Eastern Cape Business 2018 edition

christoffscholtz

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.

EASTERN CAPE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE EASTERN CAPE PROVINCE

2018 EDITION

JOIN US ONLINE

WWW.GLOBALAFRICANETWORK.COM | WWW.EASTERNCAPEBUSINESS.CO.ZA


Water Scarcity in South Africa

Sazile Qweleka, Amatola Water’s Operations Optimisation Manager,

presents the case for new thinking about wastewater recycling and re-use.

With most parts of South Africa experiencing a severe drought,

the severity of the water shortage in the country is inescapable.

Dam levels in the Eastern Cape continue to decline, despite rains

that have brought some relief. According to a recent report by the

National Department of Water and Sanitation, the total storage

of water in the Eastern Cape stands at 56.1%, compared to the

same time last year when the average dam levels were at 66.4%.

This trend, coupled with the severe drought conditions, an increasing

population and industrial growth, and environmental

degradation, forces us to look at accelerated innovations in water

resources and water services delivery in order to sustainably

meet future water demands.

In her budget speech in May 2017, the Minister of Water and

Sanitation, Nomvula Mokonyane, highlighted the country’s

heavy reliance on surface water as a concern. She added that it

was for this reason that the Department was planning to ensure

that there is a mix of surface and ground water, which includes

options such as groundwater; wastewater re-use (grey water);

desalination; and rainwater harvesting, among others.

Wastewater re-use, recycled or reclaimed or grey water refers to

former wastewater that has been treated to remove solids and

certain impurities, and then re-used for a variety of applications

including landscaping and irrigation, for example.

Although costly, many coastal cities appear to prefer desalination

as a solution to the water crisis. However, unlike its desalination

counterpart, an added advantage of wastewater recycling and

re-use is that it requires far less electricity.

A resource, not waste

We need to start dealing with wastewater differently and explore

wastewater re-use and recycling as a resource rather than waste.

Leading the cities in this area is the city of Durban, which is

home to the country’s first private water recycling plant. The

idea for the plant was born in 1993 out of concern for the area’s

increasing demand and limited water resources. This plant was

later commissioned in 2001.

The plant treats 47.5-million litres of domestic and industrial

wastewater to a near-potable standard for sale to industrial customers,

with an added benefit of a lower tariff when compared

to the normal tariff. The plant has helped to free up sufficient

drinking water for approximately 300 000 people in the area.

In turn, this has reduced the demand for potable water and

the quantity of effluent that is returned into the environment.

Using Durban as an example of a success story of how wastewater

recycling and re-use can be managed and used, it is clear that the

future of water sustainability lies in looking at sources of water

that will not only mitigate the effects of the drought, but also

complement the existing sources.


PROVIDING

high quality laboratory services and

reliable testing results to our clients

As the first ISO 17025:2005 accredited laboratory in the Eastern Cape, the Amatola Water lab is

assured to provide the highest standards of quality in laboratory services.

This nationally recognised accreditation confirms that Amatola Water has a quality management

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

standards, and provide reliable and accurate results data through a comprehensive water quality

monitoring and management programme - giving quality assurance to customers that water

quality standards are being met.

Amatola House

6 Lancaster Road, Vincent, East London

Tel: (043) 707 3700

aw@amatolawater.co.za

www.amatolawater.co.za


CONTENTS

CONTENTS

Eastern Cape Business 2018 Edition

Introduction

Foreword 5

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

Special features

Regional overview 6

The Eastern Cape is creating a new Big Five as maritime

activities, renewable energy and tourism grow in importance to

the provincial economy.

Renewable energy is creating new opportunities 14

The Eastern Cape is a wind power hot-spot.

International events are driving the tourism industry 18

St George’s Park cricket ground is a world leader in lighting.

Economic sectors

Agriculture 40

The Eastern Cape is South Africa’s top livestock provider.

Forestry 44

Thousands of hectares have been identified for new planting.

Aquaculture 45

An aquaponics project will provide food for poor people.

Agriprocessing 46

Expanding agriprocessing will create jobs.

Manufacturing 48

Clusters are promoting niche manufacturing.

Automotive and components 50

Beijing Automotive’s new factory is a major boost for the

sector.

Water 52

A large project is planned for the Umzimvubu River.

EASTERN CAPE BUSINESS 2018

4


ENGINEERED

EFFICIENCY

A SPECIALISED INDUSTRIAL COMPLEX FOR GROWTH ORIENTED

AUTOMOTIVE MANUFACTURERS

fluid pipes

sun visors

door modules

plastic

components

head liner

parcel tray

fuel tank

impact

dampers

wheels & tyres

cockpits carpets seat components

boot

liner

full exhaust system

suspension

components

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

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

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

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

the local and export market depart.

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

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

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

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

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

meet current and future demand.

Through the ELIDZ’s customised solutions, these component manufacturers are able to:

• Access dedicated utilities and services specially designed to stimulate industrial productivity, expansion and

export competitiveness

• Experience time and cost savings arising from shared logistical and supply chain arrangements

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

incentives, call us now.

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


CONTENTS

Education and training 54

Nelson Mandela University has launched an Ocean Sciences

Campus.

Banking and financial services 56

New banking licences are being issued.

Development finance and SMME support 58

Aquaponics and forestry are receiving support.

Government

Eastern Cape Provincial Government 60

An overview of the Eastern Cape provincial government

departments.

Eastern Cape Local Government 61

An overview of the Eastern Cape municipalities.

References

Sector contents 38

Index64

Maps

Eastern Cape regional map. 9

Eastern Cape municipal map. 63

Free State

LESOTHO

KwaZulu-

EASTERN CAPE PROVINCE

Rouxville Zastron

Matatiele Natal

Britstown

Bethulie

Ixopo

R56

N12 De Aar

Mount

Aliwal North

Colesburg Oviston

Lady Grey

Mount Kokstad

Northern Cape

R58

Fletcher

Ayliff

Burgersdorp

Port Edward

Hanover

Jamestown Barkly

R61

N10

East Maclear Mount Frere

N1

Steynsburg

N6 Dordrecht

N2

Victoria West

R56

Middelburg

Molteno

Elliot

Lusikisiki

Indwe

Hofmeyr

Mthatha

Three Sisters

Queenstown

Port St Johns

R61

Western Cape

Tsomo

Tarkastad

Coffee Bay

Beaufort West Graaff-Reinet

Cradock

Sada Cathcart

N

R61

R63 Somerset

Aberdeen

Stutterheim

Butterworth

Pearston East Adelaide Fort

Komga

N9

Beaufort

Cookhouse

Bhisho N2

Klipplaat

Rietbron

N10

King William's

Town EAST LONDON

Willowmore

Kirkwood

Grahamstown

Steytlerville

Paterson

N2

Hamburg

INDIAN OCEAN

Uniondale

R72

Joubertina

N9

Uitenhage

Port Alfred

Motorway

Knysna N2

Humansdorp

Main Road

Kareedouw

PORT ELIZABETH

Railway

Plettenberg Bay

Jeffreys Bay

EASTERN CAPE BUSINESS 2018

6


CREDITS

Publisher: Chris Whales

Publishing director: Robert Arendse

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Rugshaana Abrahams and

Tyra Martin

Production: Lizel Olivier

Ad sales: Sydwell Adonis, Nigel

Williams, Gavin van der Merwe,

Sam Oliver, Gabriel Venter,

Jeremy Petersen, Shiko Diala, Joseph

Gumbo, Vanessa Wallace, Reginald

Motsoahae and Siya Sthunda.

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

Eastern Cape Business

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.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

CREDITS

DISTRIBUTION

Eastern Cape Business is distributed internationally on outgoing

and incoming trade missions, through the Eastern

Cape Development Corporation (ECDC); to foreign offices in

South Africa’s main trading partners around the world; at top

national and international events; through the offices of foreign

representatives in South Africa; as well as nationally and

regionally via chambers of commerce, tourism offices, trade

and investment agencies, provincial government departments,

municipalities and companies, as well as major airport lounges.

COPYRIGHT | Eastern Cape Business is an independent publication published

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

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

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

permission of Global Africa Network Media (Pty) Ltd. CREDITS | Cover:

Globeleq’s Jeffreys Bay wind farm has installed capacity of 138MW and

was one of the first wind power facilities to come on stream as part of

the national governmnet’s independent power producers’ programme.

Pictures supplied by Thinkstock.com, VW South Africa, Nelson Mandela

University and Transnet National Ports Authority.

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

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

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

ISSN 1995-1310

DISCLAIMER | While the publisher, Global Africa Network

Media (Pty) Ltd, has used all reasonable efforts to ensure that

the information contained in Eastern Cape Business is accurate

and up-to-date, the publishers make no representations as to the

accuracy, quality, timeliness, or completeness of the information.

Global Africa Network will not accept responsibility for any loss or

damage suffered as a result of the use of or any reliance placed

on such information.

7

EASTERN CAPE BUSINESS 2018


A REGIONAL OVERVIEW OF THE

EASTERN CAPE PROVINCE

The Eastern Cape is creating a new Big Five as maritime activities, renewable

energy and tourism grow in importance to the provincial economy.

The Big Five is a well-known concept describing

the most sought-after game animals

to be spotted on safari. The Eastern

Cape is moving towards an economic

equivalent, where five sectors will underpin the

provincial economy. For many years the Eastern

Cape has relied on two giants to drive growth:

agriculture and the automotive industry.

The latest trends suggest that three other sectors

are playing an important role in advancing economic

progress in the coastal province: the maritime

sector (including oil and gas and logistics); renewable

energy (primarily wind); and an expanded

tourism sector.

Historically, wool and ostrich feathers were the

region’s first exports and these items are still in the

export basket (with wool more prominent than ostrich

feathers). In time, the Eastern Cape also became

a global leader in mohair, the luxury fibre taken

from Angora goats. This position has strengthened

in recent years. The fertile Langkloof Valley in the

west has enormous deciduous fruit orchards and

the Alexandria and Grahamstown area produces

pineapples, chicory and dairy products. The Eastern


SPECIAL FEATURE

Cape is the leading livestock province in terms of

numbers of sheep and cattle and produces a quarter

of South Africa’s milk.

The manufacturing facilities of Volkswagen

South Africa (in Uitenhage) and Mercedes-Benz

South Africa (East London) are at the core of the

province’s important automotive sector. It was to

support this sector that industrialisation took place

in the province. Smelters and metal works were

built to service car makers and automotive component

manufacturers. Ford engines are built in Port

Elizabeth and a wide range of makers of automotive

glass, catalytic converters, vehicle tyres and other

parts are found in Uitenhage, Port Elizabeth and

at the Industrial Development Zone (IDZ) in East

London.

New investments into this sector are coming

from both international and local investors. Two

Chinese car makers have recently invested in the

Coega IDZ, First Automotive Works (FAW) and

Beijing Automobile Corporation (BAIC). Local giants

Volkswagen SA and Mercedes-Benz SA have

invested heavily in increased capacity for new lines

of production.

New impetus

The three sectors identified above have all received

significant boosts in recent months.

In the maritime sector or Oceans Economy,

national government has named the Coega IDZ

as the site for a 1 000MW Liquefied Natural Gas

(LNG) plant. The value to the regional economy of

the project is estimated at R25-billion. A gas-fired

power plant (Dedisa) started operating at Coega

in 2016, and there are plans to expand this sector.

Since the company Aegean Bunkering Marine

Services was licensed in 2016 by the South African

Maritime Safety Authority (SAMSA) and Transnet

to supply bunker fuel to ships passing through

Algoa Bay, an additional 845 ships have used

these services, adding more than R70-million to

the local economy.

With the purchase by large companies like

Statoil from Norway of a significant stake in exploration

rights off the coast of the province, interest

in offshore drilling is picking up. ExxonMobil is the

approved operator of the Transkei-Algoa licence

area, which covers about 45 000km². Statoil is in

another partnership with OK Energy in another

field. Exploration activity will mean more work

on the maintenance and supply of ships in East

London and Port Elizabeth.

The launch of a specialist Ocean Sciences

Campus at the Nelson Mandela University is another

factor supporting the growth of maritime

activities.

The renewable energy sector is similarly supported

by educational institutions in the province,

which provide research and skilled graduates who

can take up jobs in the sector. The University of

Fort Hare is studying biogas as a possible fuel for

public transport in partnership with the United

Nations Industrial Development Organisation

and United States Agency for International

Development.

The Eastern Cape has become the country’s

top site for wind farms and the East London IDZ,

using turbines made by a local manufacturer,

Adventure Power, aims to bolster supply security

with its own 1.8MW wind farm.

The overall picture for renewable energy in the

province is positive, but there have been setbacks,

not least in the closure of DCD Wind Towers, an

Industrial Development Corporation-backed venture

that was supposed to manufacture wind towers

from its plant in the Coega IDZ. Uncertainty

about the national independent producers’ programme

led to the plant’s closure in 2016.

The Eastern Cape’s beaches and natural beauty

have been attractive to tourists for many years,

but recent initiatives to expand the province’s offerings

are paying off. With a focus on events and

“adventure tourism”, visitor numbers are steadily

growing. The province aims to be a “Top Three”

domestic destination by 2020. Spending by tourists

has grown from R2.4-billion in 2013 to R4.1-

billion in 2015 and the average length of stay (5.3

days) is the best in South Africa.

Recent investments by the Eastern Cape Parks

and Tourism Agency include the construction of

a conference centre at the Cape Morgan Nature

Reserve. The hosting of the 2018 IRONMAN 70.3

9 EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE

World Championship event is evidence that the

strategy of attracting events to the Eastern Cape is

working. There will be significant financial spin-offs

from this international event.

Assets

The Eastern Cape extends over 169 580 square

kilometres, representing 13.9% of South Africa’s

land mass. The dry western interior is one of the

country’s premier sheep-rearing destinations.

The mountainous regions of the north and east

of the province support timber plantations while

the coastal belt in the south-west is well-watered

and is good for dairy farming. The province has

spectacular beaches stretching from the surfer’s

paradise at Jeffreys Bay all the way to the famed

Wild Coast.

Two major airports at Port Elizabeth and

East London provide good air links and smaller

towns such as Mthatha and Bhisho have airports.

Mthatha has recently received upgrades and SA

Express has added five direct flights per week to

and from Cape Town.

The Umzimvubu Multipurpose Development

Project is a large development plan that incorporates

a multi-purpose dam to supply water for new

irrigation, hydropower generation and domestic

water supply.

The Eastern Cape Development Corporation is

a development financier and it is supporting enterprises

in the growing ICT and film sectors through

the Eastern Cape Information Technology Initiative

(ECITI).

Alfred Nzo District Municipality

Towns: Matatiele, Mount Frere, Mount Ayliff

The smallest district is in the mountainous northeast,

with hiking trails for tourists. There is scope

for expansion of tourist activities, and a transfrontier

park between South Africa and Lesotho could

boost the area’s economy.

Subsistence agriculture and forestry are the major

economic activities. There have been several

investments in forestry in recent years.

Amathole District Municipality

Towns: Cathcart, Stutterheim, Morgan Bay,

Willowvale, Butterworth, Mazeppa Bay, Alice,

Bedford

The rural Amathole District surrounds the metropolitan

area of Buffalo City. Pineapple and forestry

are two of the most important agricultural activities.

Popular resorts on the Wild Coast attract many

tourists to the area. Hogsback and other towns near

the Amatole Mountains offer beautiful scenery and

popular beaches. The main campus of the University

of Fort Hare is located at Alice.

Sarah Baartman District Municipality

Towns: Graaff-Reinet, Humansdorp, Jeffreys

Bay, Grahamstown

The western part of the province contains the biggest

municipality and is one of the biggest contributors

to provincial GDP. Large commercial farms in

the Karoo produce high-quality meat, wool and

mohair, while the coastal belt has dairy farming

and some forestry. The Kouga Valley is a big deciduous

fruit producer, while the Kirkwood/Addo area

is known for its citrus. Sarah Baartman has three of

the region’s national parks and several private game

farms. Grahamstown hosts the National Arts Festival,

Rhodes University and several fine schools.

Chris Hani District Municipality

Towns: Middelburg, Molteno, Dordrecht,

Cradock, Queenstown, Lady Frere, Elliot

Sheep farming is an important part of the economy.

Some coal is found in the north and tourist activities

include fly-fishing. The Foodcorp factory in Molteno

manufactures Ouma rusks. Queenstown is a centre

for cattle farming and has some manufacturing

activities. The Mountain Zebra National Park is near

Cradock. The Grootfontein Agricultural College and

Research Station is in Middelburg, and the Marlow

Agricultural College is near Cradock.

OR Tambo District Municipality

Towns: Mthatha, Coffee Bay, Port St Johns,

Qumbu, Bizana, Flagstaff

OR Tambo District Municipality encompasses

some of the province’s least-developed areas and

EASTERN CAPE BUSINESS 2018

10


SPECIAL FEATURE

contains one of South Africa’s most important

ecological areas, the Pondoland Centre of Plant

Endemism. Mining is already pursued in some

areas but plans for titanium mining on seaside

dunes are being contested. A Wild Coast Spatial

Development Initiative exists to plot further development.

Forestry is a big employer.

Joe Gqabi District Municipality

Towns: Aliwal North, Burgersdorp, Lady Grey,

Rhodes, Barkly East, Ugie

Cattle and sheep farming make up 80% of land

use, while commercial forestry is a big contributor

to employment. There are large forestry

plantations at Ugie and Mount Fletcher. Maize is

grown along the Orange River and wheat in the

foothills of the Drakensberg mountains. Tiffindell

has been revived as a ski resort.

Quick facts:

Capital: Bhisho

Major cities: Buffalo City Metropolitan Municipality

(Bhisho, East London and King William’s Town) and

Nelson Mandela Bay Metropolitan Municipality,

(Port Elizabeth and Uitenhage)

Languages: 78.8% isiXhosa, 10.6% Afrikaans, 5.6%

English

Population: 6.9-million

Share of total South African population: 12.7%

The province’s population of 6.9-million makes it

the country’s third most populous province, with

about 15% of the national population.

EASTERN CAPE PROVINCE

Free State

LESOTHO

KwaZulu-

Natal

Rouxville Zastron

Matatiele

Britstown

Bethulie

Ixopo

R56

N12 De Aar

Mount

Aliwal North

Colesburg Oviston

Lady Grey

Mount Kokstad

Northern Cape

R58

Fletcher

Ayliff

Burgersdorp

Port Edward

Hanover

Jamestown Barkly

R61

N10

East Maclear Mount Frere

N1

Steynsburg

N6 Dordrecht

N2

Victoria West

R56

Middelburg

Molteno

Elliot

Lusikisiki

Indwe

Hofmeyr

Mthatha

Three Sisters

Queenstown

Port St Johns

R61

Western Cape

Tsomo

Tarkastad

Coffee Bay

Beaufort West Graaff-Reinet

Cradock

Sada Cathcart

N

R61

R63 Somerset

Aberdeen

Stutterheim

Butterworth

Pearston East Adelaide Fort

Komga

N9

Beaufort

Cookhouse

Bhisho N2

Klipplaat

Rietbron

N10

King William's

Town EAST LONDON

Willowmore

Kirkwood

Grahamstown

Steytlerville

Paterson

N2

Hamburg

INDIAN OCEAN

Uniondale

R72

Joubertina

N9

Uitenhage

Port Alfred

Motorway

Knysna N2

Humansdorp

Main Road

Kareedouw

PORT ELIZABETH

Railway

Plettenberg Bay

Jeffreys Bay

11

EASTERN CAPE BUSINESS 2018


INTERVIEW

Black Management

Forum – Eastern Cape

Building a capable development state.

Please outline the main objectives of the Black Managenent

Forum.

The BMF is a non-racial, thought leadership organisation founded in

1976, with the main purpose of influencing socio-economic transformation

in pursuit of socio-economic justice, fairness and equity. The BMF

has been keeping corporate South Africa in check and encouraging

participation of the broader South African stakeholders. The organisation

stands for the development and empowerment of managerial

leadership, primarily among black people, within organisations and

the creation of managerial structures and processes which reflect the

demographics and values of the wider society. Whereas the BMF is

non-partisan, it is not apolitical. The BMF is not neutral on matters of

transformation but rather pro-transformation.

Cuma Dube, Provincial

Secretary - BMF Eastern Cape

What is the BMF’s current focus?

Public sector reform for the building of a capable development state

and understanding the role of the black professional in driving the

transformation agenda.

What are the most recent achievements of the BMF in the

Eastern Cape?

The BMF Eastern Cape in 2017 successfully provided a platform and

hosted panel discussions regarding the challenges facing black professionals

in public service. The discussions tackled the roles of officials,

managers and politicians; procurement and corruption; managerial

excellence, the recruitment and the retention of the best talent into

public service. The role of the black professional was interrogated and

whether there is reputational risk for the black professional in public

service. These discussions culminated in a research report with which

we aim to continue our engagements with the political leadership,

civil society, labour and government officials towards strengthening

the state.

The Black Management Forum has always enjoyed a cordial and

productive relationship with other civil society organisations, labour and

the government. Our events and programmes are regularly attended

by representatives of these organisations and institutions and ideas are

shared in the Eastern Cape. Communication, coordination and bilateral

initiatives can be improved. There is real work to be done in the Eastern

Cape and it must begin with strengthening these relationships.

BIOGRAPHY

With an LLB from the University

of Fort Hare, a Master’s in

Sustainable Development and

a diploma in development and

renewable energy, Cuma Dube

advises the Chris Hani District

Municipality on low emissions

and is the Managing Director

of SIG Energy. Cuma is the former

Executive Director of the

Eastern Cape Youth Chamber

of Commerce and was the BMF

Eastern Cape’s Young Professional

of the Year (2015) and in

The Sowetan’s Top 100 Young

Bosses of the Year (2016).

EASTERN CAPE BUSINESS 2018

12


East London Industrial

Development Zone

INTERVIEW

Incentives are attracting new investors, as ELIDZ Chief

Executive Officer, Mr Simphiwe Kondlo, explains.

What are the most attractive incentives for investors?

A number of incentives assist our investors to lower their operational

costs and maximise their profits. Specialised Customs Controlled

Area benefits include: VAT exemption on imported goods, capital

equipment and electrical and water supply; no import duties on raw

materials and other consumables for manufacture, goods for storage

and capital goods used in the custom controlled area. There are also

specialised local incentives such as preferential land rental and utility

rates, competitively priced land, access to national manufacturing and

other generic government incentives. Additionally, after the finalisation

of the transition process from an IDZ to a Special Economic Zone (SEZ)

there will be new incentives such as reduced corporate income tax.

Simphiwe Kondlo

Have you received any new investments?

Despite the gloomy economic outlook, the ELIDZ managed to buck

the trend and surpass its own investment target by attracting four

new investors valued at R1.6-billion combined. These developments

augur well for the diversification of our investment portfolio. Once fully

operational, the new investments will yield an estimated 1 422 jobs.

Our geographic location, quality sea and airports, abundance of

natural resources, skills and world-class infrastructure bodes well for

the growth of export-oriented industries. As such, the ELIDZ has hosted

numerous delegations on fact-finding missions.

What support services does the ELIDZ offer?

We offer soft landing support to investors through the provision of

business streamlining and support services. These aid investors in

the completion of investments and the start-up of local operations.

A skilled team of experts assists with relocation planning, market

research and intelligence, business set-up requirements including

company registration, compliance, access to government services

and incentives, labour recruitment and skills development facilitation.

Will the upgrades to the Port of East London assist?

Our value proposition rests heavily on access to sound infrastructure

such as freight, road and rail. Government has been making notable

progress in revitalising infrastructure for the good of the region.

Upgrades to the port will grow our international footprint and further

widen the scope of the ELIDZ.

BIOGRAPHY

Mr Simphiwe Nicholas Kondlo,

the Chief Executive Officer of

the ELIDZ, holds a Master’s

Degree in Engineering Management

and has more than

23 years’ experience spanning

various fields including civil and

agricultural engineering. With

him at the forefront, the ELIDZ

is a front-runner in the field and

continues to flourish as a multisector

Industrial Development

Zone.

13

EASTERN CAPE BUSINESS 2018


FOCUS

A bank focused on U

Ubank—servicing the broader working market in South Africa since 1975.

Long-standing financial services provider,

Ubank has grown over the years and has

succeeded in entrenching itself primarily

within the gold and platinum mining

communities.

For over 40 years, Ubank has provided basic financial

services to mineworkers and their families.

Initially called Teba Cash Financial Services, the

entity was formed to provide mineworkers with

basic financial services during a time when other

financial institutions largely ignored this sector

of the market.

These included facilitating the remittance of

funds to families and dependents in the rural and

labour-sending areas using a linked account facility.

In the early 1990s, as South Africa was undergoing

fundamental political change as a country, the

Godsell, Motlatsi Commission was formed. This led

to the transition from a savings fund into a commercial

bank. In June 2000, Ubank (then Teba Bank),

was granted a banking licence, although its ownership

remained in the form of a trust managed by

trustees who were elected by the National Union of

Mineworkers (NUM) and the South African Chamber

of Mines. The beneficiaries of the trust are the bank’s

customers.

In 2006, it was decided by NUM in conjunction

with the Congress of South African Trade Unions

(COSATU) to extend the banking services to other

workers and it was, in reality, a workers bank. Ubank

comes from a tradition of savings and has continued

to strongly promote savings as part of its offering.

In 2007, Ubank welcomed a new vision, mission,

set of values and strategy. Essentially, this saw Ubank

set itself up to become the “Workers Bank of Choice”.

In October 2010, the name of the bank was

changed to Ubank and was launched as a retail

bank for the mass market. Since the birth of the new

brand and strategy, various initiatives to improve

and expand the business have been delivered.

The need for this change was driven by the desire

to extend services beyond the niche market that

Ubank had traditionally serviced, broadening its

customer base and introducing products and services

relevant to this market. The first phase of the

re-positioning focused on changing the corporate

identity and introducing an innovative packaged

product range relevant to the needs of the people of

South Africa, entrenching the bank amongst workers,

their families and their communities.

The Ubank name was derived from the bank’s

proud identity, heritage and uniqueness. The logo

represents the fingerprint of the workers who have

built the bank over 40 years into a truly homegrown

South African bank. Ubank serves the primary banking

needs of close to 500 000 individuals, safeguarding

over R3 billion worth of their deposits.

Ubank offers basic banking products that

can be described as follows:

• Transaction accounts

• Debit cards (issued with VISA)

• Lending products (e.g personal loans)

• Savings (fixed deposits, Save Together)

• Funeral plan products

• Cellphone banking (SMS notifications).

Ubank is driven by a social consciousness that

underpins all they do – their customers are their

owners and they exist to serve them through

the provision of financial services that meet their

changing needs and improve their lives. One of

the pillars driving the Ubank business strategy is

community development. Investing in the communities

in which they operate forms a critical

part of how they do business, hence the bank’s

commitment to allocate 4% of the pre-tax profits

to community development annually.

Driven by the social objective of improving

the quality of their community’s lives, Ubank’s

EASTERN CAPE BUSINESS 2018

14


CSI focus is on empowering its communities

through community investment in sustainable

educational programmes.

The nature of the business ensures that community

development and participation remains

at the core of how Ubank conducts its business.

This is to ensure that continuous and sustainable

community investment initiatives are made that

benefit their customers and the communities

where they operate.

The mandate and plan to service the broader

working market in South Africa have become

imperative in order to extend affordable financial

services to South Africa. Ubank has a strong

presence and customer accessibility and they are

proud of their long association with the mining industry,

including mineworkers, mining companies,

all Labour Unions and the Chamber of Mines, who

have played a significant role in the development

of this bank.

15

EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE

Renewable energy is creating new

opportunities

The Eastern Cape is a wind power hot-spot.

The Eastern Cape is home to two of the

eight Renewable Energy Development

Zones (REDZs) designated in a national programme.

The Environmental Management

Services unit within the Council for Scientific and

Industrial Research (CSIR) was responsible for identifying

suitable areas around the country. They had

to meet three criteria: the presence of good wind

or solar resources, good environmental conditions

that could withstand the presence of solar panels or

wind turbines and a high need for socio-economic

development.

Cookhouse and Stormberg are the two Eastern

Cape areas that are REDZ and hopes are high that

these concentrations of activity will lead to economic

growth and the creation of jobs for local communities.

There are already 12 wind farms in the Eastern

Cape. Because of this concentration of facilities, the

South African Wind Energy Association (SAWEA)

chose the province for its first SAWEA Provincial

Community Trust Workshop. With large amounts of

money coming into communities, proper attention

must be paid to who decides how that money is to

be spent and some regional planning is needed.

It does not make sense for each wind farm and its

closest community to plan a school and a crèche

if that is what the neighbouring community is also

planning. Community trusts have been established

as each of the independent power producers must

involve communities living within a 50km radius of

a wind farm.

Brenda Martin, CEO of SAWEA, outlined some of

the issues tackled at the workshops, “We explored a

range of approaches that are applied when establishing

the trusts for the benefit of local communities.

Many of the initiatives are focused on education,

health and the empowerment of women.”

The National Department of Energy has a programme

to attract private investment in renewable

energy, the Renewable Energy Independent Power

Producer Procurement Programme (REIPPPP).

According to figures released by the Department

of Energy, the REIPPPP by 2016 had not only delivered

multiple millions in investments, but also created

more than 30 000 jobs and benefited local community

development to the tune of R256-million.

However, the national utility, Eskom, has created some

uncertainty by refusing to sign new power purchase

agreements.

Although Eskom’s shareholder, the Minister of

Energy, said that the REIPPPP was still government

policy, it was not until 2017 that the process was

started again, but this time with a limit imposed by

the state on how much could be charged for energy

in new contracts.

Fully a quarter of the projects so far approved

in this national programme have been allocated

to the Eastern Cape with 91% of these being wind

projects and the balance solar photo-voltaic. A vast

new industry has been created in a very short space

of time, and investors still have an appetite for more.

If the power produced through the REIPPPP were

consumed where it is made, the Eastern Cape would

soon be producing 60% of its own needs (the power

is in fact sent to the national grid for redistribution).

The province consumed 8 358GWh electricity in 2015

or 3.7% of the national total.

The average lead time in the projects that have

so far been approved in the province is two years,

with local content averaging out at about 47%. When

the projects are complete, R142.9-billion will have

been spent on procurement, R65.7-billion of which

will be local.

Wind projects in the province include

Globeleq’s 138MW Jeffreys Bay facility, the 140MW

EASTERN CAPE BUSINESS 2018

16


SPECIAL FEATURE

Cookhouse project (African Clean Energy

Developments) and two run by Cennergi

at Tsitsikamma (94MW) and Bedford

(134MW). Cennergi is a joint venture between

South African resources company

Exxaro and Indian company Tata Power.

There are several other projects with capacities

ranging from 20MW to 97MW.

Scatec Solar has commissioned a plant

in Burgersdorp. The 75MW plant has panels

mounted on single axes, enabling

them to track the sun and optimise electricity

generation by a further 20%.

The Coega IDZ is working on positioning

itself as a renewable energy

hub. The Department of Trade and

Industry (dti) offers various green

technology incentives.

POWERX IS ROLLING OUT

GREEN ENERGY

POWERX has

recently signed

up with AKM

Foods to supply power to all the KFC

outlets in Nelson Mandela Bay. KFC, as

the largest quick service restaurant in

South Africa, has shown huge commitment

to growing the green economy by

making great strides in transforming the

energy landscape in Nelson Mandela Bay.

POWERX has also signed up with

Mondelez to supply power to its head

office and operations in Port Elizabeth.

Mondelez as a global company has

shown dedication to sustainability and

reducing their carbon emissions by consuming

power supplied by POWERX.

POWERX now supplies over 40 national

and local customers in Nelson Mandela

Bay and its aim is to expand the number

of customers supplied exponentially

over the next several years.

17 EASTERN CAPE BUSINESS 2018


POWERX

Stimulating the use of clean power.

POWERX is the pioneer in the trading of electricity

in South Africa and is supplying various businesses

with “green” power.

POWERX holds a NERSA-issued electricity trading

licence which allows it to buy and sell power generated

from renewable/clean resources, using the national

grid network to facilitate such trade. POWERX

uses the municipal grid network where such agreements

exist with the relevant municipalities.

Renewable Energy Certificates (RECs) provide proof

of origin that the power has been generated from

a renewable resource. This represents additional

value for the customer and shows commitment to

reducing carbon emissions.

POWERX is focused on the end goal of stimulating

the production and consumption of clean power

in South Africa.

As an aggregator, POWERX is able to assume and

actively manage the risks that generators and customers

cannot assume or mitigate themselves.

POWERX currently operates exclusively in Nelson

Mandela Bay Municipality, however we have recently

secured agreements with the Umjindi and Mandini

municipalities which enables us to use their distribution

network to trade in that territory. POWERX is

well advanced in its plan to expand its footprint to

cover more municipal regions across South Africa.

DYNAMIC PROPOSITION

POWERX offers a dynamic value proposition to

municipalities which includes stimulation of the

generation of power within the municipal borders,

boosting local economic development, reduction

in carbon emissions, revenue protection through

active management of embedded generation to

avoid grid defection, and cost avoidance through

reduction in existing ancillary electricity charges.

The procurement of power via POWERX ensures

predictability of annual cost increases and also allows

us to provide a discount on power supplied

to customers depending on their respective tariff

structure.

CONTACT INFO

Physical address: 6th Floor, The Mall Offices, 11

Cradock Ave, Rosebank, Johannesburg,

Telephone: 0861 POWERX (769379)

Email: info@POWERX.energy

Website: http://www.powerx.energy

EASTERN CAPE BUSINESS 2018

18


19

EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE

International events are driving

the tourism industry

St George’s Park cricket ground is a world leader in lighting.

The Eastern Cape has superb beaches

and magnificent game parks and nature

reserves. The fact that parks such as the

Addo Elephant National Park are malariafree

at all times is an additional selling point for

foreign visitors.

Port Elizabeth is the end-point of the famous

Garden Route, which extends westwards to Cape

Town. Golfers in search of the rare pleasures of

links golf have two courses to savour in Port

Elizabeth (Humewood Golf Club) and St Francis

Links, just an hour down the coast.

East London has its own fine beaches and is

the logical starting point for trips to the magical

Wild Coast. The interior of the Eastern Cape is

home to several high-end private game reserves

such as Shamwari, Mount Camdeboo and Kariega

Game Reserve.

Some luxury game lodges are located within

national parks, such as the Gorah Elephant Camp,

which is run by Hunter Hotels and forms part of

the Addo Park. Luxury brands sometimes create

a chain for their customers, so visitors might

stay at the boutique Summerstand hotel in Port

EASTERN CAPE BUSINESS 2018

20


SPECIAL FEATURE

Elizabeth, No5 By Mantis, on their way to another

Mantis property, the Oceana Beach and Wildlife

Reserve.

The Eastern Cape Parks and Tourism Agency

runs 34 provincial nature reserves within the

province. The Addo Elephant National Park is arguably

the province’s greatest attraction and is

under the control of South African National Parks.

Addo extends over 180 000 hectares on land (with

thousands more square metres in the marine reserve)

and attracts more visitors than East Africa’s

Serengeti National Park. Addo uniquely offers visitors

the opportunity to view the Big Seven, as it

has more than 650 elephants, along with the rest

of the Big Five. The park includes a marine section

where great white sharks and whales can be

sighted. The Camdeboo, Mountain Zebra and

Garden Route national parks offer terrains ranging

from dry karoo veld and rolling mountain plateaus

to forests on a rocky coastline.

In addition to all of these natural treasures, the

Eastern Cape has a strong history and culture offering.

More than a century of interaction between British

colonial forces and Xhosa-speaking groups created

a frontier zone that today is rich in historical interest.

The Mandela Bay Development Agency has

started an initiative in Port Elizabeth that relates

to the struggle against apartheid. Oliver Tambo,

Govan Mbeki, Steve Biko and Winnie Madikizela-

Mandela were among the many Eastern Cape men

and women who played major roles in that battle.

The MBDA has come up with Route 67, which

consists of 67 public art works symbolising the 67

years spent by Nelson Mandela in the service of

his fellow man. It starts at the Campanile (a tribute

to the 1820 Settlers from Britain) and forms part

of the greater Nelson Mandela Bay Arts Journey.

It passes the Great Flag on the Donkin Reserve.

The famous steam train, the Apple Express,

made a modest comeback in December 2017

when a special train ran along the narrow gauge

between King’s Beach and the Port Elizabeth airport.

Funding was provided by the municipality,

but a lot of hard work was done by volunteers to

get the old train back on track. Re-branded for the

occasion as the Nelson Mandela Bay Steam Train,

the plan is to extend the line to the large regional

shopping centre on the western edge of the city,

Bay West. The railway used to haul fruit to Port

Elizabeth from the Langkloof valley.

King’s Beach is the focus of another important

plan to boost tourism. Transnet National Ports

Authority has confirmed that it will transfer its

manganese export facility at the Port of Port

Elizabeth to the neighbouring Port of Ngqura

by October 2023. The manganese currently lies

in the harbour next to the tourist beach. When

the facility is relocated, there will be a chance to

link the edge of the harbour (which already has

some tourist facilities and a yacht basin) with the

popular beach and so create a waterfront with

restaurants, shops and bars.

Hotels and casinos

South Africa’s large branded hotel groups have a

strong presence in the Eastern Cape but there are

also groups whose focus is more concentrated on

the province (like the Kat Leisure Group) together

with independent hotels and resorts such as East

London’s Blue Lagoon Hotel and Conference Centre,

located in a prime spot at the mouth of the Nahoon

River.

Kat Leisure Group’s offering extends from

the well-known Kennaway Hotel, which has

been a feature on East London’s beachfront for

many years, to the Queens Casino and Hotel in

Queenstown and accommodation options in the

mountainous interior of Katberg and Hogsback.

Premier Hotels has two hotels in East London

and the Mpanga Private Game Reserve just beyond

the city limits. Premier Hotels also manages

the East London International Convention Centre

which offers 17 conference rooms in various configurations,

boardrooms and an exhibition hall.

Many resorts take advantage of the beautiful

bays and inlets of the Eastern Cape, both along

the Wild Coast, and nearer to cities, such as the

Mpekweni Beach Resort which is located between

Port Alfred and East London.

The Eastern Cape Gambling and Betting Board

issues gaming licences and regulates the industry

in the province.

21 EASTERN CAPE BUSINESS 2018


SPECIAL FEATURE

The Radisson Blu in Port Elizabeth offers fivestar

luxury overlooking Pollock Beach and it is

close to the renowned Humewood Golf Club.

The modern 14-storey building has 173 rooms

and suites.

Sun International has properties on the provincial

border with KwaZulu-Natal (the Wild

Coast Sun Resort and Casino) and the five-star

Boardwalk Casino and Entertainment World in

Port Elizabeth. Located close to the Blue-Flag

Hobie Beach, the Boardwalk has won awards for

excellence for its meetings, exhibitions and special

events. In 2017 Sun International announced

that Fish River Sun and Country Club Resort near

Port Alfred was closing. It is possible that the

resort could be transferred to the state with the

intention that it be transferred to the beneficiaries

of a land claim.

Tsogo Sun has five Eastern Cape properties.

In East London the four-star Southern Sun

Hemingways is next to the Hemingways Casino

complex and the city has one Garden Court, as

does Mthatha. Port Elizabeth has a Garden Court

and a SUN1, both near Humewood Beach.

City Lodge has one property in East London

and five in Port Elizabeth, across four brands.

Along the beachfront at Summerstand can be

found the Protea Marine, a 173-room Radisson

Blu and the Beach Hotel. The last-named hotel

is run by the Port Elizabeth Hotel Group which

also has in its portfolio Hacklewood Hill Country

House, The Sands @ St Francis and Pumba Private

Game Reserve.

EASTERN CAPE BUSINESS 2018

22


YOURS TO DISCOVER


SPECIAL FEATURE

Events

The FIFA World Cup hosted by South Africa in 2010

created a surge in the number of foreign visitors to

the country. The Eastern Cape hosted 260 000 foreign

visitors in that year and the province became a

favoured destination for international travel agents.

In 2017 foreign visitor numbers ticked upwards close

to the 2010 peak, and a focus on events is one of the

reasons for this trend.

Grahamstown hosts the National Arts Festival

every year, an 11-day extravaganza of performance

art, music of every sort, art exhibitions,

film, lectures, craft fairs and workshops. More

than 240 000 people attended the 2015 festival

and a study has put the economic impact of the

festival at R349.9-million.

Port Elizabeth hosts matches in the international

Super Rugby series. The provincial tourism

body calculates the public relations value of the

rugby hosting as R18-million with an “economic

spin off in excess of R150-million”. Port Elizabeth

maintained its reputation for “firsts” when it

hosted South Africa’s first-ever day-night cricket

Test match in 2017. With brand-new lighting of

the latest design, St George’s Park cricket ground

was illuminated to the highest international

standards. The innovative lighting system will

now give events organisers options that never

existed before in terms of lighting shows and

coordinated lighting programmes that can be

tuned to musicians’ needs.

Another major feather in Port Elizabeth’s cap is

the decision by the international 2018 IRONMAN

70.3 World Championship to designate official

qualifier status to an event to be held on the first

two days of September 2008. Hobie Beach will be

the main focus of the event, as it is for the Standard

Bank IRONMAN African Championship which

has been held since 2015. The city held its first

IRONMAN event as far back as 2004. Enthusiastic

crowds of up to 80 000 have been known to line

the route and the event will undoubtedly be a fillip

for the local economy. More than 6 000 athletes are

expected to participate.

Other popular events in Port Elizabeth include

the Herald Cycle Tour and the Ocean Racing Series

(a world championship).

Buffalo City has its own IRONMAN 70.3 triathlon.

In 2018 the 11th running of the event was held

in the last week of January, and East London is

home to several other popular cycling and running

events.

ONLINE RESOURCES

Apple Express: www.appleexpresstrain.co.za

Buffalo City Tourism: www.bctourism.co.za

Eastern Cape Gambling and Betting Board:

www.ecgbb.co.za

Eastern Cape Parks and Tourism Agency:

www.visiteasterncape.co.za

Mandela Bay Development Agency:

www.mbda.co.za

National Arts Festival: www.nafest.co.za

Nelson Mandela Bay Tourism: www.nmbt.co.za

EASTERN CAPE BUSINESS 2018

24


Maritz Electrical

FOCUS

St George’s Park lighting installation is a world first.

Maritz Electrical, a premier supplier and installer of dedicated

sports lighting, was tasked with erecting a new lighting

system at St George’s Park cricket ground in record time.

This complicated flagship project was completed on time

and on budget and makes South Africa’s oldest Test match ground

the first International Cricket Council-compliant, LED-lit stadium and

the first such stadium to be fitted with theatrics.

Where before the lighting level was 800 Lux, it is now 2000 Lux.

The LED lighting makes for a much brighter light and far more flexible.

No warm-up is required and so the theatrics can be employed at any

time: flashing, chasing and picking out patterns in the lights. With

the possibility of holding light shows before and after events, safety

is improved because crowds will come in early and linger later. LED

technology also reduces consumption significantly.

St George’s Park Cricket Ground.

St George’s Park, Port Elizabeth’s famous ground, was the site of the

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

1889. Over four days in December 2017, the ground celebrated another

landmark – South Africa hosted Zimbabwe in the first-ever day-night

Test match. The R27-million contract was completed on time and on

budget by a team from Maritz Electrical led by Warren Williams. Two

project managers from Musco Lighting, the supplier, supported the

installation. The lights on top of the Duck Pond Pavilion were hoisted

at night, the process being illuminated by floodlight.

Maritz Electrical

Maritz has installed lighting systems

at a number of schools,

universities, multi-sports stadia,

including a recent big project

for the Mangaung Metropolitan

Municipality, the Kaizer Sebothelo

Stadium.

Maritz Electrical has an internationally

compliant management

system in place. Musco (leading

supplier of electrical sports lights)

is one of our established relationships

that allows us to provide

products of a similar quality to

that of Twickenham Stadium and

Arsenal’s Emirates Stadium.

We work closely with our customers,

ensuring that the task

or project is completed on time

and on budget, using the highest

quality products available.

We specialise in all residential

and commercial areas of electrical

installation and maintenance.

Our electrical services include

project management, design,

supply, installation, testing plus

commissioning and maintenance

of electrical systems.

CONTACT INFO

7 Wetton Road, Kenilworth,

Cape Town, 7800

Tel: +27 21 703 0867

Fax: +27 21 703 0868

Cell: 071 364 7354

Email:

info@maritzelectrical.co.za

Website:

www.maritzelectrical.co.za

25 EASTERN CAPE BUSINESS 2018


PROFILE

The Nelson

Mandela Bay

Business Chamber

The heartbeat of business success in the region.

The Nelson Mandela Bay Business Chamber is a

Not for Profit Company representative of a broad

spectrum of businesses in Nelson Mandela Bay. It

is one of the largest business associations in the

Eastern Cape, with a membership of more than

700 businesses employing over 100 000 people in

a diverse array of sectors.

The Nelson Mandela Bay Business Chamber is

a leading catalyst for economic development. In

the new strategic direction of 2018, the Business

Chamber will be driving the Triple Helix concept

of building relationship between the universityindustry-government

as the foundation of creating

a competitive Nelson Mandela Bay.

The Business Chamber has been the heartbeat

of business success in the region for over 150 years.

The Business Chamber is driven by a team of dedicated

staff and volunteers, lobbying on issues affecting

the ease of doing business and companies’

sustainability. The Business Chamber also builds in

international relations to form a vital link between

business owners and international markets.

Vision

To be a leading catalyst for economic development

in Nelson Mandela Bay.

Mission

By influencing the factors and key stakeholders

that create a competitive enabling business

environment.

Task Teams

The Nelson Mandela Bay Business Chamber has established

a structure of seven task teams to facilitate

the ease of doing business.

The seven task teams of the Nelson Mandela Bay

Business Chamber are:

• Water Task Team

• Roads and Storm Water Task Team

• Electricity and Energy Task Team

• Transport and Logistics Task Team

• SME Task Team

• Metro Collaboration Task Team

• Trade and Investment Task Team

Enterprise Development & SMME

Support

The Nelson Mandela Bay Business Chamber Enterprise

Development Programme was launched in 2014,

to develop the skills that enhance and grow small

businesses. In 2017 the Business Chamber successfully

hosted Phase 3 and Phase 4 of the Enterprise

Development Programme. Close to 100 SMEs (small

to medium-sized enterprises) benefited from taking

part in the different phases of the programme.

In 2017 the Business Chamber finalised the launch of

a pilot phase of the Export Development Programme

which is set to commence in March 2018 for multisectoral

SMMEs positioning themselves as emerging

exporters. The programme is unique because of its

integrated approach to the development of these

emerging exporters. In addition, the SME Task Team

EASTERN CAPE BUSINESS 2018

26


PROFILE

has launched a Pro Bono Service Programme which

entails the pairing of qualifying SMEs with service

provider/s, who are volunteer members of the

organisation. This programme will continue in 2018.

Events

Events at the Nelson Mandela Bay Business Chamber

keep business owners up to date and informed on a

wide variety of topics affecting business in Nelson

Mandela Bay. Regular networking functions offer business

owners the chance to make new professional

contacts. The Business Chamber’s flagship events –

the Annual Business Chamber Golf Day, the Annual

Ladies’ Breakfast and the Annual Business Chamber

Banquet – are highlights on the Bay’s business and

social calendar. The Events Department reached a

new record in 2017 by hosting a total of 91 events.

Publications and marketing

As another value-added service to members, the

Nelson Mandela Bay Business Chamber provides

members with a variety of publications across print

and electronic platforms, including our quarterly

printed member magazine, Infocom, and the printed

annual Business Guide. Both of these publications are

ABC-certified, glossy publications.

The electronic monthly newsletter The Good

News provides links to good news on the local business

front. The Business Chamber regularly updates

its website, and can be found on popular social media

platforms including Facebook, Twitter, LinkedIn

and Instagram.

In 2017 the Business Chamber also launched the

NMBBC App: a digital, interactive platform for business

to business promotion in Nelson Mandela Bay

and surrounding areas. A key feature of the App is a

business directory, which connects users with businesses

in the region, who are members of the Nelson

Mandela Bay Business Chamber.

To download the App, please search NMBBC on the

AppStore or PlayStore.

Certificates of Origin

A Certificate of Origin is a document which states

the origin of goods being exported and this “origin”

is a key requirement for applying tariffs and other

important criteria. As an accredited provider of this

service, the Nelson Mandela Bay Business Chamber

signs Certificates of Origin for member and nonmember

businesses requiring the services in Nelson

Mandela Bay. The Certificates of Origin Department

reached a record in August 2017 when it issued the

most monthly certificates it has ever completed over

the past six years of recordings. This was up 22% from

August 2016.

Corporate Social Investment

Because the majority of our membership’s workforce

is based in the city, the region of Nelson

Mandela Bay is the direct beneficiary of their

Corporate Social Investment programmes – including

skills development initiatives, bursaries

and scholarships. Many of our member companies

significantly contribute to alleviating poverty and

specifically unemployment in the region of Nelson

Mandela Bay through various initiatives purposed

to grow the local economy. Every year the Business

Chamber adopts NGO organisations and collects

goods and services from our member companies

in order to create awareness around the NGOs. In

2017 the Business Chamber adopted SOS Children’s

Village Port Elizabeth and St Francis Hospice and

collected several items from our companies, including

furniture and vehicles.

CONTACT INFO

Address: KPMG House, Norvic Drive,

Greenacres 6045

Tel: +27 (0)41 373 1122

Fax: +27 (0)41 373 1142

Email: info@nmbbusinesschamber.co.za

Website: www.nmbbusinesschamber.co.za

27 EASTERN CAPE BUSINESS 2018


PROFILE

Border-Kei Chamber of Business provides key services to over 700

member organisations, and aims to be the “voice of business” in the area.

Value proposition

To be the “voice of business” promoting an

environment for growth and sustainability through

maintaining strong, proactive relations with both

internal and external stakeholders, including

provincial and local government, member

companies, other business organisations and

organised labour.

Geographic areas of operation

Border-Kei Chamber of Business (BKCOB) has offices

in East London and Queenstown which serve the

greater Border-Kei region.

Services and benefits to members

BKCOB offers the following key services:

Member listing – After joining, members receive

the member listing as part of their package.

• Border-Kei Chamber of Business Membership

Certificate.

• New members’ induction and networking functions

– The chamber holds six new members’ induction

and networking functions annually, and

these provide a valuable informal but structured

opportunity to meet a broad range of

businesspeople.

• Letters of support – The chamber provides

letters of support to members trying to

access government tenders, and letters of

introduction for members attempting to

expand their business footprint.

Business Hi-Lite Magazine – This glossy B2B

magazine is produced quarterly adding

relevant topics and information/news of

what’s happening. It also features chamber

activities and developments in the area.

• Trade & Information desk – Chamber is geared

to provide information on almost any matter

or topic. We also liaise with a number of

Embassies and Trade Consuls to seek business

and trade opportunities.

• Investbuffalocity.com – A collaborative initiative

where members can find various economic

information on Buffalo City. It provides a

platform to attract international investors, as

well as provide exposure for local companies.

• Committees – The chamber has a robust and

effective committee structure to facilitate

members’ participation, and to enable the

chamber to fulfil its role as the “voice of business”.

Over 120 voluntary business professionals

participate.

Turnover

BKCOB represents over 650 member organisations that

generate an estimated annual turnover of R73-billion,

and that employ some 58 000 people who earn an

estimated annual income of R19-billion in total.

KEY CONTACTS

Executive Director: Les Holbrook

Head of Communications: Candi Ferreira

Tel: +27 43 743 8438 | Fax: +27 43 748 1507

Email: info@bkcob.co.za or

communications@bkcob.co.za

Physical address: Chamber House, The Hub,

Beacon Bay, Bonza Bay Road, East London

Website: www.bkcob.co.za

Contact: Jacqui Austin at

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

EASTERN CAPE BUSINESS 2018

28


Promoting business

in the region

Les Holbrook, Executive Director of the Border-Kei

Chamber of Business (BKCOB), highlights the reasons that

investors should look no further than the Eastern Cape.

PROFILE

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

The Chamber tackles many and varied projects and focusses primarily

on areas where the focus is on the cost and ease of doing business.

Two years ago we handed back to Provincial Treasury a pilot project

titled Buy Eastern Cape. The Chamber plans to revive this initiative to

mitigate the loss of opportunities pouring out of the province. Strategic

steps will now be taken to increase the procurement for enterprises

located within the province.

Our lobbying in favour of renewable energy saw the Chamber focus

on “Greening our Office.” After eight months of intense capacity building,

our office in East London is now the only Chamber of Commerce

and Industry in South Africa that qualifies to be listed as Green.

INVEST BUFFALO CITY, our flagship project, signed MOUs with

four stakeholders in our region, committing to initiatives that focus

on inward investment and on retaining existing investment – on the

principle of Invest, Work, Live & Play. An associated project to the IBC

project is A Call-2-Action, an initiative where business partners with

the municipality towards a Clean & Green City, underpinned by waste

recycling. Following on from the very first Maritime Summit held in the

Metro, business and the Metro have partnered with TNPA to construct

a new Growth and Expansion plan to turn the ‘tired’ Port around. We

also have a forum to promote opportunities in the Blue Economy.

Why should investors consider the Eastern Cape?

Buffalo City is equidistant from Gauteng and the Western Cape, with

good logistics and competitive costs, offering air, road and sea connectivity,

all reasons for a successful and vibrant East London Industrial

Development Zone. This is supported by the most moderate climate

all year round, a productive coastline, and a lifestyle supported by the

15-minute city. With the first automotive tertiary training academy and

artisan development, skills in the manufacturing sector are adequately

supported. This includes the best and most efficient IDZ in SA, that is

ISO rated and has world-class infrastructure that includes a Science

and Technology Park.

What is the biggest challenge for regional business?

Municipal services and infrastructure maintenance. Buffalo City

Municipality is spending hundreds of millions on a very old infrastructure.

However, great strides have been made and the future

looks very positive.

Les Holbrook

BIOGRAPHY

Les Holbrook has a National

Technical Certificate as well as

a Certificate in Management

from Rhodes University. Prior to

his appointment as the Executive

Director of the Border-Kei

Chamber of Business, he was

the Deputy General Manager

of Beier Industries of Transkei

and Executive Director of the

Transkei Chamber of Industries.

29 EASTERN CAPE BUSINESS 2018


ADVERTORIAL

A financial partner that

understands your aspirations

Lonwabo Daniels, Nedbank Provincial General Manager

for Eastern Cape, explains how Nedbank can help

business owners in the Eastern Cape.

solutions and a banking experience that is

hassle-free. This allows you to concentrate on

what’s most important to you – running your

business,’ says Daniels.

Nedbank leverages its strong market positioning

with businesses and the public sector,

encouraging them to bank their employees

through its innovative Workplace Banking

offering for employees.

There is good news for Eastern Cape

business owners and entrepreneurs

seeking a unique banking experience:

Nedbank Business Banking has 27

business managers located across the

province specialising in commercial

industries as well as the agricultural

sector.

Nedbank also continues to build on its clientcentred

strategy aimed at delivering distinctive

experiences and channels of choice for

businesses and clients in the Eastern Cape. This

has seen the bank simplify and enhance its

product offering in line with its value-added

banking philosophy based on simplicity,

transparency and affordability. Innovation and

technological advancements, as well as training

and development of staff, have been key in

achieving the bank’s objectives.

They are ready to assist you with professional

advice, industry-specific solutions and a

comprehensive range of financial products

and services. ‘At Nedbank Business Banking we

believe that you need a financial partner who

not only understands your circumstances and

aspirations, but also provides you with relevant

Should you be interested in taking your

business to the next level and improving staff

engagement, and for more information about

Nedbank’s specialised service offering, please call

the Business Banking team on +27 (0)41 393 5969

or visit www.nedbank.co.za.


ADVERTORIAL

Innovation key pillar in meeting client needs

Emile Bester, Nedbank Provincial Sales Manager, Client Network,

explains how Nedbank works with communities to deliver banking

solutions.

winning Nedbank App Suite, the home loans

online digital channel and Market Edge,

as well as the ‘Branch of the Future’ concept

in communities both locally and nationally.

‘Working with communities is entrenched in our

values. At the core of Nedbank’s offering in the

Eastern Cape is a relationship-based model with

a business manager dedicated to your business

as the key point of entry to the bank. And we

encourage you to see money differently with

Whole-view Business Banking’ says Bester.

Nedbank continues to build on its clientcentred

strategy aimed at delivering

distinctive experiences and channels

of choice for businesses and clients

in the Eastern Cape. This has seen the

bank simplify and enhance its product

offering in line with its value-added

banking philosophy based on simplicity,

transparency and affordability.

Innovation and technological

advancements, as well as training and

development of staff, have been key in

achieving the bank’s objectives.

Since 2012 Nedbank has launched several

first-to-market innovations, such as the award-

What does this mean for the client? Whole-view

Business Banking is an additional benefit of

Nedbank Business Banking and means that your

business and your personal financial needs are

managed in one place. ‘Because business owners

and their businesses are very often financially

dependent on each other, our client service

teams now also offer individual banking solutions

to you and your staff because we already know

and understand your needs,’ says Bester.

Should you be interested in taking your

business to the next level and improving staff

engagement, and for more information about

Nedbank’s specialised service offering, please call

the Business Banking team on +27 (0)41 393 5969

or visit www.nedbank.co.za.


ADVERTORIAL

Solutions for small business aimed at

creating jobs and growing the economy

Nedbank’s Regional Manager of Small Business Services, Andisa

Sikwebu, explains how Nedbank is committed to partnering with

businesses for growth.

enterprises. For example, the Small Business

Friday initiative, in association with the National

Small Business Chamber, seeks to encourage

everyone in South Africa to rally behind and

support small businesses. The initiative calls on

everyone to make a conscious decision to vote

for small businesses through their hearts, feet

and wallets; not only on Small Business Friday,

but every day.

‘Small businesses are the mainstay of the

economy. Nedbank has, over the years,

instituted various interventions aimed

at giving support to the small-business

sector. Over and above our smallbusiness

services solutions, we provide

small-business owners with support

that goes beyond banking – freeing up

their time to truly focus on running their

businesses,’ says Sikwebu.

Nedbank has built a solid reputation as a bank

for small businesses through initiatives such as

Small Business Friday, free small-business

seminars and the SimplyBiz.co.za platform –

all geared to support small- and medium-sized

SimplyBiz.co.za is a free-to-join networking

portal designed especially for small businesses.

It helps small businesses improve their business

administration skills, keep up with the latest

trends, network with other small businesses and

share ideas.

Nedbank experts are available to provide all the

support you need when starting off. Nedbank

offers simple, affordable banking solutions

and value-added services (including an

easy online business registration and account

opening process) to get you and your business

going.

Should you wish to tap into our smallbusiness

expertise to reach your business

goals, get in touch with Nedbank’s Small

Business Services. Call Andisa Sikwebu

on +27 (0)41 398 8188 or send an email to

andisas@nedbank.co.za.


ADVERTORIAL

See money differently with Whole-view Business

Banking from Nedbank

Money expert Sylvester Funani, Regional Manager of Retail and Business

Banking in Mthatha, explains how new brand values build on the bank’s

expertise to benefit its clients.

Banking experts aim to provide clients with

unique business and financial solutions. ‘It

forms part of our purpose at Nedbank to use our

financial expertise to do good for individuals,

families, businesses and society,’ says Funani. ‘At

Nedbank Retail and Business Banking we believe

you need a financial partner who has a deeper

understanding of your business – someone who

offers innovative, relevant solutions and who

gives you a banking experience that is hasslefree.

Operating from offices at Nedbank

Mthatha Plaza Branch, Nedbank Retail

and Business Banking now has several

business managers available under one

roof in Mthatha.

Well-known music personality Funani has been

with Nedbank for 12 years and has worked in a

number of roles. He prides himself on building

relationships and understanding the needs of

clients, saying that partnership- and relationshipbased

banking is a key driver of how Nedbank

conducts its business to ensure clients benefit

from its money expertise.

He and his team of Retail and Business

‘We look forward to continuing our relationships

with our valued existing clients, and to offering

our value proposition to new clients as well.

At the core of our offering in Mthatha is a

relationship-based model with a business

manager dedicated to your business as your key

point of entry to the bank. And we encourage

you to see money differently with Whole-view

Business Banking from Nedbank, as well as to

take advantage of our one-stop banking service

at Mthatha Plaza Branch,’ says Funani.

To take your business to the next level or

to get more information about Nedbank’s

specialised service offering call Sylvester

Funani on +27 (0)83 569 2326, send an email

to sylvesterf@nedbank.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

Relationship-based banking aimed at supporting

clients in East London and surrounds

Money expert Sandy Pelser, Regional Manager of Retail and Business

Banking East London and Surrounds, explains how new brand values

build on the bank’s expertise to benefit its clients.

business to ensure clients benefit from its money

expertise.

Nedbank recognises that you have a full range

of banking needs that go beyond transaction

and borrowing. That is why their dedicated

team of specialists partners with you to give

you a bird’s-eye view of your business and a

different perspective on how your money needs

to flow to meet your goals.

Operating from its offices at Cedar

Square, Nedbank Retail and Business

Banking, East London and Surrounds

now has several business managers

available under one roof. Sandy Pelser

says her team is ready to assist clients

with professional advice, industryspecific

solutions and a comprehensive

range of financial products and services.

‘We look forward to continuing our relationships

with our valued existing clients, and to offering

our value proposition to new clients as well.

At the core of our offering in East London,

Queenstown, King William’s Town, Mdantsane

and Port Alfred is a relationship-based model

with a business manager dedicated to your

business as your key point of entry to the bank.

And we encourage you to see money differently

with Whole-view Business Banking from

Nedbank, as well as to take advantage of our

one-stop banking service in East London, says

Pelser.

Pelser has been with Nedbank for 31 years

and has worked in a number of roles. She

prides herself in building relationships and

understanding the needs of clients, saying that

partnership- and relationship-based banking

is a key driver of how Nedbank conducts its

To take your business to the next level or

to get more information about Nedbank’s

specialised service offering, call Sandy Pelser

on +27 (0)83 628 9897, send an email to

sandyp@nedbank.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

Using financial expertise to do good with

professional advice and solutions

Money expert Jordaan Roelofse, Regional Manager of Retail and

Business Banking, Port Elizabeth and Surrounds, explains how new

brand values build on the bank’s expertise to benefit its clients.

is a key driver of how Nedbank conducts its

business to ensure clients benefit from its money

expertise.

He and his team of Retail and Business

Banking experts aim to provide clients with

unique business and financial solutions. ‘It

forms part of our purpose at Nedbank to use our

financial expertise to do good for individuals,

families, businesses and society,’ says Roelofse.

Operating from its offices at 270 Cape

Road, Nedbank Retail and Business

Banking, Port Elizabeth and Surrounds,

now has several business managers

available under one roof. Jordaan

Roelofse says his team is ready to

assist clients with professional advice,

industry-specific solutions and a

comprehensive range of financial

products and services.

Roelofse has been with Nedbank for 21 years

and has worked in a number of roles. He

prides himself on building relationships and

understanding the needs of clients, saying that

partnership- and relationship-based banking

We look forward to continuing our relationships

with our valued existing clients, and to offering

our value proposition to new clients as well.

At the core of our offering in the Eastern Cape

is a relationship-based model with a business

manager dedicated to your business as your key

point of entry to the bank. And we encourage

you to see money differently with Whole-view

Business Banking from Nedbank, as well as to

take advantage of our one-stop banking service

at 270 Cape Road,’ says Roelofse.

To take your business to the next level or to

obtain more information about Nedbank’s

specialised service offering, call Jordaan

Roelofse on +27 (0)83 627 2210, send an email to

jordaanr@nedbank.co.za or visit

www.nedbank.co.za.

Nedbank Ltd Reg Nedbank No 1951/000009/06. Ltd Reg No 1951/000009/06

Authorised financial

Authorised financial services services and registered and registered credit provider credit (NCRCP16).

provider (NCRCP16).


OLD MUTUAL ENABLING

POSITIVE FUTURES

IN THE EASTERN CAPE

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling

positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span

investment, life assurance, asset management, banking, healthcare and general insurance.

To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership

boards in each province to serve as links between the province and our business. These Provincial Management

Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a

positive impact on the future of this province and its people.

MEET VUYISILE KOKO

Chairperson of the Eastern Cape Provincial Management Board

“ As a member of Old Mutual’s Provincial Management Board,

I would like to promote teamwork and better relations along

all Old Mutual businesses in the Eastern Cape.”

As the Eastern Cape PMB Chairperson I undertake to:

1. Establish good collaboration and synergies among all business units.

2. Through the board build and maintain strong business relationships with the Provincial Leadership in

both business, labour and public sectors.

3. Articulate our good story regarding our responsible business initiative to the leadership in the province.

GET IN TOUCH: email EasternCapePMB@oldmutual.com

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS:

ADVICE MATTERS

As custodians of the savings and

investments of millions of South

Africans, we know that ADVICE

MATTERS when making financial

decisions.

How to choose the right financial adviser

A good financial adviser is a professional who

considers all your financial needs and goals, and has

the knowledge, experience and support to give you

Advice That Matters.

1. Ask to see the adviser’s training credentials and FAIS

accreditation.

2. Choose a financial adviser who represents a

respected financial institution.

3. Look for a financial adviser who has access to a

range of specialist support services.

NEED HELP WITH RETIREMENT AND RISK

COVER OPTIONS FOR YOUR EMPLOYEES?

Old Mutual Corporate provides

industry-leading retirement fund

solutions, pre- and post-retirement

investments, group death, disability,

critical illness and funeral cover

as well as financial education and

consulting services to a broad range

of public and private businesses and

institutions, from small businesses to

large corporates.

This can also be accessed via

Old Mutual SuperFund, which provides a comprehensive

employee benefit solution that is flexible enough to meet

the needs of all types of businesses and their employees.

NEED A ONE-STOP-SHOP INTEGRATED

FINANCIAL SERVICE?

The Old Mutual Mass Foundation Cluster (MFC) has an

integrated approach to financial services and offers

customers solutions to meet their needs. This spans a

transactional account called the Old Mutual Money

Account, savings products, life and disability cover, as

well as funeral cover, debt management solutions and

short-term insurance. Our aim is to

help our customers manage their

finances and to plan and provide

a better future for themselves and

their loved ones.

NEED DIRECT CAR & HOME INSURANCE?

Old Mutual iWYZE offers affordable and reliable

insurance cover to protect everything you’ve worked

for. The wide range includes car insurance, home

insurance as well as value-added products

such as iWYZE Scratch

& Dent and iWYZE

Tyre & Rim Cover.

iWYZE, the wise

insurance choice.

NEED FUNERAL COVER?

With Old Mutual’s range of

Funeral Plans (Care, Standard and

Comprehensive+) customers can cover

themselves, their spouse/partner,

children, parents, parents-in-law and

extended family members. We also

have a plan for single parents to

cover themselves and their dependent

children without having to pay for a spouse they do not

have.

You can choose the amount of cover you need, who

you’d like to cover and whether you’d like to add

additional benefits. You can get funeral cover for up to

R70 000.

NEED HELP WITH SAVING FOR BOTH

LONG AND SHORT TERM?

To make it easy for customers to

save from as little as R170 a month,

Old Mutual offers the innovative

2-IN-ONE SAVINGS PLANS.

This product with its two pockets allows customers

to save for their long-term goals, like their children’s

tertiary education, while they have access to their funds

in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL

PLANNING AND SAVING?

Old Mutual Personal Finance specialises in providing

holistic financial planning - Advice That Matters. We

offer a wide range of wealth creation and protection

products. For example:

The Old Mutual Invest Tax-Free Savings Plan, which

offers a low, entry-level premium and refunds you 50%

of admin charges when you reach your maximum

premium limit in a year.

NEED LIFE AND DISABILITY COVER?

Old Mutual Personal Finance marketleading

risk protection range offers

the most comprehensive illness range

with clear claim definitions, including

GREENLIGHT.

NEED TO PROTECT YOUR

BUSINESS?

Old Mutual Insure are experts in

agriculture, engineering and marine

insurance. We offer a range of insurance solutions to

protect your business against everything from fire and

theft to business interruption and legal liability costs.

NEED DEBT CONSOLIDATION AND

TRANSACTIONAL BANKING?

Through Old Mutual Finance you can gain access to:

• My Money Plan, which enables

you to consolidate your debt, and

choose from a range of personal

loans at a fixed interest rate.

• Money Account, which links a transactional (SWIPE)

account and an investment (SAVE) account so you

automatically invest a set amount into a unit trust

every time you make a purchase with your card.

*(In association with Bidvest Bank Ltd)

NEED HELP WITH INVESTING?

Old Mutual Wealth is a fully integrated, adviceled

wealth management business. We have a

personalised and integrated approach to grow and

preserve your wealth over time. Our

specialist capabilities include Private

Client Securities, Old Mutual Multi-

Managers, Fiduciary Services and

Offshore Investing.

We partner with leading financial planners to provide

you with a tailored lifetime wealth plan to help you

achieve the best outcome in line with your objectives,

goals and aspirations.

NEED A FINANCIAL PARTNER THAT

MAKES A POSITIVE IMPACT ON SOCIETY?

Old Mutual is deeply committed

to playing a significant role in building

a strong and financially inclusive

South Africa.

As a responsible business committed to caring for our

communities, the Old Mutual Foundation addresses

socio-economic challenges through investing in:

• Small business development and entrepreneurship

• Youth unemployment through skills training

• Strategic education initiatives

• Caring for vulnerable communities

In 2016 alone the Old Mutual Foundation invested

R25 686 172 in various community projects across our

nation (actual grant funding payments made during

2016).

In the Eastern Cape the Old Mutual Foundation

invested a total of R3 536 025 across its various

community empowering portfolios in the region.

Our staff are the hearts and hands of Old Mutual

in the communities we operate in, and we support

our staff volunteers through various programmes.

In the Eastern Cape province, 52 organisations

have received a total R770 500 as a result of staff

volunteering efforts.

INVESTMENTS I SAVINGS I PROTECTION

ombds 7.2017 L10479.10

Old Mutual is a Licensed Financial Services Provider


ENTERPRISE DEVELOPMENT: INCAPEACE TRADING AND PROJECTS

CC, EASTERN CAPE

Incapeace Trading is a 100% black-owned business operating in Libode, on

the outskirts of Mthatha. This manufacturing business, started by entrepreneur

Anele Peti, will produce bricks and cement blocks to meet the growing demands

of the local construction industry. The impact of Old Mutual’s funding will help

to create around 27 jobs. In addition, local community members will benefit

through a community trust that is being set up by the business, to provide a

range of services.

Old Mutual Foundation grant: R822 645

Masisizane loan:

R4.1 million

The MASISIZANE FUND focuses on enterprise

development and job creation to help alleviate poverty

and improve food security in South Africa. This is

achieved through encouraging entrepreneurship and

capacity development and financing of micro, small

and medium enterprises (SMMEs). Preference is given

to SMMEs with 51% plus ownership by women, youth

or people with disabilities.

Masisizane Fund disbursed R147m worth of funds

in 2016 through soft loans in the three high-impact

sectors and facilitated the creation of 862 jobs against

a target of 625 jobs.

In the Eastern Cape, Masisizane disbursed funds of

R28 518 891 to five clients which created 234 new jobs.

MASISIZANE CASE STUDY IN THE

EASTERN CAPE

WP Timbers (Pty) Ltd

WP Timbers manufactures timber doors and window

frames. The entity’s main market is to retail outlets and

supplies its products to the following major customers –

CashBuild, Buffalo Timber and Penny Pinchers.

Thabo Sikukula (the client) purchased 100% of the

enterprise from the sellers Mrs Kotze, 70% and

Mr Heidtmann, 30%. Thabo gained entrepreneurial

experience through other enterprises that he started

and managed. However, those businesses placed a lot

of reliance on government for market access.

Masisizane provided a fund loan amount of R3.75m,

SEFA a loan amount of R5m, and Old Mutual Foundation

provided a R1.5m grant amount which in turn facilitated

the facilitation of 145 new and retained jobs.

WANT TO HELP BUILD THE PLATFORM

FOR FINANCIAL INCLUSION?

Financial education is the gateway to financial

inclusion. The Old Mutual Financial Wellbeing

programme promotes financial literacy and awareness

across market segments in line with the Financial Sector

Charter. We offer highly effective financial education

and support programmes to help South Africans take

control of their finances.

Between 2007 and end of 2016 more than 589 808

people were reached through face-to-face workshops

held for communities as well as employees in the public

and private sector.

In 2016 more than 88 000 individuals participated in

our On the Money workshops nationally, with 24 674

participating in our Fin360 programmes.

In the Eastern Cape 12 910 individuals were trained

in our Old Mutual On the Money financial education

programme and 2 240 were trained in our Fin360

financial education programme.

For more information, contact Vuyisile

Koko at EasternCapePMB@oldmutual.com


KEY SECTORS

Overviews of the main economic

sectors of the Eastern Cape

Agriculture 40

Forestry 44

Aquaculture 45

Agriprocessing 46

Manufacturing 48

Automotive and components 50

Water 52

Education and training 54

Banking and financial services 56

Development finance and SMME support 58


OVERVIEW

Agriculture

The Eastern Cape is South Africa’s top livestock provider.

Rural Enterprise Development (RED) hubs are a key plank

in the strategy of the Eastern Cape Department of Rural

Development and Agrarian Reform (DRDAR) to promote

food security and employment creation. Small-scale farmers

are supplied with equipment, infrastructure and training to help them

engage with the mainstream economy.

Four new RED hubs in the Eastern Cape have started producing

maize and sorghum. The plan to expose smaller operators to the supply

chain of big retail companies could be transformative in some areas.

The DRDAR wants to increase the province’s GDP by 2% through this

scheme. Almost all of the food in South Africa’s shops is produced

by commercial farmers. The DRDAR is in the process of putting small

farmers on its database. After a grading process, produce will then be

sold on to Nicks Food, McCain Foods and Boxer Superstores.

SECTOR INSIGHT

Herbal and other natural

products hold potential.

• Rural Enterprise

Development (RED) hubs

are supporting smallscale

farmers.

Big infrastructure projects

have been undertaken in rural

areas of the eastern parts of the

province by the Eastern Cape

EASTERN CAPE BUSINESS 2018

42


OVERVIEW

Rural Development Agency

(ECRDA).

Three training centres focus

on agriculture in the province:

Fort Cox College of Agriculture

and Forestry, Mpofu Training

Centre (teaching mostly smallstock

management), and the

Tsolo Agricultural and Rural

Development Institute, which

is developing ties with Walter

Sisulu University. The Dohne

Agricultural Research Institute,

near Stutterheim, developed a

new breed of sheep, the Dohne

merino.

The provincial government

hopes to find private investors

who will take a majority share in

two large tea estates that have

failed. In their heyday, Magwa

and Majola produced more than

a million kilograms of tea but the

current business rescue plan includes

a proposal to plant additional

crops such as avocado and

macadamia nuts, one of the fastest

growing subsectors in South

African agriculture. The DRDAR

will partner the private investor

and local community in the projected

project, and the provincial

government has committed an

amount of R116-million to get the

scheme up and running.

Natural products

There is enormous potential in

the Eastern Cape for the development

of natural products, for

which there is a growing international

market. Herbal medicines

and teas and non-toxic healing

methods of all sorts are all very

popular.

Rural communities are being encouraged to plant products that

can be sold into the natural products value chain. Various vegetables,

Honeybush (Cyclopia) and Sceletium tortuosum (known locally as

Kanna) are among the crops being cultivated. The Honeybush is already

well known as a tea and the Kanna is deployed for mental and

emotional wellness for many hundreds of years by local communities.

TOMA-Now, an NGO that unlocks green business value, is working

in communities to develop organic products that can find a market.

Assets

The Eastern Cape has more livestock than any other South African

province, and produces a quarter of the nation’s milk.

The province encompasses all seven of South Africa’s biomes,

which means that practically every kind of crop or animal or crop can

be cultivated or raised on the province’s 169 580 square kilometres of

land. These include the wool-producing merino sheep and the mohairproducing

Angora goat which thrive in the dry interior.

Deciduous fruit (Langkloof), citrus fruit (Addo/Kirkwood) and

chicory (Alexandria) are important parts of the province’s agricultural

mix, but a feature of recent years has been towards diversification.

Land-usage patterns have changed. Parts of the Amathole and Sarah

Baartman districts that used to be sheep or pineapple farms are now

stocked with game for the hunting and tourism markets.

There are about 70 000 people employed on commercial farms

across the Eastern Cape, with a further 436 000 dependent on smaller

farms, mostly in the east. Improving the agricultural yield of the eastern

part of the province is vital for improving food security and lifting many

thousands of people out of poverty. The recent national drought has

put extra pressure of rural communities.

Crops

The Eastern Cape is South Africa’s second-largest producer of citrus

fruit. Oranges make up the vast majority of citrus products (80%),

but the province is also well-known for its clementine and satsuma

tangerines, as well as navel oranges. Deciduous fruits such as apples,

pears and apricots are grown primarily in the Langkloof Valley.

Another crop in which the Eastern Cape leads national production

is chicory. The roots are used for beverages such as instant coffee,

the leaves go into pet food and stock feed and unopened leaf pods

become chicory endives, a sought-after salad ingredient. The province

produces between 18 000 and 20 000 tons of wet root every year,

mostly near the coast at Alexandria and inland from Port Alfred. The

entire crop is consumed in South Africa.

43 EASTERN CAPE BUSINESS 2018


OVERVIEW

The province’s pineapple crop, grown in the same part of the Sunshine

Coast that produces chicory, is similarly largely for domestic consumption.

Approximately 80 000 tons are produced every year and

processed in East London.

One of the fastest-growing sectors in agriculture is macadamia nuts.

The ECRDA has partnered with a community to plant the popular nut

at Ncera in the Tyume Valley north of Alice.

Sheep and goats

The long-term drought which has afflicted all regions in South

Africa is having an effect on all sectors, but wool-producing sheep

farmers and mohair-producing Angora goat producers perhaps less

so, partly because they are so well adapted to dry conditions but

also because farmers can reduce their flocks.

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

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

conducive to the wool-producing sheep.

South Africa produces about 50 000 tons of wool annually. In 2015/16,

the value of wool sold at auctions reached R3.7-billion, of which R815-

million was generated in the Eastern Cape.

The National Woolgrowers Association (NWGA) has helped

24 000 Eastern Cape communal wool farmers get organised into 1 224

wool growers’ associations. A support programme aims to improve

the genetic stock. This is funded by the National Department of Rural

Development and Land Reform and involves communal farmers swopping

an inferior ram for a good ram. So far, 42 000 good Merino rams

have been added to the communal flocks.

The South African Mohair Growers Association is based in the heart

of Angora goat country at Jansenville while the industry association,

Mohair South Africa, has recently

built smart new headquarters in

Port Elizabeth, encompassing a

shop and conference facilities.

South Africa produces about half

of the world’s mohair.

Processing of mohair takes

place in Uitenhage, Port Elizabeth

and Berlin outside East London.

The mohair value chain includes

brokers, buyers, processors, spinners,

manufacturers and retailers.

The Stucken group controls

Mohair Spinners South Africa,

Hinterveld (a mill) and a processing

company called Gubb & Inggs

in Uitenhage.

Several agricultural companies

have mohair divisions: OVK (based

in Ladybrand) has a 34% shareholding

the Cape Mohair Wool

(CMW), a mohair brokerage; BKB

(Port Elizabeth headquarters) has

a mohair division that includes

auctions and brokering.

Other livestock

Livestock farming is the largest

agricultural subsector in South

Africa. The Eastern Cape holds

21% of the country’s cattle (about

3.2-million), 28% of its sheep (seven

million) and 46% of its goats,

making it the largest livestock

province by a large margin.

The rich natural grasslands of

the Eastern Cape have the potential

to produce high-value organic

meat, a product that is proving increasingly

popular in health-conscious

international markets. The

Eastern Cape can offer a range

that stretches from Karoo lamb

to CAB-certified free-range beef.

These niche meat products are

EASTERN CAPE BUSINESS 2018

44


OVERVIEW

leaner, healthier and often tastier

than mass-produced alternatives.

High-value meat cuts such

as these will increase the value of

exports from the Eastern Cape.

The Border region is very strong

in beef production.

Stats confirm that South Africa

has a large meat-eating population,

as South Africans consume

on average 13.7kg of beef every

year, of which lamb or mutton

makes up around 3.4kg.

range of flavoured milks, cheeses, custards, butter, fruit drinks and

ice cream under many brand labels), Dairybelle (Cookhouse near

Somerset East; cheeses), Woodlands Dairy (Humansdorp; UHT milk,

First Choice Brand), Sundale Free Range Dairy (East London Industrial

Development Zone).

Dairy

About a quarter of South Africa’s

milk comes from the Eastern

Cape. Although conditions vary

greatly from the luscious green

grasses of the Lower Tsitsikamma

to the drier conditions of the

Karoo, they all seem to suit milkproducing

cows.

The bigger dairies include

Coega Dairy which was founded

in 2011 and is situated in the

Coega IDZ. Coega Dairy is one

of South Africa’s 10 largest dairies

with a turnover of more than

R1.5-billion and produces milk

under the Coastal label as well

as under contract for various

retailers. It supplies milk all over

South Africa. It also manages the

Famous Brands Cheese Company

within the IDZ as part of a joint

venture with Famous Brands.

Other dairy operations include

Dawson Dairy (just outside

Port Elizabeth), Crickley

Dairy (Queenstown), Clover

Dairy (Port Elizabeth; packaging

and fresh pasteurised milk

processing, long-life UHT milk),

Parmalat (Port Elizabeth; a wide

ONLINE RESOURCES

Agri Eastern Cape: www.agriec.co.za

Chicory Producers Association: www.chicory.co.za

Eastern Cape Department of Rural Development and Agrarian

Reform: www.drdar.gov.za

Eastern Cape Development Corporation: www.ecdc.co.za

Eastern Cape Rural Development Agency: www.ecrda.co.za

Milk Producers Organisation: www.mpo.co.za

Mohair South Africa: www.mohair.co.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

National Woolgrowers’ Association of South Africa:

www.nwga.co.za

South African Mohair Growers Association: www.angoras.co.za

45 EASTERN CAPE BUSINESS 2018


OVERVIEW

Forestry

Thousands of hectares have been identified for new planting.

Forestry is an important part of government plans to expand

agri-processing. More than 3 400ha of new land has been

planted and timber harvests are expected within three years.

Six community projects in the district municipalities of OR

Tambo and Alfred Nzo are employing more than 1 000 people.

Rural Enterprise Development (RED) hubs have been established

in Mqanduli and Ncorha, with funding from the Jobs Fund, the

Eastern Cape Development Corporation and the Eastern Cape Rural

Development Agency (ECRDA). The Mqanduli Mill is supplying the

Nicks Spar in King William’s Town.

According to the ECRDA, government plantations have more than

15 000ha of unplanted areas which would be easy to develop: they

do not require high initiation costs because no licence is required.

The Eastern Cape’s forestry sector comprises 130 000ha of plantations,

46 sawmills, two chipboard operations, 10 pole treatment plants,

a veneer plant and six charcoal plants, which collectively process about

770 500 cubic metres of timber annually.

The region is well-served by wood-processing facilities such as

the R1.3-billion board plant outside Ugie that is owned by PG Bison.

Another of the province’s major forestry stakeholders is Amathola

Forestry, along with their sister company Rance Timber’s Kubusi and

Sandile Sawmill near Stutterheim, producing 45 000 cubic metres of

sawn board annually.

About 75% of the province’s plantations are controlled by the private

sector. Forestry South Africa has set up a Business Development

Unit to empower small-scale timber growers.

ONLINE RESOURCES

Eastern Cape Department of Rural Development and Agrarian

Reform: www.drdar.gov.za

Eastern Cape Rural Development Agency: www.ecrda.co.za

Forestry SA: www.forestry.co.za

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

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

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

SECTOR INSIGHT

Mqanduli Mill is supplying a

large retailer in King William’s

Town.

The ECRDA aims to transform

unproductive communal land

assets through commercial forestry

development. The ECRDA’s

Sinawo project in Mbizana has

started selling timber to Sappi

and intends commercialising all

its operations.

In 2015/16 the project earned

about R7-million from the sale of

timber and the total employee

count rose to 208. Sappi and

PG Bison are supporting these

community initiatives.

Paper and packaging group

Sappi is working with the ECRDA

and with several communities

to establish forestation programmes.

At Mkambathi a total of 668ha

has been planted and Sappi has

agreed to buy 65% of the timber

produced and to give technical

support where it can.

Downstream opportunities

created by new plantations include

a planned treated-pole

plant in Butterworth and a paper

and pulp mill in Mthatha, which

has also been selected as a future

furniture-sector incubator.

EASTERN CAPE BUSINESS 2018

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OVERVIEW

Aquaculture

Fish from the Karoo will soon be a popular dish.

ONLINE RESOURCES

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

Aquaculture Development and Enhancement Programme:

www.thedti.gov.za

Coega IDZ: www.coega.co.za

East London Industrial Development Zone: www.elidz.co.za

Operation Phakisa: www.operationphakisa.gov.za

South African International Maritime Institute: www.saimi.co.za

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

SECTOR INSIGHT

The provincial government

is investing in fish-farming

technology.

Investment in local infrastructure at the East London Industrial

Development Zone (ELIDZ) is focussed on localising fin fish farming

technology. In 2017/18, an amount of R15-million was set aside

by the Eastern Cape Provincial Government for this purpose.

The Science and Technology Park at the ELIDZ could also become

the site of a marine sector incubation programme to foster interest

in the Oceans Economy among young people and entrepreneurs.

INMED South Africa, a non-profit organisation devoted to better

health and nutrition for children, in partnership with the Mondelēz

International Foundation, launched a R37-million commercial-scale

aquaponic system on the Missionvale campus of Nelson Mandela

Metropolitan University (NMMU) in 2017. A total of 116 schools will

benefit from the project. Waste water will be used to irrigate vegetables

and used again to top up the fish tanks once the nutrients have been

absorbed by the plants.

Aquaponics Innovations produces red tilapia and catfish from its

aquaponics tunnel in Grahamstown. “Karoo Catch” is the brand name

for freshwater fish produced by Blue Karoo Trust, a project taking shape

near the town of Graaff-Reinet. A central farm will be supported by

39 outgrowers and the aim is to produce about 14 000 tons of fish

annually. The intended market is organisations that need protein in

bulk such as hospitals, schools and government institutions. The risk

capital unit of the Eastern Cape Development Corporation (ECDC) is

supporting the venture.

Aquaculture is an important part of the South African government’s

Operation Phakisa strategy.

The intention is to increase

the aquaculture sector’s revenue

from about half a billion rand, to

R1.4-billion in 2019.

Pure Ocean Aquaculture and

Ocean Wise are located within

the East London IDZ. At Zone

10 in the Coega IDZ, 250ha has

been set aside for fresh fish

farming and 100ha for marine

farming. A processing plant and

research and development and

training facilities are planned.

The Coega Development

Corporation estimates that 34

250 tons of abalone, Dusky Kob

and seaweed could be harvested.

The National Department of

Science and Technology (DST) is

working with Irvin & Johnson in

running a marine finfish growout

pilot in Algoa Bay.

A programme of the Department

of Trade and Industry,

the Aquaculture Development

and Enhancement Programme

(ADEP), offers a reimbursable

grant up to R40-million.

47 EASTERN CAPE BUSINESS 2018


OVERVIEW

Agri-processing

Manufacturers are harvesting the Eastern Cape’s excellent produce.

SECTOR INSIGHT

A fibre manufacturing project

has been started in

Butterworth.

• Mohair is a globally popular

luxury product.

Agri-processing is one of the key planks of the Provincial

Economic Development Strategy of the Eastern Cape

Department of Economic Development, Environmental

Affairs and Tourism (DEDEAT). Part of the strategy is decentralisation,

or locating facilities in smaller or rural centres.

The Local, Regional and Economic Development Fund (LRED) is supporting

a fibre manufacturing project in Butterworth with cashmere

wool as the feedstock. The intention is to create jobs and revive the fibre

industry in the Amathole District Municipality.

Wool, mohair, citrus and pineapples, dairy products and salt are some

of the products of the soil of the Eastern Cape that manufacturers are turning

into jerseys, scarves, jams, juices, cheeses, yoghurts and cakes of salt.

The Eastern Cape has more

livestock than any other South

African province, produces close

to a quarter of South Africa’s milk

and is the second-largest producer

of citrus fruits.

Famous Brands has 2 600 restaurants

throughout South Africa,

including the brands that made

their debut in Port Elizabeth, Vovo

Telo and Dulce Café. Famous Brands

has increased its manufacturing

footprint in the Coega Industrial

Development Zone (CIDZ). Zone

Three of the Coega IDZ is devoted

to agriprocessing.

Other tenants of the Coega

IDZ include logistics companies

like PE Cold Storage, River Edge

Trading (which trades in sugar and

syrup across Southern Africa) and

Cerebos. Cerebos’s 30 000-ton per

annum plant at Coega was awarded

a top food safety standard certification

on its 70th birthday in 2015,

the FSSC 22000.

The East London IDZ has two

aquaculture tenants and the large

EASTERN CAPE BUSINESS 2018

48


OVERVIEW

Sundale Dairy, as well as a regional

depot of the Mediterranean

Shipping Company.

The Eastern Cape Rural

Development Agency (ECRDA) is

active in helping small-scale farmers

get access to markets and to

become part of the agriprocessing

chain. The implementation

of Rural Enterprise Development

(RED) hubs is central to this strategy.

RED hubs will supply tractors,

harvesters and offer storage facilities

and milling plants. There will

also be opportunities for farmers

to sell direct to members of their

own community instead of shipping

produce off to a distant location

to be processed there. The first

four hubs will be sited in the district

municipalities of OR Tambo, Chris

Hani and Alfred Nzo.

Agri-parks will support the addition

of value to primary products:

these have been developed

at Lambasi, Ncorha, Sundays River

Valley, Butterworth, Matatiele and

Sterkspruit-Senqu.

The Eastern Cape Development

Corporation (ECDC) also has a

role in supporting agriprocessing

through loans and equity arrangements:

projects that have received

financial support include aquaculture,

the production of dietary

fibre from pineapples and bamboo

products.

The Eastern Cape industry is

further expanding as producers

tend to favour high-rainfall coastal

areas such as the Eastern Cape.

The bigger dairies include Coega

Dairy which was founded in 2011

and is situated in the Coega IDZ.

The Coega Dairy in the Coega

IDZ produces the brand Coastal

and sells milk to all parts of South

Africa. It also manages the Famous Brands Cheese Company. which

supplies product throughout the country.

The province’s farmers mostly sell raw milk to two processors: Parmalat

and Clover. Small-scale dairy farming presents an opportunity to develop

the industry in the former homeland areas, especially in a range of previously

untapped products such as milk powder, speciality cheeses and

long-life milk.

Clover makes UHT/fresh milk in Port Elizabeth and Dairybelle manufactures

natural cheese, processed cheese and speciality cheeses at its factory

in Cookhouse near Somerset East. Ouma Rusks are still made in the small

rural town where they were invented, Molteno, and the current owner of

the brand, Foodcorp, has increased production volumes.

Cadbury Chocolates operates a big site across the lake from the football

stadium in Port Elizabeth and Nestlé makes 11 kinds of chocolate at its

factory in East London. The Sasko mill in Port Elizabeth is the province’s

only big milling plant.

Coca-Cola Sabco and SAB Limited’s Ibhayi brewery are the major

beverage manufacturers in Port Elizabeth and Distell has a bottling plant

in the city.

Sovereign Foods in Uitenhage is the country’s fourth-biggest producer

of poultry and has been the target of a take-over by Country Birds for

some time, but the process has been dragged out because Sovereign

management do not want to sell.

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

Chicory is grown primarily in the coastal areas around Alexandria between

Port Elizabeth and Port Alfred. A drying plant has been established there

and the dried chicory produced is sold to coffee manufacturers nationwide

for local consumption.

Sugar is grown on the northern border of the province, in North

Pondoland. An opportunity for diversification in crop production exists

with the aloe ferox plant, which is indigenous to the Eastern Cape. Like

aloe vera, which is in demand worldwide in cosmetic and health products,

aloe ferox is used for a wide range of skin conditions and various medical

ailments.

ONLINE RESOURCES

Border Kei Chamber of Business: www.bkcob.co.za

Coega IDZ: www.coega.co.za

Eastern Cape Rural Development Agency: www.ecrda.co.za

East London Industrial Development Zone: www.elidz.co.za

Nelson Mandela Business Chamber:

www.nmbbusinesschamber.co.za

Organic Agricultural Association of South Africa:

www.organicsouthafrica.co.za

Perishable Products Export Control Board: www.ppecb.com

49 EASTERN CAPE BUSINESS 2018


OVERVIEW

Manufacturing

Clusters are promoting niche manufacturing.

SECTOR INSIGHT

• First National Battery has

the country’s first industrial

cell factory.

Several cluster development programmes in the Eastern

Cape aim to develop specific industries by bringing together

expertise and logistical support.

Marine manufacturing will be the focus of the Mandela

Bay Composites Cluster (MBCC). With funding from the Eastern Cape

Department of Economic Development, Environmental Affairs and

Tourism (DEDEAT) and the National Department of Trade and Industry

(dti), MBCC will target skills development, innovation in the field of

composites and work on improving the value chain and links to the

supply chain.

A Non-Automotive Manufacturing (NAM) Cluster will concentrate

on training, supplier development, energy efficiencies and developing

new markets. An Energy Manufacturing Hub is planned for 2018.

The dti also offers a Competitiveness Enhancement Programme

aimed at medium-sized manufacturers. It includes a cost-sharing grant

of between 30% and 50% for investments up to R50-million and up to

80% if a group of smaller companies want to collaborate on matters

such as advertising.

New and revived industrial parks are an important plank in provincial

government policy to promote manufacturing. A new park has

been launched in Queenstown, Komani Industrial Park. Seven local

small businesses were involved in constructing the facility. Vulindlela

Heights Industrial Park (Mthatha) has received security upgrades. The

Dimbaza Industrial Park welcomed a new tenant in 2017 in cooler

box manufacturer Ikusasa Green. The park has 24 tenants and serves

King William’s Town.

The provincial government supports diversification. With the automotive

sector supplying 30% of manufacturing employment and 32%

of manufacturing gross value-added, the province’s economy might

be vulnerable to fluctuations in demand for vehicles. The strategy is

targeting sectors where the province already has a competitive advantage

(such as wool and mohair), is labour intensive, will have a broad

impact and has low barriers for SMME entry. Sectors targeted include:

agri-processing and food; timber; tourism; construction; chemicals;

energy and mariculture.

One of South Africa’s most successful manufacturers is Port

Elizabeth-based Aspen. The company has 60 businesses in 50 countries

and the Port Elizabeth and

East London factories play an

important role in producing excellent

products in bulk. The Port

Elizabeth site makes more than

12-billion oral solid dosage forms

every year, in addition to more

than 25-million units of Murine

and Clear Eye eye drops being

made for export to the US. The

PE complex has four components,

covering oral solid, liquid, steriles

and niche high-potency pharmaceutical

products.

First National Battery, a part of

the Metair Group, has one factory

at Fort Jackson, just outside East

London (making plastic components)

and two factories in East

London: automotive batteries

(10 000 per day capacity); industrial

batteries (first in South Africa

producing industrial cells).

Mpact runs two corrugated

packaging convertor facilities in

the Eastern Cape, at Deal Part

in Port Elizabeth and Gately

Township, East London. The

company recently spent R150-

million on doubling capacity at

EASTERN CAPE BUSINESS 2018

50


OVERVIEW

the Port Elizabeth plant. Mpact

has 21 manufacturing sites across

Southern Africa.

Bodene, a subsidiary of

Fresenius Kabi, makes intravenous

medicine in Port Elizabeth.

East London hosts Johnson &

Johnson’s finance, operations

and research and development

divisions.

Swedish concern Fagerhult

Group has entered the South

African market via an acquisition

of the factory of Port Elizabeth’s

Lighting Innovations, and the

two subsidiary companies Arrow

Lighting and Beacon Lighting.

Montego Pet Nutrition is

Graaff-Reinet’s biggest private

employer, with more than 200

staff members working in the

Karoo town’s factory. Established

in 2000, the company now makes

about 200 tons of product daily

and supplies more than 1 000

retail outlets across South Africa.

There is great potential to

create more value from the

excellent wool, leather and

mohair that the province’s

livestock produce. The production

and working with merino wool

and mohair fibres are skills that

have been handed down from

generation to generation.

A fibre processing plant to spin

wool and mohair fibre into yarn is

planned, as is a textile mill to focus

on cotton, poly-cotton and acrylic

fabric. The latter is planned for the

IDZ in East London, which is already

home to Da Gama Textiles,

whose factory has the capacity

to produce 45-million square metres

of fabric per annum. Da Gama

makes the popular and distinctive

shweshwe fabric, using its own

unique printing process which makes it very difficult for fakers to copy.

The BBF Safety Group invested R16-million in a new machine at its

Port Elizabeth plant in 2016 which will take shoe production up to 5 000

pairs per day. The injection moulding machine can inject a moulded

sole to the shoe upper every 15 seconds. The Lemaitre brand is widely

known and used within the mining industry.

The BBF Group was formed from a merger of several South African

companies, to allow them to specialise and to compete with cheap

foreign imports. The companies were Bagshaw Footwear, Beier Safety

Footwear, Bronx Safety, United Frams and Wayne.

ONLINE RESOURCES

Border-Kei Chamber of Commerce: www.bkcob.co.za

Coega Development Corporation: www.coega.co.za

Department of Economic Development, Environmental Affairs and

Tourism: www.dedea.gov.za

East London Industrial Development Zone: www.elidz.co.za

Manufacturing Circle: wwww.manufacturingcircle.co.za

National Association of Pharmaceutical Manufacturers:

www.napm.co.za

South African Bureau of Standards: www.sabs.ca.za

51 EASTERN CAPE BUSINESS 2018


OVERVIEW

Automotive

Beijing Automotive’s new factory is a major boost for the sector.

SECTOR INSIGHT

Volkswagen SA makes

130 000 engines annually in

Uitenhage.

• Daimler is introducing a

new commuter bus.

Already home to some of the biggest brands in original equipment

manufacturing (OEM) and automotive components in

Volkswagen, Mercedes-Benz, Ford, Goodyear, Continental

Tyre SA, Bridgestone and Shatterprufe, the addition of two

Chinese firms, First Automotive Works (FAW) and Beijing Automobile

Corporation (BAIC), confirms the Eastern Cape’s prime position in

this sector.

Beijing Automotive Industry Group (BAIC) expects to be building

50 000 vehicles per year at its site at Coega Industrial Development

Zone (IDZ) by 2022. Construction of the factory was held up in 2017

because of concerns by local small businesses about the percentage

of work that was going to local business.

Companies like BAIC may well be positioning themselves to push

into Africa, not only for selling vehicles but for sending automotive

parts and partly-assembled kits further north. A new pan-African

organisation has been established to promote the auto industry on

the continent, the African Association of Automotive Manufacturers

(AAAM). Most international brands such as Volkswagen have given

responsibility for Africa to their South African offices.

The Eastern Cape manufactures half of the country’s passenger

vehicles and provides 51% of South Africa’s vehicle exports. The sector

accounts for over 40 000 formalsector

jobs in the Eastern Cape.

The South Africa automotive

sector makes up about 7%

of South Africa’s gross domestic

product and is responsible for approximately

12% of the country’s

manufacturing exports.

The decision in 2017 of General

Motors to disinvest from South

Africa does not seem to have

had any knock-on effect. The

company’s selling of its plant in

Port Elizabeth was just one sale

of many around the world. Isuzu

has bought the factory.

Volkswagen’s two new types

of Polos started rolling off the

production line in Uitenhage in

2018. Volkswagen’s R6.1-billion

investment will take production

up to full capacity of 160 000 vehicles

in 2019, from 110 000 in 2017.

The increase will mean that a third

shift will be introduced.

In addition, VWSA manufactures

130 000 engines for local demand

and for export to countries

such as Russia, India and Mexico.

EASTERN CAPE BUSINESS 2018

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OVERVIEW

Ford in Port Elizabeth is the country’s

other engine manufacturer.

The potential of computers

to improve efficiencies in the

automotive sector is enormous.

Enterprise Resource Planning

(ERP) refers to software that

links up various aspects of a

business. This is a speciality of

SYSPRO, which is active in many

sectors, including automotive.

A recent product allows for reduced

waste in manufacturing

and improves links between

units (or companies) in the supply

chain.

Smart factories are the

subject of research being undertaken

by the Department

of Computing Sciences at the

Nelson Mandela Metropolitan

University (NMMU). The research

is supported by Volkswagen SA

and Mercedes-Benz SA.

A new commuter bus

launched by Daimler Trucks

and Buses Southern Africa will

be assembled at the company’s

plant in East London in 2018.

Fewer gear shifts are one of the

features of the OF-1723, which

should increase fuel efficiency.

The establishment of the

Eastern Cape Automotive

Industry Forum (ECAIF) in 2016

is expected to assist black business

people to get involved in

the sector. A programme to encourage

young people to enter

the motor industry, PRIME

(Programme for Industrial and

Manufacturing Excellence),

has seen the first group of 137

graduates take up placements.

An Automotive Production

and Development Programme

(APDP) is in place to support the

automotive industry and to encourage investment in local facilities.

It is run by the Department of Trade and Industry (dti).

Components

Only 35% of the components and parts used to make vehicles in

South Africa are produced locally. The large number of vehicle models

produced in South Africa is a complicating factor for the components

sector: low volumes often mean high prices. Two Port Elizabeth companies

export large portions of their production to overcome this:

Schaeffler SA exports to its international parent so that it can achieve

higher volumes. Shatterprufe supplies most windscreens to the South

African market but there are 12 model ranges to serve.

About 150 automotive suppliers of various types operate in the

Eastern Cape. Sectors include leather works, batteries, automotive

tooling, catalytic converters, glass, lamps, radiators and alloy wheels.

The catalytic converter sector experienced incredible growth for

several years but some volatility in the platinum mining sector, together

with increased interest in electric vehicles and hybrids, means that

exporters (largely based in Port Elizabeth) have had to work harder.

SJM Flex SA, manufacturer of flexible, stainless-steel couplings,

was named overall exporter of the year by the Exporters’ Club in 2016.

Catalytic converter Eberspächer SA won a merit award in the corporate

category for what the judges called its “entrepreneurial flair and major

accomplishments”. Testing company Jendamark Automation also won

a merit award.

Firestone was the first tyre company to be established in Port

Elizabeth. It was soon followed by Goodyear (in Uitenhage) and General

Tyre (now Continental Tyre SA). Continental has about 1 600 employees

and sells tyres domestically and internationally. Bridgestone has

production facilities in Port Elizabeth and Brits.

Both the Coega IDZ and the East London IDZ are positioning themselves

as sites for the components manufacturing sector.

ONLINE RESOURCES

Automotive Industry Development Centre: www.aidc.co.za

Automotive Industry Export Council: www.aiec.co.za

Automotive Production and Development Programme:

www.thedti.co.za

Catalytic Converter Interest Group: www.sassda.co.za

National Association of Automotive Component and Allied

Manufacturers: www.naacam.co.za

National Association of Automobile Manufacturers of South Africa:

www.naamsa.co.za

53 EASTERN CAPE BUSINESS 2018


OVERVIEW

Water

A large project is planned for the Umzimvubu River.

SECTOR INSIGHT

Desalination joint ventures

are under discussion.

• 37% of South Africa’s

water is lost.

Several plans are under consideration to alleviate the water

shortages facing the Eastern Cape’s towns and rural areas.

In 2017, the worst-hit district municipalities, Amathole, Chris

Hani and Joe Gqabi District Municipalities, received help from

national and provincial authorities.

The Nelson Mandela Bay Municipality has been looking at ways of

finding new water, including desalination and tapping new underground

water sources.

The completion of phase two of the Nooitgedacht low-level water

scheme during 2017 helped ease the pressure on the metropole,

with the biggest dams such as the Churchill and Kouga dams having

reached critically low levels of 15%. A desalination plant at Swartkops

and new boreholes around the Uitenhage Springs are among other

projects that will help to alleviate shortages.

The municipality’s website is raising awareness about water scarcity.

The slogans that come up on the scroll include, “Go Grey!” and “Public

enemy: water leaks”.

One option being considered is for the Nelson Mandela Bay

Municipality to join hands with SABMiller, which needs a lot of water

to makes its products, and Marina Sea Salt, which desalinates sea

water to make salt. The Coega

Development Corporation (CDC)

is also investigating desalination

as it needs water for the gasrelated

industries at the Coega

Industrial Development Zone.

The Nelson Mandela Bay

metropole currently gets its water

from 10 dams, six of which

are owned by the municipality.

The Churchill and Impofu dams

supply half the total supply, with

the latter dam having a full storage

capacity of 105-million cubic

metres. The municipality maintains

about 3 000km of reticulation

water mains, about 650km

of bulk-water pipelines and six

waste-water treatment works.

Water services are provided to

the citizens of the Eastern Cape by

17 water service authorities which

oversee 163 drinking water supply

systems. Muncipalities and

Amatola Water are the primary

providers of services.

Purification, desalination,

water-leakage management and

waste-water treatment are some

of the problems facing the sector

and solutions are urgently

needed. There are opportunities

for innovative entrepreneurs.

EASTERN CAPE BUSINESS 2018

54


OVERVIEW

According to Water Wheel magazine, 37% of water delivered to the

nation’s municipalities is lost.

A water supply and hydropower project is planned on the

Umzimvubu River, under the control of the National Department

of Water and Sanitation. The project entails the construction of two

multipurpose dams, Ntabelanga and Laleni Dams, on the Tsitsa River,

which is a tributary of the Umzimvubu, to supply irrigated agriculture,

domestic and industrial water requirements, and hydropower generation

in the catchment area. The smaller dam at Tsitsa Falls will supply

the hydropower element.

The Umzimvubu catchment and river system stretches for over

200km from its source in the Maloti‐Drakensberg watershed on the

Lesotho escarpment to Port St Johns. The river and adjacent forests,

grasslands, thickets and dune vegetation are amazingly diverse but are

threatened in various ways. The Umzimvubu Catchment Partnership

Programme wants to find ways protect the environment while helping

with poverty alleviation through the provision of water, erosion control

and fodder for livestock and food security.

In 2017/18 the DWS will spend R12.5-billion on dams, water transfer

schemes and bulk distribution. Improving and expanding water

infrastructure are key elements to ensuring water security in a waterscarce

country.

The long-term drought that afflicted South Africa brought several

responses from the Eastern Cape Department of Water and Sanitation

(DWS) and have led to the development of the Eastern Cape Water

Master Plan in an effort to alleviate the drought situation.

Another intervention by DWS, the Hyancinth project, has a budget

of R6.09-million. The invasion of the aquatic weed needs to be controlled

and, if unchecked, will disrupt water systems throughout the

province. Importantly, clearing water hyacinth can provide significant

volumes of biomass for the creation of alternative bioenergy.

Systems

Inter-basin water transfers are the norm in South Africa. In the 1950s,

ONLINE RESOURCES

Amatola Water: www.amatolawater.co.za

National Department of Water and Sanitation: www.dwa.gov.za

Umzimvubu Catchment Partnership Programme:

www.umzimvubu.org

Water Institute of South Africa: www.wisa.org.za

Water Research Commission: www.wrc.org.za

the Orange River Project delivered

water from the Orange River

to citrus farmers in the far-away

Eastern Cape. This project made

the citrus industry possible in

places like Addo.

The country’s river systems

are mostly not where its people

are, so 80% of the water used

by the most populous and economically

important province,

Gauteng, is imported from

neighbouring Lesotho.

The Nooitgedacht Low Level

Scheme is an extension of this

system of transfers. It treats water

from the Gariep Dam which

comes to the Port Elizabeth area

via the Orange-Fish River Tunnel

and various rivers that are connected

to the Sundays River

irrigation scheme.

Amatola Water manages

bulk water infrastructure across

50 000km², encompassing the district

municipalities of Chris Hani

and Amathole, together with

portions of other municipal areas.

Backlogs in rural areas and smaller

municipalities are still prevalent,

and this water authority is playing

a key role in reducing and eradicating

these inequalities.

The Eastern Cape

Development Corporation is

helping the Makana Municipality

in terms of the Integrated

Social Infrastructure Delivery

Programme (ISIDP). With the city

of Grahamstown housing many

schools and a university (and the

National Arts Festival), the Makana

Water Crisis Intervention Project is

strategically important .

55 EASTERN CAPE BUSINESS 2018


OVERVIEW

Education

Nelson Mandela University has launched an Ocean Sciences Campus.

Research students from the University of Fort Hare are helping

the small village of Upper Blinkwater get their own electricity

from a mini-grid powered by biogas digesters. Staying

current with the latest research in renewable energy is vital

for the provincial economy, as is the need to engage in research that

helps communities.

The Eastern Cape is home to five universities, three of which are

comprehensive universities. Nelson Mandela Metropolitan University

(NMMU), Walter Sisulu University (WSU) and University of South Africa

(Unisa) offer both diplomas (vocational) and academic programmes

(degrees).

NMMU has six campuses (including one in the Western Cape town

of George) and seven faculties. In 2017, NMMU inaugurated its Ocean

Science Campus at its Port Elizabeth base. This includes a unit aimed at

combating sea fisheries crime (FishFORCE, with support from Norway)

and the South African International Maritime Institute. The university

has four marine sector chairs funded by the South African Research

Chair Initiative (SARChI) and the National Research Foundation (NRF):

• Marine Spatial Planning (ocean zoning)

• Shallow Water Ecosystems (including rare coastal rock pools)

• Ocean Sciences and Food Security (with Southampton University)

• Law of the Sea (including oil resource management, port law

and marine tourism law).

Walter Sisulu University has four faculties: Education; Health Sciences;

Business, Management Sciences and Law; and Science, Engineering

and Technology.

SECTOR INSIGHT

Biogas digesters are under

the spotlight at Fort Hare

University.

• The Mvula Trust is rolling

out water and sanitation

to schools.

Rhodes University in

Grahamstown had just over 8 000

students in 2015, the majority of

whom live in residences, but its

academic and research staff have

a disproportionately high number

of master’s and doctoral degrees.

Rhodes has 14 of the national research

chairs appointed under

SARChI, including chairs in radio

astronomy and biotechnology.

The university’s journalism school

is a leader in its field.

Fort Hare University has five

faculties, 10 schools and, at its East

London campus, the Institute of

EASTERN CAPE BUSINESS 2018

56


OVERVIEW

Social and Economic Research.

Fort Hare is supported by the

National Research Foundation

and participates and has approved

research programmes in

Water Resource Management,

Sustainable Agriculture and Land

Use Strategies.

There are several examples

in the Eastern Cape of collaboration

between the manufacturing

sector and educational

institutions: General Motors

SA has assigned R3.6-million

to a Chair in Mechatronics at

Nelson Mandela Metropolitan

University (NMMU). NMMU offers

a Bachelor of Engineering

in Mechatronics, covering electronics,

mechanical engineering

and computer-aided design.

Volkswagen supports the

International Chair in Automotive

Engineering at NMMU.

Rhodes University’s Centre for

Environmental Water Quality, within

the Institute for Water Research,

is sponsored by Unilever.

InnoVenton: NMMU Institute of

Chemical Technology commercialises

research and has several

clients in the private sector.

Colleges and schools

The provincial government has

committed a sum of R1.5-billion

over five years to aligning TVET

colleges more closely with the

needs of the local economy

through learnerships.

The Eastern Cape has eight

Technical and Vocational

Education Training (TVET) colleges,

most of which have more

than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa,

Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College.

King Sabata Dalinyebo offers business and engineering studies among

its formal programmes, and short courses in bricklaying and computer

studies.

Over 20 000 students are enrolled at this level in the province.

The Eastcape Midlands TVET College has five sites: in Graaff-Reinet

and Grahamstown and three in Uitenhage, where students can

study Business Studies, Electrical Engineering, ICT and Computer

Science and Mechanical Engineering. The other campuses specialise

in Business Studies.

Lovedale Public TVET College serves the community through

three campuses at King William’s Town, Alice and Zwelitsha, near

King William’s Town. The programmes of each campus reflect the

economic priorities of that region.

In Alice, the focus is on agriculture, King William’s Town offers

business diplomas, while engineering is available to students at the

Zwelitsha facility.

Buffalo City TVET College, with two large campuses in East London

and Mdantsane, specialises in Business and Engineering for full-time

studies, but offers a wide range of part-time courses as well. The college’s

School of Occupational Training is located at St Marks Road.

In the Eastern Cape, more than 90% of children in public schools

benefit from a non-fee policy. Grade R classes are attached to more

than 90% of primary schools.

The province’s school-nutrition programme feeds 1.6-million children,

while the transport programme delivers approximately 56 461

children to 614 schools.

Infrastructure is still lacking in many areas, something that the developmental

NGO Mvula Trust is putting right. With funding from the

Eastern Cape Department of Education, the trust in 2016/17 provided:

• 89 schools with sanitation

• 1 676 toilets

• 309 water tanks.

ONLINE RESOURCES

Eastern Cape Department of Education: www.ecdoe.gov.za

National Department of Basic Education: www.education.gov.za

National Department of Higher Education: www.dhet.gov.za

National Research Foundation: www.nrf.ac.za

Ocean Sciences campus: www.oceansciences.mandela.ac.za

Technology Innovation Agency: www.tia.org.za

57 EASTERN CAPE BUSINESS 2018


OVERVIEW

Banking and finance

New banking licences are being issued.

Agriculture and renewable energy are two of the most important

economic sectors in the Eastern Cape. The first is as

old as settlement in the province, the second has taken off

only in the last few years: for both sectors, the banking and

financial services sector is vital.

All retail banks have agricultural desks, several finance agencies of

provincial and national government have an agricultural focus, and

most of the large agricultural companies have a range of financial

products to offer farmers.

Nedbank Business Banking has a new focus on agriculture, with

business managers in Port Elizabeth, Humansdorp and East London

all supported by agricultural specialists. Nedbank sponsors the Komga

Show and the bank has paid out loans to the Humansdorp Co-Op

which specialises in citrus and dairy products.

In the far north-eastern part of the province, Nedbank, the WWF,

and Environmental and Rural Solutions (ERS) are partners in a project to

improve land use and to develop a cattle auction to assist farmers and

buyers in the area to get better access to markets. In 2017 the fourth

cattle auction was held at a specially developed site in Mzongwana.

Improved grazing techniques are leading to better prices being paid

by commercial farmers.

The agreement that Absa Business Bank (ABB) signed with agricultural

company BKB allows farmers to borrow money against their

produce. The bank flagged the event as the precursor to a possible

future agricultural bank. With ABB’s experience in the agricultural

field, and BKB’s access to 19 000 primary producers, the agreement

has the potential to unlock investment in the agricultural and agriprocessing

sectors. BKB has a national presence, but its headquarters

are in Port Elizabeth. It is active in many spheres and has a strong wool

and mohair profile.

Investment company PSG Group is one of the biggest investors

in Capitec and is a majority shareholder in PSG Konsult, a financial

services company. Like other companies of its type, PSG Konsult is

present in the big Eastern Cape towns, but it also has a presence in

regional centres such as Middelburg and Aliwal North. From the Karoo

Midlands towns of Graaff-Reinet, Cradock, Adelaide and Somerset East,

the firm of Gerber, Botha & Gowar dispenses financial advice across

SECTOR INSIGHT

Nedbank and partners are

raising incomes in a rural

community.

large parts of central South Africa.

Standard Bank, which was

founded in Port Elizabeth in

1862, operates in 32 countries

(20 in Africa), has nearly 69 000

employees and assets in the

region of $16-billion. Together

with the other banks, consulting

companies and other firms

in the financial and business services

sector, it is responsible of

19.2% of the Eastern Cape’s Gross

Domestic Product (StatsSA). The

sector provides employment for

141 000 people.

In Port Elizabeth, there is a

geographic concentration of financial

services: the city’s own

financial district stretches along

a section of Cape Road from Mill

Park to Newton Park and includes

the Greenacres shop and office

complex. This includes the offices

of PSG Konsult, Liberty Life,

Alexander Forbes, Hollard and

Momentum. Nedbank Business

Banking has its headquarters

just one block away from the

Greenacres complex. Only AON

appear to buck the trend, with

offices in Central.

EASTERN CAPE BUSINESS 2018

58


OVERVIEW

Also on Cape Road and in the

Greenacres complex is FNB’s regional

office, FNB Newton Place.

This building houses all the

FirstRand group’s offices, such as

Rand Merchant Bank, FNB Private

Clients and FNB Online.

Whereas the private sector is

the biggest factor in the banking

sector, the state is moving

to create publicly-owned banks.

Post Bank, a division of the South

African Post Office, is far advanced

in its application for a full banking

licence and a further two

state banks are planned: Ithala

(currently an enterprise funder

in KwaZulu-Natal) and a Human

Settlements Development Bank,

which will focus on housing for

poorer households and statefunded

housing projects. This

may have relevance for a province

such as the Eastern Cape, which

has a large rural population.

Several new licences for banks

are in the pipeline, with the first

of these being a digital bank. The

banking licence issued in 2017 to

Take Your Money Everywhere

(Tyme, by Commonwealth Bank

of Australia) is the first to be issued

since Capitec was granted

a licence by the South African

Reserve Bank in 1999.

Capitec is now a major player

on the South African retail banking

scene and has 117 branches

or ATMs across the Eastern Cape,

including Bizana and Lusikisiki.

It now merits inclusion in a new

retail “Big Five”, with Standard

Bank, Absa, FNB and Nedbank.

In terms of assets, the five biggest

banks are Standard Bank,

FirstRand (which owns FNB), Absa (which is part of Barclays Group

Africa), Nedbank and Investec. According to the Reserve Bank, this

group had 89% of market share in 2015.

Another applicant for a new banking licence is Discovery, an existing

giant on the JSE. With a market value of R83-billion and a wide range

of products and services, it already has access to millions of customers.

Life insurer MMI Holdings is entering a partnership with African Bank

to enable it to start taking deposits and loaning money.

ONLINE RESOURCES

Association for Savings and Investment South Africa:

www.asisa.org.za

Auditor-General of South Africa: www.agsa.co.za

Chartered Institute for Government Finance, Audit and Risk

Officers: www.cigfaro.co.za

Eastern Cape Development Corporation: www.ecdc.co.za

Financial Services Board: www.fsb.co.za

59 EASTERN CAPE BUSINESS 2018


OVERVIEW

Development finance and

SMME support

Aquaponics and forestry are receiving support.

Training programmes for new business owners and young

people, a commitment from the provincial government and

from municipalities that goods and services will be sourced

from small, medium and micro-enterprises (SMMEs) and loan

financing for start-ups: these are among the initiatives in place to help

small businesses and co-operatives in the Eastern Cape.

The provincial government has signed an agreement with the

South African National Defence Force to take on young people to

work on infrastructure maintenance and the Provincial Departments

of Health and Education are making similar plans. There is a focus on

agriculture, with the Office of the Premier and the Department of

Rural Development and Agrarian Reform considering the creation of

a fund to support training for young people and start-up enterprises

in aquaculture and hydroponics.

In terms of the Local Economic Development Procurement

Framework, SMMEs will get 50% of all provincial government spending

on goods and services. A database has been established.

A programme of the National Department of Small Business

(DSBD) is to be rolled out at municipal level in the Eastern Cape. An

amount of R6.6-million has been allocated to the Informal and Micro-

Enterprise Development Programme (IMEDP). The DSBD has several

other programmes to assist SMMEs and co-operatives. These include:

• The Black Business Supplier Development Programme, a costsharing

grant to promote competitiveness

• The Co-operative Incentive Scheme, a 100% grant.

SECTOR INSIGHT

SMMEs will receive R121-

million in loans in 2017/18.

The Small Enterprise Development Agency (Seda) is an agency of

the DSBD and gives non-financial support to entrepreneurs through

training, assistance with filling in forms, marketing and creating business

plans. It helps small businesses draft applications for loan finance.

The Seda Technology Programme (Stp) helps potential businesses

become trading entities. Seda has a programme to make co-operatives

and jointly owned enterprises stronger. Seda’s main provincial office

is East London, with nine other offices located around the province.

Several of Seda’s technology incubators are in the Eastern Cape. Port

Elizabeth is the head office of the Chemin incubator which supports

SMMEs in the downstream chemical sector. Furntech (a furniture incubator)

has a branch in Mthatha

and there are also construction incubators

in the towns of Mthatha

and Port Elizabeth.

The Masisizane Fund offers

loan financing at good rates and

training through its Business

Accelerator programme. As a

non-profit initiative of the Old

Mutual Group, the fund focusses

on the cash flow of potential businesses

rather than insisting on

security in the form of property.

Since 2014, the agencies

of the Eastern Cape Provincial

Government have disbursed

R337-million in loans to entrepreneurs

in 748 businesses. For

2017/18, an amount of R121-

million has been allocated.

The big retail banks have desks

dedicated to promoting small enterprise

and several agencies have

a specific focus, for example the

Eastern Cape Rural Development

Agency (ECRDA).

In promoting forestry enterprise,

the ECRDA reported in

2015/16 having made R15-million

available, while the Eastern Cape

Development Corporation (ECDC)

EASTERN CAPE BUSINESS 2018

60


OVERVIEW

had contributed R8.3-million and

the Development Bank of South

Africa (DBSA) R64-million. This is

a good example of the variety of

funding available.

The Industrial Development

Corporation (IDC) is another

financing institution that is active

in the Eastern Cape. Several

development agencies receive

support from the IDC, for example

the Nkonkobe Development

Agency in the Amathole District.

Two of the ECDC’s seven business

units are devoted to small

business: Development Finance

and Enterprise Development. The

ECDC has several financial products

tailored to meet the various

needs of business, entrepreneurs

and investors, ranging from

short-term to long-term finance

and small- and micro-loans.

The ECDC and the Technology

Innovation Agency (TIA) jointly

run the TIA-ECD Innovation Seed

Fund Programme, which aims to

identify and co-fund earlier stage

technology innovation projects in

the province.

In its role as a provider of advice,

the ECDC assisted a delegation

from the Amahlubi Traditional

Council when it attended the

World Forestry Congress. This

is part of the DBSA Jobs Funds

Forestry projects. Help Desks

have been established to support

small business in Port Elizabeth

and East London.

One of the companies supported

by the ECDC, outdoor furniture

manufacturer PolyFibre Pty

(Ltd), has received SABS approval

for its products, which means the

company can move to commercialisation. PolyFibre uses recycled

plastic and pineapple waste to make its products.

As part of its Small Contractor Development, Training and

Community Participation programme, the South African National

Roads Agency (SANRAL) offered training to 20 people from four SMME

sub-contractors in the making of dolosse. Dolosse are the large interlocking

blocks of concrete used to protect the N2 and railway line from

the sea. Eight of the 2.5-ton dolosse are manufactured every day. The

project’s main concrete subcontractor is Dynaform.

The National Empowerment Fund (NEF) provides financial support

from R250 000 up to R75-million for start-ups, the expansion of existing

business, as well as the acquisition of equity. In the Eastern Cape,

the NEF is supporting companies working in the fields of solar energy,

restaurant franchises and transport.

The Nelson Mandela Bay Business Chamber has a section devoted to

SME support on its website and offers mentorship to start-ups and entrepreneurs.

The Border-Kei Business Chamber has similar programmes.

The Afrikaansehandelsinstituut (AHI) has rebranded as the Small

Business Institute. Representing over a hundred chambers, the SBI is

a member of Business Unity South Africa.

ONLINE RESOURCES

Eastern Cape Development Corporation: www.ecdc.co.za

Eastern Cape Rural Development Agency: www.ecrda.co.za

National Department of Small Business Development:

www.dsbd.gov.za

National Small Business Chamber: www.nsbc.org.za

Small Enterprise Finance Agency: www.sefa.org.za

Small Enterprise Development Agency: www.seda.org.za

61 EASTERN CAPE BUSINESS 2018


LISTING

Eastern Cape Provincial

Government

A guide to the Eastern Cape’s provincial government

departments. Visit www.ecprov.gov.za

Office of the Premier

Premier: Phumulo Masualle

State House, Independent Avenue,

Bhisho 5605

Tel: +27 40 609 6626

Fax: +27 40 639 1419

Website: www.ecprov.gov.za

Department of Cooperative Governance

and Traditional Affairs

MEC: Fikile Xasa

Tyamzashe Building, Room 2124, 2nd Floor, Bhisho 5605

Tel: +27 40 609 5788/5789

Fax: +27 40 639 2135

Website: www.eclgta.ecprov.gov.za

Department of Economic Development,

Environmental Affairs and Tourism

MEC: Sakhumzi Somyo

2nd Floor, Beacon Hill, Hockley Close, King Williams Town 5600

Tel: +27 43 605 7006/7216

Fax: +27 43 605 7306

Website: www.dedea.gov.za

Department of Education

MEC: Mandla Makupula

Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha

Tel: +27 40 608 4202

Fax: +27 40 608 4247

Website: www.ecdoe.gov.za

Department of Health

MEC: Dr Pumza Dyantyi

Dukumbane Building, Independence Avenue, Bhisho 5605

Tel: +27 40 608 1114

Fax: +27 40 608 1118

Website: www.echealth.gov.za

Department of Human Settlements

MEC: Helen Sauls-August

31-33 Phillip Frame Road, Waverly Park, Chiselhurst, East London

Tel: +27 43 711 9777

Fax: +27 43 711 9785

Website: www.ecdhs.gov.za

Department of Roads and Public Works

MEC: Thandiswa Marawu

5 Qasana Building, Independence Avenue, Bhisho 5605

Tel: +27 40 609 4648

Fax: 086 298 5598 (SA)

Website: www.ecdpw.gov.za

Department of Rural Development

and Agrarian Reform

MEC: Mlibo Qoboshiyane

Dukumbane Building , Independence Avenue, Bhisho 5606

Tel: +27 40 609 3472

Fax: +27 40 636 3462

Website: www.drdar.gov.za

Department of Safety and Liaison

MEC: Weziwe Tikana

Stellenbosch Park, Flemming St, Schornville,

King William’s Town 5601

Tel: +27 43 604 7414

Fax: 086 298 5598

Website: www.ecprov.gov.za

Department of Social Development

MEC: Nancy Sihlwayi

Cnr Hockley and Hargreaves Streets, Beacon Hill,

King William’s Town 5600

Tel: +27 43 605 5210

Fax: +27 43 605 5472

Website: www.ecdsd.gov.za

EASTERN CAPE BUSINESS 2018

62


LISTING

Department of Sports, Recreation,

Arts and Culture

MEC: Pemmy Majodina

Wilton Zimasile Mkwayi Building, 5 Eales Street,

King William’s Town 5600

Tel: +27 43 604 4101 | Fax: +27 43 642 6759

Website: www.ecsrac.gov.za

Provincial Treasury

MEC: Sakhumzi Somyo

Provincial Treasury , Tyamzashe Building, Bhisho 5605

Tel: +27 40 609 5755/5014

Fax: +27 40 639 1030

Website: www.ectreasury.gov.za

Department of Transport

MEC: Weziwe Tikana

Stellenbosch Park, Flemming St, Schornville,

King William’s Town 5601

Tel: +27 43 604 7414 | Fax: 086 298 5598

Website: www.ectransport.gov.za

Eastern Cape Local Government

ALFRED NZO DISTRICT MUNICIPALITY

Erf 1400, Ntsizwa Street, Mount Ayliff

Tel: +27 39 254 5000 | Fax: +27 39 254 0343

Email: info@andm.gov.za

Website: www.andm.gov.za

Matatiele Local Municipality

Tel: +27 39 737 8100

Fax: +27 39 737 3611

Website: www.matatiele.gov.za

Mbizana Local Municipality

Tel: +27 39 251 0230

Fax: +27 39 251 0917

Website: www.mbizana.gov.za

Ntabankulu Local Municipality

Tel: +27 39 258 0056

Fax: +27 39 258 0173

Website: www.ntabankulu.gov.za

Umzimvubu Local Municipality

Tel: +27 39 255 8500

Fax: +27 39 255 0167

Website: www.umzimvubu.gov.za

AMATHOLE DISTRICT MUNICIPALITY

40 Cambridge Street, East London

Tel: +27 43 701 4000 | Fax: +27 43 742 0337

Email: info@amathole.gov.za

Website: www.amathole.gov.za

Amahlathi Local Municipality

Tel: +27 43 683 5000 | Fax:+27 43 683 2970

Website: www.amahlathi.gov.za

Great Kei Local Municipality

Tel: +27 43 831 1028 | Fax: +27 43 831 1483

Website: www.greatkeilm.gov.za

Mbashe Local Municipality

Tel: +27 47 489 5800 | Fax: +27 47 489 5800

Website: www.mbhashemun.gov.za

Mnquma Local Municipality

Tel: +7 47 401 2400 | Fax: +27 47 491 0195

Website: www.mnquma.gov.za

Ngqushwa Local Municipality

Tel: +27 40 673 3095 | Fax: +27 40 673 3771

Website: www.ngqushwamun.gov.za

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EASTERN CAPE BUSINESS 2018


Raymond Mhlaba Local Municipality

Tel: + 27 46 7400

Fax: +27 46 645 2562

Website: www.raymondmhlaba.gov.za

BUFFALO CITY METROPOLITAN

MUNICIPALITY

117 Oxford Street, Cnr North & Oxford Streets, Trust Centre, East London

Tel:+27 43 705 2000 | Fax:+27 43 743 1688

Website: www.buffalocity.gov.za

CHRIS HANI DISTRICT MUNICIPALITY

15 Bells Road, Queenstown

Tel: +27 45 808 4600 | Fax: +27 45 838 1556

Website: www.chrishanidm.gov.za

Emalahleni Local Municipality

Tel: +27 47 878 0020 | Fax: 049 878 0112

Website: www.emalahleni.gov.za

Engcobo Local Municipality

Tel: +27 47 548 5600 | Fax: +27 47 548 1078

Website: www.engcobolm.gov.za

Enoch Mgijima Local Municipality

Tel: + 27 45 807 2606

Fax: +27 45 807 2637

Website: www.lukhanji.co.za

Intsika Yethu Local Municipality

Tel: +27 47 874 8700 | Fax: +27 47 874 0010

Website: www.intsikayethu.gov.za

Inxuba Yethemba Local Municipality

Tel: +27 48 801 5000

Fax: +27 48 881 1421

Website: www.iym.co.za

Sakhisizwe Local Municipality

Tel: +27 47 877 5200

Fax: +27 47 877 0000

Website: www.sakhisizwe.gov.za

JOE GQABI DISTRICT MUNICIPALITY

Cnr Cole and Graham Streets, Barkly East

Tel: +27 45 979 3000

Fax: +27 45 971 0251

Website: www.jgdm.gov.za

Elundini Local Municipality

Tel: +27 45 932 8100 | Fax: +27 45 932 1094

Website: www.elundini.org.za

Walter Sisulu Local Municipality

Tel: + 27 51 653 1777

Fax: + 27 51 653 0056

Website: www.wslm.gov.za

Senqu Local Municipality

Tel: +27 51 603 1300 | Fax: +27 51 603 0445

Website: www.senqumunicipality.co.za

NELSON MANDELA BAY METROPOLITAN

MUNICIPALITY

City Hall, Vuyisile Mini Square,

Govan Mbeki Avenue, Nelson Mandela Bay

Tel: +27 41 506 3208/9

Fax: +27 41 506 2422

Website: www.nelsonmandelabay.gov.za

OR TAMBO DISTRICT MUNICIPALITY

OR Tambo House, Nelson Mandela Drive, Myezo Park, Mthatha

Tel: +27 47 501 6400

Fax: +27 47 532 6518

Website: www.ortambodm.gov.za

Ingquza Hill Local Municipality

Tel: +27 39 252 0131

Fax: +27 39 252 0699

Website: www.ihlm.gov.za

King Sabata Dalindyebo Local Municipality

Tel: +27 47 501 4000 | Fax: +27 47 531 3128

Website: www.ksd.gov.za

Mhlontlo Local Municipality

Tel: +27 47 553 7000 | Fax: +27 47 553 0189

Website: www.mhlontlolm.gov.za

EASTERN CAPE BUSINESS 2018 64


Nyandeni Local Municipality

Tel: +27 47 555 5000 | Fax: +27 47 555 0202

Website: www.nyandenilm.gov.za

Port St Johns Local Municipality

Tel: +27 47 564 1207

Fax: +27 47 564 1206

Website: www.psjmunicipality.gov.za

SARAH BAARTMAN DISTRICT

MUNICIPALITY

32 Govan Mbeki Avenue, Port Elizabeth

Tel: +27 41 508 7111

Fax: +27 41 508 7000

Website: www.sarahbaartman.co.za

Blue Crane Route Local Municipality

Tel: +27 49 807 5700 | Fax: + 27 49 892 4319

Website: www.bcrm.gov.za

Dr Beyers Naude Local Municipality

Tel: +27 49 807 5700 | Fax: +27 49 892 4319

Website: www.camdeboo.gov.za

Kouga Local Municipality

Tel: +27 42 200 2200 | Fax: +27 42 200 8606

Website: www.kouga.gov.za

Kou-Kamma Local Municipality

Tel: +27 42 288 7200 | Fax: +27 42 288 0797

Website: www.koukammamun.co.za

Makana Local Municipality

Tel: +27 46 603 6131

Fax: +27 46 622 9700

Website: www.makana.gov.za

Ndlambe Local Municipality

Tel: +27 46 624 1140

Fax: +27 46 624 2669

Website: www.ndlambe.gov.za

Sundays River Valley Local Municipality

Tel: +27 42 230 7700/0077

Fax: +27 42 230 1799

Website: www.srvm.gov.za

Municipalities in the Eastern Cape

Free State

LESOTHO

Alfred Nzo

Matatiele

KwaZulu-

Natal

Northern Cape

Western

Cape

Inxuba Yethemba

Gariep

Tsolwana

Umzimvubu

Senqu

Maletswai

Elundini

Ntabankulu

Joe Gqabi

Mbizana

OR Tambo

Mhlontlo

Ingquza

Sakhisizwe

Hill

Inkwanca

Emalahleni

Nyandeni Port

Engcobo

St Johns

King Sabata

Chris Hani

Dalindyebo

Intsika Yethu

Lukhanji

Mbhashe

Dr Beyers Naude

Blue Crane Route

Sarah Baartman

Nxuba

Makana

Nkonkobe

Mnquma

Amahlathi

Amathole

Great Kei

Ngqushwa

Buffalo

City

INDIAN OCEAN

Sundays River

Valley

Ndlambe

Metropolitan/District Municipality

Boundary

Kou-Kamma

Kouga

Nelson Mandela Bay

Local Municipality Boundary

District Municipality

Local Municipality

Chris Hani

Nxuba

65

EASTERN CAPE BUSINESS 2018


INDEX

INDEX

Amatola Water........................................................................................................................................... IFC, IBC

Black Management Forum (BMF)................................................................................................................. 10

Blue Lagoon Hotel & Conference Centre................................................................................................... 21

Border Kei Chamber of Business................................................................................................................... 26

East London Industrial Development Zone (ELIDZ)......................................................................... 3, 11

Maritz Electrical.................................................................................................................................................. 23

Nedbank......................................................................................................................................................... 28-33

Nelson Mandela Bay Business Chamber.................................................................................................... 24

Old Mutual..................................................................................................................................................... 34-37

POWERX................................................................................................................................................................. 16

Premier Pallets................................................................................................................................................ OBC

Ubank..................................................................................................................................................................... 12

EASTERN CAPE BUSINESS 2018

66


Amatola Water projects

Bulk water and sanitation projects underway in the Eastern Cape.

Amatola Water is implementing

some of the

Eastern Cape’s major

capital projects that are

geared to bring relief to droughtridden

communities as well as to

revitalise water and sanitation infrastructure

in the province.

Amatola Water is helping the

OR Tambo District Municipality improve

its water and sanitation services

delivery to almost one million

citizens in Mthatha and surrounds

as part of the R3.4-billion King

Sabata Dalindyebo Presidential

Intervention.

The intervention forms part of

the masterplan to uplift the economic

development of the Greater

Mthatha area which continues to

show good growth. It aims to maximise

the use of the currently under-utilised

yield from the Mthatha

Dam through five strategic development

corridors within a 40km

radius of the town of Mthatha,

namely: Libode, Ngqeleni, Nqadu,

Mqanduli and the airport corridor.

The regional water supply

system will provide the necessary

stability and assurance of supply

that meaningful economic development

requires, while the bulk

sanitation infrastructure will ensure

the environmental integrity

of the Mthatha River and human

health in the higher-density urban

areas of Mthatha.

The Eastern Cape Department

of Education’s Schools Project is

tackling bulk water and sanitation infrastructure at close on 200 schools

throughout the province. Amatola Water is the department’s sole implementing

partner for bulk water and sanitation infrastructure. The

project, which has run over two years, comprises two phases: Phase 1,

which includes the repair of the dilapidated water and sanitation infrastructure

of special schools and hostels; and Phase 2 which is focused

on the operation and maintenance of the infrastructure.

In the current year, Amatola Water began work at 122 public ordinary

schools, of which 19 have hostels. The work completed to date

has been valued at over R21-million. An additional 10 special schools

have also been included in the plan. The work this year also included

addressing water emergencies at nine priority schools.

Full-time process controllers and general workers have been appointed

to oversee operations and maintenance at the various schools to ensure

good water and effluent quality. In the current financial year, over 500 jobs

have been created through the programme, 50 of which went to women.

In Nelson Mandela Bay, the Nooitgedacht Bulk Water Supply Project

will see its water supply from the Orange River surge to more than

double by June 2019 when Amatola Water completes the third phase

of extensions to the Nooitgedacht Water Treatment Works.

The project consists of three parts: a 45-megalitre reservoir, the construction

of a treatment works facility and the construction of related

pipelines. It is a key augmentation project for the bulk water supply

system of Nelson Mandela Bay Municipality. Once completed, it will feed

about 70-million litres of water a day to the municipality.

Nooitgedacht Bulk Water Supply Project.


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