01.02.2017 Views

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.

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

WESTERN CAPE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE WESTERN CAPE PROVINCE

2017 EDITION

JOIN US ONLINE

WWW.WESTERNCAPEBUSINESS.CO.ZA


New opportunities for

investors in the West Coast

New opportunities are emerging in specific sectors of the West Coast district. With the N7

being upgraded, the time it takes to travel from Malmesbury to Cape Town for instance

is less than from Paarl, Somerset West or Stellenbosch. Businesses can serve the Cape

Town market while enjoying lower operating costs, an excellent work ethic, lower crime and

reduced risk with excellent local government support. Developers are providing new industrial,

commercial and residential property.

Protein, dairy and other food producers are moving closer to their markets to reduce transportation

costs. They remain outside the metro boundaries, to gain cost advantages. Increasing

numbers of logistics firms recognise the strategic location. Vehicle and equipment suppliers are

growing as services sector.

The number of mines are increasing in Matzikama and a breakthrough with abalone production

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

raised, meaning the bottleneck to agricultural growth is reduced. The Saldanha Industrial

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

government incentives.

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

and events. These include bouldering, hiking, kite surfing, surfing, skydiving, paragliding,

cycling, canoeing, birding, music festivals, arts, culture, heritage and of course the unrivalled

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

place to live, work and play.

Swartland Municipality

Lower cost structures, a productive workforce and less risk than the Cape Town

metro provide businessess here with a competitive advantage in their markets. Add

to this the benefits of a sophisticated city that is still close enough to leverage when

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

Similar to growth patterns of towns on the outskirts of cities worldwide, both businesses

and citizens will increasingly view the Swartland as a good place to locate.

Investment growth is expected from sectors such as protein, dairy, agroprocessing,

transport, logistics, retail, services and construction sectors.

www.swartland.org.za

Bergrivier Municipality

Situated north of Saldanha Bay, the Bergriver region is particularly suited to

agriculture. Livestock, fruit, vegetables and flowers are farmed in the area and there

are opportunities in kelp farming and processing.

The large cement factory and smaller salt-reclamation works are indicators of

business development opportunities related to mining.

www.bergmun.org.za


MATZIKAMA

Vredendal

BERGRIVIER

Vredenberg

Piketberg

SALDANHA

BAY

Moorreesburg

SWARTLAND

Clanwilliam

CEDERBERG

Langeberg

Cederberg Municipality

Blessed by nature, rich in

heritage and warm-hearted

people, this a great place

for tourism all year round.

Cederberg boasts a beautiful and varying landscape

that includes mountains, valleys and coastline with a

multitude of attractions and activities.

The area is rich in flowers and fynbos, including

Rooibos, which makes this the heart of the international

Rooibos tea industry. The Clanwilliam dam

wall is being raised, which will soon provide more

water. Unutilised fertile lands can then be irrigated

to produce high yields to boost agricultural output.

www.cederbergmunicipality.co.za

Matzikama Municipality

Approximately 240km north of

Cape Town, the Matzikama region

has abundant water and fertile soil

and therefore a thriving vegetable,

fruit and wine farming economy.

Investors visiting the region will

find opportunities in aquaculture

(especially abalone), fishing, mining, manufacturing,

agriculture and property development.

www.matzikamamun.co.za

Saldanha Bay Municipality

Saldanha Bay Municipality is a local municipality located on the West Coast of

South Africa, in the Western Cape Province. It is approximately 140km north of

Cape Town and forms part of the West Coast District Municipality. The Municipality

is bordered on the west by the Atlantic Ocean, in the north by the Bergivier

Municipality and in the east by the Swartland Municipality.

Saldanha Bay Municipality covers an area of 2 015km 2 and has 238km of coastline.

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

Saldanha and Langebaan.

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

of the Western Cape Province.

www.saldanhabay.co.za

If you have your eye on growth,

you should invest on the West Coast!

Find out more at www.westcoastdm.co.za


Besides being the voice of business in the region, when you belong to the

Chamber, you become part of an esteemed network that is geared to

promote your success.

As a member, you enjoy a substantial number of benefits, as well as

receiving expert support for a wide range of issues. Our services include

business advice, extensive networking opportunities, seminars & events,

training at all levels, international trade support and more.

Join now - it’s Where Opportunity Meets.


Where Opportunity Meets

4th floor, 33 Martin Hammerschlag Way, Foreshore, Cape Town

Tel: +27 21 402 4300 | Fax: +27 21 402 4302

info@capechamber.co.za | capechamber.co.za

Facebook: CapeChamberOfCommerce | Twitter: @Cape_Chamber


CONTENTS

CONTENTS

Western Cape Business 2017 Edition

Introduction

Foreword 9

Western Cape Business is a unique guide to business,

investment and tourism in the Western Cape.

Growth strategy is paying off 10

Alan Winde, Western Cape Provincial Minister of Economic

Opportunities, explains how Project Khulisa will impact

the province.

Special features

Regional overview 12

Tourism and technology are boosting the Western Cape

economy and Brexit offers new opportunities for investors.

Down-town boom town, Cape Town 28

A number of high-visibility construction projects are under

development in the Cape Town CBD and surrounds.

South African economy at a glance 42

Insight into the performance of the South African economy

is provided through these graphical representations of key

statistics.

WESTERN CAPE BUSINESS 2017

6


CONTENTS

Special Economic Zones 56

Dedicated development hubs on the West Coast are tapping

into the potential of two of the fastest-growing economic

sectors in Southern Africa – oil and gas and manufacturing for

the renewable energy sector.

Skills development 60

A number of investors are driving skills development in the

province.

Economic sectors

Agriculture 72

Processing plants boost rural employment.

Wine and grapes 76

China is importing the fruits of the Western Cape’s vineyards.

Fishing 83

More fish, fewer chips following the sale of Lamberts

Bay Foods.

Mining 86

The sands of the West Coast are giving up their riches.

Oil and gas 88

The Western Cape Government is hoping to exploit

opportunities related to the gas sector.

Energy 92

Manufacturing in the renewable energy sector is

taking off in Atlantis.

Water 94

Farms and factories are becoming water wise.

Manufacturing 98

Diesel locomotive engines are powering up in Montague

Gardens.

Construction and property development 104

Construction is on the rise in the Western Cape.

WESTERN CAPE BUSINESS 2017

8


UIF SAVING JOBS

THROUGH SOCIALLY

RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as

a guideline to government departments and state entities

on how they can play a role in government wide efforts

of creating decent work, reducing unemployment and

poverty. The Unemployment Insurance Fund is among

the leading state entities in the implementation of the

provisions of the NDP to address the slow economic

growth, unemployment and poverty in South Africa.

The UIF social investment mandate ensures that,

additional to earning good financial returns, investments

must be supportive of long term economic, social and

adhere to sustainable environmental outcomes. The

investments must also yield a good social return for the

country. These investments have sustained 6 860 jobs of

which 3 024 are permanent, 3 836 are temporary/seasonal

and 195 are new jobs created during the financial year

ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY

The UIF investments are contributing to the energy

requirements of South Africa and the investments in the

renewable energy sector provides a total capacity of 192

megawatt of electricity of which 117 megawatt is solar

energy and 27 megawatt is wind generated electricity.

The De Aar project is a shining example of the UIF energy

investments and this project produces 90 megawatt of

electricity and was completed in April 2016. The solar plant

in the area generates enough electricity to power 15 000

houses. Another mainstay project is the Phakwe Group ran

projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY

The UIF investments in this regard are undertaken under

the banner of the UIF Agri-Fund in partnership with

Futuregrowth and Day Breaker Poultry Project. The UIF

Agri-Fund has invested in 4 farms situated in Mable Hall

in Limpopo. One of the farms is a cash crop farm spanning

450 hectares. The farm in the last financial year produced

235 hectares of white maize, and cotton was planted in an

area covering 28 hectares.

A further three farms are located in the Saron area in the

Western Cape. In this project a total of 178 hectares has

been used to plant grapes, 37 hectares has been used to

pant citrus fruit. Furthermore, there is potential to plant an

additional 92 hectares of grapes. The Daybreaker Poultry

project operates in Gauteng, Limpopo and Mpumalanga

and the combined projects have facilities to grow 1.6

million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES

The UIF concluded two investments in this regard that

include a BEE hospital manager, Busamed to build a

private hospital in Modderfontein and Fund Manager

Razorite Heatlhcare that focus on the provision of

affordable heathcare facilities that include rehabilitation

and sub-acute centres.

The Modderfontein hospital is a 220 hospital bed with subacute

facilities. This hospital is under construction. While

the RH Fund Manager has concluded seven investments

that include:

• Busamed with four hospital facilities

• HealthMed with two facilities

INVESTMENTS IN EDUCATION

UIF has invested in three investments that play a role

to unlock access to education. The investments were

concluded with Eduloan – an organisation that provides

financial support to tertiary students and South Point and

Educor organisations that provide student accommodation.

By March 2016, Eduloan had disbursed about R446 986.64

benefiting 34 047 students, whiles South Point provided

about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT

The UIF has concluded two investments with the aim of

supporting small and medium enterprises. In this regard

the PIC on behalf of UIF has concluded investment deals

with Musa Capital and TOSACO.

The investments will support more than 250 SMMEs across

various sectors inclusive of agriculture and affordable

housing. Musa Capital for example has a supply chain of

over 250 SMME’s that have facilitated the creation of 2 500

jobs.

TOSACO investments is planning to advance capital to

young black entrepreneurs who aspire to own and manage

Total Filling stations around the country.

For more information:

Call: 0800 843 843 or

visit: www.labour.gov.za


Brandvlei

Britstown

Garies

De Aar

Kliprand

R 27

Loeriesfontein

Carnarvon

N10

R 63

N12

Hanover

N7

R63

R63

Nieuwoudtville

Victoria West

R 63 Williston

N1

Loxton

Richmond

R 27

R27

Calvinia

R27 Vanrhynsdorp

R63

Vredendal

R27

Fraserburg

Three

Sisters

R 63

Graaff-Reinet

Lambert's Bay

Clanwilliam

Beaufort West

Aberdeen

R27

Sutherland

Cederberg

R 61

N12

N9

St Helena Bay

Citrusdal

Prince

Velddrif

Leeu-Gamka

Paternoster

Albert N1

Vredenburg Piketberg

Road

R44

R79

Saldanha

R45

N7

Klipplaat

Saldanha Bay

Moorreesburg

LangebaanR27

R45

R 44Tulbagh

Laingsburg

Prince Albert

Willowmore

Riebeek West

Matjiesfontein

R 46

Darling

Ceres Touwsrivier

Dassen Island

Calitzdorp

R62

N1

Ladismith

R43

Malmesbury

De Rust

R44

Uniondale

R45

Oudtshoorn

R 62

Paarl

R62

N12

Melkbosstrand

Rawsonville Montagu

Joubertina

N9

R60

Robben Island (World Heritage Site)

R43

Table Bay

Franschhoek Robertson Ashton R62 Barrydale

Kareedouw

Durbanville

George SedgefieldKnysna

N2

Villiersdorp Swellendam

Stormsrivier

Stellenbosch

Riversdale

Somerset

Genadendal

Herolds

Plettenberg

Fish Hoek West Grabouw

Heidelberg

Bay

Bay

N2 Riviersonderend

N2 Mossel Bay

Cape St Francis

Gordon's Bay

Vleesbaai

Simon's Town

Caledon

Motorway

False R44

Cape Bay Kleinmond Hermanus

Stillbaai

Main Road

Point

Bredasdorp Cape St Sebastian

R 43

Infanta

Railway

Walker Bay

Bay

0

100 km

Gansbaai

Arniston

Struisbaai

0 100 miles

Struisbaai

Quoin Point

Cape

Agulhas

Groen

CONTENTS

Tourism 106

New flights are bringing greater numbers of tourists to the

Western Cape.

Banking and financial services 110

The JSE has opened an Exchange Hub in Cape Town.

Information and communications technology 118

Cape Town is attracting ICT investment.

Business process outsourcing 119

Offshoring – foreign BPO contracts – is growing.

Government

South African National Government 120

An overview of South Africa’s national

government departments.

Western Cape Provincial Government 124

An overview of the Western Capes Provincial

Government departments.

Western Cape Local Government 126

An overview of the Western Cape municipalities.

Reference

Sector contents 68

Index 128

Maps

Western Cape locator map. 17

Western Cape provincial map. 125

Western Cape municipal map. 127

WESTERN CAPE PROVINCE

ATLANTIC OCEAN

N

CAPE TOWN

Sout

Wellington Worcester

Tankwa

Fish

Breede

Sak

Northern Cape

Riet

Western Cape

Touws

Bu fels

Dwyka

Groot

Gourits

Gamka

Leeuw

Olifants

Groen

Sout

Sout

Kariega

Ongers

Eastern Cape

Kouga

Groot

INDIAN OCEAN

Seekoei

Sundays

WESTERN CAPE BUSINESS 2017 10


CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: Simon Lewis

Writing: John Young and

Karen Kühlcke

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Ad sales: Sam Oliver, Gabriel

Venter, Jeremy Petersen, Nigel

Williams and Sydwell Adonis

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution and circulation:

Edward MacDonald

Printing: FA Print

Cover photo courtesy

of Rodger Bosch

www.rodgerbosch.co.za

Western Cape Business

A unique guide to business and investment

in the Western Cape.

The 2017 edition of Western Cape Business is the 10th issue

of this highly successful publication that, since its launch

in 2005, has established itself as the premier business and

investment guide to the Western Cape province.

The Western Cape has numerous promising investment and business

opportunities and this issue includes contributions from Alan Winde

(Minister of Economic Opportunities for the Western Cape Government),

interviews with Ryan Ravens (CEO of Accelerate Cape Town), Arifa Parkar

(Western Cape Business Opportunities Forum CEO), Wesgro CEO Tim

Harris and Lance Greyling (Invest Cape Town) as well as contributions from

various business leaders. In addition, you will also find comprehensive

features on all the key sectors in the Western Cape.

To complement the extensive local, national and international distribution

of the print edition of the magazine, the full content can also be

viewed online at www.westerncapebusiness.co.za. Updated information

on the Western Cape is also available through our monthly e-newsletter,

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

complementary business-to-business titles that cover all nine provinces

as well as our flagship South African Business title.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

CREDITS

DISTRIBUTION

Western Cape Business is distributed internationally on outgoing

and incoming trade missions, through trade and investment

agencies; at top national and international events; through

the offices of foreign representatives in South Africa; as well as

nationally and regionally via chambers of commerce, tourism

offices, airport lounges, provincial government departments,

municipalities and companies.

COPYRIGHT | Western Cape Business is an independent publication

published by Global Africa Network Media (Pty) Ltd. Full copyright to

the publication vests with Global Africa Network Media (Pty) Ltd. No part

of the publication may be reproduced in any form without the written

permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Pictures supplied by Anglo American, flickr.com,

Transnet National Ports Authority, Sasol, World Bank Images, City of Cape

Town, Wikimedia Commons, Pixabay, Accelerate, Northlink College, IRC

Wash, Aquacor, South African Tourism, Wikimedia, gewainer@flickr.com,

mycapetown.co.za, Railways Africa, pascalparentphotos, Pinterest, and FWJK.

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

Tel: +27 21 657 6200 | Fax: +27 21 674 6943

Email: info@gan.co.za | Website: www.gan.co.za

ISSN 1816-370X

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)

Ltd, has used all reasonable efforts to ensure that the information contained

in Western Cape Business is accurate and up-to-date, the publishers

make no representations as to the accuracy, quality, timeliness, or

completeness of the information. Global Africa Network will not accept

responsibility for any loss or damage suffered as a result of the use of or

any reliance placed on such information.

11

WESTERN CAPE BUSINESS 2017


MESSAGE

Growth strategy is paying off

Alan Winde, Western Cape Provincial Minister of Economic Opportunities,

explains how Project Khulisa will impact the province.

Alan Winde, Western Cape

Provincial Minister of

Economic Opportunities

In the Western Cape, we have

taken a focused approach to

job creation and growth.

To achieve this objective

we have put in place our Project

Khulisa growth strategy, which

focuses on a set of high-potential

sectors, namely tourism, agriprocessing

and oil and gas.

In each of these areas, we worked with the private sector to develop

tailored action plans to drive growth.

I am happy to report that we are making significant progress.

Tourism employs 204 000 people, and under Project Khulisa we

have set ourselves the goal of adding up to a further 100 000 jobs

to the sector. Through Project Khulisa we are focusing on driving an

increase in leisure and business tourism.

The Cape Town International Convention Centre (CTICC) continues

to deliver a significant contribution to economic growth. That is why

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

private investment into the Century City Conference Centre and Hotel.

The Aquarium added a conference facility when it upgraded and

many hotels are doing the same. A large number of hotels are being

developed, partly in response to increased conference numbers, but

also in response to general good growth figures in this space.

We know that conference delegates have a higher spend than

leisure tourists, and that they often return for a holiday with their

families. From here, they could purchase property in the region, or

decide to open a business here.

It is all interlinked. On the leisure front, we are driving an events

strategy to pull tourists to our smaller gem towns. From our investment

in seeding events, we have helped drive 150 000 tourists to travel in the

region, generating an economic impact of R240-million. Very shortly

we’ll be embarking on a project to define the competitive identity of

our region, creating a compelling story about who we are, what we

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

We’ll take the outcome of this process to market in 2017.

We are continuing with our plans to position the province as the

trail capital of Africa. This year we launched the first part of our cycle

track, which will eventually stretch from Plettenberg Bay to Cape Town.

The first 5km of the cycle route consists of bespoke-designed single

track on a section of land between Knysna and Sedgefield.

This track will become the backbone of a trail system driving

business to farms and communities all along our southern coastline.

We will also focus on culture and heritage tourism, food and wine

tourism, and our growing events economy.

In agri-processing, we are seeking to grow the size of the sector

and add up to 100 000 jobs.

Our plan to boost the sector includes efforts to increase halal

and wine exports, and to create an enabling environment for all

WESTERN CAPE BUSINESS 2017

12


MESSAGE

agri-processed products to flourish. We have made headway, together

with our partners, in our drive to increase water storage in the Brandvlei

Dam, and we have commissioned the equipment we require for our

residue-testing facility. All of the initiatives under Project Khulisa are

designed to open international markets for our produce, and I am

pleased with the progress we have achieved thus far.

Oil and gas also presents a significant opportunity to grow our

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

and increase its economic contribution to R3-billion.

One of our flagship initiatives in driving growth in the oil and gas

sector is the Saldanha Bay Industrial Development Zone along the West

Coast, which is being managed

by the Saldanha Bay Industrial

Development Zone Licencing

Company.

We’re seeing a good flow of

vessels along our coast and in

the pipeline is a major project

to recertify vessels here. The

lease between the Saldanha

Bay Industrial Development

Zone Licencing Company and

the Transnet National Ports

Authority (TNPA) is in place, and

we expect to start construction

next year. TNPA will also be asking

for a formal proposal from

an international consortium

to develop the 500m terminal

at Mossgas.

There’s been an overwhelmingly

positive investor response.

At the time of going to print, the

Licencing Company already has

Memorandums of Understanding

non-disclosure agreements and

rights of first refusal in place

with 36 companies, and building

plans have been submitted for

three firms.

They’re getting ready to start

construction as soon as the

necessary approvals have been

obtained.

Along with a focus on these

priority sectors, we have identified

strategic economic enablers.

These include securing an

affordable and reliable energy

supply and reducing red tape.

Through a focussed approach,

we are moving closer

towards reaching our goals,

and I am confident through our

partnerships, we will continue

to grow our economy, Better

Together.

13

WESTERN CAPE BUSINESS 2017


A REGIONAL OVERVIEW OF THE

WESTERN CAPE

PROVINCE


Tourism and technology are boosting the

Western Cape economy and Brexit offers

new opportunities for exporters.

The Western Cape straddles the west and

south-eastern coastlines of South Africa.

The province’s southernmost point is

Agulhas, which is also the southern tip of

Africa where the Atlantic and Indian oceans meet.

Trade with Europe (including Britain) has long

been the mainstay of the Western Cape’s export

income. The top three destinations in 2013 (the

Netherlands, the UK and Germany) combined to

import R17.2-billion worth of Western Cape goods.

The European Union (EU) signed an Economic

Partnership Agreement with the Southern African

Development Community (SADC) in June 2016

that included some very good news for the

Western Cape. For example, dairy products would

attract no duty, a range of geographic indicators

(including Karoo lamb and rooibos) were accepted,


SPECIAL FEATURE

and the amount of wine that could be exported was

increased from 50-million litres to 100-million litres.

Thirteen days later Britain voted to leave the EU.

This means that at least two new treaties have to be

signed: a SADC-EU treaty that excludes the UK from

the provisions and a new SADC-UK treaty. This could

present new opportunities for all parties but it does

mean that the landscape will be somewhat different.

The Western Cape stretches to the north along the

Atlantic Ocean about 400km from the provincial capital,

Cape Town. The Port of Saldanha Bay lies along this

coast; it is intended to become a hub for the maritime

repair and oil and gas industries. The eastern boundary

is defined by the Bloukrans River, which means

that tourism hotspot Plettenberg Bay falls within the

Western Cape. Beaufort West on the N1 highway is

the biggest town in the north-eastern section of the

province.

The province is well served with infrastructure

such as the N1 and N2 highways, and the N7 which

services the West Coast. Three ports at Saldanha Bay,

Cape Town and Mossel Bay serve different markets.

The Port of Cape Town has recently opened a Cruise

Terminal and a large new fuel storage terminal is being

constructed in the port.

Cape Town International Airport and George

Airport see to air travel needs. Cape Town also hosts

an oil refinery (Chevref) and a gas-to-liquids refinery

at Mossel Bay, which is run by the national oil

company, PetroSA.

Koeberg nuclear power station is South Africa’s

only such power station and there are a further three

open-cycle gas turbines and a pumped-water-storage

scheme. Wind and solar power are being installed

rapidly across the province as South Africa tries to end

its dependency on fossil fuels.

The population of the Western Cape is also well

served by educational institutions including the

University of Cape Town, the University of Stellenbosch,

the University of the Western Cape and the Cape

Peninsula University of Technology. Cape Town has

three Technical and Vocational Education and Training

(TVET) colleges and there are a further three for the

Boland, the Southern Cape and the West Coast, all

with multiple campuses.

The Cape Town International Convention Centre

is the province’s leading facility in the events and

conference field, and it is undergoing an extension

that will lead to its doubling in size. The extension

is due to open in 2017. Many hotels have conference

facilities and a large number of new hotels are being

built, particularly in and around Cape Town.

The national parliament is located in Cape Town

and there is a separate provincial legislature. The

Western Cape is unique among South Africa’s nine

provinces in that the Democratic Alliance (DA) runs the

province. The African National Congress is the majority

party in the national parliament and it controls the

other eight provinces.

The DA also governs most of the provincial municipalities

in the province, including the metropolitan

municipality of Cape Town. There are five district

municipalities, which are further divided into 24

local municipalities.

In 2015, the population of the Western Cape was

estimated to be 6.2-million. The official languages of

the province are Afrikaans, English and Xhosa.

The province has diverse climatic conditions and

geographical features. The north-west coastal strip

is dry but the valleys inland from the coast support

intensive citrus and grape cultivation. The Garden

Route regions of the Southern Cape are heavily

WESTERN CAPE BUSINESS 2017 16


SPECIAL FEATURE

forested. In between there are the rugged mountains

of the Cederberg, the wheat and barley fields

and winelands of the Boland and the Overberg, the

fruit-producing valleys of the Klein Karoo and the dry

plains of the Great Karoo. The province and the region

are most commonly associated with Table Mountain,

which watches over the city of Cape Town and forms

a national park of its own.

The Western Cape has the natural advantage of

access to the warm Agulhas current along the south

coast and the cold Benguela current up the west

coast, offering opportunities for a wide variety of

aquaculture and mariculture products to be farmed

along the province’s coastline.

Economy

Finance, business services and real estate combined

contribute 28% to the gross domestic product (GDP)

of the Western Cape. The financial services and insurance

sector in particular has been a key component

of the economy for many years, with many of South

Africa’s biggest companies having their headquarters

in Cape Town. Asset management and venture

capital companies have been growing strongly in

recent times.

Agriculture is another important sector. Although

only accounting for 4.3% of GDP on its own, the

sector is responsible for the fruit and vegetables

that contribute to agri-processing, which accounts

for nearly 40% of the province’s export basket. (Agriprocessing

accounts for 8.1% of GDP.) Citrus, wine,

apples and pears, grapes, fruit juice, fruit and nuts

and tobacco all appear in the top 10 of the province’s

exports. Seventy percent of South Africa’s beverage

exports came from the Western Cape over the last

decade. Grape and wine sales to Europe remain

very strong but the Chinese market is becoming

increasingly important.

Refined petroleum was the single biggest earner

for the Western Cape in 2015, with exports valued

at R18.2-billion (Wesgro).

The province has a diverse manufacturing sector

ranging from textiles, clothing, footwear and

furniture to coke and refined petroleum products.

Excluding agri-processing, other manufacturing

makes up 6.9% of GDP. Several significant foreign

investments have been received into the Western

Cape in recent years: Hisense, GlaxoSmithKline and

Kimberley-Clark, among others.

Sector growth

The Provincial Government of the Western Cape is

putting multiple resources into Project Khulisa, a

plan to promote growth in three sectors that will

also create new jobs: Oil and Gas, Agri-processing

and Tourism.

Other sectors that are also expected to grow

quickly are:

• ICT: Cape Town is already a knowledge hub with

banks supporting fintech hubs and several firms

making high-tech medical equipment. The City

of Cape Town has an ICT strategy and the Silicon

Cape Initiative is doing all it can to keep the momentum

going in this field.

• Film: The skyline near Somerset West has been

notable for the rigging of two huge sailing ships

17 WESTERN CAPE BUSINESS 2017


SPECIAL FEATURE

punctuating it for many months: this is the Cape

Town Film Studios, which hosted the Black Sails

production team. More than 19 000 filming permits

were issued by the City of Cape Town between

2014 and October 2016. Universal Studios

and Disney have a presence in Cape Town. The

city of George is another important hub for the

film industry.

Business Process Outsourcing (BPO): Amazon

and Asda are just two big international companies

that have call centres in Cape Town. Many

more have signed up for similar services, and

many more are expected. The national BPO association

says that 5 000 jobs were created in

South Africa in 2015, and it expects this to accelerate

in 2017.

• Green economy: Atlantis is being promoted as

a green economy manufacturing hub. The renewable

energy sector is growing very fast and

opportunities are opening in many fields; biogas

and use of waste are areas of huge potential. The

Western Cape Industrial Symbiosis Programme,

or WISP, has achieved some major milestones

in diverting organic waste and saving in greenhouse

fossil gases. WISP is a GreenCape initiative.

Each of the sectors listed above could be categorised

as “tech” industries. Another one that could fall

in this category is “design”. The Western Cape wants

to lead in innovation.

Renewable energy, the green economy, energy

efficiency – all of these related concepts, once just

a fuzzy dream, have become the bedrock of future

business plans.

Green buildings are becoming much more than

a “nice-to-have”. A planned residential development

in Somerset West, the Blue Rock Village with 1 000

flats, will be powered by solar power and have water

and energy management systems. The Hotel Verde

at Cape Town International Airport claims to be

carbon neutral and has a six-star rating from the

Green Building Council of South Africa.

Small, medium and micro enterprises are said

to create jobs faster than large concerns. To bolster

the SMME sector, the Industrial Development

Corporation is supporting the Philippi Village

Container Walk, an initiative of The Business Place

and Bertha Foundation initiative. A total of 127 containers

house entrepreneurs of every sort from shoe

shops, barbers and construction material retailers to

accountants, NGOs and a LEAP Science and Maths

School training centre.

The annual Premier’s Entrepreneurship

Recognition Awards (PERA) has received more than

1 000 entries since 2013. Some of the categories in

WESTERN CAPE BUSINESS 2017 18


SPECIAL FEATURE

2016 were for job creation (Doring Bay Abalone was

the winner), innovation (Praelexis, a data company)

and emerging rural business (Anja’s Pantry from

Vredenburg).

West Coast District Municipality

Towns: Saldanha Bay, Malmesbury, Clanwilliam,

Vredenburg, Moorreesburg.

The economy of this region ranges from manufacturing

in Saldanha, Atlantis and Malmesbury to

agriculture and forestry centred on inland towns

like Moorreesburg (wheat) and Cederberg (forestry)

and Citrusdal. Cement is made in Riebeek West and

Piketberg and fishing takes place all along the coast.

Rooibos tea and shoes are made in Clanwilliam. The

remote mission station of Wupperthal is famous for

its veldskoens. The Port of Saldanha Bay is the principal

port for the export of iron ore and is gearing

itself to service the continent’s oil and gas industry

and to be a steel manufacturing hub. Mineral sands

are mined north of Saldanha.

Cape Winelands District Municipality

Towns: Stellenbosch, Paarl, Worcester, Robertson,

Wellington, Franschhoek.

Nearly 70% of South Africa’s wine comes from this

area. Vineyards also attract many tourists but tourism

in the Winelands includes wellness spas, adventure

tourism and game farms. Manufacturing is concentrated

on processing grapes and fruit into wine, juice,

brandy, dried and tinned fruit products. Dairy manufacturer

Parmalat has an award-winning cheesemaking

facility in Bonnievale. Robertson is known

for roses and thoroughbred horses. Stellenbosch

is home to its eponymous university and houses

the headquarters of several large companies, such

as PSG Group.

Overberg District Municipality

Towns: Caledon, Bredasdorp, Hermanus,

Swellendam, Cape Agulhas.

The Overberg contains the southernmost tip of

Africa (Cape Agulhas), the oldest mission station in

South Africa (Genadendal), a large casino resort (in

Caledon) and some of the best whale viewing in the

world (Whale Coast). It also hosts some high-quality

fruit farms in the Ceres Valley and rural villages that

NAMIBIA

Northern Cape

Northern Cape

WESTERN

CAPE

BOTSWANA

North West

Free State

Eastern Cape

Limpopo

ZIMBABWE

Mpumalanga

Gauteng

SWAZI-

LAND

LESOTHO

KwaZulu-

Natal

are popular with tourists, such as Barrydale and

Greyton. Agriculture is the principal economic activity

of the region and the services sector is strong.

Eden District Municipality

Towns: George, Oudtshoorn, Calitzdorp, Knysna,

Mossel Bay, Plettenberg Bay.

The area has two important tourist components:

the Cape Garden Route on the coast and the Klein

Karoo between the mountain ranges. Route 62 is a

popular route that ends (or starts) in Oudtshoorn,

home of the Cango Caves. A report by the Bureau for

Economic Research (Stellenbosch University) found

that Eden District is one of the best-performing

regions because of tourism. Mossel Bay hosts the

country’s main gas-processing plant while George

is a node of manufacturing, trade, tourism and administration.

The Klein Karoo has its own wine route

and port, cheese and brandy are produced. Fruit,

vegetables and ostriches are other main products.

Central Karoo District Municipality

Towns: Beaufort West, Laingsburg, Prince Albert.

The largest district in the province has the smallest

population, a reflection of the semi-desert conditions.

Sheep farming predominates. Beaufort West

is strategically positioned on the N1 highway, which

links Cape Town with the interior of South Africa. It is

nearby the Karoo National Park and not far from Prince

Albert, a quaint town situated in the shadow of the

Swartberg Mountain. Prince Albert is a popular tourist

destination and is close to the dramatic portals that

link the Karoo to the Klein Karoo: Seweweekspoort,

the Swartberg Pass and Meiringspoort.

MOZAMBIQUE

19 WESTERN CAPE BUSINESS 2017


INTERVIEW

R2-billion of investment

into the Western Cape

Tim Harris, CEO of Wesgro, reviews a successful year for

business and investment in the Western Cape.

Wesgro CEO Tim Harris

BIOGRAPHY

Tim Harris is Chief Executive Officer

of Wesgro, the Western Cape’s official

Destination Marketing, Investment and

Trade Promotion Agency. Wesgro is

more than 30 years old and remains

the oldest organisation of its kind in

the country. Prior to that appointment

he was the Director of Trade and

Investment in the Office of the Executive

Mayor at the City of Cape Town and

the Shadow Minister of Finance with

Democratic Alliance in parliament.

He was elected to Parliament aged

29. Harris has a Masters in Economics

from UCT.

Please could you give an overview of Wesgro’s activities

over the year?

In a difficult economic climate, Wesgro has performed very strongly

over the past year.

Our work always begins with economic insight and the Wesgro

research team has helped deliver a much deeper understanding of

economic opportunities in the Western Cape, publishing 115 research

pieces over the past year. For example, there has been huge interest

in markets such as Angola, and our report on food and beverage opportunities

in Anglo was downloaded more than 1 500 times. So the

research team continues to give us the hard numbers we need to make

the case for business in the Western Cape.

The new Wesgro website (www.wesgro.co.za) was launched late

in 2016 with a much more interactive approach to data and business

intelligence. It will enable business in the Western Cape to be more

informed and able to realise opportunities quickly because of the work

that our economists are doing. We developed online dashboards for

Tourism and for Air Access, both of which are part of the Province’s

Project Khulisa initiative.

On the trade side, we were helped by the weakening of the rand,

and we trained more than 500 companies in export readiness, helping

them to build their capacity to export. We also took hundreds of companies

to market to help grow their global sales. For the first time this

year we really engaged with the new mandate that the Minister gave us

to help drive outward investments into the rest of Africa, so we are now

also helping Western Cape companies to establish operations in Africa.

On the investment side, we surpassed the R2-billion mark in terms of

investment landed in the Western Cape. Our biggest investment was a

R1.189-billion renewable energy project from Spanish-based Acciona in

the rural area of Gouda, which we worked on with GreenCape.

Overall, the investment we facilitated created 681 jobs, and

the agri-team in particular landed three deals including an abalone-farming

facility in Doringbaai and the world’s first commercial

fly farm in Philippi, so there was a strong performance

WESTERN CAPE BUSINESS 2017

20


INTERVIEW

from the investment team despite obvious

challenges in the global and local economy.

On the destination marketing side, the

Convention Bureau helped bring almost 28 000

new delegates to the Western Cape in the past year,

with the economic impact of R374-million from the

bids they landed for events in Cape Town. On the

Leisure Marketing side, we supported 48 events

around the province, helping to give people reasons

to travel out of Cape Town into the outlying regions,

particularly during the winter season.

The film team continues to position the Western

Cape as one of the top film destinations in the developing

world. They assisted 188 film and media

companies and conducted four events focused on

opportunities in the film sector.

“WE HELPED TO RAISE

SOUTH AFRICA’S GROWTH

RATE AND REDUCE

UNEMPLOYMENT”.

Air Access is a collaborative project that Wesgro

coordinated between key government organisations,

including the Western Cape Provincial

Government, City of Cape Town, Cape Town Tourism

and Airports Company South Africa. We’ve added

over 53 800 new two-way seats on a variety of flights

from regions all around the world, and are achieving

the objective of connecting Cape Town to Africa

and the world in a very practical way. Establishing

these flight connections is a great way of driving

trade, investment and tourism.

The relative performance of the Western Cape

continues to be impressive – we helped to raise

South Africa’s growth rate and reduce South Africa’s

unemployment rate. We’ve had 147 000 people net

moving into the Cape in the past decade according

to StatsSA, and almost half of those have come

from Gauteng, so South Africans are voting with

their feet for the Western Cape economy, bringing

skills, capital and experience. Entrepreneurs from all

backgrounds and from all race groups are seeing

opportunities to grow in the Western Cape.

What is the expected effect of Brexit on

business in the region?

Brexit is a risk but also an opportunity. The UK is

an important trading partner for us and they are

also one of the largest investors in the Western

Cape over the past decade (measured by number

of projects).

The uncertainty around the trading arrangements

with Britain is not a good thing, as uncertainty

is a disincentive for business. We’ve had several

engagements with the Consulate General and also

our largest agri-exporters who are very exposed to

the British market, to give them a view of what the

roadmap is for Brexit but also to focus on the opportunity

it might present. Right now our trade with

Britain is governed by EU trading arrangements, and

there exists the distinct possibility that we may be

able to negotiate more favourable terms when and

if Britain exits from the EU arrangement.

What impact will the Special Economic

Zones have?

The plan is to have two zones, with oil and gas services

at the Saldanha Bay IDZ, and clean technology

around Atlantis, which GreenCape is putting

together. What this shows is that Cape Town is being

defined as a leading global energy city. One of the

interesting results of the decline in the oil price is

that it’s forced many cities like Cape Town to look

at where the skills that were involved in the oil industry

can be deployed, and we found that many

of those technical skills are quite transferrable into

new energy like renewables and clean technologies

So there’s a synergy between those two , old

energy and renewables or new energy. Recently,

the Mayor invited the leading energy cities from

around the world to Cape Town and when we met

with them it became clear that Cape Town is really

special in terms of the broad package of energy opportunities

and most importantly skills to activate

those opportunities. I think when we look back in

a decade you will see Cape Town emerge as a real

energy capital for Africa.

21 WESTERN CAPE BUSINESS 2017


FOCUS

More than the voice

of business

The Cape Chamber is “where opportunity meets”.

Although we have never been as technologically connected

as we are today, the harsh reality is that we have never been

as disconnected socially as we are now, in spite of the prevalence

and growth of social media. The Cape Chamber offers

access to an established network where legitimate businesses can meet,

engage and grow. It is a dynamic and safe space for lowering risk, being

heard and finding opportunity.

We have been challenged with a macro economy that is showing

no sign of creating a buoyant platform for profitable business. However,

no matter what the prevailing climate is for business, there will always

be opportunity for those who seek it out and rise to the challenge.

If we used the rest of the country as a comparison, the Western

Cape’s economic performance is above the average. In addition, this

is a great place to live, work and play with Cape Town being a clean,

orderly and beautiful city that attracts innovative and dynamic individuals

who in turn infuse creativity and growth into the region. There are

many spin-offs to this, such as our substantially lower unemployment

rate (when compared to the average for South Africa). We also attract

considerable foreign direct investment, for example more than R200-

million invested by Kimberly Clarke, R260-million by Hisense and nearly

R1-billion by Amazon in BPO and tech projects.

Although the Cape Chamber, which is the oldest membership-based

organisation in Africa, will turn 213 years in 2017, it is not business as

usual. We have, as an organisation, embraced innovation to the extent

that it is in our very DNA. The result is a substantial member base who

advocate strongly for what the Chamber does and stands for.

We are considered the voice of business in the region. Our ability

to lobby is underpinned by our status of being fiercely independent.

We are not affiliated to any political party, and we are not beholden to

any single organisation. We monitor proposed legislation that could

impact business in the region, and where necessary, submit evidence

to the relevant Parliamentary Standing Committee or other authorities

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

said – we are heard and people in authority often heed what we say.

The Chamber is intimately connected with specialised sectors in the

economy through our Portfolio Committees that focus on agribusiness,

digital, economic development, HR, industrial focus, international trade

Cape Chamber President

Janine Myburgh

Cape Chamber Executive

Director Sid Peimer

and tourism, small business development

and transport. We have

a Youth Chamber that focuses

on the 13-to 25 year old scholars,

students and entrepreneurs, so

as to give them the leverage to

become successful. In addition,

we host the Port Liaison Forum,

a committee comprising users of

the Port of Cape Town, including

shipping lines, freight and forwarding

agents, cargo owners and port

officials. This facilitates a port that

WESTERN CAPE BUSINESS 2017

24


FOCUS

is run smoothly and effectively. We

also have various chapters across

the peninsula, each with its own

committee that focus on adding

value to the members in their

respective areas.

We play a significant role in

keeping our members informed

of the latest issues affecting business

and industry, both large

and small. To that end we host

a substantial number of seminars

and workshops to facilitate

information-sharing and training

for our members. We have had

many stimulating and informative

speakers address members at the

Chamber. These have included:

Professor Jonathan Jansen who

was, until recently, Vice Chancellor

of the University of the Free State;

Dr Annthea Jeffrey of the Institute

of Race Relations; Anette Steyn, the

Shadow Minister of Agriculture,

Forestry and Fishing; Dr Ivan

Meyer, the Western Cape Minister

of Finance; Ms Lumka Yengeni,

Chairperson of the Parliamentary

Labour Portfolio Committee;

Richard Walker, Regional

Manager Metrorail; Dr Mamphela

Ramphela, activist and one-time

MD of the World Bank; Mr Tshediso

Matona, Secretary of Planning

and Acting Director General of

the Department of Planning,

Monitoring and Evaluation, and

many more.

The Chamber is well respected

and we can attract high-profile

speakers to debate issues and

answer questions from our members.

Recent events that have

drawn much attention are our

“Rumble in the Urban Jungle”

series of debates. We had two in

2016 – the first featured the leader

of the EFF Julius Malema versus the futurist Clem Sunter, and our second

“rumble” pitted Finance Minister Pravin Gordhan against controversial

journalist and author Justice Malala. These events received extensive

coverage and were featured in all major media in addition to being

livestreamed to an international audience. But more importantly, they

provided information enabling listeners to make better decisions as

business people and citizens.

In addition to the numerous meetings and presentations, the

Chamber hosts a number of landmark events. Our Small Business Expo

attracts thousands and is growing at a phenomenal rate. We also introduced

the Cape Business Summit in 2016, with Google as one of the

keynote speakers. The Chamber also owns the Design for Living expo,

which in its heyday attracted 100 000 attendees, but was halted a number

of years ago. We are currently in the process of repositioning the expo

as Design for Future Living, which will attract exhibitors and attendees

who are interested in everything that affects our modern lifestyle.

Our Exporter of the Year competition celebrated its 26th year in 2016.

This competition brings together the Western Cape’s leading exporters

and provides an insight into the work and achievements of many companies

that are not necessarily well known to the public. The annual gala

awards dinner has become one of the highlights of the year and an outstanding

opportunity for networking. We also serve on the Board and run

the SA Chapter of the International Women’s Entrepreneurial Challenge, a

global competition that brings some of the foremost women in business

together, publicises their considerable achievements and allows them

to network with their peers at an international level.

In addition to all these events, we host both formal and informal

networking functions, allowing our members to leverage relationships

that they have built up through the Chamber. We offer business advice

covering a range of subjects from legislation to HR to tendering. There

is also an International Trade Desk, which is the first point of contact

for trade missions and visiting delegations who come to the Chamber

to interact with our members. The Chamber is authorised to issue

certificates of origin for exporters.

The Cape Chamber of Commerce & Industry is a respected and

admired brand that has managed to remain relevant in a rapidly

changing world. It’s “where opportunity meets”.

CONTACT INFO

Physical address: 4th Floor, 33 Martin Hammerschlag Way,

Foreshore, Cape Town 8001

Postal address: PO Box 204, Cape Town 8000

Tel: +27 21 402 4300 | Fax: +27 21 402 4302

Email: info@capechamber.co.za

Website: capechamber.co.za

25 WESTERN CAPE BUSINESS 2017


PROFILE

Western Cape Business

Opportunities Forum

The Western Cape Business Opportunities Forum (WECBOF) is a non-profit organisation

with a powerful voice for business in the southernmost region of the African continent,

the Western Cape.

Description

The Western Cape Business Opportunities Forum

(WECBOF) is a member-based organisation for business.

It has access to channels for information on

how to grow and develop businesses in mainly the

Small, Medium and Micro Enterprise (SMME) sector,

and is an enabler for its members to access new

business opportunities.

Service

WECBOF is a service association providing businesspeople

with relevant information, training,

business opportunities, and representation on

appropriate investment, public sector and related

platforms. It also ensures that it is represented on

the boards of relevant associations and affiliations

in order to ensure that its members are well-represented

and that opportunities are filtered to the

organisation for their benefit.

Business objective

WECBOF’s objective is to improve business performance

in order to achieve improved levels of economic

growth and employment, reduce poverty

and meet social objectives. In order to achieve its

objective, the organisation focuses on addressing

issues such as contributing to the establishment of

an environment that is conducive to a free market

based on competitiveness, access to financial and

other business support services, and expanding

markets for products and services.

Target market

The organisation’s target market is the entrepreneurial

community of the Western Cape, including

the SMME sector.

CONTACT INFO

Email addresses

General enquiries: office@wecbof.co.za

Chief Executive Officer: arifa@wecbof.co.za

Administration: rene@wecbof.co.za

WESTERN CAPE BUSINESS 2017

26


WECBOF: Where

entrepreneurs excel

Arifa Parkar is the CEO of the Western Cape Business

Opportunities Forum (WECBOF).

INTERVIEW

Arifa Parkar, CEO

BIOGRAPHY

Arifa Parkar completed her formal

education at the University

of Bombay and Mumbai, earning

a BA in Economics and Politics

before moving on to complete

her LLB in 1985. The same year

she acquired her qualifications in

Business Management. In 1999

she joined the Department of Economic

Affairs and Tourism before

becoming Marketing Manager

at the Cape Chamber in 2001.

She is an active member and

executive on the Committee of

the South African Institute of International

Affairs (Western Province

Branch) and was elected the 1st

President of Mafubo South Africa,

an international NGO.

In addition to her role as CEO

of WECBOF, Arifa also owns and

runs Aasha Investment Solutions

(Pty) Ltd.

You were born in Zanzibar, grew up in the Seychelles,

Mauritius and India… so when did Cape Town

become home?

I came to the shores of South Africa in 1991 and very soon after I

realised that this could very well be my final choice of a place to call

home. It just suited me in every aspect – the different cultures, the

“joie de vivre”, the diversity, and of course the cosmopolitan appeal of

Cape Town just spread its web around my heart.

Does your vast international experience enhance

WECBOF’s work?

Absolutely – I strongly believe that networking is the key to any business’s

success. Over the years my personal network has grown quite

significantly, and this will be the key to opening local, national and

international opportunities for WECBOF and our members.

How has WECBOF changed its focus in recent years?

WECBOF started out as a voice for coloured businesspeople, but today

it represents all South Africans with a common passion for entrepreneurship

in the Western Cape. This is our greatest achievement.

How does WECBOF encourage more opportunities for SMMEs?

To succeed in today’s collaborative, client-driven, networked economy,

companies must take advantage of the strength of their business

relationships to succeed. A new economy is emerging, one built on a

complex network of information, interaction and change. This evolving

business landscape, shaken by technological innovation, globalisation

and downsizing, has led us back to embracing the most fundamental

aspect of business: relationships. That is why WECBOF is in constant dialogue

with stakeholders so that we create an enabling environment for

our members, as well as those with whom we interact and do business.

Which of your accolades means the most to you?

I have two personal favourites that stand out from the rest, one from

CEO Magazine as the “Most Influential Woman in Business” Award,

and the second was awarded to me by Business Partners for my

“Contribution to SMMEs in the Western Cape”. These two are very

dear to my heart.

27 WESTERN CAPE BUSINESS 2017


DID YOU KNOW?

OMBDS 12.2016 L10069

OMBDS 12.2016 L10069

• 10 years ago the Masisizane Fund was established as an initiative of Old Mutual

South Africa following the closure of the Unclaimed Shares Trust.

• The Fund provides loan finance to small businesses.

• The mandate of the Fund is to contribute meaningfully to employment creation,

poverty eradication and reduction of inequality, economic growth and the attraction

of investment.

• The Fund honours the mandate through the promotion of entrepreneurship, enterprise

finance and support to small, micro and medium enterprises.

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

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

areas.

• Preference is given to businesses owned by youth, people with disabilities or are

owned by women (51% or more).

• In order to contribute meaningfully to job creation, productive and labour absorbing

sectors are targeted:

Agribusiness

Franchising

Supply Chain

Flagship initiative in agriculture in the Eastern Cape

• Over the last almost 10 years, the Western Cape has benefited from investments

from the Masisizane Fund in all of the sectors mentioned above to the value of more

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

made in this sector alone.

Old Mutual is a Licensed Financial Services Provider


MASISIZANE FUND

• The Fund supplies non-financial value-adding post-investment services including

capacity development, business management and technical support, financial

education, market development and product-service quality standards and

compliance.

• Masisizane plays a vital role in the assessment of potential suppliers to Old Mutual

and the further development of suppliers to include the creation of business to

business transactions with Old Mutual.

• Since 2012, the Masisizane Fund has offices in five of the nine provinces with the

national head office in Gauteng:

Gauteng (including North West & Free State) 011 217 1746

Western Cape (including Northern Cape) 021 509 5074

KwaZulu-Natal 031 335 0400

Eastern Cape 043 704 0116

Limpopo (including Mpumalanga) 015 287 4279

An initiative of the

Group


Down-town boom town, Cape Town

A number of high-visibility construction projects are under development in the Cape Town

CBD and surrounds.

Thousands of people happily meandering

through the streets of the inner-city till late

at night – that’s down-town Cape Town on

the first Thursday of every month. Started in

2012 as a way of attracting people to art galleries and

museums, the event has morphed into an urban festival

of fun, film, fashion, food and performance art.

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


SPECIAL FEATURE

The land earmarked for the Richmond Park development.

Cape Town’s central business district (CBD) delivers

a quarter of the city’s economic activity and about

30% of employment. Construction projects worth

R16-billion are either being built or are in the pipeline

for the CBD. Hundreds of hotel beds are being

added to the city’s tourist offering and public money

is going in to upgrades of the railway station and

the Iziko South African Museum. A new Cape Town

Museum is planned for the old Standard Bank building

on Adderley Street.

Major developments on both ends of the Foreshore

will transform the city’s connection to the harbour and

effectively extend the very successful formula of the

V&A Waterfront across the front of Cape Town.

A new cruise terminal on the western edge of the

Foreshore (north-west of the Cape Town International

Convention Centre, CTICC) welcomed 86 000 passengers

in its first year of operation. The tender to

run the terminal was won by the V&A Waterfront. The

Amdec Group is developing The Yacht Club directly

south of the terminal, a mix of commercial, residential

and hotel space.

This is part of a larger Port Gateway project that

aims to connect the city to the sea. The Roggebaai

Canal will be extended to Duncan Dock, providing a

link to both the CTICC and the Waterfront.

On the eastern edge of the Foreshore, a very

ambitious plan envisages two new hotels, flats, retail

space and offices rising out of ground currently occupied

by three car dealerships and a roadworthy

station on Christiaan Barnard Street. The Harbour

Arch concept is based on Johannesburg’s Melrose

Arch, with seven tower blocks to be constructed

on 200 000m², roughly half the footprint of the V&A

Waterfront. The Amdec Group are the owners and

developers of the project.

Further afield, a high-visibility site 17km from

Cape Town CBD is being developed as a mixed-use

commercial precinct with 300 000 m 2 of gross bulk

lettable area on a 99-year leasehold basis. Called

Richmond Park, it is anticipated that the development

will be popular with distribution and light

industrial businesses, but it will also incorporate a

retail centre.

Hotels

Marriott International’s introduction of three new

hotel brands to Cape Town forms part of the re-shaping

of the Foreshore. Both the Cape Town Marriott

Hotel Foreshore and the Residence Inn by Marriott

WESTERN CAPE BUSINESS 2017 32


SPECIAL FEATURE

will be part of the new Harbour Arch precinct, while

the AC Hotel will be attached to the Yacht Club and

be the first thing cruise line visitors see after they

emerge from dealing with customs authorities. The

three hotels will offer a total of 539 rooms.

The Rezidor Hotel Group is adding a sixth Cape

Town property to its portfolio with the opening

of the Radisson Red Hotel V&A Waterfront Cape

Town. The Capital Mirage opens in De Waterkant

in 2016 while the boutique Silo Hotel will perch

above the Zeitz Museum of Contemporary Art Africa,

which is going to display its contemporary art in the

Waterfront’s re-purposed grain silos.

Tsogo Sun is spending R680-million on the site

of the old Tulip Hotel to create a two-hotel and

conference complex. Fronting on Strand Street (and

Bree and Buitengracht), a total of 500 rooms will be

available in a SunSquare hotel and a StayEasy hotel.

Cape Town International Convention

Centre

Since it started operating in 1999, the CTICC has

added R38-billion to the regional economy. It is

jointly owned by the City of Cape Town (67.8%), the

Western Cape Government (25.3%), and SunWest

International (Pty) Ltd (6.9%). The Westin Hotel is on

the western edge of the conference centre complex

and several other large hotels are nearby, including

two Southern Sun hotels, Waterfront Cape Town

and The Cullinan.

Building is under way to double the size of the

CTICC, which will position Cape Town to handle

mega-conferences such as those dealing with climate

change. Two major conferences were recently

secured with the help of the Cape Town & Western

Cape Convention Bureau: the 18th International

Congress of Immunology (IUIS) and the International

Symposium on Microbial Ecology (ISME). The CTICC

bids were in competition with London, Paris, Mexico

and Toronto, Hawaii, Auckland, Beijing and Santiago.

These two events alone will bring 8 500 visitors

to the city.

In 2015/16, the CTICC generated R200-million in

revenue and earned R65-million in operating profit

by hosting 504 events.

Voortrekker Road Corridor development

The old road to the north is still a very busy road

but there are plans to bulk up Voortrekker Road

and make it an attractive investment destination.

The City of Cape Town has recently put infrastructure

worth more than R300-million into

supporting the plan, and has given money to the

Passenger Rail Agency of South Africa (PRASA)

for it to develop a plan to upgrade the rail corridor.

The Voortrekker Corridor is one of the

densest transport nodes, with rail, road and taxi

linkages throughout.

The Greater Tygerberg Partnership is driving

several initiatives to spur developments in the

region. These relate to attracting investment, affordable

housing, creating a world-class sporting

facility at the Haardekraaltjie precinct, and lobbying

for pedestrian malls, bike lanes and more

efficient public transport.

The City of Cape Town presented its Voortrekker

Road Corridor: Strategy and Investment Plan at the

African Real Estate and Infrastructure Summit at

the CTICC in November 2016.

33 WESTERN CAPE BUSINESS 2017


FOCUS

A world-class

convention centre

welcoming the world

By expanding its existing footprint, the CTICC is moving closer to its goal of becoming

one of the top convention centres in the world.

©ALAIN PROUST

The Cape Town International Convention Centre (CTICC) is a destination

of choice for conferences, exhibitions and business events on

the African continent. Located in the foreshore business precinct

in the City of Cape Town, the centre is currently undergoing an

impressive expansion project. The expansion – known as CTICC East – is

set to further the centre’s reputation for hosting the highest number of

international conferences in Africa and will allow it to simultaneously

host concurrent large-scale events across CTICC West (the original

facility) and CTICC East.

Only a 20-minute drive from Cape Town International Airport, the

CTICC offers:

• Two auditoria seating 1 500 and 612 delegates respectively

• A roof terrace for 380 delegates

• 33 breakout rooms of varying sizes accommodating 25-320

delegates

• 11 399m 2 of dedicated exhibition and tradeshow space

• Versatile banqueting and function rooms including a grand

ballroom of 2 000m 2 with breathtaking city views

• 1 400 parking bays

CTICC East, scheduled to open in July 2017, increases the centre’s capacity

with 10 000m 2 of multipurpose conference and exhibition space and

3 000m 2 of formal and informal meeting space. It has been awarded a

Four-Star Green Building Rating by the South African Green Building

Council.

The CTICC is a purpose-built

facility in one of the premier tourism

destination cities. Its expansion

bolsters its vision to deliver

extraordinary experiences to a far

broader audience and become

one of the top 10 convention

centres in the world.

CONTACT INFO

Physical address:

Convention Square, 1 Lower

Long Street, Cape Town

8001

Tel: +27 21 410 5000

Email: info@cticc.co.za

Website: www.cticc.co.za

Twitter: @ C T I C C _ O f fi c i a l

Facebook: facebook.com/

CTICC

WESTERN CAPE BUSINESS 2017

34


Experience Extraordinary

There’s a place where meetings, conventions and

celebrations are transformed from ordinary gatherings

into extraordinary experiences. A place where everyone

knows they are valued, where vision is shared, and where

today’s ideas come to life as tomorrow’s successful reality.

Here, a breathtaking location, a selection of superb venues

and facilities, and uncompromising VIP treatment for all

are brought together to offer your important guests an

unforgettable experience worthy of their status.

This place is Cape Town International Convention Centre.

And to experience it is to experience extraordinary.

To transform your special event into an extraordinary experience

contact CTICC: +27 21 410 5000 sales@cticc.co.za www.cticc.co.za


INTERVIEW

Cape Town’s new

warehousing hub

Gerrit van den Berg of Atterbury

outlines the proposal to develop Richmond Park.

Gerrit van den Berg

BIOGRAPHY

Gerrit, who heads up the Western

Cape offi ce for Atterbury, studied

a BCom Investment Management

at Tuks (the University of

Pretoria) before he started working

for a Johannesburg-based

developer. On his daily commute

between Pretoria and Johannesburg

he would drive past two

buildings being developed by

Atterbury. He was so impressed

with the look of the buildings that

he plucked up the courage to

approach the company for a job.

His initiative paid off and he has

been working for Atterbury since

2006. In January 2016 he moved

to the Western Cape to open the

regional offi ce in Stellenbosch.

What prompted the decision to develop Richmond Park?

Atterbury was approached by two individuals, Richard Glass and Daniel

Filippi, who saw an invitation to tender for the development of 84ha of

land adjacent to the suburb of Richwood along the N7 highway. They

invited us to join them in bidding for the land that had been advertised

following the awarding of a land claim.

We were impressed by the fact that the land is joined by key roads in the

north/central part of the city and is therefore very accessible and so were

delighted when the tender was awarded to our consortium.

How will the land claimants benefit from the project?

The 401 families who lived on the land in the 1970s and ‘80s were removed

against their will from the land by the former apartheid administration.

The land was returned to the original inhabitants following a successful

land claim.

Our tender bid specified that the original community members would

become a 25% shareholder in the final development project. The original

families and their descendants received a monetary amount when the

lease was registered and they will qualify for an annuity income from the

proceeds of the development – that is, once the development becomes

profitable and for the remainder of the 99-year lease.

Who are you targeting in terms of sales/leases and which

companies have signed up to move to Richmond Park?

We are targeting larger distribution and logistics companies, particularly

those requiring in excess of 5 000m 2 facilities. We have sold 3.5ha of land to

Cape Fruit Coolers, and also concluded a deal with CTM. We have earmarked

a retail development of 11 000m 2 at Richmond Corner with Pick n Pay, Clicks

and Planet Fitness as anchor tenants, scheduled to open in March 2018.

We estimate there is sufficient space to construct 300 000m 2 of bulk

in total.

www.richmondpark.biz

WESTERN CAPE BUSINESS 2017

36


BAT HQ, Cape Town

Mall of Africa, Waterfall City

Bagatelle Mall of Mauritius, Mauritius PwC HQ, Waterfall City Richmond Park, Cape Town

Randport Industrial, Germiston Mall of Engomi, Cyprus Shoppi, Serbia

From Africa, to Europe and beyond

Over 22 years Atterbury has created more than 20 shopping centres and many

other award-winning commercial developments. The company is proud of its

heritage and business associations, cementing Atterbury as a leading name in

property investment and development across the African continent and beyond.

atterbury.co.za


INTERVIEW

Driving investment

in Cape Town

Lance Greyling heads up the newly launched

Invest Cape Town initiative.

Lance Greyling

BIOGRAPHY

Lance Greyling has experience

in the private sector, civil society

and government. After some

time in the corporate world he

joined environmental organisation

Globe Southern Africa as the

programme manager for Southern

Africa. In 2003, he joined

the newly formed Independent

Democrats under Patricia de Lille

and was elected to Parliament

in 2004. He spent 11 years in

Parliament, serving on a number

of different portfolios, including

Trade and Industry, Finance,

Education, Environmental Affairs

and Energy. In February 2015, he

took up the position of Director

of Trade and Investment at the

City of Cape Town.

Please give some background on Invest Cape Town and

its role.

Cape Town is known the world over as a beautiful city and a tourist

destination, but we want to position Cape Town as a globally competitive

business destination – a great place to invest and a great place

to do business. If we are going to address our socio-economic challenges

as a city, we have to grow the economy and create more jobs.

We have the lowest rate of unemployment of all the metros, but it still

sits at around 20% which is far too high. If we’re going to make a dent

in that we have to position Cape Town in the minds of both local and

international investors as a globally competitive business destination,

and if they choose to invest here we will make it as easy as possible to

get their enterprise going.

What makes Cape Town an attractive destination

for investors?

There are a number of exciting things that are happening in Cape Town.

Firstly, potential investors coming to Cape Town realise that this is a

city that actually works – the infrastructure is in place, we have reliable

electricity and water, on an administrative level this is a city that is easy

to deal with, we’re very responsive to businesspeople and our citizens,

so we deal with issues quickly and make sure problems are resolved.

In terms of governance, we’re now the most stable metro in the

country, with a 65% majority, so there is continuity of policies and

governance. We’ve had unqualified audits for the past 10 years. This

factor is vitally important to investors.

Secondly, there are a number of interesting sectors that have

emerged in Cape Town, which investors will be particularly interested

in. We conducted a study of the Cape Town economy to identify areas

for growth, and what we found was that a lot of the sectors that Cape

Town is doing well in are sectors that are poised for big global growth

– sectors of the future.

An example is the ICT sector – we are very much the tech hub of

Africa with the most tech start-ups of any city on the continent, and

WESTERN CAPE BUSINESS 2017

38


INTERVIEW

we also have a mature ecosystem here that can

support tech companies.

In BPO (Business Process Outsourcing), we’re

the leader in South Africa and in Africa. There are

a number of global companies such as Amazon

running back-office and call-centre operations out

of Cape Town. This is another sector where we want

to attract more investors and where we have an

attractive offering.

In terms of the renewable energy and clean-tech

industries, we’re also a leader. We should shortly

receive national designation for a Special Economic

Zone in Atlantis for the clean-tech sector, and we

already account for about 60% of the manufacturing

of the renewable energy component for the

national programme.

“WE AIM TO POSITION CAPE

TOWN IN THE MINDS OF BOTH

LOCAL AND INTERNATIONAL

INVESTORS AS A GLOBALLY

COMPETITIVE BUSINESS

DESTINATION.”

We’re also seeing investment into advanced

manufacturing such as electronics. An example is

Hisense, which is expanding its operations in Atlantis,

and there’s an aerospace cluster in Somerset West

where there are a number of companies that are

producing satellites for the global market.

So we are doing well in the knowledge economy,

which is supported by the fact that we have four

higher education institutions here. This is a key point

for companies looking to invest as they know that

we have the requisite skills base.

Cape Town is also a place where people want

to come and live, so companies know they’re not

going to struggle to get people to come and work

for them if they base themselves here.

Cape Town is also the retail capital of South Africa,

with many of the retail giants headquartered here,

Shoprite being an example. This is a good base for

companies that are looking to penetrate the African

market, given our port infrastructure, and we also

have the financial and legal companies to underpin

and advance an African strategy.

Are there any incentives that you offer

to investors?

We’re limited at local government level in terms of

incentives we can offer, but we did pilot an incentive

scheme in Atlantis that worked phenomenally

well – the one financial incentive we were able to

offer was a discount on electricity, and companies

have taken that up, but actually the bigger incentive

that we offer is in the efficient allocation of land.

For example, a company looking to build a factory

here was able to make an investment decision and

within nine months buy the land from us, get all the

approvals, get the building plans done, construct

the factory and then open up their operation in a

record time. That’s where the real incentive lies, a

non-financial incentive – in our ability to fast-track

administrative processes.

And of course a Special Economic Zone for the

clean-tech sector would offer a national incentive

in terms of a lower tax rate, which is a big drawcard.

How are you taking the message about

Cape Town to the world?

First, we’re having three months of structured engagements

with key stakeholders and partners to

see what they require to get the message out about

Cape Town.

Although we have initiated this campaign, we

don’t see ourselves as owning it – we want people

to be economic ambassadors for Cape Town, to

engage with us as to the kind of materials that would

be useful to them when they go out on a global

mission. We will then craft the collateral for them

to use.

So it’s not just about us pushing out a message

of the City of Cape Town, but about us empowering

economic ambassadors for Cape Town and giving

them the materials to enable them to sell a good

story about Cape Town globally.

39 WESTERN CAPE BUSINESS 2017


INTERVIEW

Collaboration for

growth

CEO of Accelerate Cape Town, Ryan Ravens, explains how

the organisation is engaging with a variety of role-players to

shape growth in the city.

Ryan Ravens

BIOGRAPHY

Ryan Ravens has extensive

experience in leadership positions

in the public and private

sectors. Having served as the

masterplan project manager for

the FIFA 2010 World Cup, he

was subsequently headhunted

by the Gauteng Growth and Development

Agency. His next role

was CEO of a holding company

that invested in numerous initiatives

whereafter he joined Accelerate

Cape Town. He holds

three degrees including an MBA

from UCT.

How does Accelerate Cape Town differ from other

business organisations in the region?

Our model is very different to the chambers in that we represent or

aim to represent some of the largest corporates and we are not looking

to grow our membership massively. We keep our membership

small because we want to have the big players and the people who

can collectively shift the landscape, not people who are trying to use

the platform for business development. Having a small number allows

me to engage with them quite intimately, so I can have face-to-face

interaction with the CEOs on a regular basis.

We have 42 of the largest corporates as members, and we are

aiming to reach 50. The four universities, two business schools and

political leadership of the region are part of our network so it becomes

an effective network that should be capable of shifting the landscape

and driving the bigger game-changing projects in the region.

Our independence is important; we don’t accept any money from

government as that allows us to be an independent voice for the

private sector.

What are your key areas of activity?

When you have limited resources you have to make tough choices

as to what you can do, so we narrowed our focus to five key areas:

Talent

The first focus area is talent, specifically the transformation, attraction

and retention of young black talent in the corporate environment.

We found that companies have been spending a fortune to import

black talent to the Cape but once their orientation programme ends

and those people haven’t settled socially into the city and built social

capital, they’re on a plane going back. We do inspiration sessions aimed

at young leaders and young talent to help them build their personal

networks in the region and meet their peers in other corporates in

order to share experiences.

In 2016 we extended that reach to senior professionals who’ve

relocated to the Cape. Whether they’re foreign nationals or

WESTERN CAPE BUSINESS 2017

40


INTERVIEW

senior professionals from other parts of South

Africa, they are struggling to settle into the city and

they have similar issues except they have families. It

has become quite challenging for many corporates,

so we’ve launched what we call the “Welcome

to Cape Town” initiative. This is less serious than

our usual networking engagements because it’s

geared more towards showcasing the food, wine

and entertainment of the region, but ultimately

it’s about helping them meet their peers and the

feedback so far has been massively encouraging.

It’s fine focusing on talent, but if we’re serious

about transformation we also have to look

at the HR practitioners. We have started the HR

Practitioner Forum which brings together all the

senior HR leadership from across these corporates

to engage around specific issues. These include

the unintended consequences of the new BEE

codes and what that means, how they practically

implement transformation in their organisation

and best practices. There is an opportunity for

sharing, so that adds value. We’ve tried to create

linkages between our focus areas, so when we

talk about the Atlantis SEZ, for example, there’s a

tie-in with talent with respect to artisanal training

and so on.

WE DON’T ACCEPT ANY

MONEY FROM GOVERNMENT

AS THAT ALLOWS US TO BE

AN INDEPENDENT VOICE FOR

THE PRIVATE SECTOR.

Business leadership

The second focus area is business leadership, which

has two components. The first is the activities we do

with the leaders of these corporates which includes

intimate engagements with people such as Christo

Wiese, Simon Susman, etc, who act as mentors. We

engage around specific topics, junk status and Brexit

and the implications thereof. We invite people from

the National Treasury or the major banks to participate

and engage with the local CEOs.

We also host dinners with the Premier and the

Mayor, private events around one table so that CEOs

can engage with them on issues that are impacting

business in the region. This helps drive real working

relationships between business and government

not just talk shops and “protocol-observed”

type events.

In the second aspect of our business leadership

focus, we started reaching out to the diplomatic

corps by launching the Foreign Office Programme.

We been quite selective and have focused on the

Dutch, the Germans, the French and the English

because they are all actively involved in assisting

their corporates in this region. From the Asia

Pacific region it’s Japan, China, India and the USA,

and those eight represented our Foreign Office

Programme for 2016.

Connectedness

Our third area of focus is connectedness and again

there are two components. There’s physical connectedness

and we are doing a series of engagements

with Wesgro where we’re looking at issues

of traffic congestion. For example, quite a number

of members moving into the Waterfront are concerned

about the level of traffic congestion and the

way it is negatively impacting productivity. We are

exploring different options but also looking at rail

and freight logistics and the direct flights out of

Cape Town to key economic destinations.

Then there is virtual connectedness – the fibre

optic broadband infrastructure, the wifi zones, etc.

From a social development perspective, you want

that infrastructure in the townships. Research

has shown that a 10% increase in broadband

connectivity results in a 1.3% increase in GDP

growth. So the City decided to use its budget

and grow the infrastructure and then they came

to us and asked what the corporates could do

with open access networks.

Our corporates are very excited about it

because with these wifi zone and fibre optic

networks you have an opportunity to access

communities that they had difficulty in reaching.

41 WESTERN CAPE BUSINESS 2017


INTERVIEW

Allied to this is the City of Cape

Town’s strategy to position Cape

Town as Africa’s first smart city.

The City had a draft strategy for

this but it wanted input from regional

players. The tricky thing is

they couldn’t go directly to specific

corporates because that would

have meant those corporates

would have needed to be excluded

from the procurement process.

I suggested that they speak to us

because we are not-for-profit and

I could organise a workshop with

various role-players.

The first workshop was held

at the new Deloitte Greenhouse

facility and something amazing

happened. As the City officials outlined various

initiatives, the private sector representatives

started putting up their hands and saying things

like, “We already have a product that does that”, or

“We were planning to do that in five years anyway

based on our business strategy but now we know

it’s needed we can fast-track it”. So, whereas you

might have expected government to take the

lead in certain initiatives and for the corporates

to be gearing themselves up for the procurement,

it became clear the private sector could take the

lead now that they had the knowledge of where

government was intending to go.

We have now replicated that model for other key

initiatives such as big data, which is relevant to the

SKA project. One of the most interesting aspects of

the Square Kilometre Array project is that the facility

generates data at an absolutely unprecedented rate

and we have facilitated some very fruitful discussions

around associated opportunities.

Innovation

Allied to that is our fourth focus area, which is innovation.

We’ve narrowed the focus specifically to

academia and business, and have also created links

with the Technology Innovation Agency (TIA). We

are working specifically with the Technology Transfer

Office (TTO) at each university. Each university has

been mandated to establish a technology office

The Thought Leaders sessions are popular with Cape Town

businesspeople.

where they house all the inventions, all the innovations

and the spinout companies that come from

the university environment.

Commercialisation out of that incubation space

into mainstream commerce is a challenge and that’s

where the link with corporates becomes significant.

The advanced manufacturing and technology

that’s coming out of those TTOs has blown me away.

They attract finance because they’re good products

but what happens is, because it is headed by a sciences

or engineering graduate, it flounders because

there isn’t a depth of business experience.

We initially approached our corporate network

to find out if there were individuals who were willing

to act as directors with a view to mentoring

these young entrepreneurs and also to potentially

buying an equity stake. What we discovered is that

corporate managers are often governance focused,

whereas what a start-up needs is to grow its market,

to increase efficiency and product development,

and to implement systems required for growth.

Unfortunately, some of the corporate people were

stifling the start-up with that mindset so we are going

to develop a start-up mentorship course (an accredited

standardised course) that seasoned professionals

can take in order to help them understand start-ups.

We are also having conversations with players

in the e-learning space to drive effective e-learning

initiatives in our region.

WESTERN CAPE BUSINESS 2017

42


INTERVIEW

Welcome to Cape Town event, from left to right: CEO of Accelerate Cape Town Ryan Ravens, Katlego

Letlonkane Associate, Employment Law, Cliffe Dekker Hofmeyr Inc and Savarion Arendse, Old Mutual.

Sustainability

Our last focus area is sustainability – food, water and

energy security. The drought is obviously influencing

food security so we have had people talking

about innovative ways of managing water and

innovative agricultural practices.

Perhaps the most exciting programme in our

sustainability focus area is the application that has

been submitted to the dti to have Atlantis Green

Technology Industrial Park designated as a Special

Economic Zone.

We can’t compete with the Chinese in terms of

solar panel manufacturing and we don’t have the

engineering skill and the artisans who can build

related electrical engineering components. But what

every solar panel needs is a steel mounting structure;

what every electrical component needs is a steel

casing and steel components.

What we’ve been saying to Green Cape and provincial

government is, make steel the local content

component. You have all these big global traders

rushing in because they get a massive tax break (15%

versus the usual 29%). That is already a big pull factor,

but then you compel them to use local steel. This is

will improve prospects for our steel industry but also

stimulate the market for artisans (although demand

is already massive).

The problem in South Africa is we simply haven’t

produced enough artisans and recent studies

have shown if we are to implement the National

Development Plan and if we are to get our economy

back on track we need 40-60% of school

leavers doing artisanal training, but at the moment that

number is 8%.

We see this initiative in Atlantis as the optimal

opportunity to establish more artisanal training in

colleges. We want to grow the economy in a particular

direction but it has to be inclusive; there’s no

point in growing the economy in a direction that the

mass population cannot participate in.

As a result of our engagement with Airports

Company South Africa there is a chance that a facility

situated between Mitchells Plain, Khayelitsha and

Philippi could become the location of an artisanal

training college.

These are some examples of our tangible and

connected approach to growing the regional

economy.

www.acceleratecapetown.co.za

43 WESTERN CAPE BUSINESS 2017


SPECIAL FEATURE

South African economy at a glance

Insight into the performance of the South African economy is provided through these

graphical representations of key statistics.

ZIMBABWE

NAMIBIA

BOTSWANA

Limpopo

0.9% (7.1%)

MOZAMBIQUE

North West

-3.6% (6.5%)

Gauteng

2.1%

(34.3%)

Mpumalanga

2.7%

(7.5%)

SWAZI-

LAND

Northern Cape

2.8% (2.1%)

Free State

1.8%

(5%)

LESOTHO

KwaZulu-

Natal

2.3%

(16.1%)

Western Cape

2.0% (13.6%)

Eastern Cape

1.0% (7.6%)

SA GDP: Percentage of growth per province (2014) and percentage

contribution to national GDP (figures in brackets).

SOURCE: STATS SA WWW.STATSSA.GOV.ZA

PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND

Eastern Cape Bhisho

Phumulo

Masualle

6 916 200 168 966km 2 R289.9

Free State Bloemfontein

Elias Sekgobelo

"Ace" Magashule

2 817 900 129 825km 2 R189.1

Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6

KwaZulu-

Natal

Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1

Limpopo Polokwane

Stanley

Mathabatha

5 726 800 125 754km 2 R271.5

Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2

North West Mahikeng

Supra

Mahumapelo

3 707 000 104 882km 2 R249.5

Northern Cape Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9

Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R518.1

Snapshot of South Africa’s provinces

SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA

WESTERN CAPE BUSINESS 2017 44


SPECIAL FEATURE

How South Africa’s economy performed in 2015. *

* PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA

SECTOR LP MP GP NW KZN FS NC EC WC

Agriculture 2.5 2.8 0.4 2.1 3.8 4.3 6.0 7.5 3.5

Mining 29.4 24.9 3.3 33.6 1.9 13.3 26.7 0.2 0.3

Manufacturing 2.5 11.5 13.5 4.4 15.8 8.5 2.1 12.2 11.8

Electricity 2.8 5.4 2.4 1.4 2.5 3.1 3.0 1.4 2.0

Construction 2.5 3.3 4.3 2.6 3.0 2.0 1.6 2.1 4.3

Wholesale 10.8 10.3 14.2 9.3 15.5 12.3 9.9 14.7 17.0

Transport 5.4 5.8 8.3 6.1 11.9 7.1 7.8 7.9 9.1

Finances 14.0 10.9 22.8 11.1 16.5 14.2 11.6 18.6 26.6

Personal

Services

Government

Services

3.8 4.3 3.6 7.0 5.8 10.2 8.1 9.1 5.1

16.0 10.5 17.0 12.1 13.3 14.7 12.8 22.0 10.2

Taxes 10.3 10.3 10.1 10.3 10.0 10.3 10.2 10.2 10.0

Gross Domestic Product by province, percentage contribution.

SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1

45 WESTERN CAPE BUSINESS 2017


SPECIAL FEATURE

7%

6%

5%

4%

3%

2%

1%

0

2011 2012 2013 2014 2015 2016

CPI (percentages from 2011 to 2016)

PPI (percentages from 2011 to 2016)

denotes data for September 2016 rather than the average for the full year.

**

Inflation rate 2011 to 2016

SOURCE: WWW.STATSSA.GOV.ZA

Mineral products 20.41%

Precious metals 18.24%

Vehicles, aircraft and vessels 12.57%

Products iron and steel 12.02%

Machinery 9.69%

Chemicals 6.47%

Vegetables (including fruit, nuts and cereals) 4.96%

Prepared foodstuff (including beverages) 4.29%

Plastic and rubber 2.11%

Wood pulp and paper 1.92%

South Africa’s top 10 export commodity categories: 2015

SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA

Machinery 25.02%

Mineral products 16.12%

Vehicles, aircraft and vessels 10.4%

Chemicals 10.37%

Equipment components 7.3%

Products iron and steel 5.54%

Plastic and rubber 4.13%

Textiles 3.72%

Prepared foodstuff (including beverages) 2.93%

Photographic, medical equipment 2.71%

South Africa’s top 10 import commodity categories: 2015

SOURCE: SOUTH AFRICAN REVENUE SERVICE WWW.SARS.GOV.ZA

WESTERN CAPE BUSINESS 2017

46


Nedbank Corporate and

Investment Banking

FOCUS

Nedbank is banking on relationships with corporate clients.

Nedbank Corporate and Investment Banking provides expert

banking services, funding and transactional banking capabilities

to corporate clients. Its solutions are customised to

suit the needs of each client and the division is committed

to providing excellent client service – a commitment that is confirmed

by the high ratings consistently provided by client surveys.

“We are a relationship-driven business, focused on JSE-listed companies,

large unlisted companies, branches or subsidiaries of inbound

multinational entities and public sector entities at national, provincial

and local government level. The Coastal region incorporates the

Durban and Cape Town offices, with clients from Saldanha Bay in

the west to Richards Bay in the east,” says Alistair Pearce, Divisional

Executive of Nedbank Corporate and Investment Banking. “In the

Cape, we have two offices and focus mainly on the life assurance,

retail, media, asset management and oil industries, the consumer

goods and food sectors, and the public sector – the latter being a

sector we’re targeting for substantial growth.”

What we do differently

The division provides a differentiated client value proposition, based on

established relationships and an in-depth understanding of its clients’

businesses and the industries in which they operate. It provides a fullservice

wholesale banking offering – including lending, deposit-taking,

transactional banking, global trade services and asset finance – by way

of dedicated corporate bankers who are primarily responsible for dealing

with corporate clients.

Specific solutions

The division provides a variety of funding solutions amounting to

between R50-million and several billion rand from short-term and

working capital facilities, trade finance and letters of credit and

guarantees, to vanilla and complex term debt structures by way of

bilateral, club and syndicated transactions, the issuance of corporate

paper and other debt instruments. Leveraged buyouts (LBOs)

and management buyouts (MBOs) are also funded, with Nedbank

Corporate and Investment Banking acting as lead arranger, coarranger

or facility agent.

Transactional banking offers

full-spectrum domestic-clearing

bank services, including current

accounts, cash management and

electronic banking, through its

scalable Internet-based NetBank

Business system, its high-volume

host-to-host platform, Corporate

Payments System, and a full range

of cross-border and international

transactions. The deposit-taking

franchise is strong, with a range of

tenor-linked investment offerings

paying interest rates, linked to a

range of instruments.

Commitment to the

community

“As part of the Nedbank Group,

we are committed to making a

difference in the community in

which we operate and, through

the Nedbank Foundation, contribute

to a number of educational

causes. We are especially proud

of our Western Cape essay writing

competition in partnership with

the Western Cape Government”.

For more information on Nedbank

Corporate and Investment

Banking contact Alistair Pearce,

Divisional Executive on tel:

+27 21 416 6825 or email:

alistairp@nedbank.co.za

47

WESTERN CAPE BUSINESS 2017


FOCUS

Nedbank Business Banking:

Making it easier to

do business

Business customers benefit from Nedbank’s relationship-based banking model.

Great news for Cape business owners and entrepreneurs seeking

a unique banking experience: Nedbank Business Banking

has over 80 business managers located across the Western

Cape who are ready to assist you with professional advice

and industry-specific solutions.

“At Nedbank Business Banking we believe that you need a financial

partner who not only understands your circumstances and aspirations,

but can also provide you with relevant solutions and a banking experience

that is hassle-free, allowing you to concentrate on the running of

your business,” says Goolam Kader, Nedbank Business Banking’s Divisional

Executive for the Western Cape.

At the core of the bank’s offering is a relationship-based model, with

a business manager dedicated to your business as the key entry point

into the bank. Each business manager is part of a client services team,

additional members being a credit manager, credit analyst and services

manager, all of whom have a genuine interest in the success of each

individual business. “When you do business with us, you are speaking to

people who know the area and are familiar with the various industries

operating here,” explains Kader.

Kader adds that Nedbank is constantly innovating and these principles

are further embedded in our first-to-market approach with the launch of

Whole-View Business Banking, which emphasises that by partnering with

us, we are able to provide a holistic view of the client`s entire business.

This will have substantial benefits to our clients, including leveraging

skills and resources across the bank; better business, transactional and

cash flow solutions; better understanding of our client`s liquidity risk and

associated costs as well as improved overall pricing.

An added benefit of banking your business with Nedbank Business

Banking is that your business and your personal financial needs as well

as that of your employees can be managed in one place.

“Very often business owners and their businesses are financially dependent

on each other. Our client service teams now also offer individual

banking solutions, better advice and a hassle-free service to you and

Goolam Kader,

Nedbank Business Banking

Divisional Executive,

Western Cape

your staff as we already know and

understand your needs,” explains

Kader.

With this in mind, Nedbank

introduced Nedbank@Work – a

unique service to employees

of companies who bank with

Nedbank. The service facilitates

convenient banking at the workplace

through bankers or consultants

on site, in the branch or via our

call centre and internet channels.

In addition, Nedbank@Work offers

non-financial support to you and

your employees free of charge.

For more information call Goolam

Kader on +27 21 928 2000 or

email goolamk@nedbank.co.za

WESTERN CAPE BUSINESS 2017 48


Nedbank Retail Banking:

Making banking

accessible to all

FOCUS

Nedbank intends working with communities to make banking services more accessible.

Our clients are engaged by skilled, enabled and productive

staff who, through meaningful conversations, ensure we

deliver our clients’ needs and aspirations. As a bank for all,

Nedbank realises that communities and their representatives

are key stakeholders in our bank for all strategy. As such, the bank’s

strong relations with government, organised business and communities

remain a key focus in growing its client base of over seven-million.

Our presence in the Western Cape community goes a long way

in allowing for greater financial inclusion while contributing to social

upliftment and economic development.

Nedbank continues to grow its distribution presence across South

Africa, including the Western Cape as the fastest-growing province.

This enables us to provide accessible banking to all South Africans.

We continue to invest in our frontline staff that operate across 95 traditional

branches, eight relationship centres and seven personal loan

centres. Nedbank has embarked on a distribution strategy to convert

all traditional branches to “Branch(es) of the Future”.

Branches of the Future are equipped and enabled with world-class

technology to create a great place to bank for our clients and a great

place to work for our staff. We currently have 25 “Branch of the Future”

stores in the Western Cape. To make banking more convenient, we

currently have eight branches that operate and trade on a Sunday. For

further convenience to our clients, we have also increased our ATM

distribution to 606 and Intelligent Depositors to 127 in the province.

Nedbank’s client-centred approach has seen the bank intensify

its efforts in delivering a distinctive client experience through innovation.

The introduction of the award-winning Nedbank App Suite

is evidence of the bank’s progress and its understanding of client

needs. The App Suite serves as a virtual extension of our distribution

network operating from the palm of your hands. “It makes it easy for

clients to do their banking securely – from anywhere, anytime,” says

Sharon Smith: Regional General Manager of Western Cape Branch

Networks at Nedbank.

“Our offering in Western Cape Retail extends to Small Business

and Professional Banking. We believe that small business is a critical

segment of our economy and plays a key role in job creation. To

Sharon Smith, Nedbank

Regional General Manager

Branch Networks

support small businesses we have

dedicated relationship managers,

either in branch or in relationship

centres for every small business

account holder. We have a website

called ‘simplyBiz.co.za’ that

serves as a networking platform

for small business owners and

provides ongoing support in

numerous aspects of business.

We also have a fully integrated

electronic banking application

that incorporates payroll, as well

as accounting, all accessible via a

single platform,” Smith adds.

For more information about our

Nedbank Retail Banking offering

please call Sharon Smith on

+27 21 928 2000 or send an email

to sharonsmi@nedbank.co.za

49

WESTERN CAPE BUSINESS 2017


FOCUS

Accessible

onsite banking

Nedbank is happy to help its clients learn

to better manage their money.

Nedbank@Work aims to make a difference in the communities

in which we operate through financial wellness education

for all employees in both the private sector and government.

This is done through tailored financial fitness and consumer

education training. Our continuous involvement in corporate social

programmes in communities throughout the Western Cape also

supports growth and development.

How Nedbank@Work works for you, the employee

It’s hard to focus on anything if you are having personal financial challenges

like needing a personal loan, providing for school or university

fees, or for unexpected costs like funerals.

Unfortunately, dealing with a lot of these worrying financial issues

takes time and energy, and more often than not they can only be

sorted out during office hours, when you don’t have time.

That’s where Nedbank@Work comes in:

Nedbank@Work makes convenient banking at your workplace possible.

But, we offer more than just the convenience of having a relationship

banker on site to open accounts and address queries; we also help

you understand your financial position and work with you on a plan

to reach financial fitness.

What are the benefits of Nedbank@Work?

• You have access to a dedicated sales consultant, whose role is to

establish convenience and ensure the best service delivery for all

employees.

• Our financial fitness and consumer education training provides you

with the services and expert advice you need to help you better

manage your personal finances, make provision for unexpected

circumstances, provide for

your children’s education, etc.

• The Financial Fitness Trainer

will also be able to assist you

when it comes to improving

your credit ratings and managing

your budget.

• You also get great-vaue

banking products as well as

immediate access to your

salary if your company banks

with Nedbank.

• Peace of mind as a result of

financial well-being.

• We’re continuously there on

site, making it that much easier

to access and expand on and/

or enhance your existing suite

of banking products.

• And because we bring the

bank to your workplace, you

don’t have to waste your

lunchtime by going to the

bank to wait in long queues.

Any company or government

department interested in offering

the Nedbank@Work value to

their employees can contact the

Area Manager, Shamima Nazeer

on +27 21 412 3478 or email

ShamimaN@nedbank.co.za

WESTERN CAPE BUSINESS 2017 50


Make the most of your

money with our local and

international expertise

At Nedbank Financial Planning and Nedbank Private Wealth

we care about your financial security and goals.

FOCUS

This means ensuring that you have a plan to cater for your

circumstances as your needs evolve and change. We provide

clients with holistic financial planning and a range of services

to support this. As our client, you can build wealth by aligning

your decisions with your deepest values and highest aspirations.

We offer financial advice that is customised to each client’s needs.

For some clients, this is about establishing a financial plan, and for

others it may be about customised international estate planning

structures and intergenerational wealth transfers.

Based on your needs and circumstances, a Nedbank Financial

Planner or a dedicated Wealth Manager can help you make the

most of your money. To become a Nedbank Private Wealth client,

you need to earn at least R1.5-million per year and/or have R5-million

of investable assets. But if you don’t yet qualify, you can still benefit

from our specialist expertise through Nedbank Financial Planning.

We are here to help put a plan in place to grow your money to

achieve your financial aspirations.

Your Nedbank Financial

Planner and Nedbank Private

Wealth Manager have access to

specialist teams who can help

you:

• Structure sound estate and

succession plans to protect

your own interests and the

interest of your family

• Grow your money by investing

in a range of top local and

offshore investments, including

using our specialist stockbroking

service

• Protect your personal and

business assets against life’s

uncertainties through shortand

long-term insurance solutions

• Access your money whenever

and wherever it suits you

through a full range of local

and international banking

services available through a

single point of contact;

• Give your wealth a life beyond

yours by leaving a legacy with

our philanthropy services

Contact Nedbank Financial

Planning on 0861 238 887 or

contact Nedbank Private Wealth

on 0860 111 263.

Visit www.nedbank.co.za.

51

WESTERN CAPE BUSINESS 2017


FOCUS

Old Mutual’s

Provincial Management Board

Old Mutual’s Provincial Management Board (PMB) was created to enable positive futures

through collaboration at all levels of the organisation.

What are the Provincial

Management Boards?

Each province in South Africa

has a board that is served by an

Old Mutual Exco member and

representatives from the business

units, including Corporate, Retail

Affluent, Retail Mass, Old Mutual

Investment Group, Mutual & Federal

and Nedbank.

What is their objective?

The boards were established in order

to drive priorities and performance

in the regions. Our key objective is to promote

collaboration and efficiency by aligning projects,

decisions and resources of the different business

units in the regions. This is to help Old Mutual

South Africa (OMSA) execute its strategy in the

regions with greater effectiveness.

The boards enable us to maximise synergies and

cross-fertilisation between the different businesses

in the regions and allow us to approach customers

and the communities we serve as one green group.

They also play an important role in building our

brand and reputation:

How do they benefit the communities you

operate in?

Through the relationships they manage, the

Provincial Management Boards play a key role

in positively impacting South Africa’s socioeconomic

development in the regions.

It is key to our corporate culture that we strive

to improve the lives of people and uplift the

communities we serve, and we believe that this

helps to keep the OMSA fortress strong.

Savarion Arendse,

Provincial

Management Board

Chairman

We also fully support the National

Development Plan (NDP) as, for us, the

fundamental objectives of the Plan

(reducing poverty, unemployment

and inequality) can best be achieved

through forging healthy public and

private partnerships.

How important is networking

in order to achieve the Board’s

objectives?

We believe strongly in the importance of

networking. Senior members of OMSA

as well as the Old Mutual Investment

Group go on roadshows across South Africa a couple

of times a year to visit various regions and meet with

Provincial Management Boards, key stakeholders

and employees.

The main objective is to build strong relationships and

networks, and then to share these insights and updates

with our colleagues throughout the Old Mutual group.

Who makes up the PMB membership and

what are their roles and responsibilities?

The PMB comprises senior leadership of each

business unit represented in the province, in addition

to senior leadership (regional managers) for Nedbank

and Mutual & Federal, as well as the OMSA Exco.

The roles and responsibilities of the PMB

chairperson is as follows:

• Fostering collaboration.

• Removing obstacles to the PMB’s successful

delivery, adoption and use.

• Maintaining at all times the focus of the PMBs

on the agreed scope, outcomes and benefits.

• Monitoring and managing the factors outside

the PMB’s control that are critical to its success.

WESTERN CAPE BUSINESS 2017

52


Old Mutual SuperFund –

A Comprehensive Retirement

Solution

FOCUS

Old Mutual Corporate has developed a flexible and dynamic retirement savings umbrella

fund that offers substantial employee benefits – at the same time helping the company to

grow their appeal as an employer of choice.

Help your employees save for retirement

Every business in SA needs to incentivise and enable

its employees to save for their future – not only for

the wellbeing of those employees, but also to help

South Africa build a savings culture.

By making employee benefits more accessible,

flexible and affordable than ever before, Old Mutual

SuperFund offers a simple way for businesses to help

their employees save for retirement.

Old Mutual SuperFund is as unique as your company,

and delivers exactly the right solution, at the

right price, tailored to the needs of your business and

its employees – regardless of the size or diversity of

your workforce.

It does this by means of three simple, distinct and

highly effective retirement funding and risk cover

solutions, each with its own, flexible level of member

and employer choice.

As a result, Old Mutual SuperFund has made

employee benefits a reality for businesses of every

shape and size across South Africa. And it can do the

same for your business.

Why should you invest in employee

b e n e fi t s

Offering employee benefits unlocks significant

competitive advantages, not least of which is an

enhanced appeal as an employer of choice, so you

can compete effectively for the best talent.

• Adapts to the

changing needs of

your business;

• Integrates seamlessly

into your business

and payroll processes;

• Has simple eligibility

requirements to

maximize employee

access;

• Offers transparent,

simple and affordable

fees*;

Clint Beech,

Regional Sales

Manager

• Uses a risk-free authorised collection payment

processes; and

• Comes with dedicated, professional support.

For more information on Old Mutual SuperFund

visit www.oldmutual.co.za/superfund or speak

to your financial adviser.

* When comparing employee benefits costs with that of

our competitors, be sure to consider all the fees involved,

including those for investment management, advice,

and administration.

And when your employee benefits are delivered

through Old Mutual SuperFund, the benefits are

compounded because the solution:

53

WESTERN CAPE BUSINESS 2017


FOCUS

A passion for people

Old Mutual’s success as a trusted investment, savings, insurance and banking group

since 1845 has been built on financial acumen and dedication. Another critical aspect of

the Old Mutual business is the passion for the communities we serve, says Helene Africa,

Provincial Manager at Old Mutual.

How did the Mass Foundation Cluster

come into being?

Old Mutual is 170 years old but the Mass Foundation

Cluster started 40 years ago, primarily because we

identified a need in the middle-income market for

our products. Employers also asked for something

for their clients who were not in the high-income

bracket, such as a simple funeral product or even a

basic savings or retirement product.

As our clients evolved and our initial client basket

of two products became increasingly bigger until

we had a whole basket of products, even down to

education. We try to listen to our clients and help

them to progress with their financial life as their

needs change.

Today the Cluster includes the short-term

insurance product iWYZE through to financial

support products such as loans, consolidation

products and any financial need a client might have.

In the past clients would have to go to a competitor

for assistance with a loan and then other financial

products as their needs changed, so we realised

that we needed to look at a client’s financial needs

from a wider perspective to be able to retain them

as clients and also to accommodate their growing

needs. We operate through four divisions:

• Foundation Business Unit

• Retail Mass Business Unit

• Old Mutual Finance Business Unit

• iWYZE

However, our focus and vision continues to be centred

around our clients as we aim to be their most

trusted partner. As our customers are at the hub of

our business we constantly look at ways of earning

and building on their trust by delivering on time and

delivering value-for-money prodicts.

In what ways

has your business

adapted to

suit your clients

changing needs?

We launched new

technology aimed

at improving service

to our customers, as

we moved from a

manual environment

to paperless and

Helene Africa,

Provincial Manager

harnessing the power of technology. All our

advisers are now equipped with laptops and

they run everything through this, instead of

paper. Information is now captured from point

of sale in order to reduce errors and to prevent

a paper application from being lost. It has been

a big innovative move and shift for us but it was

essential as young people in particular want to do

things online without face-to-face interaction, so

it’s important to satisfy that need. This came about

because we always listen to what our clients want.

We are also constantly researching the digital

environment and what our future client is going

to look like.

What are some of the challenges you face

in doing your business?

Insurance is not a product that sells itself, and clients

don’t come knocking on your door. You have to go

out and create awareness about why these products

are important for them to consider.

The middle-income segment don’t necessarily

have lots of disposable income to cover

the costs related to death in a family or a serious

WESTERN CAPE BUSINESS 2017

54


FOCUS

injury or illness, so the need to have insurance is

definitely out there. However, there is a big

educational need, which is why we went on a

journey with our Financial Education which offers

the public information on money management

as well as financial workshops, and also employ

facilitators to train communities, clients or stakeholders.

Even if we don’t bring any business from these

workshops and initiatives, they have a wider

micro economic benefit, and this impacts on the

macro economy, so we see it as an important project.

However, once you start speaking to people it’s a

whole new world and they suddenly realise they have

been wasting money for a long time that could easily

have been used to protect or build their financial life.

It’s important to us to help people who aren’t earning

much to realise their dreams and to reach their goals.

What we aim to bring to the attention of our clients

is the fact that, when it comes to your finances, if you

make a mistake you won’t pay for it now – instead you

really pay for it in 10 to 15 years time. Unfortunately a

lot of people wake up too late and suffer financially.

This is also why it’s critical to get out there to the

young workforce in particular, because if we can

help people to start out with the right decisions and

products from the start of their career it will make a

tremendous difference to their financial future.

effort to work in and create opportunities to give

back through staff volunteering. Staff who want

to participate can choose if they want to give of

their time, or they can give from their paycheck. To

honour their contribution, Old Mutual then matches

that amount at the end of the year and distributes it

to the relevant communities.

We also make funds available for our staff

members who have been working on community

projects. This is our Staff Volunteerism programme

where Old Mutual will donate up to R20 000 to a

project if our staff are supporting it with their time.

This obviously gives back to the community, but it

also allows Old Mutual to honour and support our

staff who give of their time through a meaningful

cash donation.

What is different about how you do your

business?

With our Mass Business unit we pay our advisers

salaries, not commission. We find that salaried

staff are better able to offer the correct service

to the public and that distinguishes them from

commission earners who are, perhaps understandably,

motivated by their commission. By paying them a

salary we believe it allows them to really look after the

client and to build trust as a financial adviser, not

just a sales person. Our advisers are then better able

to sell a client what they need and what they can

afford, not what the salesperson wants in terms of

their commission.

Our aim is to provide that really good service

because then we start to build a good relationship

with the client and they will then hopefully want

to seek our advice for their other future needs. We

see it as really caring for their wellbeing and then

going on a journey with the client, and by seeing

them as a person.

We’re also very passionate about our people -

our clients and our staff – and if you walk into our

business you will get the sense for how they care.

That spirit has really helped to make us successful.

How else does Old Mutual give back to the

community?

We are passionate about giving back to the

communities in which we work, so we make an

55

WESTERN CAPE BUSINESS 2017


FOCUS

Old Mutual’s debt consolidation

Old Mutual Finance has developed a unique plan to help clients who are battling to

survive financially to consolidate their debt and save thousands of rands on initiation fees

and administration charges – helping clients to manage their finances in a smart way.

What makes our lending business

different?

At Old Mutual Finance, we have a deep rooted

respect for our customers, for their circumstances,

needs and culture. It drives us to treat customers

with dignity, provide outstanding service and to do

our utmost to provide the best financial solutions.

Old Mutual is known as the savings and

assurance powerhouse of South Africa. We also

recognise that lending is a reality for most people.

Generally lending and savings are seen as conflicting

needs and offerings. Old Mutual Finance therefore

takes an holistic view of customers’ savings, risk and

lending needs by providing a balanced basket of

products that meet these needs.

What are our lending principles?

• Affordability is the cornerstone of our lending.

Debt is often seen as bad. However, if used

responsibly and prudently, debt can open many

doors and opportunities for customers – think

about loans for education, home extensions etc.

It is therefore vital that customers understand their

repayment obligation and be able to afford the

loan instalments over the period of the loan.

• Financial education.

The financial services industry is complex and

financial terms can be equally confusing. During the

loan application process our Financial Consultants

provide basic financial education to this end.

• Spending time.

We prefer spending more time with customers

to ensure that they understand the loan process

and take their obligations under the agreements

seriously. Applying for a loan shouldn’t be as easy as

“buying a loaf of bread”.

Old Mutual Finance

has opened more than

250 new retail branches

conveniently located in

shopping centres, CBD’s

and near transport nodes,

offering lending, transactional

banking, insurance

sales and client servicing.

Each client receives a

free copy of their Experian

credit bureau profile as

part of our consultation,

along with guidance

Buyisile Keli,

Senior Provincial

Manager at Old

Mutual Finance

on what to do if certain of their bureau information is

incorrect. As part of our ongoing commitment to

financial education, clients are also informed about what

kinds of behaviour can improve their credit records.

Do the smart thing and contact your nearest Old

Mutual Finance Branch, and get your plan to financial

freedom.

Visit www.oldmutualfinance.co.za

to find your nearest branch or call us on

086 000 0886

WESTERN CAPE BUSINESS 2017

56


Advice that matters

FOCUS

Old Mutual has a dedicated team of advisers who are trained and accredited to offer you

expert advice backed by the experience of Old Mutual’s investment professionals.

You know the value of advice in your respective

field of expertise. At Old Mutual, we are not

business specialists, but we do know a lot about

financial planning.

We have a team of financial advisers who can give

you the right advice at the right time and create

financial security for you, your business and your

family. A personal financial adviser will meet with

you at your convenience, get to know you and

keep abreast of changes in your life and business,

in order to ensure your financial plan stays aligned.

Old Mutual provides financial advice for middleand

high-income customers through our

focus on our long-term savings, investment and

protection of business. We do this by delivering on

our promise to be every customer’s most trusted

financial partner, helping them to achieve their

lifetime goals.

We also believe true wealth is about more than

just how much money you have. It is about

being able to live the life you want. Our wealth

OLD MUTUAL PERSONAL FINANCIAL

ADVISERS

• Undergo mandatory Financial Advisory and

Intermediary Services (FAIS) compliance.

• Complete extensive training.

• Have access to in-house resources including

specialist advice on legal and tax issues.

• Have access to research and advanced

financial needs analysis and planning software.

management business

has a comprehensive

offering tailored to

meet the needs of high

net-worth individuals

through personalised

financial service to every

customer.

We build on our

heritage of trust

and accountability to

help our customers

thrive by enabling

them to achieve their

Barend van der

Westhuizen,

Regional General

Manager, PFA

Western Cape

financial goals. Our team of financial experts offer

you peace of mind in partnering with a company

with a track record of looking after our customers.

For more than 170 years, Old Mutual has been meeting

the diverse financial needs of millions of South

Africans. Let us do it for you as well.

Physical address: Carl Cronje Drive, Southgate

Office Park, 2nd Floor, Tyger Waterfront,

Bellville 7530.

Email: bvanderwesthuizen@oldmutual.com

Telephone: 021-974 8607 (office)

57

WESTERN CAPE BUSINESS 2017


Special Economic Zones are

boosting growth on the West Coast

Dedicated development hubs on the West Coast are tapping into the potential of two of

the fastest-growing economic sectors in Southern Africa – oil and gas and manufacturing

for the renewable energy sector.

The Department of Trade and Industry (dti) is the

lead agent in the creation of Special Economic

Zones (SEZs), which are part of the national

Industrial Policy Action Plan (IPAP). SEZs are designed

to attract investment, create jobs and boost

exports. Industrial Development Zones (IDZs) are

a type of SEZ.

Several incentives are available to investors in

SEZs. These include tax breaks from the South

African Revenue Service (SARS), subsidised interest

rates from the Industrial Development Corporation

(IDC), subsidies for employees earning below a

certain level and subsidies for the training of the

workforce, incentives and grants from the dti, and

incentives from national electricity utility Eskom.

Other benefits might include a building allowance,

employment incentives and the fact that an SEZ is

a customs-controlled area. Skills transfer is another

stated aim behind the SEZ programme.

Specific incentives relating to energy savings

and reductions in environmental impact are available,

both from Eskom and the dti. Within the dti’s

Manufacturing Competitiveness Enhancement

Programme there is a Green Energy Efficiency Fund,

all of which are designed to make investment – of

the right kind – more attractive.

Atlantis

The suburb of Atlantis was one of apartheid’s bad

experiments that left residents stranded far north

of the metropolis with no industry or employment

to speak of. The planned creation of an SEZ with

a focus on green technology is already changing

that reality. The SEZ is a collaboration between the

Western Cape Provincial Government (whose unit

GreenCape is taking the lead), the City of Cape Town

and the dti.

Although the SEZ has not officially been established,

several important investments have been

made into the area and the idea is gaining traction.

Spanish wind-tower manufacturer Gestamp

Renewable Industries (GRI) has added to its initial

investment of R300-million, which created 200

jobs. Others include Resolux (R25-million), which

WESTERN CAPE BUSINESS 2017

58


SPECIAL FEATURE

makes internal components of

wind turbines; Kaytech (a geotextiles

firm) which has recently

expanded (R130-million), as has

Skyward Windows (double glazing,

R50-million). All told, there

has been about R680-million

invested Atlantis in the green

technology field.

Chinese giant Hisense established

a high-tech factory in Atlantis

in 2013, and is keen to expand its

investment down the value chain,

especially using green technology

to make more efficient fridges and

television sets.

The proposed Atlantis Green

Tech SEZ has several particular incentives

available. These include:

• Financial measures including

an electricity tariff subsidy

• Exemption from land-use

application fees

• Assistance from the City of

Cape

• Town for companies to obtain faster environmental

authorisation from the

Department of Environmental Affairs and

Development Planning

The state (through the dti) is likely to pass legislation

that requires developers to increase the level of local

content on the solar panels or wind turbines that are

used in renewable energy projects. Any movement

in this sphere could benefit Atlantis.

Saldanha Bay

The Saldanha Bay Industrial Development Zone

(SBIDZ) has formally been in existence since 2013

and has ambitious plans to tap further into the

burgeoning oil rig maintenance and repair business.

About 130 rigs round the Cape every year, and at the

moment South Africa attracts only a tiny fraction

of them to its ports.

The SBIDZ fits neatly into two over-arching

visions: Operation Phakisa (the national

government’s strategy to unlock value from the

“Oceans Economy”) and Project Khulisa, the targeted

growth strategy of the Western Cape Provincial

Government, which includes servicing and repairing

of oil rigs as a priority. South Africa currently

accounts for 1% of the global market of ship repair

and refurbishment.

Priority sectors at Saldanha are upstream oil

and gas and marine engineering and services, and

32 companies have already signed non-disclosure

agreements as investors in the IDZ. The IDZ is run

by the SBIDZ-Licencing Company, which works together

with the Transnet National Ports Authority

(TNPA) on many joint projects.

These are being undertaken to create good conditions

for possible investors. Quay-side infrastructure

has been upgraded including a wastewater

treatment plant and a new road and bridge over

the MR559. Fencing and access control points in

support of the customs zone are being constructed.

Three major projects are under way or in the planning

stage and are overseen by national government,

the Southern African Oil and Gas Alliance (SAOGA)

and SBIDZ-LC:

Offshore Supply Base

Basil Read won the contract to extend TNPA’s

general maintenance quay to create an Offshore

Supply Base (OSB). The quayside is 294m with a

further 3.8ha being available onshore for support

operations. It will cater for ships and rigs looking for

oil along both coasts of Africa, and any other rigs

passing along the coast.

Berth 205

This is the name of a planned specialised rig and

vessel repair quay that will be able to cater to the

latest design in oil rigs.

Mossgas Jetty

Equipment and vessel-servicing facility: this

planned 1 000m-long jetty will be perpendicular

to the shoreline of the Port of Saldanha Bay. It

will have a maximum width of 120m and be able

to serve several ships or rigs in need of repairs or

servicing at the same time. In addition, there will

be a floating dock. TNPA has done several studies

on the possible location of the jetty and the local

and international market will be canvassed for

companies to do the work.

59 WESTERN CAPE BUSINESS 2017


FOCUS

Celebrating export

excellence

The well-established Western Cape Exporter of the Year Competition, hosted by the Cape

Chamber and sponsored by the ECIC, highlights the diversity of export products

originating in the province.

Finalists and winners at the ECIC/Cape Chamber Western Cape Exporter of the Year Competition.

Abagold Ltd, the Hermanus company that breeds, grows

and exports abalone by the ton, was declared the big

winner at the ECIC/Cape Chamber Western Cape Exporter

of the Year Competition at the gala dinner held on 13

October 2016 at the prestigious Cape Sun.

The Cape Chamber, which has served as the host for the awards

for 26 years, serves, enables and leads business in the region. The

Export Credit Insurance Corporation (ECIC) is the headline sponsor

of the competition and an underwriter of export credit loans and

investments.

The theme for the evening was

“out of this world”, and it was indeed

an intergalactic experience.

Incidentally, as the first African into

space, Mark Shuttlelworth’s company,

Thawte, was a previous competition

winner (and sold to VeriSign

shortly thereafter for R3.5-billion).

The 12 finalists for the 2016

awards included:

WESTERN CAPE BUSINESS 2017

60


FOCUS

• Abagold Ltd, the world’s largest

abalone producer outside

Asia

• Afrinatural Holding, producers

of natural botanical ingredients

from all over Africa

• All Women Recycling, transforming

plastic waste into

beautiful handicrafts

• Bassalicious, producers of a

range of vibrant and tasteful

natural sauces

• Chimpel, an innovative design

and manufacturing company

producing exotic leather

merchandise

• Franz Falke Textiles, producers

of socks and fine hosiery

• Geo Data Design, a geospatial

solution provider providing

industry-leading geographic

solutions tailor-made for

Africa

• JF Hillebrand, an international

service provider specialising

in the logistics of beer, wine,

spirits and keg supply chain

management

• Klein Karoo International,

the world’s leading producer

of ostrich goods, including

meat, leather, feathers and

by-products

• Mervyn Gers Ceramics, specialits

in bespoke dinnerware

designed in collaboration with

award-winning chefs

• Oh Voila design, manufacture,

retail and wholesale of

affordable fashion jewellery,

accessories and corporate

handmade gifts

• Peninsula Drums, specialises

in the manufacture and

reconditioning of metal

and plastic drums as well as

bulk containers

• Technical Systems, a key manufturer and world-wide distributor of

livestock feeding equipment

Abagold Ltd won both the overall prize for excellence in exporting, which

included R50 000 in cash and the Cape Chamber award for the best nonmanufacturing

company.

For the first time in the history of the competition, there was a tie

for second place with Franz Falke Textiles, which won R20 000 worth

of IT assistance from Auric Consulting, and Geo Data Design winning

a R20 000 branding refresh supplied by Fable Design (also an Auric

Consulting company).

The Transnet Port Terminals Trophy for the best engineering/manufacturing

company went to Franz Falke Textiles (Pty) Ltd. The company

makes 8.5-million pairs of running socks, mostly for the United States

market and is the first textile company to be an export winner for

many years.

Geo Data Design (Pty) Ltd, a company that interprets satellite images

and information, won the Credit Guarantee Small Exporter Trophy

and the Gerald Wolman Trophy for excellence in exporting to African

countries. It also shared the overall second prize with Franz Falke

Textiles (Pty) Ltd.

Another double winner was Technical Systems (Pty) Ltd, which

manufactures automated feeding systems for intensive pig and poultry

farms. It won the Bonitas Innovation Trophy and the SAGITA Trophy

for excellence in design.

The Nedbank Trophy for Transformation went to Bassalicious (Pty)

Ltd, a company that produces and exports quality sauces.

The Exporter of the Year is not judged on the volume or value of

product produced, but on excellence in exporting. This creates a level

playing field for both big and small exporters.

For the 2016 competition, we did some arithmetic and found that

the entrants earned more than R3-billion in foreign exchange for the

Western Cape. The finalists alone brought in more than R1.7-billion! Add

to that the previous entrants that continue to export, and we are looking

at many billions of rands brought into the Western Cape economy.

Also, the provincial government and the City of Cape Town are keen

to promote business and go out of their way to make it a little easier

to get things done. The Chamber believes that this kind of teamwork

and quality of enterprise and innovation shown by our exporters will

make for a better future for us all. Here’s to the 27th Exporter of the

Year in 2017!

For more information on the 2017 Exporter of the Year competition,

please email Mary-Jean Thomas-Johnson at mary-jean@

capechamber.co.za or contact her on +27 21 402 4300.

61 WESTERN CAPE BUSINESS 2017


Skills development

A number of investors are driving skills development in the province.

The Western Cape has two problems relating to

employment: not enough work for unskilled

workers, and not enough skilled workers to take

up available jobs. This double-sided challenge

is a legacy of apartheid and it exists throughout

South Africa.

Although the province has higher overall ratios of

highly skilled and skilled workers than the national

averages, less than 20% of the construction industry’s

workforce in the Western Cape is categorised

as skilled or highly skilled (Quantec, 2013). According

to a national business conditions survey conducted

in early 2016, a skills deficit is hampering the

construction industry.

Construction has been one of the best performing

sectors in the Western Cape economy for a number

of years, so improvement in this sphere is vital.

The food sector is the other important area where

work has to be done to impart skills to the workforce.

The Western Cape Provincial Government has

listed skills development as one of four key “enablers”

of the regional economy. A specific intervention

relevant to the construction industry is offered by

the provincial Department of Transport and Public

Works. Targeted training for emerging contractors

is presented in regional centres like Riversdale and

Worcester, and in Piketberg and Saldanha. The fourweek,

modular course, which covers issues such as

site management, safety and enterprise development,

allows contractors to continue running their

businesses while they study. The course supports

the Expanded Public Works Programme (EPWP).

Another provincial initiative was launched in

October 2016: the Western Cape’s Apprenticeship

Game Changer. Announced at the annual meeting

of the Premier’s Council on Skills, the Game Changer

aims to introduce 32 500 qualified apprentices into

the labour market by 2019. R1-billion has been allocated

over a three-year time frame. Businesses

have been asked to identify the specific skills they

need, so for example the oil and gas sector needs

welders certified to a certain level.

A range of interventions at national and regional

level have been launched to tackle the problem in

the public and private sphere:

• Six of South Africa’s biggest construction

companies have established a R1.25-billion

skills fund

WESTERN CAPE BUSINESS 2017

62


SPECIAL FEATURE

• The national Department

of Higher Education and

Training (DHET) declared the

period starting in 2014 as “The

Decade of the Artisan” with

a goal of producing 30 000

per year by 2026 (the current

figure is about 13 000)

• Sector Education and Training

Authorities (SETAs) collect

dues from companies in a particular

industry (Wholesale and

Retail, Banking, Construction,

Chemical Industries, for example)

in order to promote

training in that industry. A

percentage of this money is

returned to the company if

that company can show that

they have a workplace training

plan. The rest of the money

is used to offer skills training

• The National Skills Authority

(NSA) works with SETAs in carrying out the

National Skills Development Strategy (NSDS). The

Human Resource Development Council of South

Africa (HRDCSA) is an over-arching body that

aims to give guidance to the many institutions

working on skills development and training. It is

managed by the DHET. The HRDCSA has identified

five key areas where the skills pipeline must

be improved: access to TVET colleges; intermediate

skills (artisans in particular) and professionals;

production of academics; collaboration between

industry and educational institutions in research

and development; worker education and

foundational learning.

The strategic goal of the DHET is to create “a

capable and skilled workforce for inclusive growth”.

There are many institutions supporting this goal in

the Western Cape, including three academic universities,

one comprehensive university, one university

of technology and six Technical and Vocational

Education and Training (TVET) colleges. Unisa, the

country’s biggest distance learning institution, has

a strong presence in the province with a campus in

Cape Town and a service centre in George.

TVET colleges have been asked to concentrate

on 13 trade areas, including bricklayers, millwrights,

boilermakers and riggers. R16.5-billion has been allocated

by national government to skills development

and infrastructure over the medium term.

Technology

CiTi, the Cape Innovation and Technology Initiative, is

a Western Cape Provincial Government initiative. CiTi

is a technology hub with several components: The

Barn (supporting start-ups); VeloCiti (enterprise and

entrepreneurship development); CapaCiti (technology

skills development and placement).

The renewable energy sector holds great promise

for economic growth, and it should provide many

jobs but specific training is required. In collaboration

with the German government, the DHET has

invested more than R100-million in the South African

Renewable Technology Centre (SARTEC), a teaching

unit of the Cape Peninsula University of Technology

(CPUT). The Bellville campus of CPUT is training wind

turbine service technicians and providing qualifications

for trainers in the same field.

Stellenbosch University (SU) hosts the Centre for

Renewable and Sustainable Energy Studies (CRSES)

and the University of Cape Town has the Energy

Research Centre.

Young people are at the heart of the provincial

government’s drive to widen access to information

technology. As of 2016, a total of 181 MOD centres

had been established by the Department of Cultural

Affairs and Sport: MOD stands for Mass participation;

Opportunity and access; Development and

growth programme.

This is part of a broader, R9.4-billion, provincial

government plan to assist young people in areas

such as access to broadband, internships offered,

and the acquisition of technical skills.

TVETs and colleges

TVET colleges exist to impart skills that are relevant

to the workplace. The College of Cape Town has

eight campuses and its selection of courses gives

63 WESTERN CAPE BUSINESS 2017


SPECIAL FEATURE

a good illustration of the range

of studies available to students

at TVET colleges. Courses at CCT

range from engineering (electrical,

civil and mechanical), through

travel and tourism, hospitality, hair

care, beauty therapy and art and

design, to business studies, information

technology and education

and training. The college

has three residences in different

parts of the city. Career guidance

is offered and the college has a

work placement programme

for graduates.

Northlink College is in Cape

Town’s northern suburbs and

is an innovator in workplace

monitoring. It has three business

units that give students experience:

Hair and Cosmetology, the

Clothing Factory, and a restaurant

and conference centre. The

Fitting and Machining Centre of

Excellence at Wingfield has the

latest equipment.

False Bay TVET College

has campuses in Fish Hoek,

Muizenberg, Mitchells Plain,

Khayelitsha and Westlake.

Engineering skills are a key focus

for this college, together with

hospitality. Appropriately, given

its geographic locations, False

Bay TVET also teaches Yacht and Boat Building. The

college has an enrolment of more than 10 000.

Outside the Cape metropole, Boland College

looks after Stellenbosch, Worcester, Paarl and

Caledon, while the Southern Cape College covers

a wide area, from George to Beaufort West. The West

Coast College also has a big catchment area.

Private colleges such as MANCOSA (Management

College of Southern Africa) often specialise in particular

fields. In this case, a range of certificates, diplomas

and degrees in business, commerce and

administration is presented at five sites around South

Africa, including Cape Town. The business training

programmes of Africa Skills Private College include

courses on leadership, occupational health and

safety and new venture creation.

Universities

In 2014, a total of 5 680 engineers qualified from

South Africa’s 26 universities. A further 2 667 computer

scientists were capped but these numbers are

far from adequate to cater to South Africa’s economy.

Western Cape universities are very aware of the need

to align their courses and research programmes with

WESTERN CAPE BUSINESS 2017 64


SPECIAL FEATURE

the needs of the economy. However, pure research

cannot be ignored and in this area all three of the academic

universities are strong: the University of Cape

Town, Stellenbosch University and the University of

the Western Cape.

A Master of Business Administration (MBA) is

offered both by the Graduate School of Business

at UCT (which also has an executive MBA) and the

University of Stellenbosch Business School. USB also

presents an MPhil in Development Finance.

The National Nanoscience Postgraduate

Teaching and Training Platform is based at the

University of the Western Cape in Bellville, with master’s

degrees in nanoscience and nanotechnology

on offer. UWC also has 14 SARChi Chairs, including

Nano-Electrochemistry and Sensor Technology,

Bioinformatics and Human Health Genomics and

Microbial Genomics.

There are three World Health Organisation (WHO)

Collaborating Centres at UWC and the Centre of

Excellence in Food Security (with Pretoria University)

is funded by the National Research Foundation

and the Department of Science and Technology.

Biotechnology and food security come together in

the Plant Biotechnology Research Group at UWC,

which studies ways of developing crops that can

resist drought.

This kind of focus on specific challenges facing

society in South Africa is an example of universities

working to make their research relevant.

The University of Cape Town is offering a

course in Health Innovation that encourages talented

young South Africans to find solutions to the

country’s health problems. The MPhil in Health

Innovation falls under the Division of Biomedical

Engineering and is open to anyone with a four-year

degree in a relevant discipline, which could be anything

from medicine to engineering.

Several master’s degree programmes at UCT

aim to address the particular challenges of South

African society: the Climate Change and Sustainable

Development degree can be tackled through any

one of the university’s six faculties and in 2017 a new

degree will be on offer, a Master’s in Public Health

(Faculty of Health Sciences).

Another UCT degree that tackles a specific challenge

faced in the South African economy is a Master’s

in Sustainable Mineral Resource Development.

Stellenbosch University is another Western Cape

institution that is tackling sustainability: a diploma

will soon be on offer in this discipline, through the

School for Public Leadership. The university also intends

offering an MSc in Food and Nutrition Security

that will tackle the problem from several angles.

In George, students have access to courses offered

by the Nelson Mandela Metropolitan University

(NMMU): Saasveld is home to the School of Natural

Resource Management and the York Street Campus

delivers courses in business and social science,

accounting and business management.

Among the new courses on offer at the Cape

Peninsula University of Technology are diplomas

in geomatics (one of South Africa’s most soughtafter

skills to aid surveyors, town planners and civil

engineers), clothing and textile technology, and

horticulture and landscape architecture.

65 WESTERN CAPE BUSINESS 2017


PROFILE

College of Cape Town

The forward-looking college has a history dating back to

the early 20th century.

Louis van Niekerk,

Principal of the College

of Cape Town

The College is a

public Technical

and Vocational

Education &

Training (TVET)

College, under

the Department of

Higher Education

and Training.

Qualifications offered

are accredited,

affordable and

quality assured by

Umalusi, various

SETAs and SAQA.

Description of educational offerings

The College is a leading provider of education and

training in mainly the Technical and Vocational

Education and Training (TVET) band and has much

to offer students and prospective partners as an

alternative to Basic and Higher Education and

Training. Qualifications include skills programmes,

technical, vocational and occupational training

that lead to recognised, accredited qualifications

that are in high demand by commerce

and industry.

Students are able to pursue a range of courses in

the following disciplines:

• Art and Design

• Beauty Therapy

• Building and Civil Engineering

Business Studies

• Education and Training

• Electrical Engineering

• Hair Care

• Hospitality

• Information Technology

• Mechanical Engineering

• Travel and Tourism

Location of facilities

The College is situated in the central area of the

Peninsula. The central office is located in Salt

River, and the College of Cape Town also has

three residences.

It has eight campuses located in:

• Athlone

Cape Town city centre

• Crawford

• Gardens

• Guguletu

• Pinelands

• Thornton

• Wynberg

Support services

Students at the College may access a variety of

support services to assist them within coping with

problems and difficulties, whether personal or academic.

These services are provided free of charge

and include:

• Counselling

• Academic support

• Health education workshops

• Assistance in applying for loans (loans are not

supplied directly by the College)

WESTERN CAPE BUSINESS 2017

66


PROFILE

• Work placement services

• Social and cultural services

Key facts and figures

Year established: The College of Cape Town is

the oldest Technical and Vocational Education

and Training institution in South Africa with a

proud history dating back to the beginning of the

20th century.

As the name suggests, we are based in Cape Town.

Four former technical colleges, Athlone College,

Cape College, Sivuyile College and Western Province

Technical College, were officially merged on

1 February 2002 to become the College of Cape

Town. This arose from a rationalisation in TVET colleges

in which some 150 colleges around the country

were reduced to 50.

No of staff: 670 (full-time)

No of registered students: 14 379

Qualifications offered: Certificates, Higher

Certificates, Diplomas, UNISA B.Ed Degree

(Foundation Phase), Skills Programmes, Learnerships,

Accredited Trade Test Centre

CONTACT INFO

Key contact people:

Louis van Niekerk, Principal.

Wilfred Jackson, Chief Financial Officer.

Sharon Grobbelaar, Marketing Manager.

Physical address: 334 Albert Road,

Salt River, Cape Town 7945

Postal address: PO Box 1054,

Cape Town 8000

Tel: +27 21 404 6700 / 086 010 3682

Fax: +27 21 404 6701 / 086 615 0582

Email: info@cct.edu.za

Website: www.cct.edu.za

67 WESTERN CAPE BUSINESS 2017


INTERVIEW

Member-oriented

scheme strengthened

by high reserves

Christo Becker, Principal Officer of Selfmed, shares some

insights on the medical insurance industry.

Christo Becker

BIOGRAPHY

After completing his studies in

1996, Christo worked as a paramedic

in Cape Town and Port

Elizabeth (where he was seconded

to run the Eastern Cape

operation for Netcare911). He

furthered his career in healthcare

when he was appointed as

hospital manager for a hospital

in the Netcare Group. Christo

went on to manage a number

of other hospitals before joining

Selfmed Medical Scheme as the

Principal Officer in 2014.

Please provide an overview of Selfmed, including the

history and size of the organisation.

Selfmed Medical Scheme was established 50 years ago and it is one

of the older schemes in South Africa.

Providing coverage for about 8 000 principal members and 13 000

beneficiaries, we are one of the smaller schemes and we focus on providing

individual attention to our members. Our size allows us to do this.

Could you outline the different schemes?

Members are able to choose one of five medical aid options:

Selfnet – this entry-level product is our most affordable as it covers a

narrow band of benefits.

MedXX1 – a hospital plan that extends beyond the prescribed minimum

benefits and pays out at 100% of scheme rates for covered

in-hospital treatment and in-hospital doctor’s consultations.

Selfsure – an option that provides in-hospital and out-of-hospital

benefits and is a great choice for a family with young children.

Med Elite – a broader hospital plan that covers additional conditions

including greater coverage for oncology expenses, hip, knee and

back operations.

Selfmed 80% – 80% of bills relating to a wide range of conditions

are covered.

What is the solvency ratio of Selfmed and how does this

compare to other medical aid schemes?

Selfmed has a solvency ratio of 118%, which is way more than the 25%

mandatory requirement. We are one of the top schemes in the country

in terms of our reserves.

What differentiates your offerings from those of your

competitors?

Selfmed has a very strong member focus. As someone who has

previously worked as a paramedic and a hospital manager, I’m

passionate about healthcare. All of us share the passion and want

WESTERN CAPE BUSINESS 2017

68


INTERVIEW

to ensure our Selfmed members

receive good healthcare.

We are able to attend to requests

for ex-gratia payments

on a case-by-case basis and our

members appreciate knowing

that their health conditions are

not compared to other people’s,

but are evaluated individually.

Furthermore, because our

cash reserves are so high and

our systems (administration, call

centre and marketing, etc) are

managed internally, members

feel confident about the level of

service we can provide.

What is your view of the

National Health Insurance

(NHI) scheme and how do

you think it will impact private

healthcare in South

Africa?

We all support the idea that

healthcare should be accessible

to all, however, a number of issues

weren’t addressed in the White

Paper. These include what the basket of care will

look like and who will provide the care.

This is the first phase of a 14-year implementation

period and it is likely that the parameters of the NHI

will change during its implementation.

A specific risk for private healthcare providers

relates to the introduction of a one-payer system.

I don’t think people are going to be happy to take

the money they usually pay into a medical aid and

pay it into a centralised state-run system.

Given that the UK, with its lower unemployment

rate and higher number of taxpayers and health

professionals, struggles to deliver the desired level of

care via its National Health Service, it is unlikely that

that South Africa will have the reserves to roll out a

system that will rival private healthcare.

How does the South African healthcare

system compare internationally?

I believe that the private healthcare system in South

Africa – private medical care and medical insurance –

is equal to the best in the world. Many of our doctors

and medical professionals go overseas for training or

to attend medical conferences and we have some of

the most advanced medical equipment in the world

in our private hospitals. Furthermore, in countries like

the USA, medical care is far more expensive than it

generally is in South Africa.

Ideally, representatives of the entire healthcare

industry here should get together to discuss challenges

and collaborate on viable ways to solve

these so that quality healthcare can be made

accessible to more people.

Increased legislation, particularly legislation

relating to prescribed minimum benefits, has

meant that medical schemes are under increased

pressure though.

www.selfmed.co.za

69 WESTERN CAPE BUSINESS 2017


KEY SECTORS

Overview of the main economic

sectors of the Western Cape

Agriculture 72

Wine and grapes 76

Fishing 83

Mining 86

Oil and gas 88

Energy 92

Water 94

Manufacturing 98

Construction and

property development 104

Tourism 106

Banking and financial services 110

Information and

communications technology 118

Business process outsourcing 119


INTERVIEW

Focus on economic

game-changers

Western Cape Business spoke to Western Cape Provincial

Minister of Economic Opportunities Minister Alan Winde

about creating growth and jobs.

Alan Winde, Western Cape

Provincial Minister of

Economic Opportunities

BIOGRAPHY

Alan Winde became MEC for

Finance, Economic Development and

Tourism in May 2009, shortly after

the Democratic Alliance won the

Western Cape Province. Winde has

been a member of the Western Cape

Provincial Legislature since 1999. During

his first term he served as provincial

finance chairman and executive

committee member with the

Democratic Party. He has also

served as chief whip of the

official opposition in the West ern

Cape, as the DA spokesperson on

Environment and Planning and as the

deputy DA spokes person on Economic

Development and Tourism.

What is your brief?

Defining my job is easy. I am responsible for making provincial strategic

goal number one – creating growth and jobs, happen. Together with

my team, we’re looking at strategies to improve every facet of our

economy. We’re obsessed with making our region more competitive

and more compelling as a place to live, work and play.

When I came in for the second term, I was determined to become

the most accessible Ministry in South Africa, in touch with business

people and in the heart of the city. So we moved our office space to

a renovated ground-floor shop on Long Street.

What are your priorities?

We have identified a suite of economic game-changers. These include

getting rid of red tape so business can start and operate more

efficiently; securing stable energy for growth; improving broadband

access; and ensuring we meet the demand for skills.

For instance, in reducing red tape, in an area like the Voortrekker

Corridor space, how do we as government put pre-zoning in place? We

can do the environmental impact assessment (EIA), and the developer

submits a planning proposal. In this way, you enable an easier decisionmaking

process for developers. We need to put the levers in place so

that this process does not take six months, but six weeks.

Securing a reliable and affordable energy supply is also an important

enabler. In the Western Cape, our approach is to diversify our sources

of energy.

The Information Communication and Technology (ICT) sector is

growing at lightning speed. The Western Cape government’s incubators

at the Bandwidth Barns in Woodstock and Khayelitsha lead our

efforts to inculcate a culture of new tech innovations, led by driven

entrepreneurs, and there has been huge interest by the private sector

including French and British firms on the same mission. Barclays’ Rise

Cape Town supports fintech companies. They have put money into

WESTERN CAPE BUSINESS 2017

72


New York, London and Manchester, and also in Cape

Town. DVT’s app-testing facility just off the N1 is the

biggest in the southern hemisphere.

With regard to skills, we have an artisanal focus

and are aiming to produce 32 500 artisans in the next

three years. To get the last mile done, on-the-job

training, we have to get businesses on board to offer

the required in-service training component.

Does the green economy hold potential for

the Western Cape?

We are very excited about a recent Moody’s report,

which found that the green economy in South Africa

is the fastest growing in Africa, and is one of the

fastest in the world. The Western Cape hosts 70%

of green economy manufacturing and 60% of head

offices of green economy companies. GreenCape has

a mandate to grow the green economy.

Do you have a focus on particular sectors?

At the start of the new five-year term in 2014, we

worked with McKinsey and Company to conduct a

deep-dive study into our economy. Drawing from

best practice in emerging market economies from all

over the world, they helped us develop a choice strategy:

let’s concentrate on fewer sectors and drill much

deeper. These sectors were tourism, agri-processing

and oil and gas. This became Project Khulisa, which

means “cause to grow” in isiXhosa.

What were the key factors in choosing

these sectors?

Project Khulisa earmarked the following sectors as

the biggest growth engines for the next five years:

• Agri-processing had 1.8% growth in Gross Value

Add (GVA) and 7.7% jobs growth

• Tourism was growing at 6.8% GVA growth and

7.8% jobs growth

The next sectors on the list were ICT, BPO and film

with the green economy cutting across many sectors.

Can you give examples of how your department

supports businesses in the key

sectors?

We are driving a suite of initiatives to grow agriprocessing,

under the banner of Project Khulisa.

These include efforts to boost halaal and wine

INTERVIEW

exports, and to create an enabling environment

for all agri-processed products to flourish. We have

made headway, together with our partners, in our

drive to increase water storage in the Brandvlei Dam

so that more hectares can come under irrigation,

producing more product for agri-processed goods.

We have also commissioned the equipment we

require for our residue testing facility, so that we

can accomplish the testing required to export more

product to key international markets. All of the initiatives

under Project Khulisa are designed to open

international markets for our produce.

As part of Project Khulisa, we have also prioritised

direct air access. We are pleased with the significant

impact of the work we’ve done in boosting arrivals

to our province.

There has been an impressive 60% increase in

Origin and Destination (O&D) passengers coming

through Qatar since the project started. There has

been an increase of 53% in O&D passengers from

Turkey from 36 348 to 55 714. This growth is linked

to the landing of direct Turkish Airlines flights into

Cape Town.

In total, between July 2015 and December 2016,

we will have expanded six direct routes and established

two new direct routes, resulting in 400 000

additional two-way seats to Cape Town.

What are some of the indicators of this

good growth?

A total of 654 000m² was approved for construction

in the Western Cape in 2015, nine times more

than the figure approved in Gauteng. Absa is

centralising its operations at Century City, British

American Tobacco has just moved into offices at

the Waterfront. Hisense, which already has a manufacturing

facility in Atlantis, is working at how it can

plug into the green economy. It is looking to treble

or quadruple its investment into the region. Recently

Cape Town received an award as best offshoring

destination from a British outsourcing organisation.

This is testament to the business confidence in the

Western Cape.

73

WESTERN CAPE BUSINESS 2017


OVERVIEW

Agriculture

Processing plants boost rural employment.

While the contribution of agriculture to provincial gross

domestic product (GDP) is small at 4.2%, the fact that

nearly 40% of exports from the Western Cape derive

from fruit or agri-processing makes this a vital sector to

the health of the regional economy.

Seven of the 10 biggest export earners are either agricultural

products or agri-processed goods.

In the national context, agricultural products made up 5.2% of the

country’s export basket in 2015. The African continent accounted for

22.7% of total exports.

Wheat is another of the province’s strong sectors: the Western Cape’s

310 000ha planted to wheat in 2015 represented 64% of South Africa’s

crop. Japan is a major destination of the province’s maize production.

In canola, the Western Cape is even more dominant, with 99% of the

nation’s hectares. (StatsSA). A working group of the Protein Research

Foundation is developing strategies to increase the yields and plantings

of canola. A canola symposium was held in Bredasdorp in 2016.

The province’s climatic regions vary from Mediterranean around

Cape Town and on the coast (where rainfall can be 2 000mm at places)

to the drier regions of the inland Karoo districts where annual rainfall

SECTOR INSIGHT

A new testing centre will be

built in the Western Cape to

certify agricultural products

for export to the EU.

figures can be below 150mm.

Just over three-million hectares

of the province is cultivated and

270 000ha are under irrigation.

The sector supports almost

10 000 farms and employs

214 000 people. Farming carried out

on the Western Cape’s 13-million

hectares of agricultural land comprises

approximately 21% of South

African commercial agriculture.

The Provincial Government

of the Western Cape has identi-

WESTERN CAPE BUSINESS 2017

74


OVERVIEW

fied agri-processing as one of

the three key sectors that can

deliver high growth and lots of

jobs. Over a five-year period to

2014, the sector grew at nearly

5% and delivered jobs growth of

more than 7%.

Agri-processing holds potential

to increase employment

in rural areas. If it receives the

dedicated attention and support,

it could add up to 100 000

jobs and generate R26-billion

for the economy under a highgrowth

scenario.

Among the areas on the todo

list of Western Cape Minister

for Economic Opportunities Alan

Winde, whose ministry is responsible

for agriculture, is to bring

more irrigated land on-stream

to increase product into the

agri-processing chain; to keep

promoting wine sales to the

world; to expand African exports

(Angola is proving a good first

step); investigating whether the

Western Cape can tap into the

global halaal market said to be

worth $2.3-trillion; and to build

a testing centre for agricultural

products so they can be certified

for sale into the European Union

(EU).

Zoning laws also have to be

adopted to promote growth in

rural areas. He gives an example

of a fruit pulping and drying company

in the small town of Gouda,

which was restricted by zoning

laws when it wanted to expand

its factory space beyond 1 000m².

“They are growing at 65% and you

are telling them to pack up and

move to the city? Gouda loses

1 000 jobs!” Winde says that it

must be the objective of government

and planners to create an enabling environment for companies

to expand.

In presenting his 2016/17 budget, Minister Winde said that the number

of jobs in the agricultural sector had grown by 63% in a year, citing

StatsSA data. This figure included seasonal jobs.

Many more opportunities for employment may come about if the trend

reported on by City Press in August of 2016 grows bigger: experienced

citrus farmers moving to the Western Cape from other areas. Reporting

that five farmers from Limpopo and the Eastern Cape had bought farms in

Citrusdal, Robertson and Wellington, the newspaper noted that the variety

of new fruit types (apart from lemons and other citrus fruit) to be planted

by these new farmers would supply work all-year round for local people.

Mandarins, seedless watermelons and squash are among the other fruits.

There is also good news for agriculture in the Western Cape – out

of Gauteng. South African Breweries has built a new malting plant in

that province. To get to an annual production figure of 130 000 tons of

malted barley for the new facility, more barley will have to be grown.

The locally-sourced barley that SAB buys will rise from 65% to 95% of

total stock. The company’s only other malting facility is in the heart

of barley-growing country, at Caledon in the Overberg region, where

180 000 tons are processed every year.

The Western Cape is a major producer of fruit and vegetables and is by

far the biggest producer of peaches in South Africa. The country produces

about 60 000 tons per year.

Only 1% of South Africa’s fruit is dried, but that still represents 51 000

tons of product. The Western Cape is strong in dried fruit and nuts with

Montagu Dried Fruit and Nuts, Cape Dried Fruit Packers (also based in

the Boland town of Montagu), and Safari among the biggest producers

and distributors.

POSITION COMMODITY AMOUNT

1 Refined petroleum R18.2bn

2 Citrus R8.6bn

3 Wine R8.6bn

4 Apples and pears R6bn

5 Grapes R6bn

6 Iron and steel R3bn

7 Fruit juice R2.2bn

8 Fruit and nuts R2.1bn

9 Tobacco R1.8bn

10 Engine parts R1.6bn

Top 10 exports 2015

SOURCE: QUANTEC, 2015

75 WESTERN CAPE BUSINESS 2017


OVERVIEW

The estimated cost of the

drought to the wine and fruit industries

is about R1.2-billion.

Companies

Drought

A severe drought has had an effect on all agricultural enterprises

throughout South Africa.

For some time now, most regions have not received the rainfall they

expected. Rainfall recorded in September 2016 in the Central Karoo

ranged between 0mm and 2mm. This will affect grazing for animals

in summer. Irrigation in most areas has been affected and in some

places has had to be stopped.

Although the Western Cape’s winter grain crop regions received

some timely rain, a long-term “climate response action plan” has

been introduced called Smart Agri. This is a partnership between the

provincial government, the private sector and academic institutions.

Among the recommendations for the way forward is conservation

agriculture, which is being tested at the provincial research farm,

Langgewens. Minimum tillage and crop rotation are among the strategies

being adopted.

Zeder Investments is the agricultural

arm of investment holding

company PSG Group (which

has become well known to the

general public through Capitec

Bank and Curro schools). Zeder

has been very active in increasing

its stake in agricultural companies

in recent years, most notably

Capespan, where it is now

the holder of 98.1%. Capespan

has a turnover of R7.6-billion

across three divisions: farms, logistics

and fruit. Brands include

Cape and Outspan, Capespan

Logistics (known as FPT for Fresh

Produce Terminals) and Groot

Gariep Koelkamers. Zeder has a

similarly large stake in the holding

company that controls three

seed companies, Zaad Holdings

(turnover R1.2-billion), and it has

further shareholdings in egg and

grain companies. Zeder is a 39.6%

shareholder in Kaap Agri Ltd.

Kaap Agri has more than 200

operating points stretching from

its headquarters in Malmesbury

in the Swartland to Namaqualand

and beyond. What started out as

a farmers’ co-operative is now

a large enterprise with eight

business units covering everything

from grain (Wesgraan), to

packaging (Pakmark) and retail

(Agrimark).

Zeder also owns 27.2% of

Pioneer Foods, which makes and

distributes many big food and

drink brands across Southern

WESTERN CAPE BUSINESS 2017

76


OVERVIEW

Africa, including Weet-Bix, Liqui-

Fruit, Ceres, Sasko and White

Star. The company has an annual

turnover of R20-billion and it has

two Bokomo facilities producing

wheat biscuits, cereal and muesli

in the United Kingdom.

Overberg Agri is an unlisted

company with a wide range of

investments in several sectors,

including mining, pet food and

industrial fasteners. Promeal

manufactures pet-food in Atlantis

and Boltfast distributes nuts, fasteners

and screws all over South

Africa. Grain services, irrigation,

financial services and retail form

more traditional parts of the agricultural

company’s profile, which

had a turnover of R2.8-billion in

2015/16. Headquarters are located

in Caledon and the group has

1 144 permanent employees.

SSK (Sentraal Suid Ko-operasie)

has outlets in the Overberg (headquarters

are in Swellendam) and

in the Southern Cape as far east

as George. There are retail outlets

at Swellendam, Heidelberg

and Robertson, and grain depots

at Swellendam, Heidelberg,

Karringmelksrivier, Protem

and Ashton.

SSK has increased its reach

with the acquisition of Tuinroete

Agri, which has four grain silos

and 19 retail outlets and depots

stretching along the Garden

Route from Riversdale to Jeffrey’s

Bay. It also has a presence in the

Langkloof and at Aberdeen in

the Karoo. SSK either controls

or has an interest in companies

that engage in oil extraction,

property, equipment, animal

feed, abattoirs, investments and

motor sales.

The Klein Karoo group based in Oudtshoorn focusses on ostriches

through Klein Karoo International. Separate units deal in fashion products,

feathers, leather, skins and meat production.

Other companies in the group cover seed sales, auctions and a

retailer, Klein Karoo Agri, which has two petrol stations, six shops, a

mechanisation business and an irrigation business.

ONLINE RESOURCES

Agricultural Research Council: www.arc.agric.za

Bureau for Food and Agricultural Policy: www.bfap.co.za

Cape Agency for Integrated Sustainable Development in Rural

Areas: www.casidra.co.za

Citrus Growers’ Association: www.cga.co.za

Fresh Produce Exporters’ Forum: www.fpef.co.za

Fruit SA: www.fruitsa.co.za

HORTGRO: www.hortgro.co.za

Klein Karoo: www.kleinkaroo.com

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

SA Grain Information Service: www.sagis.org.za

SA Olive Industry Association: www.saolive.co.za

SA Table Grape Industry: www.satgi.co.za

SA Trade Directory of Indigenous Natural Products:

www.cpwild.co.za

South African Rooibos Council: www.sarooibos.org.za

Western Cape Department of Agriculture: www.elsenburg.com

77 WESTERN CAPE BUSINESS 2017


OVERVIEW

Wine and grapes

China is importing the fruits of the Western Cape’s vineyards.

SECTOR INSIGHT

Nearly 50 000 people work

in the province’s table grape

sector.

• A Cape wine farm is selling

exclusively to China.

• KWV has been sold to a

global company.

Chinese consumers love the grapes of the Western Cape,

whether they are presented to them in bunches or in bottles.

Alterations to importation regulations are set to massively

boost table grape sales to China, and wine farmers

are selling ever-increasingly volumes to that country.

Table grapes

South Africa’s table grape producers and exporters had something to

cheer about in 2016. Because China has changed its cold-treatment

protocol, South Africa can now increase its exports to that country to

R2.5-billion within five years.

In 2015, 10 600 tons of table grapes were sold into China but the

figure could not be increased because of the cold-treatment protocol

relating to the South Africa product, which affected quality, market

share and price. The Chinese market for table grapes has been growing

at 30% since 2000 and stands at about $600-million.

The South African Table Grape

Industry Partnership (SATI) is a

partnership whose board membership

represents every growing

region. The industry’s contribution

to the national GDP is estimated

at more than R3-billion.

The table grape industry provided

over 46 000 direct jobs to

the Western Cape during the

2015/16 harvest. The Western

Cape is responsible for 65% of

total production volumes in

table grapes.

There is also a significant contribution

to downstream production

income – R3.2-billion to

other product-input providers,

R720-million to packaging material

suppliers and R250-million to

logistics suppliers.

On farms with black ownership,

income of R183-million was

generated in 2014/15.

Key industry figures for the

annual national harvest:

• More than 85 000 jobs

WESTERN CAPE BUSINESS 2017

78


OVERVIEW

• Wages valued at R950-million

• Additional R600-million job

creation by suppliers in the

value chain

Three of South Africa’s grapegrowing

regions are located in

the Western Cape:

• Olifants River: The river flows

from the Cederburg Mountains

westwards towards the Atlantic

Ocean via Namaqualand.

• Berg River: The Du Toitskloof

Mountains are the main geographical

feature of this region

named for the strong-running

river that irrigates the fields of

grape varieties such as Red

Globe, La Rochelle and Bonheur.

• Hex River: The river runs past

the Matroosberg where snow

falls are a regular occurrence.

Popular varieties are La Rochelle,

Sunred Seedless and Barlinka.

Wine

A bottle-making factory in

Gauteng is doubling its capacity

because Cape wine exports

are rising so quickly. Exports

from the Western Cape reached

R8.6-billion in 2015.

Nampak told Business Day

in 2016 that the main factor in

increased orders from its Cape

wine buyers was the Economic

Partnership with the European

Union, allowing easier access into

the EU for Southern African goods.

Total exports of wine out of the

Cape have grown from 50-million

litres to close to 450-million,

with many of the new sales going

to China.

The Chinese market was valued

at R240-billion in 2015 (IWSR) and a

joint venture between Leopard’s Leap and Yangzhou Perfect (51%) has

bought the wine farm Val de Vie to make wine to export to that country.

The wine is branded L’Huguenot.

There is a move to try to shift South Africa’s focus away from

bulk wine sales, to bottled wines. The website beveragedaily.com

quoted the managing director of Origin Wines stating that for every

10-million litres of additional wine bottled in South Africa in 2016, additional

direct income of R200-million should accrue to the Cape Winelands.

The decision by Britain’s electorate to extract the country from the

EU will lead to some complications, but Western Cape Minister for

Economic Opportunities Alan Winde believes that the new situation

could lead to many new opportunities. The EU may push for the reduction

in some of the figures set for imports (on the basis that a chunk of

the allocation would have been going to Britain), but Britain will surely

want to negotiate a good deal with South Africa as quickly as possible.

There are over 3 500 wine producers in South Africa, with the large

majority located in the Western Cape.

Wine is produced by estates, independent cellars and producer cellars

or co-operatives. The Distell group runs five distilleries and seven

wineries in the Western Cape, produces about a third of the country’s

natural and sparkling wine and is ranked 12th in the world in terms of

global wine volume sales.

The multi-brand KWV was sold in 2016 to consumer investment

group Vasari. The reported sale price was R1.15-billion. Niveus, the

previous owner of KWV, retains the company headquarters building

in Paarl (La Concorde) and the Laborie wine estate.

Wellington Wines is a new venture that arose from the merger of

the Wellington Co-operative and the Wamakersvallei Co-operative.

DGB is a large wine and spirits company that makes much of its own

product at five famous wineries. These include Boschendal, Bellingham

and Douglas Green. Edward Snell & Co is a wine and spirits wholesaler

that also makes its own line of spirits. Fourteen brandy distilleries can

be visited on the Western Cape Brandy Route and a further six on the

R62 Brandy Route on the road east.

ONLINE RESOURCES

Integrated Production of Wine: www.ipw.co.za

National Agricultural Marketing Council: www.namc.co.za

Nietvoorbij Institute for Viticulture and Oenology:

www.arc.agric.za

SA Wine Industry Information & Systems: www.sawis.co.za

South African Brandy Foundation: www.sabrandy.co.za

South African Table Grape Industry: www.satgi.co.za

Western Cape Department of Agriculture: www.elsenburg.com

Wines of South Africa: www.wosa.co.za

79 WESTERN CAPE BUSINESS 2017


INTERVIEW

The magic grape

Beyers Truter, who is associated internationally with the

Pinotage varietal, shares some insights on the local

winemaking industry.

Beyers Truter

BIOGRAPHY

Beyers Truter received a BSc

Agric degree from the University

of Stellenbosch before

starting his winemaking career

at Kanonkop. Today he is the

cellar master and co-owner of

Beyerskloof. He played an enormous

role in the development

of the Pinotage red wine grape

varietal when, in 1991, he was

named international Winemaker

of the Year with a Pinotage wine

at the International Wine and

Spirits Competition. He was

also the founder and chairman

of the Pinotage Association. He

has won numerous local and

international awards.

Please provide an overview of your business operations

and the Beyerskloof Wine Estate.

Beyerskloof was established in 1988 and is known internationally for its

Pinotage wines, the only indigenous South African variety.

We have grown tremendously over the last few years and we are

considered one of the foremost producers of Pinotage and Cape

Blends in South Africa. Although I don’t want to grow too fast, there

is a big demand for South African wines. My son is now in charge of

the vineyards and winemaking and we intend to expand operations.

I regard the fact that my son is actively involved in the business and will

continue to build it as the biggest reward of my life thus far.

Could you explain something about your relationship

with Pinotage?

I have a very long relationship with Pinotage. I would say the relationship

started in 1981; I was farming at Kanonkop and I tasted a 1972

wine from Simonsig. I liked it so much that I phoned winemaker Frans

Malan to ask him about it – it was a Pinotage, which at that stage was

a kind of “black sheep” of wines. Well, I have always been fond of “black

sheep” and the relationship has flourished ever since.

In 1995, I established the Pinotage Association, which focuses on

prioritising research ideas, knowledge dissemination and marketing of

the varietal. It is a magic grape with a wonderful classic taste!

WESTERN CAPE BUSINESS 2017

80


INTERVIEW

Please describe the relationship with

Nedbank, in terms of your business and

the wine industry.

Nedbank does a lot to support the wine industry;

in particular, they sponsor the Cape Winemakers

Guild Auction. In addition to well-known estates,

individuals are also able to market their topclass

wines through the event. They are also involved

in the sponsorship of the Nedbank Vinpro

Information Day held annually. Nedbank is also our

Business Bank.

What is your view of the current state of

the wine industry in South Africa and the

outlook for the next five-to-10 years?

Some South African wines are doing very well.

I could mention Pinotage and Chenin Blanc,

local sales of which have grown by 73% and 60%

respectively over the past five years.

I foresee that it will continue to go well for the

wine industry in the short-to-medium term but

unfortunately the outlook is not as positive for the

grape farmers. The price of grapes has not risen as

much as the price of the value-added product –

wine in the bottle.

What prompted you to start a community

project focusing on alcohol abuse among

women and youth pregnancy, and what

impact has the project had?

Some years ago, I started the FAITH Fund (Foetal

Alcohol-Syndrome and Interrelated Treatment Help

Fund) and we have been working at communicating

the negative effects of drinking during pregnancy

ever since. It is widely known that the Western

Cape has a serious problem when it comes to Foetal

Alcohol Syndrome (FAS).

We have what we call the “Klop-klop” project,

where we literally send people door-to-door to

speak to farm workers, particularly pregnant women,

about the dangers of drinking while pregnant. We

follow up by visiting pregnant women each month

until they deliver and we provide food and necessities

to assist them. We also visit schools and clinics as

far afield as Beaufort West and Graaff-Reinet.

I do this because I believe that every child needs

a future and FAS robs children of a future they can

look forward to.

How is the drought likely to impact the

wine industry?

Typically during periods of dry weather you have a

smaller crop but sometimes a superior crop, so the

effects “cancel each other out”. Longer term, however,

continuing drought would significantly affect

volumes, which would affect wine sales.

81 WESTERN CAPE BUSINESS 2017


PROFILE

South African Table

Grape Industry

South Africa: preffered country of origin for the

world’s best-tasting grapes.

SATI represents

growers in key

government and

industry initiatives

aimed at creating

more opportunities,

from ownership to

accessing new markets

in a sustainable

way.

SATI assists growers

with crucial industry

information,

Willem Bestbier, CEO

transformation, statistics, research, technology and

technical transfer as well as training and education

with the aim of establishing South Africa as the

Preferred Country of Origin for the world’s besttasting

grapes.

South African table grape growers and exporters

are committed to being a reliable supplier of table

grapes by delivering a safe, flavour-filled product of

the highest quality.

grape producer as wide a choice as possible with

profitable markets.

Mission

SATI delivers service excellence to create a progressive,

equitable and sustainable South African table

grape industry.

SATI’S key areas of intervention

• Technical market access

• Research and technology transfer

• Information and knowledge management

• Transformation

• Communication and stakeholder engagement

• Human capacity and skills development

• Technical support

continued on page 82

They have dedicated themselves to ensuring

that our special taste, quality and choice product

meet the highest level of compliance with world

market standards.

Vision

South Africa is the Preferred Country of Origin

for table grapes and will provide every table

WESTERN CAPE BUSINESS 2017

82


PROFILE

These interventions are aimed at assisting producers

to Gain, Retain and Optimise (GRO) market access.

SATI is funded by a grower levy, and is a co-founder

and a key supporter of the Sustainability Initiative of

South Africa (SIZA).

A world of variety

There are five major growing regions in South Africa.

The difference in soil and climate enables growers

to supply the markets from November to May. The

early season is dominated by varieties from the

Northern Provinces and the valleys of the Orange

and Olifants Rivers , followed by table grape varieties

from the Berg River and Hex River regions.

The South African table grape industry is ideally positioned

to work with the government on all levels

to make a significant contribution to the primary

goals of the National Development Plan, namely

job creation, rural development and the earning

of foreign revenue.

CONTACT INFO

Contacts:

Willem Bestbier, Chief Executive Officer

Email: willem@satgi.co.za

Joseph Lombardt

Manager: Information and Knowledge

Management

Email: joseph@satgi.co.za

Physical Address: 63 Main Street, Paarl 7624

Tel: +27 21 863 0366

Fax: +27 21 863 3039

Email: info@satgi.co.za

Website: www.satgi.co.za

WESTERN CAPE BUSINESS 2017

84


Fishing

More fish, fewer chips.

OVERVIEW

The Oceana Group has made some purchases that will boost its

fishing and fish processing volumes. It has also sold off its potatoprocessing

business, Lamberts’ Bay Foods. With the purchase

of Foodcorp’s fishing rights and an American fishmeal and oil

company, Daybrook, Oceana now has operations in the USA, South

Africa and Angola and achieved revenues in 2015/16 of R8.2-billion.

The biggest brand performer for Oceana is Lucky Star canned

pilchards, which enjoys 80% of market share in South Africa.

Demersal fish such as hake and kingklip account for 46% of the

national catch, with pelagic fish (anchovy, pilchards and sardines)

making up 23%. Lobster makes up 11% and linefish 13%. The Western

Cape is responsible for about 75% of the nation’s fishing.

The value of the national catch across 22 commercial fishing

sectors is about R6-billion. Sectors range from the highly capitalised

deep-sea trawling industry to much smaller-scale lobster and

abalone operations.

Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana

has stated his intention to restructure the horse mackerel industry to

promote local fishers and processors. A 15-year contract awarded in

2015 on this basis was overturned by the courts after objections by

bodies such as FishSA, which represents eleven fishing associations.

Most of South Africa’s major food companies have fishing divisions.

Pioneer Fishing has no connection to the multi-product group Pioneer

Foods, and is owned by Suiderland Corporation and African Pioneer

Limited. Pioneer Fishing controls a canning, fishmeal and fish oil factory

in St Helena Bay called Oranjevis, a joint venture with Terrasan Pelagic

Fishery, and a processing and freezing factory in the Port Elizabeth

harbour (Eyethu Fishing).

ONLINE RESOURCES

FishSA: www.fishsa.org

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

SA Deep Sea Trawling Industry Association: www.sadstia.co.za

Southern African Sustainable Seafood Initiative:

www.wwfsassi.co.za

SECTOR INSIGHT

Government intends restructuring

the horse mackerel industry

to boost local fishers.

Premier Fishing, a subsidiary

of Sekunjalo Investments, runs

16 vessels and operates at seven

locations, including Atlantic Cold

Storage, which has capacity to

store 2 500 tons of fish and 405

tons of live lobster. The company

has lobster plants at Port Nolloth

and Hout Bay, and a fish meal

plant at Saldanha.

Viking Fishing is active in fishing,

processing and fish farms. It

has 1 250 employees across its

varied operations, which include

trawling for hake; sardines and

anchovies; the west coast rock

lobster and prawns (in South

Africa and Mozambique).

Sea Harvest is vertically integrated

and owns all its fishing

vessels, processing facilities

and cold storage facilities. Sea

Harvest runs several shore-based

factory plants, sells to more

than 2 000 stores and has 46%

of South Africa’s retail frozen

fish market.

Dromedaris Visserye specialises

in Cape lobster, and supplies

sardines and anchovies to China

and Japan.

85 WESTERN CAPE BUSINESS 2017


SPECIAL FEATURE

87 WESTERN CAPE BUSINESS 2017


OVERVIEW

Mining

The sands of the West Coast are giving up their riches.

A

new mineral sands project on the West Coast near Lutzville

and Koekenaap has started sending product to China.

Australian miner Mineral Commodities (MRC) says it will

spend R5-billion at its Tormin mine to 2019 in search of zircon,

rutile, ilmenite and garnet.

Namakwa Sands is an existing mineral sands operation on the

West Coast, owned by Tronox. Tronox is listed on the New York Stock

Exchange and South African company Exxaro Resources is a 43.87%

shareholder. The company has a mine and concentration plant at

Brand-se-Baai and a mineral separation plant at Koekenaap near

Lutzville about 350km from Cape Town. Ilemnite, rutile and zircon

are extracted at this site and then taken to the company’s smelter at

Saldanha Bay. Zircon is used in tile glazing and ilmenite is melted to

become pig iron for use in engine blocks. The left-over slag is used as

pigmentation in paints.

The Cape Bentonite Mine (with five quarries) near Heidelberg is run

by Ecca Holdings with another site east of Knysna at Roodefontein.

Dimension stone occurs around Vanrhynsdorp (which also has some

gypsum) and medium-grain granite is found at Paarl.

Sixteen rare earth minerals have been identified north of

Vanrhynsdorp, with the most prevalent being cerium, an important

component of catalytic converters. South Africa is a world leader in

converters. Other minerals found at the site are used in magnets,

batteries and electric-powered cars.

More than one investor has come and gone, but the acquisition

in 2015 by Steenkampskraal Thorium Limited (STL) of the shares of

ONLINE RESOURCES

African Mining Indaba: www.miningindaba.com

Chamber of Mines of South Africa:

www.chamberofmines.org.za

Council for Geoscience: www.geoscience.org.za

Geological Society of South Africa: www.gssa.org.za

National Department of Mineral Resources: www.dmr.gov.za

Southern African Institute of Mining and Metallurgy:

www.saimm.co.za

SECTOR INSIGHT

Sixteen rare earth minerals

have been identified north of

Vanrhynsdorp.

Rareco has given it the right to

the rare earth deposits at the

Steenkampskraal monazite

mine. STL already had the thorium

rights. STL has an associate

company in Norway, Thor Energy.

The plan is to mine, process and

refine thorium for nuclear fuel applications

in Norway. STL reports

that Steenkampskraal has one of

the world’s highest-grade rare

earth and thorium deposits with

an average grade of 14.4% rare

earths and 2.14% thorium.

Limestone for cement, agricultural

lime and feed lime is

extracted at several sites in the

province’s western regions while

kaolin is found in Noordhoek and

Somerset West. Ball clay is mined

in the Albertina district by G&W

Base and Industrial Minerals, a

subsidiary of the Zimco Group.

Pretoria Portland Cement

(PPC) has operations near

Riebeek-West and Piketberg (De

Hoek). Slasto and building stone

is quarried near Clanwilliam.

Consol quarries glass sand

near Philippi.

WESTERN CAPE BUSINESS 2017

88


OVERVIEW

Oil and gas

The Western Cape Government is hoping to exploit opportunities related to the gas sector.

SECTOR INSIGHT

A new LPG terminal will be

commissioned at Saldanha

in 2017.

• Chevron wants to sell its

refinery.

• A new fuel storage terminal

is being built in Cape

Town harbour.

Thirty-two companies are set invest in the Saldanha Bay Industrial

Development Zone (SBIDZ). These companies are in the oil and

gas, and servicing and logistics sectors. The idea of providing

infrastructure and incentives at the SBIDZ in these sectors is

reaping rewards.

Large industrial operations already exist at Saldanha and the Port

of Saldanha Bay is used for the export of South Africa’s iron ore. Large

quantities of oil are transported around the Cape of Good Hope every

year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the

Middle East. Reduced global prices for oil and troubles in the container

ship market have caused some stress in the local sector – DCD

Marine went into voluntary business rescue in November 2016 – but

the long-term prospects for shipping and oil and gas are still strong

enough for national government to pursue Operation Phakisa (which

includes a strong maritime economy push) and for Transnet National

Ports Authority to spend heavily on upgrading the nation’s ports.

Considerable planning has gone into positioning the SBIDZ as a

hub for a range of maritime repair activities and oil rig maintenance

and repair. (A separate article on the SBIDZ appears elsewhere in

this publication.) But Saldanha has not been chosen by the national

Department of Energy (DoE) to host a gas-to-power plant: Richards

Bay and Coega (Port Elizabeth) have instead been listed as the sites

for 2 000MW and 1 000MW potential, if private investors for projects

at those ports can be found. The

Provincial Government of the

Western Cape has asked the DoE

to reconsider and wants Saldanha

to be allocated at least 1 000MW

potential for private companies

to consider bidding to run such

a power plant.

If gas was used to generate

power, the next step would be

for factories to consider using gas

and then the whole energy mix

could be changed. The Western

Cape Ministry of Economic

Opportunities sees the potential

of gas in the context of working

together with wind and solar energy.

Gas, a CSIR report has concluded,

could be a very good support

for renewable energy during

times of peak demand.

Another possible gamechanger

is shale gas. The Council

for Geoscience (CGS) is doing an

intensive study of South Africa’s

WESTERN CAPE BUSINESS 2017

90


OVERVIEW

potential shale gas resources. The

study centres on the area around

Beaufort West in the Karoo. The

study wants to look at the reserves,

the technology associated

with getting the gas out of the

ground and the value chain.

Natural gas lies offshore to

the west of South Africa in the

Atlantic Ocean (Ibhubesi) and off

the southern coast in the Indian

Ocean (Bredasdorp Basin). Both

fields have great potential: Block

2A of the Ibhubesi gas field northwest

of Saldanha is estimated to

have reserves of 850-billion cubic

feet of gas and the Bredasdorp

Basin is said to have reserves of

one-trillion cubic feet, but getting

to the gas has proved tricky.

The Bredasdorp Basin is close

to Mossel Bay where a gas-toliquids

plant is located. Project

Ikhwezi, run by South Africa’s oil

company PetroSA, produced 25-

billion cubic feet (bcf) from that

field instead of a projected 242bcf

(Engineering News). PetroSA recorded

a net operating loss of

R14.6-billion for the 2014/15

financial year.

Sunbird Energy (a joint venture

between Sunbird Energy 76%

and PetroSA 24%) was reported

in March 2016 to be proceeding

with plans to produce gas from

the Ibhubesi field, but lower

global gas prices and negotiations

with national utility Eskom

(which has to agree to buy the

gas) were factors that had to be

considered (Financial Mail).

Further afield, major gas finds

have been made off the coast

of East Africa and plans to pipe

greater volumes of Mozambican

gas to Gauteng are far advanced.

Industrial gas manufacturing in the Western Cape is a particular

focus for Air Products, a part of the Metkor Group controlled by Remgro.

The company is the largest supplier in the pipeline and on-site markets,

and it also supplies to the packaged chemicals, bulk and chemicals

markets. The company has a national footprint, with a very strong presence

in the oil, gas and chemical hub of the country around Sasolburg

and Vereeniging. Air Products has a network of private distributors who

get support from the company in terms of sales, service and technical

advice. Safety training is also offered.

Facilities

The gas-to-liquids plant that PetroSA runs at Mossel Bay on the south

coast is one of the country’s key pieces of energy infrastructure. Getting

new feedstock for this plant is now an urgent priorty (and something

which Project Ikhwezi was supposed to do).

The Chevref oil refinery in the Cape Town suburb of Milnerton is one

of six in South Africa. It produces about 110 000 barrels a day of South

Africa’s total production of 703 000 barrels a day. Chevron gave notice

in early 2016 of its intention to leave South Africa. A price of R15-billion

has been suggested for Chevron’s assets, which include a lubricants

business and 850 Caltex petrol stations (Sunday Times).

A new facility is to be added to the oil and gas sector in Cape Town

– a 118 000m³ fuel storage unit. The Bergan terminal will comprise 12

tanks located on the Eastern Mole of the Port of Cape Town and it will

be connected by pipeline to the Chevref refinery.

A new import terminal dedicated to Liquefied Petroleum Gas (LPG)

is being constructed at Saldanha Bay by Sunrise Energy. The terminal

will be an open-access facility, so any gas importer, distributor or

downstream user can use it for the importation of LPG, commercial

propane or commercial butane. It is due to be commissioned in the

second quarter of 2017.

ONLINE RESOURCES

Liquefied Petroleum Gas Association of Southern Africa:

www.lpgas.co.za

National Department of Energy: www.energy.gov.za

National Energy Regulator of South Africa: www.nersa.org.za

Petroleum Agency of South Africa:

www.petroleumagencysa.com

PetroSA: www.petrosa.co.za

Saldanha Bay IDZ: www.sbidz.co.za

South African Oil and Gas Alliance: www.saoga.org.za

WESTERN CAPE BUSINESS 2017

92


Air Products

South Africa

PROFILE

This leading industrial gases and related products company has

introduced innovations throughout its history.

Air Products South Africa manufactures, supplies

and distributes a wide variety of atmospheric gases,

speciality gases, performance materials, equipment

and services to the southern African region.

Founded in 1969, the company has grown rapidly

and has used its world-class production and regional

distribution facilities to become the largest

supplier in the on-site and pipeline markets. It is also

a leader in the bulk, packaged gas and chemicals

supply markets.

Liquid and gaseous product is distributed to customers

throughout South Africa using the company’s

modern fleet of cryogenic tankers and cylinder

trucks. This ensures reliable supplies of gases such

as oxygen, nitrogen, argon, hydrogen and carbon

dioxide to major corporations in the steel, stainless

steel, chemical, petrochemical and engineering

industries.

In fact, Air Products touches the lives of consumers

in positive ways every day, and serves customers

in a range of industries from food and beverage,

mining and petrochemicals, primary metal and steel

manufacturers, chemical applications, welding and

cutting applications to laboratory applications.

Business units

Air Products has four business units to serve its

broad client base.

On-site generation

These systems include small membrane cabinets,

packaged plants, large air separation and hydrogen/

carbon monoxide/syngas plants and industrial gas

pipelines. The systems are classified as either generated

gases or tonnage gases.

Bulk gas

This division facilitates the supply of bulk liquid product

to a wide range of customers. Products including

liquid oxygen, liquid nitrogen, liquid carbon dioxide,

liquid argon and gaseous hydrogen are transported

from the company’s four main air separation units

via its fleet of road tankers.

Specialty gases

There are over 100 different gaseous and liquid

chemicals and thousands of different gas mixtures.

These products can be supplied in any quantity,

from a few grams or litres to a 4 000m³ trailer load.

Chemicals

The Air Products chemical offerings are backed up

by its applications support personnel, who rigorously

match product properties to meet specific

end-use applications.

CONTACT INFO

Tel: +27 11 570 5000

Email: info@airproducts.co.za

Website: www.airproducts.co.za

93 WESTERN CAPE BUSINESS 2017


OVERVIEW

Energy

Manufacturing in the renewable energy sector is taking off in Atlantis.

The energy landscape of the Western Cape is undergoing rapid

change. Mostly this is because the potential of renewable energy

is being realised, but if a gas-to-energy plant becomes a reality in

the province, then another big shift could take place.

The Western Cape already hosts the country’s only nuclear power

station (Koeberg, north of Cape Town) and it has a pumped water

storage plant and three open-cycle gas turbines.

The West Coast was the site of two of the country’s first experimental

wind farms. Successful trials there and elsewhere (and

critical power shortages in the national grid) led to the adoption

by national government of a scheme to invite private producers

to bid for the right to build plants that would produce wind, solar

or hydropower. This is the Renewable Energy Independent Power

Producer Procurement Programme (REIPPPP) and the first bids closed

in December 2011.

By the time the fourth bid closed in 2015, the Western Cape had

been allocated 11 projects, six wind and five photo-voltaic solar power.

The total capacity of these projects totalled 592MW. Among the foreign

companies to engage in renewable energy projects in the province

are Gamesa and Acciona, Gestamp Renewables, Vestas, Sunpower

and JinkoSolar.

The Provincial Government of the Western Cape is prioritising

energy in its plans, and this includes generation (gas, biogas and

renewables), distribution and energy-saving.

SECTOR INSIGHT

Progress reports on energy

plans are presented to the

Premier every six weeks.

• There are 2 000 private

energy providers in Cape

Town.

A wide range of experts drew

up the provincial energy plan,

the key points of the energy plan

include: efficiency in the system;

get the uptake of renewable energy

to move faster; and move to

gas. With every project within that

plan, a detailed timetable has been

worked out and reports are sent to

the Premier’s office every six weeks.

Western Cape Minister

of Economic Opportunities

Alan Winde notes that the

Department of Agriculture, simply

by carefully recording its usage

WESTERN CAPE BUSINESS 2017

94


OVERVIEW

patterns, has cut its electricity bill by

R1.7-million.

On top of this, the Western

Cape has its own private producers’

programme. “As I speak, there

are more than 2 000 private producers

in Cape Town,” says Winde.

These range from a solar panel on

the roof of a single private household

to major installations in the

Waterfront. Excess power is sold

to the city.

Winde is lobbying hard for the

national Department of Energy

to allow Saldanha Bay to be a site

for a gas-to-power plant. “There

should be at least 1 000MW at

Saldanha. If the private sector

and investors think it is a bad

idea, then that’s fine.” He clearly

believes that investors will think it

a very good idea to invest in a site

that already has bulk power consumers

like ArcelorMittal Steel. If a

gas plant is built at Saldanha, then

it could be a catalyst for the use

of gas in many other sectors such

as manufacturing and residential.

“Then gas plays a different

role in the economy,” says Winde.

“That is enabling a whole process

and it complements the work we

are doing. If you have solar and

wind power, then you need the

base, something to cover the

peak hours: gas can do that.”

About 100km south of

Saldanha, on the West Coast road

to Cape Town, is Atlantis, where

a green economy manufacturing

hub is under construction.

A number of companies have

already invested in making wind

turbines, ladders and platforms

for turbines and solar panels

among other things. With about

R680-million already invested,

and another R1-billion projected, the renewable energy economy is

making an impact.

There are many manufacturing opportunities. A pilot plant to investigate

one of the more sophisticated aspects of solar technology is

operating at the Techno Park in Stellenbosch. Photovoltaic Technology

Intellectual Property (PTiP) and German engineering company Singulus

Technologies have started making thin-film solar modules.

Funding for the project’s infrastructure came from the Technology

Innovation Agency, a unit of the Industrial Development Corporation

(IDC), and Stellenbosch University.

The Cape Peninsula University of Technology’s Energy Institute is a

leader in research in the field of electricity, and is also responsible for

a regional publication relating to domestic use, DUE.

A unit based on the Bellville campus of CPUT teaches courses

related to renewable energy. The South African Renewable Energy

Technology Centre (SARETEC) offers courses such as Wind Turbine

Service Technician and Solar Photovoltaic Service Technician and

various short courses such as Bolting Joint Technology. By the end

of 2016, more than 1 500 people had attended courses at SARETEC.

In November 2016, SARETEC became the home of the Solar

Academy, with the support of German solar energy company,

maxx|solar energy.

The Centre for Renewable and Sustainable Energy Studies is at the

University of Stellenbosch, while the University of Cape Town has the

Energy Research Centre. The University of the Western Cape is doing

research on the possibilities of hydrogen as an energy source.

A programme run by Green Cape claims to have engineered 21 000

tons in fossil greenhouse gas savings over five years through its Western

Cape Industrial Symbiosis Programme (WISP). This is the equivalent

to annual electricity usage in 5 600 South African households. WISP

is a network of 300 businesses to share unused resources and create

value from “waste”.

ONLINE RESOURCES

African Wind Energy Association: www.afriwea.org

Eskom: www.eskom.co.za

Green Cape: www.greencape.co.za

National Department of Energy: www.energy.gov.za

National Nuclear Regulator: www.nnr.co.za

South African Photovoltaic Industry Association:

www.sapvia.co.za

South African Wind Energy Association: www.sawea.org.za

Southern African Solar Thermal and Electricity Association (CSP):

www.sastela.org

Sustainable Energy Africa: www.sustainable.org.za

95 WESTERN CAPE BUSINESS 2017


OVERVIEW

Water

Farms and factories are becoming water wise.

SECTOR INSIGHT

WWF-South Africa and

Woolworths are working on

rural water plans.

• UCT researchers have

won a Water Research

Commission prize.

• French company Veolia

is installing desalination

plants.

In 2030 South African demand for water will be 17% greater than

supply. That is the verdict of the 2030 Water Resources Group.

The Western Cape’s dams were at 61% in the fourth quarter of

2016, against 90% at the same time in 2015. The biggest provincial

dam, which is Cape Town’s main source of water as well as providing

irrigation for farms, Theewaterskloof, stood at 52%, 14% down on the

previous year. Elsewhere:

• Garden Route Dam (George) was at 72% versus 100% in 2015

• Kammanasie Dam (Oudtshoorn) was at 29% versus 100% in 2015

• Hartebeestkuil Dam (Mossel Bay) was at 52% versus 88% in 2015

In November 2016, the City of Cape Town introduced level-three

water restrictions, banning all irrigation systems and hosepipes for

domestic lawns.

The good news is that South Africa and the Western Cape are doing

something about the situation. Times of crisis can also be times when

innovation and entrepreneurship come to the fore.

The Water Resources Group, an international consortium of private

companies, agencies and development banks, has established a South

African chapter, the Strategic Water Partners Network (SWPN). It has a

focus on three things: water efficiency and leakage reduction; effluent

and wastewater management; and the agricultural supply chain.

SWPN aims to support government and programmes have been put

in place in all three areas that are showing results.

The Western Cape Provincial Government has a two-pronged

strategy: new water infrastructure for agriculture and water demand

management programmes to

improve efficiency.

In terms of its water infrastructure

and maintenance of its

wastewater treatments plants,

the Western Cape fares relatively

well compared to most other

South African regions. Only 3%

of households reported to the

General Household Survey of

2014 that their water services had

been interrupted. Fully 87.7% were

satisfied with water delivery services.

Access to water and sanitation

in the province is generally

very good.

A provincial scheme to improve

rivers has been outlined

by Premier Helen Zille. The River

Improvement Plan ultimately

seeks to improve the lives of

people living alongside rivers,

but also ensure that river

water quality enhances the region’s

economy. The fruit, grape

and wine sectors need good

WESTERN CAPE BUSINESS 2017

96


OVERVIEW

quality water, as do agri-processing

concerns. Programmes

include upgrading wastewater

treatment plants, clearing

alien vegetation and

regular monitoring of water

quality. The scheme encompasses

the Olifants-Doorn and

Breede rivers.

The Western Cape

Department of Agriculture has

launched a climate action plan

called Smart Agri, which includes

doing studies on conservation

agriculture. The plan draws on

the expertise of academics and

companies in the private sector.

One of the possible plans

to add to the supply of the

Western Cape Water Supply

System is the Berg River–Voëlvlei

Augmentation Scheme. This

would entail pumping water

out of the Berg River in winter,

having first allowed for enough

water to cover the ecological water

requirements of the river and

the estuary.

The last time a severe drought

affected the province, many of

the towns along the Garden

Route installed desalination and

recycling plants. More than one

of these facilities had to close

because not enough care had

been taken in choosing the site,

so environmental issues and silting

stymied the plans.

However, Mossel Bay has a

functioning plant and Lamberts

Bay on the West Coast will soon

have a 1 700m³ per day plant. This

will be the sixth such plant installed

by French company Veolia

Water Solutions & Technologies.

Other sites include Saldanha,

Knysna and Plettenberg Bay.

A water stewardship programme has been introduced in the Breede

River catchment area. WWF-South Africa, Woolworths and Marks and

Spencer are collaborating on a scheme encouraging stone fruit farmers

to put in place systems that reduce risk to water supply and quality.

WWF-SA also has a Water Balance Programme that works to increase

the amount of clean water coming into the environment. Woolworths’

contribution to this plan involves getting rid of alien vegetation on the

farm where it sources its wines (Paul Cluver Wines) and in the Leeu

River catchment area.

Improving quality

The introduction by the National Department of Water and Sanitation

(DWS) and the Water Institute of South Africa (WISA) of the Blue and

Green Drop Awards has been very successful. The nation’s municipalities

receive scores reflecting how well they are doing in terms of

providing clean water.

In order to win a Drop Award (Blue for water quality, Green for waste

treatment), water systems have to score 95% or higher. The DWS has allocated

R4.3-billion to helping municipalities deliver water. The Interim

Water Supply Programme will concentrate on 23 district municipalities.

The awards are run by WISA with the help of consulting engineering

group Aecom SA. Aecom assists municipalities in preparing for the

audit and has a wide range of capabilities within the water-treatment

sector, including bulk and reticulation water and sewage pipelines.

The City of Cape Town won a C40 Cities Award in 2015 for its programme

to conserve and manage demand for water.

The Water Institute of South Africa has 1 800 members. It does

research, keeps its members up-to-date and runs conferences. As in

most areas of life in South Africa, environmental standards are set and

maintained by the South African Bureau of Standards (SABS).

The University of Cape Town’s Engineering and Built Environment

Faculty has won a Water Research Commission prize for its work on

the treatment of acid mine drainage.

ONLINE RESOURCES

Breede-Overberg Catchment Management Agency:

www.breedegouritzcma.co.za

National Department of Water and Sanitation: www.dws.gov.za

South African Water Research Commission: www.wrc.org.za

Trans-Caledon Tunnel Authority: www.tcta.co.za

Water Institute of Southern Africa: www.wisa.org.za

Water Resources Group: www.2030wrg.org

97 WESTERN CAPE BUSINESS 2017


BGCMA

Situated in the southwestern corner of South Africa,

the Breede-Gouritz Catchment Management

Agency (BGCMA) plays a pivotal role in protecting,

developing, conserving, managing and controlling

water resources. Formerly known as the Breede-

Overberg Catchment Management Agency, the Gouritz

region was recently incorporated within the mandate.

The merger came after the former Minister of Water

Affairs, Edna Molelwa, approved the expansion of the

boundary and area of operation of Breede-Overberg

CMA in terms of Section 78(4) of the National Water

Act, 1998 (Act No 36 of 1998). The area of operation

of the Breede-Gouritz Catchment Management

Agency includes the previous Breede-Overberg Water

Management Area and the Gouritz Catchment.

“The strategic focus of the agency incorporates

water resource planning, water use management, institutional

development, water resource protection

and water allocation reform,” says CEO Phakamani

Buthelezi. “The vision of the BGCMA, ‘quality water

for all, forever’, was developed around the question

of how the BGCMA can make a positive contribution

and engender meaningful change within a broader

social context.”

The main elements of the vision are inclusion and

participation of all stakeholders, mediation between

competing environmental and human priorities,

ensuring availability of good quality water and a

responsibility to assist in eradicating poverty.

Buthelezi explains that the BGCMA works closely

with local governments on water management and

water-related services to ensure synergy between the

priorities of the Catchment Management Agency and

the local and district municipalities.

“The BGCMA is the operating arm of the

DWS and its aim is to bring water resource services

in an efficient manner to the inhabitants of

the Breede-Gouritz Water Management Area,”

explains Buthelezi.

“Furthermore, the BGCMA works closely with

other government departments to ensure compliance

in all water use practices. The BGCMA provides

comments on rezoning and consolidations to

relevant municipalities, and on environmental impact

studies and basic assessment reports in conjunction

with the Department of Environmental

Affairs.”

The BGCMA is currently busy with the validation

and verification process where all water users will be

evaluated for legal compliance. This process will assist

with the management of water allocations in the

Breede-Gouritz Water Management Area (WMA).

WESTERN CAPE BUSINESS 2017

98


Our Vision is

“Quality water for all, forever”

Our Mission is to manage our water resources

responsibly through stakeholder engagement

and to devolve decision making to the lowest

level for the benefi t of all water users in the

Breede-Gouritz area.

Breede-Gouritz CMA is responsible for:

• Water Resource Planning

• Water Allocation Reform

• Water Use Management

• Institutional Management

• Resource Protection

For more information, contact us on:

Breede-Gouritz CMA (BGCMA)

51 Baring Street

Worcester, 6850

101 York Street (New Offi ce)

George, 6529

Breede-Gouritz CMA

Private Bag X 3055

Worcester, 6849

Ms Malehlohonolo Mlabateki -

Public Relations and Marketing Offi cer

Tel: (023) 346 8000

Fax: (023) 347 2012

E-mail: mmlabateki@breedegouritzcma.co.za

www.breedegouritzcma.co.za


OVERVIEW

Manufacturing

Diesel locomotive engines are powering up in Montague Gardens.

A

diverse manufacturing sector contributes 15% to the

Western Cape’s GDP and the renewable energy sector holds

huge potential for further growth.

Growth in the manufacturing sector between 2003 and

2013 averaged 2.2% and the Provincial Economic Review and Outlook

(Western Cape Treasury 2015) predicts the same level of growth

to 2020.

A recent Moody’s report on the green economy in Africa states

that South Africa is growing the fastest in that sector in Africa, and

at one of the fastest rates in the world. The Western Cape is driving a

green economy manufacturing strategy focussed on the suburb of

Atlantis. At this stage, some 70% of South Africa’s manufacturing in

renewables is happening in the Western Cape.

Even an established investor such as fridge manufacturer Hisense

is exploring ways to make its product greener, either through its own

processes or encouraging its suppliers to go down that route.

SECTOR INSIGHT

Seda has launched an

enterprise incubator at False

Bay TVET College.

Cape Town’s catamaran

builders are world leaders.

Investment agency Wesgro

has noted the following major investments

into the Western Cape

since 2003: Hisense, Kimberly-

Clark, Tellumat, Exar Corporation,

GlaxoSmithKline and General

Electric.

WESTERN CAPE BUSINESS 2017

100


OVERVIEW

Within the Western Cape

manufacturing sector, the

agri-processing subsector (including

food and beverages

and tobacco) is the largest employer

(24%) followed by metals,

metal products, machinery and

equipment at 19%.

The Western Cape Provincial

Government has identified agriprocessing

as a key growth sector,

one of those most likely to

deliver economic growth and

jobs. For too many years, jobless

growth was the norm.

An initiative of the Small

Enterprise Development Agency

(Seda) aims to boost manufacturing

in metal fabrication and

furniture. False Bay TVET College

will host a Rapid Incubator and

Centre for Entrepreneurship

(CFE) which will teach students

how to start businesses

and how to make their

products marketable.

Areas

Manufacturing in the Cape

Winelands District makes the

single biggest GDP contribution

(19%) to provincial GDP. Many small

towns in the rural areas have some

kind of agri-processing facility.

Bonnievale has two cheese

factories, Mooivallei Suiwel and

Parmalat, which have recently

decided to increase the size of

their operation in the Breede

River Valley.

Iron production at Saldanha

includes hot-rolled coil produced

by ArcelorMittal (about

two thirds of which is exported

to other countries in Africa) and

cold-rolled and galvanised steel by DSP, a joint venture between

South Africa’s Industrial Development Corporation (IDC) and a Belgian

company, Duferco.

Within the City of Cape Town there are several areas where

manufacturing takes place, including Epping Industria, Blackheath

Industria, Bellville South, Paarden Island, Maitland and Ndabeni,

Airport Industria, Parow Industria and Montague Gardens.

A City of Cape Town survey has found that Montague Gardens

has 308 manufacturing concerns, more than any other area. It is

also well suited to logistics and distribution, being near to the N1

highway and to the road north along the West Coast.

MTU Friedrichshafen has spent R50-million on upgrading its

engine business at Montague Gardens. MTU is the core business

of Rolls-Royce Power Systems, a division of Rolls-Royce plc. The

overhaul was done as preparation to make 232 diesel engines for

Transnet Freight Rail. Additional training for staff has been provided

on site and in Germany, and an extra 20 staff have been added to

deal with the order.

MTU’s other facility in the Cape is a maintenance and support

centre at the South African Navy base at Simon’s Town. MTU also

has a strong presence in the mining sector.

According to the City, the industries in which Cape Town has

a competitive advantage include fishing, clothing and textiles,

electronics, furniture and wood product manufacturing – in addition

to the more service-driven hospitality, finance and business

services industries.

Food and beverages

The combination of excellent and plentiful agricultural produce, good

manufacturing capacity and a skilled workforce give the Western

101 WESTERN CAPE BUSINESS 2017


OVERVIEW

Cape a competitive advantage in the food and beverages sector.

A sophisticated transport infrastructure system allows it to service

international markets.

Famous Brands has bought a Western Cape brand in its drive for

greater backward integration. Lamberts Bay Foods supplied Famous

Brands restaurants with chips for two decades. With its purchase

from Oceana, Famous Brands now has greater control over one of

the vital items on the menu of its 26 restaurant brands, including

Wimpy, Steers, Fishaways and Mugg & Bean. Lamberts Bay Foods

sources potatoes from all over South Africa, but its proximity to the

potato-growing Sandveld region is helpful. A meat-processing plant

in Cape Town supplies the group with meat patties, ground beef,

chicken cubes and fillets. The Famous Brands logistics centre in the

Western Cape services 308 restaurants six days a week.

British American Tobacco, which has about 65% of the legal

domestic market, has its administrative headquarters at the V&A

Waterfront in Cape Town.

The wheat-growing areas of the Swartland host several mills such

as Sasko’s facility in Malmesbury. Bokomo has several manufacturing

facilities: Atlantis (Weetbix cereals); Epping (oats and baking facilitiy);

Ndabeni near Pinelands (Moir’s Jelly and custard and instant puddings);

Worcester (dried fruit and cake mix); Bonnievale (Werda salads);

Malmesbury (Sugarbird glace fruit and jams). Safari Vinegar is based

in the Strand and there are two

Heinz manufacturing plants at

Wellington and Atlantis.

Two of the biggest chickenprocessing

facilities are located

on the N7 highway to

Malmesbury (Tydstroom) and

on the N1 to Worcester (Rainbow

Chickens). The Western Cape has

about 16 000 commercial pork

sows and produces a quarter of

South Africa’s milk.

Willards has a factory in

Goodwood, in nearby Parow

there is a Simba factory and local

chip and snack manufacturer

Messaris, which has been in operation

since 1898, has a facility in

Elsies River. Nestlé produces condensed

milk and milk powder in

Mossel Bay and canned pet food

in Cape Town. Tiger Brands makes

mayonnaise in Bellville and have

WESTERN CAPE BUSINESS 2017

102


OVERVIEW

also invested heavily in its prepared

meals plant in Cape Town.

SABMiller’s Newlands brewery

is one of the busiest in the country

as it is responsible for providing

product for a very large

geographical area.

Coca-Cola bottler and distributor

Peninsula Beverage has

three plants, at Parow, Athlone

and Vredendal on the West Coast,

and employs 1 300 people.

Bashew’s cooldrinks has been

a Cape Town favourite since 1899

and the company’s returnable

bottle celebrated a 40th anniversary

in 2010. Quality Beverages

is a much more recent entrant

to the market but its two main

products, Jive and Aqua Blue, are

doing well.

The Ceres Beverage Company

(TCBC) has three major divisions

producing fruit juices, concentrate

and carbonated soft drinks. Twizza

has a factory in Bellville South.

Boat building

The Western Cape boat-building

sector is concentrated in greater

Cape Town. Several companies

are internationally competitive

in the catamaran and yacht markets

and there is a good spread of

firms making large custom boats,

inflatable boats and commercial

craft. Associated sectors include

sail-making, engines, repairs

and masts.

Key export markets include the

USA, Europe and the Caribbean

with increased interest being

shown from Asia and Australia.

Nautic Africa makes larger vessels,

including patrol, defense, oil

and gas platform, and commercial vessels. It is also active in service

and support, parts and spares and vessel leasing and management.

Robertson & Caine’s manufacturing facility in Woodstock produces

three boats a week for the international market. With a staff

complement of 1 350, a record of having launched more than

1 300 vessels and a subsidiary company in Tampa, Florida, the company

is a world leader in power catamarans and sailing catamrans.

Atlantis is home to Admiral Boat Manufacturers and Phoenix

Marine, both specialist catamaran manufacturers, and Celtic Yachts

who make catamarans and cruising yachts. Ullman Sails makes sails

in Maitland while Two Oceans Marine Manufacturing constructs its

catamarans on the Foreshore.

The Whisper Boat Building Academy is located at the False Bay

TVET College.

ONLINE RESOURCES

Cape Town Boatbuilding and Technology Initiative (CTBi):

www.ctbi.co.za

Cape Chamber of Commerce: www.capetownchamber.com

National Agricultural Marketing Council: www.namc.co.za

National Department of Trade and Industry: www.thedti.gov.za

South African Boatbuilders Export Council (SABBEX):

www.sabbex.co.za

South African Textile Federation: www.texfed.co.za

Wesgro: www.wesgro.co.za

103 WESTERN CAPE BUSINESS 2017


Seascape Stainless

Specialised manufacturer of stainless steel and aluminium components

and products for the marine, automotive and agricultural industries.

Seascape Stainless Steel Services and Formatube

(Pty) Ltd (an ISO 9001:2015 certified

company) have recently merged operations.

Seascape Stainless Steel Services has been

the preferred supplier to the marine industry

for a number of years, and with the addition of

Formatube under our brand, we can now offer

the specialised tube bending and manipulation

services in stainless steel and aluminium

that has won several awards.

In the early years of its existence, Seascape

Stainless Steel Services focused on the yachting

industry’s very particular stainless steel

needs. It has subsequently extended its specialist

manufacturing services to products

suitable for a number of other industries.

Formatube is renowned for its ability to

bend piping without welding it, resulting in a

finished product that has a smaller degree of

ovality than most competitor products.

Capitalising on the success of the two businesses

and to accommodate our growth, we

are now operating from a new state-of-theart

facility in Blackheath in the Western Cape.

We also intend expanding operations into

Europe in 2017.

What we do

Our skilled team of engineers and artisans with decades

of combined experience are able to provide a range of

specialist services including:

• Supply and distribution

• Tube forming and manufacture

• Manipulations

• Cutting

• Rolling

• Notching

• Precision bending

• Mandrel bending

• Customised designs

• Precision manufacturing of stainless steel and

aluminium marine accessories

• Polishing

• International trade in required products

• Guillotines and press-brake cutting and bending

• Laser cutting

CONTACT US TO DISCUSS YOUR MANUFACTURING

OR TUBE BENDING REQUIREMENTS.

TEL: +27 21 905 0087 | FAX : 086 695 0635

EMAIL: sales@seascapesss.com or koorts@seascapesss.com


Steel Services

Industries supplied

We are able to supply customised, high-quality

products to the following industries:

• Marine

• Automotive

• Agricultural

• Architectural

• Petrochemical

• Aerospace

• Pharmaceutical

• Food and Wine

Footprint

We have been supplying the local market for 15 years and the international market for eight years.

Our products are being supplied to a range of countries including the United Kingdom, the USA, New Zealand,

Australia, Norway, the Maldives, Seychelles, Mauritius and a number of other African and European countries.

MEMBERS OF:

Sassda

MEMBER

FIND US AT:

26 Cincaut Road,

Saxenburg Industrial Park 1,

Blackheath, Cape Town


OVERVIEW

Construction and property

development

Construction is on the rise in the Western Cape.

SECTOR INSIGHT

3 000 housing units are

planned for the old Conradie

Hospital site.

• Two new estates have

been built in George.

Commercial and residential development plans totalling

654 000m² were approved in the Western Cape in

2015, a 14% rise over the previous year and a figure

almost nine times greater than that for the province

of Gauteng.

The construction sector has grown steadily over the past several

years and is expected to be the fastest-growing sector in the

next five years, especially in the City of Cape Town. Infrastructure

spending and residential developments are the key drivers in this

trend (Western Cape Treasury).

The hotel-led construction boom in the central business district

of the City of Cape Town is the subject of a separate article

elsewhere in this publication. A large hotel and conference centre

development was opened in early 2016 at Century City.

House prices in Cape Town are moving upwards faster than

anywhere else in the country, both in terms of inflation (10.35%

vs 5.59%, Lighthouse) and average house prices (11.89% vs 5.6%,

Pam Golding). A six-bedroomed Clifton house sold for a record

R90-million in November 2016.

The economic development department of the City of Cape Town

has done a survey of 23 of the city’s industrial areas, designed to help

the decision-making process for

investors and businesses wanting

to expand. The report found

that there were 7 229 businesses

in the 23 areas and that industrial

property was concentrated in two

areas: Voortrekker Road and the

metropolitan south-east including

the airport precinct, Epping

and Philippi.

The CBD hosts 39% of office

space in Cape Town, with

Bellville/Tygerberg accounting

for 25%. The fairly new development

at Century City has already

secured 12% of office accommodation

with the established suburb

of Pinelands (which houses a

huge Old Mutual office) responsible

for 11%.

The first Western Capespecific

real estate investment

trust (REIT) listed

on the stock exchange in

November 2016. Spear Reit’s

R1.5-billion portfolio comprises

mostly industrial property (46%)

with retail and office space each

making up 22%.

WESTERN CAPE BUSINESS 2017

106


OVERVIEW

Growth areas

Brackengate 2 is a new industrial

area that has been developed

east of the R300 highway. It is

intended as a warehousing and

distribution node, given the easy

access to the N1 and N2 highways.

Shoprite has a distribution centre

at the site. Brackengate Business

Park, the first phase of the development,

has tenants such as Fruit

and Veg City, Docufile, Pearson

and British American Tobacco.

Voortrekker Road is the subject

of several interventions to

encourage bulking up (businesses

and residential). The

Greater Tygerberg Partnership is

working to provide a catalyst for

new developments that will build

on the area’s existing strengths:

transport links, medical facilities,

retail, motor dealerships and

residential.

Possible construction projects

could arise out of the fact that

about 100 000 students are in

the area. The Greater Tygerberg

Partnership has done a study

on students’ accommodation

needs and encouraged building

owners to cater to this need.

Two buildings have recently

been purchased with the intention

of turning them into student

accommodation.

The Voortrekker Road Corridor

already has services and an established

built environment

but it also has some dilapidated

structures and has lots of open

spaces. In other words, it has lots

of potential.

A pilot scheme is being

launched on the 22ha site of the

old Conradie Hospital, which lies not far from Voortrekker Road in the

suburb of Pinelands. A 3 000 housing unit development is planned

there, which will align with the provincial government’s concept of Live,

Work and Play. With the state (provincial or local government) putting

in the bulk infrastructure, costs for developers would be significantly

reduced – the quid pro quo is that the developer must then set aside

a certain number of housing units (49%) to grant-funded housing.

Spatial planning also underpins the thinking behind the concept

of an “aerotropolis”, the idea of using a city’s airport to be a catalyst for

growth across multiple sectors. The airport’s cluster of industries and

storage facilities should be linked to the metropolitan south-east and

two sections in Philippi: the industrial area and the horticultural area.

An area that continues to grow in terms of residential property

is the West Coast. With mountains to the east, it is logical that areas

north of Cape Town will grow: the only constraint is access to water.

Blouberg, Parklands and Sunningdale continue to attract good houses

for residential property. Several schools have been built in the area.

A developer has put forward a plan to build a city near Melkbosstrand.

The ambitious plan is called Wescape. The MyCiti bus service with its

own dedicated lane is making it easier to live in suburbs along the West

Coast. MyCiti also serves the Century City development.

George on the Southern Cape coast has seen some substantial new

developments, including a private hospital built for MediClinic, some

new malls and a number of estates being completed. The famous

Fancourt facility, which incorporates residential holiday accommodation

and a hotel, also has three golf courses (but one has a very

exclusive membership). Kingswood is another premier golf estate in

George. Pam Golding was selling a three-bedroomed townhouse at

Kingswood in November 2016 for R2.35m.

Newer estates have been built on the eastern edge of George,

near to the recently constructed mall, the Eden Meander Lifestyle

Centre. Kraaibosch estate will have four options for potential buyers,

including a retirement village. The Blue Mountain Lifestyle Estate has

similar options.

ONLINE RESOURCES

Construction Industry Development Board: www.cidb.org.za

Greater Tygerberg Partnership: http://gtp.org.za/

Master Builders and Allied Trades Association, Western Cape:

www.mbawc.org.za

SA Estate Agency Affairs Board: www.eaab.org.za

SA Institute of Architects: www.saia.org.za

SA Institute of Valuers: www.saiv.org.za

SA Property Owners Association: www.sapoa.org.za.

107 WESTERN CAPE BUSINESS 2017


OVERVIEW

Tourism

New flights are bringing greater numbers of tourists to the Western Cape.

The Western Cape attracts huge numbers of tourists every year and

this is a sector where positive growth has already created many job

opportunities. Every kind of tourism is doing well, from leisure and

adventure tourism to meetings and conferences.

Tourism grew at 6.6% for the five years to 2014 and generated jobs

growth in the same time period of 7.7%. The sector employs 204 000 people

in formal jobs and is worth about R17-billion to the regional economy.

A project to increase the number of seats available on aeroplanes

flying into Cape Town International Airport has reaped remarkable

success. Between July 2015 and December 2016 the Cape Town Air

Access programme secured an increase in 408 400 direct two-way

seats to Cape Town from destinations such as Dubai (140 000), Turkey

(110 000), Ethiopia (80 000) and the Netherlands (30 000). A total of

162 000 tourists travelled to the Western Cape from the USA; arrivals

at the Cape Town International Airport increased 16% year-on-year

in 2015.

The airport regularly wins accolades such as Best Airport in Africa

and the total number of passengers passing through the airport has

been above eight-million every year since the FIFA football World Cup

in 2010, with the figure approaching 10-million in 2015/16.

SECTOR INSIGHT

The Cape Town International

Convention Centre will be

twice as large in 2017.

• Scheduled flights are

available to Plettenberg

Bay.

• Hilton Hotels and Resorts

runs a resort in Knysna.

Cape Town’s Foreshore

is alive with new tourism

developments.

George Airport had a total of

about 720 000 passengers last

year. Airlink, SA Express and kulula

are the airlines that fly into George.

It serves as a tourism hub for the

Southern Cape region, includ-

WESTERN CAPE BUSINESS 2017

108


OVERVIEW

ing destinations such as Knysna,

Oudtshoorn and Plettenberg Bay.

CemAir offers scheduled flights to

Plettenberg Bay.

Several strategies are being

adopted to further improve the

province’s tourist offering and

increase numbers. These include

a service excellence programme

where a town’s residents are encouraged

to act as tourism ambassadors.

A pilot project was successfully

launched in Clanwilliam,

where everyone in the town,

including shop clerks and petrol

station attendants, joined in.

Work is being done on improving

the system of visa approvals

and on linking various sites associated

with the late President

Nelson Mandela. Halaal tourism

also holds tremendous potential.

One of the reasons that tourists

visit the Western Cape is the

quality of its beaches. The province

has 29 Blue Flag-accredited

beaches, an international quality

standard that covers 33 different

measures. Ten beaches in greater

Cape Town together with the likes

of Santos (Mossel Bay), Grotto

(Hermanus), Witsand (Hessequa)

and Wilderness (Eden) have made

the grade. A further five marinas

have qualified for the programme,

the local version of which is run

by the Wildlife and Environment

Society of South Africa.

Hotels and conferences

The capacity of the Cape Town

International Conference Centre

(CTICC) is being doubled. The

R832-million expansion will add

31 000m², including 10 000m² of

conference and exhibition space. CTICC East (the new section) will

connect to CTICC West via a tunnel (for services) and a skybridge

over the Heerengraght. The new section is expected to open in 2017,

and will line up along other new Foreshore buildings such as KPMG

Place and the Netcare Christiaan Barnard Memorial Hospital. The

South African Green Building Council has given the CTICC expansion

a Four-Star Green Building rating.

The Foreshore is at the heart of a series of new developments

that are set to have a major impact on the tourism industry. These

include the new Cruise Terminal and the adjacent Yacht Club, a hotel,

residential and commercial complex being developed by the Amdec

Group. This precinct is very close to the entrance to the CTICC and

will be linked to the Waterfront by the extension of the existing canal.

On the other (eastern) edge of the Foreshore, an a major development

is in the works which will include two Marriott hotels. In

the Cape Town CBD there are going to be 500 new rooms, courtesy

of two Tsogo Sun hotels, plus a smaller hotel in the De Waterkant

(Capital Mirage). Tsogo Sun already operates several hotels in greater

Cape Town, including three full-service hotels in the city centre, the

Cullinan, Southern Sun Waterfront and Southern Sun Cape Sun. The

other seven hotels cover five brands in the Tsogo Sun stable.

Elsewhere in the Western Cape, Tsogo Sun has hotels in Caledon,

Beaufort West, Mossel Bay and Plettenberg Bay.

109 WESTERN CAPE BUSINESS 2017


OVERVIEW

Outside of the Cape Town CBD, a revamp of the Ritz in Sea

Point will add another 220 rooms to the city’s capacity while in

Franschhoek, the last word in luxury has opened as Leeu House

(part of the Leeu Collection). Analjit Singh has also acquired Le

Quartier Français restaurant, one of best known in a town where

outstanding restaurants are plentiful, and a wine label, Mullineux

& Leeu Family Wines.

Protea Hotels, now part of the Marriott Group, has 10 hotels in

Cape Town and a further one each in Franschhoek and Stellenbosch.

There are two hotels in George.

Three of the brands of City Lodge Hotel Group are represented

by seven hotels in the Western Cape, with all but one of the hotels

(the George Town Lodge) being located in Cape Town.

Hilton Hotels and Resorts has three Western Cape properties,

two hotels in Cape Town and the Conrad Pezula Resort & Spa on

the eastern head of the Knysna Heads.

The Waterfront will soon be getting two more hotels (Radisson

Red) and the Silo Hotel attached to the Zeitz Museum of

Contemporary Art Africa.

In addition to all of these beds available in Cape Town, there are

15 000 properties on Airbnb. A Western Cape tourism delegation

met with Airbnb in the USA in 2016.

Country Hotels has upgraded the 42-room Clanwilliam Hotel as

part of its plan to roll out good accommodation in smaller towns.

What used to be known as the Hantam Hotel in Calvinia is now

the refurbished Calvinia Hotel and Tankwa Lodge offering 25 airconditioned

rooms and easy access to flower-spotting and

the Tankwa Karoo National

Park. Plett Lagoon Villa on

the Keurbooms Lagoon is

rather different to the rest

of the Country Hotels suite

of hotels in that it is a fivebedroomed

house to rent.

Country Hotels has other hotels

in the Northern Cape Province.

Events

The international HSBC Rugby

Sevens tournament was held for

the first time in Cape Town in

2015 and was a huge success. The

City of Cape Town says that the

tournament attracted more than

100 000 fans, at least 25 000 of

whom were international visitors.

The local economy benefited to

the tune of R539-million. A contract

has been signed to keep the

tournament in the city to 2018.

The Cape2Rio yacht race returns

to the Cape in January 2017.

WESTERN CAPE BUSINESS 2017

110


OVERVIEW

In the last race in 2014, a total of

eleven of the fleet of 37 boats had

to retire in stormy weather, testament

to the tough nature of the

event. The event first took place in

1971 and since then it has become

a byword for the glamour and

gruelling nature of long-distance

yacht racing. Royal Cape Yacht

Club will host the event, which is

sure to boost the coffers of Cape

Town’s tourism industry.

The Klein Karoo National Arts

Festival (KKNK) is held every year

in Oudtshoorn in April. It attracts

hundreds of artistic productions of

every sort, mostly in Afrikaans, with

attendances normally topping

90 000 festival-goers

ONLINE RESOURCES

CapeNature: www.capenature.co.za

Cape Town Tourism: www.capetown.travel

Destinations Expo: www.cadek.co.za

Garden Route and Klein Karoo:

www.visitgardenrouteandkleinkaroo.com

South African Golf Tourism Association: www.sagta.co.za

South African National Parks: www.sanparks.co.za

South African Tourism: www.southafrica.net

Tourism Business Council of South Africa: www.tbcsa.travel

Tourism Grading Council: www.tourismgrading.co.za

Wesgro: www.wesgro.co.za

Cape to Rio: www.cape2rio2017.com

Plettenberg Bay: www.plett-tourism.co.za

Wildlife and Environment Society of South Africa:

www.wessa.org.za

111 WESTERN CAPE BUSINESS 2017


OVERVIEW

Banking and financial services

The JSE has opened an Exchange Hub in Cape Town.

SECTOR INSIGHT

A Stellenbosch bank has expanded

the Big Four to Five.

• International banks are

setting up app development

hubs in Cape Town.

The finance and insurance sector contributes 10.9% to provincial

GDP and grew at a rate of 6.4% between 2000 and 2013.

Research done by banking group First National Bank notes

how successful the Western Cape has been in attracting financial

services companies of every sort. These range from asset managers to

hedge funds, venture capitalists and insurers. The sector outperformed

most other sectors according to the report, and further growth is

anticipated (FNB Chartbook).

The decision by the Johannesburg Stock Exchange (JSE) to open

a JSE Exchange Hub in Cape Town confirms the city’s importance

in the financial world. There are eight Cape Town-based companies

in the Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers,

Woolworths, British American Tobacco, Remgro, Shoprite Holdings

and Sanlam.

The head offices of financial firms are dotted all over Cape Town.

These include Old Mutual (a huge complex in Pinelands), Foord (also

in Pinelands), Coronation (Newlands), Prudential (Claremont), Sygnia

(Green Point), Sanlam (Bellville) and Allan Gray (Waterfront). PSG has

its headquarters in Stellenbosch and is well represented in rural

towns in the province. Even the small rural town of Greyton is home

to Overberg Asset Management.

Insurers such as Santam and

Metropolitan Life are based

in Bellville.

Most of the banking groups

also offer a range of services

such as asset management or

investment advice.

Financial services group Old

Mutual (which has a 54% stakeholder

in Nedbank) is set to create

four stand-alone businesses

out of the Old Mutual Group. This

will allow the UK-based wealth

management business and the

New York-based asset managers

to be free of linkages to the

rand, while the South African

businesses, Nedbank and Old

Mutual Emerging Markets, can

focus on their specialities.

Fintech is the new buzz word

in the world of banking. Barclays

has established a worldwide organisation

to promote the latest

thinking in app development.

Rise has seven outlets around

the world, including one in

Woodstock in Cape Town. A

WESTERN CAPE BUSINESS 2017

112


OVERVIEW

French-funded fintech operation

was launched at Century City in

November 2016.

In 2015, the Western Cape

Provincial Government, the

University of Cape Town, Barclays

Africa Group, FirstRand and

Liberty launched the African

Institute of Financial Markets

and Risk Management (AIFMRM).

One of its aims is to meet the

demand for skills by developing

local talent.

Banking

For many decades South Africa

had a retail banking Big Four –

Standard Bank, Nedbank, Absa/

Barclays and First National Bank.

All of them have a strong presence

in the Western Cape, but

the big news in the sector since

2001 has been the emergence

of Stellenbosch-based Capitec

Bank. Based on Capitec’s results

for 2015/16, BusinessTech published

a chart giving Capitec the

fourth-most customers, at 7.3-million,

just less than Nedbank and

slightly more than FNB. Standard

Bank (about 11-million) and Absa

(about nine-million) are top of

the list.

With the renewable energy

sector being actively pursued

in South Africa, a whole new

industry in need of funding has

opened up for banks.

Competition among banks

in reaching out to South Africa’s

emerging economy is stiff.

Finscope’s 2014 survey of

South African banking and financial

surveys shows that between

2004 and 2014 a remarkable

eight-million people were connected to the financial system in

some way. Overall, the “financially included” reached 31.4-million (up

from 17.7-million in 2004). In a category called “formally served” which

includes services other than formal banks with branch networks, the

percentage of South Africans so served grew from 50% to 80%; in

the “banked” category (more traditional but including new devices),

the percentage grew from 46% to 75%. This is partly because South

Africa’s formal banking sector has such excellent – and widely spread

– infrastructure.

Among recent innovations designed to reach the unbanked were

Teba Bank’s decision to allow customers to deposit at supermarkets,

Pick n Pay Go Banking (a division of Nedbank), 70% of Absa’s new ATMs

(400 in one year) in poorer areas and Absa’s launch of two mobile

banks. FNB created mobile branches and most of Standard Bank’s

new sites were planned for townships (Finscope).

Absa’s partnership with Thumbzup allows shops to accept card

payments with smartphones and tablets. Absa’s Entry Level and

Inclusive Banking (Elib) branches have proved popular, accounting

for an increasingly high percentage of the bank’s loan book.

Nedbank has Approve-it, which allows customers to accept or

reject an Internet transaction by cellphone.

FNB offers a range of cellphone-banking options and a Facebook

application where cellphone vouchers can be posted on the socialnetworking

site. The eWallet application converts the voucher into

cash or airtime.

Standard Bank’s community-banking initiative offers a low-cost

cellphone-banking service. Retailers can act as agents for the bank,

even in remote rural areas. Shops such as Shoprite, Pep and Spar are

connected, as are certain spazas.

The stokvel (savings clubs) market is estimated at R44-billion and

developing products for this market could be a lucrative outlet for

South African financial services companies.

ONLINE RESOURCES

Alternative Exchange (AltX): www.altx.co.za

Auditor-General South Africa: www.agsa.co.za

Banking Association South Africa: www.banking.org.za

Financial Services Board: www.fsb.co.za

Insurance Institute of South Africa: www.iisa.co.za

Insurance South Africa: www.insurance.za.org

JSE Limited: www.jse.co.za

Post Bank: www.postbank.co.za

South African Reserve Bank: www.resbank.co.za

South African Institute for Chartered Accountants:

www.saica.co.za

113 WESTERN CAPE BUSINESS 2017


INTERVIEW

Renewed focus on

improved customer

experience

Provincial Head Retail and Business Banking Standard

Bank Western Cape, Eben Klopper, explains what the bank

is doing to provide the innovation and service that matter

most to customers.

Eben Klopper

What is Standard Bank’s purpose in South Africa?

As a personal and business bank in South Africa, our purpose is to

improve lives and fulfil aspirations across the African continent. We

believe that we can achieve this through our vision, which is to radically

redefine client experience by understanding and delivering what

matters to our customers.

BIOGRAPHY

Eben Klopper, the newly appointed

Provincial Head Retail

and Business Banking for the

Western Cape, is a seasoned

banking professional. Having

started on the bottom rung of

the ladder at Standard Bank in

1990, his progress in the organisation

has seen him fulfi l a

variety of business and commercial

banking roles in four

South African provinces. Prior

to his promotion to Regional

Head he was the Executive:

Head Channel Business Banking,

Commercial Banking and

Specialised Sales.

What is your footprint beyond South Africa?

Standard Bank Group prides itself on being a global bank with African

roots. The largest African bank by assets and earnings, it operates in

20 countries on the African continent, including South Africa, as well

as in other selected emerging markets.

The Group’s aim is to grow their presence selectively in high potential

markets in Africa and in other emerging markets, either organically

or, where appropriate, by acquisitions.

In your new role of Provincial Head Retail and Business

Banking, what is your strategy regarding Standard

Bank’s business in the region?

As a team, our priorities include greater emphasis on customer experience.

We intend to make sure that every customer feels like a VIP; we

will do this by raising our game and getting to know what matters

most to them.

One of the ways in which we will improve customer experience is

through our digital solutions, as these assist customers by freeing up

their time. Something else that will directly impact customers is our

goal of decentralising decision-making so that decisions are made as

close as possible to the “frontline”.

We want to increase our market share in all customer segments

and to build specialist capabilities to serve our small enterprise (SE),

commercial and business banking clients.

WESTERN CAPE BUSINESS 2017 114


INTERVIEW

What will some of the key focus areas be?

Foreign exchange: In the Western Cape we will be

driving our foreign exchange (FX) and international

banking capabilities. Standard Bank is relentless in

providing support to our businesses with a view to

improving liquidity and driving growth across the

African continent.

Companies active in the international market,

be it in trade or the provision of services, may find a

Customer Foreign Currency account a useful mechanism

for managing the flows of foreign currency

receipts and payments. It is suitable for businesses

with a high import and export turnover, including

large volumes of shipments of relatively small values.

The Western Cape presents many international

trade and foreign exchange opportunities, which

can be offered and facilitated by our FX specialists.

They are fully integrated in our Business Banking

Business Centres to support our Standard Bank and

non-Standard Bank client base.

“OUR RESEARCH INDICATES

THAT TWO OUT OF EVERY 10

BUSINESS CLIENTS ARE KEEN

TO EXPAND TO THE REST OF

AFRICA.”

A game changer, in forex capabilities, is Standard

Bank’s strategic partnership with the Industrial and

Commercial Bank of China. While Standard Bank

already conducts 2.1-million forex trades each

year, the bank’s partnership with the Industrial and

Commercial Bank of China provides a unique ability

to deal Renminbi competitively.

Resident Africa advisor: Our research indicates that

two out of every 10 business clients are keen to expand

to the rest of Africa and we have appointed

someone with valuable Africa experience to act as

a resident advisor to businesses in the province. Our

expert will be able to make recommendations on

doing business in any of the 20 African countries in

which Standard Bank has a presence.

During 2016, in support of our focus on the rest

of Africa, we led two successful trade delegations –

one to East Africa and one to West Africa. This was

a first for us and the initiative was very well received.

Commercial property finance: Another key focus

is commercial property finance. I have been actively

involved in this area over the past few years and

it has been a successful market for the bank, but

there are additional opportunities to explore in the

Western Cape.

A business’s premises are integral to their trading

operation and it is important that businesses secure

tenure as well as create equity in their investment.

Standard Bank understands the importance of supporting

its customers in all aspects of their business

growth, including where customers are diversifying

from their main business interests to invest in

commercial rental properties.

The Western Cape commercial property finance

market has continued to show strong growth, outperforming

many of its peers in the country, which

further supports the bank’s focus on the industry

going forward.

Have the needs of and demands from

your key business clients changed in the

past few years or do the challenges they

experience essentially remain the same?

Economic growth has been muted and so

the landscape has definitely changed. For this

115 WESTERN CAPE BUSINESS 2017


INTERVIEW

reason, many of our customers are looking outside

of South Africa’s border. Cross-border financing is

more complex and so their banking requirements

have changed in some cases. Volatility and currency

fluctuations have meant that forex hedging and

forward-buying have become more important.

These days, customers also have a greater choice

when it comes to international products and are not

compelled to use local banks for each transaction.

Increasingly, executives are complaining about

the difficultly they have in recruiting appropriately

skilled people.

Has Standard Bank introduced any new

products or services recently?

In the last year we introduced a reward programme

for our small enterprise (SE) clients – UCount:

Businesses with an annual turnover of up to

R20-million stand to benefit from these rewards.

Payment solutions: BluMobi is another innovation

we’ve introduced; it functions as a fully mobile

point-of-sale solution. SnapScan and Tap to Pay are

other payment solutions that are making it far more

convenient for business clients to collect payment

and for individuals to make payments. SE clients also

benefit from Banker Chat 24/7.

Online banking: We are in the process of enhancing

our online banking services, particularly for businesses.

Customers are already able to view balances,

check statements and make payments on their

business accounts.

We have spent time aligning the look and feel

of our applications across various digital platforms,

which means that irrespective of whether customers

choose to use a mobile phone, a tablet or a

computer, they will have the same online experience.

Tradesmen and medical professionals: Two new

areas of focus in the SE segment include specific

value propositions for tradesmen and the medical

profession. The Tradesmen offer packages a number

of banking services at a very affordable rate. The

Medical proposition provides solutions that will

assist medical professionals in both their personal

capacity and business capacity.

Instant Money: Another product that has been extended

to our business customers is Instant Money,

“THE WESTERN CAPE

COMMERCIAL PROPERTY

FINANCE MARKET HAS

CONTINUED TO SHOW STRONG

GROWTH, OUT- PERFORMING

MANY OF ITS PEERS IN THE

COUNTRY.”

a payment solution that allows you to send money

to anyone in South Africa by using their cellphone

number. This solution will allow businesses to make

payments in a cost-effective and secure manner.

Always On: As far as our personal customers are concerned,

they benefit from Always On – 24/7 banking

anywhere, anytime. Customers can now conduct

their banking through email, WeChat, Facebook, a

call to their personal banker or by simply using our

banking app and new internet banking functionality.

Shari’ah offering: Many of our Western Cape customers

will be pleased to hear about an improved

Shari’ah offering relating to fixed deposits for personal

and business purposes as well as forward exchange

contracts.

Kidz Banking: We have also aunched a Kidz Banking

app that teaches children how to manage money

from a young age.

Having mentioned all of these innovations and

new products, I still believe, however, that the real

differentiator will be in the way that we execute

our intentions. Great thinking and effective marketing

messaging are important, but we intend to ensure

that Standard Bank Western Cape implements

excellent service and that we do what matters most

to customers.

WESTERN CAPE BUSINESS 2017 116


FOCUS

Banking for your business

Standard Bank understands that as a business owner, you would prefer

to free up your time and focus on running your business. Its online

banking solutions allow you to do that.

We understand that to manage your business you cannot

be restricted by banking hours. We also understand that

managing your financial affairs online can be daunting.

At Standard Bank we have a range of online banking

solutions that enable you as the business owner to do your everyday

banking, everywhere you are. Online banking is convenient, cost effective

and secure. You can have peace of mind when you transact online.

How does online banking help you manage

your business?

• It saves you time, allowing you to focus on running your business

• It helps you maintain control of all activity on your

business accounts

• It allows you to bank everywhere you are

What can I do on online banking?

• Pay people and companies, that is, suppliers or invoices

• Transfer funds to and from your business accounts

• View account balances and download statement’s history

• Top-up on prepaid services

Is it secure?

• Yes. As the business owner, you will maintain complete oversight

over all activity on the business account

• You are notified every time your online banking profile is accessed

• Your confirmation is required (One Time PIN) before beneficiaries

are added or when you change your profile

• You are notified when funds leave your account (email or SMS

notification) and you always know your latest balance

• You can manage transactions limits (Electronic Account Payment and

ATM limits), minimising your online exposure while giving you control

How do I sign up?

• Register online or download the Standard Bank app form your app store

• If you already have access to

the app, you can use the same

login details to sign in to online

banking

What do I need?

• A smartphone, tablet, laptop

or desktop computer

• You must be the director or

owner of your business

• You have a card and PIN linked

to your business account

What are the costs?

• Access is free

• Account management fees,

transactional fees and subscription

fees are as per the

annual Standard Bank pricing

schedule

More info

To find out more about online

banking, contact us anytime

via the BizDirect Response

Centre on 0860 109 075,

via email bizdirect@standardbank.co.za

or via WeChat

(BB_Entrepreneur).

Visit our website to see our

security tips and terms and

conditions for using Standard

Bank digital channels.

www.standardbank.co.za

WESTERN CAPE BUSINESS 2017

118


Global Africa Network

Promoting business, trade and investment in SA’s nine provinces

www.gan.co.za

www.southafricanbusiness.co.za

www.easterncapebusiness.co.za

www.freestatebusiness.co.za

www.gautengbusinessguide.co.za

www.kwazulunatalbusiness.co.za

www.limpopobusiness.co.za

www.mpumalangabusiness.co.za

www.northerncapebusiness.co.za

www.northwestbusiness.co.za

www.westerncapebusiness.co.za

NETWORK MEDIA

Tel 021 657 6200

Email sales@gan.co.za

Web www.gan.co.za


OVERVIEW

Information and

communications technology

Cape Town is attracting ICT investment.

Providing better and broader access to broadband is a key

priority for the Western Cape. The provincial government has

identified the issue as an economic enabler that will act as a

catalyst for growth across several economic sectors. There are

2 000 ICT firms in the Western Cape and they have 17 000 employees.

Private companies Link Africa and Fibrehoods are rolling out highspeed

connections via fibre-optic cables to residential addresses. As

part of the contract, Fibrehoods must supply the city with a line for

the use of public institutions.

A group of entrepreneurs, investors and developers has created the

non-profit Silicon Cape Initiative which aims to support the burgeoning

sector. Just one of its groups, the Startup Group, has 425 members

and it offers advice and support.

The Cape Innovation and Technology Initiative (CiTi) is another

support system for the ICT sector. The Bandwidth Barn (shared office

space in Woodstock) is one of three initiatives run by CiTi. The others

are VeloCiTi (enterprise and entrepreneur development) and CapaCiti

(tech skills and job placement). The University of Cape Town claims a

90% placement rate for CapaCiti and more than 400 graduates. CiTi

collaborates with two departments of the Western Cape provincial

government, Oracle and On The Ball College to present the Java

Schools Programme, which promotes programming.

Barclays Bank has invested in a fintech incubator in Cape Town, Rise.

The building has an auditorium, meeting and conference rooms but

the main idea is to create a community of thinkers and developers.

Banks are keen to stay ahead of the game and there are six other Rise

incubator locations around the world, including New York and Mumbai.

It was a banking application (app) that won the IT Challenge presented

by Standard Bank in 2015. Three students from the University

of the Western Cape created a voice-activated online banking app,

ONLINE RESOURCES

Cape Innovation and Technology Initiative: www.citi.org.za

Independent Communications Authority: www.icasa.org.za

Silicon Cape: www.siliconcape.com

State Information Technology Agency: www.sita.co.za

SECTOR INSIGHT

Silicon Cape is a catalyst for

tech in the Western Cape .

which they called EasyBank. The

challenge was to use and adopt

the Amazon Echo app.

French Tech Labs was

launched as a fintech incubator

at Century City in November

2016. The same company earlier

established Methys Labs. The new

incubator will offer mentoring

support for innovators, connections

to possible investors and

a programme where selected

candidates will travel to France

for work opportunities.

There is no business sector

less in need of a geographic

home than ICT but a section of

Cape Town is developing into

a Silicon Valley: Marconi Beam/

Century City. DVT’s app-testing

facility is immediately south of

that location (just off the N1 at

Northgate Island) so perhaps

this is the home of Western Cape

ICT. Wembley Square and nearby

buildings in Gardens might

be another candidate, where

Amazon Development Centre is

a core tenant.

WESTERN CAPE BUSINESS 2017

120


Business process outsourcing

Offshoring – foreign BPO contracts – is growing fast.

OVERVIEW

The South Africa business process outsourcing sector has

consistently won international awards for the work it does

for international companies and 2016 was no exception. The

Global Sourcing Association (previously National Outsourcing

Association) capped South Africa as the “Offshoring Destination of

the Year” for 2016 in London in November.

BPO involves any internal business function that a company chooses

to outsource to a specialist in that field, for example accounting or

call centres (also known as customer service centres). One interesting

example relates to loading an aeroplane’s freight load – in Frankfurt!

The loader does this in the Western Cape via remote cameras and

weighing machines. After work the loader can visit the beach.

Offshoring refers to BPO that is done across international borders.

Cape Town is a leader in the field. A City of Cape Town report gave

the BPO contribution to provincial GDP in 2014 as approximately

R9-billion.

The national Minister of Trade and Industry, Rob Davies, says that

the local BPO sector has had compounded growth since 2012 of 25%

year-on-year. There are approximately 30 000 jobs nationally with the

top market being the UK.

Within the Western Cape sector, 63% of companies are involved in

inbound customer service work; back office accounts for 13.8% and

debt collection at 9.1%. UK shop Asda and online retailer Amazon

have large customer service centres in Cape Town.

The fact that greater Cape Town is home to three well-regarded

universities, a university of technology and two technical colleges

is a major advantage in attracting companies with sophisticated

operations, such as BPO. A director of a British business intelligence

ONLINE RESOURCES

Business Process enabling South Africa (BPeSA):

www.bpesa.co.za

National Department of Trade and Industry: www.dti.gov.za

Wesgro: www.wesgro.co.za

SECTOR INSIGHT

Incentives are on offer to

BPO investors.

• South Africa’s BPO sector

won a 2016 global award.

company that has operations

in Cape Town, S-RM, says the

that Cape Town’s position as a

“knowledge nexus” was a major

factor in deciding to open an

office in the city.

Other factors in favour of

Cape Town are the relatively neutral

accents, good infrastructure

(financial and telecommunications)

and the time zone being

the same or close to Europe’s.

The Department of Trade

and Industry (dti) offers some

incentives to BPO investors. A

base incentive is calculated on

projected offshore jobs to be

created and is awarded on actual

offshore jobs created. The

incentive has a two-tier structure

for non-complex and complex

jobs and is paid over a five-year

period. A bonus incentive becomes

payable at the end of the

five-year period.

121 WESTERN CAPE BUSINESS 2017


LISTINGS

South African National Government

An overview of South Africa’s national government departments.

www.gov.za

President

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Website: www.economic.gov.za

Deputy President

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Minister in the Presidency

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 300 5795

Website: www.thepresidency.gov.za

Dept of Agriculture, Forestry and Fisheries

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street

and Soutpansberg Road, Arcadia, Pretoria

Postal address: Private Bag X250, Pretoria

Tel: +27 12 319 7319

Fax: +27 12 319 6681

Website: www.daff.gov.za

Department of Arts and Culture

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza

Bopape streets, Arcadia, Pretoria 0001

Postal address: Private Bag X899, Pretoria 0001

Tel: +27 12 441 3000 | Fax: +27 12 440 4485

Website: www.dac.gov.za

Department of Basic Education

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001

Postal address: Private Bag X9034, 8000

Tel: +27 12 357 3000

Fax: +27 12 323 5989

Website: www.education.gov.za

Department of Communications

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival

Street), Hatfield, Pretoria 0001

Postal address: Private Bag X745, Pretoria 0001

Tel: +27 12 473 0000

Fax: +27 12 462 1646

Website: www.doc.gov.za

Department of Cooperative Governance and

Traditional Affairs

Address: 87 Hamilton Street, Arcadia, Pretoria 0083

Postal address: Private Bag X802, Pretoria 0001

Tel: +27 12 334 0705

Fax: +27 12 326 4478

Website: www.cogta.gov.za

Department of Correctional Services

Address: 123 Poyntons Building, West Block,

cnr Schubart and Church streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884

Fax: +27 12 323 4111

Website: www.dcs.gov.za

Department of Economic Development

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &

Esselen streets, Sunnyside, Pretoria 0001

Postal address: Private Bag X149, Pretoria 0001

Tel: +27 12 394 1006

Fax: +27 12 394 0255

Website: www.economic.gov.za

WESTERN CAPE BUSINESS 2017

122


LISTINGS

Department of Defence

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001

Postal address: Private Bag X427, Pretoria 0001

Tel: +27 12 355 6101 | F ax: +27 12 347 0118

Website: www.dod.mil.za

Department of Energy

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001

Postal address: Private Bag X96, Pretoria 0001

Tel: +27 12 406 8000

Fax: +27 12 319 6681

Website: www.energy.gov.za

Department of Environmental Affairs

Address: Environment House, 473 Steve Biko and Soutpansberg Road,

Arcadia, 0083

Postal address: Private Bag X447, Pretoria 0001

Tel: +27 12 310 3537 | Fax: +27 086 593 6526

Website: www.environment.gov.za

Department of Finance (National Treasury)

Address: 40 WF Nkomo Street,

Old Reserve Bank Building, 2nd Floor, Pretoria

Postal address: Private Bag X115, Pretoria 0001

Tel: +27 12 323 8911 | Fax: +27 12 323 3262

Website: www.treasury.gov.za

Department of Health

Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets,

Pretoria 0001

Postal address: Private Bag X399, Pretoria 0001

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165

Website: www.doh.gov.za

Department of Higher Education

and Training

Address: 123 Francis Baard Street, Pretoria 0001

Postal address: Private Bag X893, Pretoria 0001

Tel: +27 12 312 5555

Fax: +27 12 323 5618

Website: www.dhet.gov.za

Department of Home Affairs

Address: 909 Arcadia Street, Hatfield 0083

Postal address: Private Bag X114, Pretoria 0001

Tel: +27 12 432 6648 | Fax: +27 12 432 6675

Website: www.dha.gov.za

Department of Human Settlements

Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001

Postal address: Private Bag X644, Pretoria 0001

Tel: +27 12 421 1310 | Fax: +27 12 341 8513

Website: www.dhs.gov.za

Department of International Relations and

Cooperation

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,

Pretoria 0001

Postal address: Private Bag X152, Pretoria 0001

Tel: +27 12 351 1000 | Fax: +27 12 329 1000

Website: www.dirco.gov.za

Department of Justice and Constitutional

Development

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard

Streets, Pretoria 0001

Postal address: Private Bag X276, Pretoria 0001

Tel: +27 12 406 4669 | Fax: +27 12 406 4680

Website: www.doj.gov.za

Department of Labour

Address: 215 Laboria House, cnr Francis Baard and

Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X499, Pretoria 0001

Tel: +27 12 392 9620 | Fax: +27 12 320 1942

Website: www.labour.gov.za

Department of Military Veterans

Address: 328 Festival Street, Hatfield, Pretoria 0001

Postal address: Private Bag X943, Pretoria 0001

Tel: 080 232 3244 (SA only)

Website: www.dmv.gov.za

Department of Mineral Resources

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007

Postal address: Private Bag X59, Pretoria 0001

Tel: +27 12 444 3000 | Fax: +27 86 624 5509

Website: www.dmr.gov.za

Department of Police (Civilian Secretariat for

Police Service)

Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001

Postal address: Private Bag X463, Pretoria 0001

Tel: +27 12 393 2800 | Fax: +27 12 393 2812

Website: www.saps.gov.za

123 WESTERN CAPE BUSINESS 2017


LISTINGS

Department of Public Enterprises

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001

Postal address: Private Bag X15, Hatfield 0028

Tel: +27 12 431 1000

Fax: +27 12 431 1039

Website: www.dpe.gov.za

Department of Public Service and

Administration

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria

Postal address: Private Bag X884, Pretoria 0001

Tel: +27 12 336 1700

Fax: +27 12 336 1809

Website: www.dpsa.gov.za

Department of Public Works

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Streets,

Pretoria Central

Postal address: Private Bag X65, Pretoria 0001

Tel: +27 12 406 21978

Fax: +27 086 276 8757

Website: www.publicworks.gov.za

Department of Rural Development and

Land Reform

Address: 184 Old Building, cnr Jeff Masemola

and Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X833, Pretoria 0001

Tel: +27 12 312 9300

Fax: +27 12 323 3306

Website: www.ruraldevelopment.gov.za

Department of Science and Technology

Address: DST Building, Building No 53, CSIR South Gate Entrance,

Meiring Naude Road, Brummeria, Pretoria 0001

Postal address: Private Bag X727, Pretoria 0001

Tel: +27 12 843 6300

Fax: +27 12 349 1041/8

Website: www.dst.gov.za

Department of Small Business Development

Address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside,

Pretoria 0001

Postal address: Private Bag X84, Pretoria 0001

Tel: +27 12 394 1006

Fax: +27 12 394 1006

Website: www.dsbd.gov.za

Department of Social Development

Address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001

Postal address: Private Bag X904, Pretoria 0001

Tel: +27 12 312 7479 | Fax: +27 086 715 0829

Website: www.dsd.gov.za

Department of State Security

Address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001

Postal address: PO Box 1037, Menlyn 0077

Tel: +27 12 367 0700 | Fax: +27 12 367 0749

Website: www.ssa.gov.za

Department of Sport and Recreation

South Africa

Address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street,

Pretoria 0001

Postal address: Private Bag X896, Pretoria 0001

Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583

Website: www.srsa.gov.za

Department of Tourism

Address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001

Postal address: Private Bag X424, Pretoria 0001

Tel: +27 12 444 6780 | Fax: +27 12 444 7027

Website: www.tourism.gov.za

Department of Trade and Industry

Address: The dti, 77 Meintjie Street, Block A, Floor 3,

Sunnyside, Pretoria 0001

Postal address: Private Bag X274, Pretoria 0001

Tel: +27 12 394 1568 | Fax: +27 12 394 0337

Website: www.thedti.gov.za

Department of Transport

Address: Forum Building, 159 Struben Street,

Room 4111, Pretoria 0001

Postal address: Private Bag X193, Pretoria 0001

Tel: +27 12 309 3131 | Fax: +27 12 328 3194

Website: www.transport.gov.za

Telecommunications and Postal Services

Address: Iparioli Office Park, 399 Jan Shoba Street,

Hatfield, Pretoria 0001

Postal address: Private Bag X860, Pretoria 0001

Tel: +27 12 427 8000

Fax: +27 12 427 8016

Website: www.dtps.gov.za

WESTERN CAPE BUSINESS 2017

124


LISTINGS

Department of Water and Sanitation

Address: Sedibang Building, 185 Frances Baard Street,

Pretoria 0001

Postal address: Private Bag X313, Pretoria 0001

Tel: +27 12 336 8733

Fax: +27 12 336 8850

Website: www.dwa.gov.za

Department of Women

Address: 36 Hamilton Street, Arcadia Pretoria 0001

Postal address: Private Bag X931, Pretoria 0001

Tel: +27 12 359 0000

Fax: 086 765 3365

Website: www.women.gov.za

National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which

are described as the circle of foundation and the circle of ascendance.

Circle of foundation

Shield – The two Khoisan figures on the shield are taken from a Bushman rock

painting known as the Linton stone, and represent the common humanity and

heritage of South Africans. Depicted in an attitude of greeting, the figures

symbolise unity. Spear and knobkierie – Together, these objects symbolise

defence and authority, but the flat angle at which they lie symbolises peace.

Wheat – The ears of wheat, as emblems of fertility, represent germination,

growth and the development of potential, as well as nourishment

and agriculture. Elephant tusks – Elephants symbolise wisdom, strength,

power, authority, moderation and eternity, and the use of tusks is a tribute

to the world’s largest land mammal, Loxodonta Africana, which is found in

South Africa. Motto – Taken from the language of the now extinct /Xam

Bushmen, the motto translated means ‘people who are different come

together’ or ‘diverse people unite’.

Circle of ascendance

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the

secretary bird represents growth and speed, and is a symbol of divine majesty and protection.

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for

a country characterised by sunshine and warmth.

125 WESTERN CAPE BUSINESS 2017


LISTINGS

Western Cape

Provincial Government

An overview of the Western Cape’s provincial government departments.

Office of the Premier

Premier: Ms Helen Zille

Provincial Legislature Building, 1st Floor,

7 Wale Street, Cape Town 8000

Tel: 0860 142 142

Fax: +27 21 483 7216

Email: service@westerncape.gov.za

Web: www.westerncape.gov.za/dept/

department-premier

Department of Agriculture

MEC: Mr Alan Winde

Admin Building, Muldersvlei Road, Elsenburg 7607

Tel: +27 21 808 5111 | Fax: +27 21 808 7605

Web: www.elsenburg.com

Department of Community Safety

MEC: Mr Dan Plato

35 Wale Street, Cape Town 8000

Tel: +27 21 483 6949/8588 | Fax: +27 21 483 6591

Web: www.westerncape.gov.za/dept/

community-safety

Department of Cultural Affairs and Sport

MEC: Ms Anroux Marais (Minister)

Protea House Building, 7th Floor, Greenmarket Square,

Cape Town 8000

Tel: +27 21 483 9503 | Fax: +27 21 483 9504

Web: www.westerncape.gov.za/dept/cas

Department of Economic Development

and Tourism

MEC: Mr Alan Winde

11th Floor, NBS Waldorf Building, 80 St George’s Mall,

Cape Town 8001

Tel: +27 21 483 5065 | Fax: +27 21 483 7527

Web: www.westerncape.gov.za/dept/edat

Western Cape Education Department

MEC: Ms Debbie Schäfer

Grand Central Towers, Lower Parliament Street,

Cape Town 8001

Tel: +27 21 467 2000

Fax: +27 21 467 2996

Web: http://wced.school.za

Department of Environmental Affairs

and Development Planning

MEC: Mr Anton Bredell

8th Floor, 1 Dorp Street, Cape Town 8000

Tel: +27 21 483 4091

Fax: +27 21 483 3016

Web: www.westerncape.gov.za/dept/eadp

Department of Health

MEC: Dr Nomafrench Mbombo

21st Floor, 4 Dorp Street, Cape Town 8000

Tel: +27 21 483 3245/5417

Fax: +27 21 483 6169

Web: www.westerncape.gov.za/dept/health

Department of Human Settlements

MEC: Mr Bonginkosi Madikizela

27 Wale Street, Cape Town 8001

Tel: +27 21 483 9482

Fax: +27 21 483 2589

Web: www.westerncape.gov.za/dept/

human-settlements

Department of Local Government

MEC: Mr Anton Bredell

8th Floor, Waldorf Building, 80 St George’s Mall,

Cape Town 8001

Tel: +27 21 483 4049/4997 | Fax: +27 21 483 4493

Web: www.westerncape.gov.za/dept/local-government

WESTERN CAPE BUSINESS 2017

126


LISTINGS

Department of Social Development

MEC: Mr Albert Fritz

Union House, 14 Queen Victoria Street, Cape Town 8001

Tel: +27 21 483 5045 | Fax: +27 21 483 4783

Web: www.westerncape.gov.za/dept/

social-development

Provincial Treasury

MEC: Dr Ivan Meyer

3rd Floor, 7 Wale Street, Cape Town 8000

Tel: +27 21 483 4237 | Fax: +27 21 483 3855

Web: www.westerncape.gov.za/dept/treasury

Department of Transport and Public Works

MEC: Mr Donald Grant

8th Floor, 9 Dorp Street, Cape Town 8000

Tel: +27 21 483 4813

Fax: +27 21 483 5068

Web: www.westerncape.gov.za/dept/tpw

Brandvlei

Britstown

Garies

De Aar

Kliprand

R 27

Loeriesfontein

Carnarvon

N10

R 63

N12

Hanover

N7

R63

R63

Nieuwoudtville

Victoria West

R 63

Williston

N1

Loxton

Richmond

R 27

R27

Calvinia

R27 Vanrhynsdorp

R63

Vredendal

Northern Cape

R27

Fraserburg

Three

Sisters

R 63

Graaff-Reinet

Lambert's Bay

Clanwilliam

Beaufort West

Aberdeen

R27

Sutherland

Cederberg

R 61

N12

N9

St Helena Bay

Citrusdal

Prince

Velddrif

Leeu-Gamka

Paternoster

Albert N1

Road

Eastern Cape

Vredenburg Piketberg

R44

R79

Saldanha

R45

N7

Klipplaat

Western Cape

Saldanha Bay

Moorreesburg

LangebaanR27

R45

R 44Tulbagh

Laingsburg

Prince Albert

Willowmore

Riebeek West

Matjiesfontein

R 46

Darling

Ceres Touwsrivier

Dassen Island

Calitzdorp

R62

N1

Ladismith

R43

Malmesbury

De Rust

R44

Uniondale

R45 Wellington Worcester

Oudtshoorn

R 62

Paarl

R62

N12

Melkbosstrand

Rawsonville Montagu

Joubertina

N9

R60

Robben Island (World Heritage Site)

R43

Table Bay

Franschhoek Robertson Ashton R62

Barrydale

Kareedouw

Durbanville

George SedgefieldKnysna

N2

CAPE TOWN

Villiersdorp Swellendam

Stormsrivier

Stellenbosch

Riversdale

Somerset

Genadendal

Herolds

Plettenberg

Bay

Fish Hoek West Grabouw

Heidelberg

Bay

N2 Riviersonderend

N2 Mossel Bay

Cape St Francis

Gordon's Bay

Vleesbaai

Simon's Town

Caledon

False R44

Cape Bay Kleinmond Hermanus

Stillbaai

INDIAN OCEAN

Point

Bredasdorp Cape St Sebastian

R 43

Infanta

Walker Bay

Bay

0

100 km

Gansbaai

Arniston

Struisbaai

0 100 miles

Struisbaai

Quoin Point

Cape

Agulhas

WESTERN CAPE PROVINCE

Groen

ATLANTIC OCEAN

N

Motorway

Main Road

Railway

Sout

Tankwa

Fish

Breede

Sak

Riet

Touws

Buffels

Dwyka

Groot

Gourits

Gamka

Leeuw

Olifants

Groen

Sout

Sout

Kariega

Ongers

Kouga

Groot

Seekoei

Sundays

127 WESTERN CAPE BUSINESS 2017


LISTINGS

Western Cape Local Government

A guide to the metropolitan, district and local municipalities in the Western Cape.

CITY OF CAPE TOWN

METROPOLITAN MUNICIPALITY

Address: Civic Centre, Podium Block, 6th Floor, 12 Hertzog

Boulevard, Cape Town 8000

Tel: +27 21 400 1300 | Fax: +27 21 400 1313

Website: www.capetown.gov.za

CAPE WINELANDS DISTRICT MUNICIPALITY

Address: 46 Alexander Street, Stellenbosch 7599

Tel: +27 21 888 5100 | Fax: +27 23 342 8442

Website: www.capewinelands.gov.za

Breede Valley Local Municipality

Tel: +27 23 348 2600 | Fax: +27 21 883 8871

Website: www.bvm.gov.za

Drakenstein Local Municipality

Tel: +27 21 807 4500 | Fax: +27 21 807 4645

Website: www.drakenstein.gov.za

Langeberg Local Municipality

Tel: +27 23 615 8000 | Fax: +27 23 615 1563

Website: www.langeberg.gov.za

Stellenbosch Local Municipality

Tel: +27 21 808 8111 | Fax: +27 21 808 8003

Website: www.stellenbosch.gov.za

Witzenberg Local Municipality

Tel: +27 23 316 1854 | Fax: +27 23 316 1877

Website: www.witzenberg.gov.za

CENTRAL KAROO DISTRICT MUNICIPALITY

Address: 63 Donkin Street, Beaufort West 6970

Tel: +27 23 449 1000

Fax: +27 23 415 1253

Website: www.skdm.co.za

Beaufort West Local Municipality

Tel: +27 23 414 8100

Fax: +27 23 414 8105

Website: www.beaufortwestmun.co.za

Laingsburg Local Municipality

Tel: +27 23 551 1019 | Fax: +27 23 551 1019

Website: www.laingsburg.gov.za

Prince Albert Local Municipality

Tel: +27 23 541 1320 | Fax: +27 23 541 1321

Website: www.princealbertmunicipality.com

EDEN DISTRICT MUNICIPALITY

Address: 54 York Street, George 6530

Tel: +27 44 803 1300

Fax: +27 86 555 6303

Website: www.edendm.co.za

Bitou Local Municipality

Tel: +27 44 501 3000

Fax: +27 44 533 6198

Website: www.plett.gov.za

George Local Municipality

Tel: +27 44 801 9111 | Fax: +27 44 801 9105

Website: www.george.gov.za

Hessequa Local Municipality

Tel: +27 28 713 8000 | Fax: +27 86 713 3146

Website: www.hessequa.gov.za

Kannaland Local Municipality

Tel: +27 28 551 1023 | Fax: +27 86 551 1766

Website: www.kannaland.gov.za

Knysna Local Municipality

Tel: +27 44 302 6300 | Fax: +27 44 302 6333

Website: www.knysna.gov.za

Mossel Bay Local Municipality

Tel: +27 44 606 5000 | Fax: +27 44 606 5062

Website: www.mosselbay.gov.za

Oudtshoorn Local Municipality

Tel: +27 44 203 3000 | Fax: +27 44 203 3104

Website: www.oudtmun.gov.za

WESTERN CAPE BUSINESS 2017

128


LISTINGS

OVERBERG DISTRICT MUNICIPALITY

Address: 26 Long Street, Bredasdorp 7280

Tel: +27 28 425 1157

Fax: +27 28 425 1014

Website: www.odm.org.za

Cape Agulhas Local Municipality

Tel: +27 28 425 5500 | Fax: +27 28 425 1019

Website: www.capeagulhas.gov.za

Overstrand Local Municipality

Tel: +27 28 313 8000 |

Fax: +27 28 312 1894

Website: www.overstrand.gov.za

Swellendam Local Municipality

Tel: +27 28 514 8500

Fax: +27 28 514 2694

Website: www.swellenmun.co.za

Theewaterskloof Local Municipality

Tel: +27 28 214 3300

Fax: +27 28 214 1289

Website: www.twk.org.za

WEST COAST DISTRICT MUNICIPALITY

Address: 58 Long Street, Moorreesburg 7310

Tel: +27 22 433 8400 | Fax: +27 86 692 6113 (SA only)

Website: www.westcoastdm.co.za

Bergrivier Local Municipality

Tel: +27 22 913 6000 | Fax: +27 22 913 1406

Website: www.bergmun.org.za

Cederberg Local Municipality

Tel: +27 27 482 8000 | Fax: +27 27 482 1933

Website: www.cederbergmunicipality.co.za

Matzikama Local Municipality

Tel: +27 27 201 3300 | Fax: +27 27 213 3238

Website: www.matzikamamun.co.za

Saldanha Bay Local Municipality

Tel: +27 22 701 7000 | Fax: +27 22 715 1518

Website: www.sbm.gov.za

Swartland Local Municipality

Tel: +27 22 487 9400 | Fax: +27 22 487 9440

Website: www.swartland.org.za

Municipalities in the Western Cape

WCDMA01

Northern Cape

Metropolitan/District Municipality

Boundary

Local Municipality Boundary

District Municipality

Local Municipality

Eden

Oudtshoorn

Matzikama

WCDMA05

Cederberg

Beaufort West

West Coast

Central Karoo

Bergrivier

WCDMA02

Saldanha

Bay

Swartland

City of

Cape Town

Metropolitan

Municipality

ATLANTIC OCEAN

Witzenberg

Cape Winelands

Breede Valley

Drakenstein

Langeberg

Stellenbosch

Theewaterskloof

Swellendam

Overberg

Cape Agulhas

WCDMA03

Overstrand

Laingsburg

Kannaland

Hessequa

Prince Albert

Oudtshoorn

WCDMA04

Eden

George Knysna Bitou

Mossel Bay

INDIAN OCEAN

Eastern Cape

129 WESTERN CAPE BUSINESS 2017


INDEX

INDEX

Accelerate Cape Town.......................................................................................................................................................................... 38 - 41

Air Products........................................................................................................................................................................................................91, IBC

Atterbury................................................................................................................................................................................................................34

Beyerskloof........................................................................................................................................................................................................... 78

Breede-Gouritz Catchment Management Agency...................................................................................................................... 96

Cape Chamber of Commerce & Industry....................................................................................................................................... 2, 22, 58

Cape Town International Convention Centre (CTICC) ........................................................................................................................ 32

College of Cape Town.................................................................................................................................................................................. 5, 64

Formatube.............................................................................................................................................................................................................. 102

Invest Cape Town............................................................................................................................................................................................... 36

Masisizane Fund................................................................................................................................................................................................ 26

Nedbank.............................................................................................................................................................................................................. 45 - 49

Old Mutual.......................................................................................................................................................................................................... 50 - 55

Petroleum Agency South Africa.................................................................................................................................................................. 89

Pioneer Fishing...................................................................................................................................................................................................... 84

Seascape ............................................................................................................................................................................................................... 102

Selfmed ............................................................................................................................................................................................................ 66, OBC

South Africa Table Grape Industry (SATI)....................................................................................................................................... 80 - 82

Standard Bank Western Cape...............................................................................................................................................................112 - 116

Unemployment Insurance Fund (UIF) ........................................................................................................................................................ 7

Wesgro...................................................................................................................................................................................................................18 - 21

West Coast District Municipality.................................................................................................................................................................. IFC

Western Cape Business Opportunities Forum (WECBOF)......................................................................................................... 24

Western Cape Department of Economic Development and Tourism................................................................................10, 70

WESTERN CAPE BUSINESS 2017

130


Service that

delivers the

Difference

Air Products South Africa (Pty) Limited manufactures, supplies and distributes a diverse

portfolio of atmospheric gases, specialty gases, performance materials, equipment and services

to the Southern African region.

Air Products touches the lives of consumers in positive ways every day, and serves customers

across a wide range of industries from food and beverage, mining and petrochemicals, primary

metal and steel manufacturers, chemical applications, welding and cutting applications to

laboratory applications.

Founded in 1969, Air Products South Africa has built a reputation for its innovative culture,

operational excellence and commitment to safety, quality and the environment. In addition the

company aims to continue its growth and market leadership position in the Southern African

region.

www.airproducts.co.za


Breakup

with your

medical aid.

PLEASE STAY.

We’ll give you more points,

movie tickets and a gym

subscription.

SORRY,

I just want medical aid.

I’m changing to Selfmed.

SMS “business”

to 45738 today

and we’ll

phone you.

www.selfmed.co.za

Affordable, reliable,

medical aid, since 1965

/ selfmed medical scheme

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!