Eastern Cape Business 2018 edition
A unique guide to business and investment in the Eastern Cape. The 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape. The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.
A unique guide to business and investment in the Eastern Cape.
The 2018 edition of Eastern Cape Business is the 11th issue of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide for the Eastern Cape.
The Eastern Cape’s investment and business opportunities are highlighted in this publication. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the role of the renewable energy sector on the region’s future and on the growth of tourism (spurred by the hosting of international events such as the 2018 IRONMAN 70.3 World Championship, the first-ever cricket Test match to be played at night at St George’s Park and Vodacom Origins of Golf events at St Francis Links). All of the major business chambers in the province have made contributions to the journal.
To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.easterncapebusiness.co.za. Updated information on the Eastern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.
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OVERVIEW<br />
Forestry<br />
Thousands of hectares have been identified for new planting.<br />
Forestry is an important part of government plans to expand<br />
agri-processing. More than 3 400ha of new land has been<br />
planted and timber harvests are expected within three years.<br />
Six community projects in the district municipalities of OR<br />
Tambo and Alfred Nzo are employing more than 1 000 people.<br />
Rural Enterprise Development (RED) hubs have been established<br />
in Mqanduli and Ncorha, with funding from the Jobs Fund, the<br />
<strong>Eastern</strong> <strong>Cape</strong> Development Corporation and the <strong>Eastern</strong> <strong>Cape</strong> Rural<br />
Development Agency (ECRDA). The Mqanduli Mill is supplying the<br />
Nicks Spar in King William’s Town.<br />
According to the ECRDA, government plantations have more than<br />
15 000ha of unplanted areas which would be easy to develop: they<br />
do not require high initiation costs because no licence is required.<br />
The <strong>Eastern</strong> <strong>Cape</strong>’s forestry sector comprises 130 000ha of plantations,<br />
46 sawmills, two chipboard operations, 10 pole treatment plants,<br />
a veneer plant and six charcoal plants, which collectively process about<br />
770 500 cubic metres of timber annually.<br />
The region is well-served by wood-processing facilities such as<br />
the R1.3-billion board plant outside Ugie that is owned by PG Bison.<br />
Another of the province’s major forestry stakeholders is Amathola<br />
Forestry, along with their sister company Rance Timber’s Kubusi and<br />
Sandile Sawmill near Stutterheim, producing 45 000 cubic metres of<br />
sawn board annually.<br />
About 75% of the province’s plantations are controlled by the private<br />
sector. Forestry South Africa has set up a <strong>Business</strong> Development<br />
Unit to empower small-scale timber growers.<br />
ONLINE RESOURCES<br />
<strong>Eastern</strong> <strong>Cape</strong> Department of Rural Development and Agrarian<br />
Reform: www.drdar.gov.za<br />
<strong>Eastern</strong> <strong>Cape</strong> Rural Development Agency: www.ecrda.co.za<br />
Forestry SA: www.forestry.co.za<br />
Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za<br />
National Department of Agriculture, Forestry and Fisheries:<br />
www.daff.gov.za<br />
South African Institute for Forestry: www.saif.org.za<br />
SECTOR INSIGHT<br />
Mqanduli Mill is supplying a<br />
large retailer in King William’s<br />
Town.<br />
The ECRDA aims to transform<br />
unproductive communal land<br />
assets through commercial forestry<br />
development. The ECRDA’s<br />
Sinawo project in Mbizana has<br />
started selling timber to Sappi<br />
and intends commercialising all<br />
its operations.<br />
In 2015/16 the project earned<br />
about R7-million from the sale of<br />
timber and the total employee<br />
count rose to 208. Sappi and<br />
PG Bison are supporting these<br />
community initiatives.<br />
Paper and packaging group<br />
Sappi is working with the ECRDA<br />
and with several communities<br />
to establish forestation programmes.<br />
At Mkambathi a total of 668ha<br />
has been planted and Sappi has<br />
agreed to buy 65% of the timber<br />
produced and to give technical<br />
support where it can.<br />
Downstream opportunities<br />
created by new plantations include<br />
a planned treated-pole<br />
plant in Butterworth and a paper<br />
and pulp mill in Mthatha, which<br />
has also been selected as a future<br />
furniture-sector incubator.<br />
EASTERN CAPE BUSINESS <strong>2018</strong><br />
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