Eastern Cape Business 2017 edition

christoffscholtz

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

'-'1 v

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

64


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