Eastern Cape Business 2018 edition

A unique guide to business and investment in the Eastern Cape. The 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal. To complement the extensive local, national and international distribution of the print edition, 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.

A unique guide to business and investment in the Eastern Cape.
The 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape.
The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal.
To complement the extensive local, national and international distribution of the print edition, 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.


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<strong>2018</strong> EDITION<br />



Water Scarcity in South Africa<br />

Sazile Qweleka, Amatola Water’s Operations Optimisation Manager,<br />

presents the case for new thinking about wastewater recycling and re-use.<br />

With most parts of South Africa experiencing a severe drought,<br />

the severity of the water shortage in the country is inescapable.<br />

Dam levels in the <strong>Eastern</strong> <strong>Cape</strong> continue to decline, despite rains<br />

that have brought some relief. According to a recent report by the<br />

National Department of Water and Sanitation, the total storage<br />

of water in the <strong>Eastern</strong> <strong>Cape</strong> stands at 56.1%, compared to the<br />

same time last year when the average dam levels were at 66.4%.<br />

This trend, coupled with the severe drought conditions, an increasing<br />

population and industrial growth, and environmental<br />

degradation, forces us to look at accelerated innovations in water<br />

resources and water services delivery in order to sustainably<br />

meet future water demands.<br />

In her budget speech in May 2017, the Minister of Water and<br />

Sanitation, Nomvula Mokonyane, highlighted the country’s<br />

heavy reliance on surface water as a concern. She added that it<br />

was for this reason that the Department was planning to ensure<br />

that there is a mix of surface and ground water, which includes<br />

options such as groundwater; wastewater re-use (grey water);<br />

desalination; and rainwater harvesting, among others.<br />

Wastewater re-use, recycled or reclaimed or grey water refers to<br />

former wastewater that has been treated to remove solids and<br />

certain impurities, and then re-used for a variety of applications<br />

including landscaping and irrigation, for example.<br />

Although costly, many coastal cities appear to prefer desalination<br />

as a solution to the water crisis. However, unlike its desalination<br />

counterpart, an added advantage of wastewater recycling and<br />

re-use is that it requires far less electricity.<br />

A resource, not waste<br />

We need to start dealing with wastewater differently and explore<br />

wastewater re-use and recycling as a resource rather than waste.<br />

Leading the cities in this area is the city of Durban, which is<br />

home to the country’s first private water recycling plant. The<br />

idea for the plant was born in 1993 out of concern for the area’s<br />

increasing demand and limited water resources. This plant was<br />

later commissioned in 2001.<br />

The plant treats 47.5-million litres of domestic and industrial<br />

wastewater to a near-potable standard for sale to industrial customers,<br />

with an added benefit of a lower tariff when compared<br />

to the normal tariff. The plant has helped to free up sufficient<br />

drinking water for approximately 300 000 people in the area.<br />

In turn, this has reduced the demand for potable water and<br />

the quantity of effluent that is returned into the environment.<br />

Using Durban as an example of a success story of how wastewater<br />

recycling and re-use can be managed and used, it is clear that the<br />

future of water sustainability lies in looking at sources of water<br />

that will not only mitigate the effects of the drought, but also<br />

complement the existing sources.


high quality laboratory services and<br />

reliable testing results to our clients<br />

As the first ISO 17025:2005 accredited laboratory in the <strong>Eastern</strong> <strong>Cape</strong>, the Amatola Water lab is<br />

assured to provide the highest standards of quality in laboratory services.<br />

This nationally recognised accreditation confirms that Amatola Water has a quality management<br />

system and the technical requirements in place to offer water sample analysis in line with SANS 241<br />

standards, and provide reliable and accurate results data through a comprehensive water quality<br />

monitoring and management programme - giving quality assurance to customers that water<br />

quality standards are being met.<br />

Amatola House<br />

6 Lancaster Road, Vincent, East London<br />

Tel: (043) 707 3700<br />

aw@amatolawater.co.za<br />




<strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> <strong>2018</strong> Edition<br />

Introduction<br />

Foreword 5<br />

A unique guide to business and investment in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

Special features<br />

Regional overview 6<br />

The <strong>Eastern</strong> <strong>Cape</strong> is creating a new Big Five as maritime<br />

activities, renewable energy and tourism grow in importance to<br />

the provincial economy.<br />

Renewable energy is creating new opportunities 14<br />

The <strong>Eastern</strong> <strong>Cape</strong> is a wind power hot-spot.<br />

International events are driving the tourism industry 18<br />

St George’s Park cricket ground is a world leader in lighting.<br />

Economic sectors<br />

Agriculture 40<br />

The <strong>Eastern</strong> <strong>Cape</strong> is South Africa’s top livestock provider.<br />

Forestry 44<br />

Thousands of hectares have been identified for new planting.<br />

Aquaculture 45<br />

An aquaponics project will provide food for poor people.<br />

Agriprocessing 46<br />

Expanding agriprocessing will create jobs.<br />

Manufacturing 48<br />

Clusters are promoting niche manufacturing.<br />

Automotive and components 50<br />

Beijing Automotive’s new factory is a major boost for the<br />

sector.<br />

Water 52<br />

A large project is planned for the Umzimvubu River.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />






fluid pipes<br />

sun visors<br />

door modules<br />

plastic<br />

components<br />

head liner<br />

parcel tray<br />

fuel tank<br />

impact<br />

dampers<br />

wheels & tyres<br />

cockpits carpets seat components<br />

boot<br />

liner<br />

full exhaust system<br />

suspension<br />

components<br />

The East London IDZ Automotive sector is home to 16 operational automotive manufacturers. These world renowned<br />

manufacturers are 1st and 2nd tier component suppliers to global auto players such as Mercedes-Benz, BMW,<br />

Volkswagen and General Motors. With tailor made solutions to suit each investor, the East London IDZ boasts a 16<br />

hectare custom built Automotive Supplier Park (ASP) from which components and specialised services destined for<br />

the local and export market depart.<br />

The ASP is also home to the first Metal Surface Treatment (aluminium treatment and E-Coating) facility in the greater<br />

Border area. Fitted with state of-the-art technology, the facility has installed value adding services to the automotive<br />

sector, thereby enhancing the attractiveness of the IDZ by promoting shared services to create efficiencies, through<br />

enabling infrastructure which can be used by multiple investors. This world class ASP’s appeal has sparked interest<br />

from both local and international manufacturers. As such, plans are at an advanced stage to expand its foot print to<br />

meet current and future demand.<br />

Through the ELIDZ’s customised solutions, these component manufacturers are able to:<br />

• Access dedicated utilities and services specially designed to stimulate industrial productivity, expansion and<br />

export competitiveness<br />

• Experience time and cost savings arising from shared logistical and supply chain arrangements<br />

To take advantage of a comprehensive package of industry support assistance, national trade and export promotion<br />

incentives, call us now.<br />

T: 043 702 8200 | E: cyndi-lee@elidz.co.za | www.elidz.co.za


Education and training 54<br />

Nelson Mandela University has launched an Ocean Sciences<br />

Campus.<br />

Banking and financial services 56<br />

New banking licences are being issued.<br />

Development finance and SMME support 58<br />

Aquaponics and forestry are receiving support.<br />

Government<br />

<strong>Eastern</strong> <strong>Cape</strong> Provincial Government 60<br />

An overview of the <strong>Eastern</strong> <strong>Cape</strong> provincial government<br />

departments.<br />

<strong>Eastern</strong> <strong>Cape</strong> Local Government 61<br />

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

References<br />

Sector contents 38<br />

Index64<br />

Maps<br />

<strong>Eastern</strong> <strong>Cape</strong> regional map. 9<br />

<strong>Eastern</strong> <strong>Cape</strong> municipal map. 63<br />

Free State<br />


KwaZulu-<br />


Rouxville Zastron<br />

Matatiele Natal<br />

Britstown<br />

Bethulie<br />

Ixopo<br />

R56<br />

N12 De Aar<br />

Mount<br />

Aliwal North<br />

Colesburg Oviston<br />

Lady Grey<br />

Mount Kokstad<br />

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

R58<br />

Fletcher<br />

Ayliff<br />

Burgersdorp<br />

Port Edward<br />

Hanover<br />

Jamestown Barkly<br />

R61<br />

N10<br />

East Maclear Mount Frere<br />

N1<br />

Steynsburg<br />

N6 Dordrecht<br />

N2<br />

Victoria West<br />

R56<br />

Middelburg<br />

Molteno<br />

Elliot<br />

Lusikisiki<br />

Indwe<br />

Hofmeyr<br />

Mthatha<br />

Three Sisters<br />

Queenstown<br />

Port St Johns<br />

R61<br />

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

Tsomo<br />

Tarkastad<br />

Coffee Bay<br />

Beaufort West Graaff-Reinet<br />

Cradock<br />

Sada Cathcart<br />

N<br />

R61<br />

R63 Somerset<br />

Aberdeen<br />

Stutterheim<br />

Butterworth<br />

Pearston East Adelaide Fort<br />

Komga<br />

N9<br />

Beaufort<br />

Cookhouse<br />

Bhisho N2<br />

Klipplaat<br />

Rietbron<br />

N10<br />

King William's<br />

Town EAST LONDON<br />

Willowmore<br />

Kirkwood<br />

Grahamstown<br />

Steytlerville<br />

Paterson<br />

N2<br />

Hamburg<br />


Uniondale<br />

R72<br />

Joubertina<br />

N9<br />

Uitenhage<br />

Port Alfred<br />

Motorway<br />

Knysna N2<br />

Humansdorp<br />

Main Road<br />

Kareedouw<br />


Railway<br />

Plettenberg Bay<br />

Jeffreys Bay<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Publisher: Chris Whales<br />

Publishing director: Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Rugshaana Abrahams and<br />

Tyra Martin<br />

Production: Lizel Olivier<br />

Ad sales: Sydwell Adonis, Nigel<br />

Williams, Gavin van der Merwe,<br />

Sam Oliver, Gabriel Venter,<br />

Jeremy Petersen, Shiko Diala, Joseph<br />

Gumbo, Vanessa Wallace, Reginald<br />

Motsoahae and Siya Sthunda.<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

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

A unique guide to business and investment in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

. The <strong>2018</strong> <strong>edition</strong> of <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is the 11th issue of<br />

this highly successful publication that, since its launch in 2006,<br />

has established itself as the premier business and investment<br />

guide for the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s investment and business opportunities are<br />

highlighted in this publication. In addition to the regular articles providing<br />

insight into each of the key economic sectors of the province,<br />

there are special features on the role of the renewable energy sector<br />

on the region’s future and on the growth of tourism (spurred by the<br />

hosting of international events such as the <strong>2018</strong> IRONMAN 70.3 World<br />

Championship, the first-ever cricket Test match to be played at night<br />

at St George’s Park and Vodacom Origins of Golf events at St Francis<br />

Links). All of the major business chambers in the province have made<br />

contributions to the journal.<br />

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

of the print <strong>edition</strong>, the full content can also be viewed online at<br />

www.easterncapebusiness.co.za. Updated information on the <strong>Eastern</strong><br />

<strong>Cape</strong> is also available through our monthly e-newsletter, which you can<br />

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

business-to-business titles that cover all nine provinces as well as our<br />

flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

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



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

and incoming trade missions, through the <strong>Eastern</strong><br />

<strong>Cape</strong> Development Corporation (ECDC); to foreign offices in<br />

South Africa’s main trading partners around the world; at top<br />

national and international events; through the offices of foreign<br />

representatives in South Africa; as well as nationally and<br />

regionally via chambers of commerce, tourism offices, trade<br />

and investment agencies, provincial government departments,<br />

municipalities and companies, as well as major airport lounges.<br />

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

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

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permission of Global Africa Network Media (Pty) Ltd. CREDITS | Cover:<br />

Globeleq’s Jeffreys Bay wind farm has installed capacity of 138MW and<br />

was one of the first wind power facilities to come on stream as part of<br />

the national governmnet’s independent power producers’ programme.<br />

Pictures supplied by Thinkstock.com, VW South Africa, Nelson Mandela<br />

University and Transnet National Ports Authority.<br />


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Media (Pty) Ltd, has used all reasonable efforts to ensure that<br />

the information contained in <strong>Eastern</strong> <strong>Cape</strong> <strong>Business</strong> is accurate<br />

and up-to-date, the publishers make no representations as to the<br />

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Global Africa Network will not accept responsibility for any loss or<br />

damage suffered as a result of the use of or any reliance placed<br />

on such information.<br />

7<br />

EASTERN CAPE BUSINESS <strong>2018</strong>



The <strong>Eastern</strong> <strong>Cape</strong> is creating a new Big Five as maritime activities, renewable<br />

energy and tourism grow in importance to the provincial economy.<br />

The Big Five is a well-known concept describing<br />

the most sought-after game animals<br />

to be spotted on safari. The <strong>Eastern</strong><br />

<strong>Cape</strong> is moving towards an economic<br />

equivalent, where five sectors will underpin the<br />

provincial economy. For many years the <strong>Eastern</strong><br />

<strong>Cape</strong> has relied on two giants to drive growth:<br />

agriculture and the automotive industry.<br />

The latest trends suggest that three other sectors<br />

are playing an important role in advancing economic<br />

progress in the coastal province: the maritime<br />

sector (including oil and gas and logistics); renewable<br />

energy (primarily wind); and an expanded<br />

tourism sector.<br />

Historically, wool and ostrich feathers were the<br />

region’s first exports and these items are still in the<br />

export basket (with wool more prominent than ostrich<br />

feathers). In time, the <strong>Eastern</strong> <strong>Cape</strong> also became<br />

a global leader in mohair, the luxury fibre taken<br />

from Angora goats. This position has strengthened<br />

in recent years. The fertile Langkloof Valley in the<br />

west has enormous deciduous fruit orchards and<br />

the Alexandria and Grahamstown area produces<br />

pineapples, chicory and dairy products. The <strong>Eastern</strong>


<strong>Cape</strong> is the leading livestock province in terms of<br />

numbers of sheep and cattle and produces a quarter<br />

of South Africa’s milk.<br />

The manufacturing facilities of Volkswagen<br />

South Africa (in Uitenhage) and Mercedes-Benz<br />

South Africa (East London) are at the core of the<br />

province’s important automotive sector. It was to<br />

support this sector that industrialisation took place<br />

in the province. Smelters and metal works were<br />

built to service car makers and automotive component<br />

manufacturers. Ford engines are built in Port<br />

Elizabeth and a wide range of makers of automotive<br />

glass, catalytic converters, vehicle tyres and other<br />

parts are found in Uitenhage, Port Elizabeth and<br />

at the Industrial Development Zone (IDZ) in East<br />

London.<br />

New investments into this sector are coming<br />

from both international and local investors. Two<br />

Chinese car makers have recently invested in the<br />

Coega IDZ, First Automotive Works (FAW) and<br />

Beijing Automobile Corporation (BAIC). Local giants<br />

Volkswagen SA and Mercedes-Benz SA have<br />

invested heavily in increased capacity for new lines<br />

of production.<br />

New impetus<br />

The three sectors identified above have all received<br />

significant boosts in recent months.<br />

In the maritime sector or Oceans Economy,<br />

national government has named the Coega IDZ<br />

as the site for a 1 000MW Liquefied Natural Gas<br />

(LNG) plant. The value to the regional economy of<br />

the project is estimated at R25-billion. A gas-fired<br />

power plant (Dedisa) started operating at Coega<br />

in 2016, and there are plans to expand this sector.<br />

Since the company Aegean Bunkering Marine<br />

Services was licensed in 2016 by the South African<br />

Maritime Safety Authority (SAMSA) and Transnet<br />

to supply bunker fuel to ships passing through<br />

Algoa Bay, an additional 845 ships have used<br />

these services, adding more than R70-million to<br />

the local economy.<br />

With the purchase by large companies like<br />

Statoil from Norway of a significant stake in exploration<br />

rights off the coast of the province, interest<br />

in offshore drilling is picking up. ExxonMobil is the<br />

approved operator of the Transkei-Algoa licence<br />

area, which covers about 45 000km². Statoil is in<br />

another partnership with OK Energy in another<br />

field. Exploration activity will mean more work<br />

on the maintenance and supply of ships in East<br />

London and Port Elizabeth.<br />

The launch of a specialist Ocean Sciences<br />

Campus at the Nelson Mandela University is another<br />

factor supporting the growth of maritime<br />

activities.<br />

The renewable energy sector is similarly supported<br />

by educational institutions in the province,<br />

which provide research and skilled graduates who<br />

can take up jobs in the sector. The University of<br />

Fort Hare is studying biogas as a possible fuel for<br />

public transport in partnership with the United<br />

Nations Industrial Development Organisation<br />

and United States Agency for International<br />

Development.<br />

The <strong>Eastern</strong> <strong>Cape</strong> has become the country’s<br />

top site for wind farms and the East London IDZ,<br />

using turbines made by a local manufacturer,<br />

Adventure Power, aims to bolster supply security<br />

with its own 1.8MW wind farm.<br />

The overall picture for renewable energy in the<br />

province is positive, but there have been setbacks,<br />

not least in the closure of DCD Wind Towers, an<br />

Industrial Development Corporation-backed venture<br />

that was supposed to manufacture wind towers<br />

from its plant in the Coega IDZ. Uncertainty<br />

about the national independent producers’ programme<br />

led to the plant’s closure in 2016.<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s beaches and natural beauty<br />

have been attractive to tourists for many years,<br />

but recent initiatives to expand the province’s offerings<br />

are paying off. With a focus on events and<br />

“adventure tourism”, visitor numbers are steadily<br />

growing. The province aims to be a “Top Three”<br />

domestic destination by 2020. Spending by tourists<br />

has grown from R2.4-billion in 2013 to R4.1-<br />

billion in 2015 and the average length of stay (5.3<br />

days) is the best in South Africa.<br />

Recent investments by the <strong>Eastern</strong> <strong>Cape</strong> Parks<br />

and Tourism Agency include the construction of<br />

a conference centre at the <strong>Cape</strong> Morgan Nature<br />

Reserve. The hosting of the <strong>2018</strong> IRONMAN 70.3<br />

9 EASTERN CAPE BUSINESS <strong>2018</strong>


World Championship event is evidence that the<br />

strategy of attracting events to the <strong>Eastern</strong> <strong>Cape</strong> is<br />

working. There will be significant financial spin-offs<br />

from this international event.<br />

Assets<br />

The <strong>Eastern</strong> <strong>Cape</strong> extends over 169 580 square<br />

kilometres, representing 13.9% of South Africa’s<br />

land mass. The dry western interior is one of the<br />

country’s premier sheep-rearing destinations.<br />

The mountainous regions of the north and east<br />

of the province support timber plantations while<br />

the coastal belt in the south-west is well-watered<br />

and is good for dairy farming. The province has<br />

spectacular beaches stretching from the surfer’s<br />

paradise at Jeffreys Bay all the way to the famed<br />

Wild Coast.<br />

Two major airports at Port Elizabeth and<br />

East London provide good air links and smaller<br />

towns such as Mthatha and Bhisho have airports.<br />

Mthatha has recently received upgrades and SA<br />

Express has added five direct flights per week to<br />

and from <strong>Cape</strong> Town.<br />

The Umzimvubu Multipurpose Development<br />

Project is a large development plan that incorporates<br />

a multi-purpose dam to supply water for new<br />

irrigation, hydropower generation and domestic<br />

water supply.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Development Corporation is<br />

a development financier and it is supporting enterprises<br />

in the growing ICT and film sectors through<br />

the <strong>Eastern</strong> <strong>Cape</strong> Information Technology Initiative<br />

(ECITI).<br />

Alfred Nzo District Municipality<br />

Towns: Matatiele, Mount Frere, Mount Ayliff<br />

The smallest district is in the mountainous northeast,<br />

with hiking trails for tourists. There is scope<br />

for expansion of tourist activities, and a transfrontier<br />

park between South Africa and Lesotho could<br />

boost the area’s economy.<br />

Subsistence agriculture and forestry are the major<br />

economic activities. There have been several<br />

investments in forestry in recent years.<br />

Amathole District Municipality<br />

Towns: Cathcart, Stutterheim, Morgan Bay,<br />

Willowvale, Butterworth, Mazeppa Bay, Alice,<br />

Bedford<br />

The rural Amathole District surrounds the metropolitan<br />

area of Buffalo City. Pineapple and forestry<br />

are two of the most important agricultural activities.<br />

Popular resorts on the Wild Coast attract many<br />

tourists to the area. Hogsback and other towns near<br />

the Amatole Mountains offer beautiful scenery and<br />

popular beaches. The main campus of the University<br />

of Fort Hare is located at Alice.<br />

Sarah Baartman District Municipality<br />

Towns: Graaff-Reinet, Humansdorp, Jeffreys<br />

Bay, Grahamstown<br />

The western part of the province contains the biggest<br />

municipality and is one of the biggest contributors<br />

to provincial GDP. Large commercial farms in<br />

the Karoo produce high-quality meat, wool and<br />

mohair, while the coastal belt has dairy farming<br />

and some forestry. The Kouga Valley is a big deciduous<br />

fruit producer, while the Kirkwood/Addo area<br />

is known for its citrus. Sarah Baartman has three of<br />

the region’s national parks and several private game<br />

farms. Grahamstown hosts the National Arts Festival,<br />

Rhodes University and several fine schools.<br />

Chris Hani District Municipality<br />

Towns: Middelburg, Molteno, Dordrecht,<br />

Cradock, Queenstown, Lady Frere, Elliot<br />

Sheep farming is an important part of the economy.<br />

Some coal is found in the north and tourist activities<br />

include fly-fishing. The Foodcorp factory in Molteno<br />

manufactures Ouma rusks. Queenstown is a centre<br />

for cattle farming and has some manufacturing<br />

activities. The Mountain Zebra National Park is near<br />

Cradock. The Grootfontein Agricultural College and<br />

Research Station is in Middelburg, and the Marlow<br />

Agricultural College is near Cradock.<br />

OR Tambo District Municipality<br />

Towns: Mthatha, Coffee Bay, Port St Johns,<br />

Qumbu, Bizana, Flagstaff<br />

OR Tambo District Municipality encompasses<br />

some of the province’s least-developed areas and<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



contains one of South Africa’s most important<br />

ecological areas, the Pondoland Centre of Plant<br />

Endemism. Mining is already pursued in some<br />

areas but plans for titanium mining on seaside<br />

dunes are being contested. A Wild Coast Spatial<br />

Development Initiative exists to plot further development.<br />

Forestry is a big employer.<br />

Joe Gqabi District Municipality<br />

Towns: Aliwal North, Burgersdorp, Lady Grey,<br />

Rhodes, Barkly East, Ugie<br />

Cattle and sheep farming make up 80% of land<br />

use, while commercial forestry is a big contributor<br />

to employment. There are large forestry<br />

plantations at Ugie and Mount Fletcher. Maize is<br />

grown along the Orange River and wheat in the<br />

foothills of the Drakensberg mountains. Tiffindell<br />

has been revived as a ski resort.<br />

Quick facts:<br />

Capital: Bhisho<br />

Major cities: Buffalo City Metropolitan Municipality<br />

(Bhisho, East London and King William’s Town) and<br />

Nelson Mandela Bay Metropolitan Municipality,<br />

(Port Elizabeth and Uitenhage)<br />

Languages: 78.8% isiXhosa, 10.6% Afrikaans, 5.6%<br />

English<br />

Population: 6.9-million<br />

Share of total South African population: 12.7%<br />

The province’s population of 6.9-million makes it<br />

the country’s third most populous province, with<br />

about 15% of the national population.<br />


Free State<br />


KwaZulu-<br />

Natal<br />

Rouxville Zastron<br />

Matatiele<br />

Britstown<br />

Bethulie<br />

Ixopo<br />

R56<br />

N12 De Aar<br />

Mount<br />

Aliwal North<br />

Colesburg Oviston<br />

Lady Grey<br />

Mount Kokstad<br />

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

R58<br />

Fletcher<br />

Ayliff<br />

Burgersdorp<br />

Port Edward<br />

Hanover<br />

Jamestown Barkly<br />

R61<br />

N10<br />

East Maclear Mount Frere<br />

N1<br />

Steynsburg<br />

N6 Dordrecht<br />

N2<br />

Victoria West<br />

R56<br />

Middelburg<br />

Molteno<br />

Elliot<br />

Lusikisiki<br />

Indwe<br />

Hofmeyr<br />

Mthatha<br />

Three Sisters<br />

Queenstown<br />

Port St Johns<br />

R61<br />

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

Tsomo<br />

Tarkastad<br />

Coffee Bay<br />

Beaufort West Graaff-Reinet<br />

Cradock<br />

Sada Cathcart<br />

N<br />

R61<br />

R63 Somerset<br />

Aberdeen<br />

Stutterheim<br />

Butterworth<br />

Pearston East Adelaide Fort<br />

Komga<br />

N9<br />

Beaufort<br />

Cookhouse<br />

Bhisho N2<br />

Klipplaat<br />

Rietbron<br />

N10<br />

King William's<br />

Town EAST LONDON<br />

Willowmore<br />

Kirkwood<br />

Grahamstown<br />

Steytlerville<br />

Paterson<br />

N2<br />

Hamburg<br />


Uniondale<br />

R72<br />

Joubertina<br />

N9<br />

Uitenhage<br />

Port Alfred<br />

Motorway<br />

Knysna N2<br />

Humansdorp<br />

Main Road<br />

Kareedouw<br />


Railway<br />

Plettenberg Bay<br />

Jeffreys Bay<br />

11<br />

EASTERN CAPE BUSINESS <strong>2018</strong>


Black Management<br />

Forum – <strong>Eastern</strong> <strong>Cape</strong><br />

Building a capable development state.<br />

Please outline the main objectives of the Black Managenent<br />

Forum.<br />

The BMF is a non-racial, thought leadership organisation founded in<br />

1976, with the main purpose of influencing socio-economic transformation<br />

in pursuit of socio-economic justice, fairness and equity. The BMF<br />

has been keeping corporate South Africa in check and encouraging<br />

participation of the broader South African stakeholders. The organisation<br />

stands for the development and empowerment of managerial<br />

leadership, primarily among black people, within organisations and<br />

the creation of managerial structures and processes which reflect the<br />

demographics and values of the wider society. Whereas the BMF is<br />

non-partisan, it is not apolitical. The BMF is not neutral on matters of<br />

transformation but rather pro-transformation.<br />

Cuma Dube, Provincial<br />

Secretary - BMF <strong>Eastern</strong> <strong>Cape</strong><br />

What is the BMF’s current focus?<br />

Public sector reform for the building of a capable development state<br />

and understanding the role of the black professional in driving the<br />

transformation agenda.<br />

What are the most recent achievements of the BMF in the<br />

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

The BMF <strong>Eastern</strong> <strong>Cape</strong> in 2017 successfully provided a platform and<br />

hosted panel discussions regarding the challenges facing black professionals<br />

in public service. The discussions tackled the roles of officials,<br />

managers and politicians; procurement and corruption; managerial<br />

excellence, the recruitment and the retention of the best talent into<br />

public service. The role of the black professional was interrogated and<br />

whether there is reputational risk for the black professional in public<br />

service. These discussions culminated in a research report with which<br />

we aim to continue our engagements with the political leadership,<br />

civil society, labour and government officials towards strengthening<br />

the state.<br />

The Black Management Forum has always enjoyed a cordial and<br />

productive relationship with other civil society organisations, labour and<br />

the government. Our events and programmes are regularly attended<br />

by representatives of these organisations and institutions and ideas are<br />

shared in the <strong>Eastern</strong> <strong>Cape</strong>. Communication, coordination and bilateral<br />

initiatives can be improved. There is real work to be done in the <strong>Eastern</strong><br />

<strong>Cape</strong> and it must begin with strengthening these relationships.<br />


With an LLB from the University<br />

of Fort Hare, a Master’s in<br />

Sustainable Development and<br />

a diploma in development and<br />

renewable energy, Cuma Dube<br />

advises the Chris Hani District<br />

Municipality on low emissions<br />

and is the Managing Director<br />

of SIG Energy. Cuma is the former<br />

Executive Director of the<br />

<strong>Eastern</strong> <strong>Cape</strong> Youth Chamber<br />

of Commerce and was the BMF<br />

<strong>Eastern</strong> <strong>Cape</strong>’s Young Professional<br />

of the Year (2015) and in<br />

The Sowetan’s Top 100 Young<br />

Bosses of the Year (2016).<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />


East London Industrial<br />

Development Zone<br />


Incentives are attracting new investors, as ELIDZ Chief<br />

Executive Officer, Mr Simphiwe Kondlo, explains.<br />

What are the most attractive incentives for investors?<br />

A number of incentives assist our investors to lower their operational<br />

costs and maximise their profits. Specialised Customs Controlled<br />

Area benefits include: VAT exemption on imported goods, capital<br />

equipment and electrical and water supply; no import duties on raw<br />

materials and other consumables for manufacture, goods for storage<br />

and capital goods used in the custom controlled area. There are also<br />

specialised local incentives such as preferential land rental and utility<br />

rates, competitively priced land, access to national manufacturing and<br />

other generic government incentives. Additionally, after the finalisation<br />

of the transition process from an IDZ to a Special Economic Zone (SEZ)<br />

there will be new incentives such as reduced corporate income tax.<br />

Simphiwe Kondlo<br />

Have you received any new investments?<br />

Despite the gloomy economic outlook, the ELIDZ managed to buck<br />

the trend and surpass its own investment target by attracting four<br />

new investors valued at R1.6-billion combined. These developments<br />

augur well for the diversification of our investment portfolio. Once fully<br />

operational, the new investments will yield an estimated 1 422 jobs.<br />

Our geographic location, quality sea and airports, abundance of<br />

natural resources, skills and world-class infrastructure bodes well for<br />

the growth of export-oriented industries. As such, the ELIDZ has hosted<br />

numerous delegations on fact-finding missions.<br />

What support services does the ELIDZ offer?<br />

We offer soft landing support to investors through the provision of<br />

business streamlining and support services. These aid investors in<br />

the completion of investments and the start-up of local operations.<br />

A skilled team of experts assists with relocation planning, market<br />

research and intelligence, business set-up requirements including<br />

company registration, compliance, access to government services<br />

and incentives, labour recruitment and skills development facilitation.<br />

Will the upgrades to the Port of East London assist?<br />

Our value proposition rests heavily on access to sound infrastructure<br />

such as freight, road and rail. Government has been making notable<br />

progress in revitalising infrastructure for the good of the region.<br />

Upgrades to the port will grow our international footprint and further<br />

widen the scope of the ELIDZ.<br />


Mr Simphiwe Nicholas Kondlo,<br />

the Chief Executive Officer of<br />

the ELIDZ, holds a Master’s<br />

Degree in Engineering Management<br />

and has more than<br />

23 years’ experience spanning<br />

various fields including civil and<br />

agricultural engineering. With<br />

him at the forefront, the ELIDZ<br />

is a front-runner in the field and<br />

continues to flourish as a multisector<br />

Industrial Development<br />

Zone.<br />

13<br />

EASTERN CAPE BUSINESS <strong>2018</strong>

FOCUS<br />

A bank focused on U<br />

Ubank—servicing the broader working market in South Africa since 1975.<br />

Long-standing financial services provider,<br />

Ubank has grown over the years and has<br />

succeeded in entrenching itself primarily<br />

within the gold and platinum mining<br />

communities.<br />

For over 40 years, Ubank has provided basic financial<br />

services to mineworkers and their families.<br />

Initially called Teba Cash Financial Services, the<br />

entity was formed to provide mineworkers with<br />

basic financial services during a time when other<br />

financial institutions largely ignored this sector<br />

of the market.<br />

These included facilitating the remittance of<br />

funds to families and dependents in the rural and<br />

labour-sending areas using a linked account facility.<br />

In the early 1990s, as South Africa was undergoing<br />

fundamental political change as a country, the<br />

Godsell, Motlatsi Commission was formed. This led<br />

to the transition from a savings fund into a commercial<br />

bank. In June 2000, Ubank (then Teba Bank),<br />

was granted a banking licence, although its ownership<br />

remained in the form of a trust managed by<br />

trustees who were elected by the National Union of<br />

Mineworkers (NUM) and the South African Chamber<br />

of Mines. The beneficiaries of the trust are the bank’s<br />

customers.<br />

In 2006, it was decided by NUM in conjunction<br />

with the Congress of South African Trade Unions<br />

(COSATU) to extend the banking services to other<br />

workers and it was, in reality, a workers bank. Ubank<br />

comes from a tradition of savings and has continued<br />

to strongly promote savings as part of its offering.<br />

In 2007, Ubank welcomed a new vision, mission,<br />

set of values and strategy. Essentially, this saw Ubank<br />

set itself up to become the “Workers Bank of Choice”.<br />

In October 2010, the name of the bank was<br />

changed to Ubank and was launched as a retail<br />

bank for the mass market. Since the birth of the new<br />

brand and strategy, various initiatives to improve<br />

and expand the business have been delivered.<br />

The need for this change was driven by the desire<br />

to extend services beyond the niche market that<br />

Ubank had traditionally serviced, broadening its<br />

customer base and introducing products and services<br />

relevant to this market. The first phase of the<br />

re-positioning focused on changing the corporate<br />

identity and introducing an innovative packaged<br />

product range relevant to the needs of the people of<br />

South Africa, entrenching the bank amongst workers,<br />

their families and their communities.<br />

The Ubank name was derived from the bank’s<br />

proud identity, heritage and uniqueness. The logo<br />

represents the fingerprint of the workers who have<br />

built the bank over 40 years into a truly homegrown<br />

South African bank. Ubank serves the primary banking<br />

needs of close to 500 000 individuals, safeguarding<br />

over R3 billion worth of their deposits.<br />

Ubank offers basic banking products that<br />

can be described as follows:<br />

• Transaction accounts<br />

• Debit cards (issued with VISA)<br />

• Lending products (e.g personal loans)<br />

• Savings (fixed deposits, Save Together)<br />

• Funeral plan products<br />

• Cellphone banking (SMS notifications).<br />

Ubank is driven by a social consciousness that<br />

underpins all they do – their customers are their<br />

owners and they exist to serve them through<br />

the provision of financial services that meet their<br />

changing needs and improve their lives. One of<br />

the pillars driving the Ubank business strategy is<br />

community development. Investing in the communities<br />

in which they operate forms a critical<br />

part of how they do business, hence the bank’s<br />

commitment to allocate 4% of the pre-tax profits<br />

to community development annually.<br />

Driven by the social objective of improving<br />

the quality of their community’s lives, Ubank’s<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />


CSI focus is on empowering its communities<br />

through community investment in sustainable<br />

educational programmes.<br />

The nature of the business ensures that community<br />

development and participation remains<br />

at the core of how Ubank conducts its business.<br />

This is to ensure that continuous and sustainable<br />

community investment initiatives are made that<br />

benefit their customers and the communities<br />

where they operate.<br />

The mandate and plan to service the broader<br />

working market in South Africa have become<br />

imperative in order to extend affordable financial<br />

services to South Africa. Ubank has a strong<br />

presence and customer accessibility and they are<br />

proud of their long association with the mining industry,<br />

including mineworkers, mining companies,<br />

all Labour Unions and the Chamber of Mines, who<br />

have played a significant role in the development<br />

of this bank.<br />

15<br />

EASTERN CAPE BUSINESS <strong>2018</strong>


Renewable energy is creating new<br />

opportunities<br />

The <strong>Eastern</strong> <strong>Cape</strong> is a wind power hot-spot.<br />

The <strong>Eastern</strong> <strong>Cape</strong> is home to two of the<br />

eight Renewable Energy Development<br />

Zones (REDZs) designated in a national programme.<br />

The Environmental Management<br />

Services unit within the Council for Scientific and<br />

Industrial Research (CSIR) was responsible for identifying<br />

suitable areas around the country. They had<br />

to meet three criteria: the presence of good wind<br />

or solar resources, good environmental conditions<br />

that could withstand the presence of solar panels or<br />

wind turbines and a high need for socio-economic<br />

development.<br />

Cookhouse and Stormberg are the two <strong>Eastern</strong><br />

<strong>Cape</strong> areas that are REDZ and hopes are high that<br />

these concentrations of activity will lead to economic<br />

growth and the creation of jobs for local communities.<br />

There are already 12 wind farms in the <strong>Eastern</strong><br />

<strong>Cape</strong>. Because of this concentration of facilities, the<br />

South African Wind Energy Association (SAWEA)<br />

chose the province for its first SAWEA Provincial<br />

Community Trust Workshop. With large amounts of<br />

money coming into communities, proper attention<br />

must be paid to who decides how that money is to<br />

be spent and some regional planning is needed.<br />

It does not make sense for each wind farm and its<br />

closest community to plan a school and a crèche<br />

if that is what the neighbouring community is also<br />

planning. Community trusts have been established<br />

as each of the independent power producers must<br />

involve communities living within a 50km radius of<br />

a wind farm.<br />

Brenda Martin, CEO of SAWEA, outlined some of<br />

the issues tackled at the workshops, “We explored a<br />

range of approaches that are applied when establishing<br />

the trusts for the benefit of local communities.<br />

Many of the initiatives are focused on education,<br />

health and the empowerment of women.”<br />

The National Department of Energy has a programme<br />

to attract private investment in renewable<br />

energy, the Renewable Energy Independent Power<br />

Producer Procurement Programme (REIPPPP).<br />

According to figures released by the Department<br />

of Energy, the REIPPPP by 2016 had not only delivered<br />

multiple millions in investments, but also created<br />

more than 30 000 jobs and benefited local community<br />

development to the tune of R256-million.<br />

However, the national utility, Eskom, has created some<br />

uncertainty by refusing to sign new power purchase<br />

agreements.<br />

Although Eskom’s shareholder, the Minister of<br />

Energy, said that the REIPPPP was still government<br />

policy, it was not until 2017 that the process was<br />

started again, but this time with a limit imposed by<br />

the state on how much could be charged for energy<br />

in new contracts.<br />

Fully a quarter of the projects so far approved<br />

in this national programme have been allocated<br />

to the <strong>Eastern</strong> <strong>Cape</strong> with 91% of these being wind<br />

projects and the balance solar photo-voltaic. A vast<br />

new industry has been created in a very short space<br />

of time, and investors still have an appetite for more.<br />

If the power produced through the REIPPPP were<br />

consumed where it is made, the <strong>Eastern</strong> <strong>Cape</strong> would<br />

soon be producing 60% of its own needs (the power<br />

is in fact sent to the national grid for redistribution).<br />

The province consumed 8 358GWh electricity in 2015<br />

or 3.7% of the national total.<br />

The average lead time in the projects that have<br />

so far been approved in the province is two years,<br />

with local content averaging out at about 47%. When<br />

the projects are complete, R142.9-billion will have<br />

been spent on procurement, R65.7-billion of which<br />

will be local.<br />

Wind projects in the province include<br />

Globeleq’s 138MW Jeffreys Bay facility, the 140MW<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Cookhouse project (African Clean Energy<br />

Developments) and two run by Cennergi<br />

at Tsitsikamma (94MW) and Bedford<br />

(134MW). Cennergi is a joint venture between<br />

South African resources company<br />

Exxaro and Indian company Tata Power.<br />

There are several other projects with capacities<br />

ranging from 20MW to 97MW.<br />

Scatec Solar has commissioned a plant<br />

in Burgersdorp. The 75MW plant has panels<br />

mounted on single axes, enabling<br />

them to track the sun and optimise electricity<br />

generation by a further 20%.<br />

The Coega IDZ is working on positioning<br />

itself as a renewable energy<br />

hub. The Department of Trade and<br />

Industry (dti) offers various green<br />

technology incentives.<br />



POWERX has<br />

recently signed<br />

up with AKM<br />

Foods to supply power to all the KFC<br />

outlets in Nelson Mandela Bay. KFC, as<br />

the largest quick service restaurant in<br />

South Africa, has shown huge commitment<br />

to growing the green economy by<br />

making great strides in transforming the<br />

energy landscape in Nelson Mandela Bay.<br />

POWERX has also signed up with<br />

Mondelez to supply power to its head<br />

office and operations in Port Elizabeth.<br />

Mondelez as a global company has<br />

shown dedication to sustainability and<br />

reducing their carbon emissions by consuming<br />

power supplied by POWERX.<br />

POWERX now supplies over 40 national<br />

and local customers in Nelson Mandela<br />

Bay and its aim is to expand the number<br />

of customers supplied exponentially<br />

over the next several years.<br />

17 EASTERN CAPE BUSINESS <strong>2018</strong>

POWERX<br />

Stimulating the use of clean power.<br />

POWERX is the pioneer in the trading of electricity<br />

in South Africa and is supplying various businesses<br />

with “green” power.<br />

POWERX holds a NERSA-issued electricity trading<br />

licence which allows it to buy and sell power generated<br />

from renewable/clean resources, using the national<br />

grid network to facilitate such trade. POWERX<br />

uses the municipal grid network where such agreements<br />

exist with the relevant municipalities.<br />

Renewable Energy Certificates (RECs) provide proof<br />

of origin that the power has been generated from<br />

a renewable resource. This represents additional<br />

value for the customer and shows commitment to<br />

reducing carbon emissions.<br />

POWERX is focused on the end goal of stimulating<br />

the production and consumption of clean power<br />

in South Africa.<br />

As an aggregator, POWERX is able to assume and<br />

actively manage the risks that generators and customers<br />

cannot assume or mitigate themselves.<br />

POWERX currently operates exclusively in Nelson<br />

Mandela Bay Municipality, however we have recently<br />

secured agreements with the Umjindi and Mandini<br />

municipalities which enables us to use their distribution<br />

network to trade in that territory. POWERX is<br />

well advanced in its plan to expand its footprint to<br />

cover more municipal regions across South Africa.<br />


POWERX offers a dynamic value proposition to<br />

municipalities which includes stimulation of the<br />

generation of power within the municipal borders,<br />

boosting local economic development, reduction<br />

in carbon emissions, revenue protection through<br />

active management of embedded generation to<br />

avoid grid defection, and cost avoidance through<br />

reduction in existing ancillary electricity charges.<br />

The procurement of power via POWERX ensures<br />

predictability of annual cost increases and also allows<br />

us to provide a discount on power supplied<br />

to customers depending on their respective tariff<br />

structure.<br />


Physical address: 6th Floor, The Mall Offices, 11<br />

Cradock Ave, Rosebank, Johannesburg,<br />

Telephone: 0861 POWERX (769379)<br />

Email: info@POWERX.energy<br />

Website: http://www.powerx.energy<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />


19<br />

EASTERN CAPE BUSINESS <strong>2018</strong>


International events are driving<br />

the tourism industry<br />

St George’s Park cricket ground is a world leader in lighting.<br />

The <strong>Eastern</strong> <strong>Cape</strong> has superb beaches<br />

and magnificent game parks and nature<br />

reserves. The fact that parks such as the<br />

Addo Elephant National Park are malariafree<br />

at all times is an additional selling point for<br />

foreign visitors.<br />

Port Elizabeth is the end-point of the famous<br />

Garden Route, which extends westwards to <strong>Cape</strong><br />

Town. Golfers in search of the rare pleasures of<br />

links golf have two courses to savour in Port<br />

Elizabeth (Humewood Golf Club) and St Francis<br />

Links, just an hour down the coast.<br />

East London has its own fine beaches and is<br />

the logical starting point for trips to the magical<br />

Wild Coast. The interior of the <strong>Eastern</strong> <strong>Cape</strong> is<br />

home to several high-end private game reserves<br />

such as Shamwari, Mount Camdeboo and Kariega<br />

Game Reserve.<br />

Some luxury game lodges are located within<br />

national parks, such as the Gorah Elephant Camp,<br />

which is run by Hunter Hotels and forms part of<br />

the Addo Park. Luxury brands sometimes create<br />

a chain for their customers, so visitors might<br />

stay at the boutique Summerstand hotel in Port<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Elizabeth, No5 By Mantis, on their way to another<br />

Mantis property, the Oceana Beach and Wildlife<br />

Reserve.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Parks and Tourism Agency<br />

runs 34 provincial nature reserves within the<br />

province. The Addo Elephant National Park is arguably<br />

the province’s greatest attraction and is<br />

under the control of South African National Parks.<br />

Addo extends over 180 000 hectares on land (with<br />

thousands more square metres in the marine reserve)<br />

and attracts more visitors than East Africa’s<br />

Serengeti National Park. Addo uniquely offers visitors<br />

the opportunity to view the Big Seven, as it<br />

has more than 650 elephants, along with the rest<br />

of the Big Five. The park includes a marine section<br />

where great white sharks and whales can be<br />

sighted. The Camdeboo, Mountain Zebra and<br />

Garden Route national parks offer terrains ranging<br />

from dry karoo veld and rolling mountain plateaus<br />

to forests on a rocky coastline.<br />

In addition to all of these natural treasures, the<br />

<strong>Eastern</strong> <strong>Cape</strong> has a strong history and culture offering.<br />

More than a century of interaction between British<br />

colonial forces and Xhosa-speaking groups created<br />

a frontier zone that today is rich in historical interest.<br />

The Mandela Bay Development Agency has<br />

started an initiative in Port Elizabeth that relates<br />

to the struggle against apartheid. Oliver Tambo,<br />

Govan Mbeki, Steve Biko and Winnie Madikizela-<br />

Mandela were among the many <strong>Eastern</strong> <strong>Cape</strong> men<br />

and women who played major roles in that battle.<br />

The MBDA has come up with Route 67, which<br />

consists of 67 public art works symbolising the 67<br />

years spent by Nelson Mandela in the service of<br />

his fellow man. It starts at the Campanile (a tribute<br />

to the 1820 Settlers from Britain) and forms part<br />

of the greater Nelson Mandela Bay Arts Journey.<br />

It passes the Great Flag on the Donkin Reserve.<br />

The famous steam train, the Apple Express,<br />

made a modest comeback in December 2017<br />

when a special train ran along the narrow gauge<br />

between King’s Beach and the Port Elizabeth airport.<br />

Funding was provided by the municipality,<br />

but a lot of hard work was done by volunteers to<br />

get the old train back on track. Re-branded for the<br />

occasion as the Nelson Mandela Bay Steam Train,<br />

the plan is to extend the line to the large regional<br />

shopping centre on the western edge of the city,<br />

Bay West. The railway used to haul fruit to Port<br />

Elizabeth from the Langkloof valley.<br />

King’s Beach is the focus of another important<br />

plan to boost tourism. Transnet National Ports<br />

Authority has confirmed that it will transfer its<br />

manganese export facility at the Port of Port<br />

Elizabeth to the neighbouring Port of Ngqura<br />

by October 2023. The manganese currently lies<br />

in the harbour next to the tourist beach. When<br />

the facility is relocated, there will be a chance to<br />

link the edge of the harbour (which already has<br />

some tourist facilities and a yacht basin) with the<br />

popular beach and so create a waterfront with<br />

restaurants, shops and bars.<br />

Hotels and casinos<br />

South Africa’s large branded hotel groups have a<br />

strong presence in the <strong>Eastern</strong> <strong>Cape</strong> but there are<br />

also groups whose focus is more concentrated on<br />

the province (like the Kat Leisure Group) together<br />

with independent hotels and resorts such as East<br />

London’s Blue Lagoon Hotel and Conference Centre,<br />

located in a prime spot at the mouth of the Nahoon<br />

River.<br />

Kat Leisure Group’s offering extends from<br />

the well-known Kennaway Hotel, which has<br />

been a feature on East London’s beachfront for<br />

many years, to the Queens Casino and Hotel in<br />

Queenstown and accommodation options in the<br />

mountainous interior of Katberg and Hogsback.<br />

Premier Hotels has two hotels in East London<br />

and the Mpanga Private Game Reserve just beyond<br />

the city limits. Premier Hotels also manages<br />

the East London International Convention Centre<br />

which offers 17 conference rooms in various configurations,<br />

boardrooms and an exhibition hall.<br />

Many resorts take advantage of the beautiful<br />

bays and inlets of the <strong>Eastern</strong> <strong>Cape</strong>, both along<br />

the Wild Coast, and nearer to cities, such as the<br />

Mpekweni Beach Resort which is located between<br />

Port Alfred and East London.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Gambling and Betting Board<br />

issues gaming licences and regulates the industry<br />

in the province.<br />

21 EASTERN CAPE BUSINESS <strong>2018</strong>


The Radisson Blu in Port Elizabeth offers fivestar<br />

luxury overlooking Pollock Beach and it is<br />

close to the renowned Humewood Golf Club.<br />

The modern 14-storey building has 173 rooms<br />

and suites.<br />

Sun International has properties on the provincial<br />

border with KwaZulu-Natal (the Wild<br />

Coast Sun Resort and Casino) and the five-star<br />

Boardwalk Casino and Entertainment World in<br />

Port Elizabeth. Located close to the Blue-Flag<br />

Hobie Beach, the Boardwalk has won awards for<br />

excellence for its meetings, exhibitions and special<br />

events. In 2017 Sun International announced<br />

that Fish River Sun and Country Club Resort near<br />

Port Alfred was closing. It is possible that the<br />

resort could be transferred to the state with the<br />

intention that it be transferred to the beneficiaries<br />

of a land claim.<br />

Tsogo Sun has five <strong>Eastern</strong> <strong>Cape</strong> properties.<br />

In East London the four-star Southern Sun<br />

Hemingways is next to the Hemingways Casino<br />

complex and the city has one Garden Court, as<br />

does Mthatha. Port Elizabeth has a Garden Court<br />

and a SUN1, both near Humewood Beach.<br />

City Lodge has one property in East London<br />

and five in Port Elizabeth, across four brands.<br />

Along the beachfront at Summerstand can be<br />

found the Protea Marine, a 173-room Radisson<br />

Blu and the Beach Hotel. The last-named hotel<br />

is run by the Port Elizabeth Hotel Group which<br />

also has in its portfolio Hacklewood Hill Country<br />

House, The Sands @ St Francis and Pumba Private<br />

Game Reserve.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />




Events<br />

The FIFA World Cup hosted by South Africa in 2010<br />

created a surge in the number of foreign visitors to<br />

the country. The <strong>Eastern</strong> <strong>Cape</strong> hosted 260 000 foreign<br />

visitors in that year and the province became a<br />

favoured destination for international travel agents.<br />

In 2017 foreign visitor numbers ticked upwards close<br />

to the 2010 peak, and a focus on events is one of the<br />

reasons for this trend.<br />

Grahamstown hosts the National Arts Festival<br />

every year, an 11-day extravaganza of performance<br />

art, music of every sort, art exhibitions,<br />

film, lectures, craft fairs and workshops. More<br />

than 240 000 people attended the 2015 festival<br />

and a study has put the economic impact of the<br />

festival at R349.9-million.<br />

Port Elizabeth hosts matches in the international<br />

Super Rugby series. The provincial tourism<br />

body calculates the public relations value of the<br />

rugby hosting as R18-million with an “economic<br />

spin off in excess of R150-million”. Port Elizabeth<br />

maintained its reputation for “firsts” when it<br />

hosted South Africa’s first-ever day-night cricket<br />

Test match in 2017. With brand-new lighting of<br />

the latest design, St George’s Park cricket ground<br />

was illuminated to the highest international<br />

standards. The innovative lighting system will<br />

now give events organisers options that never<br />

existed before in terms of lighting shows and<br />

coordinated lighting programmes that can be<br />

tuned to musicians’ needs.<br />

Another major feather in Port Elizabeth’s cap is<br />

the decision by the international <strong>2018</strong> IRONMAN<br />

70.3 World Championship to designate official<br />

qualifier status to an event to be held on the first<br />

two days of September 2008. Hobie Beach will be<br />

the main focus of the event, as it is for the Standard<br />

Bank IRONMAN African Championship which<br />

has been held since 2015. The city held its first<br />

IRONMAN event as far back as 2004. Enthusiastic<br />

crowds of up to 80 000 have been known to line<br />

the route and the event will undoubtedly be a fillip<br />

for the local economy. More than 6 000 athletes are<br />

expected to participate.<br />

Other popular events in Port Elizabeth include<br />

the Herald Cycle Tour and the Ocean Racing Series<br />

(a world championship).<br />

Buffalo City has its own IRONMAN 70.3 triathlon.<br />

In <strong>2018</strong> the 11th running of the event was held<br />

in the last week of January, and East London is<br />

home to several other popular cycling and running<br />

events.<br />


Apple Express: www.appleexpresstrain.co.za<br />

Buffalo City Tourism: www.bctourism.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Gambling and Betting Board:<br />

www.ecgbb.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Parks and Tourism Agency:<br />

www.visiteasterncape.co.za<br />

Mandela Bay Development Agency:<br />

www.mbda.co.za<br />

National Arts Festival: www.nafest.co.za<br />

Nelson Mandela Bay Tourism: www.nmbt.co.za<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />


Maritz Electrical<br />

FOCUS<br />

St George’s Park lighting installation is a world first.<br />

Maritz Electrical, a premier supplier and installer of dedicated<br />

sports lighting, was tasked with erecting a new lighting<br />

system at St George’s Park cricket ground in record time.<br />

This complicated flagship project was completed on time<br />

and on budget and makes South Africa’s oldest Test match ground<br />

the first International Cricket Council-compliant, LED-lit stadium and<br />

the first such stadium to be fitted with theatrics.<br />

Where before the lighting level was 800 Lux, it is now 2000 Lux.<br />

The LED lighting makes for a much brighter light and far more flexible.<br />

No warm-up is required and so the theatrics can be employed at any<br />

time: flashing, chasing and picking out patterns in the lights. With<br />

the possibility of holding light shows before and after events, safety<br />

is improved because crowds will come in early and linger later. LED<br />

technology also reduces consumption significantly.<br />

St George’s Park Cricket Ground.<br />

St George’s Park, Port Elizabeth’s famous ground, was the site of the<br />

first-ever Test match to be played on South African soil, back in March<br />

1889. Over four days in December 2017, the ground celebrated another<br />

landmark – South Africa hosted Zimbabwe in the first-ever day-night<br />

Test match. The R27-million contract was completed on time and on<br />

budget by a team from Maritz Electrical led by Warren Williams. Two<br />

project managers from Musco Lighting, the supplier, supported the<br />

installation. The lights on top of the Duck Pond Pavilion were hoisted<br />

at night, the process being illuminated by floodlight.<br />

Maritz Electrical<br />

Maritz has installed lighting systems<br />

at a number of schools,<br />

universities, multi-sports stadia,<br />

including a recent big project<br />

for the Mangaung Metropolitan<br />

Municipality, the Kaizer Sebothelo<br />

Stadium.<br />

Maritz Electrical has an internationally<br />

compliant management<br />

system in place. Musco (leading<br />

supplier of electrical sports lights)<br />

is one of our established relationships<br />

that allows us to provide<br />

products of a similar quality to<br />

that of Twickenham Stadium and<br />

Arsenal’s Emirates Stadium.<br />

We work closely with our customers,<br />

ensuring that the task<br />

or project is completed on time<br />

and on budget, using the highest<br />

quality products available.<br />

We specialise in all residential<br />

and commercial areas of electrical<br />

installation and maintenance.<br />

Our electrical services include<br />

project management, design,<br />

supply, installation, testing plus<br />

commissioning and maintenance<br />

of electrical systems.<br />


7 Wetton Road, Kenilworth,<br />

<strong>Cape</strong> Town, 7800<br />

Tel: +27 21 703 0867<br />

Fax: +27 21 703 0868<br />

Cell: 071 364 7354<br />

Email:<br />

info@maritzelectrical.co.za<br />

Website:<br />

www.maritzelectrical.co.za<br />

25 EASTERN CAPE BUSINESS <strong>2018</strong>


The Nelson<br />

Mandela Bay<br />

<strong>Business</strong> Chamber<br />

The heartbeat of business success in the region.<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber is a<br />

Not for Profit Company representative of a broad<br />

spectrum of businesses in Nelson Mandela Bay. It<br />

is one of the largest business associations in the<br />

<strong>Eastern</strong> <strong>Cape</strong>, with a membership of more than<br />

700 businesses employing over 100 000 people in<br />

a diverse array of sectors.<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber is<br />

a leading catalyst for economic development. In<br />

the new strategic direction of <strong>2018</strong>, the <strong>Business</strong><br />

Chamber will be driving the Triple Helix concept<br />

of building relationship between the universityindustry-government<br />

as the foundation of creating<br />

a competitive Nelson Mandela Bay.<br />

The <strong>Business</strong> Chamber has been the heartbeat<br />

of business success in the region for over 150 years.<br />

The <strong>Business</strong> Chamber is driven by a team of dedicated<br />

staff and volunteers, lobbying on issues affecting<br />

the ease of doing business and companies’<br />

sustainability. The <strong>Business</strong> Chamber also builds in<br />

international relations to form a vital link between<br />

business owners and international markets.<br />

Vision<br />

To be a leading catalyst for economic development<br />

in Nelson Mandela Bay.<br />

Mission<br />

By influencing the factors and key stakeholders<br />

that create a competitive enabling business<br />

environment.<br />

Task Teams<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber has established<br />

a structure of seven task teams to facilitate<br />

the ease of doing business.<br />

The seven task teams of the Nelson Mandela Bay<br />

<strong>Business</strong> Chamber are:<br />

• Water Task Team<br />

• Roads and Storm Water Task Team<br />

• Electricity and Energy Task Team<br />

• Transport and Logistics Task Team<br />

• SME Task Team<br />

• Metro Collaboration Task Team<br />

• Trade and Investment Task Team<br />

Enterprise Development & SMME<br />

Support<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber Enterprise<br />

Development Programme was launched in 2014,<br />

to develop the skills that enhance and grow small<br />

businesses. In 2017 the <strong>Business</strong> Chamber successfully<br />

hosted Phase 3 and Phase 4 of the Enterprise<br />

Development Programme. Close to 100 SMEs (small<br />

to medium-sized enterprises) benefited from taking<br />

part in the different phases of the programme.<br />

In 2017 the <strong>Business</strong> Chamber finalised the launch of<br />

a pilot phase of the Export Development Programme<br />

which is set to commence in March <strong>2018</strong> for multisectoral<br />

SMMEs positioning themselves as emerging<br />

exporters. The programme is unique because of its<br />

integrated approach to the development of these<br />

emerging exporters. In addition, the SME Task Team<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



has launched a Pro Bono Service Programme which<br />

entails the pairing of qualifying SMEs with service<br />

provider/s, who are volunteer members of the<br />

organisation. This programme will continue in <strong>2018</strong>.<br />

Events<br />

Events at the Nelson Mandela Bay <strong>Business</strong> Chamber<br />

keep business owners up to date and informed on a<br />

wide variety of topics affecting business in Nelson<br />

Mandela Bay. Regular networking functions offer business<br />

owners the chance to make new professional<br />

contacts. The <strong>Business</strong> Chamber’s flagship events –<br />

the Annual <strong>Business</strong> Chamber Golf Day, the Annual<br />

Ladies’ Breakfast and the Annual <strong>Business</strong> Chamber<br />

Banquet – are highlights on the Bay’s business and<br />

social calendar. The Events Department reached a<br />

new record in 2017 by hosting a total of 91 events.<br />

Publications and marketing<br />

As another value-added service to members, the<br />

Nelson Mandela Bay <strong>Business</strong> Chamber provides<br />

members with a variety of publications across print<br />

and electronic platforms, including our quarterly<br />

printed member magazine, Infocom, and the printed<br />

annual <strong>Business</strong> Guide. Both of these publications are<br />

ABC-certified, glossy publications.<br />

The electronic monthly newsletter The Good<br />

News provides links to good news on the local business<br />

front. The <strong>Business</strong> Chamber regularly updates<br />

its website, and can be found on popular social media<br />

platforms including Facebook, Twitter, LinkedIn<br />

and Instagram.<br />

In 2017 the <strong>Business</strong> Chamber also launched the<br />

NMBBC App: a digital, interactive platform for business<br />

to business promotion in Nelson Mandela Bay<br />

and surrounding areas. A key feature of the App is a<br />

business directory, which connects users with businesses<br />

in the region, who are members of the Nelson<br />

Mandela Bay <strong>Business</strong> Chamber.<br />

To download the App, please search NMBBC on the<br />

AppStore or PlayStore.<br />

Certificates of Origin<br />

A Certificate of Origin is a document which states<br />

the origin of goods being exported and this “origin”<br />

is a key requirement for applying tariffs and other<br />

important criteria. As an accredited provider of this<br />

service, the Nelson Mandela Bay <strong>Business</strong> Chamber<br />

signs Certificates of Origin for member and nonmember<br />

businesses requiring the services in Nelson<br />

Mandela Bay. The Certificates of Origin Department<br />

reached a record in August 2017 when it issued the<br />

most monthly certificates it has ever completed over<br />

the past six years of recordings. This was up 22% from<br />

August 2016.<br />

Corporate Social Investment<br />

Because the majority of our membership’s workforce<br />

is based in the city, the region of Nelson<br />

Mandela Bay is the direct beneficiary of their<br />

Corporate Social Investment programmes – including<br />

skills development initiatives, bursaries<br />

and scholarships. Many of our member companies<br />

significantly contribute to alleviating poverty and<br />

specifically unemployment in the region of Nelson<br />

Mandela Bay through various initiatives purposed<br />

to grow the local economy. Every year the <strong>Business</strong><br />

Chamber adopts NGO organisations and collects<br />

goods and services from our member companies<br />

in order to create awareness around the NGOs. In<br />

2017 the <strong>Business</strong> Chamber adopted SOS Children’s<br />

Village Port Elizabeth and St Francis Hospice and<br />

collected several items from our companies, including<br />

furniture and vehicles.<br />


Address: KPMG House, Norvic Drive,<br />

Greenacres 6045<br />

Tel: +27 (0)41 373 1122<br />

Fax: +27 (0)41 373 1142<br />

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

Website: www.nmbbusinesschamber.co.za<br />

27 EASTERN CAPE BUSINESS <strong>2018</strong>


Border-Kei Chamber of <strong>Business</strong> provides key services to over 700<br />

member organisations, and aims to be the “voice of business” in the area.<br />

Value proposition<br />

To be the “voice of business” promoting an<br />

environment for growth and sustainability through<br />

maintaining strong, proactive relations with both<br />

internal and external stakeholders, including<br />

provincial and local government, member<br />

companies, other business organisations and<br />

organised labour.<br />

Geographic areas of operation<br />

Border-Kei Chamber of <strong>Business</strong> (BKCOB) has offices<br />

in East London and Queenstown which serve the<br />

greater Border-Kei region.<br />

Services and benefits to members<br />

BKCOB offers the following key services:<br />

Member listing – After joining, members receive<br />

the member listing as part of their package.<br />

• Border-Kei Chamber of <strong>Business</strong> Membership<br />

Certificate.<br />

• New members’ induction and networking functions<br />

– The chamber holds six new members’ induction<br />

and networking functions annually, and<br />

these provide a valuable informal but structured<br />

opportunity to meet a broad range of<br />

businesspeople.<br />

• Letters of support – The chamber provides<br />

letters of support to members trying to<br />

access government tenders, and letters of<br />

introduction for members attempting to<br />

expand their business footprint.<br />

• <strong>Business</strong> Hi-Lite Magazine – This glossy B2B<br />

magazine is produced quarterly adding<br />

relevant topics and information/news of<br />

what’s happening. It also features chamber<br />

activities and developments in the area.<br />

• Trade & Information desk – Chamber is geared<br />

to provide information on almost any matter<br />

or topic. We also liaise with a number of<br />

Embassies and Trade Consuls to seek business<br />

and trade opportunities.<br />

• Investbuffalocity.com – A collaborative initiative<br />

where members can find various economic<br />

information on Buffalo City. It provides a<br />

platform to attract international investors, as<br />

well as provide exposure for local companies.<br />

• Committees – The chamber has a robust and<br />

effective committee structure to facilitate<br />

members’ participation, and to enable the<br />

chamber to fulfil its role as the “voice of business”.<br />

Over 120 voluntary business professionals<br />

participate.<br />

Turnover<br />

BKCOB represents over 650 member organisations that<br />

generate an estimated annual turnover of R73-billion,<br />

and that employ some 58 000 people who earn an<br />

estimated annual income of R19-billion in total.<br />


Executive Director: Les Holbrook<br />

Head of Communications: Candi Ferreira<br />

Tel: +27 43 743 8438 | Fax: +27 43 748 1507<br />

Email: info@bkcob.co.za or<br />

communications@bkcob.co.za<br />

Physical address: Chamber House, The Hub,<br />

Beacon Bay, Bonza Bay Road, East London<br />

Website: www.bkcob.co.za<br />

Contact: Jacqui Austin at<br />

members@bkcob.co.za or 043 743 8438.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />


Promoting business<br />

in the region<br />

Les Holbrook, Executive Director of the Border-Kei<br />

Chamber of <strong>Business</strong> (BKCOB), highlights the reasons that<br />

investors should look no further than the <strong>Eastern</strong> <strong>Cape</strong>.<br />


What are some of the Chamber highlights for the past year?<br />

The Chamber tackles many and varied projects and focusses primarily<br />

on areas where the focus is on the cost and ease of doing business.<br />

Two years ago we handed back to Provincial Treasury a pilot project<br />

titled Buy <strong>Eastern</strong> <strong>Cape</strong>. The Chamber plans to revive this initiative to<br />

mitigate the loss of opportunities pouring out of the province. Strategic<br />

steps will now be taken to increase the procurement for enterprises<br />

located within the province.<br />

Our lobbying in favour of renewable energy saw the Chamber focus<br />

on “Greening our Office.” After eight months of intense capacity building,<br />

our office in East London is now the only Chamber of Commerce<br />

and Industry in South Africa that qualifies to be listed as Green.<br />

INVEST BUFFALO CITY, our flagship project, signed MOUs with<br />

four stakeholders in our region, committing to initiatives that focus<br />

on inward investment and on retaining existing investment – on the<br />

principle of Invest, Work, Live & Play. An associated project to the IBC<br />

project is A Call-2-Action, an initiative where business partners with<br />

the municipality towards a Clean & Green City, underpinned by waste<br />

recycling. Following on from the very first Maritime Summit held in the<br />

Metro, business and the Metro have partnered with TNPA to construct<br />

a new Growth and Expansion plan to turn the ‘tired’ Port around. We<br />

also have a forum to promote opportunities in the Blue Economy.<br />

Why should investors consider the <strong>Eastern</strong> <strong>Cape</strong>?<br />

Buffalo City is equidistant from Gauteng and the Western <strong>Cape</strong>, with<br />

good logistics and competitive costs, offering air, road and sea connectivity,<br />

all reasons for a successful and vibrant East London Industrial<br />

Development Zone. This is supported by the most moderate climate<br />

all year round, a productive coastline, and a lifestyle supported by the<br />

15-minute city. With the first automotive tertiary training academy and<br />

artisan development, skills in the manufacturing sector are adequately<br />

supported. This includes the best and most efficient IDZ in SA, that is<br />

ISO rated and has world-class infrastructure that includes a Science<br />

and Technology Park.<br />

What is the biggest challenge for regional business?<br />

Municipal services and infrastructure maintenance. Buffalo City<br />

Municipality is spending hundreds of millions on a very old infrastructure.<br />

However, great strides have been made and the future<br />

looks very positive.<br />

Les Holbrook<br />


Les Holbrook has a National<br />

Technical Certificate as well as<br />

a Certificate in Management<br />

from Rhodes University. Prior to<br />

his appointment as the Executive<br />

Director of the Border-Kei<br />

Chamber of <strong>Business</strong>, he was<br />

the Deputy General Manager<br />

of Beier Industries of Transkei<br />

and Executive Director of the<br />

Transkei Chamber of Industries.<br />

29 EASTERN CAPE BUSINESS <strong>2018</strong>


A financial partner that<br />

understands your aspirations<br />

Lonwabo Daniels, Nedbank Provincial General Manager<br />

for <strong>Eastern</strong> <strong>Cape</strong>, explains how Nedbank can help<br />

business owners in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

solutions and a banking experience that is<br />

hassle-free. This allows you to concentrate on<br />

what’s most important to you – running your<br />

business,’ says Daniels.<br />

Nedbank leverages its strong market positioning<br />

with businesses and the public sector,<br />

encouraging them to bank their employees<br />

through its innovative Workplace Banking<br />

offering for employees.<br />

There is good news for <strong>Eastern</strong> <strong>Cape</strong><br />

business owners and entrepreneurs<br />

seeking a unique banking experience:<br />

Nedbank <strong>Business</strong> Banking has 27<br />

business managers located across the<br />

province specialising in commercial<br />

industries as well as the agricultural<br />

sector.<br />

Nedbank also continues to build on its clientcentred<br />

strategy aimed at delivering distinctive<br />

experiences and channels of choice for<br />

businesses and clients in the <strong>Eastern</strong> <strong>Cape</strong>. This<br />

has seen the bank simplify and enhance its<br />

product offering in line with its value-added<br />

banking philosophy based on simplicity,<br />

transparency and affordability. Innovation and<br />

technological advancements, as well as training<br />

and development of staff, have been key in<br />

achieving the bank’s objectives.<br />

They are ready to assist you with professional<br />

advice, industry-specific solutions and a<br />

comprehensive range of financial products<br />

and services. ‘At Nedbank <strong>Business</strong> Banking we<br />

believe that you need a financial partner who<br />

not only understands your circumstances and<br />

aspirations, but also provides you with relevant<br />

Should you be interested in taking your<br />

business to the next level and improving staff<br />

engagement, and for more information about<br />

Nedbank’s specialised service offering, please call<br />

the <strong>Business</strong> Banking team on +27 (0)41 393 5969<br />

or visit www.nedbank.co.za.


Innovation key pillar in meeting client needs<br />

Emile Bester, Nedbank Provincial Sales Manager, Client Network,<br />

explains how Nedbank works with communities to deliver banking<br />

solutions.<br />

winning Nedbank App Suite, the home loans<br />

online digital channel and Market Edge,<br />

as well as the ‘Branch of the Future’ concept<br />

in communities both locally and nationally.<br />

‘Working with communities is entrenched in our<br />

values. At the core of Nedbank’s offering in the<br />

<strong>Eastern</strong> <strong>Cape</strong> is a relationship-based model with<br />

a business manager dedicated to your business<br />

as the key point of entry to the bank. And we<br />

encourage you to see money differently with<br />

Whole-view <strong>Business</strong> Banking’ says Bester.<br />

Nedbank continues to build on its clientcentred<br />

strategy aimed at delivering<br />

distinctive experiences and channels<br />

of choice for businesses and clients<br />

in the <strong>Eastern</strong> <strong>Cape</strong>. This has seen the<br />

bank simplify and enhance its product<br />

offering in line with its value-added<br />

banking philosophy based on simplicity,<br />

transparency and affordability.<br />

Innovation and technological<br />

advancements, as well as training and<br />

development of staff, have been key in<br />

achieving the bank’s objectives.<br />

Since 2012 Nedbank has launched several<br />

first-to-market innovations, such as the award-<br />

What does this mean for the client? Whole-view<br />

<strong>Business</strong> Banking is an additional benefit of<br />

Nedbank <strong>Business</strong> Banking and means that your<br />

business and your personal financial needs are<br />

managed in one place. ‘Because business owners<br />

and their businesses are very often financially<br />

dependent on each other, our client service<br />

teams now also offer individual banking solutions<br />

to you and your staff because we already know<br />

and understand your needs,’ says Bester.<br />

Should you be interested in taking your<br />

business to the next level and improving staff<br />

engagement, and for more information about<br />

Nedbank’s specialised service offering, please call<br />

the <strong>Business</strong> Banking team on +27 (0)41 393 5969<br />

or visit www.nedbank.co.za.


Solutions for small business aimed at<br />

creating jobs and growing the economy<br />

Nedbank’s Regional Manager of Small <strong>Business</strong> Services, Andisa<br />

Sikwebu, explains how Nedbank is committed to partnering with<br />

businesses for growth.<br />

enterprises. For example, the Small <strong>Business</strong><br />

Friday initiative, in association with the National<br />

Small <strong>Business</strong> Chamber, seeks to encourage<br />

everyone in South Africa to rally behind and<br />

support small businesses. The initiative calls on<br />

everyone to make a conscious decision to vote<br />

for small businesses through their hearts, feet<br />

and wallets; not only on Small <strong>Business</strong> Friday,<br />

but every day.<br />

‘Small businesses are the mainstay of the<br />

economy. Nedbank has, over the years,<br />

instituted various interventions aimed<br />

at giving support to the small-business<br />

sector. Over and above our smallbusiness<br />

services solutions, we provide<br />

small-business owners with support<br />

that goes beyond banking – freeing up<br />

their time to truly focus on running their<br />

businesses,’ says Sikwebu.<br />

Nedbank has built a solid reputation as a bank<br />

for small businesses through initiatives such as<br />

Small <strong>Business</strong> Friday, free small-business<br />

seminars and the SimplyBiz.co.za platform –<br />

all geared to support small- and medium-sized<br />

SimplyBiz.co.za is a free-to-join networking<br />

portal designed especially for small businesses.<br />

It helps small businesses improve their business<br />

administration skills, keep up with the latest<br />

trends, network with other small businesses and<br />

share ideas.<br />

Nedbank experts are available to provide all the<br />

support you need when starting off. Nedbank<br />

offers simple, affordable banking solutions<br />

and value-added services (including an<br />

easy online business registration and account<br />

opening process) to get you and your business<br />

going.<br />

Should you wish to tap into our smallbusiness<br />

expertise to reach your business<br />

goals, get in touch with Nedbank’s Small<br />

<strong>Business</strong> Services. Call Andisa Sikwebu<br />

on +27 (0)41 398 8188 or send an email to<br />



See money differently with Whole-view <strong>Business</strong><br />

Banking from Nedbank<br />

Money expert Sylvester Funani, Regional Manager of Retail and <strong>Business</strong><br />

Banking in Mthatha, explains how new brand values build on the bank’s<br />

expertise to benefit its clients.<br />

Banking experts aim to provide clients with<br />

unique business and financial solutions. ‘It<br />

forms part of our purpose at Nedbank to use our<br />

financial expertise to do good for individuals,<br />

families, businesses and society,’ says Funani. ‘At<br />

Nedbank Retail and <strong>Business</strong> Banking we believe<br />

you need a financial partner who has a deeper<br />

understanding of your business – someone who<br />

offers innovative, relevant solutions and who<br />

gives you a banking experience that is hasslefree.<br />

Operating from offices at Nedbank<br />

Mthatha Plaza Branch, Nedbank Retail<br />

and <strong>Business</strong> Banking now has several<br />

business managers available under one<br />

roof in Mthatha.<br />

Well-known music personality Funani has been<br />

with Nedbank for 12 years and has worked in a<br />

number of roles. He prides himself on building<br />

relationships and understanding the needs of<br />

clients, saying that partnership- and relationshipbased<br />

banking is a key driver of how Nedbank<br />

conducts its business to ensure clients benefit<br />

from its money expertise.<br />

He and his team of Retail and <strong>Business</strong><br />

‘We look forward to continuing our relationships<br />

with our valued existing clients, and to offering<br />

our value proposition to new clients as well.<br />

At the core of our offering in Mthatha is a<br />

relationship-based model with a business<br />

manager dedicated to your business as your key<br />

point of entry to the bank. And we encourage<br />

you to see money differently with Whole-view<br />

<strong>Business</strong> Banking from Nedbank, as well as to<br />

take advantage of our one-stop banking service<br />

at Mthatha Plaza Branch,’ says Funani.<br />

To take your business to the next level or<br />

to get more information about Nedbank’s<br />

specialised service offering call Sylvester<br />

Funani on +27 (0)83 569 2326, send an email<br />

to sylvesterf@nedbank.co.za or visit<br />



Relationship-based banking aimed at supporting<br />

clients in East London and surrounds<br />

Money expert Sandy Pelser, Regional Manager of Retail and <strong>Business</strong><br />

Banking East London and Surrounds, explains how new brand values<br />

build on the bank’s expertise to benefit its clients.<br />

business to ensure clients benefit from its money<br />

expertise.<br />

Nedbank recognises that you have a full range<br />

of banking needs that go beyond transaction<br />

and borrowing. That is why their dedicated<br />

team of specialists partners with you to give<br />

you a bird’s-eye view of your business and a<br />

different perspective on how your money needs<br />

to flow to meet your goals.<br />

Operating from its offices at Cedar<br />

Square, Nedbank Retail and <strong>Business</strong><br />

Banking, East London and Surrounds<br />

now has several business managers<br />

available under one roof. Sandy Pelser<br />

says her team is ready to assist clients<br />

with professional advice, industryspecific<br />

solutions and a comprehensive<br />

range of financial products and services.<br />

‘We look forward to continuing our relationships<br />

with our valued existing clients, and to offering<br />

our value proposition to new clients as well.<br />

At the core of our offering in East London,<br />

Queenstown, King William’s Town, Mdantsane<br />

and Port Alfred is a relationship-based model<br />

with a business manager dedicated to your<br />

business as your key point of entry to the bank.<br />

And we encourage you to see money differently<br />

with Whole-view <strong>Business</strong> Banking from<br />

Nedbank, as well as to take advantage of our<br />

one-stop banking service in East London, says<br />

Pelser.<br />

Pelser has been with Nedbank for 31 years<br />

and has worked in a number of roles. She<br />

prides herself in building relationships and<br />

understanding the needs of clients, saying that<br />

partnership- and relationship-based banking<br />

is a key driver of how Nedbank conducts its<br />

To take your business to the next level or<br />

to get more information about Nedbank’s<br />

specialised service offering, call Sandy Pelser<br />

on +27 (0)83 628 9897, send an email to<br />

sandyp@nedbank.co.za or visit<br />



Using financial expertise to do good with<br />

professional advice and solutions<br />

Money expert Jordaan Roelofse, Regional Manager of Retail and<br />

<strong>Business</strong> Banking, Port Elizabeth and Surrounds, explains how new<br />

brand values build on the bank’s expertise to benefit its clients.<br />

is a key driver of how Nedbank conducts its<br />

business to ensure clients benefit from its money<br />

expertise.<br />

He and his team of Retail and <strong>Business</strong><br />

Banking experts aim to provide clients with<br />

unique business and financial solutions. ‘It<br />

forms part of our purpose at Nedbank to use our<br />

financial expertise to do good for individuals,<br />

families, businesses and society,’ says Roelofse.<br />

Operating from its offices at 270 <strong>Cape</strong><br />

Road, Nedbank Retail and <strong>Business</strong><br />

Banking, Port Elizabeth and Surrounds,<br />

now has several business managers<br />

available under one roof. Jordaan<br />

Roelofse says his team is ready to<br />

assist clients with professional advice,<br />

industry-specific solutions and a<br />

comprehensive range of financial<br />

products and services.<br />

Roelofse has been with Nedbank for 21 years<br />

and has worked in a number of roles. He<br />

prides himself on building relationships and<br />

understanding the needs of clients, saying that<br />

partnership- and relationship-based banking<br />

We look forward to continuing our relationships<br />

with our valued existing clients, and to offering<br />

our value proposition to new clients as well.<br />

At the core of our offering in the <strong>Eastern</strong> <strong>Cape</strong><br />

is a relationship-based model with a business<br />

manager dedicated to your business as your key<br />

point of entry to the bank. And we encourage<br />

you to see money differently with Whole-view<br />

<strong>Business</strong> Banking from Nedbank, as well as to<br />

take advantage of our one-stop banking service<br />

at 270 <strong>Cape</strong> Road,’ says Roelofse.<br />

To take your business to the next level or to<br />

obtain more information about Nedbank’s<br />

specialised service offering, call Jordaan<br />

Roelofse on +27 (0)83 627 2210, send an email to<br />

jordaanr@nedbank.co.za or visit<br />

www.nedbank.co.za.<br />

Nedbank Ltd Reg Nedbank No 1951/000009/06. Ltd Reg No 1951/000009/06<br />

Authorised financial<br />

Authorised financial services services and registered and registered credit provider credit (NCRCP16).<br />

provider (NCRCP16).




Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling<br />

positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span<br />

investment, life assurance, asset management, banking, healthcare and general insurance.<br />

To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership<br />

boards in each province to serve as links between the province and our business. These Provincial Management<br />

Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a<br />

positive impact on the future of this province and its people.<br />


Chairperson of the <strong>Eastern</strong> <strong>Cape</strong> Provincial Management Board<br />

“ As a member of Old Mutual’s Provincial Management Board,<br />

I would like to promote teamwork and better relations along<br />

all Old Mutual businesses in the <strong>Eastern</strong> <strong>Cape</strong>.”<br />

As the <strong>Eastern</strong> <strong>Cape</strong> PMB Chairperson I undertake to:<br />

1. Establish good collaboration and synergies among all business units.<br />

2. Through the board build and maintain strong business relationships with the Provincial Leadership in<br />

both business, labour and public sectors.<br />

3. Articulate our good story regarding our responsible business initiative to the leadership in the province.<br />

GET IN TOUCH: email <strong>Eastern</strong><strong>Cape</strong>PMB@oldmutual.com<br />


Old Mutual is a Licensed Financial Services Provider



As custodians of the savings and<br />

investments of millions of South<br />

Africans, we know that ADVICE<br />

MATTERS when making financial<br />

decisions.<br />

How to choose the right financial adviser<br />

A good financial adviser is a professional who<br />

considers all your financial needs and goals, and has<br />

the knowledge, experience and support to give you<br />

Advice That Matters.<br />

1. Ask to see the adviser’s training credentials and FAIS<br />

accreditation.<br />

2. Choose a financial adviser who represents a<br />

respected financial institution.<br />

3. Look for a financial adviser who has access to a<br />

range of specialist support services.<br />



Old Mutual Corporate provides<br />

industry-leading retirement fund<br />

solutions, pre- and post-retirement<br />

investments, group death, disability,<br />

critical illness and funeral cover<br />

as well as financial education and<br />

consulting services to a broad range<br />

of public and private businesses and<br />

institutions, from small businesses to<br />

large corporates.<br />

This can also be accessed via<br />

Old Mutual SuperFund, which provides a comprehensive<br />

employee benefit solution that is flexible enough to meet<br />

the needs of all types of businesses and their employees.<br />



The Old Mutual Mass Foundation Cluster (MFC) has an<br />

integrated approach to financial services and offers<br />

customers solutions to meet their needs. This spans a<br />

transactional account called the Old Mutual Money<br />

Account, savings products, life and disability cover, as<br />

well as funeral cover, debt management solutions and<br />

short-term insurance. Our aim is to<br />

help our customers manage their<br />

finances and to plan and provide<br />

a better future for themselves and<br />

their loved ones.<br />


Old Mutual iWYZE offers affordable and reliable<br />

insurance cover to protect everything you’ve worked<br />

for. The wide range includes car insurance, home<br />

insurance as well as value-added products<br />

such as iWYZE Scratch<br />

& Dent and iWYZE<br />

Tyre & Rim Cover.<br />

iWYZE, the wise<br />

insurance choice.<br />


With Old Mutual’s range of<br />

Funeral Plans (Care, Standard and<br />

Comprehensive+) customers can cover<br />

themselves, their spouse/partner,<br />

children, parents, parents-in-law and<br />

extended family members. We also<br />

have a plan for single parents to<br />

cover themselves and their dependent<br />

children without having to pay for a spouse they do not<br />

have.<br />

You can choose the amount of cover you need, who<br />

you’d like to cover and whether you’d like to add<br />

additional benefits. You can get funeral cover for up to<br />

R70 000.<br />



To make it easy for customers to<br />

save from as little as R170 a month,<br />

Old Mutual offers the innovative<br />


This product with its two pockets allows customers<br />

to save for their long-term goals, like their children’s<br />

tertiary education, while they have access to their funds<br />

in emergencies.



Old Mutual Personal Finance specialises in providing<br />

holistic financial planning - Advice That Matters. We<br />

offer a wide range of wealth creation and protection<br />

products. For example:<br />

The Old Mutual Invest Tax-Free Savings Plan, which<br />

offers a low, entry-level premium and refunds you 50%<br />

of admin charges when you reach your maximum<br />

premium limit in a year.<br />


Old Mutual Personal Finance marketleading<br />

risk protection range offers<br />

the most comprehensive illness range<br />

with clear claim definitions, including<br />




Old Mutual Insure are experts in<br />

agriculture, engineering and marine<br />

insurance. We offer a range of insurance solutions to<br />

protect your business against everything from fire and<br />

theft to business interruption and legal liability costs.<br />



Through Old Mutual Finance you can gain access to:<br />

• My Money Plan, which enables<br />

you to consolidate your debt, and<br />

choose from a range of personal<br />

loans at a fixed interest rate.<br />

• Money Account, which links a transactional (SWIPE)<br />

account and an investment (SAVE) account so you<br />

automatically invest a set amount into a unit trust<br />

every time you make a purchase with your card.<br />

*(In association with Bidvest Bank Ltd)<br />


Old Mutual Wealth is a fully integrated, adviceled<br />

wealth management business. We have a<br />

personalised and integrated approach to grow and<br />

preserve your wealth over time. Our<br />

specialist capabilities include Private<br />

Client Securities, Old Mutual Multi-<br />

Managers, Fiduciary Services and<br />

Offshore Investing.<br />

We partner with leading financial planners to provide<br />

you with a tailored lifetime wealth plan to help you<br />

achieve the best outcome in line with your objectives,<br />

goals and aspirations.<br />



Old Mutual is deeply committed<br />

to playing a significant role in building<br />

a strong and financially inclusive<br />

South Africa.<br />

As a responsible business committed to caring for our<br />

communities, the Old Mutual Foundation addresses<br />

socio-economic challenges through investing in:<br />

• Small business development and entrepreneurship<br />

• Youth unemployment through skills training<br />

• Strategic education initiatives<br />

• Caring for vulnerable communities<br />

In 2016 alone the Old Mutual Foundation invested<br />

R25 686 172 in various community projects across our<br />

nation (actual grant funding payments made during<br />

2016).<br />

In the <strong>Eastern</strong> <strong>Cape</strong> the Old Mutual Foundation<br />

invested a total of R3 536 025 across its various<br />

community empowering portfolios in the region.<br />

Our staff are the hearts and hands of Old Mutual<br />

in the communities we operate in, and we support<br />

our staff volunteers through various programmes.<br />

In the <strong>Eastern</strong> <strong>Cape</strong> province, 52 organisations<br />

have received a total R770 500 as a result of staff<br />

volunteering efforts.<br />


ombds 7.2017 L10479.10<br />

Old Mutual is a Licensed Financial Services Provider



Incapeace Trading is a 100% black-owned business operating in Libode, on<br />

the outskirts of Mthatha. This manufacturing business, started by entrepreneur<br />

Anele Peti, will produce bricks and cement blocks to meet the growing demands<br />

of the local construction industry. The impact of Old Mutual’s funding will help<br />

to create around 27 jobs. In addition, local community members will benefit<br />

through a community trust that is being set up by the business, to provide a<br />

range of services.<br />

Old Mutual Foundation grant: R822 645<br />

Masisizane loan:<br />

R4.1 million<br />

The MASISIZANE FUND focuses on enterprise<br />

development and job creation to help alleviate poverty<br />

and improve food security in South Africa. This is<br />

achieved through encouraging entrepreneurship and<br />

capacity development and financing of micro, small<br />

and medium enterprises (SMMEs). Preference is given<br />

to SMMEs with 51% plus ownership by women, youth<br />

or people with disabilities.<br />

Masisizane Fund disbursed R147m worth of funds<br />

in 2016 through soft loans in the three high-impact<br />

sectors and facilitated the creation of 862 jobs against<br />

a target of 625 jobs.<br />

In the <strong>Eastern</strong> <strong>Cape</strong>, Masisizane disbursed funds of<br />

R28 518 891 to five clients which created 234 new jobs.<br />



WP Timbers (Pty) Ltd<br />

WP Timbers manufactures timber doors and window<br />

frames. The entity’s main market is to retail outlets and<br />

supplies its products to the following major customers –<br />

CashBuild, Buffalo Timber and Penny Pinchers.<br />

Thabo Sikukula (the client) purchased 100% of the<br />

enterprise from the sellers Mrs Kotze, 70% and<br />

Mr Heidtmann, 30%. Thabo gained entrepreneurial<br />

experience through other enterprises that he started<br />

and managed. However, those businesses placed a lot<br />

of reliance on government for market access.<br />

Masisizane provided a fund loan amount of R3.75m,<br />

SEFA a loan amount of R5m, and Old Mutual Foundation<br />

provided a R1.5m grant amount which in turn facilitated<br />

the facilitation of 145 new and retained jobs.<br />



Financial education is the gateway to financial<br />

inclusion. The Old Mutual Financial Wellbeing<br />

programme promotes financial literacy and awareness<br />

across market segments in line with the Financial Sector<br />

Charter. We offer highly effective financial education<br />

and support programmes to help South Africans take<br />

control of their finances.<br />

Between 2007 and end of 2016 more than 589 808<br />

people were reached through face-to-face workshops<br />

held for communities as well as employees in the public<br />

and private sector.<br />

In 2016 more than 88 000 individuals participated in<br />

our On the Money workshops nationally, with 24 674<br />

participating in our Fin360 programmes.<br />

In the <strong>Eastern</strong> <strong>Cape</strong> 12 910 individuals were trained<br />

in our Old Mutual On the Money financial education<br />

programme and 2 240 were trained in our Fin360<br />

financial education programme.<br />

For more information, contact Vuyisile<br />

Koko at <strong>Eastern</strong><strong>Cape</strong>PMB@oldmutual.com


Overviews of the main economic<br />

sectors of the <strong>Eastern</strong> <strong>Cape</strong><br />

Agriculture 40<br />

Forestry 44<br />

Aquaculture 45<br />

Agriprocessing 46<br />

Manufacturing 48<br />

Automotive and components 50<br />

Water 52<br />

Education and training 54<br />

Banking and financial services 56<br />

Development finance and SMME support 58


Agriculture<br />

The <strong>Eastern</strong> <strong>Cape</strong> is South Africa’s top livestock provider.<br />

Rural Enterprise Development (RED) hubs are a key plank<br />

in the strategy of the <strong>Eastern</strong> <strong>Cape</strong> Department of Rural<br />

Development and Agrarian Reform (DRDAR) to promote<br />

food security and employment creation. Small-scale farmers<br />

are supplied with equipment, infrastructure and training to help them<br />

engage with the mainstream economy.<br />

Four new RED hubs in the <strong>Eastern</strong> <strong>Cape</strong> have started producing<br />

maize and sorghum. The plan to expose smaller operators to the supply<br />

chain of big retail companies could be transformative in some areas.<br />

The DRDAR wants to increase the province’s GDP by 2% through this<br />

scheme. Almost all of the food in South Africa’s shops is produced<br />

by commercial farmers. The DRDAR is in the process of putting small<br />

farmers on its database. After a grading process, produce will then be<br />

sold on to Nicks Food, McCain Foods and Boxer Superstores.<br />


Herbal and other natural<br />

products hold potential.<br />

• Rural Enterprise<br />

Development (RED) hubs<br />

are supporting smallscale<br />

farmers.<br />

Big infrastructure projects<br />

have been undertaken in rural<br />

areas of the eastern parts of the<br />

province by the <strong>Eastern</strong> <strong>Cape</strong><br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Rural Development Agency<br />

(ECRDA).<br />

Three training centres focus<br />

on agriculture in the province:<br />

Fort Cox College of Agriculture<br />

and Forestry, Mpofu Training<br />

Centre (teaching mostly smallstock<br />

management), and the<br />

Tsolo Agricultural and Rural<br />

Development Institute, which<br />

is developing ties with Walter<br />

Sisulu University. The Dohne<br />

Agricultural Research Institute,<br />

near Stutterheim, developed a<br />

new breed of sheep, the Dohne<br />

merino.<br />

The provincial government<br />

hopes to find private investors<br />

who will take a majority share in<br />

two large tea estates that have<br />

failed. In their heyday, Magwa<br />

and Majola produced more than<br />

a million kilograms of tea but the<br />

current business rescue plan includes<br />

a proposal to plant additional<br />

crops such as avocado and<br />

macadamia nuts, one of the fastest<br />

growing subsectors in South<br />

African agriculture. The DRDAR<br />

will partner the private investor<br />

and local community in the projected<br />

project, and the provincial<br />

government has committed an<br />

amount of R116-million to get the<br />

scheme up and running.<br />

Natural products<br />

There is enormous potential in<br />

the <strong>Eastern</strong> <strong>Cape</strong> for the development<br />

of natural products, for<br />

which there is a growing international<br />

market. Herbal medicines<br />

and teas and non-toxic healing<br />

methods of all sorts are all very<br />

popular.<br />

Rural communities are being encouraged to plant products that<br />

can be sold into the natural products value chain. Various vegetables,<br />

Honeybush (Cyclopia) and Sceletium tortuosum (known locally as<br />

Kanna) are among the crops being cultivated. The Honeybush is already<br />

well known as a tea and the Kanna is deployed for mental and<br />

emotional wellness for many hundreds of years by local communities.<br />

TOMA-Now, an NGO that unlocks green business value, is working<br />

in communities to develop organic products that can find a market.<br />

Assets<br />

The <strong>Eastern</strong> <strong>Cape</strong> has more livestock than any other South African<br />

province, and produces a quarter of the nation’s milk.<br />

The province encompasses all seven of South Africa’s biomes,<br />

which means that practically every kind of crop or animal or crop can<br />

be cultivated or raised on the province’s 169 580 square kilometres of<br />

land. These include the wool-producing merino sheep and the mohairproducing<br />

Angora goat which thrive in the dry interior.<br />

Deciduous fruit (Langkloof), citrus fruit (Addo/Kirkwood) and<br />

chicory (Alexandria) are important parts of the province’s agricultural<br />

mix, but a feature of recent years has been towards diversification.<br />

Land-usage patterns have changed. Parts of the Amathole and Sarah<br />

Baartman districts that used to be sheep or pineapple farms are now<br />

stocked with game for the hunting and tourism markets.<br />

There are about 70 000 people employed on commercial farms<br />

across the <strong>Eastern</strong> <strong>Cape</strong>, with a further 436 000 dependent on smaller<br />

farms, mostly in the east. Improving the agricultural yield of the eastern<br />

part of the province is vital for improving food security and lifting many<br />

thousands of people out of poverty. The recent national drought has<br />

put extra pressure of rural communities.<br />

Crops<br />

The <strong>Eastern</strong> <strong>Cape</strong> is South Africa’s second-largest producer of citrus<br />

fruit. Oranges make up the vast majority of citrus products (80%),<br />

but the province is also well-known for its clementine and satsuma<br />

tangerines, as well as navel oranges. Deciduous fruits such as apples,<br />

pears and apricots are grown primarily in the Langkloof Valley.<br />

Another crop in which the <strong>Eastern</strong> <strong>Cape</strong> leads national production<br />

is chicory. The roots are used for beverages such as instant coffee,<br />

the leaves go into pet food and stock feed and unopened leaf pods<br />

become chicory endives, a sought-after salad ingredient. The province<br />

produces between 18 000 and 20 000 tons of wet root every year,<br />

mostly near the coast at Alexandria and inland from Port Alfred. The<br />

entire crop is consumed in South Africa.<br />

43 EASTERN CAPE BUSINESS <strong>2018</strong>


The province’s pineapple crop, grown in the same part of the Sunshine<br />

Coast that produces chicory, is similarly largely for domestic consumption.<br />

Approximately 80 000 tons are produced every year and<br />

processed in East London.<br />

One of the fastest-growing sectors in agriculture is macadamia nuts.<br />

The ECRDA has partnered with a community to plant the popular nut<br />

at Ncera in the Tyume Valley north of Alice.<br />

Sheep and goats<br />

The long-term drought which has afflicted all regions in South<br />

Africa is having an effect on all sectors, but wool-producing sheep<br />

farmers and mohair-producing Angora goat producers perhaps less<br />

so, partly because they are so well adapted to dry conditions but<br />

also because farmers can reduce their flocks.<br />

The dorper breed (which are mainly used for meat production)<br />

are found in the dry Karoo, while the higher-lying areas are more<br />

conducive to the wool-producing sheep.<br />

South Africa produces about 50 000 tons of wool annually. In 2015/16,<br />

the value of wool sold at auctions reached R3.7-billion, of which R815-<br />

million was generated in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The National Woolgrowers Association (NWGA) has helped<br />

24 000 <strong>Eastern</strong> <strong>Cape</strong> communal wool farmers get organised into 1 224<br />

wool growers’ associations. A support programme aims to improve<br />

the genetic stock. This is funded by the National Department of Rural<br />

Development and Land Reform and involves communal farmers swopping<br />

an inferior ram for a good ram. So far, 42 000 good Merino rams<br />

have been added to the communal flocks.<br />

The South African Mohair Growers Association is based in the heart<br />

of Angora goat country at Jansenville while the industry association,<br />

Mohair South Africa, has recently<br />

built smart new headquarters in<br />

Port Elizabeth, encompassing a<br />

shop and conference facilities.<br />

South Africa produces about half<br />

of the world’s mohair.<br />

Processing of mohair takes<br />

place in Uitenhage, Port Elizabeth<br />

and Berlin outside East London.<br />

The mohair value chain includes<br />

brokers, buyers, processors, spinners,<br />

manufacturers and retailers.<br />

The Stucken group controls<br />

Mohair Spinners South Africa,<br />

Hinterveld (a mill) and a processing<br />

company called Gubb & Inggs<br />

in Uitenhage.<br />

Several agricultural companies<br />

have mohair divisions: OVK (based<br />

in Ladybrand) has a 34% shareholding<br />

the <strong>Cape</strong> Mohair Wool<br />

(CMW), a mohair brokerage; BKB<br />

(Port Elizabeth headquarters) has<br />

a mohair division that includes<br />

auctions and brokering.<br />

Other livestock<br />

Livestock farming is the largest<br />

agricultural subsector in South<br />

Africa. The <strong>Eastern</strong> <strong>Cape</strong> holds<br />

21% of the country’s cattle (about<br />

3.2-million), 28% of its sheep (seven<br />

million) and 46% of its goats,<br />

making it the largest livestock<br />

province by a large margin.<br />

The rich natural grasslands of<br />

the <strong>Eastern</strong> <strong>Cape</strong> have the potential<br />

to produce high-value organic<br />

meat, a product that is proving increasingly<br />

popular in health-conscious<br />

international markets. The<br />

<strong>Eastern</strong> <strong>Cape</strong> can offer a range<br />

that stretches from Karoo lamb<br />

to CAB-certified free-range beef.<br />

These niche meat products are<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



leaner, healthier and often tastier<br />

than mass-produced alternatives.<br />

High-value meat cuts such<br />

as these will increase the value of<br />

exports from the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The Border region is very strong<br />

in beef production.<br />

Stats confirm that South Africa<br />

has a large meat-eating population,<br />

as South Africans consume<br />

on average 13.7kg of beef every<br />

year, of which lamb or mutton<br />

makes up around 3.4kg.<br />

range of flavoured milks, cheeses, custards, butter, fruit drinks and<br />

ice cream under many brand labels), Dairybelle (Cookhouse near<br />

Somerset East; cheeses), Woodlands Dairy (Humansdorp; UHT milk,<br />

First Choice Brand), Sundale Free Range Dairy (East London Industrial<br />

Development Zone).<br />

Dairy<br />

About a quarter of South Africa’s<br />

milk comes from the <strong>Eastern</strong><br />

<strong>Cape</strong>. Although conditions vary<br />

greatly from the luscious green<br />

grasses of the Lower Tsitsikamma<br />

to the drier conditions of the<br />

Karoo, they all seem to suit milkproducing<br />

cows.<br />

The bigger dairies include<br />

Coega Dairy which was founded<br />

in 2011 and is situated in the<br />

Coega IDZ. Coega Dairy is one<br />

of South Africa’s 10 largest dairies<br />

with a turnover of more than<br />

R1.5-billion and produces milk<br />

under the Coastal label as well<br />

as under contract for various<br />

retailers. It supplies milk all over<br />

South Africa. It also manages the<br />

Famous Brands Cheese Company<br />

within the IDZ as part of a joint<br />

venture with Famous Brands.<br />

Other dairy operations include<br />

Dawson Dairy (just outside<br />

Port Elizabeth), Crickley<br />

Dairy (Queenstown), Clover<br />

Dairy (Port Elizabeth; packaging<br />

and fresh pasteurised milk<br />

processing, long-life UHT milk),<br />

Parmalat (Port Elizabeth; a wide<br />


Agri <strong>Eastern</strong> <strong>Cape</strong>: www.agriec.co.za<br />

Chicory Producers Association: www.chicory.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Department of Rural Development and Agrarian<br />

Reform: www.drdar.gov.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />

Milk Producers Organisation: www.mpo.co.za<br />

Mohair South Africa: www.mohair.co.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

National Woolgrowers’ Association of South Africa:<br />

www.nwga.co.za<br />

South African Mohair Growers Association: www.angoras.co.za<br />

45 EASTERN CAPE BUSINESS <strong>2018</strong>


Forestry<br />

Thousands of hectares have been identified for new planting.<br />

Forestry is an important part of government plans to expand<br />

agri-processing. More than 3 400ha of new land has been<br />

planted and timber harvests are expected within three years.<br />

Six community projects in the district municipalities of OR<br />

Tambo and Alfred Nzo are employing more than 1 000 people.<br />

Rural Enterprise Development (RED) hubs have been established<br />

in Mqanduli and Ncorha, with funding from the Jobs Fund, the<br />

<strong>Eastern</strong> <strong>Cape</strong> Development Corporation and the <strong>Eastern</strong> <strong>Cape</strong> Rural<br />

Development Agency (ECRDA). The Mqanduli Mill is supplying the<br />

Nicks Spar in King William’s Town.<br />

According to the ECRDA, government plantations have more than<br />

15 000ha of unplanted areas which would be easy to develop: they<br />

do not require high initiation costs because no licence is required.<br />

The <strong>Eastern</strong> <strong>Cape</strong>’s forestry sector comprises 130 000ha of plantations,<br />

46 sawmills, two chipboard operations, 10 pole treatment plants,<br />

a veneer plant and six charcoal plants, which collectively process about<br />

770 500 cubic metres of timber annually.<br />

The region is well-served by wood-processing facilities such as<br />

the R1.3-billion board plant outside Ugie that is owned by PG Bison.<br />

Another of the province’s major forestry stakeholders is Amathola<br />

Forestry, along with their sister company Rance Timber’s Kubusi and<br />

Sandile Sawmill near Stutterheim, producing 45 000 cubic metres of<br />

sawn board annually.<br />

About 75% of the province’s plantations are controlled by the private<br />

sector. Forestry South Africa has set up a <strong>Business</strong> Development<br />

Unit to empower small-scale timber growers.<br />


<strong>Eastern</strong> <strong>Cape</strong> Department of Rural Development and Agrarian<br />

Reform: www.drdar.gov.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />

Forestry SA: www.forestry.co.za<br />

Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

South African Institute for Forestry: www.saif.org.za<br />


Mqanduli Mill is supplying a<br />

large retailer in King William’s<br />

Town.<br />

The ECRDA aims to transform<br />

unproductive communal land<br />

assets through commercial forestry<br />

development. The ECRDA’s<br />

Sinawo project in Mbizana has<br />

started selling timber to Sappi<br />

and intends commercialising all<br />

its operations.<br />

In 2015/16 the project earned<br />

about R7-million from the sale of<br />

timber and the total employee<br />

count rose to 208. Sappi and<br />

PG Bison are supporting these<br />

community initiatives.<br />

Paper and packaging group<br />

Sappi is working with the ECRDA<br />

and with several communities<br />

to establish forestation programmes.<br />

At Mkambathi a total of 668ha<br />

has been planted and Sappi has<br />

agreed to buy 65% of the timber<br />

produced and to give technical<br />

support where it can.<br />

Downstream opportunities<br />

created by new plantations include<br />

a planned treated-pole<br />

plant in Butterworth and a paper<br />

and pulp mill in Mthatha, which<br />

has also been selected as a future<br />

furniture-sector incubator.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Aquaculture<br />

Fish from the Karoo will soon be a popular dish.<br />


Aquaculture Association of South Africa: www.aasa-aqua.co.za<br />

Aquaculture Development and Enhancement Programme:<br />

www.thedti.gov.za<br />

Coega IDZ: www.coega.co.za<br />

East London Industrial Development Zone: www.elidz.co.za<br />

Operation Phakisa: www.operationphakisa.gov.za<br />

South African International Maritime Institute: www.saimi.co.za<br />

South African Institute of Aquatic Biodiversity: www.saiab.ac.za<br />


The provincial government<br />

is investing in fish-farming<br />

technology.<br />

Investment in local infrastructure at the East London Industrial<br />

Development Zone (ELIDZ) is focussed on localising fin fish farming<br />

technology. In 2017/18, an amount of R15-million was set aside<br />

by the <strong>Eastern</strong> <strong>Cape</strong> Provincial Government for this purpose.<br />

The Science and Technology Park at the ELIDZ could also become<br />

the site of a marine sector incubation programme to foster interest<br />

in the Oceans Economy among young people and entrepreneurs.<br />

INMED South Africa, a non-profit organisation devoted to better<br />

health and nutrition for children, in partnership with the Mondelēz<br />

International Foundation, launched a R37-million commercial-scale<br />

aquaponic system on the Missionvale campus of Nelson Mandela<br />

Metropolitan University (NMMU) in 2017. A total of 116 schools will<br />

benefit from the project. Waste water will be used to irrigate vegetables<br />

and used again to top up the fish tanks once the nutrients have been<br />

absorbed by the plants.<br />

Aquaponics Innovations produces red tilapia and catfish from its<br />

aquaponics tunnel in Grahamstown. “Karoo Catch” is the brand name<br />

for freshwater fish produced by Blue Karoo Trust, a project taking shape<br />

near the town of Graaff-Reinet. A central farm will be supported by<br />

39 outgrowers and the aim is to produce about 14 000 tons of fish<br />

annually. The intended market is organisations that need protein in<br />

bulk such as hospitals, schools and government institutions. The risk<br />

capital unit of the <strong>Eastern</strong> <strong>Cape</strong> Development Corporation (ECDC) is<br />

supporting the venture.<br />

Aquaculture is an important part of the South African government’s<br />

Operation Phakisa strategy.<br />

The intention is to increase<br />

the aquaculture sector’s revenue<br />

from about half a billion rand, to<br />

R1.4-billion in 2019.<br />

Pure Ocean Aquaculture and<br />

Ocean Wise are located within<br />

the East London IDZ. At Zone<br />

10 in the Coega IDZ, 250ha has<br />

been set aside for fresh fish<br />

farming and 100ha for marine<br />

farming. A processing plant and<br />

research and development and<br />

training facilities are planned.<br />

The Coega Development<br />

Corporation estimates that 34<br />

250 tons of abalone, Dusky Kob<br />

and seaweed could be harvested.<br />

The National Department of<br />

Science and Technology (DST) is<br />

working with Irvin & Johnson in<br />

running a marine finfish growout<br />

pilot in Algoa Bay.<br />

A programme of the Department<br />

of Trade and Industry,<br />

the Aquaculture Development<br />

and Enhancement Programme<br />

(ADEP), offers a reimbursable<br />

grant up to R40-million.<br />

47 EASTERN CAPE BUSINESS <strong>2018</strong>


Agri-processing<br />

Manufacturers are harvesting the <strong>Eastern</strong> <strong>Cape</strong>’s excellent produce.<br />


A fibre manufacturing project<br />

has been started in<br />

Butterworth.<br />

• Mohair is a globally popular<br />

luxury product.<br />

Agri-processing is one of the key planks of the Provincial<br />

Economic Development Strategy of the <strong>Eastern</strong> <strong>Cape</strong><br />

Department of Economic Development, Environmental<br />

Affairs and Tourism (DEDEAT). Part of the strategy is decentralisation,<br />

or locating facilities in smaller or rural centres.<br />

The Local, Regional and Economic Development Fund (LRED) is supporting<br />

a fibre manufacturing project in Butterworth with cashmere<br />

wool as the feedstock. The intention is to create jobs and revive the fibre<br />

industry in the Amathole District Municipality.<br />

Wool, mohair, citrus and pineapples, dairy products and salt are some<br />

of the products of the soil of the <strong>Eastern</strong> <strong>Cape</strong> that manufacturers are turning<br />

into jerseys, scarves, jams, juices, cheeses, yoghurts and cakes of salt.<br />

The <strong>Eastern</strong> <strong>Cape</strong> has more<br />

livestock than any other South<br />

African province, produces close<br />

to a quarter of South Africa’s milk<br />

and is the second-largest producer<br />

of citrus fruits.<br />

Famous Brands has 2 600 restaurants<br />

throughout South Africa,<br />

including the brands that made<br />

their debut in Port Elizabeth, Vovo<br />

Telo and Dulce Café. Famous Brands<br />

has increased its manufacturing<br />

footprint in the Coega Industrial<br />

Development Zone (CIDZ). Zone<br />

Three of the Coega IDZ is devoted<br />

to agriprocessing.<br />

Other tenants of the Coega<br />

IDZ include logistics companies<br />

like PE Cold Storage, River Edge<br />

Trading (which trades in sugar and<br />

syrup across Southern Africa) and<br />

Cerebos. Cerebos’s 30 000-ton per<br />

annum plant at Coega was awarded<br />

a top food safety standard certification<br />

on its 70th birthday in 2015,<br />

the FSSC 22000.<br />

The East London IDZ has two<br />

aquaculture tenants and the large<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Sundale Dairy, as well as a regional<br />

depot of the Mediterranean<br />

Shipping Company.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Rural<br />

Development Agency (ECRDA) is<br />

active in helping small-scale farmers<br />

get access to markets and to<br />

become part of the agriprocessing<br />

chain. The implementation<br />

of Rural Enterprise Development<br />

(RED) hubs is central to this strategy.<br />

RED hubs will supply tractors,<br />

harvesters and offer storage facilities<br />

and milling plants. There will<br />

also be opportunities for farmers<br />

to sell direct to members of their<br />

own community instead of shipping<br />

produce off to a distant location<br />

to be processed there. The first<br />

four hubs will be sited in the district<br />

municipalities of OR Tambo, Chris<br />

Hani and Alfred Nzo.<br />

Agri-parks will support the addition<br />

of value to primary products:<br />

these have been developed<br />

at Lambasi, Ncorha, Sundays River<br />

Valley, Butterworth, Matatiele and<br />

Sterkspruit-Senqu.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Development<br />

Corporation (ECDC) also has a<br />

role in supporting agriprocessing<br />

through loans and equity arrangements:<br />

projects that have received<br />

financial support include aquaculture,<br />

the production of dietary<br />

fibre from pineapples and bamboo<br />

products.<br />

The <strong>Eastern</strong> <strong>Cape</strong> industry is<br />

further expanding as producers<br />

tend to favour high-rainfall coastal<br />

areas such as the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The bigger dairies include Coega<br />

Dairy which was founded in 2011<br />

and is situated in the Coega IDZ.<br />

The Coega Dairy in the Coega<br />

IDZ produces the brand Coastal<br />

and sells milk to all parts of South<br />

Africa. It also manages the Famous Brands Cheese Company. which<br />

supplies product throughout the country.<br />

The province’s farmers mostly sell raw milk to two processors: Parmalat<br />

and Clover. Small-scale dairy farming presents an opportunity to develop<br />

the industry in the former homeland areas, especially in a range of previously<br />

untapped products such as milk powder, speciality cheeses and<br />

long-life milk.<br />

Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures<br />

natural cheese, processed cheese and speciality cheeses at its factory<br />

in Cookhouse near Somerset East. Ouma Rusks are still made in the small<br />

rural town where they were invented, Molteno, and the current owner of<br />

the brand, Foodcorp, has increased production volumes.<br />

Cadbury Chocolates operates a big site across the lake from the football<br />

stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its<br />

factory in East London. The Sasko mill in Port Elizabeth is the province’s<br />

only big milling plant.<br />

Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major<br />

beverage manufacturers in Port Elizabeth and Distell has a bottling plant<br />

in the city.<br />

Sovereign Foods in Uitenhage is the country’s fourth-biggest producer<br />

of poultry and has been the target of a take-over by Country Birds for<br />

some time, but the process has been dragged out because Sovereign<br />

management do not want to sell.<br />

South Africa is the second-largest producer of chicory in the world.<br />

Chicory is grown primarily in the coastal areas around Alexandria between<br />

Port Elizabeth and Port Alfred. A drying plant has been established there<br />

and the dried chicory produced is sold to coffee manufacturers nationwide<br />

for local consumption.<br />

Sugar is grown on the northern border of the province, in North<br />

Pondoland. An opportunity for diversification in crop production exists<br />

with the aloe ferox plant, which is indigenous to the <strong>Eastern</strong> <strong>Cape</strong>. Like<br />

aloe vera, which is in demand worldwide in cosmetic and health products,<br />

aloe ferox is used for a wide range of skin conditions and various medical<br />

ailments.<br />


Border Kei Chamber of <strong>Business</strong>: www.bkcob.co.za<br />

Coega IDZ: www.coega.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />

East London Industrial Development Zone: www.elidz.co.za<br />

Nelson Mandela <strong>Business</strong> Chamber:<br />

www.nmbbusinesschamber.co.za<br />

Organic Agricultural Association of South Africa:<br />

www.organicsouthafrica.co.za<br />

Perishable Products Export Control Board: www.ppecb.com<br />

49 EASTERN CAPE BUSINESS <strong>2018</strong>


Manufacturing<br />

Clusters are promoting niche manufacturing.<br />


• First National Battery has<br />

the country’s first industrial<br />

cell factory.<br />

Several cluster development programmes in the <strong>Eastern</strong><br />

<strong>Cape</strong> aim to develop specific industries by bringing together<br />

expertise and logistical support.<br />

Marine manufacturing will be the focus of the Mandela<br />

Bay Composites Cluster (MBCC). With funding from the <strong>Eastern</strong> <strong>Cape</strong><br />

Department of Economic Development, Environmental Affairs and<br />

Tourism (DEDEAT) and the National Department of Trade and Industry<br />

(dti), MBCC will target skills development, innovation in the field of<br />

composites and work on improving the value chain and links to the<br />

supply chain.<br />

A Non-Automotive Manufacturing (NAM) Cluster will concentrate<br />

on training, supplier development, energy efficiencies and developing<br />

new markets. An Energy Manufacturing Hub is planned for <strong>2018</strong>.<br />

The dti also offers a Competitiveness Enhancement Programme<br />

aimed at medium-sized manufacturers. It includes a cost-sharing grant<br />

of between 30% and 50% for investments up to R50-million and up to<br />

80% if a group of smaller companies want to collaborate on matters<br />

such as advertising.<br />

New and revived industrial parks are an important plank in provincial<br />

government policy to promote manufacturing. A new park has<br />

been launched in Queenstown, Komani Industrial Park. Seven local<br />

small businesses were involved in constructing the facility. Vulindlela<br />

Heights Industrial Park (Mthatha) has received security upgrades. The<br />

Dimbaza Industrial Park welcomed a new tenant in 2017 in cooler<br />

box manufacturer Ikusasa Green. The park has 24 tenants and serves<br />

King William’s Town.<br />

The provincial government supports diversification. With the automotive<br />

sector supplying 30% of manufacturing employment and 32%<br />

of manufacturing gross value-added, the province’s economy might<br />

be vulnerable to fluctuations in demand for vehicles. The strategy is<br />

targeting sectors where the province already has a competitive advantage<br />

(such as wool and mohair), is labour intensive, will have a broad<br />

impact and has low barriers for SMME entry. Sectors targeted include:<br />

agri-processing and food; timber; tourism; construction; chemicals;<br />

energy and mariculture.<br />

One of South Africa’s most successful manufacturers is Port<br />

Elizabeth-based Aspen. The company has 60 businesses in 50 countries<br />

and the Port Elizabeth and<br />

East London factories play an<br />

important role in producing excellent<br />

products in bulk. The Port<br />

Elizabeth site makes more than<br />

12-billion oral solid dosage forms<br />

every year, in addition to more<br />

than 25-million units of Murine<br />

and Clear Eye eye drops being<br />

made for export to the US. The<br />

PE complex has four components,<br />

covering oral solid, liquid, steriles<br />

and niche high-potency pharmaceutical<br />

products.<br />

First National Battery, a part of<br />

the Metair Group, has one factory<br />

at Fort Jackson, just outside East<br />

London (making plastic components)<br />

and two factories in East<br />

London: automotive batteries<br />

(10 000 per day capacity); industrial<br />

batteries (first in South Africa<br />

producing industrial cells).<br />

Mpact runs two corrugated<br />

packaging convertor facilities in<br />

the <strong>Eastern</strong> <strong>Cape</strong>, at Deal Part<br />

in Port Elizabeth and Gately<br />

Township, East London. The<br />

company recently spent R150-<br />

million on doubling capacity at<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



the Port Elizabeth plant. Mpact<br />

has 21 manufacturing sites across<br />

Southern Africa.<br />

Bodene, a subsidiary of<br />

Fresenius Kabi, makes intravenous<br />

medicine in Port Elizabeth.<br />

East London hosts Johnson &<br />

Johnson’s finance, operations<br />

and research and development<br />

divisions.<br />

Swedish concern Fagerhult<br />

Group has entered the South<br />

African market via an acquisition<br />

of the factory of Port Elizabeth’s<br />

Lighting Innovations, and the<br />

two subsidiary companies Arrow<br />

Lighting and Beacon Lighting.<br />

Montego Pet Nutrition is<br />

Graaff-Reinet’s biggest private<br />

employer, with more than 200<br />

staff members working in the<br />

Karoo town’s factory. Established<br />

in 2000, the company now makes<br />

about 200 tons of product daily<br />

and supplies more than 1 000<br />

retail outlets across South Africa.<br />

There is great potential to<br />

create more value from the<br />

excellent wool, leather and<br />

mohair that the province’s<br />

livestock produce. The production<br />

and working with merino wool<br />

and mohair fibres are skills that<br />

have been handed down from<br />

generation to generation.<br />

A fibre processing plant to spin<br />

wool and mohair fibre into yarn is<br />

planned, as is a textile mill to focus<br />

on cotton, poly-cotton and acrylic<br />

fabric. The latter is planned for the<br />

IDZ in East London, which is already<br />

home to Da Gama Textiles,<br />

whose factory has the capacity<br />

to produce 45-million square metres<br />

of fabric per annum. Da Gama<br />

makes the popular and distinctive<br />

shweshwe fabric, using its own<br />

unique printing process which makes it very difficult for fakers to copy.<br />

The BBF Safety Group invested R16-million in a new machine at its<br />

Port Elizabeth plant in 2016 which will take shoe production up to 5 000<br />

pairs per day. The injection moulding machine can inject a moulded<br />

sole to the shoe upper every 15 seconds. The Lemaitre brand is widely<br />

known and used within the mining industry.<br />

The BBF Group was formed from a merger of several South African<br />

companies, to allow them to specialise and to compete with cheap<br />

foreign imports. The companies were Bagshaw Footwear, Beier Safety<br />

Footwear, Bronx Safety, United Frams and Wayne.<br />


Border-Kei Chamber of Commerce: www.bkcob.co.za<br />

Coega Development Corporation: www.coega.co.za<br />

Department of Economic Development, Environmental Affairs and<br />

Tourism: www.dedea.gov.za<br />

East London Industrial Development Zone: www.elidz.co.za<br />

Manufacturing Circle: wwww.manufacturingcircle.co.za<br />

National Association of Pharmaceutical Manufacturers:<br />

www.napm.co.za<br />

South African Bureau of Standards: www.sabs.ca.za<br />

51 EASTERN CAPE BUSINESS <strong>2018</strong>


Automotive<br />

Beijing Automotive’s new factory is a major boost for the sector.<br />


Volkswagen SA makes<br />

130 000 engines annually in<br />

Uitenhage.<br />

• Daimler is introducing a<br />

new commuter bus.<br />

Already home to some of the biggest brands in original equipment<br />

manufacturing (OEM) and automotive components in<br />

Volkswagen, Mercedes-Benz, Ford, Goodyear, Continental<br />

Tyre SA, Bridgestone and Shatterprufe, the addition of two<br />

Chinese firms, First Automotive Works (FAW) and Beijing Automobile<br />

Corporation (BAIC), confirms the <strong>Eastern</strong> <strong>Cape</strong>’s prime position in<br />

this sector.<br />

Beijing Automotive Industry Group (BAIC) expects to be building<br />

50 000 vehicles per year at its site at Coega Industrial Development<br />

Zone (IDZ) by 2022. Construction of the factory was held up in 2017<br />

because of concerns by local small businesses about the percentage<br />

of work that was going to local business.<br />

Companies like BAIC may well be positioning themselves to push<br />

into Africa, not only for selling vehicles but for sending automotive<br />

parts and partly-assembled kits further north. A new pan-African<br />

organisation has been established to promote the auto industry on<br />

the continent, the African Association of Automotive Manufacturers<br />

(AAAM). Most international brands such as Volkswagen have given<br />

responsibility for Africa to their South African offices.<br />

The <strong>Eastern</strong> <strong>Cape</strong> manufactures half of the country’s passenger<br />

vehicles and provides 51% of South Africa’s vehicle exports. The sector<br />

accounts for over 40 000 formalsector<br />

jobs in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The South Africa automotive<br />

sector makes up about 7%<br />

of South Africa’s gross domestic<br />

product and is responsible for approximately<br />

12% of the country’s<br />

manufacturing exports.<br />

The decision in 2017 of General<br />

Motors to disinvest from South<br />

Africa does not seem to have<br />

had any knock-on effect. The<br />

company’s selling of its plant in<br />

Port Elizabeth was just one sale<br />

of many around the world. Isuzu<br />

has bought the factory.<br />

Volkswagen’s two new types<br />

of Polos started rolling off the<br />

production line in Uitenhage in<br />

<strong>2018</strong>. Volkswagen’s R6.1-billion<br />

investment will take production<br />

up to full capacity of 160 000 vehicles<br />

in 2019, from 110 000 in 2017.<br />

The increase will mean that a third<br />

shift will be introduced.<br />

In addition, VWSA manufactures<br />

130 000 engines for local demand<br />

and for export to countries<br />

such as Russia, India and Mexico.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Ford in Port Elizabeth is the country’s<br />

other engine manufacturer.<br />

The potential of computers<br />

to improve efficiencies in the<br />

automotive sector is enormous.<br />

Enterprise Resource Planning<br />

(ERP) refers to software that<br />

links up various aspects of a<br />

business. This is a speciality of<br />

SYSPRO, which is active in many<br />

sectors, including automotive.<br />

A recent product allows for reduced<br />

waste in manufacturing<br />

and improves links between<br />

units (or companies) in the supply<br />

chain.<br />

Smart factories are the<br />

subject of research being undertaken<br />

by the Department<br />

of Computing Sciences at the<br />

Nelson Mandela Metropolitan<br />

University (NMMU). The research<br />

is supported by Volkswagen SA<br />

and Mercedes-Benz SA.<br />

A new commuter bus<br />

launched by Daimler Trucks<br />

and Buses Southern Africa will<br />

be assembled at the company’s<br />

plant in East London in <strong>2018</strong>.<br />

Fewer gear shifts are one of the<br />

features of the OF-1723, which<br />

should increase fuel efficiency.<br />

The establishment of the<br />

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

Industry Forum (ECAIF) in 2016<br />

is expected to assist black business<br />

people to get involved in<br />

the sector. A programme to encourage<br />

young people to enter<br />

the motor industry, PRIME<br />

(Programme for Industrial and<br />

Manufacturing Excellence),<br />

has seen the first group of 137<br />

graduates take up placements.<br />

An Automotive Production<br />

and Development Programme<br />

(APDP) is in place to support the<br />

automotive industry and to encourage investment in local facilities.<br />

It is run by the Department of Trade and Industry (dti).<br />

Components<br />

Only 35% of the components and parts used to make vehicles in<br />

South Africa are produced locally. The large number of vehicle models<br />

produced in South Africa is a complicating factor for the components<br />

sector: low volumes often mean high prices. Two Port Elizabeth companies<br />

export large portions of their production to overcome this:<br />

Schaeffler SA exports to its international parent so that it can achieve<br />

higher volumes. Shatterprufe supplies most windscreens to the South<br />

African market but there are 12 model ranges to serve.<br />

About 150 automotive suppliers of various types operate in the<br />

<strong>Eastern</strong> <strong>Cape</strong>. Sectors include leather works, batteries, automotive<br />

tooling, catalytic converters, glass, lamps, radiators and alloy wheels.<br />

The catalytic converter sector experienced incredible growth for<br />

several years but some volatility in the platinum mining sector, together<br />

with increased interest in electric vehicles and hybrids, means that<br />

exporters (largely based in Port Elizabeth) have had to work harder.<br />

SJM Flex SA, manufacturer of flexible, stainless-steel couplings,<br />

was named overall exporter of the year by the Exporters’ Club in 2016.<br />

Catalytic converter Eberspächer SA won a merit award in the corporate<br />

category for what the judges called its “entrepreneurial flair and major<br />

accomplishments”. Testing company Jendamark Automation also won<br />

a merit award.<br />

Firestone was the first tyre company to be established in Port<br />

Elizabeth. It was soon followed by Goodyear (in Uitenhage) and General<br />

Tyre (now Continental Tyre SA). Continental has about 1 600 employees<br />

and sells tyres domestically and internationally. Bridgestone has<br />

production facilities in Port Elizabeth and Brits.<br />

Both the Coega IDZ and the East London IDZ are positioning themselves<br />

as sites for the components manufacturing sector.<br />


Automotive Industry Development Centre: www.aidc.co.za<br />

Automotive Industry Export Council: www.aiec.co.za<br />

Automotive Production and Development Programme:<br />

www.thedti.co.za<br />

Catalytic Converter Interest Group: www.sassda.co.za<br />

National Association of Automotive Component and Allied<br />

Manufacturers: www.naacam.co.za<br />

National Association of Automobile Manufacturers of South Africa:<br />

www.naamsa.co.za<br />

53 EASTERN CAPE BUSINESS <strong>2018</strong>


Water<br />

A large project is planned for the Umzimvubu River.<br />


Desalination joint ventures<br />

are under discussion.<br />

• 37% of South Africa’s<br />

water is lost.<br />

Several plans are under consideration to alleviate the water<br />

shortages facing the <strong>Eastern</strong> <strong>Cape</strong>’s towns and rural areas.<br />

In 2017, the worst-hit district municipalities, Amathole, Chris<br />

Hani and Joe Gqabi District Municipalities, received help from<br />

national and provincial authorities.<br />

The Nelson Mandela Bay Municipality has been looking at ways of<br />

finding new water, including desalination and tapping new underground<br />

water sources.<br />

The completion of phase two of the Nooitgedacht low-level water<br />

scheme during 2017 helped ease the pressure on the metropole,<br />

with the biggest dams such as the Churchill and Kouga dams having<br />

reached critically low levels of 15%. A desalination plant at Swartkops<br />

and new boreholes around the Uitenhage Springs are among other<br />

projects that will help to alleviate shortages.<br />

The municipality’s website is raising awareness about water scarcity.<br />

The slogans that come up on the scroll include, “Go Grey!” and “Public<br />

enemy: water leaks”.<br />

One option being considered is for the Nelson Mandela Bay<br />

Municipality to join hands with SABMiller, which needs a lot of water<br />

to makes its products, and Marina Sea Salt, which desalinates sea<br />

water to make salt. The Coega<br />

Development Corporation (CDC)<br />

is also investigating desalination<br />

as it needs water for the gasrelated<br />

industries at the Coega<br />

Industrial Development Zone.<br />

The Nelson Mandela Bay<br />

metropole currently gets its water<br />

from 10 dams, six of which<br />

are owned by the municipality.<br />

The Churchill and Impofu dams<br />

supply half the total supply, with<br />

the latter dam having a full storage<br />

capacity of 105-million cubic<br />

metres. The municipality maintains<br />

about 3 000km of reticulation<br />

water mains, about 650km<br />

of bulk-water pipelines and six<br />

waste-water treatment works.<br />

Water services are provided to<br />

the citizens of the <strong>Eastern</strong> <strong>Cape</strong> by<br />

17 water service authorities which<br />

oversee 163 drinking water supply<br />

systems. Muncipalities and<br />

Amatola Water are the primary<br />

providers of services.<br />

Purification, desalination,<br />

water-leakage management and<br />

waste-water treatment are some<br />

of the problems facing the sector<br />

and solutions are urgently<br />

needed. There are opportunities<br />

for innovative entrepreneurs.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



According to Water Wheel magazine, 37% of water delivered to the<br />

nation’s municipalities is lost.<br />

A water supply and hydropower project is planned on the<br />

Umzimvubu River, under the control of the National Department<br />

of Water and Sanitation. The project entails the construction of two<br />

multipurpose dams, Ntabelanga and Laleni Dams, on the Tsitsa River,<br />

which is a tributary of the Umzimvubu, to supply irrigated agriculture,<br />

domestic and industrial water requirements, and hydropower generation<br />

in the catchment area. The smaller dam at Tsitsa Falls will supply<br />

the hydropower element.<br />

The Umzimvubu catchment and river system stretches for over<br />

200km from its source in the Maloti‐Drakensberg watershed on the<br />

Lesotho escarpment to Port St Johns. The river and adjacent forests,<br />

grasslands, thickets and dune vegetation are amazingly diverse but are<br />

threatened in various ways. The Umzimvubu Catchment Partnership<br />

Programme wants to find ways protect the environment while helping<br />

with poverty alleviation through the provision of water, erosion control<br />

and fodder for livestock and food security.<br />

In 2017/18 the DWS will spend R12.5-billion on dams, water transfer<br />

schemes and bulk distribution. Improving and expanding water<br />

infrastructure are key elements to ensuring water security in a waterscarce<br />

country.<br />

The long-term drought that afflicted South Africa brought several<br />

responses from the <strong>Eastern</strong> <strong>Cape</strong> Department of Water and Sanitation<br />

(DWS) and have led to the development of the <strong>Eastern</strong> <strong>Cape</strong> Water<br />

Master Plan in an effort to alleviate the drought situation.<br />

Another intervention by DWS, the Hyancinth project, has a budget<br />

of R6.09-million. The invasion of the aquatic weed needs to be controlled<br />

and, if unchecked, will disrupt water systems throughout the<br />

province. Importantly, clearing water hyacinth can provide significant<br />

volumes of biomass for the creation of alternative bioenergy.<br />

Systems<br />

Inter-basin water transfers are the norm in South Africa. In the 1950s,<br />


Amatola Water: www.amatolawater.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Umzimvubu Catchment Partnership Programme:<br />

www.umzimvubu.org<br />

Water Institute of South Africa: www.wisa.org.za<br />

Water Research Commission: www.wrc.org.za<br />

the Orange River Project delivered<br />

water from the Orange River<br />

to citrus farmers in the far-away<br />

<strong>Eastern</strong> <strong>Cape</strong>. This project made<br />

the citrus industry possible in<br />

places like Addo.<br />

The country’s river systems<br />

are mostly not where its people<br />

are, so 80% of the water used<br />

by the most populous and economically<br />

important province,<br />

Gauteng, is imported from<br />

neighbouring Lesotho.<br />

The Nooitgedacht Low Level<br />

Scheme is an extension of this<br />

system of transfers. It treats water<br />

from the Gariep Dam which<br />

comes to the Port Elizabeth area<br />

via the Orange-Fish River Tunnel<br />

and various rivers that are connected<br />

to the Sundays River<br />

irrigation scheme.<br />

Amatola Water manages<br />

bulk water infrastructure across<br />

50 000km², encompassing the district<br />

municipalities of Chris Hani<br />

and Amathole, together with<br />

portions of other municipal areas.<br />

Backlogs in rural areas and smaller<br />

municipalities are still prevalent,<br />

and this water authority is playing<br />

a key role in reducing and eradicating<br />

these inequalities.<br />

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

Development Corporation is<br />

helping the Makana Municipality<br />

in terms of the Integrated<br />

Social Infrastructure Delivery<br />

Programme (ISIDP). With the city<br />

of Grahamstown housing many<br />

schools and a university (and the<br />

National Arts Festival), the Makana<br />

Water Crisis Intervention Project is<br />

strategically important .<br />

55 EASTERN CAPE BUSINESS <strong>2018</strong>


Education<br />

Nelson Mandela University has launched an Ocean Sciences Campus.<br />

Research students from the University of Fort Hare are helping<br />

the small village of Upper Blinkwater get their own electricity<br />

from a mini-grid powered by biogas digesters. Staying<br />

current with the latest research in renewable energy is vital<br />

for the provincial economy, as is the need to engage in research that<br />

helps communities.<br />

The <strong>Eastern</strong> <strong>Cape</strong> is home to five universities, three of which are<br />

comprehensive universities. Nelson Mandela Metropolitan University<br />

(NMMU), Walter Sisulu University (WSU) and University of South Africa<br />

(Unisa) offer both diplomas (vocational) and academic programmes<br />

(degrees).<br />

NMMU has six campuses (including one in the Western <strong>Cape</strong> town<br />

of George) and seven faculties. In 2017, NMMU inaugurated its Ocean<br />

Science Campus at its Port Elizabeth base. This includes a unit aimed at<br />

combating sea fisheries crime (FishFORCE, with support from Norway)<br />

and the South African International Maritime Institute. The university<br />

has four marine sector chairs funded by the South African Research<br />

Chair Initiative (SARChI) and the National Research Foundation (NRF):<br />

• Marine Spatial Planning (ocean zoning)<br />

• Shallow Water Ecosystems (including rare coastal rock pools)<br />

• Ocean Sciences and Food Security (with Southampton University)<br />

• Law of the Sea (including oil resource management, port law<br />

and marine tourism law).<br />

Walter Sisulu University has four faculties: Education; Health Sciences;<br />

<strong>Business</strong>, Management Sciences and Law; and Science, Engineering<br />

and Technology.<br />


Biogas digesters are under<br />

the spotlight at Fort Hare<br />

University.<br />

• The Mvula Trust is rolling<br />

out water and sanitation<br />

to schools.<br />

Rhodes University in<br />

Grahamstown had just over 8 000<br />

students in 2015, the majority of<br />

whom live in residences, but its<br />

academic and research staff have<br />

a disproportionately high number<br />

of master’s and doctoral degrees.<br />

Rhodes has 14 of the national research<br />

chairs appointed under<br />

SARChI, including chairs in radio<br />

astronomy and biotechnology.<br />

The university’s journalism school<br />

is a leader in its field.<br />

Fort Hare University has five<br />

faculties, 10 schools and, at its East<br />

London campus, the Institute of<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Social and Economic Research.<br />

Fort Hare is supported by the<br />

National Research Foundation<br />

and participates and has approved<br />

research programmes in<br />

Water Resource Management,<br />

Sustainable Agriculture and Land<br />

Use Strategies.<br />

There are several examples<br />

in the <strong>Eastern</strong> <strong>Cape</strong> of collaboration<br />

between the manufacturing<br />

sector and educational<br />

institutions: General Motors<br />

SA has assigned R3.6-million<br />

to a Chair in Mechatronics at<br />

Nelson Mandela Metropolitan<br />

University (NMMU). NMMU offers<br />

a Bachelor of Engineering<br />

in Mechatronics, covering electronics,<br />

mechanical engineering<br />

and computer-aided design.<br />

Volkswagen supports the<br />

International Chair in Automotive<br />

Engineering at NMMU.<br />

Rhodes University’s Centre for<br />

Environmental Water Quality, within<br />

the Institute for Water Research,<br />

is sponsored by Unilever.<br />

InnoVenton: NMMU Institute of<br />

Chemical Technology commercialises<br />

research and has several<br />

clients in the private sector.<br />

Colleges and schools<br />

The provincial government has<br />

committed a sum of R1.5-billion<br />

over five years to aligning TVET<br />

colleges more closely with the<br />

needs of the local economy<br />

through learnerships.<br />

The <strong>Eastern</strong> <strong>Cape</strong> has eight<br />

Technical and Vocational<br />

Education Training (TVET) colleges,<br />

most of which have more<br />

than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa,<br />

Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College.<br />

King Sabata Dalinyebo offers business and engineering studies among<br />

its formal programmes, and short courses in bricklaying and computer<br />

studies.<br />

Over 20 000 students are enrolled at this level in the province.<br />

The Eastcape Midlands TVET College has five sites: in Graaff-Reinet<br />

and Grahamstown and three in Uitenhage, where students can<br />

study <strong>Business</strong> Studies, Electrical Engineering, ICT and Computer<br />

Science and Mechanical Engineering. The other campuses specialise<br />

in <strong>Business</strong> Studies.<br />

Lovedale Public TVET College serves the community through<br />

three campuses at King William’s Town, Alice and Zwelitsha, near<br />

King William’s Town. The programmes of each campus reflect the<br />

economic priorities of that region.<br />

In Alice, the focus is on agriculture, King William’s Town offers<br />

business diplomas, while engineering is available to students at the<br />

Zwelitsha facility.<br />

Buffalo City TVET College, with two large campuses in East London<br />

and Mdantsane, specialises in <strong>Business</strong> and Engineering for full-time<br />

studies, but offers a wide range of part-time courses as well. The college’s<br />

School of Occupational Training is located at St Marks Road.<br />

In the <strong>Eastern</strong> <strong>Cape</strong>, more than 90% of children in public schools<br />

benefit from a non-fee policy. Grade R classes are attached to more<br />

than 90% of primary schools.<br />

The province’s school-nutrition programme feeds 1.6-million children,<br />

while the transport programme delivers approximately 56 461<br />

children to 614 schools.<br />

Infrastructure is still lacking in many areas, something that the developmental<br />

NGO Mvula Trust is putting right. With funding from the<br />

<strong>Eastern</strong> <strong>Cape</strong> Department of Education, the trust in 2016/17 provided:<br />

• 89 schools with sanitation<br />

• 1 676 toilets<br />

• 309 water tanks.<br />


<strong>Eastern</strong> <strong>Cape</strong> Department of Education: www.ecdoe.gov.za<br />

National Department of Basic Education: www.education.gov.za<br />

National Department of Higher Education: www.dhet.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

Ocean Sciences campus: www.oceansciences.mandela.ac.za<br />

Technology Innovation Agency: www.tia.org.za<br />

57 EASTERN CAPE BUSINESS <strong>2018</strong>


Banking and finance<br />

New banking licences are being issued.<br />

Agriculture and renewable energy are two of the most important<br />

economic sectors in the <strong>Eastern</strong> <strong>Cape</strong>. The first is as<br />

old as settlement in the province, the second has taken off<br />

only in the last few years: for both sectors, the banking and<br />

financial services sector is vital.<br />

All retail banks have agricultural desks, several finance agencies of<br />

provincial and national government have an agricultural focus, and<br />

most of the large agricultural companies have a range of financial<br />

products to offer farmers.<br />

Nedbank <strong>Business</strong> Banking has a new focus on agriculture, with<br />

business managers in Port Elizabeth, Humansdorp and East London<br />

all supported by agricultural specialists. Nedbank sponsors the Komga<br />

Show and the bank has paid out loans to the Humansdorp Co-Op<br />

which specialises in citrus and dairy products.<br />

In the far north-eastern part of the province, Nedbank, the WWF,<br />

and Environmental and Rural Solutions (ERS) are partners in a project to<br />

improve land use and to develop a cattle auction to assist farmers and<br />

buyers in the area to get better access to markets. In 2017 the fourth<br />

cattle auction was held at a specially developed site in Mzongwana.<br />

Improved grazing techniques are leading to better prices being paid<br />

by commercial farmers.<br />

The agreement that Absa <strong>Business</strong> Bank (ABB) signed with agricultural<br />

company BKB allows farmers to borrow money against their<br />

produce. The bank flagged the event as the precursor to a possible<br />

future agricultural bank. With ABB’s experience in the agricultural<br />

field, and BKB’s access to 19 000 primary producers, the agreement<br />

has the potential to unlock investment in the agricultural and agriprocessing<br />

sectors. BKB has a national presence, but its headquarters<br />

are in Port Elizabeth. It is active in many spheres and has a strong wool<br />

and mohair profile.<br />

Investment company PSG Group is one of the biggest investors<br />

in Capitec and is a majority shareholder in PSG Konsult, a financial<br />

services company. Like other companies of its type, PSG Konsult is<br />

present in the big <strong>Eastern</strong> <strong>Cape</strong> towns, but it also has a presence in<br />

regional centres such as Middelburg and Aliwal North. From the Karoo<br />

Midlands towns of Graaff-Reinet, Cradock, Adelaide and Somerset East,<br />

the firm of Gerber, Botha & Gowar dispenses financial advice across<br />


Nedbank and partners are<br />

raising incomes in a rural<br />

community.<br />

large parts of central South Africa.<br />

Standard Bank, which was<br />

founded in Port Elizabeth in<br />

1862, operates in 32 countries<br />

(20 in Africa), has nearly 69 000<br />

employees and assets in the<br />

region of $16-billion. Together<br />

with the other banks, consulting<br />

companies and other firms<br />

in the financial and business services<br />

sector, it is responsible of<br />

19.2% of the <strong>Eastern</strong> <strong>Cape</strong>’s Gross<br />

Domestic Product (StatsSA). The<br />

sector provides employment for<br />

141 000 people.<br />

In Port Elizabeth, there is a<br />

geographic concentration of financial<br />

services: the city’s own<br />

financial district stretches along<br />

a section of <strong>Cape</strong> Road from Mill<br />

Park to Newton Park and includes<br />

the Greenacres shop and office<br />

complex. This includes the offices<br />

of PSG Konsult, Liberty Life,<br />

Alexander Forbes, Hollard and<br />

Momentum. Nedbank <strong>Business</strong><br />

Banking has its headquarters<br />

just one block away from the<br />

Greenacres complex. Only AON<br />

appear to buck the trend, with<br />

offices in Central.<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Also on <strong>Cape</strong> Road and in the<br />

Greenacres complex is FNB’s regional<br />

office, FNB Newton Place.<br />

This building houses all the<br />

FirstRand group’s offices, such as<br />

Rand Merchant Bank, FNB Private<br />

Clients and FNB Online.<br />

Whereas the private sector is<br />

the biggest factor in the banking<br />

sector, the state is moving<br />

to create publicly-owned banks.<br />

Post Bank, a division of the South<br />

African Post Office, is far advanced<br />

in its application for a full banking<br />

licence and a further two<br />

state banks are planned: Ithala<br />

(currently an enterprise funder<br />

in KwaZulu-Natal) and a Human<br />

Settlements Development Bank,<br />

which will focus on housing for<br />

poorer households and statefunded<br />

housing projects. This<br />

may have relevance for a province<br />

such as the <strong>Eastern</strong> <strong>Cape</strong>, which<br />

has a large rural population.<br />

Several new licences for banks<br />

are in the pipeline, with the first<br />

of these being a digital bank. The<br />

banking licence issued in 2017 to<br />

Take Your Money Everywhere<br />

(Tyme, by Commonwealth Bank<br />

of Australia) is the first to be issued<br />

since Capitec was granted<br />

a licence by the South African<br />

Reserve Bank in 1999.<br />

Capitec is now a major player<br />

on the South African retail banking<br />

scene and has 117 branches<br />

or ATMs across the <strong>Eastern</strong> <strong>Cape</strong>,<br />

including Bizana and Lusikisiki.<br />

It now merits inclusion in a new<br />

retail “Big Five”, with Standard<br />

Bank, Absa, FNB and Nedbank.<br />

In terms of assets, the five biggest<br />

banks are Standard Bank,<br />

FirstRand (which owns FNB), Absa (which is part of Barclays Group<br />

Africa), Nedbank and Investec. According to the Reserve Bank, this<br />

group had 89% of market share in 2015.<br />

Another applicant for a new banking licence is Discovery, an existing<br />

giant on the JSE. With a market value of R83-billion and a wide range<br />

of products and services, it already has access to millions of customers.<br />

Life insurer MMI Holdings is entering a partnership with African Bank<br />

to enable it to start taking deposits and loaning money.<br />


Association for Savings and Investment South Africa:<br />

www.asisa.org.za<br />

Auditor-General of South Africa: www.agsa.co.za<br />

Chartered Institute for Government Finance, Audit and Risk<br />

Officers: www.cigfaro.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />

Financial Services Board: www.fsb.co.za<br />

59 EASTERN CAPE BUSINESS <strong>2018</strong>


Development finance and<br />

SMME support<br />

Aquaponics and forestry are receiving support.<br />

Training programmes for new business owners and young<br />

people, a commitment from the provincial government and<br />

from municipalities that goods and services will be sourced<br />

from small, medium and micro-enterprises (SMMEs) and loan<br />

financing for start-ups: these are among the initiatives in place to help<br />

small businesses and co-operatives in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

The provincial government has signed an agreement with the<br />

South African National Defence Force to take on young people to<br />

work on infrastructure maintenance and the Provincial Departments<br />

of Health and Education are making similar plans. There is a focus on<br />

agriculture, with the Office of the Premier and the Department of<br />

Rural Development and Agrarian Reform considering the creation of<br />

a fund to support training for young people and start-up enterprises<br />

in aquaculture and hydroponics.<br />

In terms of the Local Economic Development Procurement<br />

Framework, SMMEs will get 50% of all provincial government spending<br />

on goods and services. A database has been established.<br />

A programme of the National Department of Small <strong>Business</strong><br />

(DSBD) is to be rolled out at municipal level in the <strong>Eastern</strong> <strong>Cape</strong>. An<br />

amount of R6.6-million has been allocated to the Informal and Micro-<br />

Enterprise Development Programme (IMEDP). The DSBD has several<br />

other programmes to assist SMMEs and co-operatives. These include:<br />

• The Black <strong>Business</strong> Supplier Development Programme, a costsharing<br />

grant to promote competitiveness<br />

• The Co-operative Incentive Scheme, a 100% grant.<br />


SMMEs will receive R121-<br />

million in loans in 2017/18.<br />

The Small Enterprise Development Agency (Seda) is an agency of<br />

the DSBD and gives non-financial support to entrepreneurs through<br />

training, assistance with filling in forms, marketing and creating business<br />

plans. It helps small businesses draft applications for loan finance.<br />

The Seda Technology Programme (Stp) helps potential businesses<br />

become trading entities. Seda has a programme to make co-operatives<br />

and jointly owned enterprises stronger. Seda’s main provincial office<br />

is East London, with nine other offices located around the province.<br />

Several of Seda’s technology incubators are in the <strong>Eastern</strong> <strong>Cape</strong>. Port<br />

Elizabeth is the head office of the Chemin incubator which supports<br />

SMMEs in the downstream chemical sector. Furntech (a furniture incubator)<br />

has a branch in Mthatha<br />

and there are also construction incubators<br />

in the towns of Mthatha<br />

and Port Elizabeth.<br />

The Masisizane Fund offers<br />

loan financing at good rates and<br />

training through its <strong>Business</strong><br />

Accelerator programme. As a<br />

non-profit initiative of the Old<br />

Mutual Group, the fund focusses<br />

on the cash flow of potential businesses<br />

rather than insisting on<br />

security in the form of property.<br />

Since 2014, the agencies<br />

of the <strong>Eastern</strong> <strong>Cape</strong> Provincial<br />

Government have disbursed<br />

R337-million in loans to entrepreneurs<br />

in 748 businesses. For<br />

2017/18, an amount of R121-<br />

million has been allocated.<br />

The big retail banks have desks<br />

dedicated to promoting small enterprise<br />

and several agencies have<br />

a specific focus, for example the<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development<br />

Agency (ECRDA).<br />

In promoting forestry enterprise,<br />

the ECRDA reported in<br />

2015/16 having made R15-million<br />

available, while the <strong>Eastern</strong> <strong>Cape</strong><br />

Development Corporation (ECDC)<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



had contributed R8.3-million and<br />

the Development Bank of South<br />

Africa (DBSA) R64-million. This is<br />

a good example of the variety of<br />

funding available.<br />

The Industrial Development<br />

Corporation (IDC) is another<br />

financing institution that is active<br />

in the <strong>Eastern</strong> <strong>Cape</strong>. Several<br />

development agencies receive<br />

support from the IDC, for example<br />

the Nkonkobe Development<br />

Agency in the Amathole District.<br />

Two of the ECDC’s seven business<br />

units are devoted to small<br />

business: Development Finance<br />

and Enterprise Development. The<br />

ECDC has several financial products<br />

tailored to meet the various<br />

needs of business, entrepreneurs<br />

and investors, ranging from<br />

short-term to long-term finance<br />

and small- and micro-loans.<br />

The ECDC and the Technology<br />

Innovation Agency (TIA) jointly<br />

run the TIA-ECD Innovation Seed<br />

Fund Programme, which aims to<br />

identify and co-fund earlier stage<br />

technology innovation projects in<br />

the province.<br />

In its role as a provider of advice,<br />

the ECDC assisted a delegation<br />

from the Amahlubi Traditional<br />

Council when it attended the<br />

World Forestry Congress. This<br />

is part of the DBSA Jobs Funds<br />

Forestry projects. Help Desks<br />

have been established to support<br />

small business in Port Elizabeth<br />

and East London.<br />

One of the companies supported<br />

by the ECDC, outdoor furniture<br />

manufacturer PolyFibre Pty<br />

(Ltd), has received SABS approval<br />

for its products, which means the<br />

company can move to commercialisation. PolyFibre uses recycled<br />

plastic and pineapple waste to make its products.<br />

As part of its Small Contractor Development, Training and<br />

Community Participation programme, the South African National<br />

Roads Agency (SANRAL) offered training to 20 people from four SMME<br />

sub-contractors in the making of dolosse. Dolosse are the large interlocking<br />

blocks of concrete used to protect the N2 and railway line from<br />

the sea. Eight of the 2.5-ton dolosse are manufactured every day. The<br />

project’s main concrete subcontractor is Dynaform.<br />

The National Empowerment Fund (NEF) provides financial support<br />

from R250 000 up to R75-million for start-ups, the expansion of existing<br />

business, as well as the acquisition of equity. In the <strong>Eastern</strong> <strong>Cape</strong>,<br />

the NEF is supporting companies working in the fields of solar energy,<br />

restaurant franchises and transport.<br />

The Nelson Mandela Bay <strong>Business</strong> Chamber has a section devoted to<br />

SME support on its website and offers mentorship to start-ups and entrepreneurs.<br />

The Border-Kei <strong>Business</strong> Chamber has similar programmes.<br />

The Afrikaansehandelsinstituut (AHI) has rebranded as the Small<br />

<strong>Business</strong> Institute. Representing over a hundred chambers, the SBI is<br />

a member of <strong>Business</strong> Unity South Africa.<br />


<strong>Eastern</strong> <strong>Cape</strong> Development Corporation: www.ecdc.co.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />

National Department of Small <strong>Business</strong> Development:<br />

www.dsbd.gov.za<br />

National Small <strong>Business</strong> Chamber: www.nsbc.org.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />

Small Enterprise Development Agency: www.seda.org.za<br />

61 EASTERN CAPE BUSINESS <strong>2018</strong>


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

Government<br />

A guide to the <strong>Eastern</strong> <strong>Cape</strong>’s provincial government<br />

departments. Visit www.ecprov.gov.za<br />

Office of the Premier<br />

Premier: Phumulo Masualle<br />

State House, Independent Avenue,<br />

Bhisho 5605<br />

Tel: +27 40 609 6626<br />

Fax: +27 40 639 1419<br />

Website: www.ecprov.gov.za<br />

Department of Cooperative Governance<br />

and Traditional Affairs<br />

MEC: Fikile Xasa<br />

Tyamzashe Building, Room 2124, 2nd Floor, Bhisho 5605<br />

Tel: +27 40 609 5788/5789<br />

Fax: +27 40 639 2135<br />

Website: www.eclgta.ecprov.gov.za<br />

Department of Economic Development,<br />

Environmental Affairs and Tourism<br />

MEC: Sakhumzi Somyo<br />

2nd Floor, Beacon Hill, Hockley Close, King Williams Town 5600<br />

Tel: +27 43 605 7006/7216<br />

Fax: +27 43 605 7306<br />

Website: www.dedea.gov.za<br />

Department of Education<br />

MEC: Mandla Makupula<br />

Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha<br />

Tel: +27 40 608 4202<br />

Fax: +27 40 608 4247<br />

Website: www.ecdoe.gov.za<br />

Department of Health<br />

MEC: Dr Pumza Dyantyi<br />

Dukumbane Building, Independence Avenue, Bhisho 5605<br />

Tel: +27 40 608 1114<br />

Fax: +27 40 608 1118<br />

Website: www.echealth.gov.za<br />

Department of Human Settlements<br />

MEC: Helen Sauls-August<br />

31-33 Phillip Frame Road, Waverly Park, Chiselhurst, East London<br />

Tel: +27 43 711 9777<br />

Fax: +27 43 711 9785<br />

Website: www.ecdhs.gov.za<br />

Department of Roads and Public Works<br />

MEC: Thandiswa Marawu<br />

5 Qasana Building, Independence Avenue, Bhisho 5605<br />

Tel: +27 40 609 4648<br />

Fax: 086 298 5598 (SA)<br />

Website: www.ecdpw.gov.za<br />

Department of Rural Development<br />

and Agrarian Reform<br />

MEC: Mlibo Qoboshiyane<br />

Dukumbane Building , Independence Avenue, Bhisho 5606<br />

Tel: +27 40 609 3472<br />

Fax: +27 40 636 3462<br />

Website: www.drdar.gov.za<br />

Department of Safety and Liaison<br />

MEC: Weziwe Tikana<br />

Stellenbosch Park, Flemming St, Schornville,<br />

King William’s Town 5601<br />

Tel: +27 43 604 7414<br />

Fax: 086 298 5598<br />

Website: www.ecprov.gov.za<br />

Department of Social Development<br />

MEC: Nancy Sihlwayi<br />

Cnr Hockley and Hargreaves Streets, Beacon Hill,<br />

King William’s Town 5600<br />

Tel: +27 43 605 5210<br />

Fax: +27 43 605 5472<br />

Website: www.ecdsd.gov.za<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />



Department of Sports, Recreation,<br />

Arts and Culture<br />

MEC: Pemmy Majodina<br />

Wilton Zimasile Mkwayi Building, 5 Eales Street,<br />

King William’s Town 5600<br />

Tel: +27 43 604 4101 | Fax: +27 43 642 6759<br />

Website: www.ecsrac.gov.za<br />

Provincial Treasury<br />

MEC: Sakhumzi Somyo<br />

Provincial Treasury , Tyamzashe Building, Bhisho 5605<br />

Tel: +27 40 609 5755/5014<br />

Fax: +27 40 639 1030<br />

Website: www.ectreasury.gov.za<br />

Department of Transport<br />

MEC: Weziwe Tikana<br />

Stellenbosch Park, Flemming St, Schornville,<br />

King William’s Town 5601<br />

Tel: +27 43 604 7414 | Fax: 086 298 5598<br />

Website: www.ectransport.gov.za<br />

<strong>Eastern</strong> <strong>Cape</strong> Local Government<br />


Erf 1400, Ntsizwa Street, Mount Ayliff<br />

Tel: +27 39 254 5000 | Fax: +27 39 254 0343<br />

Email: info@andm.gov.za<br />

Website: www.andm.gov.za<br />

Matatiele Local Municipality<br />

Tel: +27 39 737 8100<br />

Fax: +27 39 737 3611<br />

Website: www.matatiele.gov.za<br />

Mbizana Local Municipality<br />

Tel: +27 39 251 0230<br />

Fax: +27 39 251 0917<br />

Website: www.mbizana.gov.za<br />

Ntabankulu Local Municipality<br />

Tel: +27 39 258 0056<br />

Fax: +27 39 258 0173<br />

Website: www.ntabankulu.gov.za<br />

Umzimvubu Local Municipality<br />

Tel: +27 39 255 8500<br />

Fax: +27 39 255 0167<br />

Website: www.umzimvubu.gov.za<br />


40 Cambridge Street, East London<br />

Tel: +27 43 701 4000 | Fax: +27 43 742 0337<br />

Email: info@amathole.gov.za<br />

Website: www.amathole.gov.za<br />

Amahlathi Local Municipality<br />

Tel: +27 43 683 5000 | Fax:+27 43 683 2970<br />

Website: www.amahlathi.gov.za<br />

Great Kei Local Municipality<br />

Tel: +27 43 831 1028 | Fax: +27 43 831 1483<br />

Website: www.greatkeilm.gov.za<br />

Mbashe Local Municipality<br />

Tel: +27 47 489 5800 | Fax: +27 47 489 5800<br />

Website: www.mbhashemun.gov.za<br />

Mnquma Local Municipality<br />

Tel: +7 47 401 2400 | Fax: +27 47 491 0195<br />

Website: www.mnquma.gov.za<br />

Ngqushwa Local Municipality<br />

Tel: +27 40 673 3095 | Fax: +27 40 673 3771<br />

Website: www.ngqushwamun.gov.za<br />

63<br />

EASTERN CAPE BUSINESS <strong>2018</strong>

Raymond Mhlaba Local Municipality<br />

Tel: + 27 46 7400<br />

Fax: +27 46 645 2562<br />

Website: www.raymondmhlaba.gov.za<br />



117 Oxford Street, Cnr North & Oxford Streets, Trust Centre, East London<br />

Tel:+27 43 705 2000 | Fax:+27 43 743 1688<br />

Website: www.buffalocity.gov.za<br />


15 Bells Road, Queenstown<br />

Tel: +27 45 808 4600 | Fax: +27 45 838 1556<br />

Website: www.chrishanidm.gov.za<br />

Emalahleni Local Municipality<br />

Tel: +27 47 878 0020 | Fax: 049 878 0112<br />

Website: www.emalahleni.gov.za<br />

Engcobo Local Municipality<br />

Tel: +27 47 548 5600 | Fax: +27 47 548 1078<br />

Website: www.engcobolm.gov.za<br />

Enoch Mgijima Local Municipality<br />

Tel: + 27 45 807 2606<br />

Fax: +27 45 807 2637<br />

Website: www.lukhanji.co.za<br />

Intsika Yethu Local Municipality<br />

Tel: +27 47 874 8700 | Fax: +27 47 874 0010<br />

Website: www.intsikayethu.gov.za<br />

Inxuba Yethemba Local Municipality<br />

Tel: +27 48 801 5000<br />

Fax: +27 48 881 1421<br />

Website: www.iym.co.za<br />

Sakhisizwe Local Municipality<br />

Tel: +27 47 877 5200<br />

Fax: +27 47 877 0000<br />

Website: www.sakhisizwe.gov.za<br />


Cnr Cole and Graham Streets, Barkly East<br />

Tel: +27 45 979 3000<br />

Fax: +27 45 971 0251<br />

Website: www.jgdm.gov.za<br />

Elundini Local Municipality<br />

Tel: +27 45 932 8100 | Fax: +27 45 932 1094<br />

Website: www.elundini.org.za<br />

Walter Sisulu Local Municipality<br />

Tel: + 27 51 653 1777<br />

Fax: + 27 51 653 0056<br />

Website: www.wslm.gov.za<br />

Senqu Local Municipality<br />

Tel: +27 51 603 1300 | Fax: +27 51 603 0445<br />

Website: www.senqumunicipality.co.za<br />



City Hall, Vuyisile Mini Square,<br />

Govan Mbeki Avenue, Nelson Mandela Bay<br />

Tel: +27 41 506 3208/9<br />

Fax: +27 41 506 2422<br />

Website: www.nelsonmandelabay.gov.za<br />


OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha<br />

Tel: +27 47 501 6400<br />

Fax: +27 47 532 6518<br />

Website: www.ortambodm.gov.za<br />

Ingquza Hill Local Municipality<br />

Tel: +27 39 252 0131<br />

Fax: +27 39 252 0699<br />

Website: www.ihlm.gov.za<br />

King Sabata Dalindyebo Local Municipality<br />

Tel: +27 47 501 4000 | Fax: +27 47 531 3128<br />

Website: www.ksd.gov.za<br />

Mhlontlo Local Municipality<br />

Tel: +27 47 553 7000 | Fax: +27 47 553 0189<br />

Website: www.mhlontlolm.gov.za<br />

EASTERN CAPE BUSINESS <strong>2018</strong> 64

Nyandeni Local Municipality<br />

Tel: +27 47 555 5000 | Fax: +27 47 555 0202<br />

Website: www.nyandenilm.gov.za<br />

Port St Johns Local Municipality<br />

Tel: +27 47 564 1207<br />

Fax: +27 47 564 1206<br />

Website: www.psjmunicipality.gov.za<br />



32 Govan Mbeki Avenue, Port Elizabeth<br />

Tel: +27 41 508 7111<br />

Fax: +27 41 508 7000<br />

Website: www.sarahbaartman.co.za<br />

Blue Crane Route Local Municipality<br />

Tel: +27 49 807 5700 | Fax: + 27 49 892 4319<br />

Website: www.bcrm.gov.za<br />

Dr Beyers Naude Local Municipality<br />

Tel: +27 49 807 5700 | Fax: +27 49 892 4319<br />

Website: www.camdeboo.gov.za<br />

Kouga Local Municipality<br />

Tel: +27 42 200 2200 | Fax: +27 42 200 8606<br />

Website: www.kouga.gov.za<br />

Kou-Kamma Local Municipality<br />

Tel: +27 42 288 7200 | Fax: +27 42 288 0797<br />

Website: www.koukammamun.co.za<br />

Makana Local Municipality<br />

Tel: +27 46 603 6131<br />

Fax: +27 46 622 9700<br />

Website: www.makana.gov.za<br />

Ndlambe Local Municipality<br />

Tel: +27 46 624 1140<br />

Fax: +27 46 624 2669<br />

Website: www.ndlambe.gov.za<br />

Sundays River Valley Local Municipality<br />

Tel: +27 42 230 7700/0077<br />

Fax: +27 42 230 1799<br />

Website: www.srvm.gov.za<br />

Municipalities in the <strong>Eastern</strong> <strong>Cape</strong><br />

Free State<br />


Alfred Nzo<br />

Matatiele<br />

KwaZulu-<br />

Natal<br />

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

Western<br />

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

Inxuba Yethemba<br />

Gariep<br />

Tsolwana<br />

Umzimvubu<br />

Senqu<br />

Maletswai<br />

Elundini<br />

Ntabankulu<br />

Joe Gqabi<br />

Mbizana<br />

OR Tambo<br />

Mhlontlo<br />

Ingquza<br />

Sakhisizwe<br />

Hill<br />

Inkwanca<br />

Emalahleni<br />

Nyandeni Port<br />

Engcobo<br />

St Johns<br />

King Sabata<br />

Chris Hani<br />

Dalindyebo<br />

Intsika Yethu<br />

Lukhanji<br />

Mbhashe<br />

Dr Beyers Naude<br />

Blue Crane Route<br />

Sarah Baartman<br />

Nxuba<br />

Makana<br />

Nkonkobe<br />

Mnquma<br />

Amahlathi<br />

Amathole<br />

Great Kei<br />

Ngqushwa<br />

Buffalo<br />

City<br />


Sundays River<br />

Valley<br />

Ndlambe<br />

Metropolitan/District Municipality<br />

Boundary<br />

Kou-Kamma<br />

Kouga<br />

Nelson Mandela Bay<br />

Local Municipality Boundary<br />

District Municipality<br />

Local Municipality<br />

Chris Hani<br />

Nxuba<br />

65<br />

EASTERN CAPE BUSINESS <strong>2018</strong>

INDEX<br />

INDEX<br />

Amatola Water........................................................................................................................................... IFC, IBC<br />

Black Management Forum (BMF)................................................................................................................. 10<br />

Blue Lagoon Hotel & Conference Centre................................................................................................... 21<br />

Border Kei Chamber of <strong>Business</strong>................................................................................................................... 26<br />

East London Industrial Development Zone (ELIDZ)......................................................................... 3, 11<br />

Maritz Electrical.................................................................................................................................................. 23<br />

Nedbank......................................................................................................................................................... 28-33<br />

Nelson Mandela Bay <strong>Business</strong> Chamber.................................................................................................... 24<br />

Old Mutual..................................................................................................................................................... 34-37<br />

POWERX................................................................................................................................................................. 16<br />

Premier Pallets................................................................................................................................................ OBC<br />

Ubank..................................................................................................................................................................... 12<br />

EASTERN CAPE BUSINESS <strong>2018</strong><br />


Amatola Water projects<br />

Bulk water and sanitation projects underway in the <strong>Eastern</strong> <strong>Cape</strong>.<br />

Amatola Water is implementing<br />

some of the<br />

<strong>Eastern</strong> <strong>Cape</strong>’s major<br />

capital projects that are<br />

geared to bring relief to droughtridden<br />

communities as well as to<br />

revitalise water and sanitation infrastructure<br />

in the province.<br />

Amatola Water is helping the<br />

OR Tambo District Municipality improve<br />

its water and sanitation services<br />

delivery to almost one million<br />

citizens in Mthatha and surrounds<br />

as part of the R3.4-billion King<br />

Sabata Dalindyebo Presidential<br />

Intervention.<br />

The intervention forms part of<br />

the masterplan to uplift the economic<br />

development of the Greater<br />

Mthatha area which continues to<br />

show good growth. It aims to maximise<br />

the use of the currently under-utilised<br />

yield from the Mthatha<br />

Dam through five strategic development<br />

corridors within a 40km<br />

radius of the town of Mthatha,<br />

namely: Libode, Ngqeleni, Nqadu,<br />

Mqanduli and the airport corridor.<br />

The regional water supply<br />

system will provide the necessary<br />

stability and assurance of supply<br />

that meaningful economic development<br />

requires, while the bulk<br />

sanitation infrastructure will ensure<br />

the environmental integrity<br />

of the Mthatha River and human<br />

health in the higher-density urban<br />

areas of Mthatha.<br />

The <strong>Eastern</strong> <strong>Cape</strong> Department<br />

of Education’s Schools Project is<br />

tackling bulk water and sanitation infrastructure at close on 200 schools<br />

throughout the province. Amatola Water is the department’s sole implementing<br />

partner for bulk water and sanitation infrastructure. The<br />

project, which has run over two years, comprises two phases: Phase 1,<br />

which includes the repair of the dilapidated water and sanitation infrastructure<br />

of special schools and hostels; and Phase 2 which is focused<br />

on the operation and maintenance of the infrastructure.<br />

In the current year, Amatola Water began work at 122 public ordinary<br />

schools, of which 19 have hostels. The work completed to date<br />

has been valued at over R21-million. An additional 10 special schools<br />

have also been included in the plan. The work this year also included<br />

addressing water emergencies at nine priority schools.<br />

Full-time process controllers and general workers have been appointed<br />

to oversee operations and maintenance at the various schools to ensure<br />

good water and effluent quality. In the current financial year, over 500 jobs<br />

have been created through the programme, 50 of which went to women.<br />

In Nelson Mandela Bay, the Nooitgedacht Bulk Water Supply Project<br />

will see its water supply from the Orange River surge to more than<br />

double by June 2019 when Amatola Water completes the third phase<br />

of extensions to the Nooitgedacht Water Treatment Works.<br />

The project consists of three parts: a 45-megalitre reservoir, the construction<br />

of a treatment works facility and the construction of related<br />

pipelines. It is a key augmentation project for the bulk water supply<br />

system of Nelson Mandela Bay Municipality. Once completed, it will feed<br />

about 70-million litres of water a day to the municipality.<br />

Nooitgedacht Bulk Water Supply Project.

Plastic Pallets<br />

buy and sell<br />

www.premierpallets.co.za<br />

083 756 6897 | pallets@premierpallets.co.za

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