Eastern Cape Business 2019 edition

christoffscholtz

The 2019 guide to business and investment in the Eastern Cape Province of South Africa is the 12th issue of this highly successful publication that, since its launch in 2007, 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, including tourism (in which the events sector is growing fast on the back of international attractions such as the IRONMAN African Championship) and energy, where the Eastern Cape is leading the nation in attracting investment in wind power. All of the major business chambers in the province have made contributions to the journal.

EASTERN CAPE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE EASTERN CAPE PROVINCE

2019 EDITION

JOIN US ONLINE

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


VALUE VALUE PROPOSITION

Business Hi-Lite Magazine : This glossy B2B magazine is

To To be be the “voice of business” of business” promoting promoting an environment an now Business in-house, Hi-Lite produced Magazine quarterly, : This with glossy set B2B themes magazine for

environment for growth for and growth sustainability and sustainability through maintaining

through each is now edition, in-house, adding produced relevant quarterly, topics and with information set themes / for

maintaining strong, proactive strong, relations proactive with relations both with internal both and news each of edition, what's happening. adding relevant It also topics features and information/

Chamber

internal external and stakeholders, external stakeholders, including including provincial provincial and local activities news and of what’s developments happening. the It area. also features Chamber

and government, local government, member member companies, companies, other business other activities and developments in the area.

business organisations organisations and organised and organised labour. labour.

Trade & Information : Aside from trade assistance and

information,

Trade & Information

Chamber is

: Aside

also

from

certied

trade

to

assistance

issue

Geographic Geographic areas areas of operation of operation Border-Kei Border-Kei Chamber Chamber of

Business (BKCOB) has offices in East London and

Certicates

and information,

of Origin

the

for

Chamber

exporting

is

companies.

also certified to issue

of Business (BKCOB) has offices in East London and Certificates of Origin for exporting companies.

Queenstown

Queenstown

(Komani)

(Komani)

which

which

serve

serve

the

the

greater

greater

Border-

Border-

Kei region.

Invest Buffalo City : A collaborative initiative where

Kei region.

Invest Buffalo City : A collaborative initiative where

members can nd various economic information on

members can find various economic information

SERVICES AND BENEFITS TO MEMBERS

Buffalo City. It provides a platform to attract

SERVICES AND BENEFITS TO MEMBERS

on Buffalo City. It provides a platform to attract

BKCOB offers the following key services:

international investors, as well as provide exposure for

BKCOB offers the following key services:

international investors, as well as provide exposure for

local companies.

local companies.

Member listing : After joining, members receive the

Member listing : After joining, members receive the

member listing as part of their package.

Committees : The Chamber has a robust and effective

member listing as part of their package.

Committees : The Chamber has a robust and effective

committee structure to facilitate members'

Membership Certicate : New members' induction

committee structure to facilitate members’ participation,

participation, and to enable the chamber to full its role

and Membership networking functions Certificate – the : New chamber members’ holds six induction new and to enable the chamber to fulfil its role as the “voice

as the “voice of business”. Over 120 voluntary business

members' and networking induction functions and – networking the Chamber functions

holds six new of business”. Over 120 voluntary business professionals

professionals participate.

annually, members’ and induction these provide and networking a valuable functions informal annually, but participate.

structured and these opportunity provide a valuable to meet informal a broad but range structured of

businesspeople.

opportunity to meet a broad range of businesspeople. TURNOVER TURNOVER

BKCOB BKCOB represents represents over over 650 650 member member organisations organisations that that

Letters of of support : The : The chamber Chamber provides letters letters of of generate generate an an estimated estimated annual annual turnover turnover of R73-billion, R73-billion, and

support to to members bidding for for government tenders, and that that employ employ some some 58 000 58 people 000 people who earn who an earn estimated an

and and letters letters of of introduction for for members members attempting to to estimated annual annual income income of R19-billion of R19-billion in total. in total.

expand expand their their business footprint.

Be Seen. Be Heard. Be Noticed.

www.bkcob.co.za


KEY BKCOB CONTACTS

Chamber Focus

PROMOTING BUSINESS IN THE REGION

Les Holbrook, Executive Director of the Border-Kei

Chamber of Business (BKCOB), highlights the

reasons investors should look no further than

Eastern Cape.

More More flights ights and and greater greater flexibility exibility have have created created

greater

greater

opportunities

opportunities

for

for

Buffalo

Buffalo

City

City

and

and

the

the

attractiveness of the region for visitors.

attractiveness of the region for visitors.

Undoubtedly the connectedness of a destination

Undoubtedly the connectedness of a destination

determines its potential to grow - and prices

determines

coupled with

its

an

potential

increase

to

in operators

grow – and

and

prices

ights

coupled have changed with an the increase face in of operators Buffalo City. and Whereas flights

have business changed remains the the face core of Buffalo of travellers, City. Whereas more and

business more cruise remains liners the are core bringing of travellers, visitors more from and all

more over the cruise globe. liners are bringing visitors from all

over the globe. Port expansion remains one of

Chamber’s Port expansion main remains focus areas, one with of Chamber’s Transnet still main

the focus main areas, stakeholder with keeping Transnet the still future the of main our

region stakeholder and investors’ keeping interests the future alive. of Present our region lobby and

refers investors’ the interests expansion alive. of the Present Container lobby Terminal, refers to

the the widening expansion and of deepening the Container of the Port Terminal, itself. As the

simple

widening

as it

and

is, those

deepening

three activities

of the Port

will

itself.

in fact

As

simple as it is, those three activities will in fact

make Buffalo City a more desirable location.

make Buffalo City more desirable location.

Widening the net also remain one of our

Widening the net also remain one of our guiding

guiding

principles,

principles,

and

and

engaging

engaging

with

with as many

many

stakeholders as possible as possible toward toward economic economic growth

sits growth at the sits top at of the our top agenda. of our agenda.

As we engage we we focus on on the the collaboration

rather than the exception and recently a a number

of of MOUs have been agreed in in structuring those

engagements. The The Chamber’s Chambers own projects

succeed because we invite participation, and and the

the Call-2-Action Call-2-Action with with related related waste waste recycling recycling has

has introduced introduced a a new new way way of of approaching approaching the the

everlasting challenge of littering and waste

everlasting challenge of littering and waste

collection.

collection.

On the record, the Border-Kei Chamber of

On the record, the Border-Kei Chamber of Business

Business has and will continue to support the

has

development

and will continue

of

to

the

support

N2 Wild

the development

Coast road

of development, the N2 Wild Coast with the road strong development, belief that with the the new

strong highway belief will that usher the new in highway a new corridor will usher of/for in a

new development corridor of/for – a development feature this Region – a feature is sorely this

region lacking. is sorely lacking.

T: +27 43 743 8438

F: +27 43 748 1507

www.bkcob.co.za

Chamber House, The Hub,

Bonza Bay Road, Beacon Bay, East London

EXECUTIVE DIRECTOR

Les Holbrook | info@bkcob.co.za

HEAD OF COMMUNICATIONS / Hi-LITE EDITOR

Candi Ferreira | communications@bkcob.co.za

INVEST BUFFALO CITY

Drayton Brown | ibc@bkcob.co.za

www.investbuffalocity.co.za

LES HOLBROOK

Biography

Les Holbrook has a National

Technical Certicate as well as a

Certicate 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.


CONTENTS

CONTENTS

Eastern Cape Business 2019 Edition

Government

Introduction

Foreword3

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

Special features

Regional overview 4

Established manufacturers are investing in new capacity as

two powerful new sectors – wind power and maritime – have

started delivering on their potential to expand the Eastern Cape

economy.

Economic sectors

Agriculture 20

Wool farmers are aiming for a big increase in production.

Energy 24

The Eastern Cape is the wind power province.

Water 26

The Nooitgedacht Water Project is back on track.

Eastern Cape Provincial

Government 37

An overview of the Eastern Cape

provincial government departments.

Eastern Cape Local

Government 39

An overview of the Eastern Cape

municipalities.

References

Maps

Eastern Cape provincial map 7

Eastern Cape municipal map 40

About the cover

Aloes on the Wild Coast. Stuart

Apsey’s image (iStock by Getty

Images) captures two of the iconic

features of the Eastern Cape. Seven

types of aloes are found across the

region and the famous Hole in the

Wall rock configuration is part of the

rugged Wild Coast, a very popular

tourist destination.

Tourism 30

New hotel for St Francis Links.

Manufacturing 34

Pharmaceutical and automotive manufacturers are investing

in new capacity.

Education and training 36

Eastern Cape universities are leading research in vital sectors.

EASTERN CAPE BUSINESS 2019

2


CREDITS

CREDITS

Publisher: Chris Whales

Publishing director: Robert Arendse

Eastern Cape Business

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

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Tyra Martin

Production: Lizel Olivier

Ad sales: Sydwell Adonis, Gavin

van der Merwe, Sam Oliver, Gabriel

Venter, Jeremy Petersen, Shiko

Diala, Vanessa Wallace, Reginald

Motsoahae and Sandile Koni.

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

The 2019 edition of Eastern Cape Business is the 12th issue of

this highly successful publication that, since its launch in 2007,

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,

including tourism (in which the events sector is growing fast on the back

of international attractions such as the IRONMAN African Championship)

and energy, where the Eastern Cape is leading the nation in attracting

investment in wind power. 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

DISTRIBUTION

Eastern Cape Business is distributed internationally on outgoing

and incoming trade missions, 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.

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

COPYRIGHT | Eastern Cape Business is an independent publication published

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

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

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

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

supplied by Eastern Cape Development Corporation, Grant Leversha/St

Francis Links, iStock, National Woolgrowers Association, Nelson Mandela

University.

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.

3

EASTERN CAPE BUSINESS 2019


SPECIAL FEATURE

A REGIONAL OVERVIEW OF THE

EASTERN CAPE PROVINCE

Established manufacturers are investing in new capacity as two powerful new sectors

– wind power and maritime – have started delivering on their potential to expand the

Eastern Cape economy.

By John Young

The Day of the Seafarer has never previously

been honoured in South Africa but on

25 June 2018 the International Maritime

Organisation saw to it that three coastal

cities celebrated the occasion. The highlight in

Nelson Mandela Bay was the opening of the

new national headquarters of the South African

International Maritime Institute.

This follows shortly after the launch of the

Oceans Campus of Nelson Mandela University

and dovetails with the ambitious plans of national

government to use the maritime economy as a

way of creating growth and jobs.

These institutions will support an existing

provincial maritime economy which is underpinned

by three major ports: Port Elizabeth, East London

and Ngqura. Port Elizabeth’s major cargoes are

manganese and vehicles while both East London

and Ngqura support Special Economic Zones

(SEZs). There are plans to move manganese exports

to Ngqura which will free up space for a waterfront

development in the Port Elizabeth harbour.

The Port of East London has recently been

upgraded and it has been breaking records in

EASTERN CAPE BUSINESS 2019

4


SPECIAL FEATURE

numbers of Mercedes-Benz vehicles loaded for

export. The country’s largest grain elevator in a

port will start to run more efficiently as a result of

a contract signed in 2018 with Afgri. The private

contractor will work with Transnet Port Terminals

to improve efficiency at the terminal.

National government has named the Coega

SEZ as the potential 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.

The Eastern Cape Development Corporation

(ECDC) is the lead agency in driving economic

growth in the province. The Investment Promotion

Unit of the ECDC actively markets and facilitates

investments. Eight economic sectors have been

targeted as priorities, including renewable energy,

the oceans economy and tourism.

Work is being done on rail links to the Eastern

Cape to enable more manganese to be exported

through the province. These logistics upgrades

are an indicator that the political will exists to

improve infrastructure.

In his 2018 State of the Province Address,

Eastern Cape Premier Phumulo Masualle said that

the province had become “one gigantic roads

construction site” with active projects underway

to the value of R7-billion and another R5-billion

to be completed before 2022.

The Eastern Cape is fast becoming South

Africa’s wind-farm hotspot. Just two areas, greater

Jeffreys Bay and Cookhouse/Bedford, will soon be

contributing 1 185MW to the national grid.

A joint venture in the Eastern Cape between

Osho Ventures and Heidelberg Cement will create

South Africa’s seventh cement manufacturer.

Established sectors

Historically, wool and ostrich feathers were the region’s

first exports and these items are still in the

export basket. The Eastern Cape was and is a global

leader in mohair, the luxury fibre taken from Angora

goats. The fertile Langkloof Valley in the west has

enormous deciduous fruit orchards and Alexandria

and Grahamstown produce pineapples, chicory and

dairy products. The Eastern 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 Special Economic

Zone (SEZ) in East London.

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.

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.

The Eastern Cape MEC for Economic

Development, Environmental Affairs and Tourism

Oscar Mabuyane reported in a booklet prepared

for the 2019 Eastern Cape Investment Conference

that several large investments have been made in

the province. He cited:

• SAB, R438-million plant upgrade

• Mercedes Benz SA, R10-billion

• Aspen Pharmacare, R3.4-billion

• Nestle, R663-million

• Yekani Technologies, R1-billion at Coega SEZ

• MultiChoice, R900-million at ELSEZ

• ​Volkswagen SA, R6.1-billion

• ​BAIC, R11-billion at Coega SEZ.

5

EASTERN CAPE BUSINESS 2019


SPECIAL FEATURE

Geography

The Eastern Cape extends over 169 580 square

kilometres, representing 13.9% of South Africa’s land

mass. The dry western interior is one of the country’s

premier sheep-rearing destinations.

The mountainous regions of the north and east

of the province support timber plantations while

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

and is good for dairy farming. The province has

spectacular beaches stretching from the surfer’s

paradise at 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

Airlink offers four daily flights from Souith Africa’s

busiest city, Johannesburg, to Mthatha. Airports

Company South Africa has been appointed to

manage Mthatha Airport.

Muncipalities

The Eastern Cape has six district municipalities and

two metropolitan municipalities.

Buffalo City Metropolitan Municipality

Towns: East London, King Williams Town

The Port of East London is South Africa’s only river

port. The airport, rail links and the East London

Special Economic Zone contribute to making this

an important regional centre. Buffalo City hosts a

variety of manufacturers from vehicles to batteries

and cotton textiles. There are many opportunities

for agri-processing because of the fertile hinterland

and as part of the Sunshine Coast, tourism is an

important contributor to the local economy.

Nelson Mandela Bay Metropolitan Municipality

Towns: Port Elizabeth, Uitenhage, Despatch

With two ports, a large airport and a concentration

of manufacturing concerns, the Nelson Mandela Bay

metropole is one of the province’s key economic

drivers. Volkswagen, General Motors and Ford

are all located within the municipality, as are

several automotive supplier companies. Aspen,

a pharmaceutical company, and South African

Breweries are examples of other large concerns.

Nelson Mandela Bay has population of 1.1-million

and many educational institutions. Superb beaches

and plentiful outdoor options make the area a

popular tourist stop. The Addo Elephant National

Park is less than an hour’s drive from the Port

Elizabeth city centre.

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.

Amathole District Municipality

Towns: Cathcart, Stutterheim, Morgans Bay,

Willowvale, Butterworth, 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. Alice hosts the main campus

of the University of Fort Hare.

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.

Joe Gqabi District Municipality

Towns: Aliwal North, Burgersdorp, Lady Grey,

Rhodes, Barkly East, Ugie

EASTERN CAPE BUSINESS 2019

6


SPECIAL FEATURE

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.

OR Tambo District Municipality

Towns: Mthatha, Coffee Bay, Port St Johns,

Qumbu, Bizana, Flagstaff

OR Tambo District Municipality encompasses

some of the province’s least-developed areas and

contains one of South Africa’s most important

ecological areas, the Pondoland Centre of Plant

Endemism. Mining is already pursued in some areas

but plans for titanium mining on seaside dunes are

being contested. A Wild Coast Spatial Development

Initiative exists to plot further development.

Forestry is a big employer.

Sarah Baartman District Municipality

Towns: Graaff-Reinet, Humansdorp, Jeffreys

Bay, Makana (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. Makana hosts

the National Arts Festival, Rhodes University and

several fine schools.

EASTERN CAPE PROVINCE

Britstown

N12

Northern Cape

Victoria West

Three Sisters

Western Cape

Beaufort West

De Aar

Hanover

N1

Graaff-Reinet

Colesburg

N10

Middelburg

Oviston

Steynsburg

R56

Cradock

Burgersdorp

Hofmeyr

Free State

Rouxville

Bethulie

Molteno

Aliwal North

R58

R61

Tarkastad

Jamestown

N6

Indwe

Cathcart

R61

R63 Somerset

Aberdeen

Stutterheim

Butterworth

Pearston East Adelaide Fort

Komga

N9

Beaufort

Cookhouse

Bhisho N2

Klipplaat

Rietbron

N10

King William's

Town EAST LONDON

Willowmore

Kirkwood

Grahamstown

Steytlerville

Paterson

N2

Hamburg

Uniondale

R72

Joubertina

N9

Uitenhage

Port Alfred

Motorway

Knysna N2

Humansdorp

Main Road

Kareedouw

PORT ELIZABETH

Railway

Plettenberg Bay

Jeffreys Bay

Sada

Dordrecht

Zastron

Lady Grey

Queenstown

LESOTHO

Barkly

East

Elliot

Tsomo

Matatiele

Ixopo

Mount

Fletcher

R56

Mount Kokstad

Ayliff

Port Edward

Maclear Mount Frere R61

N2

Mthatha

KwaZulu-

Natal

Coffee Bay

Lusikisiki

Port St Johns

N

INDIAN OCEAN

7

EASTERN CAPE BUSINESS 2019


INTERVIEW

Attracting new

investment

The ELIDZ has attracted a number of new investors.

Simphiwe Nicholas Kondlo

BIOGRAPHY

Simphiwe Nicholas Kondlo, the

Chief Executive Officer of the

ELIDZ, holds a Master’s Degree

in Engineering Management

and has more than 24 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.

Please name some of the significant recent investments.

The East London IDZ recently announced two new investors worth over

R500-million, Meek Mines South Africa and Nulatex South Africa. These

two investments offer a response to the government’s clarion call to promote

regional integration, promote beneficiation and create meaningful

jobs. Meek Mines SA is a diamond cutting and polishing plant. Nulatex

SA will produce male and female condoms for domestic and African

markets. Also in 2018, we announced Yekani Manufacturing as the first

black industrialist factory to locate within the ELIDZ’s Zone 1B precinct.

The company is the beneficiary of the dti’s Special Economic Zone (SEZ)

Fund and Black Industrialist Scheme (BIS), the government’s financial

support programmes aimed at accelerating growth of manufacturing.

How important is the location of Mercedes-Benz SA in

building ELIDZ as an automotive hub?

Mercedes-Benz SA is a key strategic partner not only for the growth of the

IDZ but for regional economy. Through our relations with the auto giant,

we have been able to attract more automotive-oriented investments.

As such, the East London IDZ has various incentives, which can be

accessed by qualifying industries. These include a Specialised Customs

Controlled Area benefit (some VAT exemptions), no import duties on

raw materials for manufacture, goods for storage and capital goods

used in the CCA. There are also specialised local incentives and access

to national manufacturing and other generic government incentives.

Tell us about the ELIDZ internship programme.

The ELIDZ internship programme is two-pronged: the first year serves

as an introductory phase where the interns receive on-the-job training.

The second phase, Junior Professional, is centred on allocation of more

responsibilities and quarterly assessments to monitor performance.

What conference facilities do you have?

The state-of-the art facility has four conference rooms which are interconnected

and can open into one room accommodating up to 250 delegates.

The four meeting rooms are room One, which can accommodate

up to 30 people seated cinema-style, room Two (90 people), room Three

(60 people banqueting-style) and room Four, which accommodates 16

delegates. The number of delegates that each room can take is subject

to the seating arrangement.

EASTERN CAPE BUSINESS 2019

8


PROFILE

Maritz Electrical

Delivering projects on time and in budget, beyond client

expectations, every time.

From commercial electrical applications to international standard

large area and sports stadium lighting, Maritz Electrical delivers

end-to-end electrical solutions tailored to each client’s specific

needs. Service excellence and exceptional quality are key differentiators

and qualities that clients have come to expect from Maritz Electrical.

Established by Kurt Maritz in January 2000, the company is BBBEE

compliant (Level 1 contributor) and ISO 9001 certified, employing full-time,

licensed installation and master electricians. All artisans have completed

Operating Regulations for High Voltage Systems (ORHVS) training.

Maritz Electrical places great emphasis on client relationships, both

private or commercial, and prides itself on the ability to respond to any

contracting requirements in an efficient and cost-effective way.

A world-first at the tip of Africa from Maritz Electrical

In 2017, St George’s Park Cricket stadium became the world’s first International

Cricket Council-compliant, LED-lit stadium and the first to be fitted with

theatrics. Maritz Electrical won the contract to supply and install a Musco

Lighting system at the venue after visiting the USA with officials from Eastern

Province Cricket and the national cricket board. Over four days in December

2017, the famous ground (pictured top) celebrated the landmark of being the

first South African cricket venue to host a day-night Test match, South Africa’s

Proteas versus Zimbabwe. The R27-million contract was completed on time

and in budget by a team from Maritz Electrical, led by Warren Williams.

Other projects

Maritz Electrical has been contracted by Stellenbosch and Overstrand

Municipalities in the Western Cape to provide the electrification for large

housing projects, and Buffalo City Metropolitan Municipality in the Eastern

Cape to install much-needed lights at an informal settlement. Other

flagship projects include the revamp of Coetzenburg Athletics Stadium

CONTACT INFO

Address: 11 Noll Avenue, Athlone, Cape Town, 7764

Tel: +27 21 703 0867

Fax: +27 64 552 436

Email: tenders@maritzelectrical.co.za

Website: www.maritzelectrical.co.za

EASTERN CAPE BUSINESS 2019

10

A world-first and a South Africanfirst

at two of South Africa’s

favourite sporting stadiums.

(Stellenbosch University, pictured) track

lighting, with an LED lighting system

from Musco, another first in South

Africa, the re-lighting of Cape Town’s

Grand Parade and security lighting for

various Waste Water Treatment Works

across the City of Cape Town.

Services

Maritz Electrical is a premier supplier

and installer of sports stadium lighting

solutions and provides commercial

electrical services, which include

project management, design, supply

and installation of electrical systems

such as:

• Electrical and reticulation

services

• Testing and commissioning

• Water analysis, monitoring,

management and purification

systems

• Lighting and power

• External lighting

• Mechanical services integration

• Emergency switchgear

• HV and LV switchgear

• Pre-planned maintenance.


Lighting the Eastern Cape

FOCUS

Informal settlements in Buffalo City up in lights and

improved efficiencies at East London Airport, thanks to

Maritz Electrical.

Project Manager

Diketso Kumalo

Following the successful installation

of the world’s first International

Cricket Council-compliant, LED-lit

stadium at St George’s Park Cricket

Ground in Port Elizabeth and the first

athletics stadium in South Africa to have

an LED lighting solution, Coetzenburg

Stadium at the University of Stellenbosch,

Maritz Electrical has expanded its range of

projects in the Eastern Cape.

Work at the East London Airport, and at

the Buffalo City Metropolitan Municipality,

show Maritz Electrical’s versatility, especially in large-area LED lighting.

Project Manager Diketso Kumalo reports that the six-month contract

to install LED energy-saving lights at East London Airport was completed

on time and in budget. Says Kumalo, “One of our goals for all projects

is to provide total client satisfaction, on top of saving on energy costs.”

LED lighting significantly reduces power consumption. Maritz

Electrical’s pre- and post-installation testing confirmed that East London

Airport will save on electricity costs.

The Maritz contract with the Buffalo City Metropolitan Municipality

includes the provision of mast lighting to informal settlements across

the municipality. “We are providing them with 20m-high masts with

LED luminaires,” says Kumalo. “LED consumes far less power compared

to high-pressure sodium or metal halide, although with LED, lux levels

are better.” So, costs are reduced, and the power of illumination will be

better for residents.

Kumalo says that a Maritz Electrical Eastern Cape office could be

a possibility. “Our presence is growing,” he notes. “Depending on

the projects we receive from

the province, an Eastern Cape

office would be an advantage.”

Kumalo points out that Maritz

Electrical’s expertise extends

beyond lighting. “We do a variety

of electrical works and we offer

project management, consulting,

compliance services, hazardous

area classification and MV and LV

maintenance.”

11

EASTERN CAPE BUSINESS 2019


PROFILE

The Nelson Mandela Bay

Business Chamber

A catalyst for economic growth in the region.

The Nelson Mandela Bay Business Chamber is a not-for-profit

organisation 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, through its strategic Triple Helix model

of collaboration between industry, academia and government, which

serves 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 organisation

also builds 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 task teams are:

• Water Task Team

• Roads and Storm Water Task Team

• SME Task Team

• Electricity and Energy Task Team

• Transport and Logistics Task Team

• Metro Collaboration Task Team

• Trade and Investment Task Team

An eighth task team, called Industry

4.0, begins its work in 2019 to prepare

local businesses for the digital shift.

Enterprise Development

and Exporter

Development

The Nelson Mandela Bay Business

Chamber Enterprise Development

Programme was launched in 2014, to

develop the skills that enhance and

grow small businesses. In 2018 the

Business Chamber successfully hosted

the fifth phase of the Enterprise

Development Programme, with

SMEs set to graduate in March 2019.

Over 120 entrepreneurs have benefited

from this programme.

Meanwhile, the pilot phase of

the Business Chamber’s Exporter

Development Programme concluded

at the end of 2018, with 10 companies

finishing this programme in its

first year. The programme is aimed at

empowering SMEs to position themselves

as emerging exporters.

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

EASTERN CAPE BUSINESS 2019

12


usiness 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 Banquet – are highlights

on the Bay’s business and social calendar. The Events Department hosted

a total of 61 events in 2018.

PROFILE

Other Services

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 the member magazine

Infocom (distributed three times a year, as of 2019) and the annual Business

Guide. Both of these publications are ABC-certified, glossy publications.

The Business Chamber regularly updates its website, and engages

with members on popular social media platforms including Facebook,

Twitter, LinkedIn and Instagram.

Help desk

In line with its vision of providing an enabling environment for business,

the Business Chamber set up an Ease of Doing Business help desk in

2018. The help desk assists members through reducing red tape and

engaging with the Nelson Mandela Bay Metro regarding these members’

obstacles in conducting business. The Business Chamber also engaged

with the city’s leadership in 2018 towards the goal of establishing a One

Stop Shop for existing and potential investors and will continue these

engagements in 2019.

Research unit

The Business Chamber established an in-house cluster research unit in

2018. Its aim is ultimately to identify several catalytic projects that can

be marketed to investors and can contribute to the development of key

sectors. The new unit will provide a library of business intelligence and

insights for the development of essential clusters.

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,

CONTACT INFO

Address: 200 Norvic Drive, Greenacres 6045

Tel: +27 41 373 1122

Fax: +27 41 373 1142

Email: info@nmbbusinesschamber.co.za

Website: www.nmbbusinesschamber.co.za

Nomkhita Mona, Chief

Executive Officer.

the Nelson Mandela Bay Business

Chamber signs Certificates of Origin

for member and non-member

companies requiring these services

in Nelson Mandela Bay. The Business

Chamber also offers exporters the

opportunity to certify electronically

through the ECOO system.

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 2018 the Business Chamber

adopted Elsen Academy and the

Kleinskool Initiative and collected

several items from our companies,

including office equipment,

computers, stationery and school

clothes.

13 EASTERN CAPE BUSINESS 2019


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).


OVERVIEW

Agriculture

Wool farmers are aiming for a big increase in production.

SECTOR INSIGHT

Black farmers will export via

Berlin Beef.

Wool farmers and traders can look forward to a more stable

pricing environment with the creation of a wool futures

contract on the JSE. With weekly auctions being held

in the Eastern Cape, prices can be accurately pegged

which enables traders to buy the price, rather than the commodity

itself. This gives producers greater security.

The settlement price is determined by the Merino Indicator

which is run by Cape Wool SA, which used to be known as the South

African Wool Board and is based in Port Elizabeth.

The National Woolgrowers Association of SA (NWGA), the country’s

main producer organisation, is also based in Port Elizabeth. In 2016/17,

wool farmers produced about 52-million kilograms of wool, but the

industry intends to increase this by another 25-million kilograms.

The South African Mohair Growers Association is based in the

heart of Angora goat country at Jansenville while the industry

association, Mohair South Africa, is in Port Elizabeth. South Africa

produces about half of the world’s mohair.

Yields produced by black maize farmers in the Matatiele district

have improved dramatically between 2013 and 2017. According to

Wandile Shihlobo of the Agricultural Business Chamber, the area

farmed increased in that time from 1 200ha to 4 000ha but the crop

return improved from 6 000 tons to 28 000 tons.

Rural Enterprise Development (RED) hubs are a key plank in the

strategy of the DRDAR to promote food security and employment

creation. There are about 70 000 people employed on commercial

ONLINE RESOURCES

Cape Wools SA: www.capewools.co.za

Milk Producers Organisation: www.mpo.co.za

Mohair South Africa: www.mohair.co.za

farms across the Eastern Cape,

with a further 436 000 people

dependent on smaller farms,

mostly in the east.The Eastern

Cape is South Africa’s secondlargest

producer of citrus fruit.

Oranges make up the vast majority

of citrus products. 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 province’s pineapple crop

is grown in the same part of the

Sunshine Coast that produces

chicory. The macadamia nut sector

is growing. The Eastern Cape Rural

Development Agency (ECRDA)

has partnered with a community

to plant the popular nut at Ncera

in the Tyume Valley north of Alice.

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.

EASTERN CAPE BUSINESS 2019

20


Africa Biomass Company

Your caring family trading as world leaders in the wood

chipping industry.

PROFILE

Our mission

To provide a worldwide service and infrastructure that

is sustainable and above par, taking into account the

unique requirements of each client, without deviating

from our policy of innovative service and high ethical

standards.

Our values

Company

Slogan

About us

Since 2004, Africa Biomass Company has been at the

forefront of the development of biomass processing

such as wood chips, biofuels and more in Southern

Africa.

Under the mentorship of Johan du Preez, the

co-owner of Môreson Grondverskuivers, known for

service excellence in the agricultural industry since

1924, we established ourselves as market leaders of

recycling agricultural wood waste over the past 10

years.

Africa Biomass Company offers a viable, costeffective

solution for our customers to recycle this

unwanted woody biomass into usable forms.

Towards the end of 2008, the need and demand

for the chipping of orchards increased to such an

extent that the strategy of hand-fed chippers was

switched to that of horizontal grinders, fed by a

mechanical loader.

In collaboration with Môreson Grondverskuivers,

we now offer a full range of services.

Our vision

Africa Biomass Company is your caring family,

founded in faith, trading as world leaders in the

recycling industry.

• Human dignity

• Integrity

• Quality

• Pro-trademark resolution

• Innovation

• Transparency

• Individualism

CONTACT INFO

Physical address: Joubert Street, Worcester

6850

Postal address: PO Box 1322, Worcester 6849

Western Cape, South Africa

Tel: +27 23 342 1212

Fax: 086 515 5777

Website: www.abc.co.za

Willem van der Merwe, General Manager:

072 244 7737

Calie Rabie, Western Cape Production:

072 602 4543

Fanie Fourie, Eastern Cape Production:

073 402 0655

Riaan Carstens, Bandit Agency:

079 874 8624

Quintis Wiid, Parts and Workshop:

066 475 7039

21

EASTERN CAPE BUSINESS 2019


FOCUS

Africa Biomass Company services and

products

Contracting

• Orchard

• Windbreak recycling

• River rehabilitation

• Recycling of waste wood

• Tree (orchard) replanting (Eastern Cape)

• Mulch spreading

• Land clearing and land preparation (Môreson)

• Loggers to handle the timber rapidly and

effectively

• Well-trained teams of chainsaw operators.

Mulch and biofuel sales

Woodchip according to specification, collected in

mass trailers or in bags and transported to end user,

where it can be used as woochip mulch or biofuel.

Wood chips best practice

Woodchip mulch and biomass sales

• Bandit agency (Southern Africa)

• Dezzi equipment (Western Cape)

• Workshop and field services

• Part sales

• Manufacturing

• Training facilities

Orchard and windbreak recycling

With the use of excavators with specialised

attachments and three-wheel loggers, old orchards

can be removed from root to top and fed into a

horizontal grinder.

The horizontal grinder processes the waste wood

according to specifications discussed and agreed

upon with the landowner or project manager.

Processing of waste wood into a viable product,

that if applied correctly, could have a 30% increase in

water conservation as well as many other advantages.

Land clearing services

Africa Biomass Company is an expert at land clearing.

We have an extensive range of highly specialised

wood recycling machinery that will do the job quickly

and efficiently.

• Tree shears which cut and stack trees of up to

550mm in diameter

It is excellent practice to apply compost and mulch

in existing, as well as newly established orchards.

The best results are obtained by spreading

compost in the orchards or vineyards before covering

it with mulch. Wood chips can also be used as a base

to produce compost.

You can buy or rent these unique, patented,

designed mulch spreaders from ABC.

Massive water savings

In 2017 Africa Biomass Company was involved in many

projects such as the removal of invasive eucalyptus

trees in the Breede River and Berg River systems.

The removal and recycling of these alien trees,

old or unwanted orchards, vineyards or windbreaks

can be used as mulch which are spread in new and

old orchards and vineyards. This has led to a massive

water saving equal to the water usage of 50 000

households for one year.

Workshop and field services

With an intimate understanding of the operational

challenges of wood recycling in South Africa, we

established state-of-the-art facilities to service, repair

and rebuild wood chipping equipment of any make

and size.

EASTERN CAPE BUSINESS 2019

22


FOCUS

This facility is manned by a remarkable team

of experienced and suitably qualified engineers,

technicians and artisans.

An equally remarkable team of field service

technicians delivers repairs, maintenance and spares

to your site to optimise uptime and efficiency.

Parts

We have been widely commended as the company

in South Africa stocking the largest range of industryrelated

spare parts.

Optimal production and uptime require quality

components when needed. Understanding the

industry through experience sets us apart from other

suppliers.

Delivering quality components on time is essential

for running a successful operation. Our more than

2 500 line items is made up of quality components

sourced worldwide to meet requirements of our

customers and our own fleet.

Manufacturing

Our legacy of innovation has been built on more than

80 000 hours of operational experience. This enabled

us to develop and adapt machines for waste wood

recycling in South Africa which truly adds value to

the customer’s operation.

A wide range of wood chipping, grinding and

spreading equipment is manufactured locally to

specification, as required for South African conditions.

Bandit Industries, Inc

Not only has Africa Biomass Company built up a

substantial fleet of Bandit wood chippers for their own

use as part of our wood recycling services we provide,

but also offers a whole range of Bandit wood chippers

Interesting facts about ABC

• 50 000 households’ worth of water saved in 2017

• 2017 Overall winner Entrepreneur of the Year

Award

• Since 2004, servicing the biomass industry

• Approximately 2 500 line-items in total available

stock

• Only SETA-certified wood chipper training

facility.

• 20 teams all over South Africa

• Sole Bandit dealer in Africa.

to clients who want to invest in the Bandit range.

We are privileged to serve our customers as the

authorised dealer for Bandit Industries in Southern

Africa.

Bandit chippers are designed with quality,

production and longevity in mind. Hand-fed

chippers are mounted on custom-built, SABSapproved

trailers. Owning a Bandit wood chipper

will always put you in the front seat of reliable wood

chipping operations.

In many cases, the Bandit wood chipper sets the

benchmark for other brands in the wood chipping

industry. We are ready to supply the right Bandit

wood chipping solution with advice and aftercare

to your doorstep. All existing and new customers

are welcome to contact us to become the owner of

Bandit equipment.

Become an owner of a Bandit chipper

All existing and new customers are welcome to

contact us if they want to become the owner of

the top-class range of Bandit equipment. Bandit

Industries have delivered successful recycling

solutions to basically every corner of the planet.

A commitment to support

Africa Biomass Company is fully equipped and

stocked to service and repair any Bandit machine

anywhere in South Africa. We own a fully-equipped

parts warehouse (650m²), manufacturing department

as well as field services to ensure that parts are always

readily available and our own, as well as our clients’

Bandit wood chippers are not out of commission

longer than they have to be.

23 EASTERN CAPE BUSINESS 2019


OVERVIEW

Energy

The Eastern Cape is the wind power province.

With the signing off on four new wind projects in April

2018, the Eastern Cape reinforced its position as a prime

destination for wind power.

More than half the wind farm projects so far

approved in the Renewable Energy Independent Power Producer

Procurement Programme (REIPPPP) have been allocated to

the Eastern Cape. The Kouga area west of Jeffreys Bay and the

Cookhouse/Bedford area about 95km north-west of Makhanda

(Grahamstown) represent two wind power hubs, with a collective

capacity of 1 185MW.

South Africa’s National Development Plan (NDP) requires 20 000MW

of renewable energy by 2030 and wind power technology, together

with solar photovoltaic, are the two primary methods of reaching

that target.

The April signing ceremony by new Energy Minister Jeff Rabebe

restarted the REIPPPP when he signed off on projects totalling

R56-billion that will add 2 300MW to the national grid. There had

been a long delay in the process as national utility Eskom argued

against accepting more power purchase agreements while they had

a surplus. Most of South Africa’s electricity comes from coal and

Eskom is building two huge coal-fired power stations.

One of the unfortunate side effects of Eskom’s refusal to agree

to buy renewable power for two years was the closing down of a

wind tower manufacturer in the Eastern Cape. DCD Wind Towers

SECTOR INSIGHT

The IDC plans to revive a wind

tower manufacturing plant.

was a joint venture between the

DCD Group and the Industrial

Development Corporation (IDC).

A factory was built in the Coega

Industrial Development Zone

(IDZ) in 2013 with the intention

of localising the manufacture

of renewable energy sector

components. The factory closed

in 2016 as uncertainty affected

the market.

The Coega IDZ was working on

positioning itself as a renewable

energy hub. This process has

been restarted and the IDC is

looking for new partners to

revive the wind tower plant. The

Department of Trade and Industry

EASTERN CAPE BUSINESS 2019

24


OVERVIEW

(dti) offers a number of green technology incentives.

At the end of the annual Windaba conference in Cape Town in

2018, the South African Wind Energy Association (SAWEA) issued

a Commitment Statement which noted that the REIPPPP has a

“built-in demand for local procurement”, not only offering business

opportunities to local companies, but also incentivising the industry

to identify and support emerging entrepreneurs.

The rollout of renewable energy has met some resistance in

South Africa from constituencies as diverse as coal-truck drivers

and advocates of nuclear power. In response, renewable energy

advocates cite not just investment figures, but they note how much

good work has been done in communities. According to figures

released by the National 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.

Figures released by SAWEA showed shareholding for local

communities reached an estimated net income of R29.2-billion over

the lifespan of the projects. Some 14 000 new jobs are expected

to be created, mostly in rural areas, and more than R30-billion has

already been spent on Black Economic Empowerment (BEE) in the

construction phase.

Part of the SAWEA Commitment Statement reads, “Our aim over

time is to transform and indigenise leadership at all levels in the

South African Renewable Energy sector.”

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 Cookhouse project (African Clean Energy

Developments) and two run by Cennergi at Tsitsikamma (94MW)

and Bedford (134MW). Cennergi is a joint venture between South

ONLINE RESOURCES

IPP projects: www.ipp-projects.co.za

National Energy Regulator of South Africa: www.nersa.org.za

South African Photovoltaic Industry Association:

www.sapvia.co.za

South African Renewable Energy Council: www.sarec.org.za

South African Wind Energy Association: www.sawea.org.za

Sustainable Energy Society of Southern Africa:

www.sessa.org.za

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%.

POWERX has recently signed

up with AKM Foods to supply

power to all the KFC outlets in

Nelson Mandela Bay. POWERX

trades in renewable energy

through licences granted

to it by the national energy

regulatory authority, NERSA. By

aggregating power purchases,

the company is able to mitigate

risk in a way that an individual

purchaser may not be able to.

POWERX now supplies over 40

national and local customers in

Nelson Mandela Bay and its aim

is to expand the customer base.

The support of two of South

Africa’s biggest institutional

investors, the Industrial

Development Corporation

(IDC) and the Public Investment

Corporation (PIC), has been

crucial in getting the renewable

energy sector off the ground.

They have also played a role in

helping communities fund their

participation in community

trusts. According to Business

Day, the PIC has so far invested

in 16 unlisted projects and its

total investment stands at R11-

billion. The IDC’s 24 projects

are valued at R14-billion and

will contribute 1 100MW to the

national power grid.

25 EASTERN CAPE BUSINESS 2019


OVERVIEW

Water

The Nooitgedacht Water Project is back on track.

The National Department of Water and Sanitation will provide

the finances to complete the vital Nooitgedacht Low Level

Scheme Water Project.

Earlier announcements that funding for the project was to

be reduced led to strikes but a new allocation was made in the 2018/19

budget. This will help to address the water supply problem in the Nelson

Mandela Bay metropole.

In August 2018, water supplies were turned off for periods in the

towns of Patensie and Hankey, which get their supply from the Kouga

Dam. Levels in different parts of the province varied considerably at

that time, ranging from just under 7% in the Kouga Dam to as high as

70% for the Klipplaat Water Supply System, which serves towns such

as Queenstown in the central part of the province.

Several plans are under consideration to alleviate the water shortages

facing the Eastern Cape’s towns and rural areas. Most municipalities

introduced restrictions on usage with the Nelson Mandela Bay

Municipality limiting residents to 50 litres per day. The municipality has

also been looking at ways of finding new water, including desalination

and tapping new underground water sources. A desalination plant at

Swartkops and new boreholes around the Uitenhage Springs are among

projects designed to alleviate shortages.

One option being considered is for the Nelson Mandela Bay

Municipality to partner with South African Breweries, which needs a

lot of water to make 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 gas-related

industries at the Coega Special Economic Zone.

ONLINE RESOURCES

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

SECTOR INSIGHT

Plans are being implemented

to avoid “Day Zero”.

The Nelson Mandela Bay metropole

currently gets its water from

10 dams, six of which are owned

by the municipality. 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.

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 and the

provision of hydropower.

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.

EASTERN CAPE BUSINESS 2019

26


Amatola t:HhAAU:(d wde,,1,, k / .. .L

wa1er,11manz1 - v7· v

'-'1 v

LEADING SUSTAINABLE BULK

WATER SERVICES IN THE

As an essential services utility, Amatala Water is committed ta contributing to the soclo·economic development of the

Eastern Cape Province through the provision of sustainable bulk potable water and sanitation services.

Ta ensure universal access ta basic water supply, Amatala Water is upgracing the design standards al its water supply

schemes and related bulk intraslructure to 750 lltres per household per day, in line with the Intent al the Nattonal Development

Plan, al aimed at improving the qualHy al lffe of aver 76 000 households in the region.

Amalola Hause

6 Lancaster Road, Vincent, East Landon

Tel: (043) 707 3700

aw@amatolawater.co.za

www.amatolawater.co.za


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


OVERVIEW

Tourism

New hotel for St Francis Links.

A

new luxury hotel is to be built in St Francis Bay. The 60-room

St Francis Links Hotel by Mantis will overlook the dam on

the golf course’s final hole and provide views of the Indian

Ocean and Kouga Mountains.

The existing clubhouse of the St Francis Links Estate will provide facilities

such as reception, restaurants and conferencing for the hotel, which has been

designed to minimise the visual impact in an environment where fynbos is

a feature. St Francis Links is a regular award winner as a wedding venue and

for its Jack Nicklaus-designed golf course. The hotel will be constructed next

to the clubhouse, which is pictured above.

The Mantis Group is involved in another project that involves golf at

the Fish River Sun. The land on which the resort stands had been subject

to a land claim for a long time. In December 2017 the National Department

of Rural Development and Land Reform (DRDLR) bought the resort and

closed it down but the golf course reopened again in March 2018, under

the management of Mantis. Self-catering accommodation opened at the

resort about a month later.

Further up the coast, a settlement has been reached between the

DRDLR (on behalf of claimant communities) and Sun International on

the future of the Wild Coast Sun. The uMgungundlovu claimants, who

were evicted from their land by homeland leaders who rented out

SECTOR INSIGHT

30 000 bottle-necked dolphins

regularly visit Algoa Bay.

their land at laughably low prices

in the early 1980s, get all of the 700

hectares of land. The resort will

pay rental for the portion of land

which it uses, and the community

becomes a 28.4% part-owner of

the resort.

Algoa Bay attracts huge numbers

of bottle-nosed dolphins and visitors

don’t have to take boats to view them.

Pods of dolphins can be spotted from

the Shark Rock Pier adjacent to Hobie

Beach, made famous as the launching

spot of the swimming leg of various

triathlons such as the IRONMAN

EASTERN CAPE BUSINESS 2019

30


OVERVIEW

competition. Nelson Mandela Bay’s tourism body is calling the city the

Bottlenose Capital of the World because there is apparently nowhere else

where so many of them gather in one place.

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 malaria-free 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. East London has 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 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. 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.

Hotels and casinos

South Africa’s large branded hotel groups have a strong presence

in the Eastern Cape but there are also regionally focussed groups

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.

The Billion Group has opened a new casino in Mthatha. The Mayfair

Casino, which also has conference facilities, forms part of the complex

that includes the BT Ngebs City Shopping Centre and the Mayfair Hotel.

A Port Elizabeth hotel, the Isango Boutique Hotel and Spa, offers a variety

of services beyound accomadation, including a luxury spa and hosting of

weddings, conferences and parties. Kat Leisure Group’s offering extends

ONLINE RESOURCES

Eastern Cape Parks and Tourism Agency:

www.visiteasterncape.co.za

Mandela Bay Development Agency: www.mbda.co.za

St Francis Tourism: www.stfrancistourism.co.za

from the Kennaway Hotel on East

London’s beachfront to the Queens

Casino and Hotel in Queenstown

and properties in the mountainous

interior of Katberg and Hogsback.

Premier Hotels has two hotels in

East London, the Mpanga Private

Game Reserve and it manages

the East London International

Convention Centre. The Radisson

Blu in Port Elizabeth offers five-star

luxury overlooking Pollock Beach.

The modern 14-storey building has

173 rooms and suites.

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.

Apart from the two resorts

mentioned in relation to land

claims, Sun International has

the five-star Boardwalk Casino

and Entertainment World in

Port Elizabeth which includes

conference and events facilities.

Makana (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. A study

has put the economic impact of

the festival at close to R350-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.

31

EASTERN CAPE BUSINESS 2019


PROFILE

Isango Gate Boutique

Hotel and Spa

Indulge your senses.

The building which houses Isango Gate

Boutique Hotel and Spa was built in the

early 1900s and has been transformed

into a sophisticated, elegantly styled boutique

hotel. Isango Gate provides a serene yet

modern setting which includes African Zen gardens,

an open deck area, earth tones and modern

lines and style. A marine theme contributes to the

calming effect. This great escape is situated in the

premier suburb of Summerstrand in Port Elizabeth

and on the doorstep of pristine Blue Flag beaches.

Exclusivity

Each of the 10 tastefully designed suites are

equipped with free Internet connection, fine linen,

luxurious amenities and provide a private oasis

of serenity. All efforts are dedicated to providing

luxurious comfort, modern facilities and intuitive

technology combined with exceptional, personalised

service.

Eight suites have private balconies and views of the

sea. All rooms have a peaceful and harmonious touch

with contemporary finishes.

ONLINE RESOURCES

Isango Gate Boutique Hotel and Spa

23 Bournemouth Street, Summerstrand,

Port Elizabeth 6001

Tel: +27 41 811 2225

Email: generalmanager@isangogate.co.za/

guestrelations@isangogate.co.za

Functions: functions@isangogate.co.za

Spa: spa@isangogate.co.za

Website: https://isangogate.co.za

In-room facilities

• King-size beds

• TV with DStv

• Climate control

• Fully-stocked bar fridges

On-site facilities

• Awesome gym

• Sparkling pool

• Sundeck

• Cocktail lounge

• Kiddies care

• Wine cellar

• Restaurant

• Boardroom

• Steam room

• Secure parking

• Jacuzzi

EASTERN CAPE BUSINESS 2019

32


Your antidote to

urban life

FOCUS

Isango Gate Boutique Hotel and Spa offers a great escape.

Over and above luxury accommodation

options just a few minutes’ walk from

Port Elizabeth’s finest beaches, the

Isango Gate Boutique Hotel and Spa

caters for a wide variety of activities which range

from a luxury spa to conference facilities, a poolside

bar and a fine restaurant which is regularly used to

host weddings and parties.

Conferences

The Mvumelwano

Conference Centre

can accommodate

up to 70 guests

and is fully

equipped with a

projector, sound,

air conditioner

and appropriate lighting. Extra equipment

or special requests are welcome and can be

discussed.

Bar

The Ndlovu

S i n a z o

Bar is set

alongside

an infinity

swimming

pool and creates the ultimate atmosphere for

sundowners. This bar extension offers light

meals, cocktails and wine by the glass. For those

wanting to embrace the atmosphere, cigars are

on sale to end off a great evening. The Ndlovu

Sinazo Bar is open seven days a week for lunch

and evening snacks.

Spa

The Isango Gate

Spa is a luxury spa

in the heart of Port

Elizabeth. Whether

you are looking for

a dedicated spa break or would simply like to relax

and pamper yourself, you will find everything

you need all in an idyllic setting. In this haven of

wel- being, you can relax in the deluxe jacuzzi or

soothe your muscles and rid your body of toxins

in the steam room. Work out in the well-equipped

gym and enjoy the infinity pool.

Restaurant

The Penda Pendu restaurant, meaning “together

in our house” in Shona, is equipped with a gas

fireplace where guests can enjoy gourmet

South African dishes with international flare

complemented with fine local, international and

rare wines. The full à la carte restaurant is open to

the public and is available for functions such as

baby showers, birthday parties, bridal showers,

high teas, weddings and year-end functions.

33 EASTERN CAPE BUSINESS 2019


OVERVIEW

Manufacturing

Pharmaceutical and automotive manufacturers are investing in new capacity.

Established players and new entrants are putting money into new

and expanded facilities in pharmaceuticals and the automotive

industry, two of the strongest manufacturing sectors in the

Eastern Cape.

Of the established companies, Volkswagen, Mercedes-Benz, Ford,

South African Breweries and Aspen Pharmacare are all either upgrading

facilities or adding new production lines.

New entrants include MSQ Health, which will build a R100-million

factory in the Coega Special Economic Zone, which is partnering with the

company. The focus will be on active pharmaceutical ingredients (API).

Phase 1 in the construction process of the vehicle assembly plant

of Beijing Automotive Group South Africa (BAIC SA) was completed in

2018. The total project involves an investment of R11-billion. BAIC expects

to be building 50 000 vehicles per year at its site at Coega SEZ by 2022.

The Eastern Cape manufactures half of the country’s passenger

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

accounts for over 40 000 formal sector jobs in the province.

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.

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.

Several cluster development programmes in the Eastern Cape

aim to develop specific industries by bringing together expertise and

logistical support. Marine manufacturing is the focus of the Mandela

Bay Composites Cluster (MBCC). A Non-Automotive Manufacturing

(NAM) Cluster concentrates on training, supplier development, energy

efficiencies and developing new markets.

The provincial government wants to see more diversification in

manufacturing and 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

ONLINE RESOURCES

Coega Development Corporation: www.coega.co.za

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

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

SECTOR INSIGHT

Aspen Pharmacare will hire

500 new staff.

entry. Sectors targeted include:

agri-processing and food; timber;

tourism; construction; chemicals;

energy and mariculture.

There is great potential to create

more value from the excellent

wool, leather and mohair that

the province’s livestock produce.

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.

The opening in May 2018 of a R1-

billion specialised product facility at

the Port Elizabeth plant of Aspen

Pharmacare will add 500 jobs to the

existing complement of 2 000 staff

members. The new plant will make

products for chronic conditions, a

new departure for the company

which until now has focussed on

generics. Annual production is

planned of about 3.6-billion tablets.

A new production line came on

line at the Ibhayi Brewery of South

African Breweries (AB InBev) at

Perseverance in the Eastern Cape

in 2018. The new line, costing R438-

million, will add 500 000-hectolitres

to the brewery’s capacity.

EASTERN CAPE BUSINESS 2019

34


SAVE THE DATE

FUTURE EVENTS

East london icc

AUDIT&RISK

INDABA

10-12

april

2019

PUBLIC SECTOR

FINANCE GRAP

SEMINAR

8-9 JULY 2019

EKURHULENI

7-9 OCTOBER 2019

CIGFARO

ANNUAL

CONFERENCE

dURBAN icc


OVERVIEW

Education

Eastern Cape universities are leading research in vital sectors.

Expensive medical tests in rural areas for problematic

pregnancies could soon be a thing of the past. The new

Rhodes University Biotechnology Innovation Centre is working

on a cellphone app that will send colour pictures of test strips

to diagnostic centres, saving the patient a long and difficult journey.

The University of Fort Hare is leading three innovative studies into

biogas including a project investigating compressed biogas for public

transport. Partners in the project are the Department of Economic

Development, Environmental Affairs and Tourism (DEDEAT), the

United Nations Industrial Development Organisation and United States

Agency for International Development. The South African National

Energy Development Institute (SANEDI) is working with Fort Hare on

a pilot scheme of biodigesters for households.

In 2017, Nelson Mandela University (NMU) inaugurated its Ocean

Sciences 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

(SAIMI). The university has four marine sector chairs funded by the

South African Research Chair Initiative (SARChI) and the National

Research Foundation (NRF).

Walter Sisulu University (WSU) and the University of South

Africa (Unisa) offer vocational training (diplomas) and academic

programmes (degrees).

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 NMU, which offers a Bachelor of Engineering in Mechatronics,

covering electronics, mechanical engineering and computer-aided

design. Volkswagen supports the International Chair in Automotive

Engineering at NMU. Rhodes University’s Centre for Environmental

Water Quality, within the Institute for Water Research, is sponsored by

Unilever. The NMU Institute of Chemical Technology commercialises

research through a body called InnoVenton and has several clients in

the private sector.

The Provincial Government of the Eastern Cape is supporting

skills training in the maritime sector through the Maritime Youth

ONLINE RESOURCES

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

Ocean Sciences Campus: www.mandela.ac.za

Technology Innovation Agency: www.tia.org.za

SECTOR INSIGHT

Rhodes University has a new

Biotechnology Innovation

Centre.

Development Programme. So far,

it has benefitted 128 young people

from Buffalo City Municipality and

Port St Johns and will be rolled

out to other areas. In the Youth

in Infrastructure Maintenance

Programme, the provincial

government partners with several

national departments to provide

opportunities for unskilled young

people with NCV 4 and Grade

12 qualifications and below. The

programme is targeting 5 000

young people over a period of

five years.

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.

EASTERN CAPE BUSINESS 2019

36


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.eccogta.gov.za

Department of Economic Development,

Environmental Affairs and Tourism

MEC: Oscar Mabuyane

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

Superintendent General: Themba Kojana

Steve Tshwete Education Building, Zwelitsha Zone 6, Zwelitsha

Tel: +27 40 608 4200

Fax: +27 40 608 4040

Website: www.ecdoe.gov.za

Department of Health

MEC: Helen Sauls-August

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: Mlungisi Mvoko

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

Tel: +27 43 711 9595

Fax: +27 43 711 9785

Website: www.ecdhs.gov.za

Department of Public Works

MEC: Pemmy Majodina

5 Qasana Building, Independence Avenue, Bhisho 5605

Tel: +27 40 602 4000

Fax: +27 40 639 2926

Website: www.ecdpw.gov.za

Department of Rural Development

and Agrarian Reform

MEC: Xolile Nqatha

Dukumbane Building, Independence Avenue, Bhisho 5606

Tel: +27 40 602 5006

Fax: +27 40 635 0604

Website: www.drdar.gov.za

Department of Safety and Liaison

MEC: Weziwe Tikana

Arches Building 7, Taylor Street,

King Williams Town 5601

Tel: +27 43 605 6800

Fax: 086 558 0224

Website: www.ecprov.gov.za

Department of Social Development

MEC: Dr Pumza Dyantyi

Cnr Hockley and Hargreaves Streets, Beacon Hill,

King Williams Town 5600

Tel: +27 43 605 5419

Fax: +27 43 605 5000

Website: www.ecdsd.gov.za

37 EASTERN CAPE BUSINESS 2019


LISTING

Department of Sports, Recreation,

Arts and Culture

MEC: Bulelwa Tunyiswa

Wilton Zimasile Mkwayi Building, 5 Eales Street,

King Williams Town 5600

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

Website: www.ecsrac.gov.za

Provincial Treasury

MEC: Oscar Mabuyane

Provincial Treasury, Tyamzashe Building, Bhisho 5605

Tel: +27 40 353 9944

Fax: +27 40 101 0731

Website: www.ectreasury.gov.za

Department of Transport

MEC: Weziwe Tikana

Stellenbosch Park, Flemming St, Schornville,

King Williams Town 5601

Tel: +27 43 604 7400 | 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 5700 | Fax: +27 43 831 1306

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

EASTERN CAPE BUSINESS 2019

38


LISTING

Raymond Mhlaba Local Municipality

Tel: +27 46 645 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: + 27 47 878 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

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.gov.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

Senqu Local Municipality

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

Website: www.senqu.gov.co.za

Walter Sisulu Local Municipality

Tel: + 27 51 653 1777

Fax: + 27 51 653 0056

Website: www.wslm.gov.za

NELSON MANDELA BAY METROPOLITAN

MUNICIPALITY

City Hall, Vuyisile Mini Square,

Govan Mbeki Avenue, Nelson Mandela Bay

Tel: +27 41 506 1911

Fax: +27 41 506 2422

Website: www.nelsonmandelabay.gov.za

OR TAMBO DISTRICT MUNICIPALITY

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

Tel: +27 47 501 6400

Fax: +27 47 532 6518

Website: www.ortambodm.gov.za

Ingquza Hill Local Municipality

Tel: +27 39 252 0131

Fax: +27 39 252 0699

Website: www.ihlm.gov.za

King Sabata Dalindyebo Local Municipality

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

Website: www.ksd.gov.za

Mhlontlo Local Municipality

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

Website: www.mhlontlolm.gov.za

Nyandeni Local Municipality

Tel: +27 47 555 5000

Fax: +27 47 555 0202

Website: www.nyandenilm.gov.za

39

EASTERN CAPE BUSINESS 2019


LISTING

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 42 243 6400 | Fax: + 27 42 243 0633

Website: www.bcrm.gov.za

Dr Beyers Naude Local Municipality

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

Website: www.bnlm.gov.za

Kou-Kamma Local Municipality

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

Website: www.koukammamunicipality.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 46 604 5500

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

Kouga Local Municipality

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

Website: www.kouga.gov.za

Municipalities in the Eastern Cape

Free State

LESOTHO

Alfred Nzo

Matatiele

KwaZulu-

Natal

Northern Cape

Western

Cape

Inxuba Yethemba

Gariep

Tsolwana

Inkwanca

Senqu

Maletswai

Joe Gqabi

Chris Hani

Emalahleni

Lukhanji

Sakhisizwe

Intsika Yethu

Engcobo

Elundini

Mbhashe

Umzimvubu

King Sabata

Dalindyebo

Ntabankulu

OR Tambo

Mhlontlo

Ingquza

Hill

Nyandeni

Port

St Johns

Mbizana

Dr Beyers Naude

Blue Crane Route

Sarah Baartman

Nxuba

Makana

Nkonkobe

Ngqushwa

Amahlathi

Amathole

Buffalo

City

Mnquma

Great Kei

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

EASTERN CAPE BUSINESS 2019

40


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