Eastern Cape Business 2016 edition

christoffscholtz

A unique guide to business and investment in the Eastern Cape.
The 2016 edition of Eastern Cape Business is the ninth 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, covered extensively in a series of features and interviews in this issue, and two industrial development zones which are home to a wide range of manufacturers and exporters. The 2016 edition includes contributions from the Eastern Cape Development Corporation (ECDC), Mercedes-Benz South Africa, the regional head of Nedbank in the province, as well as an extensive interview with Reuben Zwane, the CEO of the Eastern Cape Gambling & Betting Board and the featured Eastern Cape Businessman of the Year. New for the 2016 edition is a comprehensive 10-page map guide to the province sponsored by Caltex Eastern Cape Marketer.
To complement the extensive local, national and international distribution of the print edition of the magazine (15 000 copies), the full content 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.

EASTERN CAPE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE EASTERN CAPE PROVINCE

2016 EDITION

REUBEN

MABUTHO ZWANE

BUSINESSMAN

OF THE

YEAR 2016

JOIN US ONLINE

WWW.EASTERNCAPEBUSINESS.CO.ZA


Amatola Water

With the country battling a severe drought and water shortages,

it is comforting to know that the people looking after our water

carry a solid pedigree and business experience.

Lefadi Makibinyane, the relatively

new Chief Executive Officer of

Amatola Water has brought a wealth

of experience and expertise to his

role of steering Amatola Water.

An essential services utility operating in the water

sector, Amatola Water was established in terms of

the Water Services Act (Act 108 of 1997) and is

accountable to the Minister of Water and Sanitation

as its executive authority.

The water board’s primary function is the provision of

bulk water supply and sanitation services in order to

advance the socio-economic potential of the people

of the Eastern Cape. In addition, as stipulated under

the provisions of Section 30 of the Act, the utility also

offers services in:

• Operation and maintenance of water treatment

works and dams

• Management Services to waters services

institutions

• Project Implementation

• Concessions; and

• Advisory Services

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; Industrial Development Corporation of

South Africa (IDC); South African Breweries (SAB) and

SASOL, among others.

As CEO of Amatola Water, Makibinyane’s role is to

drive the utility’s 20-year strategy, which is currently

in its third year of implementation.

Makibinyane has a transformative for the future of

the utility and strongly believes in a collaborative

approach between the public/ private sectors and

government in order to drive the country’s water

services delivery forward.

Makibinyane’s tenure, coupled with the appointment

of a new Board of Directors comes at a very crucial

time when the utility is faced with a myriad of growth

opportunities as it embarks on its role to deliver on

comprehensive bulk water and sanitation services in

the Eastern Cape.

The newly appointed board of directors comprises

highly accomplished water sector and business

leaders who will serve a four-year term, effective

from February 2016.

Eastern Cape business woman and former CEO of

Aspire and Eastern Cape Parks Board, Nokulunga

Mnqeta will serve as chairman of the Board, together

with Sizwe Hadebe as Deputy Chairman and Rhodes

University professor Lynette Louw, who also served in

the previous Board.

Brian Hollingworth, Mphoko Nzimande, Abraham Le

Roux, Chuma Mbande, Tebogo Maenetja and Eugene

Jooste also join the Board of Directors.

“We are delighted to be welcoming our new board

members, as appointed by the Department of Water

and Sanitation, our Shareholder. I believe that each

individual brings with them a broad range of skills

and knowledge that will build on the

great strides already made by the

previous Board. We are confi dent

that they will assist the utility to

grow from strength to strengths as

it charts its future path in the water

sector,” says Makibinyane.

CEO Lefadi Makibinyane


CONTENTS

CONTENTS

Eastern Cape Business 2016 Edition

Introduction

Message 9

The Eastern Cape Development Corporation offers an insight into

some of the opportunities that exist within the Eastern Cape.

Special features

Regional overview of the Eastern Cape 10

The Eastern Cape province is fast coming to be seen

as one of South Africa’s international assets.

Vision 2030 28

A provincial plan for ensuring the Eastern Cape

realises its full potential.

Operation Phakisa 36

The National Government’s plan to ensure rapid development

in terms of the economy, infrastructure and social upliftment.

Maritime 50

The Eastern Cape’s coastline offers an amazing array of

economic opportunities for the province.

Trade and export 52

Trade in the Eastern Cape has seen impressive

growth in recent year.

A period of positive growth and development

An overview of South Africa’s future plans. 64

EASTERN CAPE BUSINESS 2016

2


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CONTENTS

Economic sectors

Destination Eastern Cape 56

An overview of the astounding array of tourism destination

and activities available to visitors of the Eastern Cape.

Agriculture 70

The agricultural sector plays an important role in the lives of

many Eastern Cape citizens.

Aquaculture 74

Fish farming is believed to be the only sustainable alternative

to dwindling natural resources.

Forestry 76

The Eastern Cape provides the country with a

vital source of timber.

Food and beverages 78

The Eastern Cape has the potential to become

South Africa’s leading “agro-processing hub”.

Automotive 80

The automotive industry is the backbone of the

Eastern Cape’s economy.

Automotive components 84

World-class infrastructure and port locations offer the

industry easy access to global networks.

Specialty gas 86

The launch of an industrial or specialty gas plant in the

Eastern Cape has changed the face of the industry

in the province.

Energy 88

With the energy sector facing huge challenges,

the Eastern Cape’s natural resources offer huge potential to

meet the energy demand required for economic growth.

Education and training 92

The province has a wide range of educational institutions,

but the focus is shifting towards skills training that is most

relevant to the needs of the economy.

Property and construction 96

There is a growing emphasis towards local development,

from rural construction through to dynamic new

commercial spaces.

EASTERN CAPE BUSINESS 2016

4


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Authorised financial services and registered credit provider (NCRCP16).


CONTENTS

Water 98

The recent drought has resulted in the development of the

Eastern Cape Water Master Plan, in an effort to alleviate the

stress on industry and society.

Banking and financial services 100

Despite being a largely rural province, the Eastern Cape

offers world-class banking infrastructure and services.

Development finance and SMME support 104

A number of agencies exist to support small businesses

and entrepreneurs in the Eastern Cape who want to

start a new business.

Government

South African National Government 106

An overview South Africa’s national

government departments

Eastern Cape Provincial Government 110

A guide to the province’s government departments

Eastern Cape Local Government 112

A guide to metropolitan, district and local municipalities

Reference

Sector content index 68

Maps

Regional map 113

Municipalities 113

City of Port Elizabeth 119

City of East London 119

Eastern Cape 120-126

Eastern Cape towns index 127

Index 128

Municipalities in the Eastern Cape

LESOTHO

KwaZulu-

Free State

Alfred Nzo

Natal

Matatiele

Umzimvubu

Senqu

Maletswai

Elundini

Northern Cape

Ntabankulu

Gariep

Joe Gqabi

Mbizana

OR Tambo

Mhlontlo

Qaukeni

Sakhisizwe

Inkwanca

Emalahleni

Nyandeni Port

Engcobo

St Johns

Tsolwana

King Sabata

Chris Hani

Dalindyebo

Western

Intsika Yethu

Inxuba Yethemba

Cape

Lukhanji

Camdeboo

Mbhashe

Mnquma

Amahlathi

Nxuba

Amathole

Great Kei

ECDMA10

Blue Crane Route

Nkonkobe

Ikwezi

Buffalo

City INDIAN OCEAN

Cacadu

Makana Ngqushwa

Baviaans

Sundays River

Valley

ECDMA10

Ndlambe

Metropolitan/District Municipality

Boundary

Koukamma

Kouga

Nelson Mandela Bay

Local Municipality Boundary

District Municipality

Local Municipality

Cacadu

Nxuba

EASTERN CAPE BUSINESS 2016

6


OVERVIEW

7 EASTERN CAPE BUSINESS 2016


MESSAGE

Eastern Cape Business

A unique guide to business and investment in the Eastern Cape.

The 2016 edition of Eastern Cape Business is the ninth 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, covered extensively in a series of features

and interviews in this issue, and two industrial development zones which are

home to a wide range of manufacturers and exporters. The 2016 edition includes

contributions from the Eastern Cape Development Corporation (ECDC),

Mercedes-Benz South Africa, the regional head of Nedbank in the province,

as well as an extensive interview with Reuben Zwane, the CEO of the Eastern

Cape Gambling & Betting Board and the featured Eastern Cape Businessman

of the Year. New for the 2016 edition is a comprehensive 10-page map guide

to the province sponsored by Caltex Eastern Cape Marketer.

To complement the extensive local, national and international distribution

of the print edition of the magazine (15 000 copies), the full content 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 trade and investment agencies;

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.

CREDITS

Publisher: Chris Whales

Publishing director: Robert Arendse

Editor: Simon Lewis

Writing: John Young, David Capel,

Puseletso Nkopane, Shannon

Manuel, Ralph Staniforth and

Simon Lewis

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter and

Sheeth Hanief

Production: Linda Tom

Regional manager:

Veronica Dean-Boshoff

Ad sales: Sydwell Adonis, Nigel

Williams, Sam Oliver, Debra Bender,

Gabriel Venter and Jeremy Petersen

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

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

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 | Pictures supplied by flickr.com, Public

Domain Images, Wikimedia Commons, Mediaclubsouthafrica, Morguefiles,

skyscrapercity.com, freeimages.com, Rob Duker Photography and Pixabay.

Maps on pages 118-127 supplied courtesy of Map Studio (www.mapstudio.co.za)

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.

EASTERN CAPE BUSINESS 2016

8


MESSAGE FOCUS

RENEWABLE ENERGY

OPPORTUNITIES APLENTY

IN THE EASTERN CAPE

Are you looking for a location that possesses abundant

renewable energy sources such as solar, wind, hydropower

as well as a growing biofuels industry?

Look no further than the Eastern Cape Province which has been

awarded 15 wind farms and one solar farm in four bidding

rounds of the REI4P (Renewable Energy Independent Power

Producer Procurement Programme).

These farms represent a R32.7-billion investment value with installed

capacity estimated at 1 480 megawatts. This is approximately 80% of Eastern

Cape electricity demand. Seven of these facilities are already operational.

Already, the Eastern Cape is host to Sub-Saharan Africa’s largest wind farm

near Jeffreys Bay.

The Eastern Cape Development Corporation (ECDC) invites private investors

to partner with government to exploit the province’s potential to

generate 5 000 megawatts of energy from these sources. ECDC is currently

investigating partnerships to exploit investment opportunities available in

this sector. The Eastern Cape is ready to provide concrete support to investors

who make the province their destination of choice for high-impact,

high-value renewable energy projects.

The province’s support of the sector is also based on its development

imperatives where it sees green industries as “the most promising emerging

sector with significant linkages to the Eastern Cape automotive sector, rural

development, agriculture and environmental management.” For example,

the Eastern Cape’s original equipment manufacturers such as Mercedes-

Benz South Africa and Volkswagen South Africa have Tier 1 and Tier 2 suppliers

who have the technology to support the renewable energy industry.

In addition, the Eastern Cape government is leading the development

of policy instruments aimed at creating the right climate and platforms for

the growth of this sector.

To find out more about renewable energy investment opportunities in the

Eastern Cape contact ECDC on tel +27 (0)43 704 5600 or email invest@ecdc.co.za

9 EASTERN CAPE BUSINESS 2016


A REGIONAL OVERVIEW OF THE

EASTERN CAPE

Located on the south-eastern coast of Africa, the Eastern

Cape province is fast coming to be seen as one of

South Africa’s international assets. This status has been

enhanced by the allocation to the province of two of South

Africa’s five industrial development zones (IDZs).

The Eastern Cape economy is increasingly

modern and export-oriented, with great

potential for growth of existing industry

and establishment of new industry.

The potential offered by the province is significantly

bolstered by the shipping traffic that operates

between Europe and Asia and the Far East.

Logistically, the Eastern Cape is well served

with two major airports (Port Elizabeth and East

London) and several facilities serving smaller

towns such as Mthatha and Bhisho. Many farms

and private game reserves also have airstrips.

Another key logistics factor is the recent construction

of the large new port at Ngqura, located

within the Coega IDZ, bringing to three

the number of effective ports operating in the

Eastern Cape.

Economic strengths

One of the major contributors to the province’s GDP

is the automotive industry, as the province is home to

four of South Africa’s biggest automotive companies

and several other large concerns in the automotive

components and support sector.

Financial services, real estate and banking also

contribute substantially to the provincial economy,

while the Coega IDZ is booming. This facility

is enabling small, micro and medium enterprises

to expand their value addition activities in the

Eastern Cape. Prospective investors involved in

the processing of coffee, cereals, protein and energy

supplements have shown a keen interest in

the facility.

Agriculture is another major part of the Eastern

Cape economy. Aside from being one of the

EASTERN CAPE BUSINESS 2016

10


SPECIAL FEATURE

at Mqanduli and Ncorha, to the tune R45-million

each. The hubs already have 1 500 and 900 tons

of mealies in storage respectively. In the 2015/16

financial year, two additional hubs will be established

at Ludeke in Mbizana and at Mt Arthur in

Lady Frere.

Tourism

world’s major sources of mohair, the province offers

perfect farming conditions for a wide range of

produce. The fertile Langkloof Valley in the southwest

has enormous deciduous fruit orchards, the

Alexandria and Grahamstown area produces pineapples,

chicory and dairy products, while coffee

and tea are cultivated at Magwa in Lusikisiki.

The Eastern Cape Provincial Government has

put a plan in place to ensure that there is an enhanced

integration in the value chain in addition

to linkages to the deep-water container Port of

Ngqura to enable, for example, the handling of

global exports such as frozen pineapples (produced

in places like Ngqushwa) that are destined

for the Japanese market.

In another groundbreaking development

since the establishment of the Eastern Cape

Rural Development Agency, the province has

launched two rural enterprise development hubs

According to Premier Phumulo Masualle, the province

also intends to target the improvement of roads to

tourism establishments in the province, prioritising

the roads to Baviaanskloof, Hole-in-the-Wall, Dwesa-

Cwebe and Coffee Bay.

The Eastern Cape offers a wide array of attractions,

including 800km of untouched and pristine

coastline, along with some particularly splendid

beaches in a malaria-free environment. The Addo

Elephant National Park is the largest out of the province’s

four national parks, and currently ranks third in

size after the Kruger National Park and the Kgalagadi

Transfrontier Park. The province is also the location of

South Africa’s only snow skiing resort, Tiffindell, which

is situated near the small village of Rhodes in the

Southern Drakensberg on the slopes of Ben Macdhui,

the highest mountain peak in the Eastern Cape.

The National Arts Festival, held annually in

Grahamstown, is Africa’s largest and most colourful

cultural event, offering a choice of the very best of

both indigenous and imported talent. Every year for

11 days the town’s population almost doubles, as

estimated more than 50,000 people across the world,

flock to the region for a feast of arts, crafts and sheer

entertainment.

Infrastructure

Renewable-energy projects are flourishing throughout

South Africa, but the Eastern Cape has many big

projects planned. The transport of wind turbines from

the Port of Ngqura to the Jeffreys Bay wind farm has

been running successfully for two years and is set to

become one of the largest wind farms in South Africa,

with in excess of 60 turbines. Basil Read Matomo also

began construction on a R550-million wind farm near

11 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

Port Elizabeth in 2015, while the 27MW MetroWind

Van Stadens wind farm transported their nine turbines

to their facility from the Port of Ngqura.

The implementation of the Strategic Integrated

Projects in the province is progressing well. The upgrades

of the Mthatha Airport runway and apron

are complete, with work nearing completion on the

Mthatha Airport terminal building. The Mzimvubu

Multipurpose Development Project is another impressive

development that is comprised of a multipurpose

dam to supply water for new irrigation development,

hydropower generation and domestic water

requirements in the Mzimvubu River Catchment.

The proclamation of the Wild Coast Special

Economic Zone (SEZ) has been identified as a key

focus area in the coming financial year, with a prefeasibility

study for the Wild Coast SEZ being approved

in 2015.

Investments in the Eastern Cape

In the past five years the Eastern Cape has experienced

local and international investment (actual and

planned) of over R34-billion, and provincial government

expenditure has increased substantially over

the past five years, proving that the Eastern Cape is

fast becoming an investment destination of choice

for small, medium and large enterprises – both locally

and internationally.

Alfred Nzo District Municipality

Towns: Matatiele, Mount Frere, Mount Ayliff

The smallest district is located in the mountainous

north-east, with hiking trails being an attraction 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,

Dutwa, Willowvale, Butterworth, Mazeppa Bay,

Hamburg, Alice, Bedford, Adelaide, Hogsback

The Amathole District is mainly rural in nature with

a geographical area that 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.

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

to allow titanium mining on seaside dunes are being

contested. A Wild Coast Spatial Development

Initiative exists to plot further development. Forestry

EASTERN CAPE BUSINESS 2016

12


SPECIAL FEATURE

concerns are among the biggest employers.

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. Skiing

at Tiffindell is a major tourist attraction, and has

been bought by a Johannesburg investor with

a view to restoring it.

QUICK FACTS:

Capital: Bhisho

Major cities: Port Elizabeth / Nelson Mandela Bay

and East London / Buffalo City

Languages: 78.8% isiXhosa, 10.6% Afrikaans,

5.6% English

Population: 6.9 million

Share of total South African population: 12.7%

The province’s population of 6.9 million makes it

the country’s third most populous province, with

about 15% of the national population.

Sources: Eastern Cape Development Corporation

(www.ecdc.co.za), SouthAfrica.info (www.southafrica.info)

13 EASTERN CAPE BUSINESS 2016


INTERVIEW

Eastern Cape Gambling

& Betting Board

Reuben Mabutho Zwane, CEO of the Eastern Cape Gambling

& Betting Board, leaves no stone unturned in driving

responsible, legitimate and profitable gambling and gaming

in the province.

Reuben Mabutho Zwane

BIOGRAPHY

Reuben Mabutho Zwane has

worked in the fi nancial services

industry for many years. He

joined the Eastern Cape Gambling

& Betting Board as an

investigator in 2003. He soon

rose to the position of Compliance

Manager and, two years

later, was promoted to Senior

Compliance Manager. After

that he was appointed as acting

CEO and, three years later,

CEO of the Board.

Your board has many years of unqualified audits to its credit.

How important are these for the Board?

Our board consistently achieves unqualified audits, to the extent that

it has become part of our routine. There is nothing more fulfilling than

last year when we received a clean audit because it meant that we had

achieved our mission, which is to promote a socially responsible industry.

However, this does not mean that we will sit back and rest on our laurels.

What fills me with even greater pride is the fact that we are a trusted

institution in the eyes of the public. We have proven that we are able to

handle the large amounts of revenue that we collect every without any

accusations of wrongdoing. Last year, for instance, we collected R140-

million in revenue, and these funds go straight into the provincial fiscus.

One further point is that our clean audit result plays a role in guiding

our ethics and decision-making and, consequently, we don’t have any

problems in terms of irregular procurement.

Your board has recently been honoured with a number of

awards. That must be an incredible validation for your team?

Yes, it most definitely is a wonderful affirmation for the work that we

do. However, I would say that the greatest honour we have received

was when the Black Management Forum (BMF) acknowledged us as

the Board of the Year in recognition of our efforts in working towards

socio-economic transformation as well as for our exemplary leadership in

governance. The previous year the board also won an award for our CSI

initiatives as we had adopted a school and set-up a computer lab for the

learners. We have continued to support them with training and Wi-Fi for

the last three years. We continue to offer our utmost assistance to further

help the learners and educators at that school in any way that we can.

You have achieved tremendous success in your career already,

but how did you get to where you are today?

My career started when I joined Metropolitan Life, where I worked as a

clerk for eight months. From there I joined an accounting firm as a trainee

accountant. Personally I feel that I started to carve out my business niche

when I began my articles with the firm of Ernst & Young. When I look

EASTERN CAPE BUSINESS 2016

14


INTERVIEW FOCUS

back on my career, the time I spent with them was definitely the greatest

influence on my development. I left Ernst & Young to work as a Financial

Manager at KwaZulu-Natal Wildlife (Hilltop Camp) and, after that, I joined

the Eastern Cape Gambling & Betting Board in 2003, and I’ve been extremely

happy working for the Board. I joined the Board initially to work

as an investigator, but after six months I was promoted to Compliance

Manager. Two years later I was promoted to Senior Compliance Manager

and, thereafter, I was honoured to accept my first appointment as CEO.

This appointment was in an acting capacity, but after three years of

serving in that capacity I was confirmed as the CEO, and I have been in

that role ever since.

What did your work as an Investigator entail?

Due to the nature of what the Board does, I was involved in numerous

aspects of their operations. We license gaming in general as well as

gambling, which encompasses casinos, bookmakers and bingo licenses.

When a company or individual applies for a gaming license we conduct

a probity investigation that looks at the character of the individual that

is applying for the license. Our investigation covers the full spectrum of

background and personal checks, including whether the individual is a

citizen of good standing and if they pay their taxes. Once a license has

been approved then the investigation and auditing process ensures that

the province will receive its dues in terms of applicable taxes and levies

from all licenses, which are paid to the Board. Facilitating that process

was the role that I played initially and, without doubt, my background

in accounting proved to be immensely beneficial to me.

What is the state of the gambling industry in the Eastern Cape?

The Eastern Cape encompasses four categories of gaming and gambling.

As a Province we’ve been allocated five Casino licenses, four of which are

up and running. There is only one casino that has yet to be licensed. We

currently have four casinos in the province, one each in Port Elizabeth,

East London, Queenstown and

Mzamba Wild Coast. We also

recently received an application

from the King Sabata Dalindyebo

Municipality in Mthatha, which

would be the last casino license

we would be able to grant.

We’re currently busy issuing

licences for limited payout machines

(LPMs), which are installed

at pubs, restaurants and similar

establishments. We’ve issued two

licenses to date to two operators,

each for 1 000 machines, and

one of the operators has already

finished their rollout. We are now

busy with the second applicant

and we anticipate that, by the end

of this year, they will also have finished

their rollout.

After examining what other

provinces had started to do two

years ago – in particular Gauteng

and Mpumalanga – we realised

that there was an opportunity

to grow our revenue base as a

province. As the Eastern Cape is

a rural province it does limit the

growth potential of larger-scale

gambling and gaming. However,

from studying the industry in

other provinces we realised that

there was a gap in the market in

terms of bingo licensing.

Once we had formalised our

proposal we presented it to the

Board and, after due consideration,

we received their permission

to roll-out bingo throughout the

province. I am pleased to report

that bingo licensing has now

proved to be a great success

story. According to our 2014/15

figures, we surpassed our budget

by about R18-million, primarily

due to the bingo licenses that

we granted. In comparison, the

15 EASTERN CAPE BUSINESS 2016


INTERVIEW

other provinces have not enjoyed

anywhere near the same

level of success as we have with

our bingo licences, so it is clearly

a niche that works well with our

rural population.

I believe that our success is

down to the fact that we commissioned

comprehensive research

to initially determine whether or

not the market was conducive

for such licenses and, following

that, we meticulously researched

whether or not the numbers we

could roll out in terms of licenses

would be more financially viable

for operators.

Currently there’s no national

framework that limits the number

of bingo licenses per province,

unlike casinos where the Eastern

Cape has a limit of five, or for gaming

machines where there is a limit

of 6 000 LPMs. However, since

there’s no national framework

in place to regulate the number

bingo licenses we had to come up

with our own method, a scientific

way of determining the allocation.

The research we commissioned

confirmed that there was indeed

a market. Our challenge then was

to decide on a figure of how many

to roll out. In response to this we

developed a policy that came up

with an allocation of 15 licences for

the Province.

We have since awarded all 15

licenses, with 12 operational to

date, hence the positive revenue

figures that are being generated.

With the remaining nine licenses

in the process of being rolled-out.

It’s exciting to think what the final

figure might eventually rise to.

That being the case, I think it offers

us a challenge in terms of the

province as well as the provincial fiscus, because then they will have a

clearer picture of the numbers that they will want us to roll out in order

to continue that growth trajectory. However, it also means that we must

find ways of ensuring that we continue to grow the revenue base in the

years that lie ahead of us as an organisation.

What other licences does the board oversee?

Another component that we’re licensing is horseracing. Horseracing

isn’t experiencing as much activity as it did a number of years ago, as

previously people considered the races to be more of a prestigious event

to attend. That’s no longer the case, as people today prefer to either

watch a racing event in the comfort of their living room and can place

their bets online, or watch with a crowd of people at a hotel, restaurant

or bar, where they choose to place their bet through an operator at

that location. Although horseracing may be in decline, we have also

seen a new area of growth in the industry through the rise of interest

in sports betting. For example, a bookmaker license offers the public

the opportunity to bet on any contingency during a match and, as a

result, people are starting to bet more on sport than they used to on

the horses. If you look at the industry players and where their income

base is, you’ll find that most of the money is now coming from sports

betting rather than from horse racing.

It is indeed heartening to say that we are consistently performing as

number four in the country in terms of tax revenues generated, behind

Gauteng, KwaZulu-Natal and the Western Cape. Besides generating revenue

for the province, we are also committed to Responsible Gambling

and have committed ourselves to helping society to balance the effects

of gambling. To this end we allocate a substantial amount of funds that

we spend across various media platforms in order to effectively share

our Responsible Gambling campaigns.

EASTERN CAPE BUSINESS 2016

16


Does effective regulation help the industry to grow?

Without doubt regulation does play a key role and, with this in mind,

we’re spending more time and money educating the public about

gambling. The message we’re trying to convey is that gambling can be

fun but, equally, too much gambling can have negative consequences if

the operator does not conduct their business in a proper and responsible

manner. That’s the message we’re spreading to economically active

members of the public who have disposable income. Every citizen deserves

the opportunity to take their R20 and either gamble or instead go

to a movie. It all depends on the type of entertainment each individual

is seeking. It is absolutely essential that gambling or gaming must be

enjoyed in a legal establishment because only then can customers

have the confidence that they will be protected. We frequently receive

complaints from members of the public who have won money while

gambling online but then weren’t able to get access to their winnings.

Our message is, first and foremost, that we cannot assist the public in

such circumstances because gambling on the internet is illegal. The fact

of the matter is that we cannot assist members of the public in such

situations because the gambling they were engaging in is illegal. On the

other hand, if you are gambling in a legal establishment that is correctly

licensed then you will have legal recourse and the board will be willing

and able to assist with the complaint.

What excites you about the province’s potential future growth

opportunities?

So far we have identified three areas and what has been a tremendous

help has been the fact that we’ve got room to grow in the limited payout

machines (LPM) market. We’ve recently completed a study to determine

whether the market can accommodate the additional machines, and the

study confirms that the market can indeed accommodate such growth.

As such, the Board will have to consider whether to expand the additional

LPM market. To put this into context, the two operators who are

WE MAY BE A VERY RURAL PROVINCE,

BUT WE ARE NOW, AFTER GAUTENG,

THE SECOND FASTEST GROWING

INDUSTRY IN THE COUNTRY!

INTERVIEW FOCUS

currently licensed for the 2 000 machines between them currently generate

R23-million a month and, from that, we derive 10% tax for the province.

If you add 1 000 machines over the next three years then, potentially,

we could generate another

R10-million a month from what

will be an entirely new market.

That could provide R1 million

direct growth on the current R2.3

million tax that is directed to the

fiscus, so we’ve already identified

that as an avenue for growth going

forward. As far as the bookmaking

industry is concerned, while there

isn’t much growth in terms of the

horseracing component, people

are increasingly beginning to

gamble on sports, which is why

we have identified this as a potential

room for growth. However, we

are also extremely mindful not to

flood the market with gaming

establishments, which is why we

are pursuing a responsible and

sustainable growth path.

What are the issues that the

Board is facing?

One of the issues we are battling

with is the fact that there isn’t a

national framework for our industry.

This sends a confusing message

to the industry, as well as to

those operators who have already

invested in the industry. There isn’t,

for example, a national framework

on bidding.

Some of the provinces have already

rolled-out their own policy

without a national framework,

and there are currently policy proposals

that have been put forward

that we are engaging on. The

National Gambling Policy Council

plays a pivotal role when it comes

to policy issues and discussions

on a national framework, as it was

formed by representatives from

the minister, provincial MECs

and chairpersons of the board.

I think the biggest challenge is

17 EASTERN CAPE BUSINESS 2016


INTERVIEW

online gambling. Currently internet

gambling is outlawed, but

the legislation provides that we

could in fact license interactive

gambling. So long as this aspect

of gambling is not being licensed

then we are currently losing a lot

of money in taxes. After all, people

like the internet and they are

not about to stop going online to

gamble. In my opinion, the correct

way to deal with the popularity

of internet gambling is to

regulate the industry. However,

in regulating or licensing internet

gambling there is also a fear that it

may reduce the revenue for investors

that have already committed

their money to casinos if people

started to gamble increasingly

from home and spending less

time and money in a casino. An

additional concern would be the

potential loss of jobs and casino

income.

Would the Eastern Cape be able to serve an international

gambling market?

Theoretically we most certainly would be able to earn foreign revenue

from online gambling. However, because internet gambling is currently

illegal in South Africa, the industry continues to lose out on the possibility

of drawing in this revenue. In global terms there is no jurisdiction in place

governing gambling over the internet, aside from general regulations

that exist in terms of the actual bookmaking platform.

PEOPLE WHO WOULD NOT OTHERWISE

HAVE MONEY OR CAPITAL TO INVEST IN A

CASINO CAN AT LEAST, IN A SMALL WAY,

PARTAKE IN THE GAMBLING INDUSTRY

Do you believe that internet gambling should be allowed?

In my own personal view, and speaking with more than 14 years of

experience in the industry, I believe we should definitely be considering

licensing online gambling.

EASTERN CAPE BUSINESS 2016

18


INTERVIEW FOCUS

How has the spread of bingo and LPMs helped

to empower the local community?

There has certainly been transformation within these

two categories and we have succeeded in bringing

previously disadvantaged individuals into the mainstream

economy through our Request for Proposals

(RFPs). For instance, we’ve stipulated that in order for

an individual to be granted a license their company

must have at least 40% of local black ownership and

that their ownership should include effective management

control. Operators licensed for 1 000 limited

payout machines need to ensure that the individual

bars and restaurants where they place those machines

also require a certain level of black ownership,

so this is proving to be a really effective way of starting

to transform the industry. In this way, people who

would not otherwise have capital to invest in a casino

can at least partake in the gambling industry, even if

only in a small way.

Is there good coaching groundwork in place to

assist SMMEs and self-employed individuals

working in the industry?

We certainly do place a large emphasis on training

and, as a result, if you are bringing in partners that

were not involved in such structured business before

then there must be a structured business training

program for them, so we will assist by monitoring their

progress for the duration of their license. If an operator

has a 15-year license they must provide a training

plan for their staff as well as for their directors in order

to ensure that they gain an effective understanding

of how to operate at a director level, in addition to

gaining an understanding of the responsibilities of

a director. This training therefore becomes not just

about empowering them in respect of where they

are in their careers, but also ensuring they have the

skills that will enable to to venture out into other

businesses as well. I believe this is so critical in order

to bring about effective and sustainable change in

the Eastern Cape.

Are there any other interesting industry

developments in the province?

We do our best to facilitate the operations of licensees

and the industry in general. For instance, you can see

THE ECGBB LOOKS AT PROBLEM GAMBLING

FROM A RESEARCH PERSPECTIVE

After findings and recommendations from a

research study on the Prevalence of Gambling

amongst Civil Servants commissioned by the

Eastern Cape Gambling and Betting Board

(ECGBB) in 2013/14, the ECGBB hosted a

research seminar on 8 October 2015 in East

London, at the Regent hotel, to share their

report with various stakeholders.

This study was conducted during the 2013/14 financial

year and involved a sample of 13 provincial

departments across the Eastern Cape Province.

This was after an assumption that government

employees were or are a “growing breed” within

the gambling sector. This notion was based on

the fact that government employees make a significant

portion of the workforce in the province.

Meaning they may be freely accessing the gambling

sites to spend more time, either gambling

or enjoying the space as gambling is a sub-sector

of tourism and entertainment.

According to Statistic findings from Statistics SA

2012, 80% of the workforce in the province is comprised

of public servants. This means government

employees have a disposable income for entertainment

as well as gambling and as such they

could potentially be vulnerable to excessive and

irresponsible gambling behaviour. This further

anchored the ECGBB’s assumption.

The Prevalence of Gambling amongst Civil Servants

findings portray some fundamental challenges

that the ECGBB and the Provincial Government

Administration have to address. “In working towards

the recommendations of this study this seminar will

pave way for the recommendations to be made.

So that the ECGBB can ensure that its mandate not

only ends with ensuring compliance to the rules

and regulations, but to ensure that the public is

aware of issues underlying problem gambling,” said

Luvuyo Tshoko, Manager: Strategic Management

Services at the ECGBB.

19 EASTERN CAPE BUSINESS 2016


INTERVIEW

The Eastern Cape Gambling and Betting Board

Established by section 3 of the Gambling and

Betting Act, 1997 (Act No. 5 of 1997) (EASTERN

CAPE) (as amended) (“the Act”) which was brought

into operation by various Proclamations, the initial

Proclamation being Proclamation No. 5 of 1997

of 9 July 1997.

Mandate

The objective of the Board is to oversee all gambling

and betting activities in the Province and matters

incidental thereto, contemplated in the Act and

to advise the Member of the Executive Council of

the Province for Economic Affairs with regard to

gambling matters and to exercise certain further

powers contemplated in the Act.

Functions

The most important functions of the Board are the

licensing of the legal gambling industry, the regulation

of licence holders, the collection of gambling

taxes on behalf of the Province and taking steps

to ensure the abolition of unlicensed gambling. In

this regard, the Board undertakes licensing investigations

and may issue and revoke licences and

determine the conditions which apply to any licence.

It is the responsibility of the Board to ensure that an

accountable and credible legal gambling industry

exists in the Province and that internationally recognised

standards in the industry are complied with.

Composition of the Board of Directors

The Board consists of EIGHT members:

A legal practitioner of at least five year’s standing;

A chartered accountant of at least five year’s

standing;

An individual who has knowledge and involvement

in the tourism industry;

A person who has knowledge and experience in the

field of welfare or community or socio-economic

development;

One member to represent the Department of

Safety & Security in the Provincial Government;

One member to represent the Department of

Economic Affairs in the Provincial Government;

One member to represent the Department of

Finance in the Provincial Government;

A person to represent the community in general.

where the licensed gambling establishments are just

by visiting our website and clicking on a link that will

take you to a list of licensed venues. Another innovation

we’ve introduced relates to easing the licensing

application process. In the past the process that

was required for applicants to complete a 52-page

personal history disclosure form that required supplying

information about your great-grandfather, for

instance. We are trying to simplify the process and

are in the process of developing an electronic system

that can be completed online and, as a board, we’ve

stated that our objective is that we want to go to a

paperless environment within the next five years.

Is there a lot of infrastructure that operators

need to put in place?

We still need to invest in infrastructure as a board

in order to assist our operators. We’ve already made

provision for that because we realise that this need

exists, but with the budget constraints we’re facing

throughout the country we cannot achieve these

infrastructure developments all at once. We need

to structure it over a period, but we will eventually

get there, hence we’ve given ourselves a five-year

strategy to achieve that.

In terms of the gambling industry and tourism,

what impact does gambling have on the

tourism industry, and do you see scope for

further growth?

It depends on which sector you’re speaking about. In

the casino space the RFP that we would have issued

has, for example, a strong focus on tourism. If you’re

in Zone 4 in Mthatha and you could have a casino,

but we would require that your casino must be able

to attract people to the surrounding themed resorts.

What better way than to have a casino in that same

zone, for instance, where Nelson Mandela comes from.

However, gambling on its own generally tends to

have an impact on local economic development as

well because it forms part of a tourist attraction. If

you’re setting up even a smaller establishment of 40

LPMs it should still be a venue that people can look

forward to visiting smaller towns for where previously

there was no gaming. The operator would bring in

entertainment and create a tourism feel to their establishment

so that people can look forward to visiting it.

EASTERN CAPE BUSINESS 2016

20


INTERVIEW FOCUS

Do you personally enjoy spending time gambling or gaming?

No employee of the ECGBB is allowed to partake in gambling, betting or

gaming in the province, although they are allowed to gamble in other

provinces or in other countries. As CEO of the Board I am also not permitted

to gamble in the Eastern Cape. In general I don’t gamble, but on

my travels I might put a dollar into a machine and hope to win a million,

especially when I am visiting a city such as Las Vegas.

What has inspired you about how the industry is run overseas?

When you look at a city such as Las Vegas it’s hard not to be amazed

by what they have created there. Their infrastructure and facilities are

incredible, but I think it’s too late to apply that in the South Africa context.

In Las Vegas they’ve got destination resorts where you will have a street

full of casinos, but I think such a development will not take place here.

The USA simply has such a huge population and a rich culture of going

to Vegas as a holiday, and that has been created over the course of half

a century. However, in our own RFPs we have taken the Vegas model

and applied it where we can to our own environment. For instance, we

are encouraging operators not to just setup a dome of casino slots but,

rather, to create an integrated resort where you’ve got entertainment

facilities, a hotel and eating areas. What happens in Vegas will stay in

Vegas, as they say, and while we can’t rival their industry, we’ve found a

way of incorporating a component of that in our own RFPs in addition to

what we call for from individuals who are applying for operator licenses.

What lessons or inspiration did you draw from the 2015

Gambling Indaba?

There is still a disjuncture between the regulators and the industry, but I

believe that this just calls for more engagements going forward. That was

the sense I got from the people I met at the Gambling Indaba – while we

may want the same thing, ultimately we probably won’t get there in the

same fashion, so I think that’s how the disjuncture occurs. The industry

will want to push for things to happen

quicker, but we’re advocating

caution against following such a

rapid approach. In order to roll

things out effectively we may not

be that quick because, after all, it

also takes time to change our own

laws. I think one of the challenges

that we are facing as regulators is

that the industry is so advanced

and we are falling behind in terms

of the technological advancements

in the industry. That’s what

we tend to struggle with in the

industry in general. Whilst we understand

all the proposals that we

get from various stakeholders and

how those proposals could benefit

the industry as a whole, our own

regulations are still far behind.

We first need to amend

our regulations before we can

meet our stakeholders halfway.

Unfortunately, in as much as we

try to meet our stakeholders

halfway, we are always catching

up, because trends and ideas will

always be way ahead of regulations.

However, it is only through

strong controls and good regulatory

practices that an industry

can become strong and grow,

and we’re proud to play our part

in this respect.

CONTACT INFO

Physical address:

Quenera Park,

Quenera Drive, Beacon Bay,

East London

Post address:

PO Box 15355, Beacon Bay,

East London

Tel: 043 702 8300

Fax: 043 748 2218

www.ecgbb.co.za

21 EASTERN CAPE BUSINESS 2016


INTERVIEW

Patrick Kelly

BIOGRAPHY

Patrick Kelly is Chief Operating

Officer of CECM and a Director

of CECM and Uzuko Carriers. He

oversees all CECM operations,

including new business development,

sales and marketing, logistics,

finance, and outsourced

functions such as maintenance

and transport. He was instrumental

in developing systems

for CECM that have since been

adopted by other Caltex Branded

Marketers. He was part of the

founding group of CECM and is

now the longest-serving staff

member of the team.

Caltex in the Eastern Cape

Patrick Kelly, Chief Operations Officer with Caltex Eastern

Cape Marketer, provides some background to the company’s

operations in the Eastern Cape.

What is the history behind the Caltex Eastern Cape Marketer?

Caltex Eastern Cape Marketer (CECM) is the largest Caltex master franchisor

in the Africa, Middle East and Pakistan region. A 100% Eastern Cape-owned

company, CECM pioneered the Caltex branded marketer* model in South

Africa, starting with 34 sites and a R10-million investment in 2005.

The company has almost trebled in size in its first decade of operation,

becoming a major employer and investor in the Eastern Cape by 2015,

with close to 100 sites and investment of over R300-million in new sites

and ongoing refurbishment of existing sites.

CECM owns the rights to all Caltex sites in the Eastern Cape, where it

has captured the second-biggest share of the provincial fuel retail market,

and controls more than 12% of the brand’s national retail network. The

company has headquarters in East London and a regional office in Port

Elizabeth. CECM was named Chevron South Africa’s Top Branded Marketer

for 2014, recognising its solid growth in difficult market conditions, as

well as its contribution to customer value, innovation and building the

Caltex brand.

Are there any new projects/ partnerships

that you are currently involved in?

CECM drives an ongoing investment programme – acquisition of new sites,

refurbishments to existing sites, fuel logistics and supply chain security,

accessibility and customer-focused services. The company invested more

than R70-million in site upgrades in 2015, and has a full pipeline of new

projects planned in the retail fuel industry in the Eastern Cape for 2016

and onwards, with eight new sites set to launch by mid-2016.

Systems and programmes pioneered in the Eastern Cape by CECM have

been adopted as best practice in the Caltex branded marketer model in

Southern Africa. These include business software developed and piloted

by CECM together with a software company run by a Caltex retailer in

Barkly East, which has since been implemented by a number of Caltex

Branded Marketers in other provinces. Proving pivotal to the running of

the business, the software manages stock levels, ordering and delivery

schedules, and enables information-sharing across the retail network.

In a joint venture with listed company Cargo Carriers (Pty) Ltd, CECM is

a 50% shareholder in Uzuko Carriers which transports fuel to 95% of the

CECM retail network, ensuring reliability and continuity of supply.

As part of a national Chevron initiative, CECM has placed 21 FreshStop

convenience stores on Caltex forecourts in the Eastern Cape, in partnership

with Food Lovers’ Market, accounting for 10% of stores nationally.

EASTERN CAPE BUSINESS 2016

22


INTERVIEW FOCUS

Can you elaborate on Caltex’s commitment to the Eastern

Cape and the well-being and upliftment of its communities?

CECM retains more than 95% of its non-fuel expenditure in the Eastern

Cape, and gives back to the local community through its corporate social

investment programme focused on supporting education and sport in

the province. The CECM philosophy is to develop people who will become

future leaders; and to support projects that help to produce well-rounded

people who will make a contribution to the local economy.

CECM supports school sports teams and high profile popular sports

events across the Eastern Cape. The company also assists with fuel to

support pupils and a teacher from a Cape Town school that travels in the

school holidays every year to assist matric learners at Qolora Education

Centre and Isolomzi High School with maths tuition.

CECM supports cultural initiatives in some smaller Eastern Cape towns,

where these events contribute significantly to the economy of the town.

These include the Bedford Garden Festival and the Caltex Kambi Easter

Tournament in Mthatha. CECM has made a commitment to the wellbeing

and development of the more than 2 000 forecourt staff employed under

the Caltex banner in the Eastern Cape. Incentives, training, a dedicated

quarterly publication and awards for top performers all support the development

of customer service attendants at Caltex stations.

What is the latest industry news related to Caltex Eastern Cape?

Caltex Eastern Cape Marketer has shown consistent growth in sites and

product volumes, and plans to continue this growth path by continuing to

invest in infrastructure, safety and

customer service. CECM is committed

to investing in the Eastern

Cape economy by supporting local

suppliers and developing the skills

of local people.

The CECM formula for success is

providing on-the-ground support

to each retailer in its network, with

personal attention from experienced

managers who understand

local trading conditions and are

able to deliver quick decisions.

The growth of the brand in the

Eastern Cape will continue to be

driven by supporting retailers in

growing their businesses and developing

relationships with their

local communities.

* A Caltex branded marketer is the custodian

of the Caltex brand (owned by Chevron SA)

in its territory, responsible for supplying fuel

and related products to the Caltex dealers in

its region and supporting them with training,

quality assurance, business acumen, marketing,

and compliance.

23 EASTERN CAPE BUSINESS 2016


PROFILE

Nelson Mandela

Bay Business

Chamber

The Nelson Mandela Bay Business Chamber is a Section 21 (Not for Gain) business

association representative of a broad spectrum of businesses in Nelson Mandela Bay.

The Nelson Mandela Bay Business Chamber is

one of the largest business associations in the

Eastern Cape, with a membership of over 800

businesses in a diverse array of sectors. In 2014,

the Nelson Mandela Bay Business Chamber celebrated

150 years of serving business in the Bay, since 1864.

Vision and Purpose

To be a leading catalyst for economic development

in Nelson Mandela Bay and to drive business success.

Task Teams

The Task Teams of the Nelson Mandela Bay

Business Chamber are the organisation’s action

arm – the teams initiate and facilitate key economic

change in the region. The task teams are

run by dedicated volunteers, and offer an effective

platform where business leaders can interact

with one another and with critical role-players in

local government, parastatals, NGOs and other

organisations, to address issues that are critical

to the economic growth and development of

Nelson Mandela Bay. The four task teams of the

Nelson Mandela Bay Business Chamber include

the Strategic Resources Forum, Sustainability

and Renewable Energy Task Team, Transport

and Logistics Task Team as well as the SMME

Task Team.

HAT-TRICK: The Nelson Mandela Bay Business Chamber staff celebrated receiving

three PMR.africa Diamond Arrow Awards in a row in 2013, 2014 and 2015.

EASTERN CAPE BUSINESS 2016

24


PROFILE

Events

Events at the Nelson Mandela Bay Business Chamber

provide value-added services to our members and

keep business owners up to date and informed on

a wide variety of topics affecting business in Nelson

Mandela Bay. The 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. The Business Chamber News electronic

newsletter covers news about the Business Chamber

itself, while the electronic The Good News provides

links to good news on the local business front. The

Nelson Mandela Bay Business Chamber CEO Kevin Hustler

Business Chamber regularly updates its website, and

can be found on popular social media platforms including

Facebook, Twitter, LinkedIn and Instagram.

As a special legacy project the Nelson Mandela

Bay Business Chamber Coffee Table Book was also

produced in 2015 – as a keepsake that celebrates the

city’s unique business culture. The visually driven photo

book formed part of the Business Chamber’s 150th year

celebratory campaign.

Enterprise Development

The Nelson Mandela Bay Business Chamber Enterprise

Development Programme offers local small business

owners with an effective combination of mentorship

and skills development aimed at growing small business,

enhancing their eligibility for funding, assisting

them with export-readiness, giving insights into new

markets, and increasing their job creation potential.

The second phase of the programme was launched

in July 2015.

Certificates of Origin and International Desk

A Certificate of Origin is a document which states

the origin of goods being exported and this ‘origin’

is a key requirement for applying tariff 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 Chamber is also host to an International

Relations Desk, which forms a vital support to local

business owners looking to make an impact on the

international markets. Local companies are reaping the

benefit of relationships built through the International

Relations Desk, particularly in unlocking the potential

of our twin city relations in Ningbo, China, and

Gothenburg, Sweden.

CONTACT INFO

Physical 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

25 EASTERN CAPE BUSINESS 2016


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

Les Holbrook, Executive Director

Tish Holbrook, Head: Trade and Information

Drayton Brown, Head: Communications

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 or Tish Holbrook

on members@bkcob.co.za or 043 743 8438

to join.

EASTERN CAPE BUSINESS 2016

26


INTERVIEW FOCUS

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.

What are some of the Chamber’s highlights for the past year?

We keep the priorities on the agenda – and key issues such as the port

expansion, revitalisation of Latimer’s Landing and refurbishment of

the old Buffalo Bridge are just a few. Some more important issues are

pressing local authorities to step up programmes for key infrastructure

and maintenance.

We have initiated a working group for education – focusing on

teacher support and technical subjects. Undertaking a pilot project

with Merrifield School has been hugely exciting and has been attracting

interest from a range of stakeholders.

Lastly, a focus area for the chamber recently has been on corporate

social responsibility and investment, and how serious contributors can

not only make a difference but how they can benefit best from their

own contribution.

In your view, what are the most compelling reasons for an

international businessperson to invest in the Eastern Cape?

We still have a superb quality of life. Lifestyle amounts to a very important

factor. Great schools and medical facilities rank very high in choosing

an investment destination.

We still claim to be the 10-minute city, and despite lots of contrary

claims, our lower crime rate, our labour force and our business environment

is the best in the country. We also have the East London Industrial

Development Zone with a world-class Science and Technology Park.

What do you regard as the biggest obstacle or challenge that

regional businesses face at present?

Every single citizen agrees we need a vibrant and strong economy

with growth of 4% at least. Although we still have a great business

environment – the ability of both the public sector and civil society to

embrace business and understand and accept how important business

is remains a challenge. Political instability continues to plague

most sectors of our society, and one wishes that we could leave politics

to the politicians. Also, if society would be more focused on their

responsibilities, we would have a more accountable society.

Les Holbrook

BIOGRAPHY

Les Holbrook has a National

Technical Certifi cate as well as

a Certifi cate 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.

27 EASTERN CAPE BUSINESS 2016


OVERVIEW

Flourishing people

in a thriving province

Vison 2030: A provincial plan rooted in the NDP

A

vision was created of a prosperous country with no poverty

or inequality with the introduction of the National

Development Plan (NDP) in 2011. According to the NDP,

South Africa has the means, the goodwill, the people and

the resources to achieve this goal. Eastern Cape Premier, Phumulo

Masualle, says that the people of the Eastern Cape share this vision.

In his introduction statement of the Eastern Cape Vision 2030 Provincial

Development Plan (PDP), entitled Flourishing People in a Thriving

Province, Masualle recalls that, in 2014 the Executive Council of the

Eastern Cape Provincial Government appointed the Eastern Cape

Planning Commission (ECPC) to facilitate a participatory exercise of

defining what the NDP should mean for the province.

This definition has been used to inform the Eastern Cape’s Provincial

Development Plan (PDP), aiming to provide creative responses to the

province’s challenges. A sustainable future for the Eastern Cape rests

on people-centred development to achieve five related goals:

• Achieving a growing, inclusive and equitable economy: Vision

for 2030 – The Eastern Cape has a growing, inclusive and equitable

economy, which is larger and more efficient, and optimally

exploits the competitive advantages of the province, increases

employment, and reduces inequalities of income and wealth. This

vision will be realised addressing the key constraints to unlocking

economic potential.

• Creating an educated, empowered and innovative citizenry: Vision

for 2030 – Knowledgeable Eastern Cape citizens who live in healthy

and industrious communities, are empowered to do meaningful

work and contribute to a just

society and economy, and constructively

participate in the

politics and the democratic

governance of their communities,

the province and the

nation at large. This vision will

be realised through education

and training, innovation and

human development.

• Building a healthy population:

Vision for 2030 – The people

of the Eastern Cape live long

and healthy lives, with a life

expectancy of 70 years and

an AIDS-free under-20 generation.

This will be achieved

through a health system that

provides quality healthcare

to people.

• Creating vibrant, equitably enabled

communities: Vision for

2030 – Eastern Cape citizens

live in active, vibrant, well-serviced

and connected communities,

in which people respect

each other and can exercise

EASTERN CAPE BUSINESS 2016

28


SPECIAL FEATURE

underdeveloped, with an urban economy that is unduly stressed

and experiencing slow growth. Addressing this spatial unevenness

in endowment and development will take time and hard work, but it

can be done,” Masualle says. The PDP’s design and implementation

will also endeavour to shift discriminatory attitudes towards women

and other vulnerable sectors of society.

The four catalytic flagships

To realise the plan’s development goals, the province has identified

four catalytic flagships that will establish a sound foundation for other

developments to flourish.

“These catalytic initiatives cut across sectors and integrate the efforts

of many role-players,” adds Masualle.

freedom of choice. The province

is spatially connected and there

is less disparity between the

province’s regions. This vision

will be realised through spatial

planning; developing sustainable

human settlements;

developing, maintaining and

localising infrastructure; and

actively preventing crimes in

communities.

• Creating capable, conscientious

and accountable institutions:

Vision for 2030 – The province

has capable, conscientious and

accountable institutions that are

primarily engaged in sustainable

partnerships for provincial

development with social actors

and the broader citizenry.

“These goals will be pursued

with a focus on rural development

to address serious inherited

structural deficiencies - the

legacy of apartheid has left the

rural regions of the Eastern Cape

1. Ilima Labantu

According to the PDP, Ilima Labantu, the first catalytic flagship, is an

agricultural development initiative that aims to revive the rural economy

and encourage other areas of development in the province. The Eastern

Cape is endowed with significant natural resources that can be used

to help address its food security needs, expand its capacity to provide

jobs, raise income levels and trigger development in allied industries

and other sectors. Ilima Labantu aims to mobilise communities and a

range of departments and entities across government to act in a focused,

integrated and co-ordinated manner.

“Ilima Labantu, while predominantly focused on reviving and growing

the rural economy, should also foster a different pattern of mutually

beneficial relationships between rural and urban regions, while

connecting the Eastern Cape to broader national and international

economies,” according to the Premier.

2. Ematholeni!

Ematholeni! (meaning children first) aims to give all children a quality

start to development and learning, providing a solid foundation for

a future of equal opportunity. This foundation begins from the level

of early childhood development (ECD). Ematholeni! will ensure that

the Eastern Cape increases its focus on this level of development. The

catalytic flagship initiative also aims to build systemic continuity from

ECD through to the foundation and intermediate phases of primary

schooling. It will mobilise and develop the capabilities of communities

to support the development and learning of their children. All contributing

departments and public entities, institutions and communities

across the province will work to ensure that all children in ECD get the

basic nutrition they need for healthy growth and that they receive the

appropriate stimulation and foundations for learning at home, in ECD

centres in addition to during the early grades of schooling.

29 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

3. Infrastructure

The third catalytic flagship focuses on the provision and maintenance

of infrastructure for spatially equitable social and economic development.

This includes social infrastructure and economic infrastructure.

Infrastructure development should be a concern for all development

partners. The initiative will encourage:

• The private sector to expand its investment in infrastructure;

• R&D institutions to come up with innovations around appropriate

technology, materials and design;

• Communities to build, maintain and sustain key infrastructure.

4. Building human and institutional

capabilities for local development action

The fourth catalytic flagship, in keeping with the NDP’s goals and the

Back-to-Basics campaign, aims to build human and institutional capabilities

for inclusive and meaningful local development action. This

includes building and consolidating a capable state with strong local

government and sub-entities; accountable sub-regional agents of national

and provincial departments; skilled leaders and functionaries of

non-governmental organisations and citizen associations; and capable

and responsible citizens.

“Developed collaboratively with citizens, organisations and institutions

within and outside of the Eastern Cape, the PDP is a plan for all of

the province’s people - government, citizens, civil society organisations

and the private sector. It is a living plan that will only find meaning if

all role-players are committed to its implementation. The plan will be

subject to ongoing monitoring and evaluation involving key stakeholders,

which will inform any necessary changes going forward. The

PDP frames a social compact against which we will hold each other

accountable. Through this plan, we are cementing our commitment

to a brighter future for the province of the Eastern Cape. It is a future

that cannot become a reality without the participation of all; without

careful listening and learning, action, reflection and respect,” according

to the PDP.

Reclaiming human dignity

Reflecting on the past, the PDP states that the year 1994 marked the

beginning of a journey towards reclaiming human dignity for all in South

Africa. The year 2014 marked an important point in this journey - a critical

reflection and a collective recommitment to working towards a future

of well-being for all. In 2030 the Eastern Cape hopes to see the fruits of

careful and collective hard work towards this commitment.

Based on this engagement and planning process, the ECPC developed

the Diagnostic Overview of the Eastern Cape, a detailed

report that includes data and analyses describing the main challenges

facing the province, as well as attributes

and accomplishments to

build upon. It also produced the

Strategic Perspectives Towards

Vision 2030, a document that sets

out propositions on principles, a

suggested vision, outcomes and

goals, as well as strategic actions

proposed for the PDP.

An integrated framework for

human development

At the centre of the development

plan is the vision of well-being

and flourishing for all in a thriving

province. Human development is

the principal focus of the vision.

It refers to the development of

mind, body and spirit for purposeful,

conscientious and responsible

action - through dynamic cultural

systems underpinning a morally

grounded socialisation; quality

education and skills acquisition;

knowledge creation and innovation;

arts, recreation and sports;

healthy, harmonious living and

quality healthcare systems; and

enabling social infrastructure.

“We seek to improve the ability

of people to obtain gainful

employment and ownership of

enterprises and assets that will

provide the economic basis for

human development. There

should be a focus on economic

opportunities for under-educated

and unskilled young people, as

well as for people living in the

underdeveloped rural regions of

the province,” according to the

plan.

EASTERN CAPE BUSINESS 2016

30


10001032SM

75 YEARS OF INDUSTRIAL

DEVELOPMENT

OF INDUSTRIAL DEVELOPMENT

SINCE 1940

For 75 years, the IDC has been committed to leading industrial

development in South Africa. It is this commitment that has

enabled us to grow key industries and facilitate job creation,

ensuring a positive contribution to the growth of our economy.

If you’re an entrepreneur and have a business plan that is

relevant to an industry that the IDC supports and require

funding of R1 million or more, take the lead and make history.

Call the Port Elizabeth office on 041 363 1640, the East London

office on 043 721 0733 or visit idc.co.za to learn more about

the funding criteria for the sectors that the IDC supports.


INTERVIEW

The Industrial

Development Corporation

Kingsley Dell-Robertson, Eastern Cape Regional Manager of the

Industrial Development Corporation (IDC), shares his thoughts on

opportunities for growth in the Eastern Cape.

What opportunities are available in the

Eastern Cape that the IDC is keen to support?

The IDC is structured with three value chains,

namely Metals, Chemicals and Agro-processing.

Therefore, we will be prioritising the sourcing of

opportunities to fund specifically into these value

chains. The opportunities in the Eastern Cape arise

from its natural endowments, firstly being the

second-largest land area in South Africa after the

Northern Cape, as well as having a population of

6.5-million people, a diverse landscape that ranges

from deserts to lush forests, as well as a coastline of

about 800km. This is supplemented with a strong

manufacturing base in the Automotive sector, an

unfolding renewable energy sector, export orientated

agricultural sector namely citrus and other

key agricultural sectors such as deciduous fruits,

pineapples, chicory, dairy and sheep together with

an established forestry industry. These industries

are supported by the three harbours, two established

IDZs and four universities.

What has been the impact of wind farms to

date, and how do they fit in with the goals of

the IDC?

The IDC has funded five wind projects in the first

two rounds of the REIPP projects, which will assist

the national grid with 285MW of electricity. Even

though they have only recently started commercial

operation, the impact can already be seen in the

surrounding areas in terms of community services

being supplied through these projects. The IDC

has a business unit that looks at the development

of infrastructure that would unlock industrialisation

opportunities in the targeted value chains.

The provision of renewable energy is part of such

enabling infrastructure.

Dell-Robertson, Eastern Cape Regional Manager

What size of companies and business are

you looking to support in terms of your

industrialisation initiatives?

The key point as noted is industrialisation so, if a business

is able to manufacture or process an item, then

either Sefa or the IDC is able to fund the business.

The overarching criteria is that the business should

increase the industrial capacity of the Eastern Cape. By

adding value to their products through an industrial

process, the province is able to export or utilise the

products at a higher value, thereby growing the GDP

of the province.

What support is the IDC giving in particular

to women and the youth in the Eastern Cape?

Women and our youth have the highest unemployment

statistics in South Africa and, therefore,

government is putting plans in place to address this

inequality. The IDC has special schemes that have

been developed to enable the funding of youth

EASTERN CAPE BUSINESS 2016

32


INTERVIEW

and women. However, the uptake of these schemes

has not yet been to the levels anticipated especially

by the IDC, especially in terms of our youth. The IDC

has subsequently placed additional emphasis on

advertising and marketing the women and youth

schemes. Youth applicants typically suffer from

a lack of experience in the industry and in terms

of financial resources to contribute towards the

shareholders’ equity in the business. The government

has put in place an MOU between the IDC,

Sefa and NYDA in order to provide extra impetus

to help the youth address these issues.

In what other ways is the IDC helping to

strengthen local communities?

The IDC’s overarching criteria is towards increasing

the industrial capacity in our country. If a community

is involved such as in the forestry sector,

then the IDC will work with the community to

develop those projects with a view to including

the community as a stakeholder in the project.

The IDC currently has a number of communitybased

projects that are at different stages of

development, ranging from pre-feasibility, feasibility

and implementation. For example, where

the IDC has funded the community stake in a

project such as the local wind farms, then the

IDC will review the agreements, assist with the

implementation of a community Trust and provide

training to the Trustees.

What message do you have for the local

business community?

In adverse times opportunities rear their head due

to other established companies not wanting to take

the risk at this adverse economic period. You will

require a partner to share the risk and, hopefully,

that partner will be the IDC. With over 75 years of

experience in funding business in the start-up,

expansion or turnaround phase, IDC can add value

to your business during our detailed funding due

diligence process.

What interesting prospects are in the

pipeline locally?

Both the East London IDZ and the Coega IDZ have

prospective OEMs that are wanting to set-up production

facilities in the Eastern Cape. Operation

Phakisa, which incorporates the maritime industry

and aquaculture, have significant potential. Agroprocessing

– especially with the establishment of

the Agro-Parks – offers enormous benefits to the

Eastern Cape due to its arable land and water availability.

The IDC is also awaiting the bio-fuel mandatory

blending regulations to come into force, as this

will be a catalyst for bio-fuel projects that would

be based in the province.

How are things economically on the ground?

The export-orientated market in the Eastern Cape is

thriving, together with our tourism establishments

doing well. The industry that supplies locally is facing

tough economic circumstances with cost pressures

from increasing utilities and inflation-linked

factors like wage rates, together with its market

requiring competitive pricing. Manufacturers are

forced to consider the localisation of some of their

input supplies, and producers to the local market

will have to explore opportunities in the continent

and international markets to export some of their

excess products and open up new markets.

CONTACT INFO

Regional offices

Physical address: 2nd Floor Block B,

Chesswood Office Park, 8 Winkley Street,

Berea, East London

Postal address: PO Box 19048, Tecoma 5214

Tel: 043 721 0733 | Fax: 043 721 0735

Physical address: Southern Life Gardens,

Block A (Ground), 70 2nd Avenue,

Newton Park, Port Elizabeth

Postal address: PO Box 27848, Greenacres,

Port Elizabeth 6057

Tel: 041 363 1640 | Fax : 041 363 2349

Email: callcentre@idc.co.za

callcentre@idc.co.za

Website: www.idc.co.za

33 EASTERN CAPE BUSINESS 2016


INTERVIEW

MASISIZANE FUND

Phelela Mlilo

BIOGRAPHY

Phelela started her career in

1999 as a Trust Officer setting

up trusts and managing trust

funds. She gained valuable experience

in retail banking and

later financial planning working

at Standard Bank. After a

couple of year with Ithala Development

Finance Corporation

Phelela started her own successful

business before joining

Masisizane in January 2015.

Support for SMMEs and

micro enterprises

BUILDING SUSTAINABLE

BUSINESSES THROUGH

SUCCESSFUL PARTNERSHIPS

Phelela Mlilo is the Provincial Manager, Eastern Cape, of

the Masisizane Fund, an initiative of the Old Mutual Group.

What is the Masisizane Fund?

The Masisizane Fund is an Old Mutual initiative that was established in

2007 following the closure of the Unclaimed Share Schemes Trust in

consultation with the National Treasury of South Africa. Masisizane, was

established as a non-profit funding company to provide loan financing

and support to small, medium and micro enterprises (SMMEs).

How do you assist clients?

The Masisizane Fund (NPC), is an initiative Unlike traditional of Old Mutual institutions South Africa, who established provide loans, we don’t penalize Masisizane our opera

in 2007 following the closure of the Unclaimed clients Shares on the Trust. basis This of was their done risk profile. in consultation Instead of focusing on nationally traditional with it

with the National Treasury of South Africa. The mandate of the Fund at inception was

security instruments our focus is on cash flows, which means in whether Gauteng and r

and remains to contribute meaningfully to employment creation, poverty eradication

there is enough cash to fund and service our client’s commitments. offices We in KwaZu

and reduction of inequality, economic growth and the attraction of investment. This is

are also aware of the constraints some clients may face, hence Limpopo, in the Eastern

done mainly through promotion of entrepreneurship, enterprise finance and support to

instance when clients are unable to repay their loans; we give Western them

small, micro and medium enterprises (SMME’s).

Cape.

moratoriums on repayments. We also have preferential interest rates of

The process to follow when apply

prime minus two to prime minus four to ease the client’s financial burden.

The target market is enterprises that are 51% or more owned

by the previously disadvantaged individual(s) giving priority

to rural and peri-urban/township areas. Masisizane funding

is biased towards 51% plus owned women, youth and

people with disabilities. Masisizane will target productive

and labour absorbing sectors as approved by the Board of

Directors from time to time.

The Fund’s success is driven through a focused approach on

high impact industry sectors, coupled with a comprehensive

SMME finance solution that includes business support.

The Fund provides loan finance in the following sectors:

• Agriculture

What • Manufacturing

sort of trends are you seeing in terms of SMMEs?

• Supply Chain

Generally speaking it’s been quite a difficult period. What I’ve noticed projections; is

• Franchising

that • most Commercial SMMEs Enterprise have been reliant on contracts or sub-contracts from

the private sector, while in terms of government work there has also

Non-financial value adding services include capacity

been a decline in the opportunities available. Another problem SMMEs

development, business management and technical support,

have financial been education, experiencing market is development that many and of product/ them are overwhelmed by the

increase service in quality administrative standards and prices compliance. that are A Business filtering through to their businesses.

I’m referring to things such as electricity and water costs, these

costs are unfortunately beyond their immediate control as they come

from the likes of either Eskom or their local municipality. Such costs have

put a tremendous pressure on the profit margins of our clients’ small

and micro businesses. It has also been challenging for us as a provider

of enterprise development finance since we are limited by the market

in our quest to finance more opportunities.

What makes a successful SMME?

I think the level of commitment demonstrated by an entrepreneur is a

Acceleration Program has been e

clients receive training and suppo

eligible to receive financial suppo

The growth of the Masisizane Fu

inception. Although the initial foc

the fund has gradually grown to b

fund with the vision of being able

as a sustainable entity and thereb

for many years to come. The fu

R1b and it plans to invest R420

SMME’s by the end of 2017.

The development of agri-clusters

Masisizane Fund’s approach in

entail the clustering of small sca

the farmers benefit from economi

on value chain financing, agro-p

partnerships.

In 2013 the Fund initiated a p

Harry Gwala municipalities co

trading in grain and dairy prod

focused on development of value

mechanization, storage and micro

partnerships with Omnia, Gra

Association and municipalities, th

their planting significantly in 2014

channeled towards Grain Co as

from the Masisizane Fund is:

Submit the following documents fo

relevant provincial office:

• Comprehensive business plan

• For established businesses –

three years) and the latest man

• For start-up businesses – financ

• Tax clearance certificate;

• Off take agreements and/or l

• Signed consent for a credit ch

EASTERN CAPE BUSINESS 2016

34


Acceleration Program has been established where potential

clients receive training and support to grow into a business

eligible to receive financial support.

Once the initial screening has been completed, a full due

diligence exercise, including a site visit will follow.

INTERVIEW FOCUS

The growth of the Masisizane Fund has been steady since

inception. Although the initial focus was very philanthropic,

the fund has gradually grown to becoming a self-sustainable

fund with the vision of being able to serve the core mandate

as a sustainable entity and thereby having impact on society

for many years to come. The fund has a capital base of

R1b and it plans to invest R420 million to deserving viable

SMME’s by the end of 2017.

The development of agri-clusters is the cornerstone to the

Masisizane Fund’s approach in agriculture. Agri-clusters

entail the clustering of small scale farmers to ensure that

the farmers benefit from economies of scale with the focus

on value chain financing, agro-processing and leveraging

partnerships.

In 2013 the Fund initiated a project in Alfred Nzo and

Harry Gwala municipalities comprising of 15 farmers

trading in grain and dairy products. Funding in 2014

focused on development of value adding activities such as

mechanization, storage and micro mills and through strategic

partnerships with Omnia, Grain Farmers Development

Association and municipalities, the farmers have increased

their planting significantly in 2014. Additional funding was

channeled towards Grain Co as a result of this success.

Masisizane operates

key factor for us to determine the potential of a SMMEs success. When

we conduct due diligence on a prospective client we are able to gauge

nationally

one’s commitment

with

to the

its

transaction.

head office

This is definitely an important

in Gauteng benchmark for us and when we regional

decide funding for a SMME. Other factors

offices

we analyse,

in

is

KwaZulu

whether the SMME

Natal,

is operating in a secure, reliable and

established market. We also look at the financial statements of the SMME

Limpopo, as well as payments Eastern they have Cape made in and order to determine if they are

Western able to make Cape. payments on time. We consider all these benchmarks as

crucial factors in assisting us to proceed with the transaction.

The process to follow when applying for financial assistance

from the

Any

Masisizane

recent interesting

Fund is:

case studies of people you have helped?

Submit the following documents for an initial screening by the

There are quite a number of them. We have just worked with a manufacturing

entity which is importing pine and distributing it for manufactur-

relevant provincial office:

• Comprehensive business plan with market analysis and

ing purposes across a range of suppliers in Africa. We provided them receive financial support.

projections;

For more information and where to find us visit:

the working capital facilities so that they could procure more products.

• For established businesses – past financials (preferably www.masisizane.co.za

We could assist the new owner to penetrate his market and receive

three years) and the latest management accounts;

co-funding from the Eastern Cape Development Corporation and as

• For start-up businesses – financial projections;

a result, save the business and see tremendous

• Tax clearance certificate;

growth in a short period of time. We could also

• Off

help

take

the

agreements

owner to

and/or

manage

letters

staff

of intent;

relationships An initiative of the

• Signed better, consent which for resulted a credit in check. a significant drop in staff

turnover and a much smoother overall operation.

In another example, one ladyhad

been supplying a middle man,

so we helped her to gain certification

in order to directly supply

SPAR as well as Pick n Pay.

The Masisizane Fund provides

loan financing in the agribusiness,

franchising and supply chain

operations. A Business Accelerator

Programme has been established

where potential clients receive targeted

skills training and support

to grow into a business eligible to

For more information and where to

find us, visit www.masisizane.co.za

Group

35 EASTERN CAPE BUSINESS 2016


Operation Phakisa hits

the ground running

Through Operation Phakisa the National Government aims to implement

its policies and programmes better, faster and more effectively.

President Jacob Zuma has been the driving force

behind Operation Phakisa, a project designed

in line with the goals of the National Developement

Plan (NDP) 2030, which is aimed at

economic growth and boosting job creation.

“We had announced in June this year that we are chasing

a growth target of 5% by 2019. To achieve that target,

we require new and faster ways of doing things, and

Operation Phakisa represents that new spirit of moving

faster in meeting our targets,” said Zuma, speaking at his

2014 State of the Nation Address.

Operation Phakisa adapts the Big Fast Results

methodology first applied by the Malaysian

Government, successfully, in the delivery of its economic

transformation programme. The operation

addressed their national key priority areas such as

poverty, crime and unemployment. It involves setting

up clear targets and follows up with on-going

monitoring process which makes the results public.

Through this initiative, the Malaysian government

was able to register impressive results within

a short period. President Zuma said South Africa has

renamed the Malaysian Big Fast Results approach

as Operation Phakisa – from a Sesotho word, which

means “Hurry Up”, to highlight the urgency with

which government wants to deliver on some of the

priorities encompassed in the NDP.

The initiative will initially be implemented in two

sectors – the ocean economy and health.

EASTERN CAPE BUSINESS 2016

36


Diving into the blue economy

The first phase of the implementation will focus on

unlocking the economic potential of South Africa’s

oceans. This will be done together with representatives

from government, industry, labour, civil society

and academia to collaborate in unlocking the

economic potential.

Speaking at the launch of the initiative at the Inkosi

Albert Luthuli International Convention Centre, in

Durban, President Zuma said government chose the

ocean economy with good reason.

“South Africa is uniquely bordered by the ocean on

three sides – east, south and west. With the inclusion

of Prince Edward and Marion Islands in the southern

ocean, the coastline is approximately 3 924km long,”

he told the delegates, which included industry, labour,

civil society and academia. But despite this, the vast

ocean space is relatively unexplored in terms of its

economic potential.

“The ocean has a potential to contribute to the

Gross Domestic Product (GDP) up to R177-billion. The

ocean also has a potential to contribute between 800

000 and one million direct jobs,” said President Zuma.

In 2010, the oceans contributed approximately

R54-billion to South Africa’s GDP and accounted for

approximately 316 000 jobs.

Also at the launch, Environmental Affairs Minister

Edna Molwea acknowledged the invaluable

contribution of oceans and coasts to the development

from throughout the continent. “The long-term

developmental programmes of the world can no

longer be based on land resources only; it must also

include the coast and ocean resources.”

Government has identified four priority focus

sectors for Operation Phakisa. These are marine transport

and manufacturing activities (such as coastal

shipping, trans-shipment, boat building, repair and

refurbishment) offshore oil and gas exploration;

aquaculture, as well as marine protection services and

ocean governance.

The second implementation of Operation Phakisa

was to pilot the health sector’s Ideal Clinic Initiative to

improve service delivery in the country’s clinics nationwide,

which commenced late in 2014. The health

sector laboratory will be undertaken in collaboration

with provinces, districts and clinic managers, with the

SPECIAL FEATURE

aim of producing a detailed plan for improving service

delivery in public sector clinics in all provinces, including

indicators, targets and timeframes, in addition to

a guideline for clinic managers to develop and sustain

these improvements.

Success of Operation Phakisa

“The key step in Operation Phakisa’s approach,” said

the President, “will be the intensive work sessions

necessary to deliver complete and signed-off action

plans for presentation to Cabinet. These work sessions

will help create transparency and help to remove

bottlenecks and resolve the most critical challenges

facing a sector.”

Once the detailed delivery plans have been completed,

President Zuma said government will then

move into the implementation phase of Operation

Phakisa—with him taking a personal interest in monitoring

the progress and implementing the project.

“The people of South Africa deserve much better

from all of us. Through Operation Phakisa and all our

other key strategic interventions to achieve the goals

of the National Development Plan, we must work

tirelessly to move our country forward and build a

better life for all, especially the poor and the working

class,” he said, urging key role players to commit fully

to the success of this programme.

Meeting targets

Highlights of the Operation include the cabinet approved

issuing to Transnet Port Terminals (TPT) of a permanent

operating licence to operate the manganese

container terminal at the Port of Ngqura. Significant

economic opportunities arising out of this development

include the upgrading of the rail network (R2.3-

billion) from Northern Cape to Port of Ngqura in order

to support axle loads of 26t.

Knock-on effects occur along the rail infrastructure

value chain, with significant opportunities for localisation,

such as signalling systems. The relocation of manganese

operations from the Port of Saldanha would

open opportunities for offshore oil and gas activities

such as rig repair and maintenance.

37 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

There is an opportunity to capture the lucrative

repair market by extending and expanding our port

capabilities to service current and future vessels in

East and West Africa.

Opportunities for local shipbuilding industry have

arisen as a result of tenders issued by Armscor for a new

hydrographic vessel under Project Hotel and six new

offshore and inshore patrol vessels under Project Biro.

The acquisition of the six IPVs/OPVs by the Navy is a

major boost to the local shipbuilding industry as 60%

local content is required. Projected spend over the

next three to four years is approximately R6.6-billion,

providing the opportunity to deepen component

manufacturing and rebuild domestic capabilities.

Transnet National Ports Authority (TNPA) and

Transnet SOC Limited have adopted a Public- Private-

Partnership (PPP) model to finance new Operation

Phakisa infrastructure. TNPA has committed R7-billion

for public sector investment in domestic ports to support

industrial opportunities in the ports.

Saldanha Bay port has been established as an oil

and gas hub, the total scope of the initiative amounting

to a R9.2-billion investment (public and private).

TNPA has appointed transactional advisors for the

refurbishment and maintenance of port facilities. The

scope and maintenance refurbishment requirements

have been completed and The dti has designated working

vessels for local procurement (60% local content).

A R1.4-billion tender by TNPA for the procurement

of tug boats was awarded to a South African company

in support of local procurement. The dti is in the process

of developing a strategic marketing campaign and

value proposition for investors into the MTM sector.

In addition to the Marine sector, progress has occurred

within the oil and gas and aquaculture sectors, a

Delivery Unit and Steering Committee was established

at DMR and is fully functional. The financial analysis of

South African offshore oil and gas sector procurement

has been completed ahead of schedule.

This work included the determination of product

and service categories and spend (values); compilation

of suppliers’ database and classification of procurement

(with measurement and standards criteria) in terms

of domestic vs foreign value addition in final goods

and services.

Setting of minimum targets for local production

and supply awaits the finalisation of the Mineral

Petroleum and Resources Development Amendment

Bill (MPRDA) legislative process.

A total of 10 catalyst projects are in progress with

funding secured from the Aquaculture Development

Enhancement Programme (ADEP), the private sector investment

at R305-million, and Government investment

at R105-million. The National Regulator for Compulsory

Specifications (NRCS) has been co-opted for sampling

and food safety standards. Public Works has signed off

leases on four projects.

South Africa is ideally positioned to serve the East-

West cargo traffic lane and the booming African offshore

oil and gas industry through marine manufacturing,

which includes ship and rig repair, refurbishment

and boatbuilding.

Despite this competitive advantage, we currently

capture only 1% of the global market of ship repair and

refurbishment. Efforts are underway to ensure that all

of Operation Phakisa’s Oceans Economy initiatives are

prioritised and resourced accordingly.

EASTERN CAPE BUSINESS 2016

38


It’s taken a

R45-million

Investment by Aristopix

to ensure that their clients have

complete peace of mind.

In building up their fleet of over 170 vehicles, Aristopix takes the sweat out of their

customers’ vehicle budget to allow them to focus on their business and doing what they do

best. Aristopix supplies, maintains and monitors a wide range of vehicles for their clients,

from sedans and light commercial vehicles to buses and heavy plant machinery.

“We pride ourselves on our customer-focused, core team of professionals who strive

to provide service excellence in the fleet management and plant hire industry.”

Aristopix focus is on four core fleet management areas:

• Full Maintenance Lease

• Manage Maintenance

• Fleet tracking and monitoring systems and services

• Plant hire, roads constructions and infrastructure development

“We strive to be the brand-of-choice”

in the fleet management and plant hire industry

Aristopix is a level 2 BBBEE contributor which is 100% black-owned,

100% black-managed and 100% black-operated by owners, managers and staff.

The ownership profile is 50% black female and 50% black male

Aristopix (Pty) Ltd

Physical address:

1 Kelvin Court, 20 Currie Street, Quigney, East London, 5201

Postal address:

Postnet Suite X 264, Private Bag X 9063, Vincent, 5241

Vat number: 4220256285 • Company Reg: 2010/004085/07

Tel: 043 722 5731 • Fax: 043 722 5730

Email: andiswa@aristopix.co.za


INTERVIEW

Aristopix

Ms Vuyisa Mfaka is CEO of Aristopix, a BEE company

that specialises in full fleet management services.

Founded in 2010, the company has offices in Mthatha

and East London in the Eastern Cape.

Ms Vuyisa Mfaka

COMPANY PROFILE

BIOGRAPHY

Full Maintenance Lease (All Vehicle Ranges) | Fleet Management

Fleet Abuse and Misuse Management | Vehicle Maintenance Management

Tracking and Monitoring | Fuel Management | Fleet Cost Benefit Analysis

Ms Vuyisa Mfaka is a veteran

in the fl eet management industry.

She

Tel: +27 (0)47 531 4197 | Fax: +27 (0)47 531 0827 | www.aristopix.co.za

9 Callaway

has

Street, Municipal

worked

Stores, Mthatha 5100

for large

Postnet Suite 264, Private Bag X 9063, East London 5200

corporates (including Daimler

Fleet Management) and is

one of the only black females

running a fl eet management

company in South Africa. As

CEO of Aristopix she is responsible

for the strategic direction

and overall growth of Aristopix

as an emerging company in the

fl eet management industry.

What services does Aristopix offer?

Our main focus is providing our clients with comprehensive fleet

management solutions. In addition to ensuring speedy turnaround times

for downtime units, we also offer clients the benefit of vehicle replacement.

According to our Service Level Agreement (SLA), if one of the cars in our

fleet breaks down then we have an obligation to get our client mobile

within four hours, either by means of roadside assistance or providing

a relief vehicle. The normal situation in government departments

and municipalities often results in vehicles sitting in workshops for three

months or longer because, in such situations, no-one is accountable. In

the case of King Sabatha Dalindyebo (KSD) municipality, where we have

a five-year Full Maintenance Lease contract (FML), vehicle movements

are monitored within section perimeters and alarms are given if drivers

move beyond those perimeters. Outsourcing this critical function not

only allows the client to continue with its core business, it also affords

them numerous financial gains, one from being able to remain focused

on their business mandate and, secondly, not forfeiting on maintenance

and/or widespread driver-related vehicle abuse.

What is your competitive advantage?

Through our in-house operations the client leverages greater benefits

from us compared to larger fleet management companies such as

Bidvest Leasing or Avis Fleet Management. Such hands-on services that

we offer circumvent onerous claims for vehicle damage after the lease

period, as Aristopix deals with the daily logistics of running its fleet firsthand.

I think it’s because the size of our business allows us to be able to

respond quickly, because we are right there. A personal relationship is

then established with the clients because the people who they speak

to are the same people who are running their operations at grassroots

1

level and will actually be directors of the company. This enables us to

implement speedy decision-making by cutting through the red tape.

Who is your major client at the moment?

Our main focus is the KSD muni cipality (our Mthatha office is primarily

focused on servicing them), along with other public sector clients.

A five-year fleet management contract has been signed with KSD whereby

a Service Level Agreement (SLA) was entered into with Aristopix under

which we are held accountable for KSD’s fleet of 66 leased vehicles, in

addition to managed maintenance of their own fleet.

EASTERN CAPE BUSINESS 2016

40


INTERVIEW FOCUS

through it might not be directly

linked to Operation Phakisa Ocean

Economy. In order for Operation

Phakisa to function effectively

there also needs to be road transport

in place for coastal shipping of

mineral resources that have been

mined inland. For this to happen

our road infrastructure and transportation

networks need to be as

efficient as possible.

What are Aristopix’s growth prospects?

Right now our focus is within the government environment. Our business

model is designed to assist government and it holds us accountable for

fleets and infrastructure development. When we started we were only

a leasing company that leased vehicles to clients over a period of time.

An area of growth since then was when we got involved with Public

Works, and that’s when we saw things start to develop. We started a

joint venture with a qualified company that had an active grading in

the relevant category of works, and now we are even building roads.

It’s exciting seeing the scope of our business broaden and at this very

time we are working at various sites in the region in road construction.

What are the industry trends right now?

There are always new trends, always new things happening. Everyone

is still using GPS, but everything is now almost completely web-based.

Green footprint kind of trends have just come alive and this is particularly

important in the transport industry right now. Everyone is talking

about green cards and managing their vehicles responsibly in terms of

emissions for the green environment – our own responsibility is to make

sure that our fleets comply with these regulations.

How has Aristopix played a role in job creation?

For the past five years we have been on the forefront in terms of creating

jobs in the KSD and Border regions of the Eastern Cape through our success

with vehicle leasing, and this has enabled us to create employment

both directly as well as indirectly. Five years ago we took a financial risk

when we embarked on a huge capital outlay of R43-million on our fleet.

This was a capitalisation which the KSD municipality did not have, but

as we were able to raise the money it enabled us to win their business

and this, in turn, enabled us to create over 500 jobs in the area. On the

operations side we have also contributed in terms of job creation,

What do you believe is important

to stimulate job creation?

Creating jobs in whatever sphere

requires an effective value chain.

Looking at the Eastern Cape, for

instance, the Port of Ngqura still

has capacity for further growth,

and this is where the province can

benefit, for instance by being able

to move minerals such as manganese

and iron ore from the inland

mines to the port. A transport network

like this would be an incredible

way to connect the mines in

the Northern Cape to the Ocean

Economy, in so doing making it a

viable connecting line between our

two provinces. Government needs

to build railway lines and develop

the road infrastructure that will be

effective to take these minerals to

the sea. All things form part of a

value chain, and we’re proud to be

a part of that chain.

CONTACT INFO

Physical address: 1 Kelvin

Court, 20 Currie Street,

Quigney, East London 5201

Tel: +27 (0)43 722 5731

Fax: +27 (0)43 722 5730

Email: phinda@aristopix.co.za

Website: www.aristopix.co.za

41 EASTERN CAPE BUSINESS 2016


FOCUS

Ports hold key to growth

South Africa is highly rated as the gateway to Africa for many reasons,

and Operation Phakisa (the initiative whose name means “operation

hurry-up”), is set to drive implementation of key priorities in the

National Development Plan, starting with the Ocean Economy.

The Eastern Cape’s ports are key strategic economic advantages

in the marine economy. With trade flow at an all-time

high and Africa’s ports being pushed to maximum capacity,

leaders of Africa’s ports industry convened at the African

Ports Evolution Conference & Exhibition last year to discuss improving

operational efficiencies, developing transport corridors and preparing

ports for mega ships. In a bid to alleviate congestion in the ports,

Transnet National Ports Authority (TNPA) presented its new web-based

Integrated Port Management System (IPMS), as a key driver of growth

in the maritime industry.

“This online system will help transform South Africa’s ocean gateways

into smartPORTS by using advanced information technology that will

make them more intelligent and sustainable, while conserving resources,

time, space and energy,” says TNPA’s CEO Richard Vallihu.

Port of East London

The East London Terminal was established in 1963 and has a renowned

reputation for excellent turnaround times. It is South Africa’s only river

port and employs over 120 people. It is fully equipped and trades with the

world’s leading automotive brands. In this capacity it has a sophisticated

multi-level car terminal at its Ro-Ro (Roll on, Roll off) facility and has two

dedicated berths for servicing automotive brands.

The terminal handles import and export cargo like motor vehicle components,

textiles, sugar, rice, timber, scrap steel, automotive and chemicals.

The port has the largest grain silo on the South African coastline, breakbulk

and containerised cargo facilities. The terminal now trades in coal.

Specifications:

• There are 11 commercial berths ranging up to 250m in length.

• It has a dedicated grain terminal.

Recent investments in equipment vary from straddle carriers to mobile

cranes and forklifts, and this has been part of a focused plan for

delivering an efficient service that has boosted terminal handling.

The East London Terminal still has ample capacity, in addition to an

ability to attract more volumes across varying cargo, including heavy

equipment.

Port of Port Elizabeth

The Port of Port Elizabeth is a geographically

well positioned, customer-centric,

multi-commodity

(containers, automotive, dry bulk,

liquid bulk, and break bulk) port

that prides itself on flexibility and

service excellence.

Being a congestion-free port

allows for an efficient berthing

and unberthing operation. Its

unparalleled services offering ensures

competitive cargo handling

rates across all its terminals, which

translates to a fast, efficient and

safe ship turnaround time.

The Manganese Terminal started

operating in 1963 and recently

celebrated 50 years of operation.

It is currently the largest exporter

of manganese in the country.

The Container Terminal was

ranked the highest in Africa for

moves per hour between January

and March 2013 by the world’s

largest ocean carrier and container

shipping company, Maersk.

The Automotive Terminal

is operated by Transnet Port

Terminals and has been ranked

as the best-performing terminal

in Africa by VWSA. The accolade

is a result of measured efficiency

when counting the number of

containers handled per hour,

which impacts directly on vessel

turnaround time.

EASTERN CAPE BUSINESS 2016

42


FOCUS

Specifications:

• The port’s container terminal

has three berths (Two Berths)

totaling 925m (720m) in length

and a storage area of 22 hectares

with 5 400 ground slots

for stacking purposes. The

container terminal is equipped

with latest-generation gantry

container cranes and straddle

carriers

• The depth at the entrance

channel is 14.5m.

The Port also has a world renowned

Automotive Terminal.

This modern Automotive Terminal

offers adequate capacity, worldclass

handling rates, streamlined

administrative processes, an integrated

logistics solution, seamless

road and rail connectivity and is

in close proximity to automotive

giants VWSA, GMSA and FAW.

The Multi-Purpose Terminal

has a compatible commodity mix

comprising predominantly of fruit

(deciduous and citrus), agricultural

products, fertilizers, timber, steel

coils, cement manganese and various

other bagged cargos.

In view of recent drought in the

country, the port has been identified

as one of the major entry

points for import of Maize

Specifications:

• The break-bulk terminal has six

berths totalling 1 170m, two

bulk berths totalling 360m and

a tanker berth of 242m.

Port of Ngqura

A world-class deep-water port located 20km north east of Port Elizabeth,

the port was officially opened in 2012 and is the fastest-growing port in

Africa, as recorded in the 2014 Drewery Shipping Report. The Ngqura

Container Terminal (NCT) has been designed as a state-of-the-art deepwater

transhipment hub, currently having the deepest container terminal

in Southern Africa, boasting a 16 metre draft. NCT has seen a steady

improvement in volume growth and operational performance.

The terminal has increased South African trade with the world,

offering an integrated, efficient and competitive port service for containers

on transit to global markets. The port is generating much-needed

jobs in the economy while promoting international trade for Southern

African Developing Countries (SADC).

The Container Terminal, which boasts a world-class superstructure,

upgraded its installed capacity from 800 000 to 1.5 Million Teus (capacity

for 4 Berths) in 2014. The NCT has a design capacity of 2 Million TEUs and

has improved its efficiencies with volumes increasing from 120 000 TEUs

in 2009/10 to 713 000 TEUs in 2013/14. In addressing the increasing global

demand for Manganese export, Transnet will be investing in a state-ofthe-art

Manganese loading facility, positioning the Port of Ngqura as a

leading Manganese Ore exporter globally. The relocation of the current

manganese facility from the Port of Port Elizabeth to Ngqura will increase

the capacity from 5.5 to 16 metric tons per annum

The Port’s world-class infrastructure, depth and marine assets have

created opportunities for handling abnormal cargo. Since April 2013 to

date, the port has been handling imported wind turbines where 48 304

tons of grossly abnormal cargo (with approximately 20 vessels calling in

the port) which require discharging, storage and removal from the port.

Specifications:

• The dry bulk berths were designed to accommodate for 85 000dwt

(deadweight tons) to as much as 120 000dwt vessels.

• The 2 610m long main breakwater, on the eastern side, is the longest in

South Africa to date. It has been designed to withstand wave heights

of up to 9m.

• The deepwater section has a final deck level of +7m CD and a clear

width of 9m.

The container terminal has been designed for the operation of heavy

container handling equipment. In 2014 the Terminal was upgraded with

additional equipment, including 10 cranes and 40 TRG’s. The Port of

Ngqura employs a total of 786 employees from the landlord and terminal

operator side collectively following the completion of the Ngqura

Expansion Project. The long-term estimate is that the Port will employ

2 000 staff within the next 20 to 30 years, with the majority of these jobs

likely to be sourced from the Eastern Cape.

43 EASTERN CAPE BUSINESS 2016


PROFILE

Port profile:

The Port of Port Elizabeth

The Port of Port Elizabeth is the gateway for expanding markets,

and is not only linked with the rest of the world, but it also has direct

transport links into the heart of the African continent.

Situated in Algoa Bay, on the south-eastern

coast of Africa, the Port of Port Elizabeth

is being positioned as a premier automotive

hub.

The port comprises of 1783 hectares of land,

has 9 licensed terminal operators, operating across

11 berths, with 113 996 square meters of undercover

warehouse space, and handled 11.926 million

tons of cargo in 2014/15. The port is equipped to

handle automotive cargo, dry bulk cargoes, bulk

liquid cargo, general cargo, container cargo, and

passengers. The Port is accessible by rail and has

4 road entrances. The Port Control Tower provides

24-hour communication to all vessels using the

Vessel Traffic Management System.

The Port limits are two nautical miles west of

Cape Recife to two nautical miles east of the North

Bank of the Swartkops River. The Port offers a full

suite of maritime services on a 24-hour basis, including

towage, pilotage and berthing services.

Ancillary services that are available include the

provision of water, electricity, refuse removal, firefighting

services, compressed air, workshop services,

equipment hire as well as diving services.

The port is also home to a large fleet of independently

operated fishing vessels. The port also

operates a slipway facility which can handle vessels

up to 600 tons.

The Port has the following SHEQ certifications:

OHSAS 18001 (2007), ISO 14001 (2004), 5 helmet

award, Marine services accreditations: ISO 9001

(2008), OHSAS 18001 (2007), rail safety permit and

ISPS certification.

The port is synonymous with high port productivity

and promises world-class ship turnaround times.

The Port is evolving into a people-centric smart

port which will see the port embrace smart energy,

systems, logistics, processes, infrastructure, environment

and management. The Port will be transformed

to meet future market demand by investing into the

acquisition of two 70-ton bollard pull tugs, berthing

space for fishing vessels, acquisition of a 90-boat hoist

to complement additional repair lay down spaces

created, and additional automotive capacity.

The Port will also create opportunities for the establishment

of a marine and maritime commercial development,

a value-added logistics park and aquaculture.

Vital stats

• Good holding ground in Algoa Bay. Recommen

ded anchorage is 1,5 nautical miles to north

or south of fairway buoy but clear of channel.

There are three anchorages in Algoa Bay.

• There are 12 berths ranging up to 318.5m length.

• For all vessels requesting pilotage services, one hour

of advance notice is required to VTS/Port Control.

Cape Recife East (True) to a point in the Indian Ocean,

distance 1 609m line drawn from the extreme point

to the East Bank of the Zwartkops River, east (True)

distance 1 609m metres on the eastward by a line

drawn between these two points.

CONTACT INFO

Physical address: Port of Port Elizabeth, PE

Postal address: PO Box 162, Port Elizabeth 6000

Tel: +27 41 507 1887 | Fax: +27 41 507 1956

Nomkhitha.Shogole@transnet.net

Harbour Master: Captain Brynn Adamson

Port Control: 041 507 1909/10

www.transnetnationalportsauthority.net

EASTERN CAPE BUSINESS 2016

44


Port profile:

The Port of Ngqura

PROFILE

A competitive port service for containers within the Sub-Saharan

Africa region, the Port of Ngqura is a world-class, deep-water transhipment

hub offering an integrated solution for all cargo needs.

The Port is located in close proximity to the

Coega IDZ but remains under the jurisdiction

of Transnet National Ports Authority. It

also services the industrial bulk commodity

requirements of the regional and national hinterland.

Since becoming operational in 2009, the port has

surpassed many expectations and it is through its

milestones that it was profiled as the fastest-growing

port in the country, Africa and even the world, as

reported by the Drewry Consultants in the 2012/13

annual report.

• The main breakwater, on the eastern side, is

the longest in South Africa to date. It has been

designed to withstand wave heights of up to 9m.

• At 2 610m long, the main breakwater is the

longest to have been constructed in South Africa

to date. It extends out to a depth of -16.5m chart

datum (CD) port and has a maximum base width

of 12m. The deepwater section has a final deck

level of +7m CD.

Size matters

The Container Terminal, which boasts world-class

superstructure, has a current capacity of 1 200 000

Teus for 3 Berths and will later increase to a 2-million

Teu capacity for 4 Berths.

Vital stats

• The construction of the first phase of this greenfields

project started in September 2002.

• More than R10-billion has already been invested

in the project over the past 10 years.

• The Port of Ngqura has a total land area of

1 254 hectares.

• It was designed to initially offer a seven-berth

model – four for containers and three for dry,

liquid and break-bulk.

• MSC Catania became the first vessel to berth at

the Port of Ngqura, offloading 275 containers and,

thereby, marking the port’s unofficial opening on

4 October 2009.

• The Port of Ngqura is the only port in South

Africa that has an environmental authorisation

(Record of Decision) for its construction and

operation.

CONTACT INFO

Ntshantsha Buyambo (New Business Development

Manager)

Tel: 041 507 8569

Email: Ntshantsha.Buyambo@ transnet.net

Harbour Master: Captain Thulani Dubeko

Tel: 041 507 8443

Email: thulani.dubeko@transnet.net

Port Control (Ship movements and ETAs)

Tel: 041 507 8444

45 EASTERN CAPE BUSINESS 2016


INTERVIEW

Port of Port Elizabeth

Port Manager Rajesh Dana provides an overview of the historic

Port of Port Elizabeth, recent infrastructure upgrades as well as

the importance of the harbour for economic growth in the region.

What is the Port’s present capacity?

The Port of Port Elizabeth comprises 1 783 hectares

of land operated by nine licensed terminal operators

over 11 berths. Accessible by rail and four road

entrances, the Port consists of a container terminal, automotive

terminal, two multi-purpose terminals, bulk

manganese export terminal, four liquid bulk terminals,

and handled 11.926-million tons of cargo in 2014/15.

Accessible by road and rail, the container terminal

comprises 650m of quay with a stack capacity of 600

000 TEUs, 800 reefer plug points, 3600 ground slots,

a depth of 12,2m with tidal fluctuation of 1,8m. This

terminal has been ranked by the Maersk Shipping

Line as one of the most efficient in Africa.

Also accessible by road and rail, the Automotive

Terminal comprises 5 000 parking bays with a capacity

of 200 000 units (subject to dwell time), a depth of

11m and 1.8m tidal fluctuation. Operated by TPT, it

has been ranked by VWSA as Africa’s best-performing

terminal. The Multi-Purpose Terminal consists of 915m

of quay length, with a depth ranging from 10m to 11m

alongside, is accessible by road and rail and has sufficient

spare capacity. The Manganese Terminal can

handle up to 18 different grades, which are store-in

bins with a maximum capacity of 400 000 ton, and

exported across a quay with a length of 360m and

depth alongside of 12.2m. Main access is by rail. The

terminal has an operational capacity of 5.5mt and

holds an air emission license of 6mt. It is currently

the largest exporter of manganese in the country.

The Liquid Bulk terminal has a capacity of 2 500 000

kiloliters (limited only by storage capacity) and handles

a wide range of petroleum products and LPG.

The Port also accommodates passenger liner vessels

at its MPT Terminal. The cruise-liner industry in Port

Elizabeth is seasonal from October to April, with liners

averaging 13 hours in port. They arrive in the morning

to allow passengers to disembark and enjoy city and

safari excursions, before departing in the evening.

What infrastructural improvements have been

created in the last few years?

Transnet has recently completed the upgrade of the

road and rail infrastructure on its MPT Terminal, which

will ensure cargo is handled in a safe and efficient

manner. We are in the final stages of completing the

conversion of a 40 Ton Slipway in a

modern, world-class 100 ton boathoist

operation, with eight repair

laydown areas servicing the fishing

industry. This will create an opportunity

for the boat and yacht building

market, ultimately creating a marine

engineering hub.

What future developments are

on the cards?

The Port’s development strategy is

to evolve to a people-centric SMART

Port, a concept founded on the

pillars of driving social-economic

development of our city and region,

ensuring port efficiency and

EASTERN CAPE BUSINESS 2016

46


competitiveness through world-class technologies,

ensuring the port is resource-efficient and is part of

an intelligent, integrated green transport network.

The Marina & Maritime Commercial precinct is an

exciting new project focused on the creation of a

leisure and recreational precinct to promote tourism

and water sport within a “working harbour”. This

project will restore historic links to the city and will

contribute positively to inner city rejuvenation.

In support of the fishing industry and boat building

and repair, the Port is in the process of refurbishing

the 1 200 ton slipway and leading jetties, which will

create much-needed berthing space for the Port’s

300-strong fishing fleet and creating the opportunity

to conduct “wet” repair in a safe, secure environment.

The port will also be upgrading its rail infrastructure,

as connectivity to the hinterland is critical for any port.

We will also be refurbishing lettable buildings to increase

the market value of our property portfolio. The

port has also procured two new Voith Schneider 70t

bollard pull tugs and a workboat that will ensure safe,

secure and efficient marine operations in the port.

.

What are some of the Port’s success stories?

The port has a rich history of performing well in safety

and has won various TNPA and Transnet safety awards.

The port has also introduced performance standards

for Terminal Operations and Marine Operations and

this has contributed positively to recording, monitoring,

analysing and improving port performance.

The port recently commissioned a Joint Operations

Centre (JOC) to provide a near real-time integrated

view of the port’s logistics chain (of the flow of vessels

and cargo through the port), thereby creating a holistic

interchange of information between port stakeholders.

This project has contributed positively to

reducing costs by improving efficiency and reliability

of the logistics chain. This project will ultimately bring

together the city and county’s sea, port, rail and road

operations under one seamlessly integrated view.

The Port has maintained it’s high port productivity

and efficiency KPIs and has again achieved all its

performance targets. We recently introduced a new

software system IPMS (Integrated Port Management

System), which provides technology that enables improved

efficiency and increased productivity. The

IPMS provide an integrated system with a structural

INTERVIEW

framework and workflow to capture, process, notify

and share information to manage business processes.

Greater attention to improve service delivery mechanism

is its primary focus, including making Transnet

National Ports Authority ports on par with international

ports in terms of services and technology.

Having positioned itself as a premier automotive

port, the Port secured an automotive transhipment

contract and, in response to market demand, pioneered

manganese export through skip operation at

its MPT berths and skiptainer operations at the container

terminal. This helped breach the gap between

international demand versus limited port capacity.

What growth opportunities does the port offer?

As a landlord the port has focused a lot of attention

on facilitating and enabling trade and optimising

its Property portfolio. The Port recently formed a

multi-disciplinary new business development portfolio

whose sole mandate is to seek new business

opportunities for the port, city and region. We are

also in the process of evaluating and awarding leasehold

rights for a Ports Logistics Park operator that will

provide valued-added services to cargo importers

and exporters, two restaurants to serve as catalysts

in developing a marina and maritime commercial

precinct, an aqua farm and yacht-building factory

(in support of exploiting the opportunities of the

blue economy) as envisioned in Operation Phakisa,

various maritime commercial activities, leisure and

recreational activities and office accommodation.

The port also intends to invite Request for Proposal

(RFP) to introduce a license for a third Multi-Purpose

Terminal operator so as to maximise the use of berths

11 and 12 and the backup land thereto.

The Port has recently licensed a bunker barge operations

and view this as a start to positioning the port as

a “service port” offering vessel crew changes, stores,

repairs and a host of other opportunities.

CONTACT INFO

Address: Port of Port Elizabeth, Port Elizabeth

Postal address: PO Box 162, Port Elizabeth 6000

Tel: +27 41 507 1887 | Fax: +27 41 507 1956

Email: Nomkhitha.Shogole@transnet.net

Web: www.transnetnationalportsauthority.net

47 EASTERN CAPE BUSINESS 2016


INTERVIEW

Port of Ngqura

Port Manager Ms Mpumi Dweba provides an overview

of recent developments at the Port of Ngqura.

Please share background on the growth and

development of the Port of Ngqura?

The first phase construction of the Port of Ngqura

(PoN) Greenfields project commenced in September

2002. One of the most important milestones was

when the first commercial vessel, the MSC Catania,

berthed at the PoN in 2009. It was officially opened

on 16 March 2012 by His Excellency Dr JG Zuma,

President of the Republic of South Africa. It is located

in close proximity of the Coega IDZ, which provides

a competitive advantage for the export and import

of commodities through the port. The port is the

only one in South Africa boasting an environmental

authorisation Record of Decision (RoD) for its construction

and operation, as well as an exceptional

0% non-compliance.

What is the relevance of having a deepwater

port 20km away from Port Elizabeth?

Well, the Port of Ngqura is a developing port, whereas

the Port of Port Elizabeth is already at a maturity

stage. The emerging trend in the container market is

that vessels are becoming bigger and, consequently,

ports are required to have deeper drafts. A decision

was therefore taken to construct an industrial port to

service larger vessels, with the Port of Port Elizabeth

complementing Ngqura by accommodating smaller

vessels. Consequently, the Port of Ngqura forms an

integral part within the Coega IDZ as it supports the

industrial development and the investments within

the IDZ. The Port of Ngqura is being positioned as a

Container Transhipment Hub for Sub-Saharan Africa

and is specifically geared to serve African (East and

West), European and Asian trade routes offering safe

and efficient transit of cargo.

What have been some of the important milestones

for the Port of Ngqura?

The off-loading of 275 containers at the Ngqura

Container Terminal (NCT) on 4 October 2009, which

is operated by Transnet Port Terminals (TPT), was a

moment of great celebration for all involved in the

Ngqura project as it marked the unofficial opening of

the port, by utilising part of the expanded port infrastructure

and container terminal. Transnet National

Ports Authority has recently issued a Terminal

Operator License and Terminal Operator Agreement

to Transnet Port Terminals to operate the Ngqura

Container Terminal and the Ngqura Manganese

Export Terminal. In addition, the Ports Authority is at

the final stages of concluding the Terminal Operator

Agreement with Oiltanking Grindrod Calulo (OTGC)

for the Tank Farm operation.

What is the Port’s current capacity?

The container terminal’ design capacity is two-million

twenty foot equivalent (TEU), and the operational

capacity is 1.5 TEUs. The multipurpose terminal has

capacity to handle break-bulk commodities and

project cargo. The relocation of the manganese

terminal from the Port of Port Elizabeth to the

Port of Ngqura will increase the capacity from 5.5

Million Tons Per Annum (Mtpa) to 16Mtpa, and the

liquid bulk terminal capacity will increase to 2M KL

(Kilolitres).

EASTERN CAPE BUSINESS 2016

48


INTERVIEW

What infrastructural improvements have

been created in the last few years?

One of the recent improvements has been the

installation of the Automated Mooring System at

the container terminal. This technology has specifically

been designed and manufactured to meet certain

environmental conditions (surge) in the Port of

Ngqura and is tailored to enhance productivity and

safety at the Container Terminal. The vacuum-based

technology of the AMS employs vacuum pads recessed

in, or mounted on, the quayside to effectively

moor or release vessels in seconds. The port has also

started with the construction of a state-of-the art

administration building for its employees, an admin

craft basin (Tug Jetty) where its marine craft such as

tug boats and pilot boats will be berthed, and an

Admin Building for marine personnel.

What are some of the Port’s success stories?

We recently introduced a new software system IPMS

(Integrated Port Management System), which provides

technology that enables improved efficiency

and increased productivity. The IPMS provide an

integrated system with a structural framework and

workflow to capture process, notify and share information

to manage business processes. The port

has a rich history of performing well in safety and

has won various TNPA and Transnet safety awards.

We have garnered many accolades such as the 2014

Drewry Report that affirms that the Port of Ngqura

has become one of the fastest-growing ports in the

world. In 2014, the port was recognised as the greenest

organisation in the Eastern Cape as a mediumsize,

high environmental impact organisation.

The port was awarded 1st position in the Gold

Category, tying with the Coega Development

Corporation. In 2013 the Port of Ngqura was named

as one of four South African ports earmarked for the

repair and upgrading of oil rigs in the Industrial Policy

Action Plan released by Trade and Industry Minister

Rob Davies. There’s been a high demand for the oil

rigs to dock in the port for repairs and maintenance.

In 2013 the port was identified as a preferred port to

handle wind turbines, and this has helped to position

the port as an abnormal cargo handling port. More

recently, the port was identified as the preferred port

to handle wind turbines which are destined for the

Eastern Cape as well as parts of the Northern Cape.

The port has also played a major role in job creation,

with direct and indirect work opportunities being

created through Port of Ngqura Projects such as the

Port administration building (269 work opportunities),

the Admin craft basin (448), the tank farm phase

2 & 3 (3 360) and the Manganese project (8 400).

What growth opportunities does the port offer?

The Port of Ngqura is fully equipped to expand on

existing business opportunities, whilst facilitating

new business development (NBD). Dry bulk, break

bulk, Abnormal Cargo, Containers, Liquid Bulk cargo

bulk are entwined within the future prospects of the

port. The extensive availability of land and infrastructure

at the Port creates more growth opportunities

and diversification of cargo that could be handled.

The port will become a global leader in manganese

export and an energy hub, importing LNG and gasto-power

and supporting gas to power in order to

address the current energy crisis in SA, complementing

the energy sector developments currently taking

place in the Coega Industrial Development Zone

and the Eastern Cape region. One of the long-term

plans is to establish a ship repairs facility.

CONTACT INFO

Ntshantsha Buyambo (New Business Development

Manager)

Tel: 041 507 8569

Email: Ntshantsha.Buyambo@ transnet.net

Harbourmaster: Captain Thulani Dubeko

Tel: 041 507 8443

Email: thulani.dubeko@transnet.net

Port Control (Ship movements and ETAs)

Tel: 041 507 8444

49 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

Maritime

With its 800km of coastline, South

Africa’s pristine Eastern Cape province

is set to become a leading hub of

maritime economic activity, after some

challenging years.

The province is home to the two major port

cities of Port Elizabeth and East London,

both established industrial manufacturing

coastal centres, giving the Eastern Cape

several strategic competitive advantages.

The SA government announced in 2014 that it would

be implementing ocean economy projects, which

it expected to contribute more than R20-billion to

the country’s gross domestic product by 2019. These

projects form part of the government’s National

Development Plan, its economic blueprint that aims

to promote economic growth and job creation.

South Africa’s oceans have the potential to contribute

up to R177-billion to the GDP and create over

one million jobs by 2033, two decades from now,

the government said.

“A thriving maritime sector will shift the Eastern

Cape into an era of prosperity,” says Mfundo Piti, the

economic infrastructure development manager of

the Coega Development Corporation (CDC). “The

momentum displayed so far by the local privatestate

nexus shows a strong capacity and desire to

further tap the potential of a sector that has largely

shaped the history of these two cities.”

Ports have always been at the forefront of maritime

economic organisation, catalysing economic

growth through the trade of manufactured goods,

commodities and raw materials. They have helped

transform underdeveloped regions into important

trade centres which, in turn, has created jobs.

Port of Ngqura

“As both entry and exit points, the two ports have been

critical in the past, present and future of the province

and indeed the country,” Piti says. Nelson Mandela Bay’s

Port of Ngqura, a deep-water sea port is adjacent to the

Coega Industrial Development Zone (IDZ) It is becoming

the fastest growing terminal in the world, according

to Drewry Maritime Research quoted by the CDC.

Construction of the Port of Ngqura is one of the biggest

projects of its kind on the continent and one of the

largest undertaken in post-apartheid South Africa. The

Transnet National Ports Authority (TNPA) has invested

R10-billion to date in the development of the Port,

EASTERN CAPE BUSINESS 2016

50


SPECIAL FEATURE

The wind sheltered Nelson Mandela Bay has 330 anchor

days a year. With only an overnight train or truck

trip from the major centres of Johannesburg, Cape

Town and Durban, these port facilities are ideally

situated to meet the needs of all import and export

markets. Meanwhile, the South African government

has partnered with South Korea to establish a national

shipping company. “World sea traffic passes by the

Eastern Cape on the East-West pendulum trade routes,

opening up major opportunities for ship-building and

repairs in the region,” Piti says.

Ship building and repairs

The world merchant fleet in 2013 comprised 106 833

vessels responsible for shipping goods and commodities

between the continents, including visits to the

three ports of the Eastern Cape. During 2013, around

5 944 container ships, vessels and tankers were commissioned

for construction by various countries. This

represents an opportunity for the Eastern Cape to

become a marine industrial centre for shipbuilding

and repairs.

While South Africa’s ship-building industry holds international

credibility through its shipyards in Cape Town

and Richards Bay, the Eastern Cape’s “world-class industrial

manufacturing economy will make the province an

excellent contender for future shipbuilding activities in

the oceans economy”, Piti maintains. Nelson Mandela

Bay and East London dominate South Africa’s automotive

industry which means the province is already home

to the necessary expertise, skilled labour, logistic services.

“But there’s more that can be done,” he says. “The

expertise of the industrial base should not only be

extended for the ship-building industries but need to

be extended further” – augmented by aeronautical

components manufacturing, for example. “

which is operated by Transnet Port Terminals (TPT).

Port facilities at Ngqura include a 60-hectare container

terminal, Transnet’s solution to South Africa’s longtime

shortage of container capacity resulting from

the growth in global container shipping. The depth of

the channel and its location in the protected Nelson

Mandela Bay make it one of the best positioned deepwater

ports on the South African coast.

Food security

The CDC plans to establish a R2-billion aqua-farming

facility at Coega. Marine animals and plants such as

finfish, abalone and seaweed will be farmed on 300

hectares in the Coega IDZ, creating 5 000 jobs. Nelson

Mandela Metropolitan University (NMMU) in Port

Elizabeth will be playing a critical role in knowledge

generation for maritime and marine industries, Piti says.

The university formalised ties with the UN-endorsed

World Maritime University (WMU) in Sweden in 2013.

51 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

Trading places

Trade in the Eastern Cape has seen impressive

growth in recent years, with the province beginning

to realise its export potential.

Placing a special focus on export will certainly earn the

region points when it comes to making a difference in

the economy of the province. This is driven by a large

increase in vehicle sales and escalating vehicle export

figures. However, small business exports should not be discounted

when adding up the numbers.

Contributing to boosting trade in the province is the fact that two of

South Africa’s five industrial development zones (IDZs) are located on its

doorstep, increasing potential revenue by the shipping traffic on route

to Europe and the Far East.

According to the latest Eastern Cape Socio Economic Consultative

Council’s report (ECSECCTP), Trade And Ports Movement In The Eastern

Cape, which provides a detailed trend analysis of selected key traderelated

statistics for the EC between 1Q2013 and 1Q2015, the Eastern

Cape was a net importer of goods and services in 2014, which led to a

trade account deficit of R11.9-billion in 2013, down to R8.7-billion in 2014.

This poor performance of the trade account was influenced by global

market conditions, as it’s volatility had a dampening effect on some

industries. Between 2003 and 2014 the Eastern Cape trade balance

remained negative, with the exception in 2008, where the province

recorded a trade surplus of R1.6-billion, with exports exceeding imports.

Looking at how the EC trade account performed over the past decade,

the province’s average annual growth of exports was 26.1% over the

10-year period (2005-2014), while the average annual growth of imports

was 9.0% in the same period.

“The biggest decline in both exports and imports was during the

financial crisis in 2009, where exports fell by 42.0% and imports fell by

29.0%. However, in 2011, both exports and imports recovered, with

export growth of 17.0% and import growth of 17.4%. In 2014 export

grew by 23.9% while import grew by 10.4%,” according to the report.

On the provincial and district trade scale, the report reflects that the

Eastern Cape had the fourth largest trade flow, which grew from R78-

billion in 2013 to R90-billion in 2014.

In terms of exports, the ECSECCTP revealed that the Nelson

Mandela Bay Metro Municipality (MM) constitutes the largest exporter,

with exports reaching R38 199-million in 2014. The Buffalo City Metro

Municipality was the province’s second-largest exporter at R1 268-million

in 2014, followed by Cacadu District Municipality (DM) at R1 101-million

in the same period . In 2014, all metro and district municipalities experienced

increased growth in

exports. The OR Tambo DM

had the least exports when compared

to other municipalities, with

total exports reaching R8-million in

2014. Europe was the leading export

destination for the province’s

exports between 2013 and 2014,

with exports estimated to be have

risen to R16 865-million in 2014.

“The second-largest export destination

for the Eastern Cape was

Asia, with exports estimating to be

R12 576 million in 2014. Africa was

the third-largest export destination,

with exports of R5 435-million

in 2014. The lowest export destination

for the EC was Antarctica with

exports of R2 million in 2014.

“The largest share of imports into

the EC is from Europe with imports

of R24 920-million in 2014. Asia is the

second largest region to import into

the EC, with imports of R27 383-million

in 2014, followed by America,

with imports of R5 146-million

in 2014. There has been

a decline in import numbers

across region into

the EC, importing

EASTERN CAPE BUSINESS 2016

52


SPECIAL FEATURE

less than they used to import in previous

years.”

Germany tops the list of top

export destination markets for

2014 with R9.8-billion, followed by

the United States (R3.8-billion) and

China (R3.7-billion), between them

accounting for 58.1% of the province’s

total exports. Among the top

10 export destinations for South

Africa, Japan and the

United Kingdom

were the fastest growing markets, increasing by 40.1% and 36.1% respectively.

Vehicles, aircraft and vessels accounted for R14.2-billion of all exports,

with textiles at R4.1-billion. The top three export products from the province

accounts for 73.4% of the region’s total export products. Among the top 10

exports, plastics & rubber were the fastest growing products, increasing by

65.3%, followed by chemicals increasing by 64.2%, according to the report.

Looking at the BRICS group, according to the DEDE, China is the leading

emerging trade market as it imported most of the Eastern Cape’s exports,

followed by India, while Brazil and Russia absorb the least. The Eastern Cape’s

basket of imports from the BRIC countries are dominated by value-added

goods driven by manufactured products. Interestingly, between 2007 and

2008 the Eastern Cape imported the most goods from Brazil, although this

changed in 2010 and 2011 as imports to the region from China surpassed

those of Brazil.

(Sources: Eastern Cape Socio Economic Consultative Council’s trade report

(ECSECCTP), Trade And Ports Movement In The Eastern Cape; www.southafrica.info;

www.dedea.gov.za;

53 EASTERN CAPE BUSINESS 2016


PROFILE

Credit comfort assured

Credit Guarantee, South Africa’s leading Trade Credit Insurer, has been

in business for almost 60 years and is part of the Old Mutual Group.

ENABLING GROWTH WITHOUT RISK

What is Credit Guarantee’s competitive

advantage in the industry?

Credit Guarantee was established in 1956 and our

Diamond Jubilee will be celebrated in 2016. Essentially,

we only insure intercompany trade that occurs on

credit terms. The supplier (our policyholder) applies

to cover their credit sales on each individual customer.

We then carefully investigate each of those

customers and issue a ‘credit limit’ under which the

policyholder is able to supply. We also subsequently

monitor their customers’ credit behaviour.

As a result of our assistance and involvement, the

policyholder is covered against non-payment in the

result of their customer proceeding into liquidation,

applying for Business Rescue or reneging on payment

for a protracted period of time. A policyholder

could typically expect to receive 80 cents in the Rand

should a claim arise.

Credit Guarantee also has a unique ability to assist

the policyholder with collecting debts due to them,

either through pre-legal mitigation of a potential loss

or by implementing formal collection/legal processes.

We are renowned for our claim-paying ability (we

have an AA rating), as well as our quality confidential

information that we hold on numerous companies

domiciled inside as well as outside of South Africa’s

borders.

What are the opportunities going forward

and where are the areas of growth?

We have produced a specific domestic policy for

SMEs and are also following the trend of establishing

a significant footprint on the African continent. The

SME’S debtors book could range from R500 000 to

R10-million and is certainly reaping benefits for all

parties concerned. In these uncertain economic times

there is increased demand for our product as the

market seeks to protect one of its most important

and larger assets – namely its debtors book.

In these uncertain economic times

there is increased demand for our

product as the market seeks to protect

one of its most important and larger

assets – namely its debtors book.

What have you seen as the exciting developments

and potential areas for growth within

the Eastern Cape economy?

The SME market is really gathering momentum from

an entrepreneurial point of view, thus creating muchneeded

employment.

The primary growth areas in the Eastern Cape

continue to be agriculture, transport, logistics, solar

and meat.

CONTACT INFO

Physical address: 1st Floor Mutual Place, Cnr Cape

Rd & Langenhoven Dr, Greenacres, Port Elizabeth

Postal address: PO Box 27154, Greenacres 6057

Tel: 041-363-4024

Fax: 041-363-3750

Email: cynthiab@cgic.co.za, cregalink@cgic.co.za

Website: www.creditguarantee.co.za

EASTERN CAPE BUSINESS 2016

54


DESTINATION OVERVIEW

Destination Eastern Cape

The Eastern Cape has a unique set of natural assets that stretch from the wondrous Wild

Coast to the forests of the Tsitsikamma and the vast open spaces of the Karoo.

The combined area of the parks and reserves of the Eastern

Cape cover a larger land mass than that of the Kruger National

Park. The Eastern Cape Parks and Tourism Agency is in charge

of 34 nature reserves within the Eastern Cape.

The Addo Elephant National Park (Addo) is the jewel in the Eastern

Cape’s tourism crown. Covering over 180 000-hectares, the facility

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 combined.

The park also includes a marine section where great white sharks and

whales can be sighted.

The Camdeboo, Mountain Zebra and Garden Route national parks

are the other major nature reserves that grace the Eastern Cape. The

Garden Route National Park enjoyed an increase of 8.5% in their total

guest numbers during 2015, while their total number of day visitors rose

an impressive 14.1%. According to SanParks, the Garden Route National

Park account also saw a 4.2% increase in its total number of black visitors.

The coastal regions offer distinctly different experiences. The Wild

Coast is a wonderfully apt description of a part of the province that

is popular with locals and international visitors alike, and it includes

towns such as Mazeppa Bay and Port St John’s. The Sunshine Coast

has hotel and conference centres such as the Blue Lagoon Hotel

and Conference Centre (on the

Nahoon River in East London)

and the Mpekweni Beach Resort

(east of Port Alfred), both of which

offer function venues in relaxing

surroundings. Lastly, the western

coast is famous for its golden

beaches. These include the surfers’

paradise of Jeffreys Bay as well

as St Francis Bay, the latter being

home to the prestigious St Francis

Links golf course. The golf course

is currently rated as one of the Top

10 golf courses in South Africa by

Golf Digest magazine.

There was good news for

the province’s far north when a

Johannesburg entrepreneur paid

R5.5-million for the Tiffendell Ski

Resort near Rhodes. The new

owner has managed to revive

South Africa’s only ski resort and

EASTERN CAPE BUSINESS 2016

56


DESTINATION OVERVIEW

Tiffendell hosted its first ski championships

in 2014.

Sports, events and festivals

The Eastern Cape tourism authorities

are increasingly looking

to the sports, events and festivals

aspects of tourism as the way to

increase the number of visitors

to the province and to increase

access to the sector for previously

marginalised communities.

The Eastern Cape hosts the internationally

recognised (and gruelling)

Standard Bank IRONMAN

African Championship triathlon

event every April in Port Elizabeth,

and the economic impact of the

Ironman is said to be more than

R40-million. Participation in the

IRONMAN has grown from as little

as just 786 entrances in 2005 to an

anticipated 2 500 in 2016.

The Africa Open is proving a

successful golf tournament for

the Eastern Cape. In the past

eight years the Africa Open has

only had South African winners,

which has been a great honour

for South Africa as the host.

The Eastern Cape is a haven

for those who love watersports

as it offers competitions for swimmers

and paddlers at the Ocean

Racing Series, open-water swimming

at the Redhouse River Mile

and yacht racing at Hobie Beach.

The Billabong MSF Pro Surfing

competition is held every July at

Jeffreys Bay, which is internationally

renowned for its perfectly

breaking waves. International

points are awarded at the event,

which celebrates its 29th year in

2016.

The National Arts Festival is South Africa’s premier arts festival. In

2015 the festival reported an attendance of 241 116 people who attended

more than 350 events (in a total of over 1 200 performances)

and attracting close to 1 000 stalls. A study by the Department of

Economics and Economic History at Rhodes University has shown

that about R33-million is brought into the area during the time of

the festival.

Even though it is a rural area, the Eastern Cape has shown success

in the gambling and betting industry. Through the rollout of Bingo

machines in the province the Eastern Cape Gambling and Betting

Board have surpassed their annual budget by over R18-million,

although the industry players in the Eastern Cape receive most of their

money from sport betting.

Heritage

The heritage and crafts subsectors are other avenues for helping emerging

tourism operators to get involved in the mainstream economy. The

opening of the Mandela Legacy Bridge near Mthatha in July 2012 was a

case in point. In this case, national government has provided the infrastructure

(including a new tar road) to enable visitors to get to Nelson

Mandela’s birth village, Mvezo.

The Eastern Cape Department of Economic Development and

Environmental Affairs (DEDEA) injected a little more than half-a-million

rand into an ethnic jewellery project in the Baviaanskloof. The project

took the work of 47 crafters working with renewable materials and

helped them convert it into marketable products.

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DESTINATION OVERVIEW

Responsible tourism has continued to be a big trend in the Eastern

Cape. The Calabash Trust, which is associated with Calabash Tours,

prides itself in this particular sector. They have managed to foster

relationships internationally and locally, which helps them to involve

their local community during their tours. In November 2015 Calabash in

Emafini hosted Reed’s College. The Reed’s did a permaculture project

and connected with the local schools doing teaching programmes

for grade sevens.

Hotels

The Eastern Cape caters for all types of visitors, from leisure to business

travellers. They have ensured that their visitors’ needs are catered for

regardless of their reason for travel when it comes to accommodation.

The Eastern Cape has ensured that their hotels meet international expectations

and standards. The Radisson Blu Hotel in Port Elizabeth has

proven to be a favourite for business travellers, in part because they offer

fast uncapped WiFi and larger than usual rooms, all of which provides

the perfect environment for executives visiting the region.

For those looking forward to a leisurely holiday in the scenic Eastern

Cape, a hotel such as the Southern Sun Hemingway would be ideal. The

Southern Sun Hemingway is not short of style, warmth or elegance.

Surrounded by a number of restaurants, movies, gaming and other

attractions, it is also accessible to the Hemingway Mall, which offers

one of the best shopping experiences in South Africa. The hotel is in

reach of most of the attractions in East London and The Eastern Cape,

making it a great destination for the leisure tourist.

St Francis Links offers a bit of both worlds, with their choice of

estate or village accommodation options. The estate accommodation

offers luxury, with its different luxurious homes away from home. The

village accommodation still offers a beautiful holiday destination being

treated as a VIP at any one of the B&Bs or hosted by friendly people.

Business tourism

The Plantation in Port Elizabeth

has continued to be an awardwinning

conference venue. In 2014

the Plantation won the PMR Silver

Arrow Award, an award that recognises

the workers and the staff

for creating the reality that makes

The Plantation great.

The Eastern Cape also hosts

some of South Africa’s best conference

centres, the East London

International Convention Centre

and The Boardwalk International

Conference Centre. The Boardwalk

International Conference Centre

developed an Environment

Management System, and its

aim is to monitor the environmental

conditions and impacts

at The Boardwalk. The model they

use is internationally recognised,

reflecting global standards on

good environmental practices.

The Boardwalk has made itself

open to the Port Elizabeth community

having given R804 517

towards different projects such

as Khayalethu Children’s home

and the Thabo trust.

EASTERN CAPE BUSINESS 2016

60


INTERVIEW

Desmond O’Connor

BIOGRAPHY

Desmond O’Connor played

a leading role in the successful

opening of the Radisson

Blu Hotel at the start of 2014.

The launch phase was so successful

that the business was

profitable within five months

from their operational start. He

has worked in the hospitality

industry since 2000 for some

of South Africa’s leading and

most prestigious hotel groups

and boutique establishments.

Radisson Blu

The Radisson Blu hotel brand is part of the global Carlson-

Rezidor Hotel Group. Desmond O’Connor is the General

Manager of Radisson Blu Hotel, Port Elizabeth.

What are the most important services that

business travelers expect?

It’s my firm belief that most travelers want to be connected (and seamlessly at

that), but they also want to be able to travel with the least amount of delays

or interruptions. The Radisson Blu Brand offers our travelers exactly that as we

are one a few brands worldwide that guarantees uncapped complimentary

high-speed WiFi. Our express check-in and check-out services, as well as our

“Grab and Run” breakfast offering that the business traveler really appreciates.

Our rooms are larger than the average hotel room, which offers our guests

an excellent working space. The hotel is also very contemporary in design,

has a great fitness center as well as food and drink outlets. And, of course,

the fact that every single room has a spectacular sea view is another huge

plus. The brand also offers an international loyalty program that is valid with

Carlson-Rezidor properties worldwide.

How important is the Radisson name in terms of

winning the confidence of your guests?

Radisson Blu is an internationally recognised brand and, with that in mind, it

assists the Hotel greatly with regards to both local and international travellers.

It is a brand name that is synonymous with being iconic, stylish and sophisticated.

The colour blue was chosen because it has positive connotations

across the world, as it is associated with inner security and confidence and

it symbolises the power to take control to do the right thing, all of which is

what the Radisson Blu brand represents. This also gives travellers a sense of

confidence when choosing our brand.

How has the Radisson brand helped you to provide

international-quality service to guests?

As part of the Carlson-Rezidor Group, the Radisson Blu brand has a service

ethos called “Yes I Can!”. This ethos is one of the modules of training that

every new employee has to undergo and, once completed, assists them in

being a true “Rezidorian”. The ethos revolves around the simple philosophy of

putting our guests first by empowering our teams to make decisions on their

own to the benefit of our guests and employees. The brand also mentors

all team members to be attentive, confident and trustworthy.

What trends have you noticed in terms of overseas

visitors doing business in the Eastern Cape?

There has been a significant increase in international corporate travel to

Nelson Mandela Bay. This travel entails more project-orientated ventures

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INTERVIEW FOCUS

and these require the traveler to

stay for longer periods of time. We

are also seeing groups visiting us,

rather than individuals. This has had

a direct impact not only on the accommodation

revenue of the Hotel,

but also incremental F&B spend.

HOTEL FEATURES

The Radisson Blu Hotel, Port

Elizabeth, has Conference

rooms ranging from personalised

boardrooms for meetings

of four people to a large

modular ballroom that can accommodate

up to 200 guests.

The conference venues are

high-demand as it is one

of the larger venues within

the city and has hosted fullday

conferences, launches,

Government Indabas, wedding

receptions and birthday

parties. These venues have

also played host to numerous

international sports teams

when visiting the city, serving

as team rooms, dining

rooms and press conference

platforms.

CONTACT INFO

Radisson Blu Hotel,

Port Elizabeth

Physical address: Corner

of Marine Drive & 9th

Ave Summerstrand 6001

Port Elizabeth, South Africa

Tel: 041 509 5000,

FAX: 041 509 5001

Email: info.port-elizabeth@

radissonblu.com

Website: www.radissonblu.

com/en/hotel-portelizabeth

63 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

A period of positive

growth and development

The year 2015 marked 60 years since South Africans from all walks of life adopted the

Freedom Charter in 1955, in Kliptown, Soweto, as well as the 25-year anniversary of the

release of Nelson Mandela from prison and the unbanning of the liberation movements.

“They declared amongst other things, that South Africa belongs to all who live in it, black

and white, and that no government can justly claim authority unless it is based on the will

of all the people,” said President Jacob Zuma.

In a year that saw world economic and political

uncertainty, South Africans still had much cause

to celebrate. Great strides have been made nationwide

in building schools and hospitals, major

efforts are underway in terms of job creation, skills

development, SMME growth, the empowerment of

women as well as innovation. After a tough period of

loadshedding and energy instability, Eskom seems

to have the national grid stabilised as well as solid

plans for the expansion of our infrastructure.

South Africa also hit the world headlines through

the discovery of a new species of human relative

(“Homo naledi”) at the Cradle of Humankind World

Heritage Site, a local doctor successfully completed

the world’s first penis transplant, and Trevor Noah

captured a slice of America’s cultural empire by taking

over as host of Comedy Central’s The Daily Show.

National priorities

The national government has rededicated itself to

eradicating racism and all related intolerances in our

country. President Zuma has stated that the country’s

ambition of achieving a growth target of 5% by

2019 is at risk because of slow global growth as well

as domestic constraints in energy, skills, transport

and logistics amongst other factors. However, the

situation was more promising on the jobs front as

Statistics South Africa’s report on the last quarter of

2014 showed that there were 15.3-million people

who are employed in South Africa.

“Jobs grew by 203 000,” said Zuma, adding that

the economy still needed a major push forward.

Zuma also presented government’s nine-point plan

to ignite growth and create jobs.

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SPECIAL FEATURE

“A lot has been achieved in the past year. We believe

that our nine-point economic intervention plan on

the economy will consolidate the achievements, and

ignite much-needed growth,” said Zuma.

South Africa has the 24th largest economy in

the world and contributes 30% of sub-Saharan GDP

despite making up only 6.5% of the population.

Sound financial management has seen South

Africa’s macro-economic fundamentals become

very strong off the shaky base that the apartheid

regime created. In particular, prudent controls meant

that South Africa was able to withstand the shockwaves

sent around the world by the international

financial-sector meltdown.

The country is recognised for an abundance of

mineral resources, accounting for a significant proportion

of both world production and reserves, and

South African mining companies dominate many

sectors in the global industry. South Africa produces

10% of the world’s gold (it is estimated that onethird

of the world’s unmined gold reserves remain in

South Africa). There have been an increase in mineral

beneficiation, which the government has targeted

as a growth sector.

Economy

National Government’s 9-point growth plan

1. Resolving the energy challenge.

2. Revitalising agriculture and the agro-processing

value chain.

3. Advancing beneficiation or adding value to our

mineral wealth.

4. More effective implementation of a higher impact

Industrial Policy Action Plan.

5. Encouraging private sector investment.

6. Moderating workplace conflict.

7. Unlocking the potential of small, medium and

micro enterprises (SMMEs), cooperatives, township

and rural enterprises.

8. Reforming state-owned companies, information

and communications technology infrastructure,

water, sanitation and transport infrastructure.

9. Operation Phakisa, which is aimed at growing the

ocean economy and other sectors.

The discovery of diamonds and gold in the 19th century

laid the platform for the development of South

Africa as an industrialised economy. Wool, wine and

mohair were the country’s only exports before minerals

were discovered.

Although mining plays a far smaller role in the

economy than it used to, it still contributes significantly

to GDP, employment and taxation income.

Demand for platinum, iron ore and manganese from

the new global powerhouses of China and India is

motivating investment in the sector in South Africa.

Mining companies account for one-third of the

market capitalisation (R1.86-trillion) in the country’s

stock exchange, the JSE.

One of South Africa’s fastest-growing manufacturing

sectors, catalytic converters, also owes its

existence to the minerals, which are important constituents

of converters. One of the central planks of

the South African government’s economic policy

65 EASTERN CAPE BUSINESS 2016


SPECIAL FEATURE

Agriculture is a catalyst for growth and food security

and there is a strong public-private sector drive to

develop an Agricultural Policy Action Plan aimed at

bringing one million hectares of under-utilised land

into full production over the next three years.

“Among key interventions this year, we will

promote the establishment of agri-parks or cooperais

to ensure that value is added to the country’s

mineral resources in this way. The country already

has many steel mills and aluminium smelters, but

many thousands of tons of raw materials are also

exported in their raw state.

A number of Industrial Development Zones and

Special Economic Zones have been set up and

promulgated in order to attract investment as well

as to increase local manufacturing capacity.

The automotive industry is one of South Africa’s

most important sectors and accounts for about 12%

of South Africa’s manufacturing exports, with many of

the major multinationals using South Africa to source

components and assemble vehicles for both local and

international markets.

Energy

The country has been through a challenging period

during which there have been serious energy constraints.

These have proved to be an impediment

to economic growth and a major inconvenience to

everyone in the country. Overcoming the challenge

was uppermost in government’s programme.

“Government is doing everything within its

power to deal with the problem of energy short-

age in the country. We are quite aware of the fact

that this is indeed a difficult period, but it shall pass

because we do have strategies in place to deal with

this matter,” Zuma said.

Government has developed a sustainable plan

that involves short-, medium- and long-term capacity

and infrastructure development, beginning with

a plan for improved maintenance of existing Eskom

power stations, enhancing the electricity generation

capacity and managing the electricity demand.

The long-term plan involves finalising South Africa’s

energy security master plan.

“As a priority we are going to stabilise Eskom’s

finances to enable the utility to manage the current

period,” said Zuma, adding that government was supporting

Eskom with R23-billion for the 2016 fiscal year.

Agriculture

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SPECIAL FEATURE

tives and clusters in each of the 27 poorest district

municipalities to transform rural economies,” said

Zuma. An initial funding of R2-billion was made

available for the agri-park initiative, while the country’s

agro-processing exports are attracting positive

interest from new markets in both Africa and China.

South African maize and apples are exported to

China and projected to yield R500-million in foreign

exchange over the next three years.

Infrastructure

The National Infrastructure Development programme

continues to be a key job driver and catalyst

for economic growth. Major projects include the

Umzimvubu Water Project in the Eastern Cape, Jozini

Dam in Umkhanyakude in KwaZulu-Natal, projects in

Bushbuckridge in Mpumalanga and phase one of the

Mokolo Crocodile Water Augmentation in Limpopo.

Progress to improve the water supply to areas

affected by shortages are underway, but the

war against water losses (which costs the country

R7-billion a year) is being waged through the

Department of Water and Sanitation’s plan to train

15 000 artisans and plumbers who will fix leaking

taps in their local communities.

Internal affairs

Cabinet has adopted vigorous and integrated interventions

to combat the vicious rhino poaching in the

country, including continuous joint operations with

key neighbouring countries, improved intelligence

gathering as well as enhancing protection in parks

and provincial reserves. Government has also made

substantial progress in establishing a border management

agency to manage all points of entry and

improve security.

To further improve access to identity documents,

citizens will now be able to apply for the new Smart

ID Card at their local bank due to a partnership between

the Department of Home Affairs and some

banks in the country. In December 2014, Cabinet

released the draft National Disability Rights Policy

for public comment. “Local government is everybody’s

business. We have to make it work. We have

launched the ‘Back to Basics’ programme to promote

good governance and effective administration

through cutting wastage, spending public funds

prudently, hiring competent staff, and to ensure

transparency and accountability in municipalities,”

said Zuma.

History

One of South Africa’s premier museums and tourist

attractions is The Cradle of Humankind, an ancient

destination that celebrates the fact that presentday

South Africa has been home to the ancestors of

human species for thousands of years.

Early in 2015 a team of archeologists, led by

Professor Lee Berger from the University of the

Witwatersrand, made a discovery that would pose

new and vital questions about the origins of the

human species and expand our understanding of

human evolution. Two years after they were tipped

off by cavers exploring the depths of the limestone

tunnels in the Rising Star Cave outside Johannesburg.

There Berger and his team discovered what they

claimed is the new addition to our family tree. The

team is calling this new species of human relative

‘Homo naledi’ and believe that part of their tribal

culture was the practice of burying their dead – a

behaviour scientists previously thought was limited

to humans.

The team believes that the chamber, located 30

metres underground in the Cradle of Humankind World

Heritage Site, was the burial ground and that Homo

naledi could have used fire for light. The discovery was

poignant considering South Africa’s energy crisis, but

it was also cause for celebrating South Africa’s role in

the story of mankind.

What lies ahead is an exciting period of growth

as the country strives to realise its potential to be the

gateway to Africa and, in so doing, helping to unlock

the enormous economic and social potential within

the continent.

Sources: SouthAfricaInfo, BrandSA, Media Club South

Africa, The Presidency

67 EASTERN CAPE BUSINESS 2016


KEY SECTORS

Overview of the main economic

sectors of the Eastern Cape

Tourism 56

Agriculture 70

Aquaculture 74

Forestry 76

Food and beverages 78

Automotive 80

Automotive components 84

Specialty gas 86

Energy 88

Education and training 92

Construction and property 96

Water 98

Banking and financial services 100

Small business development 104


OVERVIEW

Agriculture

The agricultural sector plays an important role in the lives of many Eastern Cape citizens.

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 the parts of the province that

used to be called the Ciskei and the Transkei. Improving the

agricultural yield of the eastern part of the province is seen as vital

for improving food security and lifting many thousands of people

out of poverty.

The Eastern Cape has more livestock than any other South African

province. The wool-producing merino sheep and mohair-producing

angora goats thrive in the interior and have been a vital part of the

national economy for more than a century.

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, for

instance, parts of the Amathole

and Cacadu districts that used to

be sheep or pineapple farms are

now stocked with game and are

geared towards the hunting and

tourist markets.

The Eastern Cape provides

approximately a quarter of South

Africa’s milk, with the industry

expanding as producers favour

high-rainfall coastal areas such as

the Eastern Cape. The province’s

farmers sell raw milk to major pro-

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OVERVIEW

cessors in the region, including

Clover and Dairybelle. Clover’s

Port Elizabeth manufacturing

facility has expanded its UHT milk

capacity, while Parmalat’s two

Port Elizabeth plants produce

long-life milk, UHT custard, yoghurt,

flavoured milk and butter.

New dairies have recently

been established in the East

London Industrial Development

Zone (ELIDZ) and the Coega

Industrial Development Zone

(CIDZ).

Livestock

Livestock farming is the largest agricultural

subsector 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.

Standard Bank has made R10-

million available for a piggery project

at the University of Fort Hare.

The loan will be used to buy 1 000

sows, as the project is intended to

grow the provincial herd. Further,

it will provide an additional source

of protein and act as a training

ground for agricultural managers

and emerging farmers.

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 healthconscious

international markets.

The Eastern Cape covers it all,

from Karoo lamb to CAB-certified

free range beef. These niche meat

products are leaner, healthier and

often tastier than mass-produced

alternatives. High-value meat cuts such as these will drastically increase

that value of exports from the Eastern Cape. These meat products are

farmed all over the province, with the Border region being a particularly

pronounced area beef. However, the cattle commodity is of national

concern considering the recent devastating drought.

The dorper breed (which are mainly used for meat production)

are found in the arid Karoo, while the higher-lying areas are more

conducive to the wool-producing sheep. Stats confirm that South

Africa has a large meat-eating population, as South Africans consume

on average 13.7kg of beef every year, of which lamb or mutton makes

up around 3,4 kg per annum.

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-regarded for its production of ‘easy-peelers’ such

as clementine and satsuma tangerines, as well as ‘navel oranges’. Citrus

farming is one of the province’s priority subsectors for agri-processing

and value-adding. Deciduous fruits such as apples, pears and apricots

are grown extensively in the province, primarily in the Langkloof Valley.

South Africa is the second-largest producer of chicory in the world,

after France. Chicory is grown primarily in the coastal areas around

Alexandria, between Port Elizabeth and Port Alfred. Bamboo farming

is another crop that is seen as important for the future of the province,

71 EASTERN CAPE BUSINESS 2016


OVERVIEW

and three pilot projects for cultivating bamboo have been put in place

by the Eastern Cape Development Corporation and the Industrial

Development Corporation (IDC).

Pineapples

With a production of around 80 000 tons per annum, the Eastern Cape

is the leading pineapple-producing province in South Africa and, in

total, around 90% of the stock is exported. Known as the

Sunshine Coast, Port Alfred, East London and Bathurst

provide the perfect climate for pineapple growth. As very

little watering is required the drought has not really impacted

the production line.

Cape annually, with a weekly

auction held in Port Elizabeth.

Dairy

The Eastern Cape produces a

quarter of the country’s dairy,

which makes it the country’s

Wool

Wool is grown across the Eastern Cape and it is the largest

wool-producing province in South Africa. Merino, Dohne

Merino, Afrino, Letelle and the Dormer and Île-de-France

are the most popular sheep breeds for wool. Around

90% of the wool produced in the Eastern Cape is exported

to China and various European countries. Around

15-million kilograms of wool is produced in the Eastern

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OVERVIEW

leading dairy supplier. Eastern

Cape dairy producers supply all the

major brands, including Parmalot,

Clover and Nestlé. Dairy is best

produced in cooler, coastal areas,

although the Karoo has proven

to be a major contributor to the

province’s production. Jersey and

Holstein are the best dairy breeds.

Citrus

The Eastern Cape is the largest producer

of Citrus in South Africa, and

this crop contributes significantly

to the provincial economy. The

four most popular citrus fruits are

categorised as orange, grapefruit,

lemons and soft citrus. Addo is the

largest producer of lemons in the

Eastern Cape as well as South Africa.

Citrus farming is a long process to establish as it can take up to 3-5 years

before the trees bear fruit. However, once they do then the trees will usually

keep bearing fruit for between 25-30 years.

Mohair

As leaders in mohair production, South Africa produces 53% of all mohair

globally and, together with Lesotho, 70% of the world’s production. This

combined production makes Africa a prominent continent for excellent

quality mohair.

There are two dedicated Mohair spinners in the Nelson Mandela

Metropolitan Municipality, and the majority of the world’s mohair is

processed in two plants in the Eastern Cape. Port Elizabeth is home to

the biggest mohair broker in the world, Cape Mohair & Wool (CMW),

making Port Elizabeth the mohair capital of the world. The Mohair

headquarters is located in a high density area in close proximity to

the Port Elizabeth Airport, business zones and shopping centres. The

producers of mohair are represented by the South African Mohair

Growers’ association and the breeders are represented by the Ram

Breeders Society, both with their offices situated in Jansenville, the

heart of the mohair production area.

73 EASTERN CAPE BUSINESS 2016


OVERVIEW

Aquaculture

Fish farming is believed to be the only sustainable

alternative to dwindling natural resources.

South Africa has a fairly young aquaculture industry with lowscale

production. The government of SA, through its national

department of Agriculture, Forestry and Fisheries (DAFF)

and other support sectors, are taking steps to accelerate the

development of aquaculture to commercial level. Despite this, the wild

capture sector remains the biggest contributor to fisheries, leaving

23% of South Africa’s commercial fish resources being overexploited.

Realising the industries’ advantages, aquaculture operations in Eastern

Cape have received financial support through ‘Operation Phakisa’,

launched by the President in October 2014 in line with the National

Development Plan as an initiative for unlocking the growth potential of

South Africa’s coastline. Government recognises the industry as a way of

contributing to food security as it has shown strong growth of 6.5% per

year globally. This in addition to promoting aquaculture as a means of addressing

poverty, unemployment and over utilisation of wild fish stocks.

Over the past year significant strides have been made within the

sector, with a total of R410-million in investment having been committed

for this sector by government and private sectors. The outcome is

that production has increased by 124 tons, an increase of more than

20% from the 2012 baseline (www.operationphakisa.gov.za).

The aquaculture industry in the Eastern Cape ranks second only

to the Western Cape by virtue of the availability of suitable landbased

sites for production, water temperature and the location of

industrial development zones (IDZ) in East London (ELIDZ) and Port

Elizabeth (Coega IDZ). Both industrial hubs have commenced with the

development of an Aquaculture

Development Cluster, targeting

various stakeholders to invest in

abalone culture, abalone ranching,

offshore cage culture of

finfish, mussel and seaweed production.

The main growth in the

Eastern Cape has been in marine

finfish, which is the farming of fish

such as kob and yellowtail.

To facilitate this, the ELIDZ

have earmarked 30 hectares for

such developments. There are

currently two farms in the zone,

with a combined current production

capacity of 200 tons.

The aquaculture development

and enhancement programme

(ADEP) provides funding directly

for approved applications for new

project as well as upgrades or expansions

for existing projects.

Several beneficiary fish farms

in Eastern Cape have been scaled

up and are now fully underway.

Among them is:

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74


OVERVIEW

financial difficulties experienced in the past, positive outcomes

are expected in the next phase.

• In 2015, the Department of Environmental Affairs issued authorisation

for the development of an aquaculture development zone

(ADZ) in Algoa Bay. A 1000t/y finfish facility is planned. The National

Department of Science and Technology (DST) have partnered

with Irvin & Johnson in running a marine finfish grow-out pilot in

the waters of Algoa Bay. Sea cage farming of Yellowtail has being

selected for implementation under Operation Phakisa in Algoa.

• The Siyazama aquaculture

cooperative in Hamburg,

which proudly produced

its first 277kg dusky kob

or ‘kabeljou’ harvest in

September 2015. The

Hamburg project has the

capacity to produce 20 tons

of fish per year. This was

achieved in collaboration with

Oceanwise (Pty) Ltd (formerly

Espadon Marine), the pioneer

and industry leader in mariculture

in South Africa. It is

projected that it will produce

600 tons of fish in 2017 at full

capacity based on its current

ELIDZ facilities.

• Pure Ocean aquaculture has

been operating for three

years in a pre-feasibility phase,

similarly working on growing

dusky cob of marketable size.

They have pumped over R55-

million into the ELIDZ. By overcoming

some technical and

One of the country’s most impressive aquaculture undertakings is the

Graaff-Reinet, Camdeboo Satellite Aquaculture Project (CSAP) in the Eastern

Cape. The project has been developed by the Blue Karoo Trust (BKT), which

is backed by the Eastern Cape Development Corporation (ECDC) and the

Industrial Development Corporation (IDC). The Karoo is set to become the

centre of the commercial fish-breeding initiative, which will supply fish for

the canned fish market. Over the past five years there has been a substantial

drop in Pilchard quota in the region of 80%. In the region of 90% of the South

African population eat pilchard, according to the Sarah Baartman District

municipality, a leader in promoting investment in the aquaculture sector in

this region. An alternative canned fish in tomato sauce will be developed,

constituting tilapia, carp or catfish. By 2015, it was anticipated that CSAP

would have established several aquaculture clusters and a network of some

35 satellite farming systems. The project has had multiple beneficial effects

by boosting the local economy and creating employment.

The Eastern Cape is evidently well-positioned to capitalise on growth

opportunities in the emergent aquaculture industry, with the potential

to develop three mariculture nodes. Importantly, the relatively warm sea

temperatures along the Eastern Cape coastline encourages fish to reach

market size much faster compared to the colder water further west. The

price of suitable land is comparatively lower in the Eastern Cape, as are

production costs.

An important factor in the potential for the province’s aquaculture

industry is the fact that the Eastern Cape is also home to the leading

mariculture research institute in Africa, the Rhodes University

Ichthyology and Fisheries Science in Grahamstown.

ONLINE RESOURCES

Aquaculture Association of South Africa: www.aasa-aqua.co.za

Aquaculture Innovations: www.aquaafrica.co.za

Aquaculture Institute of South Africa: www.ai-sa.org.za

National Department of Agriculture, Forestry and Fisheries:

www.nda.agric.za

National Department of Science and Technology: www.dst.gov.za

South African Institute of Aquatic Biodiversity: www.saiab.ac.za

Water Research Commission: www.wrc.org.za

75 EASTERN CAPE BUSINESS 2016


Forestry

The Eastern Cape provides the country with a vital source of timber.

An industry analysis by Crickmay Supply Chain Evolution

revealed the demand for sawn timber increased by a staggering

11% in 2015. Crickmay and Forestry SA (FSA) track the

trends of the timber industry and they base the increased

demand for timber on exponential growth in the housing sector.

However, these plantations face many challenges, chief among them

drought, the ongoing issue of land reform, pests, disease and fire

damage. More plantations are needed if supply is to meet demand

as, by 2037, the country’s supply of timber might be short by as much

as seven million tons.

Currently 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, all of which are

collectively responsible for processing around 770 500 cubic meters

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. FSA has set up a Business Development

Unit to empower small-scale

timber growers. A boost of R3-

million was received recently

from the Fibre Processing and

Manufacturing SETA for several

projects aimed at empowering

and upscaling small-scale timber

growers. Fibre availability is the

main focus of the forestry development

portfolio.

Asgisa-EC has identified a total

of 100 000 hectares of land suitable

for forestry in the Eastern

Cape. Realising that forestry is a

major employer in the rural areas,

the government now looks likely

to deliver on a promise to grant

water-use licences to emerging

plantation owners for this expansion.

The industry will facilitate

the establishment of these plantations,

requiring four-billion to

reach full potential. Asgisa-EC has

committed R700-million over the

EASTERN CAPE BUSINESS 2016

76


next 15 years. If the project reaches

fulfillment, there will be:

• 1.8-million cubic metres of

new timber

• 80%more wood for processing

• 40 jobs for every 25 hectares

planted

This makes the Eastern Cape the

only province in South Africa

where forestry can be significantly

expanded to enhance

provincial manufacturing diversification

and economic growth

in the forestry and wood sectors.

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.

The newly planned 100 000ha

of afforestation rests largely on

communal land and it is intended that the new forestry projects will

be controlled and managed by formal community entities, supported

by strategic partners.

Highlighting this endeavour is the paper and packaging group

Sappi, a key player in assisting several communities in the Eastern

Cape with forestation programs aimed at establishing sustainable

community-owned commercial forestry plantations in impoverished

communities. In 2013 they assisted in securing a R47.1-million grant

from the national Jobs Fund for its Mkambathi, Sinawo and Izini projects.

Sappi to date had bought R13.5-million worth of timber from

communities in the Eastern Cape and advanced R6-million to communities

to assist them in establishing and managing their plots.

ONLINE RESOURCES

Forestry South Africa: www.forestry.co.za

Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za

National Department of Agriculture, Forestry and Fisheries:

www.nda.agric.za

South African Institute for Forestry: www.saif.org.za

77 EASTERN CAPE BUSINESS 2016


OVERVIEW

Food and beverages

The Department of Trade and Industry (dti) has urged the Eastern

Cape to take advantage of its agricultural strength to position itself

as South Africa’s leading “agro-processing hub”.

Upstream of the food and beverage industry lies the agroprocessing

sector. Eastern Cape has the potential to position

itself as South Africa’s leading agro-processing ‘hub’

by virtue of its wonderfully diverse agriculture. There are

more than 20 different products and crops ranging from citrus and

deciduous fruits, to dairy, vegetables, grains, ostrich products, poultry

and livestock. Historically, the Eastern Cape has a strong farming and

dairy industry and the province is well-positioned to be the country’s

food basket when you consider its location, temperate climate and

year-round rainfall. 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.

Downstream of the food and beverage industry lies agro-processing

outputs for both intermediate products (to which further value is added)

and final goods, which are marketed through wholesale and retail chains.

For these reasons the agro-processing sector is defined in statistical

terms by the food-processing and beverage manufacturing sub-sectors,

and vice-versa.

Despite the seasonal difficulties brought about by the recent

droughts, the Eastern Cape has cultivated 65% of its target of 300 000ha

of maize, as part of its rural development strategy and its commitment

to food security. Furthermore, the province has also supported the

production of chicory, pineapples, tomatoes, citrus and deciduous fruit

enterprises over an area of 870 ha.

The Eastern Cape has continued to increase primary production

in support of the initiatives set forward by government a year ago

regarding the establishment of agri-parks, cooperatives and clusters

to support agriculture development in all districts in the country. The

province has continued in strengthening the agricultural value chain;

Agri-Parks, which essentially ensure development from primary production

through to processing and value addition, have mushroomed

in Lambasi, Ncorha, Sundays RiverValley, Butterworth, Matatiele and

Sterkspruit-Senqu

In the agro-processing sector, meaningful strides have been made

through the work done by the province’s Industrial Development Zones

(IDZ), with a total of 2 035 operational jobs and 1 188 construction jobs

being created. The Agro-Industrial Parks (AIP) will see the clustering of

various agri-business role-players, including manufacturers, processors,

logistics companies and other complimentary service providers

in an eco-friendly manner within

the same precinct. The IDZs have

attracted companies such as

Cape Concentrates, Dynamic

Commodities, Espadon Marine

and Pure Ocean Aquaculture.

Prospective investors involved

in the processing of coffee, cereals,

protein and energy supplements

have also shown a keen interest

in the R86-million agro-processing

multi-user facility at the Coega

IDZ. Work is in progress to expand

Coega Dairy and Coega Cheese

by 9 500m2. This development is

aimed at increasing milk export

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OVERVIEW

volumes by 200%, increasing

cheese export by 60% and attracting

additional foreign revenue into

the country. There is further potential

in high-quality competitive

dairy exports to new markets.

The Eastern Cape Development

Corporation (ECDC) have disbursed

R27-million in development

loans and invested R3.8-

million risk capital for nearly 30%

equity in the Ndlambe Natural

Industrial Products (Pty) Ltd, which

is a pineapple beneficiation company

making pineapple juice. This

has supported the revival of the

Eastern Cape pineapple industry.

The Eastern Cape also retains an impressive portfolio of JSE-listed

investors. Clover merged with Dairybelle in a bid to expand its product

portfolio range and reentered the yoghurt market in the first quarter

of 2015. Clover Mama Afrika, Clover’s corporate social investment

project, also received the Diamond Arrow Award by the Performance

Management Review (PMR) earlier this year. The PMR award recognises

the company’s attributes such as commitment to communities, job

creation, and social upliftment.

The country’s largest poultry producers, RCL-foods and Sovereign

Food, have chicken facilities in the Eastern Cape – the poultry sector

makes up a quarter of the national agricultural GDP. As the price of maize

(which constitutes the bulk of a poultry companies’ cost base) begins

to rise, profit margins are being challenged. RCL foods reported that

the single-biggest operational feature of the 6-month period ending

December 2015 was the severe drought, which had a pervasive impact

on the business. They are in the process of developing proactive pricing

strategies designed to protect market shares.

79 EASTERN CAPE BUSINESS 2016


Automotive

The Eastern Cape is home to four of the seven OEMs operating in South

Africa and up to 100 major component manufacturers, and is without

doubt the backbone of the economy in the area.

Eastern Cape-based international vehicle assemblers include

Mercedes-Benz in East London, General Motors and Volkswagen

in Nelson Mandela Bay and Ford - which produces engines for the

domestic and international market at its plant in Port Elizabeth

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

10 000 employed at original equipment manufacturers (OEMs) and

an additional 30 000 employed by some 1500 supplier companies.

Mercedes-Benz South Africa

Mercedes-Benz South Africa (MBSA) added yet another milestone to its

long association with the country when the 125 000th truck rolled off

the assembly line at its plant in East London towards the end of 2015.

The first truck was assembled at the then Car Distributors Assembly

(CDA) in East London in 1962. CDA, the company that would evolve into

MBSA, opened its doors in 1948 and was contracted in 1958 by Daimler-

Benz to assemble Mercedes-Benz products. Since then, the commercial

vehicles division of MBSA has assembled the Unimog, Mercedes-Benz

buses, FUSO trucks, Mercedes-Benz trucks and Freightliner trucks.

Goodhope Ncapo, MBSA Divisional Manager for Commercial

Vehicles: “As the assembly team, we have clear and stringent processes

that we never deviate from. This has meant that our plant is rated as

one of the best in the world. We pride ourselves on world-class quality

and unmatched reliability. As we all witnessed today on the production

line, we only produce trucks that our customers will be more than

satisfied with,” adds Ncapo.

The 125 000th truck from the

assembly line, a Mercedes-Benz

Axor 3335, was handed over to

one of Mercedes-Benz Trucks’

most valued customers – Aqua

Transport and Plant Hire. The

Euro III Axor will soon be part of

Aqua’s increasing and exclusive

Mercedes-Benz fleet, operating

as a water tanker.

“As Mercedes-Benz Trucks, we

are proud that the 125 000th truck

to be assembled by our plant in

East London is being handed over

to Aqua Transport and Plant Hire.

It gives us great joy to know that

our exceptional quality Mercedes-

Benz vehicles, such as the reliable

Axor, are contributing towards

the growth and success of Aqua

and that our vehicles offer our

customers a competitive advantage,”

says Clinton Savage, Head

of Mercedes-Benz Trucks.

“It is fitting for us to do this

handover here at our plant, an

impressive facility that reinforces

EASTERN CAPE BUSINESS 2016

80


our legacy of reliability, safety and

outstanding workmanship. We

are not only here to celebrate this

truck, but also the long-standing

relationship we have developed

with Aqua.

“The 125 000th truck forms

part of a bigger order of 165

Mercedes-Benz trucks, which

makes this one of the largest

single orders for our trucks. This

is only possible because the

quality measures and processes

from our plant are remarkable,”

adds Savage.

Facts and figures

• Total value of automotive

component exports for 2015

amounted to R45.7-billion.

• There were 148 global export

destinations for South African

component exports.

• Total South African vehicle

exports in 2015 amounted to

276 873 units, with a total value

of R70-billion.

• Industry contribution to GDP in 2015 was 7.2%

• The biggest market for South African automotive component

exports in 2015 was Germany.

Eastern Cape automotive opportunities:

• New component manufacture – potential exists for investment into

component manufacture in support of the automotive industry

in the province.

• Catalytic converters – business opportunities exist for investment

in stainless steel, ceramic core and assembly operations directly

related to the catalytic converter industry based in Port Elizabeth.

• Automotive tooling, parts and components - opportunities exist for

businesses to invest or expand in the areas of tooling, jigs, assembly

lines, auto and safety glass, plastic automotive fittings, engine parts

and rubber and plastic components.

• The Automotive Supplier Park (ASP) at the East London IDZ is now

operational and offers attractive opportunities to component

manufacturers in particular.

Business opportunities in the automotive component cluster -

co-operation with established first and second tier suppliers for

storage solutions, JIT distribution, research and development and

training initiatives.

• New vehicle manufacture - the Eastern Cape has been identified

as a potential investment destination for a new electric car production

and assembly plant for both domestic market and export. The

Eastern Cape offers excellent location advantages coupled to access

to SADC and African markets.

81 EASTERN CAPE BUSINESS 2016


PROFILE

Daimler opens new Regional

Centre for Commercial

Vehicles in Southern Africa

Mercedes-Benz South Africa is expanding its operations in southern

Africa to take advantage of growth opportunities in the industry.

Kobus van Zyl and Dr Wolfgang Bernhard.

Mercedes-Benz South Africa (MBSA), along

with its brand divisions Daimler Trucks &

Buses and Mercedes-Benz Vans, strengthened

its continued drive for excellence and

customer dedication with the opening of the Regional

Centre Southern Africa (RCSA) in February 2016.

The RCSA will be responsible for Daimler’s full commercial

vehicles portfolio in the region, ranging from

the full offering of Mercedes-Benz Vans, heavy-duty

Mercedes-Benz trucks and buses as well as the uniquely

suited products (trucks and buses) from FUSO. The

Regional Centre Southern Africa will be responsible

for South Africa, Namibia, Botswana, Zimbabwe,

Mozambique, Malawi, Zambia, Lesotho and Swaziland.

“Opening our new Regional Centre Southern

Africa, we are able to respond even faster to our

commercial vehicle customers and their require-

ments. This will help us to further tap the growth

potential of this emerging region,” said Dr. Wolfgang

Bernhard, member of the Board of Management of

Daimler AG responsible for Daimler Trucks & Buses.

Clear focus on commercial vehicles

Based in Pretoria, South Africa, the Regional Centre

Southern Africa will be a catalyst in ensuring highly efficient

business processes and an even higher level of

customer satisfaction. MBSA and its parent company

Daimler AG are confident that the Regional Centre

Southern Africa is poised to provide excellence and ultimately

a competitive advantage to its growing number

of southern African-based customers through

superior products and custom value chain offerings.

“Having a stronger presence in the southern

African markets means that we are able to react

faster and be in touch more frequently with our

EASTERN CAPE BUSINESS 2016

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PROFILE

commercial vehicles customers and the various

General Distributors in the respective countries,” said

Kobus van Zyl, Executive Director: Daimler Trucks &

Buses Southern Africa. “The RCSA provides further

opportunities for all our commercial vehicle endeavours,

including sales, after-sales, marketing, client

services and parts.”

Long-term potential

Southern Africa is a promising growth region for all of

Daimler’s commercial vehicles. In line with the global

outlook, the region is facing a tough economic cycle

but is still expected to grow at a rate of 3.75% in 2016.

Improved external prospects and domestic policy

improvements will support gradually stronger growth

rates from 2017, with the regional average back up to

more than 4.5% annually during 2018-2020. Moreover,

southern Africa possesses large reserves of untapped

natural commodities such as copper, oil and gas. In

2015, Daimler sold approximately 5,500 trucks and

buses in the region.

About the Commercial

Vehicles Regional Centres

The Regional Centre Southern Africa is the third of six

Regional Centres being opened for Daimler’s commercial

vehicles business around the world. In February

2016, the Regional Centre for East, Central, and West

Africa started its operations from its base in Nairobi,

Kenya. The first Regional Centre had been opened in

October 2015 in Dubai as Daimler Commercial Vehicles

Middle East North Africa (DCV MENA). Similar bases will

follow for South Asia, Southeast Asia and Latin America

during the course of 2016.

In the past, Daimler had managed these regions

primarily from its group headquarters in Stuttgart.

Further decentralisation will keep the business even

more in tune with the market. The many years of

product and service-related expertise pay off in

this respect just as much as the broad portfolio of

products offered by the group’s various commercial

vehicles brands.

CONTACT INFO

Physical address: Wierda Road (R576/M10

West), Zwartkop, Centurion

Postal address: PO Box 1717, Pretoria 0001

Tel: 012 677 1500

Website: www.mercedes-benzsa.co.za

From the left: Dr Nuno Sousa, Bob Crossley, Kobus van Zyl, Dr Wolfgang Bernhard, Francisco dos

Santos and Kelvin Windell.

83 EASTERN CAPE BUSINESS 2016


OVERVIEW

Automotive components

The Eastern Cape has earned its reputation as the “Detroit” of South Africa

because of its world class infrastructure and port location, allowing for the

easy access to global networks.

Car production is the economic anchor for the province, having

the highest concentration of motor manufacturing firms

and component suppliers in Nelson Mandela Bay (NMB)

– earning the city the appellation “Automotive Hub of

Africa”. The region produces half of all motor vehicles made in South

Africa, and is home to four of the country’s seven Original Equipment

Manufacturers (OEMs) namely General Motors SA (GM), Volkswagen (VW),

the Ford Engine Plant and China’s foremost vehicle manufacturers, First

Automotive Works (FAW).

Implementation of several significant energy farms in the Eastern Cape

delivers unmatched energy security to the manufacturing sector, mitigating

setbacks by Eskoms loadshedding. PetroSA’s Project Mthombo will change

the industrial face of the province. Project Mthombo, a $10-billion 300 000

barrels/day oil refinery, is set to come on stream in the Coega Industrial

Development Zone around 2022 spurning massive opportunities. The

proposed “utility island” serving the refinery will include a desalination plant

and power station, which will channel excess capacity into the city’s water

and electricity supply networks, enhancing industry’s ability to do business.

The development of special economic zones within the province has

been a game changer for South African manufacturers. The development

zones offer investors existing infrastructure, access to port facilities,

dedicated customs support, duty-free importation for raw materials, zero

VAT rating for locally sourced materials

and various tax and incentive

schemes. Promoting industry clustering

within the zones leverages

the commercial potential of particular

regions. The Port Elizabeth,

Coega and East London Industrial

Development Zones (IDZ) provide

state-of-the-art Automotive

Supplier Parks to world renowned

suppliers that currently manufacture

components for leading

OEMs. The Coega Development

Corporation (CDC) earmarked 306

hectares of land for automotive

manufacturing industrial activity

through its recently unveiled five

year strategic plan, which will embrace

an OEM industrial clustering

approach. A multi-OEM complex

for the automotive assembly and

components manufacturing sectors

has been established in Zone 2

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OVERVIEW

of Coega IDZ to date. The grouping

of automotive component suppliers

in this new ‘Nelson Mandela

Bay Logistics Park’ (NMBLP) has

played a vital role enhancing the

region’s automotive footprint. The

multi-OEM complex will accommodate

vehicle assembly halls and

shared service infrastructures. The

intention is to bring together first,

second and third tier automotive

component suppliers in one megaautomotive

zone.

A further notable achievement

by CDC includes the establishment

of China’s FAW vehicle assembly

plant on a 40 hectare site in Zone

2 of Coega IDZ. FAW became operational

in July 2014 when the facility

was officially opened by the

President. Pressure is been placed

on OEM’s to improve their local

content to 70% in order to negate

the costs of importing components

using long supply chains, and as

a measure to weather fluctuating

currencies.

The local South African automotive

industry finds it increasingly

difficult to compete with

such global manufacturers due to

the low percentage (on average of

35%) of local content in the vehicles

produced in the country. Linked to

affordability, an opportunity which

may deserves a lot more attention

by the SA automotive sector is the

development and manufacturing of an affordable and unique “African

Vehicle”, according to Gustav Meyer, CDC business manager. The vehicle

should have a high local content and should offer passenger and 4x4

derivatives to meet Africa’s particular demands.

According to the Automotive Industry Development Corporation

(AIDC), there are close to 100 major automotive component manufacturers

in the Eastern Cape. Leading component suppliers based in the region

manufacture and export almost all of the components required in a

vehicle, including seating, lights, harnesses, injection moulding, engine

components, batteries, exhausts, catalytic convertors, tyres, glass, radiators,

wheels, car radios and axles amongst others.

The tyre and rubber products industry is also well represented by

multinationals Goodyear, Continental Tyre and Bridgestone, while several

multinational catalytic convertor companies (10 in total in the NMB metro)

produce a sizeable percent of global demand for catalytic convertors.

In 2014, General Motors SA in partnership with component manufacturer

Tenneco South Africa was awarded a R6-billion contract and

began to export catalytic converters to the US and Europe. Germanbased

company Friedrich Boysen GmbH & Co KG has recently made

its first multimillion-rand automotive investment in the province. It

aims to produce 90 000 complete exhaust system units per annum

for the new Mercedes-Benz South C-Class, at the new manufacturing

plant in East London’s IDZ.

The demand for “clean air” vehicle emissions from all major economies

has resulted in sizeable expansion in the catalytic convertor

industry. Carbon–emissions tax serves to drive the demand for these

devices responsible for converting pollutant gases into less harmful

ones within the vehicle’s exhaust system. However, the industry relies

heavily on platinum mined locally, and suffered setbacks during the

crippling and protracted mining strikes in 2014.

Research into alternate catalysts has resulted in several technologies

and materials showing promise with respect to platinum replacement

in catalytic convertors. This will shift the reliance away from platinum

group metals, placing the South African catalytic convertor industry

at risk. Factor in electric vehicles and hybrids, and a drop in demand

by the automotive industry can be predicted – at least for use in

catalytic converters.

85 EASTERN CAPE BUSINESS 2016


OVERVIEW

Specialty gas

The launch of a new industrial and Specialty Gas plant in the Eastern Cape has changed

the face of the industry in the province forever.

The demand and supply side of industrial gas is strong in the

Eastern Cape and it continues to play a pivotal role in the

growth of the industry in the province. The Eastern Cape is

the perfect location to grow such an industry, in particular

thanks to the support of the Coega Industrial Development Zone

(IDZ), as specialty gas is playing a consistent and growing role in

most industrial processes.

Industrial gas pioneers Air Products have, in fact, positioned their

national investment strategy around the Eastern Cape. The trailblazing

specialty gas and chemical manufacturer, supplier and distributor

invested a weighty R300-million into a high efficiency and reliable

state-of-the-art air separation unit (ASU) a few years ago. In so doing

they changed the face of the gas industry in the province forever. This

investment also went a long way towards re-shaping the industrial

future of the province.

This ASU is one of 16 similar investments (plants) in South Africa

to benefit from the company’s long-term capital investment strategy

and it shows huge potential to further stimulate the Eastern Cape’s

demand and market growth. On top of the gas-list is the supply of

liquid oxygen and nitrogen to meet the needs of local industry.

Paving the way for the longawaited

localised industrial gas

supply for the Eastern Cape, Air

Products (the largest tonnage

supplier of industrial gases in

South Africa) introduced to the

province a full bouquet of process

gases when it committed

to ensure the sustainability of gas

supply for years to come.

The company’s identified

markets for growth (including automotive

and component manufacturing

and fabrication, food and

beverage, agro-processing and

their related value chains) are well

aligned with the sectors prioritised

for growth in the Eastern Cape’s

provincial industrial development

strategy. This is especially the case

as liquid oxygen and nitrogen play

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OVERVIEW

a key role in the metals processing

sector for cutting and laser applications.

Metals processing supports

diverse industries, including the

manufacture of renewable energy

components, another key sector

where the Eastern Cape is driving

industrial growth.

“As an industrial gas company,

we were ecstatic to note the Coega

Development Corporation’s (CDC)

acknowledgement of what we

have long known: that for industry,

gas is the fourth corner in a quadrant

of utilities essential for doing

business,” said Mike Hellyar, MD of

Air Products SA.

“Like the essential elements

(air, fire, water and earth), industry

needs water, electricity, fuel and gas

for production. The concept of industrial

or specialty gas as a utility is

an appreciation of its consistent and

growing role in most industrial processes.

Gas is literally in everything

we do - and Air Products has proven

this across the industries we serve;

from automotive to agro-processing,

pharmaceutical to petro-chemical,

and a range of manufacturing

applications in-between.”

According to Hellyar, to classify

industrial gas as a utility is a

logical step, simply meaning that

the product is always available

when required.

“For example, when a customer requires nitrogen, all they have to

do is open a valve and the product is there ‘on tap’, because we have

provided a direct pipeline. Essentially, this is what defines the term

‘utility’: requirements are met at the push of a button.”

CDC business development executive manager, Christopher

Mashigo, hailed the arrival of the ‘fourth utility’.

Air Products says it has been keeping a close eye on the economic

stability of the Eastern Cape over the years, especially watching how

the Coega IDZ gained traction as it racked up significant investments.

“Establishing our air separation unit in the Coega IDZ is a clear

indication of local industry’s need for gas, previously and precariously

delivered by long-distance trucking. We have seen the value of

establishing this new plant after the signing of our neighbouring IDZ

tenant, First Automobile Works (FAW), as a customer. Several more are

still under negotiation.”

It is anticipated that more companies will position themselves in and

around the Air Products plant at Coega and that they too will experience

the service difference many others are currently enjoying. This will

contribute to the full realisation of industrial gas as a fourth utility for

the Coega IDZ.

The positioning of the air separation unit in the Coega IDZ gives Air

Products the opportunity not only to serve existing industrial gas users

better in terms of security of supply, but it also presents two further

opportunities: to assist existing users in reducing costs and improving efficiency,

and secondly, to showcase the benefits of gas to non-traditional

users. This will stimulate demand and open up new markets for industrial

gas, with positive knock-on impacts on industrial activity and economic

growth in the region.

Agro-processing, for example, is a growing sector in the Eastern Cape

and has been identified by both provincial and national government as

a key sector for industrial development. There are significant opportunities

for players in this sector to reduce energy costs and improve both

processes and product quality by using industrial gas as a supplement

or replacement for existing methods such as mechanical freezing.

Industrial gas is now primed to replace and improve traditional methods

in this sector and others in the province.

87 EASTERN CAPE BUSINESS 2016


OVERVIEW

Energy

The Department of Energy in the Eastern Cape has taken a determined approach

to lessen electricity constraints and its negative effects on industry.

The Department of Energy has initiated a two-fold approach in

their efforts to ensure the province is able to rely on a constant

source of energy for private and public sector business as well

as for public household consumption. In response to electricity

supply constraints and price increases, and on the back of existing cost

pressures and market demand challenges, a rapid response team has been

setup to engage with industry on the mitigation of the negative impact of

outages. Second, with respect to electricity provision, they are expanding

the transmission and distribution network to address historical imbalances,

provide access to electricity for all and to support economic development.

Last year the Department of Energy allocated R723-million to the Eastern

Cape for 37 550 Eskom connections. In addition to this, municipalities had

been allocated R285-million for 15 544 connections.

In total, 95% of the country’s electricity supply comes from Eskom and

this is generated through its coal power plants. The Eastern Cape has

five power stations, but none of them are major power generators. The

Port Rex power station in East London is a peak-demand facility that can

generate 171MW.

The Eastern Cape’s Department of Energy is making significant progress

in positioning the province to become one of South Africa’s energy hubs.

The coastal province has a number of natural advantages: a long coastline

with strong wave power, lots of sunlight and consistent winds off the sea.

Government needs to find an alternative source of energy to achieve

its targets in terms of additional power capacity, adding around 40 000

megawatts by 2030. National government’s renewable energy procurement

programme gained momentum with a host of independent power

producers (IPP) biding to supply power to the national grid. A total of 47

wind, solar, and mini-hydro projects have been awarded 20-year contracts

to generate electricity.

Wind

Wind farms in the Eastern Cape that are currently transporting components

that have been sourced from India, China and Germany include

Metrowind van Stadens (just south of Port Elizabeth), Mainstream’s Jeffreys

Bay Wind Farm, African Clean Energy Developments/Suzlon’s wind farm

near Cookhouse, and Red Cap’s Kouga Wind Farm near Oyster Bay.

The Coega Industrial Development Zone (IDZ), which houses the

deepwater port of Ngqura, is suitable

for receiving wind turbine

components for wind farms due

to their large size. Aptly, it is recognised

as the Eastern Cape’s wind

energy gateway.

The Eastern Cape’s Energy

Department have made the

Jeffrey’s Bay Wind Farm the biggest

in Sub-Saharan Africa. It started

generating electricity in mid-2014

and is expected to supply enough

clean, renewable energy to meet

the needs of over 100 000 households

in the province. Furthermore,

well over 45% of the total project

value of the Renewable Energy

Facilities in the Eastern Cape have

been allocated for local procurement,

and the intention in this

regard is to stimulate the development

of localised industries and the

green economy. As South Africa

attempts to capitalise on employment

opportunities afforded by

the green economy, the renewables

sector is seen as a key driver

towards achieving its green growth

aspirations.

The Van Stadens wind farm has

reached completion and will see

26 megawatts of energy being

produced pumped back into the

grid. The project is a major part of

the government’s push towards

renewable energy solutions and

all of the companies involved are

experts in the renewables industry.

Van Staden’s Wind Farm is situated

30km west of Port Elizabeth

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OVERVIEW

(the city is conveniently known as

South Africa’s ‘windy city’), on the

Klein Rietfontein farm, at the southwestern

extremity of the Nelson

Mandela Bay Municipality (NMBM).

MetroWind, the 100% South African

company, is a specially formed entity

designed specifically to develop

the Van Stadens Wind Farm. After

the government announced its

IPP (Independent Power Producer)

programme, and MetroWind was

selected as a preferred bidder

in the tender process, the company

formed another new entity

called Rubicept (Pty) Ltd, which is

the project company for the Van

Stadens Wind Farm. Rubicept was

responsible for the development,

operation and maintenance of the

wind farm. Early last year the facility

reached completion and the 27MW

wind farm started commercial operations

and supplying electrical

power to the regional grid. The

wind farm facility features nine

3MW turbines, each with a hub

height of 90m and employing

three 56.5m blades. The project

will offset 80 000 t/y of carbon dioxide

and water, and will generate

80 000 MWh/y of electricity, which

is enough to power 5 000 to 6 000

homes.

Rubicept subcontracted Edison

Power to handle the electrical work

on the Van Stadens wind farm project.

The Edison Power Group is the

oldest electrical contracting company

in South Africa and specialises

in wind and solar engineering, procurement

and construction (EPC).

While providing unrivalled electrical

expertise to this project, Edison

Power is also benefitting by moving

one step closer to its goal of being

the biggest and best electrical con-

tractor in Africa by 2017. The company is the largest electrical contractor

in the Eastern Cape, with a client portfolio profiling the provinces largest

developments such as Hemingway Mall, The Boardwalk Casino and

Umtata Hospital, to mention but a few. Edison Green is their renewable

company and they work in collaboration with Suzlon, the fifth-largest

wind energy company in the world.

Solar

Edison Power is negotiating with another IPP who use photovoltaic

Technology (PV) for power generation. This partnership would create

solar farms that are emission free and carbon neutral. Social responsibility

is at the top of this company’s agenda for encouraging the conservative

generation and use of energy.

Of the 47 renewable energy facilities contracted nationally under

the renewable energy program, 27 are solar PV plants. Last year Scatec

Solar scheduled the commissioning of a new plant in Burgersdorp, and

the 75MW plant has panels mounted on single axes, enabling them

to track the sun and optimise electricity generation by a further 20 %.

A pilot solar-powered project saw 3 000 shacks in the Nelson Mandela

Bay municipality get solar power for lightning and the charging of

cellphones.

Eastern Cape’s Energy Department intends to install 4 355 solar connections

in Mbhashe, 1 180 in Ngcobo and 4 000 in Matatiele.

Hydropower

Hydropower is a viable alternative to fossil fuels, with the Eastern Cape

realising the benefits of using water to generate electricity. However, 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. Completion of the Umzimvubu Dam and its

associated hydroelectric plant will also ensure considerable energy gains.

Gas reserves

The discovery of shale gas reserves in the Karoo Basin may offer another

opportunity, although this is subject to close inspection of possible

environmental risks associated with its extraction. Research conducted

in partnership with the Nelson Mandela Metropolitan University in 2015

will provide insight and understanding for the potential of shale gas as a

viable energy resource. It will further enable the provincial government

to plan for optimal socio-economic and environmentally responsible

outcomes.

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Van Stadens Wind Farm

MetroWind (Pty) Limited is a Special Purpose Vehicle (SPV)

company formed for the express purpose of developing the

Van Stadens Wind Farm project.

The Van Stadens Wind Farm outside Port Elizabeth in the Eastern

Cape started construction in September 2012, with the first

turbines erected the following year, providing vital power to

the Nelson Mandela Bay municipality. The farm boasts nine

3-megawatt wind turbines, accounting for nearly half the 10 percent

renewable energy target planned for Nelson Mandela Bay, and providing

power for around 5 000 homes according to reports.

The project is aligned with the Department of Energy of the Republic of

South Africa’s Renewable Energy Independent Power Producer procurement

programme and Integrated Resource Plan, and will mitigate existing

Eskom grid losses in the area, as well as greenhouse gas emissions.

The potential of the “windy city”

Located in one of the best wind energy areas in South Africa, the project

uses state-of-the art technology and is designed to minimise any negative

impacts on the environment and its neighbours. Local community

members will share in the benefits of the project through a 5% interest

held through the MetroWind Community Trust.

A further 1.5% of annual revenue will be directed towards socioeconomic

and enterprise development projects. The wind farm will

not only create facilities and jobs, but also increases knowledge and

skills and provide a strategic opportunity to foster a community that is

uniquely positioned to benefit from the growth of sustainable economic

development.

The Wind Atlas for South Africa

In March 2012 South Africa released The Wind Atlas for South Africa,

helping to identify other suitable

wind energy sites in the Eastern,

Western and Northern Cape provinces,

and collating some 30 years’

of wind data. A website displays

wind speed, frequency, direction

and estimated power output, and

will be regularly updated as new

measurements become available.

South Africa has excellent wind energy

sites located along its coast

and in several inland areas.

Also participating in the

project are the South African

Weather Service, the University

of Cape Town’s Climate System

Analysis Group, and the Council for

Scientific and Industrial Research.

The Technical University of

Denmark’s wind energy department

is also assisting with expertise,

while funding is provided

by South Africa’s Department

of Energy, the Danish Embassy

in SA, and the UN Development

Programme’s Global Environment

Facility.

CONTACT INFO

Contact

Physical address: Metrowind

Van Stadens Wind Farm, 14

Rose Street, Central Port

Elizabeth 6065

Tel: +27 41 505 8000

Fax: + 27 41 585 3437

Email: info@metrowind.co.za

Website: www.metrowind.co.za

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Edison Power Group

Founded 34 years ago, the Edison Power Group is the

oldest electrical contracting company in South Africa.

The Edison Power Group specialise in electrical installations in all aspects of the

electrical industry including commercial, industrial, HV and LV reticulation, township

reticulation, fibre optic installations, live line installations, smart metering, wind

and solar EPC and substation and transformer installations in the Eastern Cape.

This company is the largest electrical contractor in the Eastern Cape area and is

regarded as the trendsetter in the electrical industry. EPE has completed projects

such as the Wild Coast Sun, The Hemingways Mall, The Boardwalk Casino, Umtata

hospital and Hemingways Casino. Their most recent involvement in renewable

energy initiatives was to be the preferred bidder for the Van Stadens wind farm

project in the Eastern Cape.

Green energy

Edison Green, the company’s renewable wing, is involved with the fifth-largest

wind energy company in the world, Suzlon. They are currently also in talks with

another IPP who uses PV (Photovoltaic) Technology for power generation. This

would create solar farms which are emission free and carbon neutral.

ID and Passport Technology

With an increased need for enhanced citizen security globally, more governments

are making the decision to implement digital identity solutions to replace

traditional paper documentation. New generation e-passports, e-driving licenses

and national e-identity cards are all part of the technology programmes currently

being developed.

Supply Chain Management Software

Supply Chain Management Software offers their clients the flexibility to track and

adapt quickly to supply and demand, optimise inventory, labour, resources and

space and to improve perfect order rates.

Smart meters

The Edison Power Smart Metering Division has an alliance with Itron, which is the

world’s leading provider of energy and water management solutions for utilities

with 10 000 employees.

Transmission and Distribution

Their Transmission and Distribution division specialises in the erection of

transmission and distribution lines. They have an alliance with KEC international

and Quanta services, two multinational companies with resources to capture the

booming transmission and distribution projects throughout Africa which has got

a potential value of over R 100 Billion over the next 10 years as Africa drives its

energisation programme.

www.edisonpowergroup.co.za


OVERVIEW

Education

and training

The Eastern Cape has a wide range of educational institutions, but the

strategic focus of the public and private sector is increasingly moving

toward skills training that is relevant to the needs of the economy.

Amongst the goals of the National Skills Development

Strategy are to train 1 000 workers in skilled trades per year

and upgrade the National Certificate (Vocational) to the

extent that it comes to be accepted by all employers as a

valued certificate.

Sector Education and Training Authorities (SETA) 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 as part of a contribution to youth

development in the province. Each SETA is responsible for a Sector Skills Plan.

The Eastern Cape is home to four universities, and the University of South

Africa (Unisa) has satellite facilities at a few locations across the province.

Three of the province’s universities are comprehensive universities. The

Southern African Regional Universities Association defines comprehensive

universities as being midway between a traditional university (offering formative

degrees) and a university of technology (the latter are more focused

on vocational and technical programmes). Nelson Mandela Metropolitan

University (NMMU), Walter Sisulu University (WSU) and Unisa all offer diplomas

and degrees with a mix of vocational and academic programmes.

Based in Port Elizabeth, NMMU has six campuses (one of which is lo-

cated in George) and seven faculties.

Its broad mix of qualifications

is well-illustrated in the faculties of

Engineering, the Built Environment

and Information Technology.

WSU has five faculties: Education,

Heath Sciences Bus iness,

Management Science and Law,

Science, Engineering and Technology.

The Fort Hare Univer sity

is South Africa’s leading institution

in agricultural sciences, with

several research programmes

under pinning its dramatic rise in

research outputs and transformation

since 2000.

Rhodes University in Grahamstown

has more than 30 units, including

the institute for Environmental

Biotechnology and the

institute for Social and Economic

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Research (ISER). The journalism

school is a leader its field. The

university has a capacity of 6 000

students (the majority of which

live in residences) of which 25%

are post-graduates.

However, its academic and research

staff of 320 hold more than

265 masters and doctoral degrees

between them.

Schools

Grahamstown is something of an

educational centre, with Kingswood

College, Graeme College and

Rhodes University all located in

“The City of Saints”, a reference to

the large number of churches.

The St Andrew’s College private

school of about 450 learners (also located in Grahamstown) has a strong

rowing programme and helped to develop the skills of Andrew Thompson,

one of the four South Africans who brought home gold in the London

Olympics.

The Eastern Cape is home to a number of traditional boy’s schools,

including Queens’s College in Queenstown, Dale College in King William’s

Town, Muir College in Uitenhage and Grey High School in Port Elizabeth.

The agricultural school in Cradock, Marlow, not only has a deservedly

high reputation for farm education, but also consistently turns out one

of the country’s best schoolboy rugby teams, despite being a relatively

small school.

Like many other centres of black educational excellence, Healdtown

Comprehensive suffered severely during the apartheid era. Institutions like

Lovedale Public TVET College and St John’s College in Mthatha set high

standards for their learners. These schools are the focus of the Historic

School Restoration Project.

Steel manufacturer ArcelorMittal is a partner in the construction of a

new primary school in Mthatha. The R47-million Mandela Park Primary

School will be built using alternative building methods, thereby reducing

the cost and reducing environmental impact.

In the past 22 years of democracy, tremendous strides have been made

in transforming education. More than 90% of learners in public schools

benefit from the non-fee policy. Grade R classes are attached to more

than 90% of primary schools. Enrolment for learners with special needs

increased by more than 7 000 compared to previous years, rising from 12

000 to 19 000. The transformation plan aims to improve the system by

increasing the number of functional schools by appointing capable principals

to lead schools and to ensure that no school is without a principal.

Other goals are for strengthening the administration and management

of curriculum delivery in public schools, improving the quality of primary

education through a number of intervention including training of

educator and use of Information and Communication Technology

(ICT). The province’s school-nutrition programme feeds 1.6-million

children, while the transport programme delivers approximately 56

461 children to 614 schools.

College

The Eastern Cape has eight Technical Vocational Education and Training

(TVET) colleges: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe,

King Sabata Dalinyebo, Ikhala and Eastcape Midlands College, most of

which have more than one campus.

There are 20 000 students enrolled at this level in the province. TVET

colleges provide skills training to equip students for the workplace. Courses

offered range engineering, business and marketing studies to haircare,

bricklaying and welding.

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OVERVIEW

As the leading college in the important centre of Mthatha, the King

Sabata Dalinyebo TVET College, located in the Eastern Region of the

Eastern Cape Province in the O.R TAMBO District municipality serves

28% of the Eastern Cape population, offers business and engineering

studies among its formal programmes, and short courses in bricklaying

and computer studies.

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 (120km from East London) and

Zwelitsha, near King William’s Town. The programmes at 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, using the institution of ‘learnerships’ to bridge the divide

between education and employment.

The Eastern Cape has 295 centres of adult basic education and training

(Abet), at which approximately 43 724 adults attend classes.

Sector Education and Training Authority (SETAs)

The Premier of the Eastern Cape oversees the Eastern Cape Provincial Skills

Development Forum. Memorandums of understanding (MoU) have been

signed with several SETAs to promote skills development in the province.

A R20-million MoU with the MerSETA (Manufacturing, Engineering and

Related Services) will see learnerships and apprenticeships introduced

throughout the province.

MerSETA has a big role to play 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.

The Master Artisan Academy of SA, Electric Welding Limited Company

(ESAB), and Industrial Welding Supplies have signed an agreement whereby

they will train more qualified welders.

A national programme of the Local Government SETA (LGSETA) offers

learnerships in auditing to municipal employees. In the OR Tambo

District, the LGSETA catered for 15

water and waste learnerships, 15

municipal finance certificates and

38 municipal leaderships development

programmes. Other SETAs active

in OR Tambo were the services

SETA and the CathsSETA (Culture,

Tourism, Hospitality and Sport).

CathsSETA has placed students

in Bidvest and Tourvest subsidiary

companies and sent eight unemployed

young people to Joburg

to attend a Level 5 General Travel

course. A Career Expo has been

held in conjunction with the KSD

FET College and the Masumpa

Heritage Hub.

Courses with direct relevance to

the Eastern Cape such as ‘hunting,

trapping and related services’ are

offered, as are more widely applicable

hospitality courses like Event

and Conference Management.

Campaigns such as the Shoprite

Special Project are able to target

particular groups in need of skills

development, in this case 1 000

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unemployed people.

The Wholesale and Retail SETA

(W&RSETA) regularly offers courses

to levy-paying organisations

in company business operations

and skills development, and has

completed several learnerships for

unemployed people.

Company training

With the automotive sector playing

such a pivotal role in the provincial

economy, it is no surprise that the

leading companies are actively involved

in training.

Volkswagen has a multi-faceted

approach to training, ranging

from support for the VWGSA

International Chair in Automotive

Engineering at the NMMU to a

‘Future Skills Project’, which aims to

develop skills in the automotive sector,

in partnership with the National

Department of Labour, MerSETA,

FET colleges and Volkswagen dealerships.

The Automotive Chair provides

support for the research projects

of engineering students, and

includes an exchange programme

with Germany.

A large part of Volkswagen’s

training efforts are focused on

its five learning academies in

Uitenhage. Open to employees

and to suppliers, the academies’

programmes are SETA-accredited.

Each academy offers a range of

courses that can be taken through

workshops, exercises, e-learning or

on-the-job-training.

Volkswagen Community Trust’s

annual budget for education is

spent on children in the early childhood

development stage, through

programmes such as: Edu-Peg,

Primary School Maths Programme, Maths and Science Programme with

NMMU, Innovative Youth Programme with the Eastcape Midlands College,

Rally to Read Computer labs at schools in the Nelson Mandela Metro,

Tyre manufacturer Goodyear has an engineering training facility in

Uitenhage, with a focus on the training of instrument technicians. The

Border-Kei region receives 45% of the corporate social investment budget

of the East London-based Mercedes-Benz South Africa (MBSA). The R3-

million facility is accredited by MerSETA and caters for millwrights and

electrical trades in the first phase of its development.

Several companies within the tourism sector play a role in training the

next generation of chefs and hotel managers. Premier Hotels does this

through its Academic College SA. Professional Cookery and Beverage

Management are among the diplomas on offer.

The resuscitation of the railway line between East London and Mthatha

(Transnet’s Kei Rail project) has resulted in a need for qualified rail personnel,

and the Centre for Rail Studies at Walter Sisulu University, offering

courses in track mastery, train management and train driving.

The Provincial Department of Transport is committed to a ‘skills revolution’

that supports 700 pupils in mathematics and science classes, along

with a further 83 with bursaries to pursue transport-related courses at

tertiary level. The provincial government is also giving bursaries for training

in Air Traffic Navigation Services.

Boeing Commercial Aviation has signed a pilot training agreement with

43 Air School. With the Eastern Cape offering “clear skies” and African air

travel on the increase, the school aims to qualify 300 pilots a year from its

three campuses at Port Alfred, Bhisho and Lanseria in Gauteng. The Air

School had been contracted to provide pilot training for the South Sudan

People’s Liberation Army.

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.

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Property and construction

The local government is placing a big emphasis on local development, from rural areas

through to developing dynamic new commercial spaces.

The Eastern Cape Planning Commission (ECPC) was appointed

in 2014 to facilitate, under the National Development Plan

(NDP), flagship initiatives, central to rural development and

land reform. To achieve this end, the Eastern Cape MEC for

Human Settlements, Ms Helen Sauls-August, announced that an

amount of R2.2-million would be spent on human settlement developments

through to the end of 2016. A large portion of the budget will

be spent on houses to be built in rural areas, in addition to upgrades

of Informal Settlements.

In 2015 the department successfully met their annual target of building 12

979 housing units. They are equally excited to be associated with programs

that define the post-apartheid geography in this country through reversing

spatial inequities and urban deficiencies. Exemplary is the high density

development node by Nu-Way Housing developments, a mammoth

project which aims to alleviate the Nelson Mandela Bay Metro housing

backlog by construction of 38 000 units in Coega Ridge just outside Port

Elizabeth by the beginning of 2018.

This will set the benchmark for the

biggest fully integrated, mixeduse

residential development in

South Africa.

Construction

Delivering new infrastructure is a

top priority for national and provincial

government. This has contributed

to a buoyant construction

sector in the Eastern Cape, employing

more people than any other

province in the last three years.

Efforts have been made to bolster

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expansion of the ports, as well as rail line upgrades that will mean that

jobs in the construction are likely to be of a more permanent nature.

There have also been major private sector initiatives include, such as

the Rebosis Property Fund (Billion Group) development of the 73 000m 2

Hemingways Mall in East London, a super-regional shopping centre

that cost more than R1.5-billion. However, the jewel in the Eastern

Cape construction crown is the R6-billion Baywest City development

in Port Elizabeth. A joint venture between Abacus Asset Management

and the Billion Group, the development hosts one of the province’s

three green-rated projects, with a commercial office block due to open

towards the end of 2016.

East London also saw recent activity in the commercial space in the

shape of the Gillwell Taxi Rank Park (a 22 260m 2, three-level shopping

centre) that opened its doors for trade in November 2015. Built at a

cost of R316-million, the Park was developed for the Dipula Income

Fund by Isinonelo Property Services and the Eris Property Group,

reports SAPropertyInsider. The concept behind the development

was to bring together retail and public transport in seamless synergy

under one magnificent, modern roof. “It creates a city centre shopping

environment that has never before been experienced by retailers and

shoppers in the East London CBD,” said Izal Petersen, CEO of Dipula,

who expects foot traffic through the centre to be in the region of

1.5-million customers per month.

Residential property

skills training in the construction

sector through programmes in

Civil Engineering, Architectural

Studies and Construction

Management offered by the

Nelson Mandela Metropolitan

University (NMMU) and supported

by the Construction Industry

Development Board (CIDB).

Economic Development,

Environmental Affairs and Tourism

(DEDEA) attributes the growth in

this sector in the Eastern Cape to

expansion in the industrial development

zones at Coega and

East London. Here, Transnet has

committed significant funding to

Pam Golding Properties CEO Andrew Golding reported than house prices

in the Eastern Cape increased by 33%, as reported in Destiny Man.

“We have seen coastal house price inflation slowing more recently.

At the beginning of 2014 we saw a brief period of buoyant house price

growth and activity, but now, apart from prime ocean-front properties –

which are a market of their own – the market is characterised by house

price inflation, which has slowed to 5.3% compared to 6.1% for non-coastal

properties,” said Golding. “The surge in black buyers in East London in

the Eastern Cape (which now comprise 57% of our sales since March this

year) and Summerstrand (Port Elizabeth’s sought-after beachside suburb)

where we have just opened a new office to meet the growing demand

for houses in an area which, in 2014, saw year-on-year sales rise by 33%.”

Destiny Man also reported an increase in demand for homes listed

above the R1.5-million mark. This increase in demand can be attributed

to the strong growth in the local automotive industry, in addition to a

number of mega-developments that the Nelson Mandela Bay metro

area has in the pipeline.

In 2015 the number of homes selling above R5-million in East

London doubled, with sales being registered in prestige areas such as

Nahoon, Nahoon Mouth, Abbotsford and Bunker Hill.

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Water

The Water and Sanitation department has had to resort

to extreme measures earlier this year in order to bolster

water supply in the drought-stricken Eastern Cape.

In order to combat the alarming water shortages, the measures brought

about by the Eastern Cape Department of Water and Sanitation (DWS)

include 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.

Addressing the media in March 2015 at Buffalo City’s metro (BCM) East

Bank water treatment site, the Water and Sanitation Minister , Nomvula

Mokonyane said “almost 2% of the communities are unserved with

water in BCM but there are interim interventions such as water tanks

doing water distributions”.

Amatola Water chief executive officer Lefadi Makibinyane said the

problem could be a result of infrastructure failures. Technical teams from

Amatola Water were sent to the troubled areas to investigate the cause

of the water crisis. An Operations and Maintenance agreement was

entered into between department of water and sanitation (DWS) and

Amatola, as the primary service provider. Amatola Water manages the

water supply’s bulk water infrastructure across 50 000 square kilometres,

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. 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.

The imposed water restrictions this year means Eastern Cape planners

need to be innovative in their search for new water sources. The

process of desalination is increasingly being used as a way to provide

fresh water for human use. The most widely used method follows the

process of reverse osmosis. Seawater is pumped into a plant where semipermeable

membranes and pressure are used to separate dissolved matter

and salts from the water. Veolia has been commissioned to renovate

the desalination plant at Bushman’s River Mouth, South Africa’s biggest

reverse-osmosis plant. However, given its drawbacks, the most widely

held belief is that desalination should be used in conjunction with other

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water-saving mechanisms such as waste-water reclamation.

This treated water is especially suitable for

industrial use. The Municipal Green Drop Certification

Programme was introduced in 2008 as an incentivebased

regulation of waste-water quality and wastewater

management systems in South Africa. The

Buffalo City local municipality and Nelson Mandela

Bay Metropolitan Municipality have both been recipients

of the green drop accolade.

In the government’s quest to address clean water

provision challenges in the province, is the building

of a dam using the Eastern Capes Umzimvuba River.

This proposal has taken centre stage and has been

detailed as part of the governments Infrastructure

Development Plan going forward. 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 Mzimvubu

River, to supply irrigated agriculture, domestic and

industrial water requirements, and hydropower

generation in the Mzimvubu River Catchment. In

his 2015 State of the Nation address, President Zuma

announced that the Umzimvubu Dam project was

progressing well and that it was expected to be

completed by January 2018. A project management

office based in Mthatha is being set up. This will help

to increase the project’s momentum.

With respect to the provision of water infrastructure

in the province, through the Regional

Bulk Infrastructure Grant, a total of R1-billion was

allocated for 2014/15 covering 14 projects under

construction. More than R3,4-billion is allocated

over the period between 2015/16 and 2017/18. As

a result, a number of bulk water supply schemes are

due for completion during this calendar year. These

include the Greater Mbizana Bulk Supply Project

at Mbizana, costing R1,1-billion, the Mncwasa Bulk

Water Supply costing more than R295-million, and

the Xhora Bulk Water Supply at Mbhashe costing

more than R660-million.

Strides towards improving socio-economic

status in the municipality, include 40 water and

sanitation multi-year contracts to the tune of R1,5-

billion have been awarded. The expenditure to

date is R650-million, prioritising 999 villages in and

around Mathatha, where previously no access to

water services had been available.

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OVERVIEW

Banking and financial services

The Eastern Cape’s strong agricultural sector is attracting attention from banks.

A

young Scotsman who came to Port Elizabeth to teach in

a government school left an astonishing legacy: not only

did John Paterson start Grey High School and the EP Herald

newspaper – both of which are still going strong – he also

established Standard Bank in 1862. Standard Bank now operates in 32

countries (20 in Africa), has nearly 69 000 employees and assets in the

region of $16-billion.

Standard Bank has a strong presence in the province where it was

formed, and together with the other banks, consulting companies and

other firms in the financial and business services sector, it is responsible

of 19.2% of provincial Gross Domestic Product (GDP, StatsSA). This

sector, which employs 141 000 people, was expected to grow at just

more than 3% in 2015/16.

Merchant banking and investment banking are the most competitive

sectors within banking, and several international banks have a

presence in South Africa. In the retail banking sector, Standard Bank is

one of South Africa’s Big Four, which also includes Absa, First National

Bank (FNB) and Nedbank. Despite really tough economic conditions

in recent months and years, this

group increased headline earnings

by 12.5% in the second six

months of 2015, to R33.8-billion.

Profits across the Big Four totalled

R73.8-billion in the year, according

to a survey done by PWC (Major

Bank’s Analysis).

Some of the figures published

reflect the strain that consumers

are feeling: credit impairments

went up by 10.8% and non-performing

loans also grew.

Competition is stiff in developing

new strategies to incorporate

the emerging second economy

and the largely rural “unbanked”

communities. These new banking

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OVERVIEW

means and methods are developing

the sector and giving it new

flexibility, diversity and range.

Among the leaders nationally,

and in the Eastern Cape, is

Capitec, a bank that only opened

its doors in 2001 and listed on the

JSE in 2002. Although the “Big

Four” is still a meaningful expression,

it is clear that Capitec is very

ambitious.

As of August 2015, Capitec had

691 branches, a rapid increase

over the benchmark figure of 500

that was achieved in January 2012.

With 98 branches in the Eastern

Cape, and in the context of other

banks closing down some rural

branches, this is a banking business

that is clearly on the move.

In 2015 the bank had 6.7-million

clients, up from 3.7-million just

three years earlier. Capitec has

11 000 employees.

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.

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.

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.

Another source of funding for rural projects is the Eastern Cape Rural

Development Agency (ECRDA). Loans are available economically viable

business projects. ECRDA funding is not available for infrastructure

or goods that the Comprehensive Agricultural Support Programme

(CASP) programme of the Department of Agriculture can finance

through grant funding. ECRDA is an accredited agent of the National

Department of Agriculture and has been identified as the principal

implementing agent in the Eastern Cape for the MAFISA loan scheme.

This is targeted at small communal farmers and those who want to

move on from being a subsistence farmer. Women, young people

and farm workers who want to start small farming operations are also

eligible for loans.

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INTERVIEW

Nedbank driving

local development

Siphamandla Ndhlovu, Regional Business Head: Business Banking (Eastern Cape), talks

about how Nedbank is playing its part in the growth of businesses in the province.

What major deals has Nedbank Eastern Cape

worked on recently?

In December 2015, Nedbank increased its lending

facility to Da Gama Textiles P/L in East London. This

was done in collaboration with the IDC, who provided

a guarantee as security against the facility awarded to

Da Gama. This joint initiative has enabled the company

to continue trading under tough market conditions

and, as a result, it has kept close to 620 people in their

jobs. Further lending to the Humansdorp Co-op was

paid out in January 2016 to assist the Co-op with its

expansion plans. The Co-op looks after about 1254

member farmers in the region of the Eastern Cape.

These farmers contribute to the employment levels

of the province and also ensure food sustainability for

the region and the country. The bulk of their trade is

in citrus, dairy and fresh produce for local and export

markets.

What is the short- to medium-term outlook for

the local economy?

Economists have mentioned that unemployment

rate was at 36% in the Eastern Cape (third quarter,

2015 – 25.5% nationally). As a result of the high unemployment

level, business activity has been generally

subdued. Industry sectors like construction, retail,

manufacturing and construction-related professional

services like architects, engineers and quantity

surveyors have been showing a lot of strain lately.

Furthermore, suppliers to government parastatals or

departments have been under pressure due to delayed

payments. The effect of the under-performing

mining sector is felt in the inland region of the Eastern

Cape as migrant labourers from the Eastern Cape who

are in the majority continue to lose jobs.

On the positive side, the motor manufacturers like

Mercedez-Benz in East London, VW, GM and Ford in

PE continue to invest billions in their plants, which

augers well for the majority of the population who are

employed in these companies. The province has been

identified by government as the energy hub and it

was mentioned at the State of the Province address

that one solar energy project and 16 wind energy

projects worth R33.7-billion have been awarded to

independent power producers in the Eastern Cape.

Furthermore, the Coega IDZ continues to expand and

attract investment which is really good news for the

province and its people, although the state of the

education system remains a concern. The tourism

sector may bring about hope to the province. There is

the Ironman competition every April, which normally

attracts thousands of visitors from across the globe

to the Bay. Also, some planned national rugby events

will have a positive impact. Agriculture remains an

opportunity, depending on the drought levels going

forward. R129-million has been allocated by the

Government to assist farmers in the Eastern Cape.

With the pending interest rate hikes, the subdued local

economic environment will continue in the shortto

medium-term due to reduced consumer spending.

Business growth may be difficult to achieve. And, for

the banking sector, we would need to stay close to

our clients to provide support where necessary.

What are the opportunities for SMMEs in the

next five years?

Alternative energy sources like solar and wind

provide an opportunity for small businesses in the

Eastern Cape and in particular, Port Elizabeth. The

Eastern Cape is abuzz with tourist attractions, including

the fact that the nation’s legend, Nelson

Mandela comes from this province. The rand weakening

against the dollar has worked in favour of the

international community from developed countries.

The Coega IDZ has earmarked space for an on-land

fish farm. Measures have been taken by government

to bolster Agric and Agro-processing. Infrastructural

support through road repairs and construction is

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Siphamandla Ndhlovu

planned. Sheep/livestock farming for developing

farmers remains an opportunity.

How does Nedbank personalise their services?

We offer a relationship-based model. Through a personalised

relationship with one point of contact at

the bank, who is supported by a multi-skilled team in

credit and sales support, we are agile enough to offer

bespoke services. We also pride ourselves in having

a good understanding of the local market in general,

which enables us to make informed and speedy decisions.

This is supported by the fact that our credit

teams are decentralised and, with our local mandate,

we manage to make over 60% of the credit decisions

within the region.

In what ways does Nedbank help

their customers to grow?

Our philosophy on why we are in business is that we

are here to take our clients’ businesses to the next

level, thereby ensuring they move closer to achieving

their dreams. There is always a bigger picture

about any client’s business in terms of aspirations.

Through the personalised relationship, we seek to

understand the client’s long-term goals and assist

them in achieving these goals. Listening is at the

core of our strategy and our relationship managers

are upskilled to be – and to be seen as – trusted

advisors for our clients. For struggling clients we do

offer account payment moratoriums from time to

time, depending on the client’s risk profile, in order

to help them through a rough patch.

What are your goals for the years ahead?

Our main focus in 2016 is in agriculture, an area in which

we have historically not been particularly active. We

now have three business managers, one based in Port

Elizabeth, another based in Humansdorp and the third

located in East London. All three are supported by an

agricultural specialist who supports them on client

visits, deal presentation and market analysis. We have

seen an exponential growth already in this area of our

business in the past two years since we have become

active in this space. The farmers enjoyed our presence

at the Komga Show in October last year, which is a

show we continue to sponsor. We will continue to

leverage off the relationships that we have formed

with the farmers so far.

In East London, we have moved to a new Nedbank

campus site; which has given us as Nedbankers total

control of our building. We have client functions

planned for our clients to come and learn more about

what we have to offer the market. Similar functions will

continue to take place in our Port Elizabeth offices. We

have some exciting new innovations out of our Card

Acquiring and Transactional Banking businesses that

we will be sharing at these functions.

For more information, visit www.nedbank.co.za

CONTACT INFO

Physical address: Ground Floor, Nedbank

Campus, 270 Cape Road, Newton Park, Port

Elizabeth 6057

Postal address: PO Box 27570, Greenacres 6055

Tel: +27 (0)41 393 5899

Fax: +27 (0)41 393 5802

Email: SiphamandlaN@nedbank.co.za

Website: www.nedbank.co.za

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Development finance

and SMME support

The promotion of SMMEs is a local, provincial and national priority,

and several agencies exist to support small businesses and

entrepreneurs who want to start a new venture.

The National Empowerment Fund (NEF) provides financial support

to ventures over a broad range of financial requirements

(from R250 000 up to R75-million) for start ups, the expansion

of existing business, as well as the acquisition of equity across

many sectors. In the Eastern Cape, the NEF is supporting companies

working in the fields of solar energy, restaurant franchises and

transport. An amount of R44-million has been allocated to Velevuthu

Agricultural Consultancy, a broad-based BEE initiative presently engaged

in contract-growing for chicken processing entities such as

Crown Chickens (Pty) Ltd, a subsidiary of Sovereign Foods Limited.

The Industrial Development

Corporation (IDC) is extremely

active in the Eastern Cape, and

several development agencies

receive support from the IDC:

• Nelson Mandela Bay

Development Agency: strategic

spatial implementation

framework.

Somerset East is home to a new ultra-light aircraft project, courtesy of the Blue Crane Aeronautical

Development Project, with backing from the IDC.

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• Blue Crane Development

Agency: Blue Crane

Aeronautical Development

Project – a new airport at

Somerset East and an ultralight

aircraft project.

• Nkonkobe Development

Agency: the revival of the Kat

River Citrus Project.

Other support initiatives in the

Eastern Cape include:

• Vektronix, East London television

manufacturer: R64-million

loan for expansion.

• Auspex Properties, Port

Elizabeth: R160-million loan for

black-owned 170-room hotel

operated by Radisson Blue.

• Bio-ethanol plant, Cradock: pre-implementation phase.

• Blueberry farm, Stutterheim: R45-million investment.

Mercedes-Benz South Africa (MBSA) had previously established

an initiative called the Siyakhana Project along with its partners the

Border-Kei Chamber of Business and the German Government’s Public-

Private Partnership fund. Recently, Siyakhana launched the Siyakhana

SME Project with the Eastern Cape MEC for Economic Development,

Environmental Affairs and Tourism to promote SMME health and sustainability

in the Eastern Cape.

The Eastern Cape Development Corporation (ECDC) provides SMMEs

access to business support services and has in the past dedicated as

much as R100-million in loans towards SMMEs operating in the Eastern

Cape. 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 (ITA) 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.

The Eastern Cape Rural Finance Corporation (ECRFC) has a dual

mandate: to financially support agricultural enterprises and to encourage

private sector investment in rural areas.

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 subsectors ranging from hardware and software to graphics and web

and systems analysis. Since 2015, the SNII incubated 10 new ICT and tech

start-ups which have show a 25% growth for its clients over the year.

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 Business Chamber is similarly supportive.

The Hope Factory is an initiative of the South African Institute of

Chartered Accountants (SAICA), which gives support to small business.

More than 250 companies contribute to the programme that has supported

more than 1 000 people over 11 years.

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LISTING

South African National Government

An overview of South Africa’s national government departments.

President

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Website: www.economic.gov.za

Deputy President

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Minister in the Presidency

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200 | Fax: +27 12 300 5795

Website: www.thepresidency.gov.za

Ministry in the Presidency responsible

for Women (Minister of Women in the

Presidency)

Address: East Wing, Union Buildings, Pretoria 0001

Postal address: Private Bag X931, Pretoria 0001

Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473

Website: www.women.gov.za

Minister for Public Service & Administration

Address: 123 Poyntons Building, West Block, cnr Schubart and Church

streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111

Website: www.dcs.gov.za

Dept of Agriculture, Forestry and Fisheries

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street

and Soutpansberg Road, Arcadia, Pretoria

Postal address: Private Bag X250, Pretoria

Tel: +27 12 319 7319 | Fax: +27 12 319 6681

Website: www.daff.gov.za

Department of Arts and Culture

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza

Bopape streets, Arcadia, Pretoria 0001

Postal address: Private Bag X899, Pretoria 0001

Tel: +27 12 441 3000

Fax: +27 12 440 4485

Website: www.dac.gov.za

Department of Basic Education

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001

Postal address: Private Bag X9034, 8000

Tel: +27 12 357 3000

Fax: +27 12 323 5989

Website: www.education.gov.za

Department of Communications

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival

Street), Hatfield, Pretoria 0001

Postal address: Private Bag X745, Pretoria 0001

Tel: +27 12 473 0000 | Fax: +27 12 462 1646

Website: www.doc.gov.za

Department of Cooperative Governance and

Traditional Affairs

Address: 87 Hamilton Street, Arcadia, Pretoria 0083

Postal address: Private Bag X802, Pretoria 0001

Tel: +27 12 334 0705 | Fax: +27 12 326 4478

Website: www.cogta.gov.za

Department of Correctional Services

Address: 123 Poyntons Building, West Block,

cnr Schubart and Church streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111

Website: www.dcs.gov.za

Department of Economic Development

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &

Esselen streets, Sunnyside, Pretoria 0001

Postal address: Private Bag X149, Pretoria 0001

Tel: +27 12 394 1006 | Fax: +27 12 394 0255

Website: www.economic.gov.za

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Department of Defence

and Military Veterans

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001

Postal address: Private Bag X427, Pretoria 0001

Tel: +27 12 355 6101 | F ax: +27 12 347 0118

Website: www.dod.mil.za

Department of Energy

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001

Postal address: Private Bag X96, Pretoria 0001

Tel: +27 12 406 8000

Fax: +27 12 319 6681

Website: www.energy.gov.za

Department of Environmental Affairs

Address: Environment House, 473 Steve Biko and Soutpansberg Road,

Arcadia, 0083

Postal address: Private Bag X447, Pretoria 0001

Tel: +27 12 310 3537 | Fax: +27 086 593 6526

Website: www.environment.gov.za

Department of Finance

Address: 40 WF Nkomo Street,

Old Reserve Bank Building, 2nd Floor, Pretoria

Postal address: Private Bag X115, Pretoria 0001

Tel: +27 12 323 8911 | Fax: +27 12 323 3262

Website: www.treasury.gov.za

Department of Health

Address: 20th Floor, Civitas Building, cnr Struben and Andries streets,

Pretoria 0001

Postal address: Private Bag X399, Pretoria 0001

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165

Website: www.doh.gov.za

Department of Higher Education

and Training

Address: 123 Francis Baard Street, Pretoria 0001

Postal address: Private Bag X893, Pretoria 0001

Tel: +27 12 312 5555 | Fax: +27 12 323 5618

Website: www.dhet.gov.za

Department of Home Affairs

Address: 909 Arcadia Street, Hatfield 0083

Postal address: Private Bag X114, Pretoria 0001

Tel: +27 12 432 6648 | Fax: +27 12 432 6675

Website: www.dha.gov.za

Department of Human Settlements

Address: Govan Mbeki House, 240 Justice Mahomed,

Sunnyside, Pretoria 0001

Postal address: Private Bag X644, Pretoria 0001

Tel: +27 12 421 1310

Fax: +27 12 341 8513

Website: www.dhs.gov.za

Department of International Relations and

Cooperation

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,

Pretoria 0001

Postal address: Private Bag X152, Pretoria 0001

Tel: +27 12 351 1000

Fax: +27 12 329 1000

Website: www.dirco.gov.za

Department of Justice and Correctional

Services

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard

Streets, Pretoria 0001

Postal address: Private Bag X276,

Pretoria 0001

Tel: +27 12 406 4669 | Fax: +27 12 406 4680

Website: www.doj.gov.za

Department of Labour

Address: 215 Laboria House, cnr Francis Baard and

Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X499, Pretoria 0001

Tel: +27 12 392 9620 | Fax: +27 12 320 1942

Website: www.labour.gov.za

Department of Mineral Resources

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007

Postal address: Private Bag X59, Pretoria 0001

Tel: +27 12 444 3000

Fax: +27 86 624 5509

Website: www.dmr.gov.za

Department of Police

Address: Wachthuis Building, 7th Floor, 231 Pretorius

Street, Pretoria 0001

Postal address: Private Bag X463, Pretoria 0001

Tel: +27 12 393 2800

Fax: +27 12 393 2812

Website: www.saps.gov.za

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Department of Public Enterprises

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001

Postal address: Private Bag X15, Hatfield 0028

Tel: +27 12 431 1000

Fax: +27 12 431 1039

Website: www.dpe.gov.za

Department of Public Service and

Administration

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria

Postal address: Private Bag X884, Pretoria 0001

Tel: +27 12 336 1700

Fax: +27 12 336 1809

Website: www.dpsa.gov.za

Department of Public Works

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street

Postal address: Private Bag X65, Pretoria 0001

Tel: +27 12 406 21978

Fax: +27 086 276 8757

Website: www.publicworks.gov.za

Department of Rural Development and

Land Reform

Address: 184 Old Building, cnr Jeff Masemola

and Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X833, Pretoria 0001

Tel: +27 12 312 9300

Fax: +27 12 323 3306

Website: www.ruraldevelopment.gov.za

Department of Science and Technology

Physical address: DST Building, Building No 53, CSIR South Gate

Entrance, Meiring Naude Road, Brummeria, Pretoria 0001

Postal address: Private Bag X727, Pretoria 0001

Tel: +27 12 843 6300

Fax: +27 12 349 1041/8

Website: www.dst.gov.za

Department of Small Business Development

Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street,

Sunnyside, Pretoria 0001

Postal address: Private Bag X84,

Pretoria 0001

Tel: +27 12 394 1006

Fax: +27 12 394 1006

Website: www.dsbd.gov.za

Department of Social Development

Physical address: HSRC Building, North Wing,

134 Pretorius Street, Pretoria 0001

Postal address: Private Bag X904, Pretoria 0001

Tel: +27 12 312 7479

Fax: +27 086 715 0829

Website: www.dsd.gov.za

Department of State Security

Physical address: Bogare Building, 2 Atterbury Road, Menlyn,

Pretoria 0001

Postal address: PO Box 1037, Menlyn 0077

Tel: +27 12 367 0700 | Fax: +27 12 367 0749

Website: www.ssa.gov.za

Department of Sport and Recreation South

Africa

Physical address: Regent Place, 66 cnr Madiba and

Florence Ribeiro Street, Pretoria 0001

Postal address: Private Bag X896, Pretoria 0001

Tel: +27 12 304 5000

Fax: +27 12 323 7196 / 086 644 9583

Website: www.srsa.gov.za

Department of Tourism

Physical address: 17 Trevena Street, Tourism House,

Sunnyside, Pretoria 0001

Postal address: Private Bag X424, Pretoria 0001

Tel: +27 12 444 6780

Fax: +27 12 444 7027

Website: www.tourism.gov.za

Department of Trade and Industry

Physical address: The dti,

77 Meintjie Street, Block A, Floor 3,

Sunnyside, Pretoria 0001

Postal address: Private Bag X274,

Pretoria 0001

Tel: +27 12 394 1568 | Fax: +27 12 394 0337

Website: www.thedti.gov.za

Department of Transport

Physical address: Forum Building, 159 Struben Street,

Room 4111, Pretoria 0001

Postal address: Private Bag X193, Pretoria 0001

Tel: +27 12 309 3131 | Fax: +27 12 328 3194

Website: www.transport.gov.za

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Telecommunications and Postal Services

Physical address: Iparioli Office Park, 399 Jan Shoba Street,

Hatfield, Pretoria 0001

Postal address: Private Bag X860, Pretoria 0001

Tel: +27 12 427 8000 Fax: +27 12 427 8016

Website: www.dtps.gov.za

Department of Water and Sanitation

Physical address: Sedibang Building, 185 Frances Baard Street,

Pretoria 0001

Postal address: Private Bag X313, Pretoria 0001

Tel: +27 12 336 8733 Fax: +27 12 336 8850

Website: www.dwa.gov.za

National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which

are described as the circle of foundation and the circle of ascendance.

Circle of foundation

Shield – The two Khoisan figures on the shield are taken from a

Bushman rock painting known as the Linton stone, and represent the

common humanity and heritage of South Africans. Depicted in an attitude

of greeting, the figures symbolise unity. Spear and knobkierie

– Together, these objects symbolise defence and authority, but the flat

angle at which they lie symbolises peace.

Wheat – The ears of wheat, as emblems of fertility, represent germination,

growth and the development of potential, as well as nourishment

and agriculture. Elephant tusks – Elephants symbolise wisdom,

strength, power, authority, moderation and eternity, and the use

of tusks is a tribute to the world’s largest land mammal, Loxodonta

Africana, which is found in South Africa. Motto – Taken from the language

of the now extinct /Xam Bushmen, the motto translated means

‘people who are different come together’ or ‘diverse people unite’.

Circle of ascendance

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the

secretary bird represents growth and speed, and is a symbol of divine majesty and protection.

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for

a country characterised by sunshine and warmth.

109

EASTERN CAPE BUSINESS 2016


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

Address: State House, Independent Avenue,

Bhisho 5605

Tel: +27 40 609 6626 | Fax: +27 40 639 1419

www.ecprov.gov.za

Economic Development environmental

affairs and tourism

MEC: Sakhumzi Somyo

Address: 2nd Floor , Beacon hill, Hockley Close,

King Williams Town 5600

Tel: +27 43 605 7006/7216 | Fax: +27 43 605 7306

www.dedea.gov.za

Education

MEC: Mandla Makupula

Address: Steve Tshwete Education Building,

Zwelitsha Zone 6, Zwelitsha

Tel: +27 40 608 4202 | Fax: +27 40 608 4247

www.ecdoe.gov.za

Provincial Treasury

MEC: Sakhumzi Somyo

Address: Provincial Treasury , Tyamzashe Building,

Bhisho 5605

Postal Address: Private Bag X0029, Bhisho 5605

Tel: +27 40 609 5755/5014 | Fax: +27 40 639 1030

www.ectreasury.gov.za

Health

MEC: Pumza Dyntyi

Address: Dukumbane Building, Independence

Avenue, Bhisho 5605

Postal Address: Private Bag X0038,

Bhisho 5606

Tel: +27 40 608 1114 | Fax: +27 40 608 1118

www.echealth.gov.za

Human Settlement

MEC: Helen Sauls-August

Address: 31-33 Phillip Frame Road, Waverly Park,

Chiselhurst, East London

Tel: +27 43 711 9777 | Fax: +27 43 711 9785

www.ecdhs.gov.za

Cooperative governance

and traditional affairs

MEC: HON F Xasa

Address: Tyamzashe Building, Room 2124,

2nd Floor, Bhisho 5605

Tel: +27 40 609 5788/5789 | Fax: +27 40 639 2135

www.ecprov.gov.za

Roads and Public Works

MEC: Thandiswa Lynette Marawu

Address: 5 Qasana Building, Independence Avenue,

Bhisho 5605

Tel: +27 40 609 4648 | Fax: 086 298 5598 (sa)

www.ecdpw.gov.za

EASTERN CAPE BUSINESS 2016

110


LISTING

Rural Development and agrarian Reform

MEC: Mlibo Qoboshiyane

Address: Dukumbane Building , Independence

Avenue, Bhisho 5606

Tel: +27 40 609 3472 | Fax: +27 40 636 3462

www.drdar.gov.za

Social Development

MEC: Mrs Nancy Sihlawayi

Address: cnr Hockley & Hargreaves Streets, Beacon

Hill, King Williams Town 5600

Tel: +27 43 605 5210 | Fax: 43 605 5472

www.ecdsd.gov.za

Transport, Safety and Liaison

MEC: Weziwe Tikana

Address: Stellenbosch Park, Flemming St,

Schornville King Williams Town 5601

Tel: +27 43 604 7414 | Fax: 086 298 5598

www.ectransport.gov.za

Sports, Recreation and Arts and Culture

MEC: DR Pemmy Majodina

Address: Wilton Zimasile Mkwayi Building. 5 Eales

Street, King Williams Town 5600

Tel: +27 43 604 4101 | Fax: +27 43 642 6759

www.ecsrac.gov.za

Eastern Cape Local Government

Alfred Nzo District Municipality

Address: Erf 1400, Ntsizwa Street, Mount Ayliff

Tel: +27 39 254 5000 | Fax: +27 39 254 0343

Email: info@andm.gov.za

Web: www.andm.gov.za

Matatiele Local Municipality

Tel: +27 39 737 8100 | Fax: +27 39 737 3611

Web: www.matatiele.gov.za

Uzimvubu Local Municipality

Tel: +27 39 255 8500 | Fax: +27 39 255 0167

Web: www.umzimvubu.gov.za

Amathole District Municipality

Address: 40 Cambridge Street, East London

Tel: +27 43 701 4000

Fax: +27 43 742 0337

Email: info@amathole.gov.za

Web: www.amathole.gov.za

Amahlathi Local Municipality

Tel: +27 43 683 5000

Fax:+27 43 683 2970

Web: www.amahlathi.gov.za

Great Kei Local Municipality

Tel: +27 43 831 1028 | Fax: +27 43 831 1483

Web: www.greatkeilm.gov.za

Mbashe Local Municipality

Tel: +27 47 489 5800

ax: +27 47 489 5800

Web: www.mbhashemun.gov.za

Mnquma Local Municipality

Tel: +7 47 401 2400

Fax: +27 47 491 0195

Web: www.mnquma.gov.za

Ngqushwa Local Municipality

Tel: +27 40 673 3095

Fax: +27 40 673 3771

Web: www.ngqushwamun.gov.za

111

EASTERN CAPE BUSINESS 2016


Nkonkobe Local Municipality

Tel: +27 46 645 7400 | Fax: +27 46 645 2562

Web: www.nkonkobe.gov.za

Nxuba Local Municipality

Tel: +27 46 684 0034 | Fax: +27 46 684 1931

Web: www.nxuba.org.za

Buffalo City Metropolitan Municipality

Address: 117 Oxford Street, Cnr North & Oxford

Streets, Trust Centre, East London

Tel:+27 43 705 2000 | Fax:+27 43 743 1688

Email: lungig@buffalocity.gov.za

Web: www.buffalocity.gov.za

Chris Hani District Municipality

Address: 15 Bells Road, Queenstown

Tel: +27 45 808 4600 | Fax: +27 45 838 1556

Web: www.chrishanidm.gov.za

Engcobo Local Municipality

Tel: +27 47 548 5600 | Fax: +27 47 548 1078

Web: www.engcobolm.gov.za

Inkwanca Local Municipality

Tel: +27 45 967 0021 | Fax: +27 45 967 0467

Web: www.inkwanca.gov.za

Intsika Local Municipality

Tel: +27 47 874 8700 | Fax: +27 47 874 0010/0237

Web: www.intsikayethu.gov.za

Inxuba Yethemba Local Municipality

Tel: +27 48 801 5000 | Fax: +27 48 881 1421

Web: www.iym.co.za

Sakhisizwe Local Municipality

Tel:+27 47 877 5200 | Fax: +27 47 877 0000

Web: www.sakhisizwe.gov.za

Tsolwana Local Municipality

Tel: +27 45 846 0033 | Fax: +27 45 846 0025

Web: tsolwana.co.za

Joe Gqabi District Municipality

Address: Cnr Cole & Graham Streets, Barkly East

Tel: +27 45 979 3000 | Fax: +27 45 971 0251

Web: www.jgdm.gov.za

Elundini Local Municipality

Tel: +27 45 932 8100 | Fax: +27 45 932 1094

Web: www.elundini.org.za

Gariep Local Municipality

Tel: +27 51 653 1777 | Fax: +27 51 653 0056

Web: www.gariep.gov.za

Maletswai Local Municipality

Tel: +27 51 633 2441 | Fax: +27 51 634 1307

Web: www.maletswai.gov.za

Senqu Local Municipality

Tel: +27 51 603 1300 | Fax: +27 51 603 0445

Web: www.senqumunicipality.co.za

Nelson Mandela Bay Metropolitan

Municipality

Address: City Hall, Vuyisile Mini Square,

Govan Mbeki Avenue, Nelson Mandela Bay

Tel: +27 41 506 3208/9 | Fax: +27 41 506 2422

Web: www.nelsonmandelabay.gov.za

OR Tambo District Municipality

Physical: OR Tambo House, Nelson Mandela Drive,

Myezo Park, Mthata

Tel:+27 47 501 6400 | Fax: +27 47 532 6518

Web: www.ortambodm.gov.za

Ingquza Hill Local Municipality

Tel: +27 39 252 0131 | Fax: +27 39 252 0699

Web: www.ihlm.gov.za

King Sabata Dalindyebo Local Municipality

Tel: +27 47 501 4000

Fax: +27 47 531 3128

Web: www.ksd.gov.za

EASTERN CAPE BUSINESS 2016 112


Mbizana Local Municipality

Tel: +27 39 251 0230 | Fax: +27 39 251 0917

Web: www.mbizana.gov.za

Mhlontlo Local Municipality

Tel: +27 47 553 7000 | Fax: +27 47 553 0189

Web: www.mhlontlolm.gov.za

Ntabankulu Local Municipality

Tel: +27 39 258 0056 | Fax: +27 39 258 0173

Web: www.ntabankulu.gov.za

Nyandeni Local Municipality

Tel: +27 47 555 5000 | Fax: +27 47 555 0202

Web: www.nyandenilm.gov.za

Port St Johns Local Municipality

Tel: +27 47 564 1207 | Fax: +27 47 564 1206

Web: www.psjmunicipality.gov.za

Sarah Baartman District Municipality

Address: 32 Govan Mbeki Avenue, Port Elizabeth

Tel: +27 41 508 7111 | Fax: +27 41 508 7000

Email: cpaul@cacadu.co.za

Web: www.cacadu.co.za

Baviaans Local Municipality

Tel: +27 44 923 1004

Fax: +27 44 923 1122

Web: www.baviaans.gov.za

Blue Crane Route Local Municipality

Tel: +27 42 243 1333 | Fax: +27 42 243 0633

Web: www.bcrm.gov.za

Camdeboo Local Municipality

Tel: +27 49 807 5700 | Fax: +27 49 892 4319

Web: www.camdeboo.gov.za

Ikwezi Local Municipality

Tel: +27 49 836 0021

Fax: +27 49 836 0105

Web: www.ikwezimunicipality.co.za

Kouga Local Municipality

Tel: +27 42 200 2200

Fax: +27 42 200 8606

Web: www.kouga.gov.za

Kou-kamma Local Municipality

Tel: +27 42 288 7200 | Fax: +27 42 288 0797

Web: www.koukammamun.co.za

Makana Local Municipality

Tel: +27 46 603 6131 | Fax: +27 46 622 9700

Web: www.makana.gov.za

Ndlambe Local Municipality

Tel: +27 46 624 1140 | Fax: +27 46 624 2669

Web: www.ndlambe.gov.za

Sunday River Valley Local Municipality

Tel: +27 42 230 7700/0077

Fax: +27 42 230 1799

Web: www.srvm.gov.za

EASTERN CAPE PROVINCE

Free State

LESOTHO

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

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

Uniondale

R72

Joubertina

N9

Uitenhage

Port Alfred

Knysna N2

Humansdorp

Kareedouw

PORT ELIZABETH

Plettenberg Bay

Jeffreys Bay

Municipalities in the Eastern Cape

Northern Cape

Western

Cape

ECDMA10

Baviaans

Koukamma

Camdeboo

Ikwezi

Kouga

Cacadu

ECDMA10

Free State

LESOTHO

KwaZulu-

Natal

KwaZulu-

Natal

Umzimvubu

Senqu

Maletswai

Elundini

Ntabankulu

Gariep

Joe Gqabi

Mbizana

OR Tambo

Mhlontlo

Qaukeni

Sakhisizwe

Inkwanca

Emalahleni

Nyandeni Port

Engcobo

St Johns

Tsolwana

King Sabata

Chris Hani

Dalindyebo

Intsika Yethu

Inxuba Yethemba

Lukhanji

Mbhashe

Blue Crane Route

Sundays River

Valley

Nelson Mandela Bay

Mnquma

Amahlathi

Nxuba

Amathole

Great Kei

Nkonkobe

Buffalo

City

Makana Ngqushwa

Ndlambe

Alfred Nzo

Matatiele

INDIAN OCEAN

Metropolitan/District Municipality

Boundary

Local Municipality Boundary

District Municipality

Local Municipality

Cacadu

Nxuba

113

EASTERN CAPE BUSINESS 2016


FOCUS

Sarah Baartman

District Municipality

The Sarah Baartman District is situated in the western portion of the Eastern Cape and

wholly surrounds Nelson Mandela Bay. At 58 243 km², it is also the largest of the

six districts in the Eastern Cape province.

The Eastern Cape Province is incredibly rich in culture

and home to four tribal kingdoms, including

Xhosa, Pondo, Sotho and the KhoiSan – said to be

among the first inhabitants of the Province. Known

as the “Adventure Province”, the Eastern Cape has the

only Big Seven reserve in the world, namely Addo

Elephant National Park, and a World Heritage Site,

namely the Baviaanskloof, within its boundaries.

The lifestyle is relaxed, balanced and family-orientated,

while the tourism industry is thriving. The area is

characterised by immense contrasts in scenery, vegetation,

wildlife, history and culture. Residents have access

to world-class medical, sports and education facilities like

the Rhodes, Walter Sisulu, Nelson Mandela Metropolitan

and Fort Hare Universities. The Eastern Cape offers one

of the best combinations of lifestyle and opportunity.

Whatever your line of business, the Province boasts a

healthy economic variety of manufacturing, industry

and agro-industry supported by infrastructure and

development initiatives, while motoring giants like

Volkswagen South Africa, Ford and General Motors

are also based here. It is also the only Province that

is home to two Industrial Development Zones (IDZs)

and a deep water port.

The Sarah Baartman District Municipality focuses

on creating projects to grow skills, employment and

initiate sustainable economic development as well as

elevating the quality of life in the District. Some of the

rare skills, such as shearing Angora goats for mohair,

are available in the District and where a skills shortage

is being experienced, initiatives are being undertaken

to combat the skills shortage and in turn create jobs

for local people.

POTENTIAL AREAS FOR INVESTMENT

Several potential areas of investment have been identified

within the Sarah Baartman District. They include:

FISHERIES & AQUACULTURE

Aquaculture comprises diverse systems of farming

plants and animals in inland, coastal and marine

areas, using and producing a wide variety of animal

and plant species. It can be a very productive use of

resources due to the amount of food produced per

hectare when compared to arable farming or livestock

rearing. Aqua feed resource production is also one

of the fastest growing agricultural industries in the

world, with growth rates of more than 30% per year.

The industry in South Africa and the Eastern Cape

is still in its infancy, with only four aquaculture facilities

currently operating in the District. These are located

in Camdeboo, Ndlambe, Makana and Kouga local

Covering 34% of the entire

Eastern Cape Province’s

geographical footprint, the

District stretches from the

Karoo areas in the north to

the coastal belt of the Indian

Ocean in the south, and

includes inland areas, which

lie between the Bloukrans

River in the west and Great

Fish River in the east.

EASTERN CAPE BUSINESS 2016

114


FOCUS

municipalities. The largest of these projects is located

in Graaff-Reinet and is called the Camdeboo Satellite

Aquaculture Project (CSAP). It aims to establish a mega

aquaculture cluster, comprised of a core farm of six

hectares, 39 outgrower farms and three hatcheries. As

a result of this project, the freshwater fish industry in

the Graaff-Reinet area will be preserved, whilst it also

creates sustainable self-employment opportunities for

rural women. At maximum capacity, this project will

produce about 13 728 tons of farmed fish (primarily

catfish) a year, creating 670 direct jobs and 3281 indirect

jobs. Once perfected and successfully implemented

in Graaff-Reinet, CSAP may be replicated in other rural

and remote areas of the country, creating enormous

social and economic benefits for thousands of South

Africans, as well as a source of affordable protein and

nutrients for millions of people.

The other aquaculture and fisheries projects in

the Sarah Baartman District are much smaller, one of

which involves the production of oysters off the coast

of Port Alfred (Ndlambe). Challenges experienced by

fish farmers in the District generally relate to funding,

training and equipment. Investment opportunities

exist within both the production and processing areas

of the aquaculture industry.

CITRUS

The citrus industry within the Sarah Baartman District

Municipality is largely focused in the Sundays River Valley

Local Municipality. The town of Kirkwood is considered

as the primary producer in the District and the Province,

contributing about 12% of national production. It is

home to 12 000 hectares of citrus orchards. Varieties

produced in this area include clementines, navels, lemons,

valencias and grapefruits.

The Sundays River Citrus Company is responsible for a

large chunk of the area’s production capacity, producing

2 million pockets of citrus for the export market. They

are the largest producer of citrus in southern Africa,

while the Eastern Cape, consistently since 2004, is the

most significant contributor to citrus production in the

country. There are also citrus farms located in the Kouga

Local Municipality, with substantial production taking

place in the Gamtoos River and Patensie.

Several citrus nurseries operate within the District

(Sundays River Valley and Kouga), from which initial

plants for future cultivars can be procured. Most cultivars

start to bear fruit in their third year, although the

climates can affect this.

On a national level, about 11.2% of citrus produced

is sold to local markets, 70.1% is exported and 28% is

sent for further processing. Currently, there is a lack of

large-scale processing facilities available for citrus fruit

in the Sarah Baartman District.

CONTACT INFO

Physical: 32 Govan Mbeki Avenue

(Standard Bank Building), Port Elizabeth

Postal: PO Box 318, Port Elizabeth 6000

Tel: +27 41 508 7111

Fax: +27 41 508 7000

Website: www.sarahbaartman.co.za

115 EASTERN CAPE BUSINESS 2016


FOCUS

HONEYBUSH

Honeybush, found exclusively in South Africa, is a component

of the horticultural industry of the Sarah Baartman

District Municipality. It is an indigenous fynbos-type

plant that is used to produce a type of herbal tea. The

processing of the plant is divided into 3 parts, namely

cutting the tea into fine particles, fermenting the cuttings

with pure spring water and drying, sifting and sorting

the residue into course fine and super-fine grades of

tea. This process is essential for the development of its

characteristic sweet scent, taste and reddish brown

colour of the tea.

The plant takes two years to grow and is harvested

in its third year. There are several honeybush processing

facilities located within the District, three of which are

found in Kou-kamma Local Municipality, while another

is located in Kouga Local Municipality. It is grown in

the Langkloof, in the Kou-kamma Local Municipality,

while potential for development exists in the Makana

Local Municipality.

Of the national production, 90% is exported. Markets

include Germany and the United States of America. The

industry is relatively young and the full scope of it has

not yet been determined, apart from its contribution

to the tea industry. The South African market for honeybush

is largely untapped, with international demand

outweighing national supply capacity.

LIVESTOCK

Livestock farming within the Sarah Baartman District

is largely attributed to the farming of cattle, sheep and

goats. The mixed veld types of the Eastern Cape present

a competitive advantage for livestock activities

With respect to goats raised for slaughter, the most

common are the Boer, Savanna and Kalahari Red goats.

Nationally, goats are primarily raised within the Eastern

Cape, while the District possesses about 70% of the

value of the industry in the Province. Flocks of goats

intended for meat production are usually smaller than

sheep flocks, averaging approximately 300 head per farm.

There are numerous abattoirs spread across the

District. Kouga Local Municipality’s climate is ideally

suited for raising goats and sheep and is home to 10

facilities which process this type of meat, while the

Camdeboo Local Municipality has a further seven such

facilities, and another six similar facilities are located in

the District. The majority of these abattoirs also slaughter

beef cattle. Nationally, there are shortages with respect

to cattle production, with demand for more than 300

000 head of cattle extra per annum. Beef cattle are less

intensive to raise than dairy, notwithstanding goats,

which can be raised on the same land. The highest

concentration of cattle per square kilometre is found in

the Kou-kamma Local Municipality. A potential shortage

in the supply of lamb is predicted in the near future,

posing a possible investment opportunity, while the

skill level of shearers in the District could be improved.

POULTRY

The poultry industry in the Sarah Baartman District

includes broilers, egg-layers and ostrich production.

The coastal regions are more suitable for broiler and

egg production, whereas the dryer, inland regions are

more suitable for ostriches.

Poultry related cooperatives within the District are

scarcely distributed, with only 12 cooperatives identified

in 2013. Of these, six are located in the Ndlambe, three

in Makana, two in Kouga and one in Kou-kamma local

municipalities. There are seventeen poultry abattoirs in

the District, of which five are located in the Kou-kamma,

four in Camdeboo, three in Kouga, two in Makana, one

in Blue Crane Route, Ikwezi and Sundays River Valley

local municipalities.

There are opportunities that exist in the District for

free range chicken production, while the area is well

suited for ostrich production. This industry produces

leather, feather-related products and the ostrich meat.

In South Africa, white meat is generally considered

as the healthier and cheaper alternative to red meat.

In 2012, the South African Poultry Association found

that more chicken and eggs are consumed per capita

than any other animal protein.

PINEAPPLES

The Sarah Baartman District is the largest producer of

pineapples in the Province, contributing about 90% of

EASTERN CAPE BUSINESS 2016

116


FOCUS

Currently, the focus within the industry should be

on skills development in management, husbandry and

mohair production, while investment in research and

development could pay off due to new technologies

being introduced to increase the yield and the quality

of the fibres that are produced.

the provincial output. The industry is located almost

exclusively in the Ndlambe Local Municipality, positively

impacting on the social and economic growth of the

area. The plant takes approximately one to one-and-ahalf

years to flower. Usually, the first crop is harvested

after eighteen to twenty-four months. Currently, all

pineapples produced in the District are processed at

a special facility located in East London.

The pineapple plant is well suited to the conditions

found in the District and is able to grow in environments

where irrigated plants struggle. A range of products

can be produced from pineapples, including juice concentrate,

dietary fibre and textile fibre. Enzymes that

have medical properties can also be extracted from

pineapple waste products, while the plant waste can

be used to produce biogas.

MOHAIR

The Eastern Cape Province is the largest producer of

mohair in South Africa, contributing approximately

three quarters of the nation’s current production. The

Sarah Baartman District is the Province’s largest producer

of mohair, with approximately 52% of South

Africa’s market share. More than 90% of the country’s

total mohair clip is exported in the grease or semiprocessed

form – both washed and combed. Turkey,

Argentina and Lesotho pose strong competition to

South Africa’s mohair production.

Angora goats produce a fibre that combines the

warmth of wool but has the durability to be coloured,

similar to synthetic material. Colouring of the fibre results

in a high reflectance value and clarity of colour. Kid

mohair, due to its exceptional quality, continues to be

in high demand worldwide and used in the manufacturing

of fashion garments.

The areas in the District most suited to the rearing

of Angora goats and the production of mohair include

the Camdeboo, Blue Crane Route, Ikwezi, Makana and

Baviaans local municipalities.

RENEWABLE ENERGY

Renewable energy harnesses naturally occurring nondepletable

sources of energy, including solar, wind, biomass,

hydro, tidal, wave, ocean current and geothermal,

to produce electricity, gaseous and liquid fuels, heat or

a combination of these types of energy. The renewable

energy industry is therefore comprised of those

enterprises that seek to commercialise these natural

processes to generate electricity for consumers.

Approximately 90% of South Africa’s electricity is

still being generated from the burning of coal, but the

Sarah Baartman DM has significant potential to produce

energy using naturally occurring sources, such as wind.

The most significant gap in the market for the District,

over the short to medium term, will be in the provision

of ancillary services (e.g. legal services, EIAs, engineering

services, construction, security services, fencing, maintenance,

cleaning, logistics etc.). With each renewable

energy development coming online, the demand will

increase for the manufacturing of components and

the provision of operational and maintenance services.

The Camdeboo, Blue Crane Route, Makana, Sundays

River Valley, Kouga and Kou-kamma local municipalities

are suited for the generation of wind power, while

solar energy generation would be more suitable in the

Ikwezi, Blue Crane Route, Camdeboo, Makana, Sundays

River and Kou-kamma local municipalities.

The Blue Crane Route Local Municipality is also home

to the District’s only hydro-electric initiative, developed

along the Fish River. The Ndlambe , Sundays River and

Kouga local municipalities are suitable for biogas production,

as by-products of their agricultural activities.

The Kouga Local Municipality also offers potential for

hydro electricity generation.

INVEST IN THE REGION

To discuss potential investment opportunities within

the Sarah Baartman District, contact Pumelelo Kate, the

Director of Economic Development (Tel: +27 41 508

7343, Fax: 086 579 6623, Email: pmkate@sbdm.co.za) .

117 EASTERN CAPE BUSINESS 2016


1

Legend and Keyplan

Tarred

Untarred

Under

Construction

1

21

15

R110

Legend

Freeway / National Road

Main Road

Secondary Road

Route Numbers

Toll Route and Toll Plaza

Mountain Pass

Distance in Kilometres

Railway with Station

International Boundaries

Provincial Boundaries

Water features

Pan

Marsh

Caltex

Capital or City

Major Town

Secondary Town

Other Town

Settlement

Accommodation

Historical Site

Border Control

Major Spot Height

Place of Interest

Waterfall

Battlefield

Major Airport

Airfield

National Park /

Nature Reserve

10

Page Keyplan

BLOEMFONTEIN

MASERU

PIETERMARITZBURG

12

12

Beaufort

West

7

Knysna

9

De Aar

3 4

1

2

Colesberg

Middelburg

Graaff-Reinet

10

GRAHAMSTOWN

8

6

Aliwal North

5

Queenstown

Eastern Cape

Port

Alfred

PORT ELIZABETH

9

Kokstad

6

MTHATHA

EAST LONDON

2

Copyright © MapStudio/MP/2016


Erith

St

0 100 200 400 600 800 m

MOUNT RD

Owen St

Dyason St

Scanlen

St

Carlisle St

tstoun

Mandy St

Greathead

St

Erith St

Hazelhurst

Bay View Ave

Provincial

Hospital

ROSEBERR Y

Scanlen St

Westbourne St

Hallack Rd

Linnet

St

Bri

Sephton Pl.

Northwood Rd

King Georges Rd

Dr.

Upper

L Excelsor

A VE

Cr.

Brister Pl.

ste r

Turvey St

Athlone Rd

Upper St

Mount Road /

Erica

Mount Croix Girls P

Eastbourne Rd

Nazareth

House

Dickens St

Lilitha

Nursing Col.

Cambridge

Rd

Whitehead Ave

Thornhill

St

Kent Rd

Knowles St

H azelhurst Dr.

Jersey

Ave

Victorian Houses

R102

Park La.

Park D

r.

Middle St

Health

Clinic

North End

Grey P

Kirkwood St

Wainwright

St

Wilkinson

St

Stortford

Ave

Clevedon Rd

Dickens

7

St

Du Toit St

Kelly St

Newington Rd

CAPE RD

Park Dr.

Prince Alfred's

Guard War

Memorial

Green St

Middle St

Rockamay St

Burgess St

Zareba

St

ALBANY RD

Bingley St

GOVAN MBEKI AVE

Stone St

Perkins St

Essexvale

Elizabeth St

Alder St

Doncaster Rd

Middle Ave

Devon

St

Richm on d

Cooper St

St Georges Park

Myrtle Ave

Cir.

Holden St

Barrack St

Glen St

Weir St

Westbourne Oval

Hirsch

Ave

Rogally

St

Park Drive

Hospital

Centrahil

Great War

Memorial

Nelson Mandela

Metropolitan

Art Museum

Reed St

Callington St

Phillip St

P.E College

Adcock

St

Diesel

St

Irvine St

RINK ST

Herold

St

Solomons

Row

Sherlock St

St Patricks Rd

Stanley St

Moffat St

St Stephens St

Robson St

Park Dr.

Slater St

South St

Attree St

Raleigh St

Bain St

Lespade

St

Mackay St

Parliament St

Rose St

Landsdowne Pl.

Suffolk

St

Korsten St

Cross St

Frederick

St

Edward St

Clyde St

Havelock St

Pearson St

Western Rd

Cuyler St

Tulla St

Port Elizabeth 2

Bay

PORT ELIZABETH

Albany Rd Interchange

Albany Rd M7

Richmond Hill St

Deare St

Manchester

St

Teachers

Centre

Lutman St

Kemsley St

Elliot

St

Da gbreek Cr.

Municipality St

Lawrence St

4

James

St

Palmerston

St

H unt St

Campbell St

Dollery S t

RUSSELL RD

Leather La.

Havelock Sq.

Holy Trinity

Anglican Church

Museum St

R102

Smith

St

Hartma n

Clarendon Cr.

Rd

Evatt St

Trinder

Sq.

Palmerston

St

Ivy St

Whitlock St Surbiton

Trinity S

Central

Gordon Ter.

Alfred Ter.

Victoria

Quay

St

Hill St

Victoria St

Havelock St

St

Bird St

Annerley Ter.

Palm St

Donkin St

Constitution St

Belmont Ter.

RUSSELL ROAD

INTERCHANGE

BAAKENS ST

Chapel

La.

Chapel St

Athenaeum

Building

Fort St

Thompson

St

Mill St

DONKIN

RESERVE

Twickenham

St

Morgan

St

Peel St

Donkin

Hill

Whites Rd

Augustine P

Cuyler StCuyler Cr.

Rodney St

Kemp St

Britannia

St

Fort Frederick

Opera House

Prospect Hill

Castle Hill

Militar y Rd

Strand St

Grace St

Union La.

Anchor La.

Jetty St

Feather

Market

Hall

Horton St

North

Union St

Campanile

Fleming

St

VALLEY RD

Port Elizabeth

Court St

WALMER BLVD

South Union St

St Georges

Copyright © MapStudio/MP/2015 Hospital

Park Dr.

Rob Belling

Art Gallery

BRICKMAKERS KLOOF

Gardiner Cir.

Hallack

Pl.

Hallack St

How Ave

Newton

Ave

Hunter

Ave

Forbes Ave

Greenwood P

Jutland Cr.

Harris

St

Cudmore

St

Bridge

St

Ellis

St

Upper Valley Rd

Pier St

9

0 100 200 400 600 800 m

Scott Rd

NORTH WEST EXPRESSWAY

bert a St

lumbago St

ndyridge Rd

caranda St

Dorklin g Cr.

Livings

St

Magnolia

Genadendal Rd

72

Rd

Moffat Rd

Green point Rd

Lennox Rd

St John's

Road P

Kayalethu

Spec.

Parkside

Port

Rex

Buffalo

Cruising Club

berley Rd

Factory Rd

Milner Rd

St Johns Rd

Jacob Nanni

Pl.

Beaconsfield Rd

Dr. Zahn Rd

Latimer's

Landing

De Beers Rd

Oriental

Plaza

St Pauls Rd

Buffalo Bridge

East London

Private Hospital

QUEENS PARK

Zoo

ST JOHNS RD

Chapel St

North

End

Park St

SETTLERS WAY

Pontoon Rd

Princess Elizabeth

Graving Dock

R

Rich mond Rd

Park Ave

3

College

Street P

VICTORIA

PARK

Kimberley Rd

St Pauls Rd

Pine St

Wolseley St

Kensington

Ave

Victoria Rd

Albany St

Porter St

Perth

St

Gately House

Historical Museum

Park Ave

OXFORD ST

East

London

East

London

Buffalo

L Grens Afrikaanse

JAN SMUTS

GROUND

ABSA Stadium

(Basil Kenyon)

STEPHENSON ST

BUFFALO ST

Bushview Ter.

Muir St

Lambart Rd

Convent

La.

College St

Jag ger St

Park Gates Pl.

Astoria

La.

NORTH ST

City Hall

Albert St

Union St

Gilwell St

Brill St

Graham

Southernwood

Tilney St

Arcadia

La.

Middle St

Avenue St

Old Library

Buxton St

Paterson St

Cuthberts Building

Terminus

St

Gladstone St

Althorpe Col.

Old Standard

Bank Building

Caxton St

Cromwell

St

CAMBRIDGE ST

Drury St

Market

Sq.

FLEET ST

Dyer St

Terminus

14

Market

Square

Wool Exchange W.S.U (Buffalo City

Campus, Cambridge St)

F.C.U.

La.

Argyle St

CBD

Buffalo St

Church

St

Recreation Rd

Mill St

Commissioner St

Hill St

Station St

Cambridge St

South St

Arcadia

Dyer Pl.

D unn St

Quigney Rd

East

London

Lock

St

Hely Hutchinson Rd

Bowls Rd

Atlas Rd

Dyer St

Malcolmess St

VALLEY RD

COMMERCIAL RD

Small Business

Development Complex

Signal St

Lock

Street

Goal

Orient Rd

Prior Cr.

Quigney

Ganteaume

Cr.

Spoornet

Tutton Ter.

Quigney/

Beach

Longfellow St

Caxton St

Chambers

St

72

Symons

St

Alston

St

Spar

Currie St

Bonanza

President P

Hillview Rd

Signal Hill

East London

Moore St

Browning

St

CURRIE ST

Brighton St

Orient Rd

Rhodes St

Mashona

Ter.

Commercial

Rd

72

Jameson

St

Panmure Pl.

FITZPATRICK RD

Burns St

Quigney

Merino St

Inverleith Ter.

Rees St

Rhodes St

Goldschmidt St

Blaine

St

Buffalo Park

Cricket Grounds

EAST BANK

Caxton St

Norden

St

Campbell

St

Goulden

St

Fitzpatrick

Rd

Quanza Rd

Upper Esplanade

Buffalo Park Dr.

Moore St

Clifford St

Tennyson St

Cowper St

Angle St

Clifford

St

Coutts St

St

Norden

MARINE

PARK

Marine Ter.

Seaview Ter.

Cadwal

lan Rd

JOHN BAILIE

MARINE

PARK

Court Cr.

ESPLANADE RD

RD

Aquarium

German Settler

Memorial

INDIA

OCEA

Copyright © MapStudio/MP/2015

Orient Beach

Aquarium Rd


3 Eastern Cape

Scale 1 : 1 850 000

10 11

12 13

14

EC

ED

EE

EF

EG

EH

31°00'S 30°00'S

32°00'S Caravon

Groblershoop

10

Franzenhof

Diklipspoort

73

eThembeni

Prieska

29

Uitspanberg

Prieskapoort

Grovèput

12 28 Karabee

25

Keikamaspoort

Copperton

R357

Redlands

37

D o

R386

Grootdoring

Omdraaisvlei

Sodium

Ongers

Minnieskloof

Potfontein

29 Houtwater Dam

152

Voëlgeraas

Houtkraal

Broken Dam

30

17

32 48

Mekataanspoort

Bushman Paintings

Giesenkraal

Vosburg

51

R384 59 18 31

1511m

Britstown

Olive Schreiner House

Smartt 16

Sweetfontein

Volstruispoort

Syndicate

Brand 12 De Aar 32

Barcelona

Dam

37

R384

Bletterman

89

Die Put

10 Riet 22

101

Renosterpoort

29

Burg

28

9

Mynfontein

9

Kareebospoort

Beyersburg

9

52

R403

Sandkop

Waaipunt

Eselskloof

Deelfontein

29

Louwsplaas

Peerboom

R348

Pampoenpoort

88

30

30

Marthasput

Hano

12

Sterkaar

R398

90

63

Kweekwa

46

42

Merriman

62

Welvanpas

De Klerk

63

Wildebeeste

17

24

1

Van Amstel

Brakpoort

R398

19

12

51 Victoria West

40 Richmond

55

Loxton

Meltonwold

13

Barnard

Hutchinson

K a r

R356

e e

24

R381

r i

b e r g e

88

Rosedene

n g

R403

Sneeukraal

Restvale

Nelspoort

R381 Molteno Pass

11

Karoo

National

Roseberg

40

Renosterkop

Park Pass

Lemoen

Old Town Hall

6 N.G. Church

Beaufort West

1

Droërivier

19

Copyright Steins© MapStudio/MP/2016

69

Letjiesbos

R306

Laingsburg Klaarstroom

b

e r

95

10 11

g e

23°00'E

Wagenaarskraal

37

61

30

Groen

23°00'E

12

Brak

12

62

13

Three Sisters

Kromrivier

Douglas

85

Verster

R369

63

Biesiespoort

66

41

35

41

66

1

Northern

Cape

Strydenburg

Ongers

63

19

R369

32

41

77

42

44

24°00'E Kimberley 8

Old Wagon 8 21 Witput

29 Bridge

11

Hopetown

26

37

Anglo-Boer War

Oranjerivier

Concentration Camp R369

28

56

12

Oran

42

7

R387

Kraankuil

R387

20

Brak

Murraysburg

61

35

Uitkyk

Willowmore 24°00'E 9

21

Poupan

Brak

18

R388

Kranskop

2052m

12 13

14

63

Seekoei

Nort

Ca

S n

55

e

e

Ni

Oudeberg

u

Graaff

Valley of De

Old Mission

55

De Ho

Aberdeen Dam

Thembalesizwe


Eastern Cape

15 16

17

18 19

8

25°00'E

26°00'E Bloemfontein

21

Roodepan

Brakfontein

Witput

Austin's Post

Fouriespruit

1

Wanda

11

45

R704

Dam

Reddersburg

7

49

50

Oranjerivier

Allep

R369 20

R717

Luckhoff 48 Fauresmith 11 Jagersfontein 38 Edenburg

3

10

15

48

Orania 18 33

Charlesville

11

Paradys

70

R704

R387

Sleutelspoort

Boomplaats

1848

37

18

21

50 Krugers

Diamant

60

Gomvlei 6

Vanderkloof

Driebad

16

Trompsburg

Brakfontein

R717

Free State

Petrusville Rolfontein

1

Nature Vanderkloof

Lofter

Breipaal

Reserve

Dam

Philippolis Road 58

48

32

Philippolis

Springfontein

45

41 R369

Waterkloof

R70

Doornkloof

Dupleston

24 Nature Reserve

40

R715

Tussen-die-Riviere

10

14

Priors

Louw Wepener Game Reserve

Philipstown

57

18

48

8

42 11

R701

Donkerpoort

Pellissier House

7

Bethulie Dam Bethulie

31

and Museum

Ossewatrek

G

Gariep Dam Gariep Dam

R369 1938

Norvalspont

einer House

Nat. Res

Olive

Battlefield

R390

Bastersnek

1900

44 38

R389

Oviston

Colesberg 58 Agtertang 35

Gariep

Knapdaar

Dam

22

Venterstad

30

Burgerville

Oviston West 5

23

Killowen

Nat. Res.

58 Ontspringen Lekkerdraai

9

Frans Dam

78

64

Hanover Road

Osfontein

24

Arundel 55

R390

Taalmonument

29

Burg

14

30

Talmon Ephriam

Mzanom

Dwaal

Lion Cachet 1901

Eas

Hanover 19 31

9

Carolus

32

Skietnek 1899

R389

40

Lower Adamson

Noupoort

R391

10

Henning

18

Bulhoek

Kriegerspoort

Dam

Stormber

Carlton

17

Ossewatrek 1938

2074m 9

Steynsburg

Stormberg 1

18

30

Teebus

Lovane 24

Nomon

Sherborne

17

13

22 Mo

Outlet Orange -

R391

31

34

13 Rooispruit

Fish Tunnel

56

Middelburg

Schoombee

8

Syfergat

Northern

R398

Rosmead

21

72

KwaNonzame

R390

Heydon

Sterk

Tafelberg

Cape

Dwarsvlei

Teviot Hofmeyr

Witkransnek

R3

56

39

13

9

35 Conway

S n

e

0 5 10 20 30 40 50 km

Se ekoei

e

u b

e

r g

Klein-Seekoei

Seekoei

Orange

R401

Grassridge

Dam

55

R390

25

32

Nieu-Bethesda

Lootsberg Pass 34

25

62

63

R401

Bethesdaweg R401

10

Visrivier

Dutch Reformed

Naudeberg

30 Spitskopvlei

17

Parsonage

Pass Wapadsberg Pass 18

Baroda

Commando Drift

Koloniesplaas

61

14

Nature Reserve

Tarkastad

63

Agter

46

61

Sneeuberg Post 28

59

Kommandodrif

Elandskloof

Chalmers

Dam R344

Lake

Oudeberg Pass

Old Parsonage Cradock

37

Arthur

uMasizakhe Vanryneveldspas Dam

Lingelihle

Graaff-Reinet Andries Pretorius Monument

Mountain Zebra Olive

Valley of Desolation

Halesowen

Karoo Nat. Res.

National Park

Petersburg

Schreiner's

Old Mission Church

Adendorp

Tomb R390

Spring Va

2012m

35

Munnikspoort

Swaershoek

39

55

Mortimer

45

17

Barakke

Pass 55

2369

Charlwood

R337

Cameron's Glen 58

De Hoop

Behulpsaam

Drennan

Dam

37

Swaershoek

14

Glenrock

52

balesizwe

Witmos

Kendrew

R337

Copyright 18 © MapStudio/MP/2016

R344

63

Daggaboersnek

Pearston

Jansenville

25°00'E Pearston

Cookhouse 26°00'E

Pauls

B ankberg

Oorlogspoort

Kr omel

S

Groot-Brak

lenbo og

u

u

r

b

e

Riet

r g

W i

r

Ta

ka

Riet

Slyk

n t e

Bamboesberg

Elands

r b e r

15 16

17

18 19

Stormb erg

4

EC

ED

EE

EG

Eastern Ca

g

e

Smithfield Smithfield

Aliwal North 31°00'S

Dordrecht Queenstown 32°00'S

EF

EH


5 Eastern Cape

Scale 1 : 1 850 000

20 21

22 23

24

EC

ED

EE

EF

EG

dersburg R717

52

Reddersburg

31°00'S Bethulie

30°00'S

6

Stormb erg

Dewetsdorp

Dewetsdorp

Orange

Helvetia

Gen. de Wet's

Birthplace

Eastern EH Cape

Nevada

36

Jammerdrif

Caledon

Nat. Res.

Welbedacht

Dam

Gelukwaarts

Caledon

S t o

Waterdown

Dam

r m

27°00'E Hobhouse

27 Hobhouse

b

A2

8 Wepener

8

A20

Van Rooyens Gate

Mafeteng

26

25

Rock

29 Dereham Paintings

Birdpark

Van Stadensrus 35

Sepapus Gate

e r g

Caca du

Caledon

Cacadu

Mafeteng

Mazenod Roma A5

59

Morija Matsieng 39

Mak haleng

T h a

b a

Tsomo

P u

Nohana

Mountain 28°00'E

Pass

Cheche

Pass

t s o a

Thaba Putsoa

3095m

Maseru

Semonkong

72

A5

Mokopung

A3

Senqunyana

Great

Kei

Mokhoabong

Pass

LESOTHO

Patlong

R701

Egmont

76

Dam Boesmanskop Cannibal

42 Ketane

Qobong

A4

Caves

Mohales Hoek

Smithfield Dam

Mohale's

31

Mphaki

Smithfield

62

Rubida

Makhalengbrug Hoek A4

Phamong

R701

Klipplaatsdrif 1839

A2

pleston

Cutting Camp Sebapala

29 Zastron Palmietfontein

78

40

Ongeluksnek

ie-Riviere

Genadeberg

Tosing

35

40 R726

Quthing

Reserve

Rouxville

Moyeni (Quthing)

Thaba

25 11

Chitja

Telle Bridge

Bildemar Leeubank

R726 R393

Ralebona

Koukraal

34

Anglo-

Sterkspruit

Goedemoed

Rock SOUTH

Hot

Boer War

30 Brughalte

R392 Bluegums

R393

Sulphur

Monument

Paintings

Springs

53

Herschel

AFRICA

Lundin's Nek

Masango

Rock

Aliwal North

Lady Grey

61

58

Paintings

Naudesnek Lower

Dukathole 18

48

Bamboeskloof

58

Pitseng

56

R396

Braamspruit

Beerley Karringmelkspruit

Rhodes

kkerdraai

27

Vickers

Naudé's Nek Elands Height

6

Monument

Motkop33

New

Moshesh's Ford

Vineyard

32

23

England

Barkly East

Halcyon Drift

Burgersdorp

54

Clanville

9

47

56

Mzanomhle

R392

49

R396

Eastern Cape

58

Clifford

Maclear

Jamestown

R393

49

58

45

20

Rossouw

Ugie

Barkly Pass

Inxu

34

Swempoort R396

Barkly Pass

Stormberg

20

16

Morristown

46

Stormberg 1899

33

Elliot

Nomonde

5

56

Ku-Mayima

Molteno

Dordrecht 32

Cala Road R393

Dordrecht

Ulva

56

49

5 8

30

56

Ida 13

Qiba

Syfergat Boesmanshoek Halseton

Indwe

Garryowen Cala Pass

12

Doringrivier Dam

R396

Cala

Whitmore

Ntiban

Sterkstroom 6 Penhoek Pass

8

23 30

Satansnek

R397 Andriesberg

Braunville

Askeaton

Langdon

61

R344

20

R392

6

15

38

22

39

2106m

Ngcobo

Lady Frere Lufuta

Tsazo

Coghlan

22 Qoqodala

All Saints Nek 8

31

R396

25 Ncora

11

20 Lubisi Dam

Dam

20 10

25

25

15 18

Clarkebury

61

Bailey Sunken Driver's Drift

20 Garden 19

Southeyville

19

Xonxa

13 Mbashe

Bowker's Park

Ezibeleni Dam

16

10

23

12

23

Nobokhwe

Mbashe

h Reformed

18

28

25

25

R408

Bridge

arsonage

Queenstown 20

9

13

61 65

Mlungisi

Qamata 24 9

Bholothwa

Garner's Drift 29

Cofimvaba

Munyu 2

38

19

20

Tarkastad

20

7

6

1922 Bulhoek Rebellion

61

Qombolo Hange Tsomo

St Marks

Mputi 16

16

17

19

R344

M.C.A. Shepstone 1861

31

7

25

R409

Dutywa

Ntisana

Tylden

51 22 Xolobe

26

16

Whittlesea

Nqamakhwe

Ebende

42 R351

Sada

Waqu

58

36

Taleni

67

Catholic

27

Spring Valley

Cathcart 23

Cross 55

23

21

Willowvale

25

Butterworth

R351

Sole

R352

Devil's

R351

Cats

2369m Bellows

6

12

Nico Malan

Thomas River

Bholo

KwaNofodosi

Pass

58

1820 Settlers

Pass

Toleni

29

R345 Milestone

34

32 Great Kei

Katberg

R409 17

Mgwali

River Bridge

Copyright Pass © MapStudio/MP/2016

Dohne

Kei Cuttings

Balfour

Oakdene

Centani

Stutterheim

Komga

Fort

24

Armstrong Seymour 27°00'E Stutterheim Beacon Bay 28°00'E

32°00'S Tarkastad

Molteno

Burgersdorp

20 21

22 23

24

SO

AF


0 5 10 0 520 10 30 20 40 30 50 40 km 50 km

i Centani

Bowker's Bay Bowker's Bay

Eastern Eastern Cape Cape

Midmar Nat. Midmar Res. Nat. Res. Merrivale Merrivale

Thaba-Tseka Thaba-Tseka

Lower Loteni Lower Loteni

Midmar Dam

16

ongokhoabong

Sani Pass Sani Pass

Midmar Dam

16

Hilton

Pass

Sani Pass iMpendle iMpendle

Hilton PIETERM

Sani Pass

Queen Elizabeth QueenPark

Elizabeth Park

A4 A4

29 29

Colenso MColenso M

Cobham

16 Edendale

Station

SOTHO

Police Post Cobham

16 Edendale

Station

Police Post

18 18

Nat. Res. Nat. Res.

Ashburton

Sehonghong

32

Ashburton

Ca

Sehonghong

32

Ca

Himeville Himeville

Munywini Thornville

Woodford

R617 Munywini Thornville

Underberg

Woodford

R617

Underberg

65 65

Deholm Deholm Butu ButuuMhlongonek

uMhlongonek Hammer Hammer

Bushman's Bushman's Nek / Nek /

32 32 Bulwer Bulwer

Mpumalang Mpumalang

Nkonkoana Nkonkoana

20 20

R617 R617

Sehlabathebe Sehlabathebe

Richmond Richmond

Soada Soada R624 R624

Sehlabathebe Sehlabathebe National Park National Park

Donnybrook Forest N. R.

32 EC

Donnybrook Forest N. R.

32 45 45

Coleford Coleford

Carthill Carthill Rosebank Rosebank

Qacha's Qacha's Nek Nek

uMb uMb

Creighton Creighton 35 35

Tsoelike Tsoelike

Kingscote Kingscote

A4

R612

56

Riverside

Bush Lufafa

C.J. Rhodes'

Qacha's Nek

Ramatseliso's

Riverside

Bush R612

56

Lufafa

42 C.J. Rhodes'

Qacha's Nek

Ramatseliso's

42

80

Reserve Reserve Road Road

House House

Gate Gate 80

Qacha's Qacha's Nek Nek

Loch Loch iXopo iXopo

12 12

Buidhe Dud

Mafube

Buidhe Dud

Mafube

Dulini Dulini

Glen Glen

20 20

Lehlohonolo Lehlohonolo Swartberg Swartberg Sneezewood Sneezewood Beulah Beulah Jolivet Jolivet Verno Verno

Singisi

Highflats

Natu

Singisi

New

Umzimkulu

Highflats

Natu

74

Matatiele New

Umzimkulu

74

Matatiele

Franklin Franklin

Knockagh Knockagh

nek ngeluksnek

Braemar Braemar

Roamer's Roamer's Wembley Wembley Amalfi

Inverugie

Rest 26

Amalfi

Inverugie

Rest 26

ED

haba Thaba

Cedarville CedarvilleBailden

Bailden

Chitja

Sigoga Sigoga Edendale Edendale 23

Bisi 38Bisi

38

hitja

23

Mount Currie Mount Currie

56 56

15 15

45 45 Nat. Res. Nat. Res. Bontrand Bontrand

Boyscout Boyscout War War Klipspruit Klipspruit

Goba Goba

R1 R1

Stafford's Stafford's Post Post

HUTH

Kinirapoort Kinirapoort

Memorial Memorial Karg's Post Karg's Post

Kwa - Kwa -

Bonny Bonny

36 36

Harding Harding St Faith'sSt Faith's Dweshula Dweshula

Ridge Kokstad

16

Ridge Kokstad

16

14 Weza Weza

RICA A

14

R405

Brooks Nek

51

47

R405

Brooks Nek

51

47

Mount Fletcher Mount Fletcher

Oribi GorgeOribi Gorge

Oribi Oribi

GorgeSou

2 Sou

Colonanek Colonanek

Gorge 2

2 2

er Lower

28 28

Nat. Res. Nat. Res. Sea Sea

eng Pitseng

21 21

Paddock Paddock

Nqabeni Nqabeni Marburg Marburg uMte uMte

Lahlangubo Lahlangubo

Fort Donald Fort Donald

Port S Port S

Rode Rode

R620 R620

iZingolweni

s Height

Moordenaarsnek

Mount Ayliff

iZingolweni

t

Moordenaarsnek

Mount Ayliff

30 Bizana SOUTH COAST22

Shelly Bea

32 11

30 Bizana SOUTH COAST22

Shelly Bea EE

32 11

Magusheni 61

TOLL ROAD TOLL ROAD uVongo

Magusheni 61

uVongo

Ngabeni

Southbroom Margate

yon Drift

Mount Frere 17

Ngabeni

Southbroom Margate

ift

Mount Frere 17

Redoubt Redoubt Ramsgate Ramsgate

Eastern Eastern

Ntabankulu Ntabankulu

61

2

38 Eastern

61

2

38 Eastern

Munster Munster

56 56

Palm Beach Palm Beach

35 35 61 61

Cape Cape

Cape Cape Umtamvuna Umtamvuna Nat. Res. Nat. Res. Glenmore Glenmore Beach Beach

clear Maclear

Banner Rest Banner Rest

Tina Bridge Tina Bridge

Port Edward

Flagstaff Flagstaff

49 49

Port Edward

Tina

Ntywenka Ntywenka 58 Qumbu 58 Qumbu

R396 R396

33 33 Tsitsa Bridge Tsitsa Bridge

St Cuthberts St Cuthberts

Holy Cross Holy Cross

Mkambati Mkambati

64 3064

30 Nature Nature Umtentu Umtentu

42 Reserve 42 Reserve

Tsolo Tsolo

Palmerton Palmerton

Mkambati Mkambati

a-Mayima

Sidwadweni Sidwadweni

Luchaba Luchaba Stoneyridge Stoneyridge

Lusikisiki Lusikisiki Port Grosvenor Port Grosvenor

National Park National 21Park

21

Mbotyi Mbotyi Goss Point Goss Point

Mthatha Dam Mthatha Dam

Mlengana Mlengana

34 34

Nobantu Nobantu Libode Libode Pass Pass

Gemvale Gemvale

tibane Ntibane

30 30

6 Misty 6 Misty

Mount Mount Rock of Rock of Ntshilini Ntshilini

61 61

61

22 Execution 51

MTHATHA22

Execution 51

MTHATHA Buntingville Old Bunting Old Bunting Tombo Tombo

Port St Johns Port St Johns

Buntingville

19 19

Silaka Nature Silaka Reserve Nature Reserve

31 31

Ngqeleni Ngqeleni57

57

11 11

Viedgesville Viedgesville

Nothintsila

Boulder Boulder Bay Bay

Nothintsila

rylarkebury

Bityi 2Bityi

222

22

52 52

7 7

32 32

Mqanduli Mqanduli

she Mbashe Ngqungqu Ngqungqu Dick King Dick King

Hluleka Nature Hluleka Reserve Nature Reserve

6 6

1842

8

29

1842

8

29

54 54

24 24 15 15

Jojweni Jojweni

7 7

Elliotdale Old31

Morley Old Morley

2

Elliotdale 31

Tshani Tshani

24 24 Coffee Bay Coffee Bay

Hole-in-the-Wall Hole-in-the-Wall Black Rock Black Rock

6

Alderley

6

Alderley Mbolompo Mbolompo Point Point

a Dutywa

31 31

e Ebende Rothmere Rothmere Hobeni Hobeni

31 31

14 14

Ciko 5

The Haven

Willowvale Ciko 5

The Haven

34 26 34 26

7 Nyokana 7 Nyokana Dwesa Nature Dwesa Reserve Nature Reserve

Cats R408 Cats R408 Nqabarha Nqabarha

Pass Pass

24 24

Manubi Manubi

Qhorha Mouth Qhorha Mouth

Mazeppa Mazeppa Bay Bay

Mbashe

Keneka

Mth atha

r g

e

n s b

25 25 26 26 27 27 28 28 29 29

29°00'E 29°00'E

30°00'E 30°00'E Merrivale Merrivale Pietermaritzburg Pietermaritzburg

PIETERM

Mbashe

Tina

Keneka

Mth atha

r g

e

n s b

Mzim

29°00'E 29°00'E

vubu

Mzim

vubu

Mzimhlava

Mz

imvuba

M t

M t amvu

amvu na

na

Eastern Eastern Cape Cape

Mzimhlava

Mz

imvuba

Mzimkulu

Msikaba Msikaba

Mkom azi

Mzimkulu

53

Mkom azi

Copyright Copyright © MapStudio/MP/2016

© 30°00'E 30°00'E

25 25 26 26 27 27 28 28 29 29

53

20

20

Mgeni

Durban Kingsburgh 30°00'S uMzinto Hibberdene 31°00'S

32°00'S

6

Mgeni

EF

EG

EH

Durban Kingsburgh 30°00'S uMzinto Hibberdene 31°00'S

32°00'S

6

EC

ED

EE

EF

EG

EH


7 Eastern Cape

Scale1 1 :: 11 850 000

11 11 12 12

13 13 14 14

15 15

EJ

EK

EL

EM

EN

N.G. N.G. Church

Beaufort West

roërivier

19 19

Amos

Kaapse Poortjie

12 12

Oatlands

26 26

Sou

R338

10 10 Sou

Rietbron

21 21

22

Janse

63 63

22

R306

12 12

19 19

17 17

40 40

Klipplaat

44 44

24 24

20 20

26 26

Kommandokraal

Volstruisleegte

Swanepoelspoort

Humefield

Miller

18 18

Mount Stewart Gr Gr

83 83

19 19

Perdepoort

Knoetze

1229m

24 2414

14

Baroe

28 28

1365m

R329

R329

17 17

Willowmore

55 55

Vondeling

Buyspoort

11 11 Wolwefon

R407

Steytlerville 10 10 K K

Ghwarriepoort

41 41

43 43

35 35

30 30

Rooiloop

14 14

Nuwekloof

45

46

55

Barandas

45

46

55

20 12

Pass Pass

38 38

20 12

R341

Buffelsklip

R339 10 10

162 162

Studtis

Zaaimansdal

8 11

Sandvlakte

Cock

8 11

17 17

Potjiesberg Pass Pass Uniondale

Coleskeplaas R332

9

Buffelsdrif 13 13

9

Eastern Cape

Cambria

13 13

Uniondale Poort Poort

Baviaanskloof

11 11

Speelmanskraal

Misgund

Wilderness Area Area

Demistkraal

Daskop

Prince Alfred's 18 18

9

22

32

Pass

Louterwater

21

68 9

22 Haarlem 32

21

68

Pass

62 62

Die Die Vlug

Andrieskraal

Molenrivier

1618m

Kleinplaat

19

45

R332

19

45

Joubertina

Bergplaas

Heights

Kammiebos

33 33

Barrington

The

Karatara

28 28 R340 The Grootrivier Bloukrans

Formosa

Homtini Pass Pass

Crags Pass Pass Pass Pass

Nature Reserve

Assegaaibos

Rondevlei

Phantom

R339 30 30

Stormsrivier

15

35

25 Pass Wittedrif 15

Kareedouw

35

Kruisfontein

25 Pass Big Big Tree Tree

32 32

Tsitsikamma

Tsitsikamma

Paul Paul Sauer

Woodlands

Clarkson

Sedgefield

Knysna 2 2

National Park Park

Bridge

85 85

17 17

Humansdorp

Wilderness

Belvidere

Plettenberg

Garden Route

Tsitsikamma

Section

Church The The

Knysna Bay Bay

Park

National Park Park

Heads

National Park

Slangrivier

Section Cape

Walker Point

Seal

Oyster Bay Bay

Kleinwater

61 61

R306

85 85

Wiegnaarspoort

66 66

Olifants Olifants

W

i i

t t t

a n O c e a n

EO

Beaufort West

Beaufort West

35°00'S 34°00'S George Herold De Rust

33°00'S

35°00'S 34°00'S George Herold De Rust

33°00'S

23°00'E

24°00'E

e e b b e e r r g g e e

Sout

Sout

Beervlei

Dam Dam

Kariega

Kariega

Groot

Uitkyk

44 44

61 61

Kouga

51 51

9 9

Baviaanskloofberge

Baviaanskloof

Eastern

Cape

De De Hoop

Aberdeen Dam Dam

Thembalesizwe

R338

Marais

38 38

Kouga Kouga

55 55

Graaff-Reinet

Adendorp

Munnikspoort

Aberdeen Road Road

r h r h o o e e o o g g t e t e

G G r or o ot rt ir vi vi i

17 17

Charlwood

Kendrew

75 75

Sundays

Sundays

Grootwinterhoe

Kouga Kouga

60 60

CapeSt St Fra Fra

otw otw

Copyright © © MapStudio/MP/2016

23°00'E

11 11 12 12

24°00'E

13 13 14 14

15 15


0 0 5 51010 20 20 30 30 40 40 50 50km

km

16 17

18

19 20

25°00'E

Eastern Cape

Waterdown

Dam

Adendorp

Tomb

R390

Spring Valley

2012m

35 35

39

R351

Swaershoek

39

45

55 Mortimer

45

Devil's

2369m

Barakke

Pass 55

Bellows

R337

Cameron's Glen

58 58

Nico M

Behulpsaam

Drennan

Pa Pa

37 37

Swaershoek

14 14

Glenrock

Katberg

52 52

Witmos

Pass

R337

18 18

R344

Balfour

63 63

Daggaboersnek

Pearston

Fort Fort

Daggaboersnek

Seym

75 75

Liddleton

Armstrong

N. R. 27

60

58 Bruintjieshoogte Somerset Eastpoort

Mpofu N. R. 27

60

58

48 48

Bedford

East

8 8

Adelaide

KwaNojoli

Fort

21

Blinkwater Fort

Bedford 21

24

12

7

Hare

R337

24

12

Fort 7

63

63

Bofolo

Masewatrek

Cookhouse

25

36Beaufort

Alice

21

1938

25

36 21

Witdrift

Golden Valley

Martello

Long

R350

19 19 Tower

Soutpansnek

Hope

R345

R344

67 67

Jansenville

Middleton