strong>Cape</strong> Town 8000<br />

Tel: 0860 142 142<br />

Fax: +27 21 483 7216<br />

Email: service@westerncape.gov.za<br />

Web: www.westerncape.gov.za/dept/<br />

department-premier<br />

Department of Agriculture<br />

MEC: Mr Alan Winde<br />

Admin Building, Muldersvlei Road, Elsenburg 7607<br />

Tel: +27 21 808 5111 | Fax: +27 21 808 7605<br />

Web: www.elsenburg.com<br />

Department of Community Safety<br />

MEC: Mr Dan Plato<br />

35 Wale Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 6949/8588 | Fax: +27 21 483 6591<br />

Web: www.westerncape.gov.za/dept/<br />

community-safety<br />

Department of Cultural Affairs and Sport<br />

MEC: Ms Anroux Marais (Minister)<br />

Protea House Building, 7th Floor, Greenmarket Square,<br />

<strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 9503 | Fax: +27 21 483 9504<br />

Web: www.westerncape.gov.za/dept/cas<br />

Department of Economic Development<br />

and Tourism<br />

MEC: Mr Alan Winde<br />

11th Floor, NBS Waldorf Building, 80 St George’s Mall,<br />

<strong>Cape</strong> Town 8001<br />

Tel: +27 21 483 5065 | Fax: +27 21 483 7527<br />

Web: www.westerncape.gov.za/dept/edat<br />

<strong>Western</strong> <strong>Cape</strong> Education Department<br />

MEC: Ms Debbie Schäfer<br />

Grand Central Towers, Lower Parliament Street,<br />

<strong>Cape</strong> Town 8001<br />

Tel: +27 21 467 2000<br />

Fax: +27 21 467 2996<br />

Web: http://wced.school.za<br />

Department of Environmental Affairs<br />

and Development Planning<br />

MEC: Mr Anton Bredell<br />

8th Floor, 1 Dorp Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 4091<br />

Fax: +27 21 483 3016<br />

Web: www.westerncape.gov.za/dept/eadp<br />

Department of Health<br />

MEC: Dr Nomafrench Mbombo<br />

21st Floor, 4 Dorp Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 3245/5417<br />

Fax: +27 21 483 6169<br />

Web: www.westerncape.gov.za/dept/health<br />

Department of Human Settlements<br />

MEC: Mr Bonginkosi Madikizela<br />

27 Wale Street, <strong>Cape</strong> Town 8001<br />

Tel: +27 21 483 9482<br />

Fax: +27 21 483 2589<br />

Web: www.westerncape.gov.za/dept/<br />

human-settlements<br />

Department of Local Government<br />

MEC: Mr Anton Bredell<br />

8th Floor, Waldorf Building, 80 St George’s Mall,<br />

<strong>Cape</strong> Town 8001<br />

Tel: +27 21 483 4049/4997 | Fax: +27 21 483 4493<br />

Web: www.westerncape.gov.za/dept/local-government<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

126


LISTINGS<br />

Department of Social Development<br />

MEC: Mr Albert Fritz<br />

Union House, 14 Queen Victoria Street, <strong>Cape</strong> Town 8001<br />

Tel: +27 21 483 5045 | Fax: +27 21 483 4783<br />

Web: www.westerncape.gov.za/dept/<br />

social-development<br />

Provincial Treasury<br />

MEC: Dr Ivan Meyer<br />

3rd Floor, 7 Wale Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 4237 | Fax: +27 21 483 3855<br />

Web: www.westerncape.gov.za/dept/treasury<br />

Department of Transport and Public Works<br />

MEC: Mr Donald Grant<br />

8th Floor, 9 Dorp Street, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 483 4813<br />

Fax: +27 21 483 5068<br />

Web: www.westerncape.gov.za/dept/tpw<br />

Brandvlei<br />

Britstown<br />

Garies<br />

De Aar<br />

Kliprand<br />

R 27<br />

Loeriesfontein<br />

Carnarvon<br />

N10<br />

R 63<br />

N12<br />

Hanover<br />

N7<br />

R63<br />

R63<br />

Nieuwoudtville<br />

Victoria West<br />

R 63<br />

Williston<br />

N1<br />

Loxton<br />

Richmond<br />

R 27<br />

R27<br />

Calvinia<br />

R27 Vanrhynsdorp<br />

R63<br />

Vredendal<br />

Northern <strong>Cape</strong><br />

R27<br />

Fraserburg<br />

Three<br />

Sisters<br />

R 63<br />

Graaff-Reinet<br />

Lambert's Bay<br />

Clanwilliam<br />

Beaufort West<br />

Aberdeen<br />

R27<br />

Sutherland<br />

Cederberg<br />

R 61<br />

N12<br />

N9<br />

St Helena Bay<br />

Citrusdal<br />

Prince<br />

Velddrif<br />

Leeu-Gamka<br />

Paternoster<br />

Albert N1<br />

Road<br />

Eastern <strong>Cape</strong><br />

Vredenburg Piketberg<br />

R44<br />

R79<br />

Saldanha<br />

R45<br />

N7<br />

Klipplaat<br />

<strong>Western</strong> <strong>Cape</strong><br />

Saldanha Bay<br />

Moorreesburg<br />

LangebaanR27<br />

R45<br />

R 44Tulbagh<br />

Laingsburg<br />

Prince Albert<br />

Willowmore<br />

Riebeek West<br />

Matjiesfontein<br />

R 46<br />

Darling<br />

Ceres Touwsrivier<br />

Dassen Island<br />

Calitzdorp<br />

R62<br />

N1<br />

Ladismith<br />

R43<br />

Malmesbury<br />

De Rust<br />

R44<br />

Uniondale<br />

R45 Wellington Worcester<br />

Oudtshoorn<br />

R 62<br />

Paarl<br />

R62<br />

N12<br />

Melkbosstrand<br />

Rawsonville Montagu<br />

Joubertina<br />

N9<br />

R60<br />

Robben Island (World Heritage Site)<br />

R43<br />

Table Bay<br />

Franschhoek Robertson Ashton R62<br />

Barrydale<br />

Kareedouw<br />

Durbanville<br />

George SedgefieldKnysna<br />

N2<br />

CAPE TOWN<br />

Villiersdorp Swellendam<br />

Stormsrivier<br />

Stellenbosch<br />

Riversdale<br />

Somerset<br />

Genadendal<br />

Herolds<br />

Plettenberg<br />

Bay<br />

Fish Hoek West Grabouw<br />

Heidelberg<br />

Bay<br />

N2 Riviersonderend<br />

N2 Mossel Bay<br />

<strong>Cape</strong> St Francis<br />

Gordon's Bay<br />

Vleesbaai<br />

Simon's Town<br />

Caledon<br />

False R44<br />

<strong>Cape</strong> Bay Kleinmond Hermanus<br />

Stillbaai<br />

INDIAN OCEAN<br />

Point<br />

Bredasdorp <strong>Cape</strong> St Sebastian<br />

R 43<br />

Infanta<br />

Walker Bay<br />

Bay<br />

0<br />

100 km<br />

Gansbaai<br />

Arniston<br />

Struisbaai<br />

0 100 miles<br />

Struisbaai<br />

Quoin Point<br />

<strong>Cape</strong><br />

Agulhas<br />

WESTERN CAPE PROVINCE<br />

Groen<br />

ATLANTIC OCEAN<br />

N<br />

Motorway<br />

Main Road<br />

Railway<br />

Sout<br />

Tankwa<br />

Fish<br />

Breede<br />

Sak<br />

Riet<br />

Touws<br />

Buffels<br />

Dwyka<br />

Groot<br />

Gourits<br />

Gamka<br />

Leeuw<br />

Olifants<br />

Groen<br />

Sout<br />

Sout<br />

Kariega<br />

Ongers<br />

Kouga<br />

Groot<br />

Seekoei<br />

Sundays<br />

127 WESTERN CAPE BUSINESS <strong>2017</strong>


LISTINGS<br />

<strong>Western</strong> <strong>Cape</strong> Local Government<br />

A guide to the metropolitan, district and local municipalities in the <strong>Western</strong> <strong>Cape</strong>.<br />

CITY OF CAPE TOWN<br />

METROPOLITAN MUNICIPALITY<br />

Address: Civic Centre, Podium Block, 6th Floor, 12 Hertzog<br />

Boulevard, <strong>Cape</strong> Town 8000<br />

Tel: +27 21 400 1300 | Fax: +27 21 400 1313<br />

Website: www.capetown.gov.za<br />

CAPE WINELANDS DISTRICT MUNICIPALITY<br />

Address: 46 Alexander Street, Stellenbosch 7599<br />

Tel: +27 21 888 5100 | Fax: +27 23 342 8442<br />

Website: www.capewinelands.gov.za<br />

Breede Valley Local Municipality<br />

Tel: +27 23 348 2600 | Fax: +27 21 883 8871<br />

Website: www.bvm.gov.za<br />

Drakenstein Local Municipality<br />

Tel: +27 21 807 4500 | Fax: +27 21 807 4645<br />

Website: www.drakenstein.gov.za<br />

Langeberg Local Municipality<br />

Tel: +27 23 615 8000 | Fax: +27 23 615 1563<br />

Website: www.langeberg.gov.za<br />

Stellenbosch Local Municipality<br />

Tel: +27 21 808 8111 | Fax: +27 21 808 8003<br />

Website: www.stellenbosch.gov.za<br />

Witzenberg Local Municipality<br />

Tel: +27 23 316 1854 | Fax: +27 23 316 1877<br />

Website: www.witzenberg.gov.za<br />

CENTRAL KAROO DISTRICT MUNICIPALITY<br />

Address: 63 Donkin Street, Beaufort West 6970<br />

Tel: +27 23 449 1000<br />

Fax: +27 23 415 1253<br />

Website: www.skdm.co.za<br />

Beaufort West Local Municipality<br />

Tel: +27 23 414 8100<br />

Fax: +27 23 414 8105<br />

Website: www.beaufortwestmun.co.za<br />

Laingsburg Local Municipality<br />

Tel: +27 23 551 1019 | Fax: +27 23 551 1019<br />

Website: www.laingsburg.gov.za<br />

Prince Albert Local Municipality<br />

Tel: +27 23 541 1320 | Fax: +27 23 541 1321<br />

Website: www.princealbertmunicipality.com<br />

EDEN DISTRICT MUNICIPALITY<br />

Address: 54 York Street, George 6530<br />

Tel: +27 44 803 1300<br />

Fax: +27 86 555 6303<br />

Website: www.edendm.co.za<br />

Bitou Local Municipality<br />

Tel: +27 44 501 3000<br />

Fax: +27 44 533 6198<br />

Website: www.plett.gov.za<br />

George Local Municipality<br />

Tel: +27 44 801 9111 | Fax: +27 44 801 9105<br />

Website: www.george.gov.za<br />

Hessequa Local Municipality<br />

Tel: +27 28 713 8000 | Fax: +27 86 713 3146<br />

Website: www.hessequa.gov.za<br />

Kannaland Local Municipality<br />

Tel: +27 28 551 1023 | Fax: +27 86 551 1766<br />

Website: www.kannaland.gov.za<br />

Knysna Local Municipality<br />

Tel: +27 44 302 6300 | Fax: +27 44 302 6333<br />

Website: www.knysna.gov.za<br />

Mossel Bay Local Municipality<br />

Tel: +27 44 606 5000 | Fax: +27 44 606 5062<br />

Website: www.mosselbay.gov.za<br />

Oudtshoorn Local Municipality<br />

Tel: +27 44 203 3000 | Fax: +27 44 203 3104<br />

Website: www.oudtmun.gov.za<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

128


LISTINGS<br />

OVERBERG DISTRICT MUNICIPALITY<br />

Address: 26 Long Street, Bredasdorp 7280<br />

Tel: +27 28 425 1157<br />

Fax: +27 28 425 1014<br />

Website: www.odm.org.za<br />

<strong>Cape</strong> Agulhas Local Municipality<br />

Tel: +27 28 425 5500 | Fax: +27 28 425 1019<br />

Website: www.capeagulhas.gov.za<br />

Overstrand Local Municipality<br />

Tel: +27 28 313 8000 |<br />

Fax: +27 28 312 1894<br />

Website: www.overstrand.gov.za<br />

Swellendam Local Municipality<br />

Tel: +27 28 514 8500<br />

Fax: +27 28 514 2694<br />

Website: www.swellenmun.co.za<br />

Theewaterskloof Local Municipality<br />

Tel: +27 28 214 3300<br />

Fax: +27 28 214 1289<br />

Website: www.twk.org.za<br />

WEST COAST DISTRICT MUNICIPALITY<br />

Address: 58 Long Street, Moorreesburg 7310<br />

Tel: +27 22 433 8400 | Fax: +27 86 692 6113 (SA only)<br />

Website: www.westcoastdm.co.za<br />

Bergrivier Local Municipality<br />

Tel: +27 22 913 6000 | Fax: +27 22 913 1406<br />

Website: www.bergmun.org.za<br />

Cederberg Local Municipality<br />

Tel: +27 27 482 8000 | Fax: +27 27 482 1933<br />

Website: www.cederbergmunicipality.co.za<br />

Matzikama Local Municipality<br />

Tel: +27 27 201 3300 | Fax: +27 27 213 3238<br />

Website: www.matzikamamun.co.za<br />

Saldanha Bay Local Municipality<br />

Tel: +27 22 701 7000 | Fax: +27 22 715 1518<br />

Website: www.sbm.gov.za<br />

Swartland Local Municipality<br />

Tel: +27 22 487 9400 | Fax: +27 22 487 9440<br />

Website: www.swartland.org.za<br />

Municipalities in the <strong>Western</strong> <strong>Cape</strong><br />

WCDMA01<br />

Northern <strong>Cape</strong><br />

Metropolitan/District Municipality<br />

Boundary<br />

Local Municipality Boundary<br />

District Municipality<br />

Local Municipality<br />

Eden<br />

Oudtshoorn<br />

Matzikama<br />

WCDMA05<br />

Cederberg<br />

Beaufort West<br />

West Coast<br />

Central Karoo<br />

Bergrivier<br />

WCDMA02<br />

Saldanha<br />

Bay<br />

Swartland<br />

City of<br />

<strong>Cape</strong> Town<br />

Metropolitan<br />

Municipality<br />

ATLANTIC OCEAN<br />

Witzenberg<br />

<strong>Cape</strong> Winelands<br />

Breede Valley<br />

Drakenstein<br />

Langeberg<br />

Stellenbosch<br />

Theewaterskloof<br />

Swellendam<br />

Overberg<br />

<strong>Cape</strong> Agulhas<br />

WCDMA03<br />

Overstrand<br />

Laingsburg<br />

Kannaland<br />

Hessequa<br />

Prince Albert<br />

Oudtshoorn<br />

WCDMA04<br />

Eden<br />

George Knysna Bitou<br />

Mossel Bay<br />

INDIAN OCEAN<br />

Eastern <strong>Cape</strong><br />

129 WESTERN CAPE BUSINESS <strong>2017</strong>


INDEX<br />

INDEX<br />

Accelerate <strong>Cape</strong> Town.......................................................................................................................................................................... 38 - 41<br />

Air Products........................................................................................................................................................................................................91, IBC<br />

Atterbury................................................................................................................................................................................................................34<br />

Beyerskloof........................................................................................................................................................................................................... 78<br />

Breede-Gouritz Catchment Management Agency...................................................................................................................... 96<br />

<strong>Cape</strong> Chamber of Commerce & Industry....................................................................................................................................... 2, 22, 58<br />

<strong>Cape</strong> Town International Convention Centre (CTICC) ........................................................................................................................ 32<br />

College of <strong>Cape</strong> Town.................................................................................................................................................................................. 5, 64<br />

Formatube.............................................................................................................................................................................................................. 102<br />

Invest <strong>Cape</strong> Town............................................................................................................................................................................................... 36<br />

Masisizane Fund................................................................................................................................................................................................ 26<br />

Nedbank.............................................................................................................................................................................................................. 45 - 49<br />

Old Mutual.......................................................................................................................................................................................................... 50 - 55<br />

Petroleum Agency South Africa.................................................................................................................................................................. 89<br />

Pioneer Fishing...................................................................................................................................................................................................... 84<br />

Seascape ............................................................................................................................................................................................................... 102<br />

Selfmed ............................................................................................................................................................................................................ 66, OBC<br />

South Africa Table Grape Industry (SATI)....................................................................................................................................... 80 - 82<br />

Standard Bank <strong>Western</strong> <strong>Cape</strong>...............................................................................................................................................................112 - 116<br />

Unemployment Insurance Fund (UIF) ........................................................................................................................................................ 7<br />

Wesgro...................................................................................................................................................................................................................18 - 21<br />

West Coast District Municipality.................................................................................................................................................................. IFC<br />

<strong>Western</strong> <strong>Cape</strong> <strong>Business</strong> Opportunities Forum (WECBOF)......................................................................................................... 24<br />

<strong>Western</strong> <strong>Cape</strong> Department of Economic Development and Tourism................................................................................10, 70<br />

WESTERN CAPE BUSINESS <strong>2017</strong><br />

130


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