The 2017 edition of Eastern Cape Business is the 10th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Eastern Cape Province. The Eastern Cape enjoys an abundance of natural and human resources, as well as established industrial infrastructure that drives the economy of the province. This includes three ports and two industrial development zones which are home to a wide range of manufacturers and exporters.
The 2017 edition includes an in-depth look at the province’s two Industrial Development Zones, a focus on skills development and investment climate information from the Nelson Mandela Business Chamber and the Border-Kei Chamber of Business.
EASTERN CAPE
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE EASTERN CAPE PROVINCE
2017 EDITION
JOIN US ONLINE
WWW.EASTERNCAPEBUSINESS.CO.ZA
Managing the region’s
water resources
How badly has the Eastern Cape been affected by drought and what is Amatola
Water doing to mitigate these effects?
Although the water sector has had a difficult time due to the prolonged drought, fortunately
Amatola Water’s area of supply has been blessed with sufficient rain and dam levels remained
full at between 95-100%. The water crisis has affected some areas in the Eastern Cape and those
municipalities are being guided by the Drought Disaster Plan in order to cope with the conditions.
Lefadi Makibinyane
Lefadi Makibinyane is the Chief Executive
Officer of Amatola Water. He joined Amatola
Water in February 2015 from the Consulting
Engineers South Africa (CESA), where he also
served as CEO.
Makibinyane is an accomplished engineer
and executive, having worked in various leadership
positions in both public and corporate
institutions, including the City of Tshwane
Metropolitan Municipality, Fieldstone Africa,
the Industrial Development Corporation of
South Africa (IDC), South African Breweries
(SAB) and SASOL, among others.
He holds an Honours Degree in Chemical
Engineering from the University of Teesside,
Middlesbrough, in the United Kingdom, a Post-
Graduate Certificate in Project Management
as well as Masters in Business Leadership from
the University of South Africa’s School of Business
Leadership, in Pretoria. He also serves
as a non-executive director on the Boards of
Rand Water, the Construction Industry Development
Board (CIDB), the Gauteng Partnership
Fund and also as a member of the
Presidential BBBEE Advisory Council.
Please describe the main highlights that Amatola Water achieved in the past
financial year.
We were very proud to be appointed as implementing agent for the Nooitgedacht/Coega lowlevel
project in the Nelson Mandela Bay Metropolitan Municipality as well as the Amathole dry
sanitation project. Ongoing projects where we effectively implemented strategic water and
sanitation schemes include the King Sabata Dalindyebo Presidential Intervention (water and
waste-water infrastructure upgrade), the Makana Right of Use (RoU) project, the Ndlambe
Regional Bulk Water Supply, the Nahoon-East Coast Bulk Supply Pipeline and the upgrades of
Amatola Water plants. In addition, we achieved:
• 98% compliance to SANS Class 1 potable water standards
• 100% assurance of supply to our customers
• 11.98% against a target of 12% with regard to production and network losses.
This minimised environmental, financial and social impacts of losses and unaccounted
for water.
In recording an 18% increase in revenue, we were also pleased to say that we supported
qualifying small enterprises, emerging micro-enterprises and black-owned businesses. A clean
audit was achieved.
What are some of the key challenges facing the utility’s successful operation in
the next few years?
Being geographically limited in terms of the Government Gazette of 1997 means it is difficult to
grow the business. However, when water crises happen we step in as per ministerial directives
as an implementing agent to develop infrastructure or to operate or maintain water treatment
works. This pushes up our operational costs, which are well above the national norm.
We support the long-term strategy of the Department of Water and Sanitation, namely the
Institutional Reform and Realignment (IRR) which includes the transfer of strategic and specific
assets to regional water boards such as Amatola Water.
Could you expand on the competition issues between water utilities and municipalities
as bulk water suppliers?
The competition that exists poses a long-term challenge to the implementation of the IRR
strategy, which seeks to establish regional water utilities to improve the scale and effectiveness
of water service delivery. As the only water board in the Eastern Cape, Amatola Water could best
serve by providing a bulk water service to the entire province. Municipalities would then be
able to focus on the water reticulation network and, in so doing, improve the quality of service
delivery to residential, industrial and commercial users.
Amatola t:HhAAU:(d wde,,1,, k / .. .L
wa1er,11manz1 - v7· v
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LEADING SUSTAINABLE BULK
WATER SERVICES IN THE
As an essential services utility, Amatala Water is committed ta contributing to the soclo·economic development of the
Eastern Cape Province through the provision of sustainable bulk potable water and sanitation services.
Ta ensure universal access ta basic water supply, Amatala Water is upgracing the design standards al its water supply
schemes and related bulk intraslructure to 750 lltres per household per day, in line with the Intent al the Nattonal Development
Plan, al aimed at improving the qualHy al lffe of aver 76 000 households in the region.
Amalola Hause
6 Lancaster Road, Vincent, East Landon
Tel: (043) 707 3700
aw@amatolawater.co.za
www.amatolawater.co.za
CONTENTS
CONTENTS
Eastern Cape Business 2017 Edition
Introduction
Foreword5
A unique guide to business and investment in the
Eastern Cape.
The Eastern Cape Development Corporation 6
A province offering exciting investment opportunities.
Special features
Regional overview of the Eastern Cape 8
With massive new investments in the automotive sector,
renewable energy and agri-processing, the Eastern Cape is set
to expand on its strengths and create new opportunities in the
Oceans Economy.
The maritime economy is building momentum 12
Port Elizabeth hosted the “Investing in Blue Economy”
conference in 2016.
Special Economic Zones 14
New sectors such as renewable energy and aquaculture
are attracting investors to the Eastern Cape’s industrial
development zones.
Skills development 22
Skills training is a top priority for Eastern Cape manufacturers
and colleges.
Economic sectors
Agriculture 32
Agriculture underpins several sectors of the economy of the
Eastern Cape.
Forestry 36
The private sector is working with community land owners to
boost timber production.
Aquaculture 37
Fish from the Karoo will soon be a popular dish.
EASTERN CAPE BUSINESS 2017
2
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
CONTENTS
Agri-processing 38
Manufacturers are harvesting the Eastern Cape’s excellent
produce.
Manufacturing 40
From eye drops to dog food, the Eastern Cape has diverse
manufacturing opportunities.
Automotive 42
Vehicles and components anchor manufacturing in
the Eastern Cape.
Energy 44
Gas and renewable energy are creating a new
energy landscape.
Water 46
The Eastern Cape is tackling water shortages through
new dams and improved controls.
Information and communication technology 50
Incubators and laboratories are boosting innovation.
Banking and finance 52
Formal banking is expanding its reach into rural areas.
Development finance and SMME support 54
Seed money is available for forestry ventures and much more.
Tourism 56
Events and adventures are drawing more visitors to the
Eastern Cape.
Government
Eastern Cape Provincial Government 60
Eastern Cape Local Government 61
References
Sector contents 28
Index64
Maps
Eastern Cape Regional map 11
Eastern Cape Municipal map 63
Free State
LESOTHO
KwaZulu-
EASTERN CAPE PROVINCE
Rouxville Zastron
Matatiele Natal
Britstown
Bethulie
Ixopo
R56
N12 De Aar
Mount
Aliwal North
Colesburg Oviston
Lady Grey
Mount Kokstad
Northern Cape
R58
Fletcher
Ayliff
Burgersdorp
Port Edward
Hanover
Jamestown Barkly
R61
N10
East Maclear Mount Frere
N1
Steynsburg
N6 Dordrecht
N2
Victoria West
R56
Middelburg
Molteno
Elliot
Lusikisiki
Indwe
Hofmeyr
Mthatha
Three Sisters
Queenstown
Port St Johns
R61
Western Cape
Tsomo
Tarkastad
Coffee Bay
Beaufort West Graaff-Reinet
Cradock
Sada Cathcart
N
R61
R63 Somerset
Aberdeen
Stutterheim
Butterworth
Pearston East Adelaide Fort
Komga
N9
Beaufort
Cookhouse
Bhisho N2
Klipplaat
Rietbron
N10
King William's
Town EAST LONDON
Willowmore
Kirkwood
Grahamstown
Steytlerville
Paterson
N2
Hamburg
INDIAN OCEAN
Uniondale
R72
Joubertina
N9
Uitenhage
Port Alfred
Motorway
Knysna N2
Humansdorp
Main Road
Kareedouw
PORT ELIZABETH
Railway
Plettenberg Bay
Jeffreys Bay
EASTERN CAPE BUSINESS 2017
4
CREDITS
Publisher: Chris Whales
Publishing director: Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Colin Carter
Production: Lizel Olivier
Ad sales: Sydwell Adonis, Nigel
Williams, Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Siyawamkela Sthundawho and
Jeremy Petersen
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
manager: Edward MacDonald
Printing: FA Print
CREDITS
Eastern Cape Business
A unique guide to business and investment in the Eastern Cape.
The 2017 edition of Eastern Cape Business is the 10th issue of this
highly successful publication that, since its launch in 2006, has
established itself as the premier business and investment guide
to the Eastern Cape province.
The Eastern Cape enjoys an abundance of natural and human
resources, as well as established industrial infrastructure that drives the
economy of the province. This includes three ports and two industrial
development zones which are home to a wide range of manufacturers
and exporters.
The 2017 edition includes an in-depth look at the province’s two
Industrial Development Zones, a focus on skills development and
investment climate information from the Nelson Mandela Business
Chamber and the Border-Kei Chamber of Business.
To complement the extensive distribution of the print edition of the
magazine, the e-book can also be viewed online at www.easterncapebusiness.co.za.
Updated information on the Eastern 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
DISTRIBUTION
Eastern Cape Business is distributed internationally on outgoing
and incoming trade missions, through The Eastern
Cape Development Corporation (ECDC); to foreign offices in
South Africa’s main trading partners around the world; 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, trade
and investment agencies, provincial government departments,
municipalities and companies, as well as major airport lounges.
COPYRIGHT | Eastern 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. CREDITS | Cover: Transnet National Port Authority’s
tugboats Qunu and Mvezo at work in Port Elizabeth harbour. The tugboats are
part of a new fleet of nine built in Durban and are named after Nelson Mandela’s
birthplace (Mvezo) and village in the Eastern Cape (Qunu). Pictures supplied
by flickr.com, Public Domain Images, Tsogo Sun, Wikimedia Commons, Afrox,
Merceedes Benz, VW South Africa, Elektawind, Getnews, SA Tourism, Nelson
Mandela Bay Tourism, Pixabay, FAW, Sovereign Foods, Siemens, Transnet
National Ports Authority, and Eastern Cape Technology Initiative.
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 1995-1310
DISCLAIMER | While the publisher, Global Africa Network
Media (Pty) Ltd, has used all reasonable efforts to ensure that
the information contained in Eastern 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.
5
EASTERN CAPE BUSINESS 2017
MESSAGE
The Eastern Cape
Development Corporation
A province offering exciting investment opportunities.
Discover the Eastern Cape economy, spanning
an exciting spectrum of sectors ranging from
agriculture to information, communication and
technology. The Eastern Cape is a province which
prides itself on a rich cultural history, first world
financial system, robust infrastructure and a wide
array of business opportunities for investors and
entrepreneurs.
The Eastern Cape Development Corporation has a
dual role as provincial development financier: to enable
local business through innovative financial and
non-financial services, and to promote the province,
locally and abroad. The ECDC’s Investment
Promotion unit is the first point of entry for local
and foreign investment into the Eastern Cape.
Competitive advantages
• The Eastern Cape boasts four universities offering
high-quality tertiary education. Eastern Cape
university graduates are in demand
• Through an integrated database system developed
by the province’s two industrial development
zones, potential investors have ready access to
skilled, semi-skilled and unskilled labour resources
• Two purpose-built industrial development
zones – the East London and Coega Industrial
Development Zones, which are strategically situated
on major transport and shipping routes,
provide purpose-built infrastructure for investors
• The Eastern Cape Provincial Government is
committed to economic diversification
• Set-up costs for new business in the Eastern Cape
are extremely competitive
• Access to domestic, SADC and global markets is
guaranteed through three ports and three airports
• The Eastern Cape boasts some of the best quality
of living standards in South Africa.
Key growth sectors
Automotive
The Eastern Cape auto industry manufactures half of
South Africa’s new passenger vehicles and provides
more than 50% of the country’s vehicle exports. The
province accounts for five original equipment manufacturers
and nearly 200 automotive component
suppliers.
Tourism
The Eastern Cape hosts a range of cultural, sports,
adventure and heritage tourism events including the
National Arts Festival in Grahamstown, the Half Ironman
in East London, the Iron Man in Port Elizabeth.
The Eastern Cape is the Home of Legends – birthplace
of world icon, Nelson Mandela. Geographic
tourist attractions include 800km of scenic coastline,
national parks, and the Baviaanskloof Mega
Reserve, which is the only location in South Africa
where seven of South Africa’s biomes can be found.
Investment opportunities exist in the development
of golf courses, hotels and resorts where inherent
tourism potential requires development. The sector
value chain presents opportunities for local enterprises,
including travel agencies, shuttle operators
and arts and craft producers.
Business process outsourcing
The primary BPO and Offshoring focus is on inbound
and outbound contact centres. The province offers
world-class infrastructure at the East London and
Coega IDZs. Investors can take advantage of the
availability of a large English-speaking workforce,
EASTERN CAPE BUSINESS 2017
6
MESSAGE
competitive labour costs and an established ICT
infrastructure.
Agriculture, agro-processing and
aquaculture
The Eastern Cape is a producer of high-quality dairy,
wool and mohair, game, mutton, beef, ostrich and
goat meat, chicory, pineapple, citrus and deciduous
fruit and several horticultural products. The province
is also making its mark in areas of new production
such as berries, essential oils, macadamia and pecan
nuts, sweet sorghum and soya beans for bio-fuel and
animal feed, as well as cassava and pineapple. Niche
opportunities exist in the freshwater and marine
environments.
Energy
The Eastern Cape is rich in primary energy resources
such as wind, solar, hydro and bio-energy. It is a province
that boasts 300 days of sunshine. Unsurprisingly,
the province has captured the majority of the successful
wind farm applications under the first rounds
of the National Energy Regulator of South Africa
(NERSA) assessments. Areas of opportunity include
the manufacturing of renewable technologies and
components, the supply of raw materials, and the
harvesting of solar, wind, hydro, biogas and biomass
resources.
ECDC services
• The Investment and Trade Promotion unit of the
ECDC assists investors in taking advantage of the
Eastern Cape’s compelling investment prospects
through identifying and accessing business opportunities
within key sectors.
• Identifying and packaging investment and
business opportunities.
• Identifying opportunities for joint ventures with
local partners.
• Advice on, and assistance with location decisions
• Providing a professional and relevant after-care
service to all investors.
• Assisting investors to access investment incentive
schemes. These range from manufacturing rebates
to preferential production factor costs.
• Assistance to companies with export readiness
assessment analysis.
• Access to national export incentive programmes
• Assist companies to be part of local and
international trade missions.
• Provide market sector intelligence on specific
regions.
CONTACT INFO
Head office:
East London | Tel: +27 43 704 5600
Port Elizabeth | Tel: +27 41 373 8260
Queenstown | Tel: +27 45 838 1910
Mthatha | Tel: +27 47 501 2200
Satellite offices:
King William’s Town | Tel: +27 43 604 8800
Mount Ayliff | Tel: +27 39 254 0584
Butterworth| Tel: +27 47 401 2700
Aliwal North | Tel: +27 51 633 3007
Email: invest@ecdc.co.za
Website: www.ecdc.co.za
7 EASTERN CAPE BUSINESS 2017
A REGIONAL OVERVIEW OF THE
EASTERN CAPE
PROVINCE
With massive new investments in the automotive sector, renewable energy and agriprocessing,
the Eastern Cape is set to expand on its strengths and create new opportunities
in the Oceans Economy.
The largest mall to be constructed in South
Africa since 2004 has opened in Port
Elizabeth. The Bay West Mall is a sign of
confidence in the Eastern Cape economy.
Other major investments in the automotive sector
(by established players such as Volkswagen SA
and Mercedes-Benz SA and by two large Chinese
concerns) and in energy (wind and gas generation)
are the cause of this optimism. The agri-processing
sector continues to attract new investments, such
as Famous Brands’ new tomato paste factory at the
Coega Industrial Development Zone.
With 250 shops, an ice rink and cinemas, the
R2-billion Bay West Mall is the first part of what will
become the 320ha Baywest City Precinct on the
western edge of Port Elizabeth. It is a regional facility
that is attracting shoppers from towns such as
Jeffrey’s Bay and Humansdorp, but the long-term
plan envisages an entire city being developed on
the site. Abacus Asset Management and the Billion
Group are the joint developers. The Billion Group
is led by Sisa Ngebulana who made his start in
property in East London. Billion’s other Eastern
Cape asset is the BT Ngebs Mall in Mthatha.
The Oceans Economy at this stage is an idea,
but it is an idea with massive potential. National
government has several programmes to promote
ship-building and repair, aquaculture, offshore oil
and gas, marine protection and governance, and
marine transport and manufacturing. The Nelson
Mandela Metropolitan University (NMMU) is building
an Oceans Campus and already has several
research chairs studying this potentially very lucrative
field.
The province’s coastlines stretches along
800km and it has three ports and two associated
industrial development zones geared to attracting
investments in new sectors. The Port of Port
Elizabeth took delivery of two new tugs in 2016,
part of a R1.4-billion plan by Transnet National
Ports Authority to increase efficiency at South
Africa’s harbours.
Two major airports at Port Elizabeth and
East London provide good air links and smaller
towns such as Mthatha and Bhisho have airports.
Mthatha has recently received upgrades and SA
Express announced in 2016 five direct flights per
week to and from Cape Town.
EASTERN CAPE BUSINESS 2017
8
SPECIAL FEATURE
The Umzimvubu Multipurpose Development
Project is an impressive development that incorporates
a multi-purpose dam to supply water for new
irrigation, hydropower generation and domestic
water supply.
The Eastern Cape Development Corporation is
a development financier and it is supporting enterprises
in the growing ICT and film sectors through
the Eastern Cape Information Technology Initiative
(ECITI).
Economy
Both the of the province’s metropolitan municipalities
are centres of manufacturing and have their own
industrial development zones. The East London
Industrial Development Zone (ELIDZ) is very strong
in the automotive components sector, with several
companies providing services to Mercedes-Benz SA.
Mercedes-Benz exports its cars out of the Port of East
London and the factory, which regularly wins quality
accolades, manufactured its one-millionth vehicle in
2015.
East London also has manufacturing capacity in
food and beverages (Nestlé, Cadburys), pharmaceuticals
(Aspen), packaging (MPact) and batteries (First
National Batteries). Summerpride Foods make pineapple
juice, a speciality of the province.
The Coega IDZ (CIDZ) is served by the Port of
Ngqura and is close to Port Elizabeth. The biggest
news for CIDZ in 2016 was the announcement of an
R11-billion investment by Chinese state auto manu-
facturer Beijing Automobile Corporation (BAIC) and
South Africa’s Industrial Development Corporation.
This follows the R600-million investment of First
Automotive Works (FAW), also a Chinese enterprise.
Famous Brands has made its second investment into
CIDZ, adding a tomato paste factory to its dairy.
The Dedisa gas-fired power plant started operating
at CIDZ in 2016, and national government
announced that Coega would be one of the sites
for a 1 000MW Liquefied Natural Gas (LNG) plant.
The value to the regional economy of the latter project
is estimated at R25-billion.
The Eastern Cape has been the destination of
choice for renewable energy investors. A quarter of
the projects so far approved in the national private
producers’ programme have been allocated to the
Eastern Cape, mostly in wind energy.
One of the greatest strengths of Eastern Cape
manufacturing is in automotive and automotive
parts. With Mercedes-Benz SA in East London,
Port Elizabeth is home to Volkswagen SA, General
Motors, Ford (engines) and component manufacturers
like Goodyear, Continental Tyre SA, SJM Flex SA,
Bridgestone, Halberg Guss and Shatterprufe. Port
Elizabeth is a leader in the manufacture of catalytic
converters where Corning, BASF, Formex, Umicore
Catalyst, Eberspacher and Tenneco South Africa are
some of the companies in the field.
Geography
The Eastern Cape extends over 169 580 square kilometres,
representing 13.9% of South Africa’s land mass.
The dry western interior is one of the country’s premier
sheep-rearing destinations.
The mountainous regions of the north and east
of the province support timber plantations while
the coastal belt in the south-west is well-watered
and is good for dairy farming. The province has
spectacular beaches stretching from the surfer’s
paradise at Jeffrey’s Bay all the way to the famed
Wild Coast.
The province has a strong agricultural base. Aside
from being one of the world’s major sources of mohair,
the province offers perfect farming conditions
for a wide range of produce. The fertile Langkloof
9 EASTERN CAPE BUSINESS 2017
SPECIAL FEATURE
Valley in the southwest has enormous deciduous
fruit orchards, the Alexandria and Grahamstown area
produces pineapples, chicory and dairy products. It
is the leading livestock province in terms of numbers
and supplies a quarter of South Africa’s milk.
Tourism is a major growth industry with a growing
number of national and international events taking
place in the province. Events such as the Ironman
World Championship, to be held in Port Elizabeth in
2018, make a big economic impact.
The Addo Elephant National Park is the largest of
the province’s four national parks and there are more
than a dozen provincial parks and a large number of
upmarket private game farms, lodges and reserves.
The province’s beaches and waves are very popular,
with adventure tourism attracting tourists wanting
to go on 4x4 trails, jump off bridges or fly micro-light
aircraft. The National Arts Festival, held annually in
Grahamstown, attracts huge crowds for 11 days, even
in the midst of winter.
PE plans
The big new retail development in Port Elizabeth’s
western suburbs has spurred a R300-million upgrade
at Greenacres, the city’s first big mall development
which attracted shoppers away from the
central business district (CBD) in 1981. Even the CBD
itself has received an overhaul. The old Main Street,
renamed Govan Mbeki Avenue, was turned by the
Mandela Bay Development Agency (MBDA) into a
useful and pedestrian-friendly precinct.
The MBDA is also behind the most recent change
to the city’s landscape. There has been a total transformation
of the Old Tramway building at the entrance
to the Baakens Valley, near the yacht basin of
the Port of Port Elizabeth. The MBDA has not only
moved into new offices in the renovated building,
but is letting it out as an events venue. Other retail
property developments have happened in the valley
(including a popular brewery), drawing attention
to the potential of Port Elizabeth’s green lung to be
even more useful in future.
A scheme to restructure the yacht basin in the
harbour has been on the books for some time. A
key blockage is the location of manganese storage
dumps on the edge of King’s Beach. When those are
moved to the Port of Ngqura, as is planned, then the
marina development can go ahead. A cruise liner
terminal could also form part of this development.
The Baakens River Valley is one of Port Elizabeth’s
hidden gems and the MBDA has commissioned
studies on how the valley might best be utilised for
leisure and new housing without compromising its
unique natural features.
Alfred Nzo District Municipality
Towns: Matatiele, Mount Frere, Mount Ayliff
The smallest district is located in the mountainous
north-east, with hiking trails for tourists. There is
tremendous scope for expansion of tourist activities,
and a transfrontier park between South Africa
and Lesotho could boost the area’s economy.
Subsistence agriculture and forestry are the major
economic activities.
Amathole District Municipality
Towns: Cathcart, Stutterheim, Morgan’s Bay,
Willowvale, Butterworth, Mazeppa Bay, Alice,
Bedford
The rural Amathole District surrounds the metropolitan
area of Buffalo City. Pineapple and forestry
are two of the most important agricultural activities.
Popular resorts on the Wild Coast attract many
tourists to the area. Hogsback and other towns near
the Amatole Mountains offer beautiful scenery and
popular beaches. The main campus of the University
of Fort Hare is located at Alice.
Sarah Baartman District Municipality
Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay,
Grahamstown
The western part of the province contains the biggest
municipality and is one of the biggest contributors to
provincial GDP. Large commercial farms in the Karoo
produce high-quality meat, wool and mohair, while
the coastal belt has dairy farming and some forestry.
The Kouga Valley is a big deciduous fruit producer,
while the Kirkwood/Addo area is known for its citrus.
Sarah Baartman has three of the region’s national
parks and several private game farms. Grahamstown
hosts the National Arts Festival, Rhodes University
and a number of fine schools.
EASTERN CAPE BUSINESS 2017
10
SPECIAL FEATURE
Chris Hani District Municipality
Towns: Middelburg, Molteno, Dordrecht, Cradock,
Queenstown, Lady Frere, Elliot
Sheep farming is an important part of the economy.
Some coal is found in the north and tourist activities
include fly-fishing. The Foodcorp factory in Molteno
manufactures Ouma rusks. Queenstown is a centre
for cattle farming and has some manufacturing
activities. The Mountain Zebra National Park is near
Cradock. The Grootfontein Agricultural College and
Research Station is in Middelburg, and the Marlow
Agricultural College is near Cradock.
OR Tambo District Municipality
Towns: Mthatha, Coffee Bay, Port St Johns, Qumbu,
Bizana, Flagstaff
OR Tambo District Municipality encompasses some
of the province’s least-developed areas, and contains
one of South Africa’s most important ecological
areas, the Pondoland Centre of Plant Endemism.
Mining is already pursued in some areas, but plans
for titanium mining on seaside dunes are being contested.
A Wild Coast Spatial Development Initiative
exists to plot further development. Forestry is a
big employer.
Joe Gqabi District Municipality
Towns: Aliwal North, Burgersdorp, Lady Grey,
Rhodes, Barkly East, Ugie
Cattle and sheep farming make up 80% of land use,
while commercial forestry is a big contributor to
employment. There are large forestry plantations
at Ugie and Mount Fletcher. Maize is grown along
the Orange River and wheat in the foothills of the
Drakensberg mountains. Tiffindell has been revived
as a ski resort.
EASTERN CAPE PROVINCE
Free State
LESOTHO
KwaZulu-
Natal
Rouxville Zastron
Matatiele
Britstown
Bethulie
Ixopo
R56
N12 De Aar
Mount
Aliwal North
Colesburg Oviston
Lady Grey
Mount Kokstad
Northern Cape
R58
Fletcher
Ayliff
Burgersdorp
Port Edward
Hanover
Jamestown Barkly
R61
N10
East Maclear Mount Frere
N1
Steynsburg
N6 Dordrecht
N2
Victoria West
R56
Middelburg
Molteno
Elliot
Lusikisiki
Indwe
Hofmeyr
Mthatha
Three Sisters
Queenstown
Port St Johns
R61
Western Cape
Tsomo
Tarkastad
Coffee Bay
Beaufort West Graaff-Reinet
Cradock
Sada Cathcart
N
R61
R63 Somerset
Aberdeen
Stutterheim
Butterworth
Pearston East Adelaide Fort
Komga
N9
Beaufort
Cookhouse
Bhisho N2
Klipplaat
Rietbron
N10
King William's
Town EAST LONDON
Willowmore
Kirkwood
Grahamstown
Steytlerville
Paterson
N2
Hamburg
INDIAN OCEAN
Uniondale
R72
Joubertina
N9
Uitenhage
Port Alfred
Motorway
Knysna N2
Humansdorp
Main Road
Kareedouw
PORT ELIZABETH
Railway
Plettenberg Bay
Jeffreys Bay
11 EASTERN CAPE BUSINESS 2017
The maritime economy is
building momentum
Port Elizabeth hosted the “Investing in Blue Economy” conference in 2016.
The Eastern Cape is perfectly positioned to take
advantage of the new interest in developing a
maritime economy. The province has 800km
of coastline, three ports, two industrial development
zones geared to attracting investments in
new sectors and an academic community geared to
maritime research.
A national plan called the Oceans Economy has recently
been launched and the ports of East London,
Port Elizabeth and Ngqura naturally feature prominently
in these strategies for exploiting the coastline
and the opportunities offered by busy shipping lines
along the eastern seaboard.
The first manifestation of national commitment to
the strategy came late in 2016 with the allocation by
the Department of Energy of two Liquefied Natural
Gas (LNG) plants. One option for private investors
to build and operate such a plant is at the Port of
Richards Bay in KwaZulu-Natal. The other option (to
which 1 000MW has been allocated) is the Port of
Ngqura, at the Coega Industrial Development Zone
(CIDZ). This signifies that port IDZs are a key plank
in national energy policy, and that ties in with the
Oceans Economy plan.
Both IDZs have aquaculture sections and are keen
to attract investors in this sector. The East London IDZ
already has investors such as Pure Ocean Aquaculture
and Ocean Wise. Zone 10 has been set aside within
the Coega IDZ for marine farming. Fish such as Dusky
Kob and abalone and seaweed are all attractive
options for enterprises.
The Oceans Economy forms part of the broader
Operation Phakisa, a plan that targets sectors that can
best achieve quick returns in terms of growth and
job creation. Phakisa falls under the Department of
Planning, Monitoring and Evaluation. The four target
areas within the maritime strategy are: aquaculture;
offshore oil and gas; marine protection and governance;
marine transport and manufacturing.
The untapped potential that passes South Africa’s
coast is immense. This includes the fact that South
Africa does maintenance on only 5% of the 13 000
vessels that use SA ports and services 4-5% of the
approximately 130 rigs that pass along the coast
each year.
Oil and gas appear to hold the most potential,
and the gas plant plans for Coega and the prospect
of a manganese smelting facility being established in
the same IDZ suggest that this kind of energy-hungry
industrial activity could hold good prospects for
the Eastern Cape. Ngqura and East London are well
positioned to act as container transit points: ships
EASTERN CAPE BUSINESS 2017
12
SPECIAL FEATURE
from the east offloading their containers destined
for destinations in the Americas rather than taking
them all the way there, for the containers to be picked
up by other ships.
The capabilities of the region’s workforce, particularly
in the automotive and automotive parts sector,
could be attractive to repairers and manufacturers
in marine sub-sectors.
Coastal research capabilities
The Phakisa strategy envisages that Technical
Vocational Education and Training (TVET) colleges
will largely be responsible for developing skills
in the maritime sector but the Nelson Mandela
Metropolitan University (NMMU) in Port Elizabeth is
positioning itself to play a critical role.
In June 2016 a seminar was arranged by the
Oceans Economy Secretariat, under the Department
of Environmental Affairs. With the aim of creating a
“national maritime cluster”, the event was co-hosted
by NMMU, the South Africa Maritime Safety Authority
(SAMSA), the South African International Maritime
Institute (SAIMI) and the Norwegian Embassy in
Pretoria.
Norwegian diplomats, experts and business
leaders were on hand to share their expertise in the
maritime economy, a central part of the Norwegian
experience. Sectors represented included cargo,
shipping, marine manufacturing, finance institutions,
academia, government and potential
investors.
In September 2016 the university hosted the inaugural
South African Oceans Economy Symposium.
The conference was called “Investing in blue growth
and sustainable solutions for Southern Oceans:
Lessons from Nordic countries”.
A direct spin-off from this conference was the
visit later in the year of a delegation of Finnish and
Estonian diplomats and business leaders, eager to
find out more about investment opportunities in the
Nelson Mandela Bay metro and in the Eastern Cape.
NMMU is creating a campus for Ocean Sciences
and already has several institutions and research
chairs in place. These include a unit aimed at combating
sea fisheries crime (FishFORCE, with support
from Norway) and the South African International
Maritime Institute. The university has four marine
sector chairs funded by the South African Research
Chair Initiative (SARChI) and the National Research
Foundation (NRF):
• Marine Spatial Planning (ocean zoning)
• Shallow Water Ecosystems (including rare coastal
rock pools)
• Ocean Sciences and Food Security (with
Southampton University)
• Law of the Sea (including oil resource management,
port law and marine tourism law).
Transnet’s Maritime School of Excellence offers
specialised training at four campuses across South
Africa, one of which is in Port Elizabeth. In 2016, 81
students graduated from the Eastern Cape facility
and can now be deployed to Transnet Port Terminals
or Transnet National Ports Authority facilities.
Transnet has been intensifying its training
programmes in recent years. Training is offered
in port engineering, terminal operations,
marine operations, port management and
other specialised training specific to the marine
environment, including: marine pilots, tug
masters, engineers and crane and straddle-gantry
operators.
13 EASTERN CAPE BUSINESS 2017
SPECIAL FEATURE
Special Economic Zones
New sectors such as renewable energy and aquaculture are attracting investors to the
Eastern Cape’s Industrial Development Zones.
South Africa is investing in SEZs as a major
plank of its industrial development policy.
The aim is to attract new skills and develop
new industries. The Eastern Cape has two
such zones, the East London Industrial Development
Zone (supported by the Port of East London)
and the Coega Industrial Development Zone (at the
Port of Ngqura in the Nelson Mandela Metropolitan
Municipality).
Key goals behind the establishment of SEZs are:
• to encourage industries to develop in clusters,
leading to economies of scale, skills-sharing and
easier access for suppliers
• to create industrial infrastructure to promote
investment
• to promote cooperation between the public and
private sectors
• to use the zones as a launching pad for other
developments.
Special Economic Zones are created in terms
of the Special Economic Zones Act of 2014 (Act 16
of 2014). The act defines an SEZ as “geographically
designated areas of the country that are set aside for
specifically targeted economic activities, and supported
through special arrangements and systems
that are often different from those that apply to the
rest of the country”.
As of 2015/16, the regulatory framework began
to change for existing Industrial Development
Zones such as those that at East London (ELIDZ)
and Coega (CIDZ). There will be a three-year transition
period to SEZ status that will include SEZspecific
tax incentives and the introduction of
one-stop-shops for state services. The cumulative
effect should be to boost the attractiveness of
SEZs to foreign investors.
Apart from attracting foreign direct investment
(FDI) and boosting employment, SEZs can play a
role in helping to add new sectors or sub-sectors
to an economy.
For the Eastern Cape’s two industrial parks, this
has already started to happen with investors in
EASTERN CAPE BUSINESS 2017
14
SPECIAL FEATURE
renewable energy and aquaculture having built
their infrastructure and started trading. The skills
relevant to the automotive sector and the automotive
parts sector – huge elements of the Eastern
Cape economy – are transferable to renewable
energy manufacturing, or to ship-building.
Incentives include tax breaks from the South
African Revenue Service, subsidised interest rates
from the Industrial Development Corporation,
subsidies for employees earning below a certain
level and for training, incentives and grants from
the Department of Trade and Industry (dti) and
from national electricity utility Eskom. The SEZ is
also a Customs Controlled Area.
Within the dti’s Manufacturing Competitiveness
Enhancement Programme, there is a Green Energy
Efficiency Fund.
The national independent power suppliers’
programme, whereby private companies or consortiums
bid to build renewable energy plants,
has won international praise for its efficiency. The
Eastern Cape has been particularly attractive to
wind power producers. The Port of Ngqura’s ability
to receive the massive components of wind turbines
has been a boon to the project developers.
Coega IDZ hosts several solar and wind component
manufacturing facilities. Investors include
DCD Wind Towers and Electrawinds. ILB Helios
produces solar panels units at the ELIDZ.
Coega IDZ
The Coega IDZ is home to the gas-fired Dedisa
Peaking Power Plant and was named in 2016 as
the preferred site for a 1 000MW concession for a
Liquefied Natural Gas (LNG) plant. When a private
investor is found, Coega IDZ will have significant
new energy infrastructure.
Another potential game-changer is the possibility
that a manganese smelter could be built
at the IDZ. The Port of Port Elizabeth has for many
years exported manganese.
The recent announcement that the Port of
Ngqura will soon host a new liquid bulk handling
facility expands the perception that energy is becoming
a speciality for Coega. Transnet National
Ports Authority (TNPA) and Oiltanking Grindrod
Calulo have signed an agreement in this regard.
This will create a new tank farm for the Eastern
Cape when the lease for petroleum storage
facilities at the Port of Port Elizabeth expires.
In the 2015/16 period, the Coega Development
Corporation (which runs the IDZ) created 18 366
jobs through projects in the IDZ and its infrastructure
development programme elsewhere in the
province. Seventeen additional investors signed
up, valued at R26.9-billion. More than 96 000 jobs
have been created since the IDZ was launched.
The latest investment into the Coega IDZ is
from Beijing Automobile International Corporation
(BAIC), who will take a 65% stake in an R11-billion
joint venture with the Industrial Development
Corporation with the intention of producing 100
000 vehicles. First Automotive Works (FAW) has
already established a R600-million assembly plant
in Zone 2.
East London IDZ
The East London IDZ has a major dairy in Sundale,
a diamond cutting and polishing works in Matla
Diamond Works, and investors in steel, aquaculture
and solar panel manufacturing. It also has a strong
suite in logistics, with DHL Freight, UTi Logistics,
Milltrans and Bigfoot Express Freight all present in the
zone. But it is the presence of specialist logistics company,
Vehicle Delivery Service, which reveals the IDZ’s
strongest sector, automotive and automotive parts.
Within the IDZ is the Automotive Supplier
Park (ASP) which in turn is located in the Customs
Controlled Area within a 10km radius of Mercedes-
Benz South Africa, the East London Airport, the
highway and the Port of East London.
Feltex is represented by no fewer than six operations,
including Feltex Automotive Trim, Feltex
Fehrer (Mercedes-Benz seat pads and head rests)
and Feltex Trim and Caravelle Carpets.
Other automotive companies include RG BROSE
(doors), Boysen (exhaust systems), Automould,
TI Automotive Fuel Systems, Molan Pino
(polypropylene foam) and Yanfeng Automotive
Interiors.
15 EASTERN CAPE BUSINESS 2017
INTERVIEW
East London Industrial
Development Zone
The Chief Executive Officer of the ELIDZ, Mr Simphiwe
Kondlo, outlines the advantages available to investors.
Simphiwe Kondlo
BIOGRAPHY
Mr Simphiwe Nicholas Kondlo,
the Chief Executive Officer of
the ELIDZ, holds a Masters in
Engineering Management and
has more than 23 years’ experience
spanning various fields
including civil and agricultural
engineering. With him at the
forefront, the ELIDZ is a frontrunner
in the field and continues
to flourish as a multi-sector
Industrial Development Zone.
How far advanced is the ELIDZ in converting to a Special
Economic Zone?
We are currently going through the last phase of the process, which
involves gazetting by National Treasury. When this is finalised, existing
investors will be eligible to apply for new, SEZ specific incentives
which include:
• VAT and customs relief within a Customs-Controlled Area
• Employment tax incentive
• Reduced corporate income tax rate.
Do you welcome interest from any sector?
Our successful value proposition is based on a cluster approach with
customised sector-specific solutions. The ELIDZ is currently active in
the Automotive, Renewable Energy, Aquaculture and Agro-processing
sectors. The Special Economic Zones Programme offers incentives
for value-adding manufacturing sectors as well as tradable services.
The ELIDZ also has a research and development platform to help
industries through innovation and technology. The ELIDZ Science
and Technology Park (STP) tests and prototypes different technologies
and new inventions. Start-ups in the ELIDZ have access to various
innovation funders as well as the incubation process and facilities.
What are some of the most recent investments?
Since inception the ELIDZ has attracted more than R7.3-billion worth
of private sector investment from 45 investors. This is against a total
investment of R2-billion into the ELIDZ infrastructure by government.
Foreign Direct Investors account for 75% of the total investment
attracted (by value): 32% of the total investment (by value) is by
companies in the automotive sector.
In 2016/17, the ELIDZ achieved the following investment highlights:
• Six investors valued at R2.4-billion approved by the ELIDZ board
during 2016/17.
• Four investors valued at R1.059-billion, with a job potential of 1
567 signed agreements during 2016/17. (Pharmaceuticals, ICT &
Electronics, Energy, Waste-processing).
EASTERN CAPE BUSINESS 2017
16
PROFILE
The Nelson
Mandela Bay
Business Chamber
The heartbeat of business success in the region.
The Nelson Mandela Bay Business Chamber received a Diamond Arrow Award in 2016 for the fourth year
in a row.
The Nelson Mandela Bay Business Chamber is a Not
for Profit Company representative of a broad spectrum
of businesses in Nelson Mandela Bay. It is one of
the largest business associations in the Eastern Cape,
with a membership of approximately 700 businesses
in a diverse array of sectors.
“The Nelson Mandela Bay Business Chamber is a
leading catalyst for economic development. It has
been the heartbeat of business success in the region
for over 150 years. The Business Chamber is
driven by a team of dedicated staff and volunteers,
lobbying on issues affecting the ease of doing business
and companies’ sustainability. We offer networking
opportunities and value-added services,”
said Nelson Mandela Bay Business Chamber CEO
Kevin Hustler.
Vision
To be a leading catalyst for economic development
in Nelson Mandela Bay.
Mission
By influencing the factors and key stakeholders
that create a competitive enabling business
environment.
Task Teams
The Nelson Mandela Bay Business Chamber has
established a structure of six task teams to facilitate
the ease of doing business. The task teams
consist of business member volunteers who are
passionate about the sustainability of business in
the city of Nelson Mandela Bay.
EASTERN CAPE BUSINESS 2017
18
PROFILE
Known as the Action Arm of the Business Chamber,
the task teams have traditionally been the enablers
of creating an environment for business to grow in
and addressing factors which might inhibit business.
The six task teams of the Nelson Mandela Bay
Business Chamber are:
• Water Task Team
• Roads and Storm Water Task Team
• Electricity and Energy Task Team
• Transport and Logistics Task Team
• SME Task Team
• Metro Collaboration Task Team
Enterprise Development
If small businesses are the “engines” of our local
economy, then the Business Chamber’s Enterprise
Development Programme is the fuel that accelerates
the optimal performance of small businesses
based in Nelson Mandela Bay. The Nelson Mandela
Bay Business Chamber Enterprise Development
Programme was launched in 2014, to develop the
skills that enhance and grow small businesses. The
programme has been so successful that by 2017, over
100 SMEs (small to medium-sized enterprises) had
benefited from taking part in the four different phases
of the programme.
Events
Events at the Nelson Mandela Bay Business Chamber
keep business owners up to date and informed on a
wide variety of topics affecting business in Nelson
Mandela Bay. The Business Chamber hosts many
high-profile speakers who are experts in their fields,
ensuring that our events are relevant and valuable.
Regular networking functions offer business owners
the chance to make new professional contacts. Our
flagship events – the Annual Business Chamber Golf
Day, the Annual Ladies’ Breakfast and the Annual
Business Chamber Banquet – are highlights on the
Bay’s business and social calendar.
Publications and marketing
platforms
As another value-added service to members, the
Nelson Mandela Bay Business Chamber provides
members with a variety of publications across
print and electronic
platforms,
including
our quarterly
printed member
magazine,
Infocom, and the
printed annual
Business Guide.
Both of these
publications are
ABC-accredited,
glossy publications.
The electronic monthly newsletter The Good News provides
links to good news on the local business front.
The Business Chamber regularly updates its website,
and can be found on popular social media platforms
including Facebook, Twitter, LinkedIn and Instagram.
Certificates of Origin and
International Relations
A Certificate of Origin is a document which states
the origin of goods being exported and this “origin”
is a key requirement for applying tariffs and other
important criteria. As an accredited provider of this
service, the Nelson Mandela Bay Business Chamber
signs Certificates of Origin for member and nonmember
businesses requiring the services in Nelson
Mandela Bay. The Business Chamber also builds in
international relations to form a vital link between
business owners and international markets.
CONTACT INFO
Nelson Mandela Business
Chamber CEO Kevin Hustler.
Address: KPMG House, Norvic Drive,
Greenacres 6045
Tel: +27 (0)41 373 1122
Fax: +27 (0)41 373 1142
Email: info@nmbbusinesschamber.co.za
Website: www.nmbbusinesschamber.co.za
19 EASTERN CAPE BUSINESS 2017
PROFILE
Border-Kei Chamber
of Business
Border-Kei Chamber of Business provides key services to over 700
member organisations, and aims to be the “voice of business” in the area.
Value proposition
To be the “voice of business” promoting an environment
for growth and sustainability through maintaining
strong, proactive relations with both internal
and external stakeholders, including provincial and
local government, member companies, other business
organisations and organised labour.
Geographic areas of operation
Border-Kei Chamber of Business (BKCOB) has offices
in East London and Queenstown which serve the
greater Border-Kei region.
Services and benefits to members
BKCOB offers the following key services to member
companies:
• Member listing – After joining, members receive the
member listing as part of their package.
• Border-Kei Chamber of Business Membership
Certificate – Members receive a personalised membership
certificate at a new members’ induction
and networking event.
• New members’ induction and networking functions
– The chamber holds six new members’ induction
and networking functions annually, and these provide
a valuable informal but structured opportunity
to meet a broad range of businesspeople.
• Letters of support – The chamber gladly provides
letters of support to members trying
to access government tenders, and letters of
introduction to chambers in other centres for
members attempting to expand their business
footprint, whether provincially, nationally
or globally.
• Business Hi-Lite Magazine – This glossy B2B magazine
is distributed monthly free-of-charge to all
members, and keeps them in touch with chamber
activities and developments in the area.
• Trade & Information desk – Assists members with all
their exporting and importing needs.
• Investbuffalocity.com – A collaborative initiative
where members can find various economic information
on Buffalo City. It provides a platform to
attract international investors, as well as provide
exposure for local companies.
• Committees – The chamber has a robust and
effective committee system to facilitate members’
participation, and to enable the chamber to fulfil
its role as the “voice of business”.
Turnover
BKCOB represents over 700 member organisations that
generate an estimated annual turnover of R69-billion,
and that employ some 52 000 people who earn an
estimated annual income of R18-billion in total.
KEY CONTACTS
Executive Director: Les Holbrook
Head of Communications: Drayton Brown
Tel: +27 43 743 8438 | Fax: +27 43 748 1507
Email: info@bkcob.co.za or
communications@bkcob.co.za
Physical address: Chamber House, The Hub,
Beacon Bay, Bonza Bay Road,
East London 5241
Postal address: Postnet Suite 36,
Private Bag X3, Beacon Bay 5205
Website: www.bkcob.co.za
Please contact: Alana Velida at
members@bkcob.co.za or call
043 743 8438 to join.
EASTERN CAPE BUSINESS 2017
20
Promoting business
in the region
Les Holbrook, Executive Director of the Border-Kei
Chamber of Business (BKCOB), highlights the reasons that
investors should look no further than the Eastern Cape.
INTERVIEW
What are some of the Chamber Highlights for the past year?
The Chamber tackles many and varied projects and focusses primarily
on areas where the focus is on the cost and ease of doing business.
Last year we handed back to Provincial Treasury a pilot project titled
Buy Eastern Cape. This has been escalated to a priority initiative of the
Provincial Premier. Strategic steps will now be taken to increase the
procurement for enterprises located within the province.
Our lobbying in favour of renewable energy saw the Chamber focus
on “Greening our Office.” After eight months of intense capacity building,
our office in East London is now the only Chamber of Commerce
and Industry in South Africa that qualifies to be listed as Green.
INVEST BUFFALO CITY, our flagship project, signed MOUs with four
stakeholders in our region, committing to initiatives that focus on inward
investment and on retaining existing investment – on the principle
of Invest, Work, Live & Play. An associated project to the IBC project is A
Call-2-Action, an initiative where business partners with the municipality
toward a Clean & Green City, underpinned by waste recycling.
Also of significance was the very first Maritime Summit held in the
Metro – with emphasis on Operation Phakisa and the Blue Economy.
Outcomes included the establishment of a Maritime Cluster, a multistakeholder
forum to promote opportunities in the Blue Economy.
Why should investors consider the Eastern Cape?
We are equidistant between Gauteng and the Western Cape, with good
logistics and competitive costs, offering air, road and sea connectivity, all
reasons for a successful and vibrant East London Industrial Development
Zone. This is supported by the most moderate climate all year round,
a productive coastline, and a lifestyle supported by the 15-minute city.
With the first automotive tertiary training academy and artisan development,
skills in the manufacturing sector are adequately supported.
What is the biggest challenge for regional business?
Leadership stability and good governance. These can only be achieved
through high-level and robust multi-lateral engagement. We are moving
towards this, but more urgency is needed. Our success in the
automotive sector particularly says that we are on the right track.
Les Holbrook
BIOGRAPHY
Les Holbrook has a National
Technical Certificate as well as
a Certificate in Management
from Rhodes University. Prior to
his appointment as the Executive
Director of the Border-Kei
Chamber of Business, he was
the Deputy General Manager
of Beier Industries of Transkei
and Executive Director of the
Transkei Chamber of Industries.
21
EASTERN CAPE BUSINESS 2017
Skills development
Skills training is a top priority for Eastern Cape manufacturers and colleges.
For the Eastern Cape economy to grow, a
skilled workforce is a necessity. Raising the
skill levels of enough South Africans to push
the economy forward has become a priority
at national, regional and local level.
A number of interventions have been launched
in the public and private sphere including:
• six of South Africa’s biggest construction companies
have established a R1.25-billion skills fund
• the national Department of Higher Education
and Training (DHET) declared the period starting
in 2014 as “The Decade of the Artisan” with the
ultimate goal of producing 30 000 per year (the
current figure is about 13 000)
• the National Skills Authority (NSA) is implementing
the National Skills Development Strategy
(NSDS). The Human Resource Development
Council of South Africa (HRDCSA) gives guidance
to the many institutions working on skills
development and training
• Technical and Vocational Education and Training
(TVET) colleges have been tasked with producing
skilled artisans in 13 trade areas, including
bricklayers, millwrights, boilermakers and
riggers. R16.5 billion has been allocated by national
government.
Sector Education and Training Authorities (SETAs)
form an important part of South Africa’s master plan
to tackle skills development – sourcing funds to support
placement of Technical Vocational Education
and Training (TVET) students to gain workplace
experience. Each SETA is responsible for a Sector
Skills Plan.
The Manufacturing, Engineering and Related
Services Authority (MerSETA) plays an important
role in the Eastern Cape, home to so many of South
Africa’s automotive and automotive parts companies.
The authority is involved in the National
Tooling Initiative and artisan training, especially with
regard to creating a skilled workforce for the Coega
Industrial Development Zone. MerSETA helped establish
the Centre of Excellence for Welding at the
Eastcape Midlands TVET College in Uitenhage.
A national programme of the Local Government
SETA (LGSETA) offers learnerships in auditing to municipal
employees. Among other SETAs active in the
province are the Services SETA and the CathsSETA
(Culture, Tourism, Hospitality and Sport).
EASTERN CAPE BUSINESS 2017
22
SPECIAL FEATURE
TVET
The Eastern Cape has eight Technical and Vocational
Education Training (TVET) colleges, most of which
have more than one campus: Buffalo City, Port
Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata
Dalinyebo, Ikhala and Eastcape Midlands College. King
Sabata Dalinyebo offers business and engineering
studies among its formal programmes, and short
courses in bricklaying and computer studies.
Over 20 000 students are enrolled at this level in the
province. The Eastcape Midlands TVET College has five
sites: in Graaff-Reinet and Grahamstown and three in
Uitenhage, where students can study Business Studies,
Electrical Engineering, ICT and Computer Science
and Mechanical Engineering. The other campuses
specialise in Business Studies.
Lovedale Public TVET College serves the community
through three campuses at King William’s Town,
Alice and Zwelitsha, near King William’s Town. The
programmes of each campus reflect the economic
priorities of that region. In Alice, the focus is on agriculture,
King William’s Town offers business diplomas,
while engineering is available to students at the
Zwelitsha facility.
Buffalo City TVET College, with two large campuses
in East London and Mdantsane, specialises in Business
and Engineering for full-time studies, but offers a wide
range of part-time courses as well. The college’s School
of Occupational Training is located at St Marks Road.
The provincial government has committed a sum
of R1.5-billion over five years to aligning TVET colleges
more closely with the needs of the local economy
through learnerships.
Auto skills
• The Mercedes-Benz Learning Academy in East
London has MerSETA accreditation. A R130-million
agreement between Mercedes-Benz and the Jobs
Fund (run by National Treasury) has set high goals
for the academy in tackling skills shortages, and not
just for the auto-manufacturer.
• Another Jobs Fund initiative is putting 135 unemployed
engineers to work over three years, in partnership
with the Automotive Industry Development
Centre Eastern Cape (AIDC EC) and its members.
• Tyre manufacturer Goodyear has an engineering
training facility in Uitenhage, with a focus on the
training of instrument technicians.
• The Uitenhage Despatch Development Initiative
(UDDI) is working with Filpro in offering township
mechanics a two-year Informal Automotive Service
Centres Development Programme. The first group
of 106 trainees include generalist mechanics, tyre
repairers and panel beaters from KwaNobuhle,
Khayamnandi and KwaLanga. Filpro is largely funded
by GUD Filters and promotes entrepreneurship in
the automotive industry.
• Volkswagen’s Commercial Trainee programme has
been running for 15 years. Students with a nontechnical
qualification are exposed to practical experience
in departments such as Finance, Logistics,
Purchasing and Human Resources. Volkswagen
has five learning academies in Uitenhage. Open to
employees and to suppliers, the academies’ programmes
are SETA-accredited. and offer a range
of courses available through workshops, exercises,
e-learning or on-the-job-training.
Other developments
The South African National Roads Agency Limited
(SANRAL) has opened an engineering materials laboratory
to test materials for use on roads in the Eastern
Cape, which will also be used to give graduate engineers
experience. This will form part of SANRAL’s
experiential learning programme.
Meroe Skills Development was the service provider
used by SANRAL when it put 20 contractors through a
programme to train them to make dolosse (concrete
blocks to mitigate wave action on the coast). The venue
for the training was the Heartlight Community Learning
Centre in Walmer, Port Elizabeth.
Premier Hotels trains chefs and hotel managers
through its Academic College SA. Professional Cookery
and Beverage Management are among the diplomas.
The South African Maritime Safety Authority
(SAMSA) is investigating the feasibility of establishing
specialist maritime schools in South Africa’s coastal
provinces, including the Eastern Cape.
23 EASTERN CAPE BUSINESS 2017
ADVERTORIAL
Nedbank’s new brand promise
focuses on client engagement that
creates a better understanding
Mawande Shugu, Nedbank Regional General Manager,
Branch Networks, explains how Nedbank works with
communities to deliver banking solutions.
through community development, skills
development, education and job creation, as
well as environmental conservation. These play
a vital role in building a sustainable economy
and vibrant society. We believe our fast-growing
presence in communities goes a long way in
enabling greater financial inclusion while
contributing towards economic growth,’
concludes Shugu.
Nedbank continues to build on its clientcentred
strategy aimed at delivering
distinctive experiences and channels of
choice for businesses and clients in the
Eastern Cape. This has seen the bank
simplify and enhance its product offering
in line with its value-banking philosophy
based on simplicity, transparency and
affordability. Innovation and technological
advancements, as well as training and
development of staff, have been key pillars
in achieving the bank’s objectives.
Since 2012 Nedbank has launched several firstto-market
innovations, such as the awardwinning
Nedbank App Suite, the home loans
online digital channel and Market Edge, as
well as the ‘Branch of the Future’ concept in
communities locally and nationally. ‘Working
with communities is entrenched in our values
This is a unique service for clients, with financial
fitness training a key aspect of the offering. Our
wide range of products and services include the
Nedbank Ke Yona Plus transactional account,
which comprises funeral cover, a personal loan
facility, the JustSave Account and the Send-iMali
money transfer solution, enabling clients to
transact, borrow, save and take out cover.
To encourage the youth to save and build their
financial fitness from an early age the
Nedbank 4me offering enables the youth to
transact and save with the benefit of earning
preferential interest. Nedbank 4me comprises a
full transactional banking account with no
monthly fees, free initial transactions and
thereafter reduced pay-as-you-use pricing, free
eNotes and self-service banking.
Should you be interested in learning more about
how Nedbank can assist you to grow your
wealth and see money differently, for more
information call +27 (0)41 393 5800 or visit
www.nedbank.co.za.
ADVERTORIAL
Making it easier to do business with
Nedbank Whole-view Business
Banking
Lonwabo Daniels, Nedbank Regional Business Head,
Eastern Cape, explains how Nedbank can help business
owners in the Eastern Cape.
There is good news for Eastern Cape
business owners and entrepreneurs seeking
a unique banking experience: Nedbank
Business Banking has 27 business
managers located across the province
specialising in commercial industries as
well as the agricultural sector. They are
ready to assist you with professional
advice, industry-specific solutions and a
comprehensive range of financial products
and services.
‘At Nedbank Business Banking we believe that
you need a financial partner who not only
understands your circumstances and aspirations,
but also provides you with relevant solutions and
a banking experience that is hassle-free. This allows
you to concentrate on what’s most important to
you – running your business,’ says Daniels.
At the core of Nedbank’s offering in the Eastern
Cape is a relationship-based model with a
business manager dedicated to your business as
the key entry point into the bank.
‘We encourage you to see money differently
with Whole-view Business Banking , explains
Daniels. What does this mean to the client?
It is an additional benefit of banking with
Nedbank Business Banking and means that your
business and your personal financial needs are
managed in one place.
‘Because business owners and their businesses
are very often financially dependent on each
other, our client service teams now also offer
individual banking solutions to you and your staff
because we already know and understand your
needs,’ says Daniels.
With this in mind, Nedbank has seamless
offerings for you, your employees and your
household. Nedbank provides several
communities, including individual and business
clients, with access to products and services
through Nedbank’s workplace banking offering
through a dedicated banker.
Should you be interested in taking your business
to its next level and improving staff
engagement, and for more information about
Nedbank’s specialised service offering please call
the Business Banking team on
+27 (0)41 393 5969 or visit www.nedbank.co.za.
ADVERTORIAL
Expertise in small business aimed
at stimulating growth
Nedbank’s Regional Manager of Small Business Services,
Andisa Sikwebu, explains how Nedbank is committed to
partnering with businesses for growth.
National Small Business Chamber, seeks to
encourage everyone in South Africa to rally
behind and support small businesses. The
initiative calls on everyone to make a conscious
decision to vote for small businesses through
their hearts, feet and wallets; not only on Small
Business Friday, but every day.
SimplyBiz.co.za is a free-to-join value networking
portal designed especially for small businesses.
The online portal helps small businesses improve
their business administration skills, keep up with
the latest trends, network with other small
businesses and share ideas.
'Small businesses are the mainstay of the
economy. Nedbank has, over the years,
instituted various interventions aimed at
giving support to the small-business
sector. Over and above our small-business
services solutions, we provide smallbusiness
owners with support that goes
beyond banking, freeing up their time to
truly focus on running their businesses,’
says Sikwebu.
Should you wish to tap into our small business
expertise to help your business goals, why not
get in touch with Nedbank’s Small Business
Services, call Andisa Sikwebu on
+27 (0)41 398 8188 or send an email to
andisas@nedbank.co.za.
Nedbank has built a solid reputation as a bank
for small businesses through initiatives such as
Small Business Friday, free small-business
seminars and the SimplyBiz.co.za platform – all
geared to support the small- and medium-sized
enterprises sector. For example, the Small
Business Friday initiative, in association with the
ADVERTORIAL
New brand proposition encourages
clients to ‘see money differently’
Venai Naidoo, Nedbank Eastern Cape Business
Manager, Business Banking, explains how the new brand
values build on the expertise of the bank to benefit clients.
Nedbank officially launched its new
brand repositioning during the first day
of the world’s largest design festival – the
2017 Design Indaba on March 1. The
bank’s new tagline challenges clients and
society to ‘see money differently’.
One of the solutions from Nedbank is
Whole-view Business Banking , which provides a
bird’s-eye view of clients’ businesses. It is aimed
at business owners who believe that they need
the best-of-breed of financial institutions.
The new brand positioning is built on Nedbank’s
purpose: to use financial expertise to enable
individuals, families, businesses and society to do
good. Our new brand proposition was born after
almost two years of research and client
engagement that revealed that people want to
work with purpose-driven institutions they can
trust. They want a professional financial partner
that balances expertise with a genuine
commitment to do good.
The public will see a number of changes in the
next few months as the bank evolves its
corporate identity, advertising and
communication campaigns, as well as its
products, services and channels. All these
changes are designed to inspire clients and
society to see money differently and partner
with the bank to achieve their goals.
Our new brand proposition is not just a
marketing initiative but a reflection of the
continuing business evolution at Nedbank. As a
bank we want to ensure that our clients
experience our brand in a way that is aligned
with our brand promise.
It is common knowledge that we live in a volatile
socioeconomic environment, so it is even more
important for us to intensify our commitment to
improve on our skill in enabling clients to
navigate challenges and meet their goals.
If you would like to explore further how Business
Banking can help take your firm to the next level,
and for more information about Nedbank
Business Banking Services call Venai Naidoo on
+27 (0)41 398 8032 or send an email to
venain@nedbank.co.za.
see money differently
Nedbank Ltd Reg No 1951/000009/06. Authorised financial
services and registered credit provider (NCRCP16).
SPONGE 5556
The Masisizane Fund was established in 2007 as
an initiative of the Old Mutual Group and with a
mandate to contribute measurably to job creation
that in turn helps eradicate poverty in South Africa.
The Fund focuses on creating clusters of partnerships
that work together toward the common goal of
establishing sustainable farming ventures operating
the formal value chains.
In 2013, the Masisizane Fund adopted a Cluster
Development approach in order to address the
agricultural challenges faced in the rural Eastern
Cape and to ensure socio-economic transformation.
Clustering small scale farmers to ensure that
they benefit from economies of scale has its own
challenges and nuances.
Some of these challenges, particularly in remote
rural areas, include deficient infrastructure, long
distances from markets, skills deficiencies and social
dynamics among others. It is only when one is
immersed in the work in these areas that the
challenges that lie ahead become visible and they
can be daunting. It is for these reasons that the
Masisizane Fund has based their work on the
following principles:
• Building a foundation and establishing trust
among the cluster of farmers and partners.
• Creating the necessary infrastructure by building
capacity, providing financial assistance and
networking opportunities.
• Putting systems in place starting with steering
committees and ongoing support, mentoring
and training.
• Developing partnerships and incorporating the
technical support provided by government in
the form of extension services.
• Working with government and other financial
partners to leverage the available financial
resources.
WE WERE FACED WITH THE
FOLLOWING AGRICULTURAL CHALLENGES
IN THE RURAL EASTERN CAPE:
• How do we develop rural communities where
there is no infrastructure or capacity?
• How do we assist the local farmers to establish
sustainable farms/businesses, creating work
opportunities and improving food security?
• How do we bring disconnected and small farming
ventures operating in the informal markets into
the formal value chains, local and even global?
• How do we ensure that small farmers gain
economies of scale, which is one of the critical
success factors in modern farming?
In an attempt to provide answers to these questions,
the Masisizane Fund established a flagship pilot
project in the Alfred Nzo and Harry Gwala
districts. These areas are characterised by high
levels of unemployment, low economic activities
and investments, dependency on social grants and
a high number of unskilled labourers. With the aim
of bringing about economic transformation with a
legacy effect in these areas through agricultural
investment, a total of 1600 hectares were planted
with soya and dry beans in the Matatiele,
uMzimkhulu and Nkwazini areas during the
2014/15 season. The severe drought that affected
South Africa and Southern Africa had an impact on
the production of this pilot project, which as a result
produced yields significantly below expectations,
generating revenue of R2.86 million with 20%
distributed to funded entities as dividend and land
use fees.
MASISIZANE FUND
BEFORE
It is however during difficult times like these that continued
assistance is needed. This is why the Masisizane Fund
committed to further support farmers by planting 1180
hectares in Matatiele, 1 500 hectares in uMzimkhulu
and 50 hectares in Nkwazini. The main crops for this
season are maize and soya beans with maize introduced
for crop rotational reasons and as weather patterns have
changed from dry spells during the last season to the
return of normal seasons in the area.
Nkhangweni (Robert) Matsila, Sector Head
(Agri-Business) says, “The target lands have been
mapped, soil preparation proceeded well
and planting is close to completion and
on time. We are working with farmers
to fix some problems here and there and
are positive to see good results
this season.”
AFTER
Robert Matsila
Sector Head Agri-Business
A flagship office has been established in Kokstad to oversee all activities of the Eastern Cape flagship
programme with other regional offices as follows:
Kokstad Flagship Office 039 727 3100 Ndlamini2@oldmutual.com
Eastern Cape 043 704 0116 ymalusi@oldmutual.com
Gauteng (incl North
West & Free State)
011 217 1746 tmagodla@oldmutual.com
Western Cape (inc Northern Cape) 021 509 5074 asnyders@oldmutual.com
KwaZulu-Natal 031 335 0402 Snkosi4@oldmutual.com
Limpopo (incl Mpumalanga) 015 287 4279 bsemenya@oldmutual.com
OMBDS 12.2016 L10069
An initiative of the
Group
Old Mutual is a Licensed Financial Services Provider
KEY SECTORS
Overview of the main economic
sectors of the Eastern Cape
Agriculture 32
Forestry 36
Aquaculture 37
Agri-processing 38
Manufacturing 40
Automotive 42
Energy 44
Water 46
Information and
communication technology 50
Banking and finances 52
Development financ
and SMME support 54
Tourism 56
OVERVIEW
Agriculture
Agriculture underpins several sectors of the economy of the Eastern Cape.
The Eastern Cape is well located for the cultivation of crops and animal
husbandry. The province encompasses all seven of South Africa’s
biomes, which means that practically every kind of crop or animal or
crop can be cultivated or raised on the province’s 169 580 square kilometres
of land. These include the wool-producing merino sheep and the
mohair-producing Angora goat which thrive in the dry interior and have
been a vital part of the national economy since 1789 and 1838 respectively.
The Eastern Cape has more livestock than any other South African
province, and produces a quarter of the nation’s milk with producers
tending to favour coastal areas such as the Eastern Cape.
Deciduous fruit (Langkloof), citrus fruit (Addo/Kirkwood) and
chicory (Alexandria) are important parts of the province’s agricultural
mix, but a feature of recent years has been towards diversification.
Land-usage patterns have changed. Parts of the Amathole and
Sarah Baartman districts that used to be sheep or pineapple farms
are now stocked with game and are geared towards the hunting and
tourist markets.
SECTOR INSIGHT
Wool sales earned a total of
R3.7-billion in 2015/16.
• The business rescue
of Magwa Tea Estate
could be an investment
opportunity.
• Communal farmers have
won a top wool award.
There are about 70 000 people
employed on commercial
farms across the Eastern Cape,
with a further 436 000 dependent
on smaller farms, mostly in
EASTERN CAPE BUSINESS 2017
32
OVERVIEW
the east. Improving the agricultural
yield of the eastern part of
the province is vital for improving
food security and lifting many
thousands of people out of poverty.
The recent national drought
has put extra pressure on rural
communities.
Infrastructure plays an important
role in the agricultural sector,
and the repair of the road between
Port Elizabeth and Addo has been
welcomed by all the citrus farmers
in the Addo/Kirkwood district. Big
infrastructure projects have been
undertaken in the eastern parts of
the province by the Eastern Cape
Rural Development Agency.
Three training centres focus
on agriculture in the province:
Fort Cox College of Agriculture
and Forestry, Mpofu Training
Centre (teaching mostly smallstock
management) and the
Tsolo Agricultural and Rural
Development Institute, which
is developing ties with Walter
Sisulu University. The Dohne
Agricultural Research Institute,
near Stutterheim, developed a
new breed of sheep, the Dohne
merino.
The large Magwa Tea Estate
went into business rescue in
2016. At its peak, Magwa produced
about 2 700 tons of tea
but more investment is now
needed to make it (and its
neighbouring estate Majola) a
profitable business.
Crops
The Eastern Cape is South Africa’s
second-largest producer of citrus
fruit. Oranges make up the vast
majority of citrus products (80%), but the province is also well-known
for its clementine and satsuma tangerines, as well as navel oranges.
Deciduous fruits such as apples, pears and apricots are grown primarily
in the Langkloof Valley.
Another crop in which the Eastern Cape leads national production
is chicory. The roots are used for beverages such as instant coffee, the
leaves go into pet food and stock feed and unopened leaf pods become
chicory endives, a sought-after salad ingredient. The province produces
between 18 000 and 20 000 tons of wet root every year, mostly near
the coast at Alexandria and inland from Port Alfred. The entire crop is
consumed in South Africa.
The province’s pineapple crop, grown in the same part of the
Sunshine Coast that produces chicory, is similarly largely for domestic
consumption. Approximately 80 000 tons are produced every year
and processed in East London.
One of the fastest-growing sectors in agriculture is macadamia
nuts. The ECRDA has partnered with a community to plant
the popular nut at Ncera in the Tyume Valley north of Alice. The
original planting of 150ha is being expanded by a further 30ha.
The harvest of 49 tons in 2015 is expected to grow to 80 tons as
the trees mature.
Sheep and goats
The long-term drought which has afflicted all regions in South Africa
is having an effect on all sectors, but wool-producing sheep farmers
and mohair-producing Angora goat producers perhaps less so,
partly because they are so well adapted to dry conditions but also
because farmers can reduce their flocks.
33 EASTERN CAPE BUSINESS 2017
OVERVIEW
The dorper breed (which are mainly used for meat production)
is found in the dry Karoo, while the higher-lying areas are more
conducive to the wool-producing sheep.
South Africa produces about 50 000 tons of wool annually. In
2014/15, the value of wool sold at auctions reached R3.5-billion; in
2015/16 it was R3.7-billion, of which R815-million was generated in
the Eastern Cape.
The National Woolgrowers Association (NWGA) has helped
24 000 Eastern Cape communal wool farmers get organised into
1 224 wool growers associations. Now they have access to
sheds with good equipment for shearing and classification.
(www.heatherdugmore.co.za)
One of the support programmes aims to improve the genetic
stock. This is funded by the national Department of Rural
Development and Land Reform and involves communal farmers
swopping an inferior ram for a good ram. So far, 42 000 good merino
rams have been added to the communal flocks.
Dugmore’s report highlights the achievements of a group of
communal farmers from the Sterkspruit district, near the Lesotho
border. The 66 farmers of the Upper Telle shearing shed were the
2015/16 season NWGA Grand Champions. Their 5 600 sheep produced
an average of R92.03/kg against the national average for
commercial wool farmers of R77.40/kg. The average for communal
wool farmers is R52.35.
The South African Mohair Growers Association is based in the
heart of Angora goat country at Jansenville while the industry association,
Mohair South Africa, has recently built smart new headquarters
in Port Elizabeth, encompassing a shop and conference
facilities. South Africa produces about half of the world’s mohair.
Processing of mohair takes place in Uitenhage, Port Elizabeth
and Berlin outside East London. The mohair value chain includes
brokers, buyers, processors,
spinners, manufacturers and
retailers. The Stucken group
controls Mohair Spinners South
Africa, Hinterveld (a mill) and
a processing company called
Gubb & Inggs in Uitenhage.
Several agricultural companies
have mohair divisions:
OVK (based in Ladybrand) has
a 34% shareholding the Cape
Mohair Wool (CMW), a mohair
brokerage; BKB (Port Elizabeth
headquarters) has a mohair division
that includes auctions and
brokering.
Other livestock
Livestock farming is the largest
agricultural sub-sector in South
Africa. The Eastern Cape holds
21% of the country’s cattle (about
3.2-million), 28% of its sheep
(seven-million) and 46% of its
goats, making it the largest livestock
province by a large margin.
The rich natural grasslands
of the Eastern Cape have the
potential to produce high-value
organic meat, a product that is
proving increasingly popular in
health-conscious international
markets. The Eastern Cape can
offer a range that stretches from
Karoo lamb to CAB-certified freerange
beef. These niche meat
products are leaner, healthier and
often tastier than mass-produced
alternatives. High-value meat
cuts such as these will increase
the value of exports from the
Eastern Cape. The Border region
is very strong in beef production.
Stats confirm that South
Africa has a large meat-eating
EASTERN CAPE BUSINESS 2017
34
OVERVIEW
population, as South Africans
consume on average 13.7kg of
beef every year, of which lamb or
mutton makes up around 3.4kg
per annum.
Dairy
About a quarter of South Africa’s
milk comes from the Eastern
Cape. Although conditions
vary greatly from the luscious
green grasses of the Lower
Tsitsikamma to the drier conditions
of the Karoo, they all seem
to suit milk-producing cows.
The bigger dairies include
Dawson Dairy (just outside
Port Elizabeth), Crickley Dairy
(Queenstown), Clover Dairy
(Port Elizabeth; packaging and
fresh pasteurised milk processing,
long-life UHT milk), Parmalat
(Port Elizabeth; wide range of
flavoured milks, cheeses, custards,
butter, fruit drinks and
ice cream under many brand
labels), Dairybelle (Cookhouse
near Somerset East; cheeses),
Woodlands Dairy (Humansdorp;
UHT milk, First Choice Brand),
and Sundale Free Range
Dairy (East London Industrial
Development Zone).
A young farmer who turned
a very small operation into a sizable
dairy herd has earned himself
a top prize along the way.
Tshilidze “Chilli” Matshidzula
turned a failing land redistribution
project with a herd
of fewer than 50 cows into
a successful dairy operation
with 549 cows that produces
11 000 litres of milk per
day. For this achievement
he received the Mangold Cup from the Bathurst Conservation
Committee in 2016, the first time the award has been won by
a black farmer. Walter Biggs, an established farmer in the
Alexandria District, mentored Matshidzula over a period of
nine years.
ONLINE RESOURCES
Arid Areas Research Programme: www.aridareas.co.za
Agri Eastern Cape: www.agriec.co.za
Eastern Cape Department of Rural Development and Agrarian
Reform: www.drdar.gov.za
Eastern Cape Development Corporation: www.ecdc.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
Chicory Producers Association: www.chicory.co.za
Milk Producers Organisation: www.mpo.co.za
Mohair South Africa: www.mohair.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
National Woolgrowers’ Association of South Africa:
www.nwga.co.za
South African Mohair Growers Association: www.angoras.co.za
35 EASTERN CAPE BUSINESS 2017
OVERVIEW
Forestry
The private sector is working with community land owners to boost timber production.
The Eastern Cape has large swathes of land that have been identified
as suitable for forestry, to add to the already sizable industry in
the province. According to the Eastern Cape Rural Development
Agency (ECRDA), government plantations have more than
15 000ha of unplanted areas which would be easy to develop: they do
not require high initiation costs (environmental impact assessments)
because no licence is required.
The Eastern Cape’s forestry sector comprises 130 000ha of plantations,
46 sawmills, two chipboard operations, 10 pole treatment plants,
a veneer plant and six charcoal plants, which collectively process about
770 500 cubic metres of timber annually.
The region is well-served by wood-processing facilities such as
the R1.3-billion board plant outside Ugie that is owned by JSE-listed
Steinhoff’s subsidiary company, PG Bison. Another of the province’s
major forestry stakeholders is Amathola Forestry, along with their sister
company Rance Timber’s Kubusi and Sandile Sawmill near Stutterheim,
producing 45 000 cubic metres of sawn board annually.
About 75% of the province’s plantations are controlled by the private
sector. Forestry South Africa has set up a Business Development
Unit to empower small-scale timber growers.
The ECRDA aims to transform unproductive communal land assets
through commercial forestry development. The ECRDA’s Sinawo
project in Mbizana has started selling timber to Sappi and is fast
approaching commercialisation of all its operations. In 2015/16 the
project earned about R7-million from the sale of timber and the total
ONLINE RESOURCES
Eastern Cape Department of Rural Development and Agrarian
Reform: www.drdar.gov.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
Forestry SA: www.forestry.co.za
Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za
Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
South African Institute for Forestry: www.saif.org.za
SECTOR INSIGHT
40 new jobs can be created
for every 25ha planted.
employee count rose to 208. Sappi
and PG Bison are supporting these
community initiatives.
Paper and packaging group
Sappi is working with the ECRDA
and with several communities
in the Eastern Cape to establish
forestation programmes. At
Mkambathi a total of 668ha has
been planted and Sappi has
agreed to buy 65% of the timber
produced and to give technical
support where it can.
As much as 100 000 hectares of
land is suitable for forestry in the
Eastern Cape, much of it on communal
land. Government is keen
to find private investors who will
partner with local communities.
If all of the projects come
to fruition, there is potential for
an additional 1.8-million cubic
metres of new timber to be processed
and for 40 new jobs to be
created for every 25ha planted.
Downstream opportunities
created by new plantations include
a planned treated-pole
plant in Butterworth and a paper
and pulp mill in Mthatha, which
has also been selected as a future
furniture-sector incubator.
EASTERN CAPE BUSINESS 2017
36
Aquaculture
Fish from the Karoo will soon be a popular dish.
OVERVIEW
“Catch of the day” is about to take on a new meaning, with the
fish coming from the semi-desert Karoo region. “Karoo Catch”
is the brand name for freshwater fish produced by Blue Karoo
Trust, a project taking shape near the town of Graaff-Reinet.
A central farm will be supported by 39 outgrowers and the aim is
to produce about 14 000 tons of fish on an annual basis. The intended
market is organisations that need protein in bulk such as hospitals,
schools and government institutions. South African love to eat pilchards
but the catch has been decreasing every year. An alternative
canned fish in tomato sauce will use tilapia, carp or catfish. The risk
capital unit of the Eastern Cape Development Corporation (ECDC) is
supporting the venture and there have been contributions from local
government, national institutions and a foreign donor.
Fish farming was high on the agenda in September 2016 at the inaugural
South African Oceans Economy Symposium hosted by the Nelson
Mandela Metropolitan University (NMMU) and Strategic Partners, South
Africa. The conference was called “Investing in blue growth and sustainable
solutions for Southern Oceans: Lessons from Nordic countries”.
Aquaculture forms a big part of the South African government’s fasttrack
Operation Phakisa strategy. One initiative is tackling 24 projects
across South Africa by 2019 so there should be great opportunities
for private investors.
The intention is to increase the aquaculture sector’s revenue
from about half a billion rand today, to R1.4-billion in 2019. Another
initiative aims to reduce waiting times for processing of applications
ONLINE RESOURCES
Aquaculture Association of South Africa: www.aasa-aqua.co.za
Aquaculture Development and Enhancement Programme:
www.thedti.gov.za
Coega IDZ: www.coega.co.za
East London Industrial Development Zone: www.elidz.co.za
Operation Phakisa: www.operationphakisa.gov.za
South African International Maritime Institute: www.saimi.co.za
South African Institute of Aquatic Biodiversity: www.saiab.ac.za
SECTOR INSIGHT
A symposium on the oceans
economy was held in PE in
2016.
and approvals from 890 days to
240 days.
Pure Ocean Aquaculture and
Ocean Wise are located within the
East London IDZ. At Zone 10 in
the Coega IDZ, 250ha has been
set aside for fresh fish farming
and 100ha for marine farming.
A processing plant and research
and development and training
facilities are planned. The Coega
Development Corporation estimates
that 34 250 tons of abalone,
Dusky Kob and seaweed could
be harvested.
The National Department of
Science and Technology (DST)
is working with Irvin & Johnson
in running a marine finfish
grow-out pilot in the waters of
Algoa Bay.
The Aquaculture Development
and Enhancement Programme
(ADEP), a programme of the
Department of Trade and Industry
(dti), offers a reimbursable grant
up to R40-million for new projects,
or to expand or upgrade
existing projects.
37 EASTERN CAPE BUSINESS 2017
OVERVIEW
Agri-processing
Manufacturers are harvesting the Eastern Cape’s excellent produce.
SECTOR INSIGHT
Famous Brands has made a
second big investment in the
Coega IDZ.
• Cerebos salt company
earned a top international
food safety certification.
Wool, mohair, citrus and pineapples, dairy products and
salt—these are just a few of the abundant products
of the fields of the Eastern Cape that manufacturers
are turning into jerseys, scarves, jams, juices, cheeses,
yoghurts and cakes of salt.
The Eastern Cape has more livestock than any other South African
province, produces close to a quarter of South Africa’s milk dairy
farming and is the second-largest producer of citrus fruits.
Famous Brands has 2 600 restaurants throughout South Africa,
including the brand that made its debut in Port Elizabeth, Vovo Telo.
Famous Brands has increased its manufacturing footprint in the Coega
Industrial Development Zone (CIDZ). Zone Three of the Coega IDZ is
devoted to agriprocessing.
Thousands of tons of tomato paste is imported into South Africa
every year so this acquisition will free up a lot of capital for Famous
Brands. It also presents a great opportunity for Eastern Cape farmers
to become suppliers to the plant. The Eastern Province Herald
reports that the paste factory will be modelled on the successful
Famous Brands Fine Cheese Company (formerly Coega Cheese)
which has increased milk production from 16.5-million litres per
year to 38-million litres.
In addition, the Herald said that
McCain Food SA has decided to
source 60 000 tons of potatoes
from the Eastern Cape, opening
up another market for producers.
Other tenants of the Coega
IDZ include logistics companies
like PE Cold Storage, River Edge
Trading (which trades in sugar
and syrup across Southern Africa)
and Cerebos. Cerebos’s 30 000-
ton per annum plant at Coega
was awarded a top food safety
standard certification on its 70th
birthday in 2015, the FSSC 22000.
The East London IDZ has two
aquaculture tenants and the large
Sundale Dairy, as well as a regional
depot of the Mediterranean
Shipping Company.
The Eastern Cape Rural
Development Agency (ECRDA) is
active in helping small-scale farmers
get access to markets and to
become part of the agriprocessing
chain. The implementation
of Rural Enterprise Development
(RED) hubs is a key plank of this
EASTERN CAPE BUSINESS 2017
38
OVERVIEW
strategy. RED hubs will supply
tractors, harvesters and offer
storage facilities and milling
plants. There will also be opportunities
for farmers to sell direct
to members of their own community
instead of shipping produce
off to a distant location to
be processed there. The first four
hubs will be sited in the district
municipalities of OR Tambo, Chris
Hani and Alfred Nzo.
The concept of agri-parks is
also intended to support the addition
of value to primary products:
these have been developed
at Lambasi, Ncorha, Sundays River
Valley, Butterworth, Matatiele and
Sterkspruit-Senqu.
The Eastern Cape Development
Corporation (ECDC)
also has a role in supporting
agriprocessing through loans and
equity arrangements: projects that
have received financial support include
aquaculture, the production
of dietary fibre from pineapples
and bamboo products.
The Eastern Cape provides
approximately a quarter of South
Africa’s milk, and the industry is
further expanding as producers
tend to favour high-rainfall coastal areas such as the Eastern Cape.
With Clover recently acquiring Dairybelle’s milk assets, the province’s
farmers mostly sell raw milk to two major processors: Parmalat and
Clover. With the growth of the dairy sub-sector in recent years, a few
independent processors have emerged. Small-scale dairy farming presents
an opportunity to develop the industry in the former homeland
areas, especially in a range of previously untapped products such as
milk powder, speciality cheeses and long-life milk.
Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures
natural cheese, processed cheese and speciality cheeses at its
factory in Cookhouse near Somerset East. Ouma Rusks are still made in
the small rural town where they were invented, Molteno, and current
owner of the brand, Foodcorp, has increased production volumes.
Cabdbury Chocolates operate a big site across the lake from the
football stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate
at its factory in East London. The Sasko mill in Port Elizabeth is the
province’s only big milling plant.
Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major
beverage manufacturers in Port Elizabeth and Distell has a bottling
plant in the city.
Sovereign Foods in Uitenhage is the country’s fourth-biggest producer
of poultry and has been the target of a take-over by Country
Birds for some time, but the process has been dragged out because
Sovereign management do not want to sell.
South Africa is the second-largest producer of chicory in the world.
Chicory is grown primarily in the coastal areas around Alexandria
between Port Elizabeth and Port Alfred. A drying plant has been
established there and the dried chicory produced is sold to coffee
manufacturers nationwide for local consumption.
Sugar is grown on the northern border of the province, in North
Pondoland.
An opportunity for diversification in crop production exists with the
aloe ferox plant, which is indigenous to the Eastern Cape. Like aloe vera,
which is in demand worldwide in cosmetic and health products, aloe ferox
is used for a wide range of skin conditions and various medical ailments.
ONLINE RESOURCES
Coega IDZ: www.coega.co.za
Eastern Cape Rural Development Agency: www.ecrda.co.za
East London Industrial Development Zone: www.elidz.co.za
Nelson Mandela Business Chamber:
www.nmbbusinesschamber.co.za
Organic Agricultural Association of South Africa:
www.organicsouthafrica.co.za
Perishable Products Export Control Board: www.ppecb.com
39 EASTERN CAPE BUSINESS 2017
OVERVIEW
Manufacturing
From eye drops to dog food, the Eastern Cape has diverse manufacturing opportunities.
SECTOR INSIGHT
The Fagerhult Group from
Sweden is a new investor.
• BBF Safety Group is expanding
production of
shoes.
• Aspen’s PE plant makes
25-million eye drops
annually.
Diversification has been the name of the manufacturing game
in the Eastern Cape in recent years. The massive role played
by the automotive industry and food and beverages as part
of agri-processing (both covered in separate overviews) has
not diminished, but with attractive incentives on offer in both of the
province’s industrial development zones, the range of manufacturing
capabilities is growing.
Coega IDZ is home to Agni Steels SA and DCD Wind Towers and
Electrawinds. East London’s IDZ has another company in the renewable
energy sector, ILB Helios, who make solar panels.
The provincial government is keen to support diversification, anxious
that with the automotive sector supplying 30% of manufacturing employment
and 32% of manufacturing gross value-added, the province’s
economy might be vulnerable to fluctuations in demand for vehicles.
The strategy is targeting sectors where the province already has a
competitive advantage (as with wool and mohair), is labour intensive,
will have a broad impact and has low barriers for SMME entry. Sectors
targeted include: agri-processing and food; timber; tourism; construction;
chemicals; energy and mariculture.
One of South Africa’s most successful manufacturers is Port
Elizabeth-based Aspen. The judges of the 2016 All Africa Business
Leaders Awards agreed with this
assessment when they named
Aspen Group Chief Executive
Stephen Saad as Entrepreneur
of the Year. The company has 60
businesses in 50 countries and the
Port Elizabeth and East London
factories play an important role
in producing excellent products
in bulk. The Port Elizabeth site
makes more than 12-billion oral
solid dosage forms every year, in
addition to more than 25-million
units of Murine and Clear Eye eye
drops being made for export to
the US. The PE complex has four
components, covering oral solid,
liquid, steriles and niche high potency
pharmaceutical products.
Bodene, a subsidiary of
Fresenius Kabi, makes intravenous
medicine in Port Elizabeth.
East London hosts Johnson &
Johnson’s finance, operations
and research and development
divisions.
EASTERN CAPE BUSINESS 2017
40
OVERVIEW
Swedish concern Fagerhult
Group has entered the South
African market via an acquisition
of the factory of Port Elizabeth’s
Lighting Innovations, and the
two subsidiary companies Arrow
Lighting and Beacon Lighting.
Aberdare Cables and
Everyready Batteries are examples
of companies in the medium-toheavy
sector. East London has two
First National Battery manufacturing
sites.
Montego Pet Nutrition is
Graaff-Reinet’s biggest private
employer, with more than 200
staff members working in the
Karoo town’s factory. Established
in 2000, the company now makes
about 200 tons of product daily
and supplies more than 1 000 retail
outlets across South Africa.
Considerable potential exists to
create more value from the excellent
wool, leather and mohair that
the province’s livestock produce.
The production and working with
merino wool and mohair fibres are
skills that have been handed down
from generation to generation.
A fibre processing plant to spin
wool and mohair fibre into yarn
is planned, as is a textile mill to
focus on cotton, poly-cotton and
acrylic fabric. The latter is planned
for the IDZ in East London, which is
already home to Da Gama Textiles,
whose factory has the capacity
to produce 45-million square
metres of fabric per annum. Da
Gama makes the popular and distinctive
shweshwe fabric, using
its own unique printing process
which makes it very difficult for
fakers to copy.
The BBF Safety Group invested
R16-million in a new machine at
its Port Elizabeth plant in 2016 which will take shoe production up
to 5 000 pairs per day. The injection moulding machine can inject a
moulded sole to the shoe upper every 15 seconds. The BBF Group was
formed from a merger of several South African companies, to allow
them to specialise and to compete with cheap foreign imports. The
companies were Bagshaw Footwear, Beier Safety Footwear, Bronx
Safety, United Frams and Wayne.
The plastics industry is a key supporter of the automotive industry
but it is not limited to vehicle applications: moulding, packaging and
the construction industries are other important sub-sectors.
GenTech, which operates out of Neave township, specialises in
polyurethane elastomer components and sells to the automotive,
tyre, textile and food industries and Maizey Plastics are suppliers of
semi-finished thermoplastic materials.
Incentives
The Department of Trade and Industry (dti) offers a Competitiveness
Enhancement Programme aimed at medium-sized manufacturers. It
includes a cost-sharing grant of between 30% and 50% for investments
up to R50-million and up to 80% if a group of smaller companies want
to collaborate on matters such as advertising. The dti also oversees:
• Critical Infrastructure Programme.
• Research and Development Tax Incentive Programme.
• Cash for new or upgraded production facilities.
• The Foreign Investment Grant repays foreign investors for the cost
of transporting new machinery and equipment to South Africa.
• Companies are assisted in creating prototypes arising from their
own research.
• Clothing and Textile Competitiveness Programme is a cost-sharing
grant.
ONLINE RESOURCES
Border-Kei Chamber of Business: www.bkcob.co.za
Coega Development Corporation: www.coega.co.za
Department of Economic Development, Environmental Affairs
and Tourism: www.dedea.gov.za
East London Industrial Development Zone: www.elidz.co.za
Manufacturing Circle: wwww.manufacturingcircle.co.za
National Agricultural Marketing Council: www.namc.co.za
National Association of Pharmaceutical Manufacturers:
www.napm.co.za
South African Bureau of Standards: www.sabs.ca.za
41 EASTERN CAPE BUSINESS 2017
OVERVIEW
Automotive
Vehicles and components anchor manufacturing in the Eastern Cape.
SECTOR INSIGHT
A Chinese OEM is part of an
R11-billion investment.
• 10 000 C-Class Mercedes-
Benzes left East London
Port in the month of
August 2016.
Recent investments by Chinese state-owned enterprises have
boosted the Eastern Cape’s automotive sector. Already home
to some of the biggest brands in original equipment manufacturing
(OEM) and automotive components in Volkswagen,
Mercedes-Benz, General Motors, Ford, Goodyear, Continental Tyre
SA, Bridgestone and Shatterprufe, the addition of First Automotive
Works (FAW) and Beijing Automobile International Corporation (BAIC)
confirms the province’s premier standing in this sector.
FAW’s R600-million assembly plant can now be seen as having
tested the waters because BAIC followed in 2016 with one of the
biggest foreign investments in recent years. BAIC is taking a 65%
stake in an R11-billion joint venture with the Industrial Development
Corporation at the Coega Industrial Development Zone. BAIC is a
Chinese state-owned enterprise with several brands. The intention
is to start production on the 85 000m² site in 2018 and the target is
annual production of 100 000 cars, bakkies and sports utility vehicles.
About 2 500 jobs are expected to be created. The Coega IDZ is run
by the Coega Development Corporation.
Companies like BAIC and FAW may well be positioning themselves
to push into Africa, not only for selling vehicles but for sending
automotive parts and partly assembled kits further north. A
new pan-African organisation has been established to promote
the auto industry on the continent,
the African Association
of Automotive Manufacturers
(AAAM).
The Eastern Cape manufactures
half of the country’s passenger
vehicles and provides
51% of South Africa’s vehicle exports.
The sector accounts for
over 40 000 formal sector jobs
in the Eastern Cape.
The South Africa automotive
sector makes up about 7% of
South Africa’s gross domestic
product and is responsible for
approximately 12% of the country’s
manufacturing exports.
In 2014 South Africa exported
276 404 vehicles and in 2015 a new
record was achieved, 338 802.
The total value of this (together
with automotive parts exported)
amounted to R151-billion. Total
production in South Africa in
2016 was expected to reach
640 000 units.
In 2015, Mercedes-Benz South
Africa built its millionth vehicle
EASTERN CAPE BUSINESS 2017
42
OVERVIEW
in East London. Mercedes-Benz
set new exporting standards
in April 2016 when it moved
more than 10 000 vehicles
out of East London Port in the
month. Transnet Port Terminals
(TPT) and Transnet National
Ports Authority (TNPA) shared
the accolades for the logistical
achievement, which was
part of a three-month total of
25 860 new Mercedes-Benz
W205 C-Class vehicles shipped.
In the same month, the
Eastern Cape Exporters’ Club
named Volkswagen Group
South Africa as “Best Exporter
OEM” with Ford receiving a merit
award for increased turnover
and job creation. VWSA exported
20% more Polos in 2015 than
the year before, and kept up the
momentum into 2016. Coming
off investments totalling R5.9-
billion between 2007 and 2014,
VWSA will put up another R4.5-
billion for new models to be produced
in Uitenhage from 2017.
The “Best providers of services
to exporters” award gives an
interesting insight into the support
industry that something as
complex as the automotive industry
requires: the 2016 winner
was logistics company Morgan
Cargo and a merit award was
won by Motor Industry Customs
Brokers, a company that specialises
in helping OEMs deal with
red tape and customs.
An Automotive Production
and Development Programme
(APDP) is in place to support
the automotive industry and to
encourage investment. It is run
by the Department of Trade and
Industry (dti).
Components
Only 35% of the components and parts used to make vehicles in
South Africa are produced locally. The large number of vehicle models
produced in South Africa is a complicating factor for the components
sector: low volumes often mean high prices. Two Port Elizabeth companies
export significant portions of their production to overcome this:
Schaeffler SA exports to its international parent so that it can achieve
higher volumes. Shatterprufe supplies the majority of windscreens
to the South African market but there are 12 model ranges to serve.
About 150 automotive suppliers of various types operate in the
Eastern Cape. Sectors include leather works, batteries, automotive
tooling, catalytic converters, glass, lamps, radiators and alloy wheels.
Foundries, such as those run by Murray & Roberts, supply the industry
with cast iron and aluminium.
The catalytic converter sector experienced incredible growth for
a number of years but some volatility in the platinum mining sector,
together with increased interest in electric vehicles and hybrids, means
that exporters (largely based in Port Elizabeth) have had to work harder.
SJM Flex SA, manufacturer of flexible, stainless-steel couplings,
was named overall exporter of the year by the Exporters’ Club in 2016.
Catalytic converter Eberspächer SA won a merit award in the corporate
category for what the judges called its “entrepreneurial flair and major
accomplishments”. Testing company Jendamark Automation also won
a merit award.
Firestone was the first tyre company to be established in Port
Elizabeth. It was soon followed by Goodyear (in Uitenhage) and General
Tyre (now Continental Tyre SA). Continental has about 1 600 employees
and sells tyres domestically and internationally. Bridgestone has
production facilities in Port Elizabeth and Brits.
Both the Coega IDZ and the East London IDZ are trying to attract
companies in the components manufacturing sector.
ONLINE RESOURCES
Automotive Industry Export Council: www.aiec.co.za
Automotive Industry Development Centre: www.aidc.co.za
Automotive Production and Development Programme:
www.thedti.co.za
Catalytic Converter Interest Group: www.sassda.co.za
Coega IDZ: www.coega.co.za
East London IDZ: www.elidz.co.za
National Association of Automotive Component and Allied
Manufacturers: www.naacam.co.za
National Association of Automobile Manufacturers of South
Africa: www.naamsa.co.za
43 EASTERN CAPE BUSINESS 2017
OVERVIEW
Energy
Gas and renewable energy are creating a new energy landscape.
SECTOR INSIGHT
A large LNG plant has been
allocated to the Coega IDZ.
• Wind power projects
have mushroomed in the
Eastern Cape.
Anumber of major projects are transforming the energy
sector in the Eastern Cape. Between October 2015, when
the 335MW Dedidsa peak power plant started operating
within the Coega Industrial Development Zone outside Port
Elizabeth, and October 2016, when the national Department of Energy
announced that the same site had been chosen to be location of a
1 000MW Liquefied Natural Gas (LNG) plant, hundreds of megawatts
were connected to the national grid as the province’s many new wind
farms kicked into operational mode.
The Liquefied Natural Gas Independent Power Producer Procurement
Programme is part of the broader programme of the Department
of Energy which encourages private investment in renewable energy,
namely the Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP). Fully a quarter of the projects so
far approved in this national programme have been allocated to the
Eastern Cape with 91% of these being wind projects and the balance
solar photo-voltaic. A vast new industry has been created in a very short
space of time, and it is clear that investors still have appetite for more.
Gas
The Dedisa power plant is one the first gas-fired plants in the country to
be run by a private consortium. Engie (formerly French firm GDF-Suez),
Legend Power Solutions, Mitsui (Japan) and the Peaker Trust which
represents local residents, have
jointly signed a 15-year power
purchase agreement with Eskom.
The new LNG facility will not
only inject some R25-billion
into the regional economy,
but confirm a shift to gas as a
power source which is one of
national government’s recently
announced objectives.
Large commercial gas companies
such as Afrox and Air
Products have plants within the
Coega IDZ. First Automobile
Works has established its motor
assembly plant next door
to Air Products’ air separation
unit, allowing it ready access to
the industrial gas that it needs.
Liquid oxygen and nitrogen
play important roles in the
metals processing sector for
cutting and laser applications.
The company believes that
having these gases readily
available plays strategically
into the provincial government’s
industrial development
strategy.
EASTERN CAPE BUSINESS 2017
44
OVERVIEW
Renewable energy
If the power produced through
the REIPPPP were to be consumed
where it is made, the Eastern Cape
would soon be producing 60%
of its own needs (the power is in
fact sent to the national grid for
redistribution). The province consumed
8 358GWh of electricity in
2015 or 3.7% of the national total.
The average lead time in
the 11 projects that have so far
been approved in the province
is two years, with local content
averaging out at about 47%.
When the projects are complete,
R142.9-billion will have been
spent on procurement, R65.7-
billion of which will be local.
Wind projects in the province
include Globeleq’s 138MW
Jeffrey’s Bay facility, the 140MW
Cookhouse project (African Clean
Energy Developments) and two
run by Cennergi at Tsitsikamma
(94MW) and Bedford (134MW).
Cennergi is a joint venture between
South African resources
company Exxaro and Indian
company Tata Power. There are
a number of other projects with
capacities ranging from 20MW
to 97MW.
Scatec Solar has commissioned
a plant in Burgersdorp. The
75MW plant has panels mounted
on single axes, enabling them to
track the sun and optimise electricity
generation by a further
20%.
The Coega IDZ is working on
positioning itself as a renewable
energy hub. The Department of
Trade and Industry (dti) offers various
green technology incentives.
Electrawinds, Universal Wind and DCD Wind Towers are three RE
companies with a presence in the Coega IDZ.
The energy sector is also creating potential for manufacturers. In
the East London Industrial Development Zone (ELIDZ), for example,
Spanish firm ILB Helios is producing solar panels units for use in the
South African market.
Other
Eskom is pursuing plans for more nuclear power to be added to the
national grid. One of the possible sites is Thyspunt near Cape St Francis.
There is strong opposition from archaeologists and environmentalists.
The discovery of shale gas reserves in the Karoo Basin may offer another
opportunity but the topic is almost as controversial as the nuclear option,
as opponents of “fracking”, as the recovery process is called, argue that
underground water supplies might be contaminated.
Small-scale hydropower projects have some potential in deep rural
areas. The largest of the province’s four hydropower stations, Colley
Wobbles in the Mbashe catchment area (maximum capacity 42MW), has
been ineffective due to rising silt levels. The Umzimvubu Dam project is
expected to add power to the grid.
Two bio-digesters have been commissioned in the Keiskammahoek
area. A community training centre runs the project which supplies fertiliser
and gas for cooking.
A bio-ethanol project intended for Cradock has been delayed for
some time by uncertainty about what feedstock to use. The Eastern Cape
Rural Development Agency, supported by the Industrial Development
Corporation, is working on a plan to incentivise producers without
affecting food security.
ONLINE RESOURCES
Coega IDZ: www.coega.co.za
Department of Trade and Industry: www.thedti.gov.za
East London IDZ. www.elidz.co.za
IPP Projects: www.ipp-projects.co.za
National Department of Energy: www.dme.gov.za
Southern African Biofuels Association: www.saba.za.org
South African Photovoltaic Industry Association:
www.sapvia.co.za
South African Renewable Energy Association: www.sarec.org.za
Southern Africa Solar Thermal and Electricity Association (CSP):
www.sastela.org
South African Wind Energy Association: www.sawea.org.za
45 EASTERN CAPE BUSINESS 2017
OVERVIEW
Water
The Eastern Cape is tackling water shortages through new dams and improved controls.
SECTOR INSIGHT
The Umzimvubu Dam project
will provide water and hydropower.
• Rhodes University’s
Institute for Water
Research tests water
quality.
Water services are provided to the citizens of the Eastern
Cape by 17 water service authorities which oversee
163 drinking water supply systems. Muncipalities and
Amatola Water are the primary providers of services.
Purification, desalination, water-leakage management and wastewater
treatment are some of the problems facing the sector as a whole,
and solutions are urgently needed. This is an important issue that
entrepreneurs with good ideas would do well to tackle. According to
Water Wheel magazine, 37% of water delivered to the nation’s municipalities
is lost. This challenge presents an opportunity for companies
who can find a solution, for example by providing better pipes and
connections and smart metering.
A water supply and hydropower project is underway on the
Umzimvubu River. The R12-billion mega-project entails the construction
of two multipurpose dams, Ntabelanga and Laleni Dams, on the
Tsitsa River, which is a tributary of the Umzimvubu, to supply irrigated
agriculture, domestic and industrial water requirements, and hydropower
generation in the catchment area. The smaller dam at Tsitsa
Falls will supply the hydropower
element of the project.
The Umzimvubu catchment
and river system stretches for
over 200km from its source in
the Maloti-Drakensberg watershed
on the Lesotho escarpment
to Port St Johns. A large
number of organisations and
municipalities are in partnership
to preserve the river system and
surrounding catchment area. The
river and adjacent forests, grasslands,
thickets and dune vegetation
are amazingly diverse but
are threatened in various ways.
The Umzimvubu Catchment
Partnership Programme wants
to find ways protect the environment
while helping with poverty
alleviation through the provision
of water, erosion control and fodder
for livestock and food security.
Inter-basin water transfers are
the norm in South Africa. In the
1950s, the Orange River Project
EASTERN CAPE BUSINESS 2017
46
OVERVIEW
delivered water from the Orange
River to citrus farmers in the faraway
Eastern Cape. This project
made the citrus industry possible
in places like Addo.
Amatola Water manages
bulk water infrastructure across
50 000km², encompassing the district
municipalities of Chris Hani
and Amathole, together with
portions of other municipal areas.
Backlogs in rural areas and smaller
municipalities are still prevalent,
and this water authority is playing
a key role in reducing and
eradicating these inequalities.
Among the projects that
Amatola Water is involved in are
Nooitgedacht/Coega low-level
project in the (Nelson Mandela
Bay Metropolitan Municipality),
the water and waste water
infrastructure upgrade (King
Sabata Dalindyebo), the Makana
Right of Use project, the Ndlambe
Regional Bulk Water Supply, the
Nahoon-East Coast Bulk Supply
Pipeline and the upgrades of
several Amatola Water plants.
The long-term drought that
afflicted South Africa brought
several responses from the
Department of Water and
Sanitation (DWS). These included
siphoning water 530km away
from Katse Dam in Lesotho to
Aliwal North, obtaining a total
of 10 giant water tanks (18 000L
capacity) and refurbishing 25
boreholes in Mbashe, as well
as the stockpiling of water in
Mdantsane in Buffalo City. These
water shortages have led to the
development of the Eastern Cape
Water Master Plan in an effort to
alleviate the drought situation in
the province.
In the 2016 new financial year, DWS approved a budget of R6.09-
million, which includes the Hyacinth project. The invasion of the
aquatic weed needs to be controlled and, if unchecked, will disrupt
water systems throughout the province. Importantly, clearing water
hyacinth can provide significant volumes of biomass for the creation
of alternative bioenergy.
Municipal water
The Eastern Cape Development Corporation is helping the Makana
Municipality in terms of the Integrated Social Infrastructure Delivery
Programme (ISIDP). With the city of Grahamstown housing many
schools and a university (and the National Arts Festival), the Makana
Water Crisis Intervention Project was seen as strategically important.
The Nelson Mandela Bay metropole currently gets its water from 10
dams, six of which are owned by the municipality. The Churchill and
Impofu Dams supply half the total supply, with the latter dam having
a full storage capacity of 105-million cubic metres. The municipality
maintains about 3 000km of reticulation water mains and about 650km
of bulk-water pipelines. Nelson Mandela Bay Municipality operates six
waste-water treatment works.
The Municipal Green Drop Certification Programme was introduced
in 2008 as an incentive-based regulation of waste-water quality
and waste-water management systems in South Africa. The Buffalo
City Metropolitan Municipality and Nelson Mandela Bay Metropolitan
Municipality have both been recipients of the Green Drop accolade.
The Rhodes University Institute for Water Research is one of several
institutions in the country that conducts research into water quality. A
lot of the institute’s funding comes with project-related grants from
the national Water Research Commission, some students receive funding
from the Carnegie Foundation and Unilever sponsors the Unilever
Centre for Environmental Water Quality, a unit within the institute.
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).
ONLINE RESOURCES
Amatola Water: www.amatolawater.co.za
Department of Water and Sanitation: www.dwa.gov.za
Umzimvubu Catchment Partnership Programme:
www.umzimvubu.org
Water Institute of South Africa: www.wisa.org.za
Water Research Commission: www.wrc.org.za
47 EASTERN CAPE BUSINESS 2017
FOCUS
Amatola Water projects
The Amatola Bulk Water Infrastructure Upgrade
Project is set to eliminate supply backlogs.
The Amatola Water Bulk Infrastructure Upgrade Project is one of
the utility’s largest projects to date. Amatola Water is upgrading
the infrastructure of its water supply schemes at Peddie, Sandile,
Debe Nek, Masincedane, Binfield and Nahoon. These upgrades
will allow the utility to provide bulk potable water capacity, promote
the drive towards the elimination of backlogs, and also achieve the
organisation’s objective of increasing water supply to 750 litres per
household per day. The project will also provide reticulation infrastructure
to eliminate water supply backlogs in 4 057 households within
the supply boundaries of the schemes, and extend supply to over
47 142 households. The project has been allocated R500-million over
three financial years under the Department of Water and Sanitation’s
Regional Bulk Infrastructure Grant (RBIG) programme.
Amatola Water appointed to complete Amathole’s
Dry Sanitation project
Amatola Water has been appointed by the Department of Water and
Sanitation as Project Implementing Agent for the completion of the
Amathole District Municipality’s
(ADM) Dry Sanitation programme.
The project will be implemented
in three phases and comprises the
construction of 36 291 Ventilated
Improved Pit (VIP) units in six local
municipalities within ADM.
Phase 1 entails the construction
of 15 000 VIP units, while
Phases 2 and 3 respectively entail
the completion of 10 259 new
units for the Mnquma, Amahlathi
and the Great Kei regions, as well
as the completion of 11 032 new
units for the Nkonkobe and
Ngqushwa regions.
The construction of the VIP
units will help restore dignity to
the communities and contribute
to the respective area’s socioeconomic
development through
the utilisation of local labour and
SMMEs during the construction
phases.
The project is estimated to
cost around R508-million and is
anticipated to be complete in
December 2017.
Increased water supply
capacity for Nelson
Mandela Bay
Amatola Water has been appointed
by the Minister of Water and
EASTERN CAPE BUSINESS 2017
48
FOCUS
Sanitation to fast-track the augmentation
of the Nooitgedacht/
Coega Low-Level Scheme to increase
capacity of water supply
from the Orange River System to
Nelson Mandela Bay from 70Ml/d
to 160Ml/d.
The project includes the
construction of a 45Ml balancing
reservoir at the Olifantskop
reservoir site; rehabilitation of
the Missionvale Pipeline; and
civil works for a 70Ml/d extension
to the Nooitgedacht water
treatment works, including a 6Ml
clear water well, six gravity filters,
a sedimentation tank and inlet
structure, pipeline extensions
and control valves and a filter
backwash recycle facility.
The total project cost is estimated
between R318-million
and R510-million, with a budget
of R128-million approved for the
2016/17 financial year. The construction
phase is currently underway
and the project is expected
to be complete by October 2018.
Thousands in Ndlambe
communities to benefit
from major bulk water
supply project
Communities within the Ndlambe
Local Municipality are set to benefit
from a R370-million bulk water
supply project aimed at providing
long-term sustainable bulk water
supply in the area.
The Ndlambe Regional Bulk
Water Supply project entails the
construction of:
• A new Reverse Osmosis (RO)
plant at Port Alfred.
• Supply of groundwater from Central Bolt.
• Brine discharge line to the sea outfall.
• New potable storage reservoir and internal pipelines at Port Alfred.
• New reservoir, pump station and pipeline at Cannon Rocks.
• New reservoir and pipeline at Alexandria.
The project will augment water supply to the coastal towns of Port
Alfred, Alexandria and Cannon Rocks.
This will ensure an increase in the quantity and quality of water
supplied to the area.
Water supply to Alexandria will also be augmented through the construction
of a new rising main from the coastal well fields at Fishkraals
and Cape Padrone.
Bathurst, Boknes, Kenton-on-Sea, Seafield/Kleinemonde, and
Bushman’s River are also earmarked to benefit from this project.
The project commenced in September 2011 and will be complete
in February 2017.
49 EASTERN CAPE BUSINESS 2017
OVERVIEW
Information and
communication technology
Incubators and laboratories are boosting innovation.
A
number of public and private initiatives are under way to
boost the information and communication technology (ICT)
sector in the Eastern Cape.
Development agency Eastern Cape Development
Corporation (ECDC) has a specific emphasis on the ICT sector in terms
of the loans that it disburses. The ECDC works through the Eastern
Cape Information Technology Initiative (ECITI), which also promotes
the film sector.
The ECITI is designed to stimulate the creation of small, micro and
medium enterprises. Among recent topics dealt with at the annual ICT
Summit organised by ECITI are ICT infrastructure, innovation, social
transformation in ICT, digital skills, ICT codes and how to avoid vendor
mistakes in government.
The East London, Queenstown and Umthatha based branches
of ECITI offer office space to start-up enterprises as well as capacity
building initiatives. This virtual support can be given to similar companies
throughout the Eastern Cape province focussing and ensuring
inclusivity for rural communities.
The director of one of these companies is very positive about the
support received from the ECITI. Khanyisa Ngewu of On the Record,
a communications and media management company says, “I believe
the most notable value-add has been the training I received in Value
Added Tax, project management and financial management; as well
as access to legal advice relating to handling contracts.”
The Small Enterprise Development Agency (Seda) runs an ICT incubator
in the Nelson Mandela Bay Metropolitan Municipality. Known
as the Seda Nelson Mandela Bay ICT Incubator (SNII), support is given
in a wide range of sub-sectors such as graphics, systems analysis,
hardware and software. A new research and development laboratory
was established by SNII in 2016, focussing on apps, mechanical and
technical prototypes and software solutions.
SECTOR INSIGHT
A community telecoms network
has been established in
a rural area.
• ICT start-ups can get office
space and support
from the ECITI.
SNII also hosted a national conference
on “Universal Affordable
Access to Communications in
South Africa” in 2016. An example
of what can be done to reduce
telecommunication costs in
rural areas was presented by the
University of the Western Cape,
who have teamed up with the
Mankosi community in a rural part
of the Eastern Cape and created
the Zenzeleni Network. This is essentially
a community telecoms
company where local calls are
free, data is considerably cheaper
and calls to other networks half
the normal cost.
The Small Enterprise
Development Agency (Seda)
is an agency of the National
Department of Trade and
Industry, and gives non-financial
support to entrepreneurs.
The National Electronic Media
Institute of South Africa (NEMISA)
was originally created to create
skills for the broadcasting
EASTERN CAPE BUSINESS 2017
50
OVERVIEW
environment, but it is now being
integrated with two other
entities, eSkills Network and the
Institute for Satellite and Software
Applications (ISSA) to form Ikamva
National e-Skills Institute (iNeSI).
The focus of the new entity is
on developing e-skills capacity
in South Africa by creating
partnerships that guide e-skills
initiatives. The head office is in
Johannesburg and the Eastern
Cape Colab is based at the Walter
Sisulu University and its focus is
“ICT for Rural Development”.
The Universal Service and
Access Agency of South Africa
(USAASA) has concentrated
on providing connectivity for
schools in five provinces, including
the Eastern Cape, and smart
devices have been distributed
to schools. Teachers are being
trained on how to use the smart devices, in order to improve the
learning experience of the students.
A number of incentives relevant to companies and educational
bodies in the ICT sector are available from the Department of Trade
and Industry. These include:
• The Technology and Human Resources for Industry Programme
(THRIP): companies and educational institutions working to improve
technology; 50/50 cost sharing grant to a maximum of R8-million
• Technology Development Fund: the Technology Innovation Agency
makes up to R50-million available for up to 10 years
• Technology Venture Capital: managed by the Industrial
Development Corporation; commercialisation of innovative
products, processes and technologies.
ONLINE RESOURCES
Department of Trade and Industry: www.dti.gov.za
Eastern Cape Development Corporation: www.ecdc.co.za
Eastern Cape Information Technology Initiative: www.eciti.co.za
Technology Innovation Agency: www.tia.org.za
Ikamva National eSkills Institute: www.enesi.org.za
South African State Information Technology Agency: www.sita.co.za
A champion for a connected,
empowered and informed Eastern Cape
The Eastern Cape Information Technology Initiative supports small, micro and
medium enterprises (SMMEs) in the ICT, film and media sectors in the Eastern
Cape. ECITI has strategic partnerships with colleges and universities, state
agencies and with companies in the private sector.
Join our Incubation Programme
We offer shared services and infrastructure to in-house companies, and a range
of business support services, from business mentorship and coaching, advisory
support and skills development to seminars in financial management, networking
forums and linkages to local and international markets, funders, potential investors,
industry experts and academia.
Strategic Partnership
ECITI constantly strives to establish strategic partners with government, funders,
corporates, academia and local entrepreneurs in order to carry out the vision. The
incubator extends an invite for partners in capacity building, access to markets and
networks building that would directly benefit the enterprises that are incubated within
ECITI and thus contribute to the economic viability of the Eastern Cape province.
Contact details:
Telephone: +27 87 373 0970 | Email: info@eciti.co.za | Website: www.eciti.co.za
Block B, ELIDZ Science & Technology Park, Lower Chester Road,
Sunny Ridge, East London EC 5201
OVERVIEW
Banking and finance
Formal banking is expanding its reach into rural areas.
SECTOR INSIGHT
The renewable energy sector
is taking loans to finance new
developments.
• Nedbank Business
Banking has a new headquarters
in East London..
News that Postbank (run by the South African Post Office)
received a first-level licence in 2016 was well received in the
Eastern Cape, a province with a high proportion of people
living in rural areas. The Post Office has an unmatched reach,
even in remote parts of the country. By taking these services to rural
areas, it is hoped that small businesses can be more easily created and
given better support where they already exist.
National government wants the bank to serve a developmental
agenda. Once a board has been appointed and a company formed,
the Reserve Bank is likely to grant the full licence. The current Postbank
focusses on taking deposits and savings accounts. Postbank has secured
a R3.7-billion loan to enable it to open its own loan book.
A somewhat informal form of banking (which is popular in rural and
urban settings) has the potential for tremendous growth. The stokvel
(savings clubs) market is estimated at R44-billion in South Africa and
developing products for this market is seen as a possibly lucrative outlet
for South African financial services companies. The Eastern Cape will
be no exception.
With the renewable energy sector being actively pursued in South
Africa, a whole new sector in need of funding has opened up for banks,
and the Eastern Cape has attracted about a quarter of all new projects
in the bidding process by independent power producers.
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 Eastern Cape, but the big news in
the sector since 2001 has been the
emergence of 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 ninemillion)
are top of the list.
Investment company PSG
Group is one of the biggest investors
in Capitec and is a majority
shareholder in PSG Konsult,
a financial services company.
Like other companies of its type,
PSG Konsult is present in the big
Eastern Cape towns, but it also
has a presence in regional centres
such as Middelburg and Aliwal
North. From the Karoo Midlands
towns of Graaff-Reinet, Cradock,
Adelaide and Somerset East, the
firm of Gerber, Botha & Gowar
dispenses financial advice across
large parts of central South Africa.
Standard Bank, which was
founded in Port Elizabeth in 1862,
EASTERN CAPE BUSINESS 2017
52
OVERVIEW
now operates in 32 countries (20
in Africa), has nearly 69 000 employees
and assets in the region
of $16-billion. Together with the
other banks, consulting companies
and other firms in the financial
and business services sector,
it is responsible of 19.2% of the
Eastern Cape’s Gross Domestic
Product (GDP, StatsSA). The sector
provides employment for
141 000 people.
In Port Elizabeth there is a
geographic concentration of financial
services: the city’s own
financial district stretches along
a section of Cape Road from Mill
Park to Newton Park and includes
the Greenacres shop and office
complex. Here can be found the
offices of PSG Konsult, Liberty Life,
Alexander Forbes, Hollard and
Momentum. Nedbank Business
Banking has its headquarters
just one block away from the
Greenacres complex. Only AON
appear to buck the trend, with
offices in Central.
Also on Cape Road and in the
Greenacres complex is FNB’s regional
office, FNB Newton Place.
This building houses all of the
FirstRand group’s offices, such as
Rand Merchant Bank, FNB Private
Clients and FNB Online.
The agreement that Absa
Business Bank (ABB) signed with
agricultural company BKB allows
farmers to borrow money against
their produce. The bank flagged
the event as the precursor to a
possible future agricultural bank.
With ABB’s experience in the agricultural
field, and BKB’s access
to 19 000 primary producers, the
agreement can unlock a considerable
amount of investment in the
agricultural and agri-processing sector. BKB has a national presence,
but its headquarters are in Port Elizabeth. It is active in many spheres
and has a strong wool and mohair profile.
Absa Business Banking has developed a database where potential
service or good suppliers can be identified and verified. The
Procurement Portal will include details about black empowerment
status and tax clearance. Absa also supplies short-term financing to
SMME vendors.
Nedbank Business Banking has a new focus on agriculture, with
business managers in Port Elizabeth, Humansdorp and East London
all supported by agricultural specialists. Nedbank sponsors the Komga
Show and the bank has paid out loans to the Humansdorp Co-op which
specialises in citrus and dairy products.
Nedbank’s new building in East London won the “Development
of the Year” award from the Buffalo City chapter of the SA Property
Owners’ Association. The offices of Nedbank Business Banking in
Bonza Bay Road won praise for the courtyard concept incorporated
into the design.
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
Eastern Cape Development Corporation: www.ecdc.co.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 Institute for Chartered Accountants:
www.saica.co.za
South African Reserve Bank: www.resbank.co.za
53 EASTERN CAPE BUSINESS 2017
OVERVIEW
Development finance
and SMME support
Seed money is available for forestry ventures and much more.
SECTOR INSIGHT
Recycled pineapple waste
is living again as outdoor
furniture.
• SEDA opened a new technology
research and development
centre in 2016.
There are a wide range of options available for the financing of
small business ventures in the Eastern Cape. The big retail banks
have desks dedicated to promoting small enterprise and several
agencies have a specific focus, for example the Eastern Cape Rural
Development Agency (ECRDA).
In promoting forestry enterprise, the ECRDA reported in 2015/16 having
made R15-million available, while the Eastern Cape Development
Corporation (ECDC) had contributed R8.3-million and the Development
Bank of Southern Africa (DBSA) R64-million. This is a good example of
the variety of funding mechanisms available.
The Industrial Development Corporation (IDC) is another financing
institution that is very active in the Eastern Cape. Several development
agencies receive support from the IDC: Nelson Mandela
Bay Development Agency; Blue Crane Development Agency; and
Nkonkobe Development Agency.
Two of the ECDC’s seven business units are devoted to small business:
Development Finance and Enterprise Development. The ECDC
has several financial products tailored to meet the various needs of
business, entrepreneurs and investors, ranging from short-term to
long-term finance and small- and micro-loans. The ECDC and the
Technology Innovation Agency (TIA) jointly run the TIA-ECD Innovation
Seed Fund Programme, which aims to identify and co-fund earlier
stage technology innovation projects in the Eastern Cape.
In the first three quarters of
2015/16, the ECDC disbursed
R72.1-million to 198 small businesses,
creating about 1 415 jobs.
Most of the money went to rural
areas, including the OR Tambo
(28%) and Alfred Nzo (14%) and
Amathole (4%) districts. Sixtyone
youth-owned businesses
received R20.7-million and
R15.5-million went to 58 womenowned
businesses.
In its role as a provider of advice,
the ECDC assisted a delegation
from the Amahlubi Traditional
Council when it attended the
World Forestry Congress. This
is part of the DBSA Jobs Funds
Forestry projects. Help Desks
have been established to support
small business in Port Elizabeth
and East London.
One of the companies supported
by the ECDC, outdoor
furniture manufacturer PolyFibre
Pty (Ltd), has received SABS approval
for its products, which
EASTERN CAPE BUSINESS 2017
54
OVERVIEW
means the company can move
to commercialisation. PolyFibre
uses recycled plastic and pineapple
waste.
The Small Enterprise
Development Agency (Seda)
is an agency of the national
Department of Trade and
Industry, and gives non-financial
support to entrepreneurs
through training, assistance with
filling in forms, marketing and
creating business plans. It often
helps small businesses draft applications
for loan finance. Seda’s
main provincial office is East
London, with nine other offices
located throughout the province.
Several of Seda’s technology
incubators are in the Eastern
Cape. Port Elizabeth is the head
office of the Chemin incubator
which supports SMMEs in the
downstream chemical sector.
Furntech (a furniture incubator)
has a branch in Mthatha and there
are also construction incubators
in Mthatha and Port Elizabeth.
The Seda Nelson Mandela Bay
ICT Incubator (SNII) promotes
entrepreneurship in the ICT sector.
It also supports several small
companies in sub-sectors ranging
from hardware and software
to graphics and web and systems
analysis. In 2016, a new technology
research and development
centre (R&D Lab) was launched
at its Newton Park technology office
in Port Elizabeth. The facility
offers assistance and support to
design and develop apps, software
solutions, as well as electronic
and mechanical device
prototypes.
The Masisizane Fund offers
loan financing at good rates and
training through its Business Accelerator programme. As a non-profit
initiative of the Old Mutual Group, the fund focusses on the cash
flow of potential businesses rather than insisting on security in the
form of property or something similar.
In 2016, Absa Bank launched a new Enterprise Development
Centre, the eighth of its kind in South Africa. The centre aims to
give small businesses access to finance and to help entrepreneurs
find markets.
As part of its Small Contractor Development, Training and
Community Participation programme, the South African National
Roads Agency (SANRAL) offered training in 2016 to 20 people from
four SMME sub-contractors in the making of dolosse. Dolosse are the
large inter-locking blocks of concrete used to protect the N2 and railway
line from the sea. Eight of the 2.5-ton dolosse are manufactured
every day. The project’s main concrete subcontractor is Dynaform.
The National Empowerment Fund (NEF) provides financial support
from R250 000 up to R75-million for start-ups, the expansion of
existing business, as well as the acquisition of equity. In the Eastern
Cape, the NEF is supporting companies working in the fields of solar
energy, restaurant franchises and transport.
The Nelson Mandela Bay Business Chamber has a section devoted
to SME support on its website and offers mentorship to start-ups
and entrepreneurs. The Border-Kei Chamber of Business is similarly
supportive.
The Eastern Cape Exporters’ Club honoured two SMEs in 2016:
Mend-A-Bath International (whose headquarters are in Port Elizabeth)
won a merit award for entrepreneurial flair and Hansens Engineering
won for increasing turnover and profitability in the medium
enterprise category.
All businesses are expected to register with the Department of
Labour and contribute towards the Unemployment Insurance Fund.
ONLINE RESOURCES
Business Partners: www.businesspartners.co.za
Department of Trade and Industry: www.dti.co.za
Development Bank of Southern Africa: www.dbsa.org
Eastern Cape Rural Development Agency: www.ecrda.co.za
Eastern Cape Development Corporation: www.ecdc.co.za
Industrial Development Corporation: www.idc.co.za
Unemployment Insurance Fund: www.labour.gov.za
National Empowerment Fund: www.nefcorp.co.za
South African Institute of Entrepreneurship:
www.entrepreneurship.co.za
Small Enterprise Development Agency: www.seda.co.za
Small Enterprise Finance Agency: www.sefa.org.za
55 EASTERN CAPE BUSINESS 2017
OVERVIEW
Tourism
Events and adventures are drawing more visitors to the Eastern Cape.
SECTOR INSIGHT
Nelson Mandela Bay has won
the bid to host the IRONMAN
World Championships in 2018.
• Dolphin tourism could be
a new trend.
• Nelson Mandela Bay
metro earned R7.3-billion
from tourism in 2016.
South Africa has hosted the world’s best in cricket, rugby and
football. Now some of world’s fittest athletes will battle it out
in and near the sea in Port Elizabeth in the 2018 IRONMAN
70.3 World Championship. Scheduled for the first two days in
September, this is a first for Africa, but not entirely surprising because
the Nelson Mandela Bay Metropolitan Municipality has been hosting
the Standard Bank IRONMAN African Championship since 2015 and held
its first IRONMAN event as far back as 2004. Enthusiastic crowds of up to
80 000 have been known to line the route and the event will undoubtedly
be a fillip for the local economy.
More than 6 000 athletes are expected to participate from more than
100 global qualifying events.
Buffalo City has its own IRONMAN 70.3 triathlon. In 2017, the 10th running
of the event was held in the last week of January, and East London
is home to several other popular cycling and running events.
Nelson Mandela Bay Tourism lists a series of events hosted in 2016 to
prove the metropole’s credentials as an Event City: the Commonwealth
Judo Championships, IRONMAN Africa, the Ocean Racing Series (a world
championship), the Herald Cycle Tour, and matches in the international
Super Rugby series. The tourism body gave the public relations value of
the rugby hosting as R18-million with an “economic spin-off in excess
of R150-million”.
The tourism industry generated R7.3-billion in 2016 in Nelson Mandela
Bay according to Nelson Mandela Bay Tourism. Bed nights rose to 870
596 from just over 644 000 the year before.
Eastern Cape Tourism has hit on the brand for the province as
“Adventure Province Eastern Cape”. But such is the variety on offer for
tourists in the Eastern Cape that any number of sub-brands could be
offered to cater to tourists with
particular interests.
In the last days of June every
year, the Eastern Cape hosts thousands
of art aficionados because
of the National Arts Festival. Held
since 1974 in Grahamstown, the
festival now attracts huge crowds
(more than 240 000 in 2015) to
watch more than 1 000 performances
in every conceivable
venue in the small university town.
Nearby Port Elizabeth has several
identities: Event City is one,
Water Sports Capital of South
Africa is another. In 2016 another
title was claimed – Bottlenose
Capital of the World. There are apparently
30 000 dolphins in Algoa
Bay, making it the biggest such
concentration in the world. Nelson
Mandela Bay Tourism is considering
launching a Dolphin Festival
to run during Marine Month in
October.
The province’s regions each
have distinctive features and they
are aptly branded on the provin-
EASTERN CAPE BUSINESS 2017
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OVERVIEW
cial tourism body’s informative
website: Kouga has superb golf
at St Francis Links and matchless
surfing at Jeffrey’s Bay; spectacular
routes traverse the wilderness
of Baviaanskloof; Frontier Country
offers the history of a fractured
past and peerless game reserves;
the Greater Addo Route encompasses
the huge park devoted to
elephants; the Friendly N6 takes
visitors high into the snowy
mountains near Lesotho; and
the Wild Coast offers nature at its
pristine best.
New developments
The decision by the South African
National Roads Agency (SANRAL) to
go ahead with plans to build bridges
over the Mtentu and Msikaba rivers
which will open up the quite remote
eastern parts of the province
(to mining and tourism).
SA Express airline announced
in 2016 a new direct flight from
Cape Town to Mthatha. Port
Elizabeth and East London have
large airports and regular flights
to all of South Africa’s other major
destinations.
The move by the Mandela Bay
Development Agency (MBDA) into
the renovated Old Tramways building
near the mouth of the Baakens
River has created a new meeting
space in a characterful building
and more than 1 000m² of new
exhibition space.
Within its first year of operation,
the Tramways building hosted a
visual arts exhibition (Tramways
Memory Project) and a fashion
show and it hosts a food market on
the first Saturday of every month.
The building is also close to the section of the Port of Port Elizabeth
that is designated to become a waterfront which will include a marina
and cruise-liner terminal. These plans depend on Transnet moving its
manganese storage to the Port of Ngqura.
Another MBDA initiative is boosting the city’s tourist offering: Route
67 consists of 67 public art works symbolising the years spent by Nelson
Mandela in the service of his fellow man. It starts at the Campanile (a
tribute to the 1820 Settlers) and forms part the greater Nelson Mandela
Bay Arts Journey.
Hotels and casinos
South Africa’s large branded hotel groups have a strong presence in
the Eastern Cape but there are also groups whose focus is more concentrated
on the province (like the Kat Leisure Group) together with
independent hotels and resorts such as East London’s Blue Lagoon
Hotel and Conference Centre, located in a prime spot at the mouth of
the Nahoon River.
Kat Leisure Group’s offering extends from the well-known Kennaway
Hotel, which has been a feature on East London’s beachfront for many
years, to the Queens Casino and Hotel in Queenstown and accommodation
options in the mountainous interior of Katberg and Hogsback.
Premier Hotels has two hotels in East London and the Mpanga
Private Game Reserve just beyond the city limits. Premier Hotels also
manages the East London International Convention Centre which offers
17 conferences room in various configurations, boardrooms and
an exhibition hall.
Many resorts take advantage of the beautiful bays and inlets of the
Eastern Cape, both along the Wild Coast, and nearer to cities, such as
the Mpekweni Beach Resort which is located between Port Alfred and
East London.
The Eastern Cape Gambling and Betting Board issues gaming
licences and regulates the industry in the province.
Sun International’s three properties extend along the coast from the
Wild Coast Sun Resort and Casino in the far east, to Port Alfred’s Fish
River Sun and Country Club Resort and the five-star Boardwalk Casino
and Entertainment World in Summerstrand, Port Elizabeth. Located
close to the blue-flag Hobie Beach, the Boardwalk Hotel, Convention
Centre and Spa won a 2016 Lilizela Tourism Award for excellence in the
five-star meetings, exhibitions and special events category.
Tsogo Sun has five Eastern Cape properties. In East London the
four-star Southern Sun Hemingways is next to the Hemingways Casino
complex and the city has one Garden Court, as does Mthatha. Port
Elizabeth has a Garden Court and a SUN1, both near Humewood Beach.
City Lodge has one property in East London and five in Port Elizabeth,
across four brands.
57 EASTERN CAPE BUSINESS 2017
OVERVIEW
Along the beachfront at Summerstand can be found the Protea
Marine, a 173-room Radisson Blu and the Beach Hotel. The last-named
hotel is run by the Port Elizabeth Hotel Group which also has in its
portfolio Hacklewood Hill Country House, The Sands @ St Francis and
Pumba Private Game Reserve.
Curious in Buffalo City
The dodo, a flightless bird from Mauritius, famously became extinct
and was last spotted in the 1660s. Museums around Europe had various
parts of the animal as specimens but no-one realised that they were
holding anything valuable, until just about all of them were either
lost or thrown away. But the East London Museum has something
truly unique – a dodo egg! Another creature that was thought extinct
until one was found again in 1938, the fascinating coelacanth, is one
of the museum’s most popular displays. The discovery of “Old Four
Legs” as the creature came to be known, caused a stir at the time.
The museum’s shipwreck and palaeontological sections are also very
good. The nearby East London Aquarium is South Africa’s oldest,
having opened in December 1931.
Wildlife
The Eastern Cape Parks and Tourism Agency is in charge of 34 provincial
nature reserves within the Eastern Cape. The Addo Elephant
National Park (Addo) is arguably the province’s greatest attraction,
and is under the control of South African National Parks. Addo extends
over 180 000 hectares on land (with thousands more square
ONLINE RESOURCES
Buffalo City Tourism: www.bctourism.co.za
Calabash Trust: www.calabashtrust.co.za
Eastern Cape Gambling and Betting Board: www.ecgbb.co.za
Eastern Cape Parks and Tourism Agency:
www.visiteasterncape.co.za
Feather Market Convention Centre: wwwfeathermarket.co.za
Karoo tourism research: www.ufs.ac.za./cds
Kirkwood Wildlife Festival: www.wildsfees.co.za
Mandela Bay Development Agency: www.mbda.co.za
National Arts Festival: www.nafest.co.za
Nelson Mandela Bay Tourism: www.nmbt.co.za
South African Tourism: www.southafrica.net
Tourism Enterprise Partnership: www.tep.co.za
South African National Parks: www.sanparks.org
meterage in the marine reserve)
and attracts more visitors than
East Africa’s Serengeti National
Park. Addo uniquely offers visitors
the opportunity to view the Big
Seven, as it has more than 650
elephants, along with the rest of
the Big Five. The park includes a
marine section where great white
sharks and whales can be sighted.
The Camdeboo, Mountain
Zebra and Garden Route national
parks offer very different experiences
for the visitor, covering as
they do terrain ranging from karoo
veld and mountain plateau to
coastal forests. In addition to the
provincial and national parks, the
Eastern Cape has a large number
of high-end, luxury game
reserves and lodges. These include
the Kwantu Private Game
Reserve between Port Elizabeth
and Grahamstown. In 2016, the
reserve won Best Luxury Wildlife
Resort presented at the World
Luxury Hotel Awards.
Some luxury game lodges are
located within national parks,
such as the Gorah Elephant
Camp, which is run by Hunter
Hotels and forms part of the
Addo Park. Luxury brands sometimes
create a chain for their customers
so visitors might stay at
the boutique Summerstand hotel
in Port Elizabeth, No5 By Mantis,
on their way to another Mantis
property, the Oceana Beach and
Wildlife Reserve.
EASTERN CAPE BUSINESS 2017
58
LISTING
Eastern Cape Provincial
Government
A guide to the Eastern Cape’s provincial government
departments. Visit www.ecprov.gov.za
Office of the Premier
Premier: Phumulo Masualle
State House, Independent Avenue,
Bhisho 5605
Tel: +27 40 609 6626
Fax: +27 40 639 1419
Website: www.ecprov.gov.za
Department of Cooperative Governance
and Traditional Affairs
MEC: Fikile Xasa
Tyamzashe Building, Room 2124, 2nd Floor, Bhisho 5605
Tel: +27 40 609 5788/5789
Fax: +27 40 639 2135
Website: www.eclgta.ecprov.gov.za
Department of Economic Development,
Environmental Affairs and Tourism
MEC: Sakhumzi Somyo
2nd Floor, Beacon Hill, Hockley Close, King Williams Town 5600
Tel: +27 43 605 7006/7216
Fax: +27 43 605 7306
Website: www.dedea.gov.za
Department of Education
MEC: Mandla Makupula
Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha
Tel: +27 40 608 4202
Fax: +27 40 608 4247
Website: www.ecdoe.gov.za
Department of Health
MEC: Dr Pumza Dyantyi
Dukumbane Building, Independence Avenue, Bhisho 5605
Tel: +27 40 608 1114
Fax: +27 40 608 1118
Website: www.echealth.gov.za
Department of Human Settlements
MEC: Helen Sauls-August
31-33 Phillip Frame Road, Waverly Park, Chiselhurst, East London
Tel: +27 43 711 9777
Fax: +27 43 711 9785
Website: www.ecdhs.gov.za
Department of Roads and Public Works
MEC: Thandiswa Marawu
5 Qasana Building, Independence Avenue, Bhisho 5605
Tel: +27 40 609 4648
Fax: 086 298 5598 (SA)
Website: www.ecdpw.gov.za
Department of Rural Development
and Agrarian Reform
MEC: Mlibo Qoboshiyane
Dukumbane Building , Independence Avenue, Bhisho 5606
Tel: +27 40 609 3472
Fax: +27 40 636 3462
Website: www.drdar.gov.za
Department of Safety and Liaison
MEC: Weziwe Tikana
Stellenbosch Park, Flemming St, Schornville,
King Williams Town 5601
Tel: +27 43 604 7414
Fax: 086 298 5598
Website: www.ecprov.gov.za
Department of Social Development
MEC: Mrs Nancy Sihlwayi
Cnr Hockley and Hargreaves Streets, Beacon Hill,
King Williams Town 5600
Tel: +27 43 605 5210
Fax: +27 43 605 5472
Website: www.ecdsd.gov.za
EASTERN CAPE BUSINESS 2017
60
LISTING
Department of Sports, Recreation,
Arts and Culture
MEC: Dr Pemmy Majodina
Wilton Zimasile Mkwayi Building, 5 Eales Street,
King Williams Town 5600
Tel: +27 43 604 4101 | Fax: +27 43 642 6759
Website: www.ecsrac.gov.za
Provincial Treasury
MEC: Sakhumzi Somyo
Provincial Treasury , Tyamzashe Building, Bhisho 5605
Tel: +27 40 609 5755/5014
Fax: +27 40 639 1030
Website: www.ectreasury.gov.za
Department of Transport
MEC: Weziwe Tikana
Stellenbosch Park, Flemming St, Schornville,
King Williams Town 5601
Tel: +27 43 604 7414 | Fax: 086 298 5598
Website: www.ectransport.gov.za
Eastern Cape Local Government
ALFRED NZO DISTRICT MUNICIPALITY
Erf 1400, Ntsizwa Street, Mount Ayliff
Tel: +27 39 254 5000 | Fax: +27 39 254 0343
Email: info@andm.gov.za
Website: www.andm.gov.za
Matatiele Local Municipality
Tel: +27 39 737 8100
Fax: +27 39 737 3611
Website: www.matatiele.gov.za
Mbizana Local Municipality
Tel: +27 39 251 0230
Fax: +27 39 251 0917
Website: www.mbizana.gov.za
Ntabankulu Local Municipality
Tel: +27 39 258 0056
Fax: +27 39 258 0173
Website: www.ntabankulu.gov.za
Umzimvubu Local Municipality
Tel: +27 39 255 8500
Fax: +27 39 255 0167
Website: www.umzimvubu.gov.za
AMATHOLE DISTRICT MUNICIPALITY
40 Cambridge Street, East London
Tel: +27 43 701 4000 | Fax: +27 43 742 0337
Email: info@amathole.gov.za
Website: www.amathole.gov.za
Amahlathi Local Municipality
Tel: +27 43 683 5000 | Fax:+27 43 683 2970
Website: www.amahlathi.gov.za
Great Kei Local Municipality
Tel: +27 43 831 1028 | Fax: +27 43 831 1483
Website: www.greatkeilm.gov.za
Mbashe Local Municipality
Tel: +27 47 489 5800 | Fax: +27 47 489 5800
Website: www.mbhashemun.gov.za
Mnquma Local Municipality
Tel: +7 47 401 2400 | Fax: +27 47 491 0195
Website: www.mnquma.gov.za
Ngqushwa Local Municipality
Tel: +27 40 673 3095 | Fax: +27 40 673 3771
Website: www.ngqushwamun.gov.za
61
EASTERN CAPE BUSINESS 2017
Raymond Mhlaba Local Municipality
Tel: + 27 46 7400
Fax: +27 46 645 2562
BUFFALO CITY METROPOLITAN
MUNICIPALITY
117 Oxford Street, Cnr North & Oxford Streets, Trust Centre, East London
Tel:+27 43 705 2000 | Fax:+27 43 743 1688
Website: www.buffalocity.gov.za
CHRIS HANI DISTRICT MUNICIPALITY
15 Bells Road, Queenstown
Tel: +27 45 808 4600 | Fax: +27 45 838 1556
Website: www.chrishanidm.gov.za
Emalahleni Local Municipality
Tel: +27 47 878 0020 | Fax: 049 878 0112
Website: www.emalahleni.gov.za
Engcobo Local Municipality
Tel: +27 47 548 5600 | Fax: +27 47 548 1078
Website: www.engcobolm.gov.za
Enoch Mgijima Local Municipality
Tel: + 27 45 807 2606
Fax: +27 45 807 2637
Website: www.lukhanji.co.za
Intsika Yethu Local Municipality
Tel: +27 47 874 8700 | Fax: +27 47 874 0010
Website: www.intsikayethu.gov.za
Inxuba Yethemba Local Municipality
Tel: +27 48 801 5000
Fax: +27 48 881 1421
Website: www.iym.co.za
Sakhisizwe Local Municipality
Tel: +27 47 877 5200
Fax: +27 47 877 0000
Website: www.sakhisizwe.gov.za
JOE GQABI DISTRICT MUNICIPALITY
Cnr Cole and Graham Streets, Barkly East
Tel: +27 45 979 3000
Fax: +27 45 971 0251
Website: www.jgdm.gov.za
Elundini Local Municipality
Tel: +27 45 932 8100 | Fax: +27 45 932 1094
Website: www.elundini.org.za
Walter Sisulu Local Municipality
Tel: + 27 51 653 1777
Fax: + 27 51 653 0056
Senqu Local Municipality
Tel: +27 51 603 1300 | Fax: +27 51 603 0445
Website: www.senqumunicipality.co.za
NELSON MANDELA BAY METROPOLITAN
MUNICIPALITY
City Hall, Vuyisile Mini Square,
Govan Mbeki Avenue, Nelson Mandela Bay
Tel: +27 41 506 3208/9
Fax: +27 41 506 2422
Website: www.nelsonmandelabay.gov.za
OR TAMBO DISTRICT MUNICIPALITY
OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha
Tel: +27 47 501 6400
Fax: +27 47 532 6518
Website: www.ortambodm.gov.za
Ingquza Hill Local Municipality
Tel: +27 39 252 0131
Fax: +27 39 252 0699
Website: www.ihlm.gov.za
King Sabata Dalindyebo Local Municipality
Tel: +27 47 501 4000 | Fax: +27 47 531 3128
Website: www.ksd.gov.za
Mhlontlo Local Municipality
Tel: +27 47 553 7000 | Fax: +27 47 553 0189
Website: www.mhlontlolm.gov.za
Nyandeni Local Municipality
Tel: +27 47 555 5000 | Fax: +27 47 555 0202
Website: www.nyandenilm.gov.za
Port St Johns Local Municipality
Tel: +27 47 564 1207
Fax: +27 47 564 1206
Website: www.psjmunicipality.gov.za
EASTERN CAPE BUSINESS 2017 62
SARAH BAARTMAN DISTRICT
MUNICIPALITY
32 Govan Mbeki Avenue, Port Elizabeth
Tel: +27 41 508 7111
Fax: +27 41 508 7000
Website: www.sarahbaartman.co.za
Dr Beyers Naude Local Municipality
Tel: +27 49 807 5700 | Fax: +27 49 892 4319
Website: www.camdeboo.gov.za
Blue Crane Route Local Municipality
Tel: +27 49 807 5700 | Fax: + 27 49 892 4319
Website: www.bcrm.gov.za
Kouga Local Municipality
Tel: +27 42 200 2200 | Fax: +27 42 200 8606
Website: www.kouga.gov.za
Kou-Kamma Local Municipality
Tel: +27 42 288 7200 | Fax: +27 42 288 0797
Website: www.koukammamun.co.za
Makana Local Municipality
Tel: +27 46 603 6131
Fax: +27 46 622 9700
Website: www.makana.gov.za
Ndlambe Local Municipality
Tel: +27 46 624 1140
Fax: +27 46 624 2669
Website: www.ndlambe.gov.za
Sundays River Valley Local Municipality
Tel: +27 42 230 7700/0077
Fax: +27 42 230 1799
Website: www.srvm.gov.za
Municipalities in the Eastern Cape
Free State
LESOTHO
Alfred Nzo
Matatiele
KwaZulu-
Natal
Northern Cape
Western
Cape
Inxuba Yethemba
Gariep
Tsolwana
Umzimvubu
Senqu
Maletswai
Elundini
Ntabankulu
Joe Gqabi
Mbizana
OR Tambo
Mhlontlo
Ingquza
Sakhisizwe
Hill
Inkwanca
Emalahleni
Nyandeni Port
Engcobo
St Johns
King Sabata
Chris Hani
Dalindyebo
Intsika Yethu
Lukhanji
Mbhashe
Dr Beyers Naude
Blue Crane Route
Sarah Baartman
Nxuba
Makana
Nkonkobe
Mnquma
Amahlathi
Amathole
Great Kei
Ngqushwa
Buffalo
City
INDIAN OCEAN
Sundays River
Valley
Ndlambe
Metropolitan/District Municipality
Boundary
Kou-Kamma
Kouga
Nelson Mandela Bay
Local Municipality Boundary
District Municipality
Local Municipality
Chris Hani
Nxuba
63
EASTERN CAPE BUSINESS 2017
INDEX
INDEX
Amatola Water ................................................................................................................................................. 1, 48
Blue Lagoon Hotel & Conference Centre ................................................................................................... 59
Border Kei Chamber of Business ................................................................................................................... 20
Eastern Cape Development Corporation (ECDC) ........................................................................... 6, OBC
Eastern Cape Information Technology Initiative (ECITI) ...................................................................... 51
East London Industrial Development Zone (ELIDZ) .............................................................................. 16
Masisizane Fund ................................................................................................................................................. 28
Nedbank ....................................................................................................................................................... 24 - 27
Nelson Mandela Bay Business Chamber .................................................................................................... 18
Unemployment Insurance Fund (UIF) ........................................................................................................... 3
EASTERN CAPE BUSINESS 2017
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