Western Cape Business 2020 edition

christoffscholtz

A unique guide to business, investment and tourism in the Western Cape.
The 2020 edition of Western Cape Business is the 13th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape.

The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature examines the water sector in the light of the drought which led to many people rethinking their approach to this vital resource. The journal contains news and information from business and investment agencies and bodies such as the Cape Chamber of Commerce, the Western Cape Business Opportunities Forum and Wesgro, the Western Cape’s dedicated tourism, trade and investment agency for the Western Cape and the City of Cape Town.

Updated information on the Western Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

WESTERN CAPE

BUSINESS

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE WESTERN CAPE PROVINCE

2020 EDITION

JOIN US ONLINE

WWW.GLOBALAFRICANETWORK.COM | WWW.WESTERNCAPEBUSINESS.CO.ZA


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1 WESTERN CAPE BUSINESS 2020


The Cape Winelands

District charts the way

to a prosperous future

A new regional Socio-Economic Development

Strategy has been developed.

The Cape Winelands District Municipality has recently adopted

its new Socio-Economic Development Strategy. The objective

is to identify key social and economic challenges of the Cape

Winelands region and find ways to overcome those challenges

while exploring new opportunities for growth.

The strategy outlines how the Cape Winelands District Municipality

will invest in its people and how it will create an enabling environment

in which business can develop, grow and thrive by fostering greater

investment that will increase job growth and alleviate poverty.

The involvement of local stakeholders in the process of developing

their own territory is a prerequisite for sustainable growth.

Strategic goals

Five main goals have been identified.

Growing and thriving entrepreneurship and innovation

Businesses create employment for local residents, provide families

with livelihoods and ignite local economic development. A strong

and diversified business sector can assist to mitigate the area’s

dependence on the agricultural sector. The municipality will:

• Continue to focus on supporting small business development.

• Continue to support sector development in wine tourism.

Wine tourism already contributes in excess of R6-billion to

the GDP annually and with a national wine tourism strategy

and a coordinated plan, the aim is to increase that to R16-billion

by 2025. The CWDM will continue to support industry

associations such as VINPRO and WOSA to grow the wine

tourism industry.

• Grow the creative economy. The Cape Winelands is home to

many artists, writers, dancers, designers, musicians, chefs,

and all sorts of talented and interesting people. The Cape

Winelands will support this ecosystem through its partnership

with the University of Stellenbosch.

• Promote innovation and diversification. Successful businesses

continually strive to improve on their products and services

and search for new markets. The municipality undertakes

to give recognition to those

innovative businesses.

Working towards building

safe, healthy, active and

productive communities

together

The role of the Municipality

is one of support, facilitation

and creating an enabling

environment. Coordinating

efforts and cooperation between

all spheres of government and

the various NPOs and NGOs

can prevent duplication of

programmes and enhance the

impact of programmes. The

Municipality should not attempt

to replace or duplicate the work

done by NPOs and NGOs but

aim to maximise the benefits of

these civil society and private

sector initiatives.

Facilitating investment

attraction, retention and

opportunities

In order to attract foreign

investment, government

should establish support

infrastructure and be committed

to a pro-business (private sector)

attitude. The local workforce

should be well-trained, basic

infrastructure should be in place

and international links should

be fostered. Potential investors

WESTERN CAPE BUSINESS 2020

2


are also attracted by good

governance and capable market

institutions. The Cape Winelands

District investment attraction,

retention and opportunities

plan has within it Business

Retention and Expansion (BR&E),

Investment Opportunities and

creating competitiveness as key

focus areas.

The CWDM will continue to

implement co-funded tourism

projects with the private sector.

The programme has already seen

a number of successful projects:

• The Franschhoek Hospitality

and Learning Academy

trains about 20 students a

year in hospitality and

students do in-service

training at restaurants.

• Dine with a Local project has

been so successful that one

of the hostesses is booked

out a year in advance.

• The DansCape ballet

dancing in Zolani has

produced talents that are

currently dancing all over

the world.

• Past projects include the

development of an online

Wine Tourism Industry

Toolkit which is a

comprehensive online

resource for the wine

industry.

• Tourism mobile apps for the

district’s 14 towns have

also been developed.

Environmental protection

that promotes sustainable

development and economic

growth

The key driver is to uplift rural

places, the rural economy and

people. The District will facilitate

Early Child Development centre staff members with their First Aid

certificates. Training was sponsored by the CWDM.

continued support for projects and programmes that improve

competitiveness, encourage diversification of the rural economy and

that improve community resilience, improve the quality of life in rural

areas and that protect and enhance the natural environment.

Culture, diversity and vibrant places

The Cape Winelands District Municipality is the Regional Tourism Organisation

(RTO) for the Cape Winelands Tourism Region. The CWDM

provides regional leadership and coordination and works with industry

partners, such as the Local Tourism Associations, to grow tourism

through activities such as strategic planning, research, product development,

training and marketing.

It is the people of the Cape Winelands, their stories, their books, their

poems, their paintings, their theatre performances, their vision for their

tourism businesses, their story-telling, their music and songs, their culinary

creations, their wine-making talents, their arts and crafts and their business

innovation talents alike, that the District wants to share with visitors.

The tourism industry has an important role to play in attaining the

region’s goals for growth and job creation.

The way forward

The Socio-Economic Development Strategy provides strategies

that will help the District Municipality in collaboration with

its partners and communities to build on our socio-economic

development efforts.

It is only through collaboration and a shared commitment

between all stakeholders, that the Cape Winelands Regional Socio-

Economic Development Strategy can be successfully implemented.

The Cape Winelands Socio-Economic Development Strategy

builds on previous programmes and identifies new ways in which

the District Municipality can grow the economy and facilitate the

creation of new jobs. The strategy will continue to evolve over

time so that the District Municipality and its partners can seize new

opportunities and respond to emerging challenges.

3 WESTERN CAPE BUSINESS 2020


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WESTERN CAPE BUSINESS 2020

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CONTENTS

CONTENTS

Western Cape Business 2020 Edition

Introduction

Foreword 13

Western Cape Business is a unique guide to business,

tourism and investment and tourism in the Western Cape.

Special features

Regional overview 14

The Western Cape’s exports are expanding while the

region’s reputation as a technology hub continues to grow.

Water solutions are available 34

The De Rust WaterWise Ways project is showing the way.

Economic sectors

Agriculture 46

Blueberries are good for job creation.

Wine and grapes 48

Wine exports to China are up 109%.

Fishing 50

Ownership patterns in the fishing industry are changing.

Mining 51

A huge project to increase volumes at the Port of Saldanha

is planned.

WESTERN CAPE BUSINESS 2020

8


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9 WESTERN CAPE BUSINESS 2020


CONTENTS

Oil and gas 52

The Western Cape is turning to gas.

Energy 54

Green business is blooming in the Western Cape.

Manufacturing 58

Boatbuilding exports have soared since 2014.

Maritime 60

The Oceans Economy is creating new opportunities.

Construction and property 61

Student accommodation is on trend.

Tourism and events 68

Arts and culture are front and centre in the Western Cape.

Banking and financial services 70

Cape Town is a fintech hub.

Development finance and SMME support 71

Sauce company finds the right funding recipe.

Education and training 76

Skills training is a national priority.

Business Process Outsourcing 84

A war room is removing red tape in BPO.

WESTERN CAPE BUSINESS 2020

10


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AND CENTRES OF SPECIALISATION PROGRAMMES

their occupational programmes - the theoretical

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occupational courses in the following elds:

Art & Design

Beauty Thearpy

Building & Civil Engineering

Business Studies

Education and Training

Electrical Engineering

Haircare

Hospitality

Information & Communication Technology

CENTRE OF SPECIALISATION (CoS) is a

national programme aimed at producing:

A skilled and capable workforce to

support inclusive economic growth

Increased availability of intermediatelevel

technical skills

Increased delivery of qualiied artisans in

13 priority trades

Improved capacity of public TVET

colleges to train in skills in demand by

industry

How does it work?

Dual system apprenticeships that

combine

technical education at a TVET college

with...

simulated practical training and...

lots of authentic work experience in a

single, integrated learning programme

... with employers in the driver’s seat

Who are involved?

It’s a partnership between the national

Department of Higher Education and

Training and business associations from

the private sector, focusing on 13 priority

trades.

The College of Cape Town has been

appointed as Centres of Specialisation

for Plumbing and Automotive Motor

Mechanics.

Change technical skills training in your

company from a money-taker into a

money-maker by getting these

benefits through CoS:

During apprenticeships:

- Productive value of apprentice’s

work

- SETA grant towards training costs

Tax-break from SARS

- BBBEE scorecard points for skills

development

- Opprtunity to shape college

curriculum, thereby improving

future supply of suitable workers

After apprenticeships:

- Skilled employees, trained to

industry standards & acculturated to

your company - immediately

productive

- Lower-risk and lower cost of

recruitment

- Enhanced employee retention

11 WESTERN CAPE BUSINESS 2020


CONTENTS

Government

Western Cape Provincial Government 85

An overview of the Western Cape Provincial

Government departments.

Reference

Sector contents 44

Index 88

Maps

Western Cape municipal map 19

ABOUT THE COVER: Credit: subman/iStock by Getty Images. Cape Town routinely wins awards such

as “Africa’s Leading Festival & Event Destination” 2018 and 2019 (World Travel Awards, 2018 and 2019).

Surveys often find that tourists love the place, such as the Daily Telegraph’s readers who voted in the

Telegraph Travel Awards for “Greatest City on Earth”. The city has 33 Blue Flag beaches, nine Blue Flag

marinas and two UNESCO World Heritage Sites, Robben Island and the Cape Floral Kingdom. Beyond the

Cape Peninsula, the Cape Winelands ranks among the must-sees, as does the Garden Route.

WESTERN CAPE BUSINESS 2020

12


Western Cape Business

A unique guide to business, investment and tourism in the Western Cape.

FOREWORD

Credits

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: John Young

Managing director: Clive During

Online editor: Christoff Scholtz

Art director: Brent Meder

Designer: Richard Smith

Production: Lizel Olivier

Ad sales: Gavin van der Merwe,

Sam Oliver, Jeremy Petersen

Gabriel Venter, Vanessa Wallace,

Shiko Diala and Sandile Koni.

Administration & accounts:

Charlene Steynberg

and Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

Western Cape Business is distributed internationally on

outgoing and incoming trade missions, through trade and

investment agencies; to foreign offices in South Africa’s

main trading partners around the world; at top national

and international events; through the offices of foreign

representatives in South Africa; as well as nationally and

regionally via chambers of commerce, tourism offices, airport

lounges, provincial government departments, municipalities

and companies.

Member of the Audit Bureau

of Circulations

The 2020 edition of Western Cape Business is the 13th issue

of this highly successful publication that, since its launch

in 2005, has established itself as the premier business and

investment guide for the Western Cape.

The Western Cape has several investment and business

opportunities. In addition to the regular articles providing insight

into each of the key economic sectors of the province, a special

feature examines the water sector in the light of the drought

which led to many people rethinking their approach to this vital

resource. The journal contains news and information from business

and investment agencies and bodies such as the Cape Chamber

of Commerce, the Western Cape Business Opportunities Forum

and Wesgro, the Western Cape’s dedicated tourism, trade and

investment agency for the Western Cape and the City of Cape Town.

To complement the extensive local, national and international

distribution of the print edition, the full content can also be

viewed online at www.westerncapebusiness.co.za. Updated

information on the Western Cape is also available through our

monthly e-newsletter, which you can subscribe to online at www.

globalafricanetwork.com, 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

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 1816 370X

COPYRIGHT |Western 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.

PHOTO CREDITS | Pictures supplied by subman/iStock

by Getty Images (cover), Amdec Group, Gouritz Cluster

Biosphere Reserve, iStock by Getty Images, Marriott

International, Pesto Princess, Dr Joseph Raimondo/UCT, Richard Smith,

Southern Wind Shipyard, Transnet National Ports Authority, Chris Whales.

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)

Ltd, has used all reasonable efforts to ensure that the information

contained in Western 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.

13 WESTERN CAPE BUSINESS 2020


SPECIAL FEATURE

A regional overview

of the Western Cape

By John Young

The Western Cape’s exports are expanding while the region’s reputation

as a technology hub continues to grow.

Investment into the Western Cape is steadily

growing in a wide range of sectors and from an

increasingly diverse set of countries.

These include a Japanese financial services

company, several French outfits concerned with

financial technology and Spanish and Danish

firms in the renewable energy sector. Tech giants

such as Amazon and Microsoft have recently made

major investments.

The City-region surrounding the provincial

capital, Cape Town, has established itself as a

technology hub with ICT a priority for city and

provincial governments. In global survey done

in 2017, Savills identified 22 cities that had the

potential to be world leaders in technology and

Cape Town was on that list. More than 80% of

schools in the province now have access to the

Internet and foreign companies are choosing

the Cape.

The French government has officially

designated the city as one of six global French

Tech Hubs. French Tech Labs is a fintech incubator,

offering mentoring for innovators, connections

to possible investors and a chance to travel to

France. Barclays Bank has invested in a fintech

incubator in Cape Town, Rise. There are six other

Rise sites around the world, including New York

and Mumbai.

WESTERN CAPE BUSINESS 2020

14


SPECIAL FEATURE

Amazon Web Services (AWS) will set up a data

centre in Cape Town in 2020 to serve Sub-Saharan

Africa. Microsoft Azure data centres have been

launched in Cape Town and Johannesburg. There

are 2 000 ICT firms in the Western Cape, and they

have 17 000 employees.

Encouraging investment in Cape Town has

been recognised as something that needs a fulltime

office and a strategy. Invest Cape Town is an

agency of the city that works to create the best

possible conditions to attract investors. Areas of

focus include broadband access, energy security,

the reduction of red tape and improving air access

to the city.

The province has a dedicated investment

agency, Wesgro, which also serves the City of

Cape Town. The Investment Promotion Unit of

Wesgro has been working with various regions

within the Western Cape to attract investment and

accelerate exports. Seminars have been held in the

Cape Winelands, the West Coast and the Garden

Route. In the decade to 2015, the Garden Route’s

economy grew at an average rate of 4.8% and total

exports (about R2-billion) expanded by 45% in the

same period.

Key sectors are agri-processing, aviation,

business services, education and training, financial

services, real estate, ICT, light manufacturing, oil

15 WESTERN CAPE BUSINESS 2020


SPECIAL FEATURE

and gas, timber, tourism, waste beneficiation and

clean energy.

Being perceived as business-friendly is clearly

important to policy planners in the Western

Cape. In his first State of the Province Address,

new Premier Alan Winde said in 2019 that his

administration’s priorities included removing and

streamlining barriers for business, developing a

provincial “Ease of Doing Business Index” in the

Western Cape, supporting informal and township

economies and providing incentive schemes for

small businesses.

Africa was the destination for the largest share

of Western Cape exports ($3.3-billion) in 2017,

with SACU and SADC being the second and third

largest subregions for Western Cape exports after

the European Union ($2.4-billion). The rest of Africa

is also the largest destination for investment by

Western Cape companies, accounting for 54% of

outward FDI investment from 2008 to September

2018. An estimated 46% of international

companies investing in the Western Cape

indicated that they intended using the Western

Cape as a springboard into Africa (Wesgro).

One of the strongest growth areas for exports

is in the halal market. The inaugural Africa Halal

Week in 2018 had 25 international guests with

700 delegates. Agricultural and agri-processing

products have done well in all markets.

Key export facts

By reporting time at the end of Quarter 3 of the

2018/19 financial year, Wesgro reported:

• A total of 16 global export business

agreements amounting to an estimated

R338-million in export value in Quarter 3.

• R4-billion in trade deals secured for Cape

Town and the Western Cape to date.

• Resulting in 783 jobs over the next five years.

Speaking at a conference in 2019, Cape Town

City Mayoral Committee Member for Economic

Opportunities and Asset Management James

Vos said, “Our main aim is to be the go-to city in

Africa for business, investment, film, trade and

tourism.” Vos outlined how the city was investing

in IT infrastructure, with 848km of fibre-optic cable

laid and a further R1.9-billion in the pipeline to be

spent on fibre infrastructure.

The successful Air Access programme has

not only boosted tourist numbers to the Western

Cape. The new United Airlines flight between Cape

Town and New York will lead to an increase in

direct and indirect imports into the province, with

cargo capacity contributing approximately R94-

million in possible additional trade. It could also

contribute R286-million to the Gross Geographic

Product (GGP) and R144-million in direct Gross

Value Add (GVA) to the local economy.

WESTERN CAPE BUSINESS 2020

16


SPECIAL FEATURE

Economy

Finance, business services and real estate

combined contribute 28% to the Gross

Domestic Product (GDP) of the Western Cape.

The financial services and insurance sectors

are key components of the economy. Many of

South Africa’s biggest companies have their

headquarters in Cape Town. Asset management

and venture capital companies have been

growing steadily.

Although agriculture only accounts for 4.3%

of GDP on its own, the sector is responsible for

the fruit and vegetables that contribute to agriprocessing

which accounts for nearly 40% of

the province’s export basket. (Agri-processing

accounts for 8.1% of GDP.) Citrus, wine, apples

and pears, grapes, fruit juice, fruit and nuts and

tobacco all appear in the top 10 of the province’s

exports. Seventy percent of South Africa’s

beverage exports come from the Western Cape.

Grapes and wine sales to Europe remain very

strong but the Chinese market is becoming

increasingly important.

The province has a diverse manufacturing

sector ranging from textiles, clothing, footwear

and furniture to coke and refined petroleum

products. Excluding agri-processing, other

manufacturing makes up 6.9% of GDP.

Regions

The province is divided into one metropolitan

municipality and five district municipalities:

Cape Town Metropolitan Municipality

Cape Town is a culturally diverse and dynamic

metropolis set among beautiful beaches and

winelands with the spectacular Table Mountain as

a backdrop. The city is the engine of the regional

economy, with most of the Western Cape’s

heavy and medium industry located within the

metropolitan area of Cape Town.

The largest sector in the city’s economy is

the financial and business services industry.

The opening of a branch of the JSE in the city

is a sign that this sector continues to grow, as is

the decision of more asset managers to move

their headquarters to Cape Town. The tourism,

retail, construction and property sectors have

been doing well for many years. The city has a

population of 3.2-million and contributes 76% of

the Regional Gross Domestic Product.

Cape Town is home to the nation’s parliament

and is the site of two World Heritage Sites: the

Cape Floral Region (including Table Mountain)

and Robben Island. The Cape comprises only half

a percent of the landmass of Africa yet the Cape

Floral Region accounts for nearly 20% of the flora

17 WESTERN CAPE BUSINESS 2020


SPECIAL FEATURE

The property market in Plettenberg Bay reflects this Garden Route town’s popularity as a destination.

of the continent. Robben Island was the site of

the incarceration of the most prominent political

prisoners during the apartheid era, including

Nelson Mandela.

Cape Town has been welcoming the world

in increasing numbers since Mandela’s release in

1990, and it is now regarded as one of the world’s

great tourist destinations.

The Port of Cape Town is ideally situated at the

crossroads of some of the world’s most important

trade routes. The transport, maritime and logistics

sector is consequently very important. Bunkering

and ship repair are other vital port facilities, and the

boat repair and boat building industries continue

to grow. The port plays a major role in exporting

the province’s excellent fruit, wine and other

agricultural products to international markets.

Cape Town has a diverse manufacturing

sector, with petroleum products, food and

beverages and metals and metal products being

major sectors. Growth sectors include the film

industry, ICT and other tech specialities such as

fintech and medical diagnostics.

West Coast District Municipality

Towns: Saldanha Bay, Malmesbury, Clanwilliam,

Vredenburg, Moorreesburg.

The economy of this region ranges from

manufacturing in Saldanha, Atlantis and

Malmesbury to agriculture and forestry centred

on inland towns like Moorreesburg (wheat),

Cedarberg (forestry) and Citrusdal. Cement is

made in Riebeeck West and Piketberg and fishing

takes place all along the coast. Rooibos tea and

shoes are made in Clanwilliam. The remote mission

station of Wupperthal, famous for its veldskoens,

suffered a bad fire in 2018. The Port of Saldanha

Bay is the principal port for the export of iron

ore and with the impending declaration of the

Saldanha Industrial Development Zone, is gearing

up to service the continent’s oil and gas industry

with oil rig maintenance among the services.

Mineral sands are mined north of Saldanha.

Cape Winelands District Municipality

Towns: Stellenbosch, Paarl, Worcester, Robertson,

Wellington, Franschhoek.

Nearly 70% of South Africa’s wine comes from

this area. Vineyards also attract many tourists but

tourism in the Winelands includes wellness spas,

adventure tourism and game farms. Manufacturing

is concentrated on processing grapes and fruit into

wine, juice, brandy, dried and tinned fruit products.

Dairy manufacturer Parmalat has a large cheesemaking

facility in Bonnievale. Robertson is known

for roses and thoroughbred horses. Stellenbosch

is home to its eponymous university which is

becoming synonymous with tech start-ups and

innovation. Several large companies, such as PSG

Group, have their headquarters in the town.

Overberg District Municipality

Towns: Caledon, Bredasdorp, Hermanus,

Swellendam, Cape Agulhas.

The Overberg contains the southernmost

tip of Africa (Cape Agulhas), the oldest mission

station in South Africa (Genadendal), a large

casino resort (in Caledon) and some of the

WESTERN CAPE BUSINESS 2020

18


SPECIAL FEATURE

best whale viewing in the world (Whale

Coast). Swellendam is a superb location for the

cultivation of berries and horse breeding. The

region hosts high-quality fruit farms in the Ceres

Valley and rural villages that are very popular

with tourists such as Barrydale and Greyton.

Agriculture is the principal economic activity of

the region and the services sector is strong.

Garden Route District Municipality

Towns: George, Oudtshoorn, Calitzdorp, Knysna,

Mossel Bay, Plettenberg Bay.

The area has two important tourist names: the

Cape Garden Route on the coast and the Klein

Karoo between the mountain ranges. Route 62 is a

popular route which ends (or starts) in Oudtshoorn,

home of the Cango Caves. A report by the Bureau

for Economic Research has found that the Garden

Route DM is one of the best-performing regions

because of tourism. The area is famous for fine

golf courses and golf estates. Mossel Bay, where

the slipway in the harbour has received a multimillion-rand

upgrade, hosts a large gas-processing

plant while George is a node of manufacturing,

trade and administration. The Klein Karoo has its

own wine route and port, cheese and brandy are

produced. Fruit, vegetables and ostriches are other

main products.

Central Karoo District Municipality

Towns: Beaufort West, Laingsburg, Prince Albert.

The largest district in the province has the

smallest population, a reflection of the semi-desert

conditions: 71 000 people live on 38 000km².

Sheep farming predominates and there are

plans to introduce agri-parks to towns in the

region. Beaufort West is strategically positioned

on the N1 highway which links Cape Town

with the interior of South Africa but has been

experiencing terrible drought conditions in

recent years. The nearby Karoo National Park

has acquired some lions and Prince Albert is a

quaint town in the shadow of the Swartberg

Mountains, close to the dramatic portals that link

the Karoo to the Klein Karoo: Seweweekspoort,

the Swartberg Pass and Meiringspoort. ■

Municipalities in the Western Cape

WCDMA01

Northern Cape

Metropolitan/District Municipality

Boundary

Local Municipality Boundary

District Municipality

Local Municipality

Garden Route

Oudtshoorn

Matzikama

WCDMA05

Cederberg

Beaufort West

West Coast

Central Karoo

Bergrivier

WCDMA02

Saldanha

Bay

Swartland

City of

Cape Town

Metropolitan

Municipality

ATLANTIC OCEAN

Witzenberg

Cape Winelands

Breede Valley

Drakenstein

Langeberg

Stellenbosch

Theewaterskloof

Swellendam

Overberg

Cape Agulhas

WCDMA03

Overstrand

Laingsburg

Kannaland

Hessequa

Prince Albert

Oudtshoorn

WCDMA04

Garden Route

George Knysna Bitou

Mossel Bay

INDIAN OCEAN

Eastern Cape

19 WESTERN CAPE BUSINESS 2020


Red Tape

Reduction

Unit

The Red Tape Reduction Unit makes it easier for businesses

to thrive in the Western Cape, by growing our economy and

creating more jobs. The amount of red tape and bureaucracy

faced by businesses when dealing with government restricts

economic development and growth. Creating an enabling

The Red Tape Reduction Unit makes it easier

for businesses to thrive in the Western Cape, by

environment for business is, growing therefore, our economy fundamental and creating more to jobs. creating

The amount of red tape and bureaucracy faced

a competitive economy. by businesses when dealing with government

restricts economic development and growth.

Research shows that red Creating tape an enabling costs environment South for Africans business R79

is, therefore, fundamental to creating a

competitive economy.

billion per year. This is equivalent to 6,5% of GDP, or 16,5% of

Research shows that red tape costs South

the total wage bill in 2003 (Small Africans R79 Business billion per Project year. This is (SBP) equivalent 2005).

The amount of red tape and bureaucracy faced

Red tape is defined as:

by Red businesses tape is defined when dealing as: with government

• restricts non-essential economic procedures, development forms, and licences, growth.

• non-essential procedures, Creating and regulations forms, an enabling that licences, environment add to the for cost business of

is, dealing therefore, with government; fundamental or to creating a

• competitive anything obsolete, economy. redundant, wasteful

regulations that add to or the confusing cost of that dealing diminishes with the

Research competitiveness shows that of the red province, tape costs which South

government; or Africans stands in R79 the billion way of per economic year. This growth is equivalent and

to job 6,5% creation of GDP, or wastes or 16,5% taxpayers’ of the total time wage and bill

money.

• anything obsolete, redundant, in 2003 (Small Business wasteful Project or (SBP) confusing

2005).

that diminishes the competitiveness Red Red tape tape interferes is defined with: of as: the

• • the non-essential ability of businesses procedures, to forms, compete licences,

province, which stands

in

in

a and global

the regulations way

marketplace

of that economic

add as a to result the cost of of

unnecessary dealing with costs government; and/or delays; or

• • the anything rate of obsolete, establishment redundant, of wasteful new

growth and job creation businesses; or wastes and taxpayers’ time

or confusing that diminishes the

• the competitiveness sustainability and/or of growth the province, of existing which

and money.

enterprises. stands in the way of economic growth and

remove bureaucratic blockages to make it

Red tape interferes with: easier and Red more tape cost-effective interferes with: to do business

• the ability of businesses to compete

• the ability of businesses in to a compete global marketplace in a as global a result of

unnecessary costs and/or delays;

• the rate of establishment of new

marketplace as a result of unnecessary costs

businesses; and

• the sustainability and/or growth of existing

and/or delays;

enterprises.

The Red Tape Reduction Unit was established

• the rate of establishment of new businesses; and

by DEDAT in 2011. Its main objective was to

remove bureaucratic blockages to make it

• the sustainability and/or easier growth and more of cost-effective existing to enterprises.

do business

Western Cape. The Unit follows a twopronged approach in

tackling bottlenecks in the business environment:

• reactive through its response to cases lodged to

the unit; and

• proactive, which seeks to identify legislation and

processes that represent barriers to business or

efficiency in government, and designing

interventions that cut across an entire industry sector

or several processes.

Red Tape

Reduction

Unit

Red Tape

Reduction

Unit

in the Western Cape. The Unit follows a twopronged

approach in tackling bottlenecks in the

business environment:

• reactive through its response to cases

lodged to the unit; and

• proactive, which seeks to identify

legislation and processes that represent

barriers to business or efficiency in

government, and designing interventions

that cut across an entire industry sector or

several processes.

The in outcome the Western of the Cape. interventions The Unit must follows impact a twopronged

the cost approach of doing in tackling business bottlenecks in terms of in the

on

reducing either time, costs or complexity.

to 6,5% The Red of GDP, Tape or Reduction 16,5% of the Unit total makes wage it bill easier business environment:

To date the unit has dealt with almost 8,000

in 2003 for businesses (Small Business to thrive Project in the (SBP) Western 2005). Cape, by • reactive through its response to cases

business and red tape related matters. It

growing our economy and creating more jobs. lodged to the unit; and

maintains • proactive, a resolution which rate in excess seeks of to its 85% identify

target. legislation and processes that represent

barriers to business or efficiency in

The WCG government, made and Regulatory designing interventions

Impact

Assessments that cut (RIAs) across standard entire practice industry for sector new or

policy and several legislation. processes. Cabinet has approved it

as a mandatory requirement for all significant

legislation The outcome and policies. of the interventions We are the must first and impact

only on province the cost to elevate of doing RIA business to this level. in terms of

The reducing Red Tape either Reduction time, costs Unit or has complexity. partnered

with To sister date departments the unit has to dealt improve with almost businessfacing

business processes. and red This tape benefits related business matters. It

8,000

process maintains improvement a resolution (BPI) rate projects, in excess such of its as 85%

the target. Department of Transport and Public Works

(tourism signage and abnormal load permit

applications) The WCG and Agriculture made Regulatory (export related Impact

processes, Assessments permit (RIAs) applications standard and practice auditing). for new

Several policy BPI and project legislation. possibilities Cabinet with has national approved it

departments as a mandatory are being requirement explored as for well. all significant

The legislation potential for and making policies. it easier, We are cheaper the first and and

faster only to province do business to elevate in the RIA province to this is level. huge,

considering The Red the Tape many Reduction approvals, Unit licences has partnered and

job creation or wastes taxpayers’ time and authorisations that businesses need to operate.

The Red money. Tape Reduction Unit was established with sister departments to improve businessfacing

processes. This benefits business

by DEDAT in 2011. Its main objective was to

For

process

more information

improvement

on the

(BPI)

Red Tape

projects,

Reduction

such as

Unit

the

please

Department

visit https://www.westerncape.gov.

of Transport and Public Works

za/red-tape-reduction/

(tourism signage and abnormal load permit

applications) and Agriculture (export related

processes, permit applications and auditing).

Several BPI project possibilities with national

departments are being explored as well.

The potential for making it easier, cheaper and

faster to do business in the province is huge,

considering the many approvals, licences and

authorisations that businesses need to operate.

The outcome of the interventions must impact on the cost

of doing business in terms of reducing either time, costs

or complexity. To date the unit has dealt with almost 8,000

business and red tape related matters. It maintains a resolution

rate in excess of its 85% target.

The WCG made Regulatory Impact Assessments (RIAs)

standard practice for new policy and legislation. Cabinet has

approved it as a mandatory requirement for all significant

legislation and policies. We are the first and only province

to elevate RIA to this level. The Red Tape Reduction Unit has

partnered with sister departments to improve businessfacing

processes. This benefits business process improvement

(BPI) projects, such as the Department of Transport and

Public Works (tourism signage and abnormal load permit

applications) and Agriculture (export related processes, permit

applications and auditing). Several BPI project possibilities with

national departments are being explored as well.

The potential for making it easier, cheaper and faster to

do business in the province is huge, considering the many

approvals, licences and authorisations that businesses need

to operate.

For more information on the Red Tape Reduction

Unit please visit https://www.westerncape.gov.

za/red-tape-reduction/

The Red Tape Reduction Unit was established by DEDAT in

2011. Its main objective was to remove bureaucratic blockages

to make it easier and more cost-effective to do business in the

For more information on the Red Tape Reduction

Unit please visit https://www.westerncape.gov.

za/red-tape-reduction/

WESTERN CAPE BUSINESS 2020

20


DEDAT expands Global Entrepreneurship Week

to Western Cape Entrepreneurship Month

The future of youth entrepreneurship in the Western Cape is

bright indeed. As part of Global Entrepreneurship Week, which

hosts thousands of events caterering to millions of people, the

Department of Economic Development and Tourism has held a

series of workshops at Youth Cafés, which focused on ideation, fundraising,

and social media optimisation. The aim was to encourage youths in

smaller towns to start their own businesses and to promote entrepreneurship

as a skill.

The week was dedicated to targeting young start-ups in townships

and rural areas. The initiative diverged from the usual practice of having

“suits-and-ties” teaching business advice to a generic audience. Talks were

conducted by experts and business owners who understand “millennial

culture”. The power of the workshops rested on the use of minimal

technical jargon, colourful, easy-to-follow presentations, and concrete,

usable business tips. Participants received tangible help in creating

their business plans, checking idea feasibility, and understanding the

importance of digital skills and having an online presence in the modern

age of business.

Long-term support

A single visit is unlikely to make a lasting impact on the current

youth situation, where work prospects are limited. After engaging

with management at the Youth Cafés, the Department of Economic

Development and Tourism is looking into options for longer-term

support, whereby contact is maintained and visits occur more frequently.

A key goal is to move rural economies into the mainstream economy

through targeted government support and assistance which creates

an enabling environment for

businesses to thrive.

While such interventions

only scratch the surface of the

problem, they do provide an

excellent basis for gauging the

demands and challenges faced

by the locals. Thus, November’s

events involved a range of

activities, from workshops with

young start-ups, to recognising

the cream of the entrepreneurial

crop at the Western Cape

Entrepreneurship Expo, Summit

and Awards.

Youth and start-ups are very

much interlinked so more startups

need to be equipped with

the skills to build SMEs. These

workshops include themes

such as business ideation, to

maximising “likes” through

developing a social media plan.

We would like you to

join the conversation around

entrepreneurship, tackling red

tape, and supporting the growth

of the Western Cape economy.

21 WESTERN CAPE BUSINESS 2020


Commercial saved by cutting star’s red tape

Nigerian model Jemima is the star in a well-known

soap brand’s commercial. The R2-million commercial

and 75 jobs were on the line when she couldn’t get

a visa for three weeks because the South African

mission in Nigeria was having technical difficulties

with essential equipment. Without a visa, it looked

like South Africa and the Western Cape economy

would lose the shoot to India.

Through the interventions by the Red Tape

Reduction Unit (RTRU), with assistance from Home

Affairs, the unit convinced authorities to allow

Jemima to fly to Ghana, to apply for a visa there,

because the South African High Commission in

Lagos was closed in the run-up to elections (which

were postponed).

The result was that the shoot and the 75 people

who were working, could continue per schedule, by

ensuring that the actress would be able to make it

in time for the location shoot.

Karoo reality show saved, by “cutting” the wait

In 2018, Getaway Productions, a local film company, managed the

production of a UK film “Carnage”, shot on a private farm in the

Western Cape Tankwa Karoo. The film was paid for from the UK –

a cost of R74m. It emerged, contrary to expectations, that filming

on private farms was governed by environmental legislation. This

resulted in production delays. These delays were compounded

when the Department of Environmental Affairs and Development

Planning (DEADP) insisted on a permit. This is typically a 109-day

process which put the production in jeopardy.

The RTRU intervened and was able to arrange a meeting with

the DEADP within a week. The legislative conditions were explained

to the production team and a more suitable location on the farm

was found. This new location complied with both the necessary

legislative and production requirements. The location was set up

and shooting was finished within the stipulated time schedules.

The direct benefit was an injection of R74-million into the

provincial economy, with extensive secondary economic benefits

for local businesses providing catering, accommodation, fuel and

other services, such as maintenance and security. This while securing

the reputation of the Western Cape as an attractive proposition for

international filming.

WESTERN CAPE BUSINESS 2020

22


Municipal Economic Support eases building plan

approvals for local businesses

The Municipal Economic Support Unit, in

partnership with the Drakenstein Municipality,

implemented the Collaborator Extension Project

which involved the design and development of

a Building Control Portal that allows clients to

submit building plan applications online. This,

along with technical process enhancements to

current municipal electronic systems, aims to

efficiently support the building control function and

streamline processes and approvals.

A benefit of the project is that local businesses

Managing abattoir waste

Abattoir waste has been

identified through numerous

reports and studies as being

the most problematic foodwaste

type to manage in

the Western Cape due to

its hazardous nature and its

potential impacts on the

environment and human

health. The Guideline on the

Management of Abattoir

Waste in the Western Cape was developed as one

of the recommendations stemming from the Status

Quo study of Abattoir Waste conducted in 2015.

The guideline provides various role-players in

the abattoir sector with the necessary advice to

ensure compliance with the legislation while also

realise savings through reduced red tape costs as a

result of reduction in timeframes of approvals, and

the easing of unnecessary complexity in finalising

building plan applications.

More importantly, the portal will allow applicants

to track their applications and establish where

it is in the approval process at any given time.

This portal has reduced the approval time for

plans from 32 days to 15 days.

The Department of Economic Development

and Tourism has also rolled the portal out to

municipalities along the West Coast including

Matzikama, Saldanha Bay, Bergriver and Cedarberg.

Lauren Waring, The Executive Director:

Planning and Development at Drakenstein

Municipality, indicated that the partnership with

the Department of Economic Development and

Tourism was a valuable one, and that the new

system significantly boosted staff morale. “It was

also interesting seeing the rise in the number of

compliments by satisfied applicants that the unit

started receiving,” said Lauren.

providing the various

options available for

management that

ensures the protection

of the environment and

human health.

The guideline

also explores the

possibility of regional

cooperation among

role-players as an

option in resolving some of the challenges

experienced in the sector. The mini-guide is a

collaboration between the Red Tape Reduction

Unit and the Waste Management Directorate of

the Department of Environmental Affairs and

Development Planning.

23 WESTERN CAPE BUSINESS 2020


WESTERN CAPE BUSINESS 2020

24


25 WESTERN CAPE BUSINESS 2020


The Western Cape economy

in statistics

Tourism statistics (2018)

Western Cape share of international tourist arrivals: 1.7-million (16.2% of SA)

• Total foreign direct spend in Western Cape: R16.3-million (19.8% of SA spend)

• Bed nights: 23.3-million (19.7% of SA bed nights)

• Length of stay: 12.9 nights (most in SA)

Top 10 tourism source markets (2018)

1. United Kingdom

2. Germany

3. United States

4. Namibia

5. France

6. Netherlands

7. China

8. Australia

9. Brazil

10. Italy

Western Cape export markets

Largest markets for Western Cape exports

Africa: $3.3-billion

EU: $2.4-billion

SACU: $1.8-billion

SADC: $973-million

Western Cape export markets – Africa

Exports to Africa

2015 $3.45-billion

2016 $3.19-billion

2017 $3.36-billion

Imports from Africa

2015 $2.76-billion

2016 $2.49-billion

2017 $2.79-billion

Exports to Africa by value (2017)

Refined petroleum oil: $558-million

Flat rolled iron:

$185-million

Tobacco:

$122-million

Fruit and vegetable juices: $105-million

Apples, pears and quinces: $96-million

WESTERN CAPE BUSINESS 2020

26


gion

stern Cape Trade & Investment into Africa

18

Imports from Africa by value (2017)

1. Introduction to Trade

Crude petroleum: $1.9-billion

Frozen fish:

$69-million

he Western Cape exported USD9.33bn worth Shirts: of goods and imported $67-million

USD13.9bn worth of goods in 2017. The

rade deficit is mainly due to the large import Malt of petroleum beer: products, that $59-million

when excluded from imports and exports

everse to a trade surplus. The strategic location Men’s of the clothing: Western Cape, being $54-million home to three important South African

orts makes it the second largest province in terms of total trade after Gauteng. The Western Cape’s total share

f South African exports was 10.46% in 2017.

Top African destinations for Western Cape exports (2017)

he Western Cape has advantageous access Namibia: to world markets through $864-million

preferential trade agreements between

outh Africa and other major markets such as Botswana: Europe and the United States. $518-million South Africa is also a member of the

outhern Africa Development Community (SADC), Kenya: the Trade Development $225-million and Cooperation Agreement (TDCA)

nd the Southern African Customs Union (SACU) Zambia: among other agreements. $210-million The international trade regime has

ertainly seen some reorganisation of late. Lesotho: To the North, Brexit has cast $193-million widespread uncertainty across almost

very aspect of cross-border trade and investment involving the UK. To the West, global supply chains have been

nsettled by the renegotiation of NAFTA (now Top the African USMCA) sources and US tariffs for on Western steel and Cape aluminium. imports To the East, (2017)

hina’s escalating trade war with America will Angola: have far-reaching economic $1-billion repercussions.

Nigeria:

$678-million

he potential showstopper, however, is happening Namibia: right here on the doorstep $204-million of the Western Cape, with the signing

f the African Continental Free Trade Area (AfCFTA) Swaziland: Agreement earlier $186-million

in 2018. The AfCFTA aims to establish a

ree trade area spanning the 55 Member States Equatorial of the African Guinea: Union (AU). $88-million It was launched in March 2018 and has

een signed by 49 countries. The AfCFTA includes undertakings by Member States to progressively eliminate

ariffs and non-tariff barriers to trade in goods Western and liberalise Cape trade share in services; of agricultural cooperate on investment, products intellectual imported by

roperty rights, competition policy, customs the matters, rest and of to Africa establish (2017) a dispute settlement system.

Fruit and vegetable juices: 20.4%

he AfCFTA is aspirational by nature; it is Fresh a framework apples, agreement pears and that quinces: will systematically 6% be implemented by

uilding upon existing Regional Economic Wine: Communities (RECs) and preferential 20.7% trade arrangements. The

greement establishes an agenda by which Other further fermented technical alignment beverages: and trade liberalisation 49% will take place. The

greement enters into force once ratified by Citrus 22 countries. fruit: Although South Africa 26.6% is likely to ratify the AfCFTA by

he end of 2018, most of the details are only set to be negotiated over the coming years. Once in force and ratified

he Agreement will become legally binding for South Africa.

Wesgro is the Official Tourism, Trade & Investment Promotion

uccessful implementation of this agreement holds the potential to change the face of intra-African trade and

acilitate enormous investment into the Continent. The AfCFTA will cover a market of 1.2 billion people, projected

o reach 2.5 billion Agency by 2050, and for a Cape combined Town gross domestic and product the Western (GDP) of more Cape. than USD3.4 trillion. The

conomy of Africa

www.

as a whole

wesgro.co.za

is the second fastest growing region in the world however intra-Africa trade remains

ow (Afdb, 2017). In 2016 intra-Africa trade constituted only 18% of Africa’s total trade with the globe (Tralac, 2018).

he United Nations Economic Commission for Africa therefore estimates that the AfCFTA has the potential to

27 WESTERN CAPE BUSINESS 2020

oost intra-Africa trade by 52% by eliminating tariffs. They also predict that the figure would double through the

limination of non-tariff barriers.


INTERVIEW

Geoff Jacobs, President

Biography

After a successful career in

teaching, Geoff joined the corporate

sector, eventually retiring

in 2015 as HR Director of

Maersk South Africa. Geoff runs

his own management consultancy

and serves on the boards

of Dinaledi Educational Coaching,

School Turnaround Foundation

and St James Church,

Kenilworth. Geoff has BA and

BEd degrees from UCT, a BA

(Hons) degree from UNISA, an

MA from the University of Wisconsin,

and an MBA from UCT’s

Graduate School of Business.

Networking and

learning from best

practice are key for

Cape businesses

Geoff Jacobs, the President of the Cape Chamber of

Commerce and Industry, supports efforts to reduce

red tape for business.

What is the history of the Chamber?

The Cape Chamber of Commerce and Industry traces its history

back through its predecessor the Commercial Exchange of Cape

Town to the founding in 1804 of the Kamer van Commercie by

Governor de Mist, the Batavian Government’s representative.

By 1860 business in the Cape had grown to such an extent

that modern business services were in demand. As a result, the

Commercial Exchange was established and merged with a new

body in 1861 called the Chamber of Commerce. In 1891, the Cape

Chamber of Commerce was incorporated by an Act of Parliament.

In recent years, the Cape Chamber has been expanded to become

the Cape Chamber of Commerce and Industry.

What is your strategy and how do you express it?

The strategy of the Chamber is a single word: engagement. The

more we create opportunities for our member organisations to

engage one another, the more value is created for members. This

includes more than 200 events per annum, ranging from training

programmes linked to business effectiveness and efficiency, to

engaging local, provincial and national government officials on

strategies to turn the economy around.

The tagline of the Chamber is: Where Opportunity Meets. We

work hard to remain abreast of the key challenges in our region,

and through our portfolio committees to give input into legislative

changes. Through our Chapters, our footprint extends across

the Western Cape, addressing local issues. The biggest need for

business is the need for networking and learning from best practice

and the Chamber facilitates this at every event that it hosts.

What are some of the challenges that businesses face in the region?

In a recent survey of its 2 100 member organisations, respondents

gave clear responses. Firstly, over-regulation/bureaucracy: the

plethora of legislative requirements for businesses is an obstacle

WESTERN CAPE BUSINESS 2020

28


INTERVIEW

challenge the powers that

be on the crisis facing our

business ecosystem.

to doing business. Less red tape and a more business-friendly

environment encourages innovation and enterprise. In the

Western Cape, we’ve already seen the benefits of the Premier’s

Red Tape Reduction Unit, which we acknowledge as a step in the

right direction.

A second issue can be grouped under a broad category –

national infrastructure challenges – electricity supply and rail

commuter infrastructure, specifically. The failure of Eskom to

guarantee consistent energy supply carries massive risks for

businesses. The Chamber is in full support of the local and provincial

government’s efforts to effect a shift to renewable energy and

to promote investment in Independent Power Producers (IPPs).

Similarly, the Metrorail crisis has put thousands more vehicles on

the roads during peak commuting hours, creating serious traffic

congestion. This has a direct bottom line impact on business.

Problems are not show-stoppers but challenges to be confronted,

and the Chamber supports local and provincial government

structures working to address these challenges.

A third challenge is that relating to late payment to small

business suppliers. The Cape Chamber will continue to lobby for

this issue to be resolved at government level, as this benefits the

entire economic eco-system.

What makes the Western Cape unique is that its provincial

government is alive to these challenges and understands that it

is not government’s role to create jobs, but to create an investorfriendly

and business-friendly environment, so that business can

get on with the job of creating jobs.

Has the Chamber as a business also been affected?

The Chamber has not been immune to the challenges outlined

above. We have introduced a flexible working arrangement to

avoid the congestion. Similarly, the effects of crime and violence

have been experienced by many of our employees. The fact

that we experience the same challenges as our members gives

us the credibility to speak with greater conviction when we

How do you provide value to

your members?

When it comes to a voluntary

membership organisation

such as ours, value is a key

determinant of acquisition and

retention. Although our role as

the voice of business for the

region is the foundation of the

Chamber’s raison d’être, this

is an intangible benefit that

must be supported by valueadds

that have value and are

contemporary. We have an

extensive list of benefits for

our members that is often

updated on our website, as it

is changing constantly to keep

pace with changing needs.

How do you see the future of

Chambers of Commerce?

At the moment there is a

social gap that technology

is unable to fill. However,

history has taught us never to

underestimate its capability.

Although we see digital as a

key component of our future,

the most strategic tool in our

arsenal is the appetite for

innovation that the Chamber

has. The cost of testing

new concepts has dropped

dramatically with the Internet

and I hope we set the bar for

business when it comes to

embracing changing needs.

Sometimes you win and

sometimes you learn. But to

stand still is not an option. ■

www.capechamber.co.za

29 WESTERN CAPE BUSINESS 2020


WECBOF fosters

entrepreneurship

in the Western Cape

The Western Cape Business Opportunities Forum (WECBOF) celebrates its 24th year as one of the

Western Cape’s longest-standing business associations. During its lifespan WECBOF has supported many

entrepreneurs in moving from their start-up phase to becoming very successful organisations with many

of these still operating, and contributing meaningfully to the economy.

WECBOF has

had to adapt and

keep pace with

an ever-changing

economic, commercial,

technological,

political

and socio-economic

environment.

The organisation

today

has as its central

Arifa Parkar, CEO

focus the sustainable

growth and

development of a

community of young, successful entrepreneurs

who will be able to lead businesses which will

contribute in a positive way to growing and prospering

our economy and creating much-needed

jobs in our communities. Support to young entrepreneurs,

through its 10x Growth Programme,

comes in the form of:

• Access to financial and other business

support services

• The identification of, and assistance with entry

into, lucrative markets for entrepreneurs’ products

and services.

Contact us today if you wish to sign up as a member.

Our member packages are affordable, and

are tiered from the more established corporate

business to the new start-up.

CONTACT INFO

Physical address:

3 Irene Street, Bellville 7530

Postal address:

PO Box 707, Kasselsvlei 7533

Tel: +27 21 946 2519

Email addresses

General enquiries: office@wecbof.co.za

CEO: arifa@wecbof.co.za

Website: https://wecbof.co.za/

Facebook:

https://www.facebook.com/wecbof/

Twitter: @wecbof

WESTERN CAPE BUSINESS 2020

30


WECBOF

makes it happen!

The Western Cape Business

Opportunities Forum (WECBOF)

provides a platform for businesses

to establish and maintain contact with

fellow entrepreneurs; to have access to

opportunities, information and training;

and to have representation on a number

of relevant forums of government and

other associations focussed on growing

and enhancing the commercial sector,

with a specific focus on small, medium,

and micro enterprises (SMMEs).

WECBOF is widely recognised and

respected as a powerful voice for

business in the Western Cape; we are a

provincial service organisation with our

focus and attention firmly on the national

and international business pulse.

CALL US TODAY.

+27 21 946 2519

office@wecbof.co.za www.wecbof.co.za

A powerful voice for business.

31 WESTERN CAPE BUSINESS 2020

www.facebook.com/wecbof/

Where entrepreneurs excel.

@wecbof


DISCOVER BELLVILLE

Bellville has played an instrumental role in the City of Cape Town’s

success story ever since it was established in 1860. Today, it is a vibrant,

busy urban centre where people live, work and play every day.

It’s a proven commercial engine that services businesses from multinational

corporates to small- and medium-sized enterprises. It’s a centre

of academic excellence and a medical hub. It’s home to Cape Town’s

busiest public transport interchange. It’s culturally and socially diverse.

It has a well-established existing infrastructure, including multiple fast

fibre broadband networks. It’s also the place where some of South

Africa’s leading musicians, artists and creative personalities launched

their careers.

This is Bellville. A place of potential, a place

of opportunity. And it’s ripe for development.

WESTERN CAPE BUSINESS 2020

32


Over 4000

small- and medium enterprises

400 000 daily commuter trips

through Cape Town’s busiest

transport interchange

Multiple existing,

fast fibre broadband networks

6 of the largest

corporate headquarters

9 major

educational institutions

1 GREAT Opportunity

3 major

shopping

centres

100 000 students

More

hospital beds

than any other centre

Arts, crafts

+ music

250+ Medical Practitioners

The Greater Tygerberg Partnership is working to create a new reality for the

city that plays such an important role in Cape Town’s broader success.

We invite you to come and discover Bellville. Find out about the development

opportunities. Explore what already exists here and its potential to be so

much more.

Find out more. Get involved. Discover Bellville.

Email info@gtp.org.za. Visit gtp.org.za. Call +27 (0)21 823 6713

Bell Park Building Unit 3A Corner of De Lange Street & Durban Rd

Bellville, 7535, South Africa

33 WESTERN CAPE BUSINESS 2020


SPECIAL FEATURE

Water solutions are available

The De Rust WaterWise Ways project is showing the way.

A

pilot project in the small rural town of De Rust has shown

that a constructed wetland system and wastewater reuse

can improve the health of a catchment system and convert

wastewater into a useful resource.

The WaterWise Ways Project of the Gouritz Cluster Biosphere

Reserve (GCBR) has several components, but the De Rust Wetlands

project (pictured) is the most ambitious. The project has proved that

a constructed wetland can “scrub” municipal sewage water, reduce

polluted run-off in a catchment area and convert wastewater into

a useful resource. The wetland and its adjoining tree nursery are

maintained through the project, with the Oudtshoorn Municipality

assisting with water testing.

The GCBR is a voluntary citizens’ initiative dedicated to conservation

and socio-economic development. The Gouritz Cluster Biosphere

Reserve is officially designated by UNESCO and is South Africa’s largest

biosphere reserve. Other parts of the WaterWise Ways project include a

“Township war on leaks” and a system of community monitors working

in the nearby town of Dysselsdorp.

The small river that feeds the De Rust wetland runs off the

Swartberg Mountains and feeds into the Olifants River.

The Breede-Gouritz Catchment Management Agency (BGCMA)

is one of nine regional bodies which protects, develops, conserves,

manages and controls water resources across South Africa. It is

responsible for the catchment

area of the Gouritz River and its

major tributaries (the Gamka,

Groot and Olifants) as well as

the catchments of the smaller

coastal rivers, the Breede River,

which discharges into the Indian

Ocean, and the catchments of

the smaller coastal rivers such as

the Palmiet and Bot rivers. The

Breede River’s main tributary is

the Riviersonderend River.

The BGCMA oversees the

certification of water usage

through Water Use Validation and

Verification certificates. The body

has recently had to play a role in

drought mitigation measures,

particularly in the dry interior.

In 2030 South African

demand for water will be

17% greater than supply.

That is the verdict of the 2030

WESTERN CAPE BUSINESS 2020

34


SPECIAL FEATURE

Water Resources Group. The

Water Resources Group, an

international consortium of

private companies, agencies

and development banks, has

established a South African

chapter, the Strategic Water

Partners Network.

The Berg River-Voëlvlei

Augmentation Scheme, finally

approved at national level in

November 2019, will pump

water out of the Berg River in

winter, having first allowed for

enough water to cover the

ecological water requirements of

the river and the estuary.

A Water Stewardship

programme has been

introduced in the Breede River

catchment area. WWF-South

Africa, Woolworths and Marks &

Spencer are collaborating on a

scheme encouraging stone fruit

farmers to put in place systems

that reduce risk to water supply

and quality.

WWF-SA’s also has a Water

Balance Programme which

works to increase the amount

of clean water coming into

the environment. Woolworths’

contribution to this plan involves

getting rid of alien vegetation

on the farm where it sources its

wines (Paul Cluver Wines) and in

the Leeu River catchment area.

The introduction by the

National Department of

Water and Sanitation (DWS)

and the Water Institute of

South Africa (WISA) of the Blue

and Green Drop Awards has

been successful. The nation’s

municipalities receive scores

reflecting how well they are

doing in terms of providing

clean water.

In order to win a Drop Award (Blue for water quality, Green for

waste treatment), water systems have to score 95% or higher. The

DWS has allocated R4.3-billion to helping municipalities deliver

water. The Interim Water Supply Programme concentrates on 23

district municipalities.

Although the Western Cape’s municipalities are among the

country’s best in terms of providing and maintaining infrastructure,

Overstrand Local Municipality has outsourced the management of its

water and wastewater infrastructure. In 2019 the municipality, which

is headquarted in the coastal town of Hermanus, signed a 15-year

contract with Veolia Water Solutions & Technologies South Africa to

look after its six wastewater treatment plants and nine water facilities.

Other infrastructure includes 44 reservoirs, 123km of pipelines and 55

water and wastewater pump stations.

Climate adaptation

The Western Cape Provincial Government has introduced a Smart Agri

plan to coordinate efforts to tackle the effects of climate change on

agriculture. Developed by two provincial departments (Agriculture and

Environmental Affairs and Development Planning), the African Climate

and Development Initiative of the University of Cape Town and several

private sector participants, SmartAgri has six priorities:

• Conservation agriculture: minimal soil disturbance, crop diversity

and permanent soil cover. Wheat yields have increased because of

the programme.

• Restoring degraded landscapes.

• Improved catchment area management, including removing

alien plants.

• Energy efficiency.

• Giving priority to climate-resistant crops and livestock.

• Sharing knowledge.

The wall of the Clanwilliam Dam is to be raised, doubling the

capacity of the dam and bringing an additional 5 000ha of land under

irrigation. After a lengthy delay, the project is now expected to be

completed in 2023. The 13-metre addition will cost R2.5-billion and

could support high-value crops for export such as citrus and table

grapes. The land could also form part of the land reform programme.

The Western Cape Provincial Government has given the national

government notice with respect to another wall-raising project that

has stalled. If the feeder canal of the Brandvlei Dam were to be raised

by just 30cm, it would significantly increase the dam’s storage capacity

and improve the prospects of farmers in the area.

When the long-term drought was at its worst, tourists to Cape

Town were encouraged to “Save like a Local”. Together with a range of

technical and legislative measures, the campaign to get Capetonians

and their guests to use less water worked remarkably well.

Where the residents and businesses of the city were using

35 WESTERN CAPE BUSINESS 2020


SPECIAL FEATURE

Community members at work on the WaterWise Ways project. Image: Gouritz Cluster Biosphere Reserve.

1.2-billion litres-per-day in 2015, by the middle of 2018 the figure

was 516-million litres. While the taps were not literally turned off

(the dreaded “Day Zero” was averted), pressure in the pipes was

drastically reduced. The International Water Association’s Water Loss

Conference in Cape Town in May 2018 reported that two of the

world’s largest advanced pressure control systems are operating in

Cape Town.

Restrictions on water use were introduced (car washing was

outlawed completely, for example) and shopping centres introduced

waterless sanitation. Cape Town’s hinterland thankfully experienced

good winter rains but the town of Beaufort West in the Karoo continues

to face a real crisis.

In 2017 Cape Town hosted Water Desalination Symposium Africa,

further evidence that relying on rain to ensure reliable supply in the

future is not being contemplated.

Old Mutual’s large campus in Cape Town is off the water grid. Since

2018, a waste-water filtration plant has been harvesting 650 cubic

litres of drinkable water for staff members on the Pinelands site. It is

estimated that the City of Cape Town will be able to save up to 15 000kl

of water in the course of a month by not having to provide water for

the 9 000 people who populate the campus.

The Western Cape Department of Economic Development and

Tourism (DEDAT) announced that investment into the Green Economy

reached R1.2-billion in 2017/18. DEDAT also works on long-term water

resilience with various stakeholders through an “Economic Water

Security Workstream”.

Other steps to secure future water supply include the

expenditure of R5.9-billion

over five years by the City of

Cape Town on desalination

projects, aquifer extraction

and water reuse. The National

Department of Water and

Sanitation is supposed to be

responsible for bulk water

supply, but the local authority

has had to step in.

To find the money to deal

with the drought and the longerterm

effects of climate change,

the City of Cape Town issued a

green bond for the first time in

2017. It was over-subscribed and

allowed the city to get started

on implementing its Climate

Change Strategy.

Some of the long-term

projects falling under the

strategy include new electric

buses, energy efficiency

measures in city buildings,

improved sewerage plants and

the rehabilitation and protection

of coastal structures. ■

WESTERN CAPE BUSINESS 2020

36


Breede-Gouritz Catchment

Management Agency

Rethinking water usage and stormwater management.

South Africa has always been a water-scarce country, but

recent events have focused the minds of all citizens to the

pressing need to preserve water resources and to use water

more intelligently.

One response at national level was to create nine Catchment

Management Agencies. The Breede-Gouritz Catchment Management

Agency (BGCMA) is the southernmost of the catchment agencies

and falls mostly in the Western Cape. BGCMA offices are located in

Worcester and George which enable the agency to assist local

authorities, other water authorities and local communities.

Change is needed

Among the steps that South Africa needs to take are changing

the pattern of water usage, conserving water where groundwater

recharges are feasible and focusing on capturing and storing

stormwater in urban areas. This is according to the BGCMA’s Acting

Water Use Manager and Geohydrologist, John Sibanyoni. John also

suggests that municipal budgets “have at least a hydrogeologist and

an engineer for water supply”.

John, who has an MSc Geohydrology from the University of the

Free State and is a Certified Professional Natural Scientist with the

South African Council for Natural Scientific Professions (SACNASP),

Contact Details

Address: 101 York Street, Dormehis Drift, George 6530

Enquiries: John Sibanyoni

Tel: +27 23 346 8000 • Fax: +27 23 347 2012

Email: jsibanyoni@bgcma.co.za

Website: www.breedegouritzcma.co.za

believes that the country and its

citizens really need to focus or

engage in interventions such as

those outlined above.

The drought afflicting the

Karoo region is the result of a

combination of factors, not limited

to climate change and the lack of

specialist skills in municipalities.

The reliance on surface water as

the sole supply of water is a key

reason for the current situation,

according to John.

Dams in the Breede water

management area have done

relatively better than the Gouritz

area, under which the Karoo falls.

Catchment agencies are not

responsible for the disbursement

of funds but the BGCMA has been

involved in various drought relief

initiatives. BGCMA is participating

in technical planning for new

wellfields for water supply in

local municipalities such as

Beaufort West.

Other activities that the

BGCMA provides as assistance to

local authorities include:

• Water scarcity and usage

awareness campaigns

• Fast-track the finalisation of

licence applications

• Media tour participation.

Another important function of

the BGCMA is to issue licences

for water use, ranging from

existing use permits to high-level

commercial usage licences. ■

37 WESTERN CAPE BUSINESS 2020


ADVERTORIAL

see money differently

NEDBANK’SINNOVATION

JOURNEYTAKESCLIENTS

INTOTHE21STCENTURY

DrFayzelOmar

Provincial General Manager

Nedbank Business Banking, Western Cape

Taking into consideration the everevolving

nature of the banking

industry, Nedbank Provincial General

Manager of the Western Cape, Dr Fayzel

Omar, is confident his PhD in Business

Administration will empower him with the

knowledge he requires to keep abreast of

the latest developments in the banking

sector.

Omar is passionate about his vision for

Western Cape business owners and

entrepreneurs seeking a unique banking

experience and explains how Nedbank will

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vast geography of the Western Cape his

distribution cuts across eight regions, each

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supported by functional teams and product

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channels of Business Banking, Small

Business,RetailandPersonalBanking.

Nedbank’s decentralised Business Banking

Cluster has 70 business managers located

across the province. They specialise in

commercial industries and the agricultural

sector to support all sectors of the

Western Cape economy.


Working with communities

is entrenched in our

values through community

development, skills

development, education

and job creation …


‘At Nedbank Business Banking we believe

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only understands your circumstances and

aspirations, but also provides you with

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concentrate on what’s most important to

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As your bank, we understand business

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… we understand business banking, and

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this the insights and expertise available to

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you have a banking partner who is walking

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'Working with communities is entrenched in

our values through community

development, skills development, education

and job creation, as well as environmental

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building a sustainable economy and vibrant

society. We believe our fast-growing

presence in communities goes a long way in

enabling greater financial inclusion while

contributing towards economic growth,'

says Omar.

And the innovation journey continues,

ensuring greater value for clients. The

NedbankMoneyappallowsclientsto

manageaccounts,makepaymentsand

changetheircreditordebitcardsettings


fromtheirsmartphone. The Money app also

allows clients to make instant payments to

anyone on their smartphone’s contact list,

regardless of whether the recipient is a

Nedbank client.

Nedbank’s payments app,Karri,simplifies

schoolpaymentstohelpteachers,parents

andchildren.TheKarriappmakespayments

to schools for events such as civvies days,

school trips and other fundraising activities

easy and secure, using a built-for-purpose

mobile payment application.

Nedbank’sinteractiveATM–afirstforAfrica

–givesclientsaccesstolivetellerservices

overvideo,atanytime,rightfromthe

machine. ‘This ATM also responds to the

growing trend and need for business and

individual clients to make large deposits

and withdrawals at unconventional

business hours.’

All of which are ways in which Nedbank

continues to simplify and make banking for

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their good.

Should you be interested in taking your

business to its next level and improving

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serviceoffering, please call the Business

Bankingteam on +27(0)214123000 or visit

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ADVERTORIAL

see money differently

SEEMONEYDIFFERENTLY

WITHBIGGER-PICTURE

BUSINESSBANKING

Gerrit Henning, Nedbank Regional Manager of Retail and

Business Banking: Northern Suburbs, explains how Nedbank

works with communities to deliver banking solutions.

Nedbank continues to build on its

client-centred strategy aimed at

delivering distinctive experiences

and channels of choice for businesses in

the region.

This has seen the bank simplify and

enhance its product offering in line with its

value banking philosophy based on

simplicity, transparency and affordability.

Innovationandtechnologicaladvancements,

aswellastraininganddevelopmentofstaff,

havebeenkeypillarsinachievingthebank’s

objectives. At the core of Nedbank’s

offering in the Western Cape is a

relationship-based model, with a business

manager dedicated to your business as the

key entry point into the bank.

Henning has five years’ experience in the

auditing and accounting profession and

eight years’ experience with international

companies. He has fulfilled various

leadership roles in Nedbank, with 14 years

as regional head of Business Banking.

Henning is supported by an area office

with 12 skilled business managers ready to

take your business to the next level.

‘We encourage youtoseemoneydifferently

withthebigger-pictureapproachthat


… see money differently with the

bigger-picture approach that

Business Banking offers …


BusinessBankingoffers,’saysHenning.What

doesthismeanforyou? It is an additional

benefit of banking with 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 Henning.

With this in mind, Nedbank has seamless

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household. Nedbank provides several

communities, including individual and

business clients, with access to products

and services through its Workplace

Banking offering.

To take your business to the next level

please call the BusinessBanking team on

+27(0)219282000 or visit

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ADVERTORIAL

see money differently

USINGOURMONEY

EXPERTISETOHELP

CLIENTS

Randall Bailey, Nedbank Regional Manager of Retail and Business

Banking: Weskus and Swartland, explains how new brand values

built on the bank’s expertise can benefit Nedbank clients.

Bailey’s team operates from regional

offices in Breda Street in Paarl, as

well as from representative offices in

Vredendal, Vredenburg and Malmesbury.

He says the team is ready to assist clients

with professional advice, industry-specific

solutions and a comprehensive range of

financial products and services. His team

is also supported by skilled agricultural

specialists,whoprovidespecialisedadvisory

services to clients.

With more than 20 years' banking

experience, Bailey has been with Nedbank

for just over five years and has worked in a

number of areas, including credit.

He also manages 14 retail branches across

his region, providing clients with unique

financial solutions. ‘It forms part of our

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Bailey.

Nedbank’sgoaltohaveallserviceofferings

and business and consumer products

managed under one regional structure

makes it easier to deliver on its new brand

proposition to see money differently.


… the team is ready to

assist clients with

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comprehensive range

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To take your business to the next level or to

obtain more information about Nedbank’s

specialisedserviceoffering call

RandallBailey on +27(0)214123051, send

an email to RandallB@nedbank.co.zaor

visit www.nedbank.co.za.


ADVERTORIAL

see money differently

ONE-STOPBANKING

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CAPECENTRAL

Karen Seboa, Nedbank Regional Manager of Retail and

Business Banking: Cape Central, shares how partnerships

can benefit Nedbank clients.

Seboa’s team operates from its

regional office at The Clock Tower in

the V&A Waterfront and is ready to

assist clients with professional advice,

industry-specific solutions – including for

the medical profession – and a

comprehensive range of financial products

and services for businesses and individuals

in the Western Cape.

Seboa has been with Nedbank for more

than 20 years and has worked in a number

of roles, including as area manager for the

retail branch network and in Retail

Relationship Banking. She prides herself on

building relationships and understanding

the needs of clients, saying that

partnership- and relationship-based

banking are key drivers of how Nedbank

conducts business to ensure clients benefit

from its money expertise.

‘It forms part of our purpose at Nedbank

to use our financial expertise to do good

for individuals, families, businesses and

society,’ says Seboa.

‘We look forward to continuing our

relationships with our valued existing

clients, and to offering our value


At the core of our offering

in Business Banking is a

relationship-based model,

with a business manager

dedicated to your business

as your key entry point to

the bank.


proposition to new clients as well. At the

core of our offering in Business Banking is a

relationship-based model, with a business

manager dedicated to your business as

your key entry point to the bank.’

To take your business to the next level or to

obtain more information about Nedbank’s

specialisedserviceoffering call

+27(0)214123000, send an email to

KarenSeb@nedbank.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

see money differently

RELATIONSHIPSAND

UNDERSTANDINGCLIENT

NEEDSAREKEY,SAYSEXPERT

Naziem Esack, Regional Manager of Retail and Business

Banking: Winelands, explains how new brand values built on

the bank’s expertise can benefit Nedbank clients.

Esack’s team operates from its offices

in Stellenbosch and is ready to assist

clients with professional advice,

industry-specific solutions and a

comprehensive range of financial products

and services. In addition, his team is

supportedbyskilledagriculturalspecialists,

who provide specialised advisory services.

Esack, as a skilled banker, has been with

Nedbank for eight years and has worked in

a number of roles in his 38-year career in

the banking industry. He was the area

manager of Nedbank Business Banking in

Helderberg and Stellenbosch before he

started in his current role.

He heads a team of retail and business

banking experts with the aim of providing

clients with unique business and financial

solutions.

‘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 hassle-free.

As money experts, we are committed to

doing good, so you can concentrate on


As money experts, we are

committed to doing good,

so you can concentrate on

what’s most important to

you – running your

business.


what’s most important to you – running

your business,’ says Esack.

‘Weencourageyoutoseemoneydifferently

with the bigger-picture approach offered

by Nedbank Business Banking, and to take

advantage of our one-stop banking

service at Winelands region,’ says Esack.

To take your business to the next level or

to obtain more information about

Nedbank’sspecialisedserviceoffering

call +27(0)218086700, send an email to

NaziemE@nedbank.co.za or visit

www.nedbank.co.za.

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

services and registered credit provider (NCRCP16).

SPO5940


WESTERN CAPE BUSINESS 2020

44


KEY SECTORS

Overviews of the main economic

sectors of the Western Cape

Agriculture 46

Wine and grapes 48

Fishing 50

Mining 51

Oil and gas 52

Energy 54

Manufacturing 58

Maritime 60

Construction and property 61

Tourism and events 68

Banking and financial services 70

Development finance and SMME support 71

Education and training 76

Business process outsourcing 84

45 WESTERN CAPE BUSINESS 2020


OVERVIEW

Agriculture

Blueberries are good for job creation.

While the Western Cape has a lower unemployment rate

than most regions, the problem is still acute. Blueberries

may provide part of the answer.

In discussions about what crops to promote, Wandile

Sihlobo of Agbiz believes that South Africa should focus on horticulture,

partly because it is labour-intensive. He gives an example of blueberries,

which need 2.64 workers for every hectare planted. There are signs that

his advice is being followed: gross value rose from R15.8-million in 2008

to R1.25-billion in 2018 with the total area planted expanding four times.

Berries of all sorts thrive between George and Swellendam and

sales of chippers in this area have grown because blueberries have to

be vigorously pruned. This process produces lots of green waste which

many farmers are choosing to process themselves. More than 70% of

the blueberry crop is exported and two-thirds of production occurs in

the Western Cape.

Swellendam, which lies beneath the Langeberg mountains,

produces 90% of the world’s commercially grown youngberries, a

crop of about 600 tons per annum. Youngberries are sensitive and

labour-intensive.

The Agri-Processing Support Programme run by the Western Cape

Department of Economic Development and Tourism (DEDAT) helps

small, medium and micro enterprises (SMMEs) improve their business

Sector Insight

An ostrich merger has

won Competition Tribunal

approval.

processes and get better access

to markets. This is part of the

broader Project Khulisa growth

strategy that sees SMMEs as

key for expanding economic

growth.

New Western Cape Premier

Alan Winde announced in

his first State of the Province

address in 2019 that the

province intends making

agriculture a bigger part of the

educational offering available

to pupils. He announced that

to the traditional focus on

STEM (science, technology,

WESTERN CAPE BUSINESS 2020

46


OVERVIEW

engineering and mathematics),

two As (the Arts and Agriculture)

would be added to create the

concept of STEAMAC.

Nearly 30% of exports come

from agriculture, with food

and beverages contributing

a further 24%. Key sectors in

many of the province’s nonmetro

towns (such as retail and

manufacturing) have a strong

dependence on agriculture and

agri-processing.

The Western Cape Provincial

Government reached its target

of 100 000 new jobs in agriprocessing

in 2016 but the

sector has since been buffeted

by bouts of avian flu and a

once-in-a-generation drought.

The drought in 2015 and

2016 had severe consequences

in Southern Africa. StatsSA noted

the following price increases in

that period: vegetables (12.7%),

bread and cereals (16%), while

nearly 400 000ha less was

planted in the country in 2017

than it was in 2014.

The agricultural sector

has had to make the biggest

adjustments to climate change.

The Provincial Government

introduced a Smart Agri plan to

coordinate efforts to tackle the

effects of climate change on

agriculture.

The sector supports almost

10 000 farms and employs

214 000 people. Farming

carried out on the Western

Cape’s 13-million hectares of

agricultural land comprises

approximately 21% of South

African commercial agriculture.

Seven of the 10 biggest

export earners are either

agricultural products or agriprocessed

goods. These are citrus, wine, apples and pears, grapes, fruit

juice and tobacco.

The province’s climatic regions vary from Mediterranean around

Cape Town and on the coast (where annual rainfall can be 2 000mm at

places) to the drier regions of the inland Karoo districts where annual

rainfall figures can be below 150mm. Just over three-million hectares

of the province is cultivated and 270 000ha are under irrigation.

The Breede River Valley is an especially fertile area for fruit. The

Western Cape specialises in apples, plums, pears and cherries. Peaches

and nectarines can be found in most parts of the province. Raisins are

a speciality of the Vredendal area on the West Coast.

The Sandveld region on the West Coast is known as South Africa’s

Potato Pantry. Citrusdal unsurprisingly does a strong line in citrus and,

with nearby Clanwilliam, is also famous for rooibos and buchu.

Wheat is another of the province’s strong sectors: the Western

Cape’s 310 000ha planted to wheat represents 64% of South Africa’s

crop. Japan is a major destination of the province’s maize production.

In canola, the Western Cape is even more dominant, with 99% of the

nation’s hectares (StatsSA).

Companies

The ostrich processing industry has two major players which merged

in the course of 2019, subject to an agreement not to retrench

any workers for a three-year period, a condition imposed by the

Competition Tribunal. Between them, Klein Karoo International and

Mosstrich have four abattoirs in three provinces and tannery facilities

in Oudtshoorn and Mossel Bay. There are more than 400 registered

ostrich farms in South Africa, the majority of which are in the Western

Cape and the Eastern Cape.

Zeder Investments is the agricultural arm of investment holding

company PSG Group. Zeder controls Capespan, which has a turnover

of R7.6-billion across three divisions: farms, logistics and fruit. Zeder is

also a 39.6% shareholder in Kaap Agri Ltd. Kaap Agri has more than 200

operating points.

Zeder also owns 27.2% of Pioneer Foods which makes and

distributes many big food and drink brands across Southern Africa,

including Weet-Bix, Liqui Fruit, Ceres, Sasko and White Star.

Caledon-based Overberg Agri is an unlisted company with a wide

range of investments in several sectors, including mining, pet food and

industrial fasteners. SSK (Sentraal Suid Ko-operasie) has outlets in the

Overberg and in the Southern Cape as far east as George. ■

Online Resources

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

National Ostrich Processors of South Africa: www.nopsa.com

Western Cape Department of Agriculture: www.elsenburg.com

47 WESTERN CAPE BUSINESS 2020


OVERVIEW

Wine and grapes

Wine exports to China are up 109%.

There was less wine in 2019, but what wine there was was

of a better quality and attracted better prices. A prolonged

drought and variable weather conditions led to two seasons

of reduced wine grape harvests, but Vinpro reports that exports

earned just over R9-billion in 2018, an 11% increase in value

despite a 6% decrease in volume.

This fits in with a trend whereby South African winemakers are

aiming for better quality instead of greater volumes. Which is not to

say that volume is being ignored. Wine exports to Angola and China

have doubled. In the four years to 2017, wine exports to China reached

18.2-million litres, an increase of 109%. Wesgro and WOSA (Wines of

South Africa) are cooperating on the Chinese market. In May 2018, they

hosted a wine tasting and pairing event in Shenzhen.

South Africa is the eighth-biggest wine producer globally and

produces about 4% of the world’s wine. The wine industry contributes

R36-billion to the country’s gross domestic product (GDP) and employs

nearly 290 000 people.

Vinpro is the wine industry organisation which represents 2 500

South African wine grape producers, wineries and wine-related

businesses. There are over 3 500 wine producers in South Africa, with

the large majority located in the Western Cape.

Wine is produced by estates, independent cellars and producer

cellars or co-operatives. The Distell group runs five distilleries and

seven wineries in the Western Cape and produces about a third of the

country’s natural and sparkling wine.

Wine tourism in the Western Cape grew 16% in the year to 2017,

according to a study done by Wesgro and Explore Sideways. The

study, which surveyed 40 tour operators responsible for 19 000 trips,

also found that 99% of Cape Town-based itineraries include a trip to

the Winelands.

A Vinpro report shows that wine tourism contributes R15-billion to

the local economy. Local wine sales bring in R13.2-billion. Excise and

other taxes paid by the wine industry amounted to R6.7-billion in 2017,

up by 8% from the previous year, according to Koos Nel of Old Mutual

Personal Finance.

South African Table Grape Industry Partnership (SATGI) is a partnership

Online Resources

Cape Winemakers Guild: www.capewinemakersguild.com

SA Wine Industry Information & Systems: www.sawis.co.za

South African Table Grape Industry: www.satgi.co.za

Vinpro: www.vinpro.co.za

Sector Insight

The table grape sector

employs 46 000 people.

whose board membership

represents every growing region.

The industry’s contribution to the

national GDP is estimated at more

than R3-billion.

The table grape industry in

the Western Cape provided over

46 000 direct jobs during the

2015/2016 harvest. The province

is responsible for 65% of total

production in table grapes.

There is also a significant

contribution to downstream

production income – R3.2-billion

to other product input providers,

R720-million to packaging

material suppliers and R250-

million to logistics suppliers. ■

WESTERN CAPE BUSINESS 2020

48


Wine tourism boosts

Western Cape economy

Further research on economic impact is planned.

FOCUS

Research will be conducted in

the course of 2020 into the value

of wine tourism, along with a

skills audit to identify training

opportunities.

Wine tourism plan

South Africa’s wine tourism sector is experiencing rapid

growth and gaining international recognition, making this

a lucrative sector for investment.

A Food and Wine Tourism Market Report released by

Wesgro and Explore Sideways at the end of 2019 indicated that 63%

of tour operators believed the market grew in 2018, the total spend

per trip increasing to above R60 000.

“People are moving away from generic itineraries in search of

something more unique. South Africa’s huge cultural and natural

diversity, along with the world-class food and wine offering positions

us perfectly to significantly grow the tourism market,” Vinpro wine

tourism manager Marisah Nieuwoudt says.

The International Wine Review and United Nations Tourism

Organisation singled South Africa out as one of the best developed

wine tourism destinations globally in 2012 and 2016. Lonely Planet

identified the Cape Winelands as one of the global Top Ten Best

Value Destinations, while Vergelegen Estate, Delaire Graff Estate and

Creation Wines were listed as Top 50 Wine Destinations in the World.

South Africa also has the longest wine route in the world, spanning

six wine regions.

Job creation

Wine tourism helps to establish a personal connection with consumers,

enhances brand loyalty, adds value to existing activities and boosts

sales. It can also grow the job market as it has a low barrier to entry.

The wine and brandy industry

has been serious about wine

tourism since 2015, identifying

it as a growth driver in the

industry’s strategic framework,

WISE (Wine Industry Strategic

Exercise). A wine tourism plan

was released, along with a

digital visitor-facing platform

Visitwinelands.co.za. Vinpro

established a wine tourism desk

to coordinate efforts of relevant

parties including Wesgro, the

SA Wine Route Forum, Wines

of South Africa (WoSA) and

the Cape Winelands District

Municipality (CWDM).

In 2019 Vinpro, with

the support of the CWDM,

launched a free online Wine

Tourism Toolkit and hosted

a successful series of wine

tourism workshops to help

related businesses establish or

expand their footprint. ■

Contact Details

Marisah Nieuwoudt

Tel: + 27 21 276 0429

Email: marisah@vinpro.co.za

Web: www.toolkit.vinpro.co.za

49 WESTERN CAPE BUSINESS 2020


OVERVIEW

Fishing

Ownership patterns in the fishing industry are changing.

Sector Insight

Sea Harvest celebrated

50 years with the launch

of a new trawler.

Tiger Brands has unbundled its 42% stake in Oceana Group.

Oceana holds the popular pilchards brand Lucky Star, which

enjoys 80% of market share in South Africa, and has a market

value of R11-billion. The Oceana Group recently purchased

Foodcorp’s fishing rights and a US fishmeal and oil company, Daybrook.

There have been several changes in ownership in the fishing industry,

most likely linked to the upcoming determination of new fishing

rights in which black shareholding will be a factor. The acquisition by

black-controlled Sea Harvest Group of Viking Fishing is part of a larger

trend in which empowered companies are taking controlling shares in

fishing companies.

Sea Harvest paid R885-million for Viking Fishing and celebrated

its 50th anniversary with the addition to its fleet of a R130-million

stern-fishing trawler, Harvest Atlantic Peace, which can catch and process

up to 7 000 tons per year and can freeze up to 40 tons per day.

Sea Harvest’s return to the main board of the JSE brought to three

the number of major fishing companies represented on Africa’s biggest

stock exchange. Premier Fishing also made its shares available to the

public for the first time while the Oceana Group has been on the JSE

for 70 years.

The Western Cape is responsible for about 75% of the nation’s

fishing, which ranges from the highly capitalised deep-sea trawling industry

to much smaller lobster and abalone operations. Demersal fish

such as hake and kingklip account for 46% of the national catch, with

Online Resources

Fish SA: www.fishsa.org.za

National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za

SA Deep Sea Trawling Industry Association: www.sadstia.co.za

South African Maritime Safety Authority: www.samsa.org.za

pelagic fish (anchovy, pilchards

and sardines) making up 23%.

Lobster makes up 11% and linefish

13%.

The Department of Agriculture,

Forestry and Fisheries wants

to restructure the horse mackerel

industry to promote local fishers

and processors.

Most of South Africa’s large

food companies have fishing divisions.

Pioneer Fishing, which has

no connection to the multi-product

group Pioneer Foods, controls

a canning, fishmeal and fish

oil factory in St Helena Bay and a

processing and freezing factory

in the Port Elizabeth harbour. The

African Pioneer Group holds a

40% stake in the company, which

was formed as a joint venture

with Suiderland to control the

latter’s fishing rights.

Premier Fishing and Brands

Limited, a subsidiary of Sekunjalo

Investments, runs 16 vessels and

operates at seven locations, including

a 1 760-ton cold-storage

facility at the V&A Waterfront. The

company has lobster plants at

Port Nolloth and Hout Bay, and

a fish meal plant at Saldanha.

Dromedaris Visserye specialises

in Cape lobster, and supplies

sardines and anchovies to China

and Japan. ■

WESTERN CAPE BUSINESS 2020

50


Mining

A huge project to increase volumes at the Port of Saldanha is planned.

OVERVIEW

Sector Insight

Mineral sands operations are

expanding on the West Coast.

The road out of Cape Town north to Malmesbury and beyond

has been rebranded the N7 Cape to Namibia Highway. But it’s

probably not tourism that is driving the major roadworks that

are happening on both sides of the Swartland’s biggest town.

It is more likely that the volume of mining product coming from

the West Coast has led to the upgrades. The Australian company

running the Tormin mineral sands mine near Lutzville and Koekenaap

has applied to greatly expand its operations, but this has run into

objections from environmental groups. Mineral Commodities (MRC)

spent R5-billion in 2019 in search of zircon, rutile, ilmenite and garnet

to send to China.

Namakwa Sands is a mineral sands operation on the West Coast,

owned by Tronox. The company has a mine and concentration plant

at Brand-se-Baai and a mineral separation plant at Koekenaap about

350km from Cape Town. Ilemnite, rutile and zircon are extracted at this

site and then taken to the company’s smelter at Saldanha Bay.

The Elandsfontein phosphate mine is also encountering resistance

to its right to a water licence from the West Coast Environmental

Protection Association which claims that the Elandsfontein aquifer and

the Langebaan Lagoon are at risk. The developer of the mine Kropz is

partly owned by African Rainbow Capital Investments.

A project to increase export volumes of iron ore (shown being

delivered above) at the Port of Saldanha is planned for 2020. The project

is expected to cost in the region of R3-billion.

Online Resources

Council for Geoscience: www.geoscience.org.za

Geological Society of South Africa: www.gssa.org.za

Minerals Council South Africa: www.mineralscouncil.org.za

National Department of Mineral Resources: www.dmr.gov.za

Sixteen rare earth minerals

have been identified north

of Vanrhynsdorp, with the

most prevalent being cerium,

an important component of

catalytic converters.

Afrimat has five sand

mines, two lime plants and

nine aggregate operations in

the Western Cape. The Afrimat

Kliprug Quarry in Durbanville

is near the AfriSam Peninsula

Quarry at Killarney north-east

of Milnerton which mines

greywacke stone which is

then processed at the nearby

plant into concrete aggregates.

Pretoria Portland Cement (PPC)

has operations near Riebeeck-

West and Piketberg (De Hoek).

Slasto and building stone are

quarried near Clanwilliam.

Consol quarries glass sand near

Philippi. The Cape Bentonite

Mine near Heidelberg is run by

Ecca Holdings with another site

east of Knysna at Roodefontein.

Dimension stone occurs around

Vanrhynsdorp and mediumgrain

granite is found at Paarl.

Limestone for cement,

agricultural lime and feed lime

is extracted at several sites in the

province’s western regions while

kaolin is found in Noordhoek and

Somerset West. Ball clay is mined

in the Albertina area by G&W

Base and Industrial Minerals. ■

51 WESTERN CAPE BUSINESS 2020


OVERVIEW

Oil and gas

The Western Cape is turning to gas.

The drive to turn to gas as a source of power for the province

is set to intensify. The Western Cape’s new premier, Alan

Winde, argued strongly for a liquid natural gas (LNG) power

station to be allocated to Saldanha Bay as part of the

national government’s Independent Power Producer Procurement

Programme (IPPPP) when he was MEC for Economic Opportunities.

He has since called for Eskom’s open-cycle gas turbine unit

(which uses diesel) to be turned over to a private producer to

convert it to gas and for another LNG power station to be built

at Mossel Bay, where South Africa’s only gas-to-liquid plant faces

closure because of a lack of feedstock.

The announcement in early 2019 by Total that it had found a vast

gas field in the southern Outeniqua basin may prove transformative

but getting to the gas will be a lengthy and expensive operation.

Other companies that hold shares in the basin include Eni and

Exxon Mobil.

Natural gas also lies offshore to the west of South Africa in the

Sector Insight

The Western Cape spends

R76-billion annually on

crude oil imports.

Atlantic Ocean (Ibhubesi).

Block 2A of the Ibhubesi gas

field north-west of Saldanha is

estimated to have reserves of

850-billion cubic feet of gas.

Industrial gas manufacturing

in the Western Cape is a

particular focus for Air

Products, a part of the Metkor

Group controlled by Remgro.

The company is one of the

WESTERN CAPE BUSINESS 2020

52


OVERVIEW

largest suppliers in the pipeline and on-site markets. The Western

Cape’s status as an oil and gas hub was enhanced in 2017 with the

opening of a new open-access liquefied petroleum gas (LPG) import

and storage terminal at Saldanha Bay. A public-private partnership

is behind the R1-billion terminal, the largest of its kind in Africa.

Investors include Sunrise Energy, the Industrial Development

Corporation (IDC), the Public Investment Corporation (PIC) and Royal

Bafokeng Holdings.

Oil

Cape Town’s oil refinery changed hands in 2018 when Off The Shelf

Investments (OTS) completed a $973-million purchase of Chevron’s

downstream assets in South Africa. Chevron has been rebranded as

Astron, but the Caltex service-station brand has been retained. OTS

is the Black Economic Empowerment (BEE) partner of mining giant

Glencore, who financed the deal.

The refinery in Milnerton produces petrol, diesel, jet fuel and

liquefied gas for the Western Cape and for export to other African

countries. The Western Cape spends R76-billion annually on

crude oil imports and exports refined petroleum to the value of

R13.2-billion.

Large quantities of oil are transported around the Cape of

Good Hope every year: 32.2% of West Africa’s oil and 23.7% of oil

emanating from the Middle East. Reduced global prices for oil and

troubles in the container ship market has caused some stress in the

local sector but the long-term prospects for shipping and oil and gas

are still strong enough for national government to pursue Operation

Phakisa (which includes a strong maritime economy push) and for

Transnet National Ports Authority to spend heavily on upgrading the

nation’s ports.

The Western Cape Provincial Government reported that in 2016

the oil and gas sector contributed R1.03-billion to the province’s

gross value add. More than 7 000 direct jobs were created in the

ship and rig repair sector of the oil and gas business in 2015.

The Saldanha Bay Industrial Development Zone (SBIDZ) is central

to the plan to grow the sector. Large industrial operations already

exist at Saldanha and the Port of Saldanha Bay is the portal for the

export of South Africa’s iron ore.

Staff from the SBIDZ actively sought investors for the zone at

Online Resources

National Department of Energy: www.energy.gov.za

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

Petroleum Agency South Africa: www.petroleumagencysa.com

PetroSA: www.petrosa.co.za

South African Oil and Gas Alliance: www.saoga.org.za

the Africa Oil Week, which was

held in Cape Town in 2019.

Nine investors, ranging from

gas maintenance and repair

companies to domestic and

foreign oil companies, have

already committed to the SBIDZ.

The Western Cape

Provincial Government and the

National Department of Trade,

Industry and Competition have

so far invested R500-million

in the development of core

infrastructure at the Saldanha

Bay IDZ. The Saldanha Bay IDZ

has signed a lease agreement

with the Transnet National

Ports Authority.

The newly constructed

Bergun terminal, comprising

12 tanks located on the Eastern

Mole of the Port of Cape

Town, has added to the port’s

fuel storage capacity and is

connected by pipeline to the

Astron refinery.

The Council for Geoscience

(CGS) is doing an intensive

study of South Africa’s potential

shale gas resources. The major

economic sectors using gas

are the metals sector and the

chemical, pulp and paper sector.

Brick and glass manufacturers

are also big consumers.

The regulator and promoter

of oil and gas exploration

in South Africa is Petroleum

Agency South Africa. In addition

to adjudicating on coastal

fields such as those along the

western and eastern coasts

of the Western Cape, the

agency has awarded coalbedmethane-gas

exploration rights

in KwaZulu-Natal and natural

gas exploration permits in the

Free State. ■

53 WESTERN CAPE BUSINESS 2020


OVERVIEW

Energy

Green business is blooming in the Western Cape.

The Western Cape is positioning itself as a green business hub

and is working to find energy alternatives for households

and businesses.

GreenCape claims that nearly R700-million in green technology

investments have already been attracted to the Atlantis Special

Economic Zone, creating 300 jobs. A further R3.7-billion is anticipated

by 2030, which will add more than 3 000 new jobs. Spanish wind tower

manufacturer Gestamp Renewable Industries and tower internals supplier

Resolux (from Denmark) are early investors in the zone.

GreenCape is an agency that does research and runs projects in

areas such as energy efficiency, waste, water and sustainable agriculture.

It is a joint initiative of the City of Cape Town, Wesgro and

the Provincial Government of the Western Cape. The Western Cape

Industrial Symbiosis Programme (WISP), which encouraged manufacturers

to use the waste product of other businesses, won international

recognition in 2018 at the Circular Awards at Davos.

Of the projects committed to under the national Renewable

Energy Independent Power Producer Procurement Programme

Sector Insight

Solar PV usage has increased

to 112MW.

(REIPPPP), 14 are located in the

Western Cape (eight wind, five

solar, one biomass). Cape Town

is home to 70% of South Africa’s

manufacturers of renewable

components.

Among the many changes

that followed President Zuma

standing down as president in

2018, the REIPPPP was rebooted.

In April 2018, newly appointed

Energy Minister Jeff Rabebe

restarted the programme

when he signed off on projects

WESTERN CAPE BUSINESS 2020

54


OVERVIEW

totalling R56-billion that will add 2 300MW to the national grid. Most

of South Africa’s electricity comes from coal and national utility

Eskom is building two huge coal-fired power stations.

Radebe also announced that small-scale renewable energy

projects (up to 10MW) could receive licences from the National

Energy Regulator of South Africa (Nersa). This will mostly apply

to manufacturers that produce biomass (such as forestry and

sugar producers) and mining companies but also plays into the

stated policy of the Western Cape provincial administration to

promote independent producers (IPs). A court case is pending

in which the provincial government is trying to win the right for its

municipalities to buy directly from IPs instead of having to buy all

power from Eskom.

Unreliable and expensive power is a massive constraint on

business and provincial and city governments in the Western

Cape are champing at the bit to be allowed more freedom to

participate in the sector.

The idea of home-owners being able to sell surplus electricity

from rooftop solar systems was previously restricted to the Cape

metropolitan area. The application of the provincial government’s

Energy Security Game Changer has expanded this provision (via

bylaws) to the whole province. There are 19 municipalities where

rooftop solar PVs are connected to the electricity grid, 13 of which

have nationally approved tariffs in place. Users in the 13 areas can

be paid for the power they suppy. The uptake of solar has risen from

20MW in 2015 to more than 112MW in 2019.

The City of Cape Town has signed an agreement with the United

States Agency for International Development and the Southern

Africa Energy Programme to look for ways to make solar PV more

accessible. High costs of installation often preclude residents from

taking the solar PV option for their homes.

In September 2018 the City of Cape Town launched a resilience

assessment, the first step in a larger process. The Rockefeller

Foundation chose the city in 2016 as one of 100 around the world

in which programmes would be tested to improve the ability of the

city to withstand shocks such as severe droughts. The city wants to

expand the lessons it learnt in the period of water shortage into other

areas such as energy generation and energy efficiency. Former MP

Gareth Morgan is Cape Town’s Director of Resilience.

Online Resources

Atlantis Special Economic Zone: www.investcapetown.com

GreenCape: www.greencape.co.za

South African Renewable Energy Business Incubator: www.sarebi.co.za

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

South African Renewable Energy Technology Centre:

www.saretec.org.za

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

The Western Cape

Provincial Government is also

investing in resilience. A market

intelligence report covering

energy, renewable energy,

water and waste was created by

GreenCape to map the assets

and challenges in these areas.

The Cape Peninsula University

of Technology’s Energy

Institute is a leader in research

in the field of electricity, and is

also responsible for a regional

publication relating to domestic

use, DUE.

The South African Renewable

Technology Centre (SARE-

TEC) on the Bellville campus

of CPUT offers courses such

as Wind Turbine Service Technician

and Solar Photovoltaic

Service Technician and various

short courses such as Bolting

Joint Technology.

The Centre for Renewable

and Sustainable Energy

Studies is at the University

of Stellenbosch and the

University of Cape Town has

the Energy Research Centre.

The University of the Western

Cape is doing research on the

possibilities of hydrogen as an

energy source.

The South African Energy

Business Incubator (Sarebi),

based in Atlantis, has assisted

190 entrepreneurs in the energy

and resource efficiency fields.

A wave-energy project

is underway at Hermanus.

Funding for the project is

coming from the aquaculture

company that will receive

power from the 1MW plant,

Abagold, the Industrial

Development Corporation and

EEP Africa, a specialist in clean

energy funding. ■

55 WESTERN CAPE BUSINESS 2020


PROFILE

Africa Biomass Company

Your caring family trading as world leaders in the wood chipping industry.

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

Company

high ethical standards.

Slogan

Our values

Human dignity; Integrity; Quality; Pro-trademark

resolution; Innovation; Transparency; Individualism

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.

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)

• Woodchip mulch and biomass sales

• Bandit agency (Southern Africa)

• Dezzi equipment (Western Cape)

• Workshop and field services

• Part sales

• Manufacturing

• Accredited Operator Training Facility

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.

Processing of waste wood into a viable

product, that if applied correctly, could have a

WESTERN CAPE BUSINESS 2020

56


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

• 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.

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.

CONTACT INFO

Physical address: 2 – 4 Joubert Street, Worcester

6850, Western Cape, South Africa

Postal address: PO Box 1322, Worcester 6849

Tel: +27 23 342 1212 • Fax: 086 515 5777

Website: www.abc.co.za

Willem van der Merwe, CEO:

willem@abc.co.za

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.

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.

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

57 WESTERN CAPE BUSINESS 2020


OVERVIEW

Manufacturing

Boatbuilding exports have soared since 2014.

The International Superyacht Society has awarded a yacht built

by Cape Town company Southern Wind, Seatius, the accolade

of best sailing yacht in her category (Sail 24m-40m). The Boat

International Design and Innovation Awards also awarded the

yacht Best Interior Design in Sailing Yachts.

The hull lines, appendages and sail plan of Seatius are by Farr

Yacht Design with the deck design created by Nauta, illustrating how

much collaboration goes into an intricate yacht project. The Seatius

(pictured) has a lifting keel and twin rudders. Southern Wind’s huge

manufacturing site is a landmark in Athlone Industria.

Atlantis is home to Phoenix Marine, a specialist catamaran

manufacturer. Celtic Yachts, which makes catamarans and cruising

yachts, is in Killarney Gardens. Ullman Sails makes sails in Maitland

while Two Oceans Marine Manufacturing constructs its catamarans

on the Foreshore. In 2019 Two Oceans Marine launched South Africa’s

biggest composite and leisure catamaran. Le Cerf is owned by Mason’s

Travel, a Seychelles company.

Robertson & Caine’s facility in Woodstock produces three boats a

week for the international market. With a staff complement of 1 350,

a record of having launched more than 1 300 vessels and a subsidiary

company in Tampa, Florida, the company is a world leader in power

catamarans and sailing catamarans. In 2017 the company’s Leopard

45 won the Cruising World Boat of the Year Award for best Charter

Boat. A 20-year relationship with Tui Marine (which includes the two

Sector Insight

The Atlantis Special

Economic Zone is

specialising in green tech.

largest yacht charter companies

in the world), Robertson & Caine

has supplied more than 1 194

catamarans.

Nautic Africa makes larger

vessels, including patrol,

defence, oil and gas platform

and commercial vessels. Damen

Shipyards Cape Town delivers

vessels to public entities such as

the Robben Island Museum and

the South African Navy and private

companies such as Smit Amandla

Marine and De Beers Marine.

Invest Cape Town reports

that the city’s boatbuilding

industry is the second-largest

producer of recreational

WESTERN CAPE BUSINESS 2020

58


OVERVIEW

catamarans in the world, after

France. The city’s companies

export 80% of the products

that they produce and attract

a positive trade balance of

approximately $73-million

annually. Boatbuilding exports

have grown by 20.5% annually

year-on-year since 2014 in Cape

Town (Quantec, 2019).

The Whisper Boat Building

Academy is located at the False

Bay TVET College.

Green growth

A diverse manufacturing sector

contributes 15% to the Western

Cape’s GDP. The agri-processing

sector (including food and

beverages and tobacco) is the

largest employer (24%) followed

by metals, metal products,

machinery and equipment at

19%. A proposed Cape Health

Technology Park will further

boost the manufacture of

medical devices.

The Atlantis Special

Economic Zone, which is

specialising in green tech,

has already attracted nearly

R700-million in privatesector

investment. Goals for

the green sector include the

creation of 1 200 direct jobs in

a 20-year period.

A Moody’s report on the

green economy in Africa states

that South Africa has the fastestgrowing

green sector in Africa,

and one of the fastest-growing

in the world. About 70% of

South Africa’s manufacturing in

renewables is happening in the

Western Cape.

The decision by Britain to

leave the European Union has

led to increased interest in bilateral trading relations with individual

European countries. France has established a tech hub in Cape Town

and Business France has been facilitating a number of conferences and

visits. More than 300 French firms currently operate in South Africa.

Food and beverages

The combination of excellent and plentiful agricultural produce, good

manufacturing capacity and a skilled workforce give the Western

Cape a competitive advantage in the food and beverages sector.

A sophisticated transport infrastructure system allows it to service

international markets.

Famous Brands has bought a famous Western Cape brand in its

drive for greater backward integration. Lamberts Bay Foods supplied

Famous Brands restaurants with chips for two decades. With its

purchase from Oceana, Famous Brands now has greater control

over a menu item at all of its 26 restaurant brands, including Wimpy,

Fishaways and Mugg & Bean. Lamberts Bay Foods sources potatoes

from all over South Africa, but its proximity to the potato-growing

Sandveld region is helpful.

The wheat-growing areas of the Swartland host several mills such

as Sasko’s facility in Malmesbury. Bokomo has several manufacturing

facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and

Bonnievale. Safari Vinegar is based in the Strand and there are two

Heinz manufacturing plants at Wellington and Atlantis.

Two of the biggest chicken processing facilities are located on

the N7 highway (Tydstroom) and on the N1 (Rainbow Chickens). The

Western Cape has about 16 000 commercial pork sows and produces

a quarter of South Africa’s milk.

Willards has a factory in Goodwood, in nearby Parow there is a

Simba factory and local chip and snack manufacturer Messaris, which

has been in operation since 1898, has a facility in Elsies River. Nestlé

produces condensed milk and milk powder in Mossel Bay and canned

pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and

has also invested heavily in its prepared meals plant in Cape Town.

SABMiller’s Newlands brewery is one of the busiest in the

country as it is responsible for providing product for a very large

geographical area.

Coca-Cola bottler and distributor Peninsula Beverage has three

plants – at Parow, Athlone and Vredendal on the West Coast, and

employs 1 300 people. ■

Online Resources

Cape Chamber of Commerce: www.capetownchamber.com

Invest Cape Town: www.investcapetown.com

Wesgro: www.wesgro.co.za

Whisper Boat Building Academy: www.falsebaycollege.co.za

59 WESTERN CAPE BUSINESS 2020


OVERVIEW

Maritime

The Oceans Economy is creating new opportunities.

Sector Insight

Three vessels are under

construction for the

SA Navy.

South Africa has 3 000km of coastline and the extent of the

country’s territorial waters is greater than its land size. The

Oceans Economy is no longer just a concept talked about at

conferences, it is a reality that is starting to have an impact on

South Africa, and the Western Cape is well placed to benefit in terms of

servicing the oil and gas industry, ship repair and manufacturing boats.

Damen Shipyards Cape Town is building three inshore patrol

vessels for the South African Navy, the first of which will be delivered

in 2021. The vessels will be used to secure South Africa’s waters against

threats such as illegal fishing, smuggling and piracy.

EBH SA, which has extensive facilities in the Port of Cape Town, has

been in the business of marine engineering and repairing ships since it

began as Elgin Brown and Hamer in 1878. The company’s 183m-long

repair quay has a draft of 12.5m and 5 000m² of quayside area.

Large industrial operations already exist at Saldanha north of Cape

Town and the Port of Saldanha Bay is the portal for the export of South

Africa’s iron ore. The Saldanha Bay Industrial Development Zone (SBIDZ)

is set to become a hub for a range of maritime repair activities and oil

rig maintenance and repair.

The National Department of Trade, Industry and Competition

(dtic) and the Western Cape Department of Economic Development

and Tourism (DEDAT) have collectively invested R500-million in core

infrastructure at the SBIDZ and a lease agreement has been signed

with Transnet National Ports Authority.

Online Resources

Oceans Economy/Operation Phakisa: www.environment.gov.za

Saldanha Bay Industrial Development Zone: www.sbidz.co.za

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

Transnet National Ports Authority: www.transnet.net

The SBIDZ fits neatly into two

over-arching visions: Operation

Phakisa and Project Khulisa,

the targeted growth strategy

of the Western Cape Provincial

Government which includes

servicing and repairing of oil rigs

as a priority.

Priority sectors at Saldanha

are upstream oil and gas and

marine engineering and services.

The IDZ is run by the SBIDZ-

Licencing Company which

works together with the Transnet

National Ports Authority (TNPA)

on several joint projects.

These are being undertaken

to create good conditions for investors.

Quayside infrastructure

has been upgraded, including

a wastewater treatment plant

and a new road and bridge over

the MR559. DEDAT reports that

in 2016 the oil, gas and marine

sector supported 8 320 jobs and

contributed R1-billion to the

province’s gross value add.

The marine transport

committee of the South African

Oil and Gas Alliance (SAOGA) is

preparing South Africa to reap

the potential of the sector. It has

developed 18 initiatives across

three categories: infrastructure

and operations, skills and

market growth. ■

WESTERN CAPE BUSINESS 2020

60


Construction and property

Student accommodation is on trend.

OVERVIEW

One of the fastest-growing segments of the property

market is student accommodation. Ambitions to keep

making tertiary education more accessible to a broader

range of students, already hugely successful since South

Africa became a democracy in 1994, will create a need for even more

accommodation. As it is, the Department of Higher Education and

Training estimates that there is a need across South Africa for 250 000

beds for university students.

Several companies are responding to this need. A famous landmark

in Rondebosch lives on in the name given to a new block of flats for

students next to the old fountain in Main Road, Fountain Rez. The

building (pictured) is developed by FPG Property Group, a company

that grew out of supermarket and wholesale company that initially

focussed on the retail property sector.

Respublica has just one student building in Cape Town, on Main

Road near Cavendish Square in Claremont, but it has nine properties in

Gauteng: Roscommon House is a short walk from a UCT bus-stop.

Another popular suburb for student accommodation is

Observatory. UCT has developed several buildings in the area

Sector Insight

Commercial space in

the V&A Waterfront has

risen to 25%.

but recent blocks of flats built

by private developers include

Obs Court and several projects

by Rawson Developers,

Madison Place, The Winchester

and The Paragon. The 64-

flat The Westwood will be

complete in 2020.

STAG African has student

projects in the Western Cape

(at Stellenbosch University)

and in the Eastern Cape. STAG

has also spotted opportunity

61 WESTERN CAPE BUSINESS 2020


OVERVIEW

elsewhere in Africa, with

34 000 beds being developed

at universities in Kenya, Malawi,

Zambia and Lesotho.

The brief of A-MSquared

is to “own, manage and

operate premium student

accommodation near UCT and

Stellenbosch universities”. These

are student houses (what used

to be called “digs”) rather than

residences but they are centrally

administered.

Outside of student-land,

research shows that the demand

for housing is as strong as ever.

Cape Town has adopted a

long-term Transport Oriented

Development (TOD) plan

which looks at housing density

in conjunction with transport

patterns. It is estimated that

greater Cape Town will need

500 000 new homes by 2023, in

addition to 3.5-million square

metres of office space, onemillion

square metres of retail

space and 4.5-million square

metres of industrial development.

Cape Town has established

the Transport and Urban

Development Authority (TDA).

The TDA is charged with

getting the right mix of urban

development and travel patterns.

With responsibility for transport,

urban planning, public housing

and environmental sustainability

in one place, there is a better

chance of “joined-up” thinking.

Part of this strategy can be

seen in plans for mixed housing

on 13 sites in Salt River and

Woodstock that the City of

Cape Town has made available

at 10% of market value. Social

housing non-profit company

Communicare has been working

with the city on the project which envisages 30% of the housing stock

being available for low-income households, 14% for the gap market

and the rest of the houses being available on the open market

The province’s “Better Living Model” aims to deliver 3 602 residential

units in an affordable, mixed-use and residential-led development on

the site of the old Conradie Hospital on the edge of Pinelands. With the

state (provincial or city government) putting in the bulk infrastructure,

costs for developers would be significantly reduced – the quid pro quo

is that the developer must then set aside a certain number of housing

units (49%) to grant-funded housing.

Commercial

The Victoria and Alfred Waterfront has been one of the most successful

property developments and it continues to generate good returns for

its tenants, according to a report issued by the management of the

V&A Waterfront in 2019.

New districts added to the footprint of the Waterfront such as

the Canal and Silo areas have expanded the economic impact to the

point where the Waterfront contributes R31.5-billion to provincial GDP

(almost 2%). Commercial office space has grown as a percentage of

gross lettable space and now stands at 25%. Several regional head

offices have relocated recently, including British American Tobacco.

A new suite of offices has been developed by the Amdec Group.

The Yacht Club (pictured on the next page) is near the berth for luxury

cruise ships and in front of the Cape Town International Convention

Centre, has 170 flats, 6 000m 2 of office space spanning on levels, and

Africa’s first AC Hotel by Marriott.

Amdec is also developing the huge Harbour Arch precinct on the

western edge of the Foreshore. This will comprise six towers on a 5.8ha

site that will house two hotels and residential and office space. The City

of Cape Town has given its approval for the development to go ahead.

Among the winners in the 2019 SAPOA Property Development

Awards for Innovative Excellence was Sable Park, a part of Century

City, which won in the Commercial Office Developments category.

Developed by Rabie Property Group, the building has a five-star rating

from Green Star SA and houses the offices of Discovery and MTN,

among others.

A Cape Town CBD landmark is being redeveloped into a

mixed-use building to be known as Foreshore Place. What was

built as the Trust Bank building and became the Absa building

on the corner of Adderley Street, Riebeek Street and St George’s

Mall, now has 15 floors of commercial space with the ground

floor occupied by retail shops. The residential component takes

up 11 floors comprising 63 studio apartments, 99 one-bedroom

apartments and nine two-bedroom apartments. The developer of

the project is HBW Group, it was designed by KMH Architects and

marketed by Dogon Group Properties.

WESTERN CAPE BUSINESS 2020

62


OVERVIEW

Growth areas

Voortrekker Road is the subject of several interventions to encourage

bulking up (businesses and residential). The Greater Tygerberg

Partnership is working to provide a catalyst for new developments

that will build on the area’s existing strengths: transport links, medical

facilities, retail, motor dealerships and residential.

Possible construction projects could respond to the need for

student accommodation: 100 000 students are in the area. The Greater

Tygerberg Partnership has done a study on students’ accommodation

needs and is encouraging building owners to cater to this need.

The Voortrekker Road Corridor already has services and an

established built environment, but it also has some dilapidated

structures and it also has lots of open spaces. In other words, it has lots

of potential.

An area that continues to grow in terms of residential property

is the West Coast. With mountains to the east, it is logical that

areas north of Cape Town will grow: the only constraint is access

to water. Blouberg, Parklands and Sunningdale continue to grow

and attract good houses for residential property. The MiCiti bus

route now serving the West Coast makes commuting to town

much easier.

George on the Southern Cape coast has seen some substantial

new developments, including a private hospital built for Mediclinic,

some new malls and a number of estates. Fancourt in George was

Online Resources

Cape Town Transport and Urban Development Authority:

www.tda.gov.za

Construction Industry Development Board: www.cidb.org.za

SA Estate Agency Affairs Board: www.eaab.org.za

SA Institute of Architects: www.saia.org.za

SA Institute of Valuers: www.saiv.org.za

one of the first golf estates in

South Africa. In 2017 a set of

new plots were offered for sale

on what was described as its

“prized northern slopes”.

A large gas discovery off the

coast of Mossel Bay has caused

some speculation that it might

have a (long-term) effect on

property prices in the area. The

Knysna-Plett Herald quoted a

Seeff Property spokesperson

saying that Mossel Bay had

seen sales grow year-on-year

by 20%, with January 2019 the

best sales month in four years.

Seeff is developing two gated

communities of more than

300 units in the R900 000 to

R1.4-million price range.

Although prices in George

are higher, Seeff reports that

older sectional-title property

can be found from R650 00

and houses from R900 000.

Family and golf estate homes

mostly range from R2-million to

R6-million but can go up to

R8-million for a seaview. The

George rental market is strong

with luxury homes achieving up

to R30 000 per month. ■

63 WESTERN CAPE BUSINESS 2020


PROFILE

Maritz Electrical

Large area and sports lighting specialists.

From commercial electrical applications to

high-end floodlights and sports stadiums

and spotlights using state-of-the-art products,

Maritz Electrical delivers end-to-end

electrical solutions tailored to clients’ needs.

Delivering service excellence and exceptional

quality are key differentiators for Maritz Electrical

and what clients have come to expect.

Maritz Electrical is an empowerment company

established by Kurt Maritz in January 2000. Maritz

Electrical is BBBEE compliant (Level 1 contributor).

It is ISO 9001 certified and fully compliant with

the Occupational Health and Safety Act with a

full-time, trained safety representative.

Maritz Electrical occupies a newly renovated

3 000-square-metre factory and office facility in

Athlone. The company employs full-time, licensed

installation and master electricians. Artisans working

at Maritz have completed the ORHVS.

Maritz Electrical places great emphasis on its relationship

with clients, private or commercial, and

prides itself on the ability to respond to any contracting

requirements in an efficient and cost-effective

way. Maritz Electrical works closely with its

customers, ensuring that projects are completed

on time and on budget, using the highest-quality

products available.

Maritz Electrical aims to contribute positively

to the South African economy, provide excellent

workmanship and be a leader in quality service

provision.

Flagship projects

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

International Cricket Council-compliant, LED-lit

stadium and the first such stadium to be fitted

with theatrics. Maritz Electrical was part of the

R40-million revamp of Coetzenburg Athletics

Stadium in Stellenbosch and installed new LED

lighting at the hockey field of Western Province

Cricket Club in 2019. The lights comply with the

latest FIH standard.

Other projects include the electrification of

large housing projects for municipalities, rural

security lighting, lighting for passenger areas and

runway lighting at airports, Cape Town’s Grand

Parade and security lighting for waste-water treatment

plants.

Key areas of expertise

• Public lighting, high masts and sports lighting

• Commercial installations and maintenance

• Industrial installations and maintenance

• Domestic installations and maintenance

• Reticulation

• Substations

Professional memberships

BBBEE Level 1. ISO 9001 certified. Electrical Contractors

Association. Master Builder Association Member.

Member of South African Institute of Lighting (SAIL). ■

CONTACT INFO

Physical address: 11 Noll Avenue, Athlone,

Cape Town, 7764

Tel: +27 21 703 0867

Email: tenders@maritzelectrical.co.za

Website: www.maritzelectrical.co.za

WESTERN CAPE BUSINESS 2020

64


Leading the field in energyefficient

lighting

PROFILE FOCUS

World first for Maritz Electrical.

LED lighting is a game-changer and Maritz

Electrical is leading the way in its introduction

at South African sporting venues.

LED refers to “Light-Emitting Diode”, a device

that is both brighter and more energy efficient

when electrical current is passed through it than a

conventional light bulb.

In a short space of time, Maritz Electrical has

achieved three significant landmarks in the LED sports

field lighting landscape:

• the world’s first International Cricket Councilcompliant

LED-lit stadium with theatrics,

St George’s Park, Port Elizabeth, 2017

• installation of new LED lights at internationally

recognised athletics stadium, Coetzenburg,

Stellenbosch, 2018

• first South African club hockey field to install

LED lighting to the standard of the FIH (the inter

national hockey body), Western Province Cricket

Club, 2019.

The installation at the WPCC hockey field is

a Musco lighting system, similar to the system

used at international stadiums such as Twickenham

Rugby Stadium, Arsenal’s Emirates Stadium and at

baseball and football fields in the US, where Musco

is based.

The R27-million St George’s Park project was completed

on time and on budget, despite installing lights

on top of the Duckpond Pavilion at night in high

winds. The Musco solution is good at controlling spill

and glare and typically comes with a 10-year warranty.

The response has been enthusiastic, helping

Maritz Electrical on its goal to becoming the “goto”

company for stadium lighting installations. For

company MD Kurt Maritz, the television experts provided

the really important feedback. “We cared about

SuperSport the most and they have been raving. If

there are light and dark spots on the field the cameraman

must remember to change the aperture. They

said that the lighting was excellent.”

Large-area lighting

Stadium lighting falls within the broader category

of large-area lighting. The global move to LED lighting

has been a positive thing for Maritz Electrical. In

South Africa, however, Kurt notes that there is difference

between the indoor and outdoor scenarios.

For indoors, “everybody is going that route” but that

return on investment (ROI) is somewhat different in

the outdoor setting.

Maritz Electrical is active in large areas such as

Cape Town’s Grand Parade, rural mast lighting in

Buffalo City, airport runway lighting and security lighting

for city municipal facilities. The company operates

in the commercial, industrial and public sectors and

offers a wide range of services. ■

65 WESTERN CAPE BUSINESS 2020


FOCUS

Growing a national footprint

Maritz Electrical is expanding.

Having established a loyal customer base in the private and

public sectors in the Western Cape, Maritz Electrical has

expanded its horizons, showing that it is ready to tackle

projects anywhere in South Africa.

Recent projects that indicate the versatility that the company brings

to lighting projects, in particular in LED lighting and in large-area lighting,

include: a world-first LED stadium lighting project in Port Elizabeth, another

stadium in the Free State, East London airport building lighting and

mast lighting for informal settlements for the Buffalo City Municipality.

With an expanding workload, Maritz Electrical made a move in 2018

to new premises in Athlone. Founder and Managing Director Kurt Maritz

explains, “We have moved 150 staff from three branches into one customised

3 000-square-metre facility. It is designed in such a way that we

have enough space for 50% expansion. Half of the massive space we

dry-walled so that we have a suite of offices.”

There are no specific targets, but Kurt is clearly looking forward with

anticipation. “We don’t have any ceiling we want to hit. Our engine is our

sales department. As much work as they bring in, that’s how we will grow.”

Free State

Kaizer Sebothelo Stadium

was built as a multi-use venue

but mainly used to host

football matches in the township

of Botshabelo east of

Bloemfontein. The 20 000-seater

stadium is the home ground

for Botshabelo Football Club

and Tower United FC.

Maritz Electrical replaced the

existing, outdated lighting, as

their output intensity was too

low to cater for high-definition

camera equipment. Mangaung

Municipality’s tender stipulated

that the lighting needed an up-

WESTERN CAPE BUSINESS 2020

66


FOCUS

grade to HD quality using a local

lighting brand. The Maritz solution

not only saved close to R3-million,

but provided a 10-year warranty,

resulting in further savings for

the client.

Musco 1500w metal halide

luminaries were installed for field

lighting and LED luminaries for

emergency lighting. The stadium’s

generator was upgraded to

110KVa. Using any other system

would have required the upgrade

of the power supply, but this was

not necessary as the Musco system

uses approximately 25% less power

than conventional systems

Eastern Cape

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

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

with theatrics. Over four days in December 2017, the famous ground

celebrated the landmark of being the first South African venue to host

a day-night Test match, against Zimbabwe. The R27-million contract

was completed on time and on budget by a team from Maritz Electrical

led by Warren Williams. Two project managers from Musco Lighting

supported the installation. The lights on top of the Duckpond Pavilion

were hoisted at night, the process being illuminated by floodlight.

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

that we do is to satisfy the client and leave them with a happy face.”

LED lighting can significantly reduce power consumption. Maritz

Lighting’s pre-installation and post-installation testing confirmed that

East London Airport will be saving on electricity costs.

The Maritz contract with the Buffalo City Metropolitan Municipality

entails providing mast lighting to informal settlements across the municipality.

“We are providing them with 20m-high masts with LED

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

to high-pressure sodium or metal halide although the LED the lux level

is better.” Costs will be reduced and the power of illumination will be

better for residents.

Kumalo says that there is a possibility that Maritz Electrical might

open an Eastern Cape office. “Our presence is growing,” he notes.

“Depending on the amount of work we receive from the province, we

might be looking at opening another office in the Eastern Cape.” Kumalo

points out that Maritz Electrical’s expertise extends beyond lighting.

“We do a variety of electrical works. We also offer project management,

consulting, compliance and hazardous area classification and MV and

LV maintenance.”

Western Cape

The municipal authorities of Overstrand and Stellenbosch have contracted

Maritz Electrical to work on low-cost housing projects. This is a big

market and Maritz Electrical is building its skills set in this area. Aspects

of this market include reticulation, electrification, street lights, road-side

furniture and mini-substations. ■

67 WESTERN CAPE BUSINESS 2020


OVERVIEW

Tourism and events

Arts and culture are front and centre in the Western Cape.

Arabella Hotel & Spa on the banks of the Bot River Lagoon has joined the portfolio of Autograph Collection

Hotels, a division of Marriott International.

A

new cultural-historical concept was launched in 2019, the

Cradle of Human Culture. In partnership with the Cradle of

Humankind World Heritage Site in Gauteng and two provincial

departments, Wesgro’s Destination Marketing Unit will promote

three archaeological sites in the Western Cape which preserve some of

the world’s earliest evidence of evolution of modern human behaviour.

They will be nominated for World Heritage Site status.

Provincial government is keen to promote education in the arts.

Based on figures published by the South African Cultural Observatory

in 2017, which found that 6% of employment in South Africa is in the

cultural sector, the Western Cape will expand the traditional STEM

emphasis to include two additional As: Arts and Agriculture. There are

60 000 people employed in the culture sector in the Western Cape.

The opening of the R500-million Zeitz Museum of Contemporary

Art in the Victoria & Alfred Waterfront in Cape Town has made a

big impact. With a footfall of 24-million visitors going through the

Waterfront every year, the Zeitz is well located to attract good crowds.

The conversion of the old grain silos which created 6 000m² of gallery

space was paid for by the owners of the Waterfront, Growthpoint

Properties and the Public Investment Corporation.

Cape Town Air Access is a partnership between Wesgro, the City of

Cape Town, the Western Cape Government, Airports Company South

Africa, Cape Town Tourism and South African Tourism, and is the focal

point for international air route development in the Western Cape.

Two new trans-Atlantic flights were announced as part of the

Air Access programme in 2019, although one flight doesn’t quite

Sector Insight

Tourism guide Lonely

Planet selected the Cape

Winelands as a “Top 10 Best

Value Destinations for 2020”.

go all the way over the Atlantic

Ocean. St Helena is now

accessible directly from Cape

Town, but the big news is that

United Airlines started flying

directly from Newark Liberty (a

New York airport) in December

2019.

An additional 24 000

inbound passengers are

expected annually, an annual

growth projection of 20%, with

about 900 jobs being created

in the first year. The flight will

contribute to a R425-million

boost in tourism spend by 2021,

according to a study conducted

by Grant Thornton.

International arrivals at

Cape Town International

WESTERN CAPE BUSINESS 2020

68


OVERVIEW

Airport grew to 2.6-million

international passengers in 2018.

The growth came from longhaul

carriers from outside the

Southern African region. Overall,

84 000 more passengers passed

through the airport, bringing

the total number in 2018 to

10.6-million.

Airlink - Live the Dream

Getting to prime tourist

destinations directly from

Cape Town is made easier

by Airlink, which connects

to Nelspruit Kruger

Mpumalanga International

Airport (KMIA) or Skukuza

Airport for a bushveld

experience in the Kruger

National Park and Livingstone,

Zambia, for a close encounter

with Victoria Falls. From KMIA

there are flights to Vilanculos

in Mozambique, gateway to

the Bazaruto and Benguerra

islands. Another exciting

option out of Cape Town is

to fly to Maun in Botswana,

which gives access to the

Okavango Delta and the

wonders of the Chobe

National Park. (www.flyairlink.com)

Hotel occupancy in Cape

Town was 65% in 2018, a figure

that was down on the previous

year’s 69.5% but remarkably

good considering that the period

included the worst drought in

living memory. This is according

to a study done by STR Global.

Not only did South Africa win

the Rugby World Cup in Tokyo in

2019, Cape Town also won the

right to host the 2022 Rugby

World Cup Sevens. Cape Town is

Highlights

• International arrivals at Cape Town International Airport

grew 9.6% in 2018 to 2.6-million international passengers.

Cape Town will host the 2022 Rugby World Cup Sevens

and the Netball World Cup in 2023.

• Fancourt Hotel & Country Club won South Africa’s Best

Golf Hotel in the 2019 World Golf Awards.

• Plettenberg Bay has six Blue Flag beaches out of 30 with

that status in the Western Cape.

a popular destination on the circuit of the HSBC World Rugby Sevens

Series. The Netball World Cup will be in Cape Town in 2023 and the city

is making a habit of winning the African award for hosting the most

international association meetings. The ranking is awarded by the

International Congress and Convention Association (ICCA).

The Cape Town and the Western Cape Convention Bureau, a Wesgro

unit, promotes the Cape as a venue and assists with bids, planning

support and on-site services. Events, conferences and exhibitions help

to create a year-round industry which in turn boosts employment. The

R900-million expansion of the Cape Town International Convention

Centre (CTICC2) has given the city’s biggest venue additional volume

and flexibility.

Wesgro is targeting Asian countries such as Indonesia, Malaysia,

Philippines, Singapore and Thailand as potential new markets for the

Western Cape’s tourism offerings. Halal tourism, a global market that

is expected to reach $300-billion by 2026, is another major focus.

The Western Cape has upwards of 200 mosques and a cosmopolitan

lifestyle that has seen various faiths coexist for many years.

New cycling routes have been launched as part of the Cross

Cape Cycle Route which links Plettenberg Bay with Stellenbosch via

a number of charming small towns. Many towns and districts host

annual festivals, such as the Prince Albert Olive Festival.

Several hotel brands have extended their offering in Cape Town.

These include the AC Hotel by Marriott at the Yacht Club, Radisson Red

and Tsogo Sun. The Gorgeous George in downtown Cape Town has

joined the Design Hotels stable. ■

Online Resources

Cape Nature: www.capenature.co.za

Cape Town Tourism: www.capetown.travel

National Department of Tourism: www.tourism.gov.za

South African Tourism: www.southafrica.net

Wesgro: www.wesgro.co.za

69 WESTERN CAPE BUSINESS 2020


OVERVIEW

Banking

Cape Town is a fintech hub.

Inclusion, innovation and revolution, that’s the future of fintech

in Africa if the title of a conference segment held in 2019 is to

be believed.

The fact that an IT conference and exhibition included a fintech

component is significant. That it was held in Cape Town is also relevant.

Fintech is increasingly important to financial institutions. Barclays’ app

development organisation, Rise, has seven outlets around the world,

including one in Woodstock in Cape Town. A French-funded fintech

operation has been launched at Century City.

The African Institute of Financial Markets and Risk Management

(AIFMRM) aims is to meet the demands for skills by developing local

talent. It is supported by the Western Cape Provincial Government, the

University of Cape Town, Barclays Africa Group, FirstRand and Liberty.

The finance and insurance sector contributes 10.9% to provincial

GDP and is an area of the economy that shows consistent growth.

The sector outperforms most other sectors according to the

FNB Chart Book, and further growth is anticipated. New financial

services companies are starting or relocating to the Cape. These

range from asset managers to hedge funds, venture capitalists and

insurers. The financial services sector employs more than 50 000

people and the Western Cape hosts 17 companies which are listed

on the stock exchange.

The decision by the Johannesburg Stock Exchange (JSE) to open

a JSE Exchange Hub in Cape Town confirms the city’s importance in

the financial world. There are eight Cape Town-based companies in the

Top 40 Index of the JSE: Capitec Bank, Mediclinic, Naspers, Woolworths,

British American Tobacco, Remgro, Shoprite Holdings and Sanlam.

The head offices of financial firms are dotted all over Cape Town.

These include Old Mutual and Foord (Pinelands), Coronation (Newlands),

Prudential (Claremont), Sygnia (Green Point), Sanlam (Bellville) and Allan

Gray (Waterfront). PSG has its headquarters in Stellenbosch and is well

represented in rural towns. Insurers such as Santam and Metropolitan

Life are based in Bellville.

According to Wesgro, 75% of the venture capital deals that happen

in South Africa originate in the Western Cape. Most financial firms

Online Resources

Banking Association South Africa: www.banking.org.za

Financial Sector Conduct Authority: www.fsca.co.za

Insurance Institute of South Africa: www.iisa.co.za

South African Institute of Chartered Accountants: www.saica.co.za

Sector Insight

Japanese financial services

company Nomura has

started operations.

based in Cape Town have a

long history, some going back

as far as 1845 when Old Mutual

started.

The green bond issued by

the City of Cape Town is a sign

of the “climate change” times.

South Africa’s third-ever green

bond attracted bids over R4-

billion on an initial offering on

projects worth R1-billion. The

lead arranger for the bond was

Rand Merchant Bank.

A newcomer to the Cape

financial services sector is

Nomura, a Japanese financial

holding company. The company

intends expanding its services

into Southern Africa. ■

WESTERN CAPE BUSINESS 2020

70


Development finance

and SMME support

Sauce company finds the right funding recipe.

OVERVIEW

For small businesses to get bigger, they often need a little help.

When Cape Town-based SMME Pesto Princess wanted to

expand, it turned to the CDI Growth Fund.

A grant made it possible to expand and create 10 new jobs

making sauces, pastes and soups and the company (pictured) intends

to carry on growing, aiming for a factory four times bigger than its

current facility and upwards of 250 new jobs as they expand.

The R12.8-million CDI Growth Fund is managed by CDI Capital,

which was incorporated as a subsidiary of the Craft and Design

Institute (CDI) in 2016 to arrange funding for SMMEs. The funding has

been enabled through contributions by the National Treasury’s Jobs

Fund, the Technology Innovation Agency (TIA), and the Western Cape

Department of Economic Development and Tourism (DEDAT).

Two of the Western Cape’s universities, Stellenbosch and Cape

Town, are the first collaborators with the University Technology Fund

which aims to commercialise innovations and inventions coming

out of tertiary institutions. Some universities already have their own

commercialisation units, but the UTF will have considerable financial

clout, as it is a part of the South African SME Fund, an offshoot of the

CEO Initiative which brought together 50 major corporations, the

Public Investment Corporation, the Unemployment Insurance Fund

and the Compensation Commission.

Sector Insight

V&A Waterfront SMMEs

achieved revenue of

R329-million in 2018.

Among the businesses

receiving support from the SA

SME Fund are Masisizane, which

helps black entrepreneurs buy

petrol stations, and Hyrax, a

company which emerged from

research done at the University

of the Western Cape into which

HIV-positive people were

resistant to certain drugs.

Another Cape institution

supporting SMMEs is the V&A

Waterfront where a study has

shown that revenue earned by

small enterprises in 2018 was

71 WESTERN CAPE BUSINESS 2020


R329-million, up from R78-million in 2007. Workshop 17 offers free WiFi

and co-working space to tech startups and the venue has attracted

110 firms. Another venue, the Watershed, showcases design and craft.

More than 90% of stock sold out of the Watershed is made locally and

some design companies, such as leather product makers Wolf and

Maiden, have moved out and up into the more exclusive retail space

elsewhere in the Waterfront.

The Long Street Kiosks is an attempt by the Provincial Government

of the Western Cape to support SMMEs in the centre of the city.

Subsidised space alongside the government’s building in one of Cape

Town’s busiest tourist routes was allocated for traders. Mpho Mopai,

of Tees and Gees, took advantage of the site and the support to such

good effect in selling his T-shirts that he was one of the winners at the

Western Cape Entrepreneurship Awards.

Silulo Ulutho Technologies, which runs IT stores and training

centres in townships and rural communities, started out as a small

internet café in Khayelitsha in 2004. The provincial government’s

Enterprise Development Fund helped it grow to the point where it

has created more than 200 jobs and trained thousands of people. The

founder, Luvuyo Rani, was part of Team South Africa at Davos at the

World Economic Forum.

Using the supply chain is a good way to create new businesses

and retailers like Pick n Pay, Woolworths and Shoprite invest heavily

in such programmes.

The Philippi Village Container Walk houses key-cutters, building

material suppliers, hairdressers and clothes shops. With the backing of

the IDC, the two-storey creations house retail shops on the bottom

floor and offices on the top floor. Philippi Village is a joint venture

between Business Activator and the Bertha Foundation, a global

philanthropic foundation.

Cape Gateway, the website of the Western Cape government, lists

50 SMME support organisations in the province. These range from the

provincial trade and investment promotion agency, Wesgro, to smaller

community institutions and business initiatives.

The National Department of Small Business Development (DSBD) has

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

• The Black Business Supplier Development Programme,

a cost-sharing grant to promote competitiveness

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

Online Resources

CDI Growth Fund: www.thecdi.org.za

PERA: www.wcpremiersawards.co.za

SA SME Fund: sasmefund.co.za

Small Business Institute: www.smallbusinessinstitute.co.za

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

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

The Small Enterprise

Development Agency (Seda)

is an agency of the DSBD and

gives non-financial support

to entrepreneurs through

training, assistance with filling

in forms, marketing and creating

business plans. It helps small

businesses draft applications for

loan finance.

Seda has established a Rapid

Incubator in partnership with

the Centre for Entrepreneurship

(CFE) at False Bay TVET College,

Westlake Campus.

Intended to encourage TVET

graduates to start their own businesses,

the focus is on metal fabrication

and furniture making. The

Rapid Incubation Programme encourages

innovative thinking and

allows students, entrepreneurs

and potential clients to interact.

Learning how to commercialise

products and services is a key

element of the course.

The National Gazelles is

a national SMME accelerator

jointly funded by Seda and the

DSBD. The aim is to identify

and support small businesses

with growth potential across

priority sectors aligned with

the National Development

Plan and Seda’s SMME strategy.

Businesses can receive up to

R1-million for training,

productivity advice, business

skills development and the

purchase of equipment.

The National Small Business

Chamber (NSBC) has a base of

over 125 000 SMEs and 50 big

brands as partners. A memberbased

organisation that offers

benefits, the NSBC runs surveys

and hosts expos, networking

events and awards functions. ■

WESTERN CAPE BUSINESS 2020

72


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23595/E BLACK RIVER F.C.


OVERVIEW

Education and training

Creating a skilled workforce is a national priority.

UCT researchers’ work on epileptic seizures includes examining a mouse hippocampal brain slice prior to a

patch-clamp electrophysiological recording. Image: Dr Joseph Raimondo/UCT.

Skills training is a national priority and several institutions are

supporting this goal in the Western Cape, including three

academic universities, one comprehensive university, one

university of technology and six Technical and Vocational

Education and Training (TVET) colleges. Unisa, the country's biggest

distance learning institution, has a campus in Cape Town and a service

centre in George.

The National Skills Authority (NSA) works with Sector Education

and Training Authorities (SETAs) in carrying out the National Skills

Development Strategy (NSDS). The Human Resource Development

Council of South Africa (HRDCSA) is an over-arching body that gives

guidance to the many institutions working on skills development and

training. It is managed by the National Department of Higher Education

and Training (DHET). The strategic goal of the DHET is to create “a capable

and skilled workforce for inclusive growth”.

TVET colleges have been asked to concentrate on 13 trade areas,

including bricklayers, millwrights, boilermakers and riggers. R16.5-billion

has been allocated by national government to skills development and

infrastructure over the medium term. The Western Cape has further

honed the priority sectors down to five and is keeping track of the young

people who join its programmes.

The Western Cape Provincial Government’s Apprenticeship Game

Changer aimed to introduce 32 500 qualified apprentices into the labour

market by 2019. R1-billion was allocated over a three-year time frame.

A Centres of Specialisation Programme has been introduced by

Sector Insight

A R1-billion Biomedical

Research Institute is under

construction.

the DHET to tackle priority

skills. False Bay TVET College is

a Centre of Specialisation with

a focus on training riggers and

mechanical fitters. With the

oil and gas sector expected to

grow rapidly in the near future,

trained artisans can expect

to find employment quickly.

The College of Cape TVET is

concentrating on plumbing and

automotive motor mechanics.

False Bay TVET College

has campuses in Fish Hoek,

Muizenberg, Mitchells Plain,

Khayelitsha and Westlake. The

College of Cape Town (CCT) has

seven campuses from the city

centre to Guguletu and Wynberg.

WESTERN CAPE BUSINESS 2020

76


OVERVIEW

A new welding academy in

Thornton was opened with

support from the merSETA

(Manufacturing, Engineering and

Related Services SETA). Northlink

College is in the northern suburbs

of Cape Town.

Outside of the Cape

metropole, Boland College looks

after Stellenbosch, Worcester,

Paarl and Caledon, while the

Southern Cape College covers

a wide area, from George to

Beaufort West. The West Coast

College also has a big catchment

area. Boland College participates

in an Expanded Public Works

Programme (EPWP) run by the

South African Chefs’ Association.

Airports Company SA (ACSA),

the City of Cape Town and False

Bay TVET College in Westlake

have combined to offer residents

of Blikkiesdorp a chance to learn

skills in brick-laying, housebuilding,

scaffolding and health

and education. ACSA is investing

R5-million in the 12-month

certification project and the

Construction Education and

Training Authority (CETA) will

channel funds to False Bay TVET

College for training.

SARETEC offers industry-specific

training in a new

economic sector. The South

African Renewable Energy

Technology Centre is managed

by the Cape Peninsula University

of Technology (Bellville

campus) but it collaborates

with several other institutions

and private companies.

Online learning is one of the

world’s fastest-growing sectors

and the investment of $3-million

by Construct in a new Cape

Town office is evidence that

the trend has come to the Western Cape. The Construct Learning Lab

supports universities in Boston, Doha and Oxford as well as companies

and government bodies. The company expects to increase its staff

complement by 150 over three years.

Universities

Two Western Cape research institutions have made large investments

in research infrastructure. A new Biomedical Research Institute is

being built by Stellenbosch University at a cost of R1-billion and the

University of Cape Town plans to move its Neuroscience Institute,

which it runs in partnership with Groote Schuur Hospital, into a new

building. An innovation laboratory, clinical and training spaces and

an innovation space where researchers can interact are part of the

plans for the new facility.

The 2018 Quacquarelli Symonds (QS) World University Rankings,

ranked the University of Cape Town in the top 200 universities in the

world and the top-ranked institution in Africa. The rankings are based on

six indicators: academic peer review, faculty/student ratio, citations per

faculty, employer reputation and international student ratio .

These three institutions, plus the Cape Peninsula University of

Technology, produce approximately 12 000 science, technology,

engineering and mathematics graduates every year and host 11 000

students from other African countries.

The University of Cape Town has more than 21 500 students, 720

permanent staff and 39 A-rated researchers (40% of South Africa’s total).

Stellenbosch University is linked to Stellenbosch’s growing reputation as

a technology hub. The University of the Western Cape is home to several

national research bodies.

University education is available in George through the Nelson

Mandela Metropolitan University (NMMU): Saasveld is home to the

School of Natural Resource Management and the York Street Campus

delivers courses in business and social science, accounting and

business management.

In his first State of the Province address, Premier Alan Winde gave

notice that the Western Cape intends expanding the traditional focus

on STEM subjects (Science, Technology, Engineering and Maths) to

include other important fields where jobs can be created. Pilot projects

are in place to expand STEM to STEAMAC, with the additional two As

signifying the Arts and Agriculture and the C representing Coding and

Cloud Computing. ■

Online Resources

Apprenticeship Game Changer: www.westerncape.gov.za

Centres of Specialisation: www.dhet.gov.za

SA Renewable Energy Technology Centre: www.saretec.org.za

TVET colleges: www.tvetcolleges.co.za

77 WESTERN CAPE BUSINESS 2020


FOCUS

False Bay TVET College

A gateway to employment, entrepreneurship and higher education.

About the college

With 688 000 students enrolled in 2017, Technical and Vocational

Education and Training (TVET) colleges are an important avenue to

post-school education and vocational training and are crucial to job

creation, economic growth and the future prosperity of the country.

False Bay TVET College has five well-resourced campuses in

the Cape Peninsula that collectively have an annual enrolment of

around 11 000 students. While not the largest college, False Bay has

consistently been recognised as one of the best TVET colleges in

South Africa for over 15 years.

Along with its services to our youth, communities and diverse

industries, False Bay TVET College has strong ties and strategic

partnerships with employers, government departments, the SETAs,

representative industry bodies and both local and international

educational institutions. These partnerships enable us to leverage

resources and opportunities that give our students not only

affordable access to quality training and jobs but to life skills,

work experience and cultural enrichment.

funding fee-free education for

the majority of TVET students;

the SETAs spending over

R500-million on bursaries and

placements at TVET colleges,

universities and universities of

technology; the Department

of Higher Education and

Training (DHET) funding 12 new

campuses and colleges; and the

DHET supporting 14 universities

to develop programmes for

improving TVET lecturers’

qualifications.

Ten reasons for our success

1. Ideal location: Five campuses located in the

communities of Muizenberg, Mitchells Plain,

Khayelitsha, Westlake and Fish Hoek are easily

accessible, allowing students to commute from

anywhere in the Peninsula. In response to

demand, the College is set to double

its enrolment and add two more

specialised campuses: a 6.5-hectare

mega-campus in Mitchells Plain

that will serve as many as 10 000

students and the Swartklip campus

located at the former Denel munitions

testing grounds, which will offer stateof-the-art

artisan-related programmes to

3 000 students a year.

2. Benefits of investment: The TVET sector has recently

attracted heavy government investment, which is

rapidly improving the access to and quality of TVET

qualifications. These investments include the NSFAS

WESTERN CAPE BUSINESS 2020

78


3. Efficient administration: The

College’s growth is underpinned

by strong leadership and an

award-winning administration

system that has been

recognised by the Auditor-

General of South Africa and the

DHET. The College has twice

received clean audit awards and

has received a clean audit for

the past five years.

4. Relevant curriculum: The

College offers vocational,

occupational and skills training

programmes with a special

focus on artisan skills in the

Electrical, Motor Mechanics,

Welding and Fabrication, Fitting

and Turning, Automotive Body

Repair, Spray Painting, Masonry,

Plumbing, Carpentry and

Joinery trades. Courses are also

offered in Business, Information

and Communication

Technology, Hospitality,

Engineering, Tourism, Yacht and

Boat Building, Safety in Society,

2D Animation and Education

Studies. All College programmes

are examined and certified

nationally and designed in

collaboration with commerce

and industry.

5. Strong partnerships:

Private and public employer

organisations recognise that

the only way to assist young

people to gain work experience

and increase their employability

is through engaging with them

and opening up workplace opportunities. False Bay TVET College

understands and promotes the important role of employers in

providing workplace experience, internship and employment

opportunities to College students and graduates. All our partnerships

are informed by this common understanding.

6. Placement track record: The College excels at supporting its

graduates during their transition to the world of work. Its Work-

Integrated Learning (WIL) Department achieved a 92% placement

rate in 2018, a feat few colleges could match in the current state

False Bay TVET College is the Western Cape Center of Specialsation for

Mechanical Fitting and Rigging.

of the economy. The College employs five dedicated WIL officers

who provide graduates with work placement support. This service

helps to connect students to job opportunities and prepares them

for the world of work via the work-readiness programme. The WIL

programme not only benefits students, but participating companies

are able to improve their company B-BBEE scorecards, access SETA

benefits, release full-time staff for training and upskilling, and improve

staff retention. The WIL programme was recognised by the ETDP SETA

at the 2018 National Skills Conference and Development Awards

with the prestigious Gold Award in the Most Outstanding Skills

Development Stakeholder category.

79 WESTERN CAPE BUSINESS 2020


7. Forward thinking: False Bay TVET College is increasingly

investing in new technology to take advantage of the digital

age. As access to information improves with every advance in

internet technology, our students benefit from new teaching

methodologies, opportunities for distance learning and

participation in international joint programmes.

False Bay TVET College took the prestigious Gold award in the Most

Outstanding Skills Development Stakeholder .

The government has initiated the Centres of Specialisation

Programme through the DHET to address the demand

for qualifications in the priority trades needed for the

implementation of the government’s growth strategy. False Bay

TVET College was selected as the Centre of Specialisation and

premier training institution for riggers as well as mechanical

fitters in the Western Cape.

In keeping with the global

trend, the College recognises

that many graduates are

more likely to start their

own businesses in future

than remain as employees

in established businesses. To

facilitate the entrepreneurial

development of students and

graduates, the College hosts the

Centre for Entrepreneurship/

Rapid Incubator (CFE/RI), a

partnership with the DHET

and the Department of Small

Business Development. The

CFE/RI provides a supportive

environment, top-class

machinery and physical space

to student entrepreneurs to

enable product development.

Learning is supported by

structured individual mentoring

and the facilitation of linkages

to new resources.

8. Student support:

The College offers comprehensive

student support

and development services

at all its campuses, which

Centre for Entrepreneurship / Rapid Incubator Programme Graduates.

WESTERN CAPE BUSINESS 2020

80


include career guidance, financial aid,

personal counselling, academic support

and job placement.

9. Inclusive education: False Bay TVET

College has an Inclusive Education

Office which ensures that students

with disabilities are able to access our

learning facilities and support services

at all our campuses. For students who

experience difficulty accessing the

College due to work commitments

or distance, the College provides

alternative modes of teaching and

training, including part-time classes and

distance learning options.

10. Student life: Our relationships

with the students begin even before

they enrol. The first contact for many

happens on our popular Open Days,

where prospective students and parents

receive all the course information and

career guidance they need to make

an informed choice. False Bay TVET

College students are offered a rich

campus life focused on healthy activity

that encourages the development

of beneficial co-curricular learning,

including participation in inter-college sports and

various clubs and societies. Students are served by

an active Student Representative Council and there

is regular engagement between management, the

faculty and students across all courses and campuses.

Our structured communication environment enables

the College to identify and service students’ needs

effectively, which often leads to innovations, such as

the recently introduced mobile health and wellness

campus clinic, the first such facility in South Africa.

How to contact False Bay TVET College

Please see our website at www.falsebaycollege.co.za

for contact details of our campuses, course details and

assistance with the application process.

Linkages & Partnerships

Tel: +27 21 787 0800

Email: Jacqueline.Layman@falsebay.org.za

Centre of Entrepreneurship & Rapid Incubator

Tel: +27 21 201 1215

Email: info@falsebayincubate.co.za

Work-Integrated Learning Department

Tel: +27 21 700 6400

Email: jobplacement@falsebay.org.za

www.falsebaycollege.co.za

81 WESTERN CAPE BUSINESS 2020


FOCUS

College of Cape Town

A Welding Academy has been launched in Thornton.

The College of Cape Town for TVET has eight

campuses that serve students mostly from

the central metropolitan area of the City of

Cape Town.

All campuses, including the Central Office, are

based in the Central Metropole region of Cape

Town and are located within an approximately

20km radius.

The College has 13 802 enrolled students with

just over 8 000 doing NATED Report 191 with the

other largest enrolments being National Certificate

Vocational (2 834) and Occupational Qualifications

(2 301). More than 1 000 students are doing short

skills programmes.

Programmes vary in duration from three

months to three years. Courses are delivered as

Learnerships, Internships, Short Skills Courses

and Apprenticeships.

The mandate

The College of Cape Town is a public Technical and

Vocational Education and Training (TVET) College

which falls under the auspices of the Department of

Higher Education and Training. The College mandate

is to provide inclusive quality Vocational Education

and Training responsive to the labour market. The

College of Cape Town endeavours to achieve the

following national strategic priorities:

• Growth and expansion of relevant and

priority programme opportunities for the youth

• Growth and expansion of artisan development

opportunities

• Improvement of academic quality and

success, ie improving certification, throughput

and retention rates of its ministerial and

occupational programmes

• Establishing relevant and viable partnerships

and linkages with industry, Sector Education

and Training Authorities (SETAs) and/or other

professional bodies and/or institutions of

higher education

• Improving support system efficiency

• Sound institutional governance, management

and leadership

• Inculcating a culture of monitoring and

evaluation of College performance

• Improving information management and data

reporting systems and processes.

Diverse programmes

Offerings include ministerial programmes,

occupational programmes and short courses.

City Campus: Art and Design, Business Studies,

Hospitality, and Travel and Tourism

Wynberg Campus: Beauty Therapy and Haircare

Thornton Campus: Building and Civil Engineering,

Mechanical Engineering and Occupational

Gugulethu Campus:

Business Studies and Electrical Engineering

Crawford Campus: Education and Training, and

Information and Communication Technology

WESTERN CAPE BUSINESS 2020

82


FOCUS

Pinelands Campus: Electrical Engineering

Athlone Campus: Mechanical Engineering

Centres of Specialisation: Motor Mechanics

and Plumbing

Niche areas:

• Early Childhood Development

• Information and Communication Technologies

• Electrical Engineering.

Goals

The College’s key strategic goals for 2020 are to

maintain ministerial programme enrolment and

to grow the occupational programme and short

skills programmes. The College is committed

to broadening entrepreneurship awareness

and capabilities. Growth areas will be in Early

Childhood Development, Electrical Engineering

and Information and Communication Technology.

More SETA Learnerships and Skills Programmes

are planned, as well as QCTO programmes and

Apprencticeship programmes.

The College’s six strategic goals are:

• Grow academic excellence

• Expand student support

• Develop leadership, governance and

organisational performance

• Develop an enabling environment

• Drive transformation and build partnerships.

Entrepreneurship

Entrepreneurial courses and incubator programmes

are available. These are the steps students should

take to become an entrepreneur:

• Know the industry or niche

• Research the market

• Educate yourself to become an entrepreneur

• Build the business slowly.

Scarce skills

The Sector Education and Training Authorities for

each sector generate the Critical and Scarce Skills list

nationally. In the Western Cape, note is also taken of

local labour force realities in terms of demand and

supply of skills. A TVET College must keep abreast

of the labour market needs via partnerships and

involvement with agencies and the Chambers

of Commerce. Some of the top scarce skills and

professions in South Africa include Software

Development, Network and Information Security,

Web Development, Management Skills, Financial

Skills, Engineering, Education and Training

Professionals and Artisans. The College of Cape

Town for TVET is responding to most of them by

offering relevant programmes.

The Crawford Campus has a well-established

Early Childhood Development Faculty offering the

best training and courses. Thornton Campus has

a newly built state-of-the-art Welding Academy,

equipped with the latest equipement and

technology, and is positioned to offer international

welding qualifications.

Partnerships

The College has a special relationship with the the

Manufacturing, Engineering and Related Service

SETA (merSETA), which recently funded the Welding

Training Centre.

The College has many partnerships in place with

the private sector, particularly for Workplace Based

Learning or exposure. Most of these partnerships

have been formualised through MoUs lodged with

the Linkages and Programmes Unit (LPU) in support

Occupational Programme development and

delivery. A campaign has been launched to grow

the partnership base in the following areas: student

placements (internships and work-based exposure),

apprenticeships, skills training, course design and

workplace mentorship.

The College has good relations with industry

associations. Several projects have been run with

youth development agencies such as the Youth

Empowerment Service (YES). The College works

closely with various government agencies both

nationally and regionally. These include the City of

Cape Town, the Premier’s Office and the Western

Cape Department of Economic Development and

Tourism, the Western Cape Education Department

and the Department of Labour. ■

Contact Details

Address: 334 Albert Road, Salt River,

Cape Town 7945

Tel: +27 21 404 6700 • Fax: +27 21 404 6701

Website: www.cct.edu.za

83 WESTERN CAPE BUSINESS 2020


OVERVIEW

Business Process Outsourcing

A war room is removing red tape in BPO.

Sector Insight

Education is a fast-growing

sector within BPO.

A

war room to unblock red tape in important job-creating

sectors such as business process outsourcing (BPO) has

been set up by the Western Cape Provincial Government

with financial support from Harvard University.

The job statistics published by Business Process enabling South

Africa (BPeSA) published for the second quarter 2019 show 5 391 new

jobs created (mostly in the Western Cape and KwaZulu-Natal) with

younger people getting most of the jobs and 97% of the jobs going

to people of colour and 66% to women. The strongest sectors were

telecommunications, education, retail and insurance.

BPO employs more than 50 000 people in the province, against

about 228 000 in South Africa as a whole. This is according to the

Key Indicator Report of BPeSA, the national organisation with

representation in the nation’s three biggest cities.

Sixty-three percent of the offshore market is in the Western Cape

where the provincial government has identified BPO as one of the six

key sectors that can create jobs quickly. The City of Cape Town, the

provincial Department of Economic Development, Agriculture and

Tourism (DEDAT) and IT service management company EOH jointly

sponsor the training and 12-month learnerships of 175 unemployed

work-seekers in BPO. The municipality also trains 20 potential team

leaders to build management skills within the sector.

BPO involves any internal businesses that a company chooses

to outsource to a specialist in that field, for example accounting or

customer service centres. UK shop Asda and online retailer Amazon

have large customer service centres in Cape Town. Other big brands

Online Resources

Business Process enabling South Africa (BPeSA): www.bpesa.org.za

Contact Centre Management Group: www.ccmg.org.za

National Department of Trade, Industry and Competition:

www.dti.gov.za

include British Gas, IBM, KLM,

Lufthansa, Mastercard and

Microsoft.

The fact that greater

Cape Town is home to three

universities, a university of

technology and two technical

colleges is a major advantage

in attracting companies with

sophisticated operations. Other

factors in favour of Cape Town

are the relatively neutral accents,

good infrastructure (financial

and telecommunications) and

the time zone being the same or

close to Europe’s.

The Department of Trade,

Industry and Competition

(dtic) offers incentives to BPO

investors. A base incentive is

calculated on projected offshore

jobs to be created and is

awarded on actual offshore jobs

created. The incentive has a twotier

structure for non-complex

and complex jobs and is paid

over a five-year period.

A new Global Business

Services (GBS) Incentive was

launched in London in 2018

to replace a scheme initiated

in 2014. According to the dtic,

the earlier scheme resulted in

an additional 20 000 direct jobs

in the sector with an average

growth rate of 22% per annum

in the period 2014-2018. ■

WESTERN CAPE BUSINESS 2020

84


Department of Social Development

MEC: Ms Sharna Fernandez

Union House, 14 Queen Victoria Street, Cape Town 8001

Tel:

Western

+27 21 483 5045 | Fax: +27 21 483 4783

Web: www.westerncape.gov.za/dept/

social-development Provincial Government

8th Floor, 9 Dorp Street, Cape Town 8000

Office of the Premier

Premier: Mr Alan Winde

Provincial Legislature Building,

1st Floor, 7 Wale Street, Cape Town 8000

Tel: 0860 142 142

Email: service@westerncape.gov.za

A guide to the metropolitan, district and local municipalities Department of in Health the Western Cape.

Department of Agriculture

MEC: Dr Nomafrench Mbombo

MEC: Dr Ivan Meyer

21st Floor, 4 Dorp Street, Cape Town 8000

CITY Admin OF Building, CAPE Muldersvlei TOWN Road,

Witzenberg Tel: +27 21 483 Local 3245/5417 Municipality

METROPOLITAN Elsenburg 7607 MUNICIPALITY

Tel: +27 23 316 1854 | Fax: +27 23 316 1877

Department of Human Settlements

Address: Tel: +27 Civic 21 808 Centre, 5111 Podium Block, 6th Floor, 12 Hertzog Website: www.witzenberg.gov.za

MEC: Mr Tertius Simmers

Boulevard, Cape Town 8000

Tel: Department +27 21 400 1111 of Community | +27 21 400 1313 Safety

CENTRAL 27 Wale Street, KAROO Cape DISTRICT Town 8001 MUNICIPALITY

Fax: MEC: 0860 Mr Albert 103 Fritz 090

Address:

Tel: +27 21

63

483

Donkin

6488

Street, Beaufort West 6970

Website: 35 Wale Street, www.capetown.gov.za

Cape Town 8000

Tel:

Department

+27 23 449 1000

of Local

| Fax:

Government

+27 23 415 1253

Tel: +27 21 483 6949/8588

Website: www.skdm.co.za

CAPE WINELANDS DISTRICT MUNICIPALITY

MEC: Mr Anton Bredell

Address: Department 46 Alexander of Cultural Street, Affairs Stellenbosch and Sport 7599 Beaufort 8th Floor, Waldorf West Local Building, Municipality

80 St George’s Mall,

Cape Town 8001

Tel: MEC: 086 Ms Anroux 126 5263 Marais | Fax: +27 21 888 5100

Tel: +27 23 414 8149 | Fax: +27 23 414 8105

Tel: +27 21 483 4049/4997

Website: Protea House www.capewinelands.gov.za

Building, 7th Floor,

Website: www.beaufortwestmun.co.za

Greenmarket Square, Cape Town 8000

Department of Social Development

Breede

Tel: +27 21

Valley

483 9503

Local Municipality

Laingsburg Local Municipality

MEC: Ms Sharna Fernandez

Tel: +27 23 348 2600 | Fax: +27 21 883 8871

Tel: +27 23 551 1019 | Fax: +27 23 551 1019

Union House, 14 Queen Victoria Street, Cape Town 8001

Website: Department www.bvm.gov.za

of Economic Development Website: www.laingsburg.gov.za

Tel: +27 21 483 5045

and Tourism

Drakenstein Local Municipality

Prince

MEC: MrDavid Maynier

Department

Albert

of

Local

Transport

Municipality

and Public Works

Tel: +27 21 807 4500 | Fax: +27 21 872 8054

Tel:

11th Floor, NBS Waldorf Building,

MEC: +27 Mr Bonginkosi 23 541 1320 Madikazela | Fax: +27 23 541 1321

Website:

80 St George’s

www.drakenstein.gov.za

Mall, Cape Town 8001

Website: www.pamun.com

8th Floor, 9 Dorp Street, Cape Town 8000

Tel: +27 21 483 5065

Langeberg Local Municipality

GARDEN

Tel: +27 21

ROUTE

483 4813

DISTRICT MUNICIPALITY

Tel:

Western

+27 23

Cape

615 8000

Education

| Fax: +27

Department

23 615 1563

Website: www.langeberg.gov.za

MEC: Ms Debbie Schäfer

Stellenbosch Grand Central Towers, Local Lower Municipality Parliament Street,

Cape Town 8001

Tel: +27 21 808 8111 | Fax: +27 21 808 8003

Tel: +27 21 467 2000

Website: www.stellenbosch.gov.za

Tel: +27 21 483 4813

Fax: +27 21 483 5068

Web: www.westerncape.gov.za/dept/tpw

Provincial Treasury

MEC: Mr David Maynier

Department of Environmental Affairs

and Development Planning

MEC: Mr Anton Bredell

8th Floor, 1 Dorp Street, Cape Town 8000

Tel: +27 21 483 4091

Address: Provincial 54 York Treasury Street, George 6530

Tel: MEC: +27 Mr David 44 803 Maynier 1300

Fax: 3rd 086 Floor, 555 7 Wale 6303 Street, Cape Town 8000

Website: Tel: +27 21 www.gardenroute.co.za

483 4237

LISTINGS

3rd Floor, 7 Wale Street, Cape Town 8000

Department An overview of of Transport the Western and Cape’s Public Works provincial government departments.

Tel: +27 21 483 4237 | Fax: +27 21 483 3855

MEC: www.westerncape.gov.za

Mr Bonginkosi Madikazela

Web: www.westerncape.gov.za/dept/treasury

Western Cape Local Government

115

85 WESTERN

WESTERN

CAPE

CAPE

BUSINESS

BUSINESS

2020

2019


INTERVIEW

Cape Winelands

District Municipality

Executive Mayor Dr Helena von Schlicht wants

to see economic development linked to the

creation of healthy and resilient communities.

Executive Mayor Alderman

Dr Helena von Schlicht

Biography

Dr Helena von Schlicht honed

her skills during a 24-year career

in higher education. After earning

her doctorate, she worked

as Head of Department, Social

Work, at the Huguenot College

in Wellington. In this capacity,

she was involved in the writing

and implementation of policies.

She transferred to the political

arena in 2009 and became a

member of the Mayoral Committee

in 2011. She has been

Executive Mayor since the election

of September 2016.

How is a District Municipality different to other municipalities?

The CWDM is one of five district municipalities in the Western

Cape. The focus is to identify and grow opportunities for social and

economic development.

We are a highly functional municipality, a fact proven by five

consecutive clean audits received, the successes achieved by the

Fire Services, Municipal Health Services and the recently signed

partnership with Santam to address risk reduction in communities.

The CWDM, together with our partners in tourism, recently

celebrated being named one of the Top 10 Value-for-Money

destinations in the world by Lonely Planet.

Add to this the vast open spaces, hospitable people, fauna

and flora, agricultural sector, wine industry, fine cuisine and

opportunities for grand adventure. This all echoes what Cape

Winelands tourism stakeholders believe: “A thousand things to do

and then some wine...”

How do you promote local economic and social development?

The planning and funding of projects is determined by our

Integrated Development Plan. We will not develop economically

if we do not have an efficient, healthy and resilient community.

Programmes supported include Early Childhood Development,

sports development and seed funding for young entrepreneurs.

Courses are offered for disabled persons in customer care.

The Department of Municipal Health Services checks that our

restaurants and other food production spaces are compliant which

enables visitors and tourists to consume hygienically prepared

meals, which helps to grow our economy.

How do you understand “social health”?

Economic development depends on the social health of our citizens,

and we must address both issues at the same time. We want to

empower people and enable them to enter the economy, create

jobs, support their families and contribute to the overall prosperity

of society. When someone has a strong and healthy sense of social

cohesion, it’s easier for them to participate in the economy.

WESTERN CAPE BUSINESS 2020

86


INTERVIEW

and property are protected

from fires. Approximately

1 500 field fires are extinguished

per fire season, and

by means of the Disaster Management

Division, the municipality

ensures that care is taken

of people who are displaced by

disasters.

Tell us about the Annual Mayoral Tourism Awards.

We recognise the value of a robust tourism industry and its role

in economic and skills development. Finalists and winners in this

year’s competition included Fynbos Farm outside Tulbagh, who

entered in the Sustainable Development Category. They offer

camping and self-catering chalets. The runner-up in this category

was the off-the-grid African Game Lodge, 30km from Montagu.

The winners in the Service Excellence Category were as follows:

• The Light House Boutique Hotel (Luxury hotels)

• Big Sky Cottages in Wolseley (Self-catering)

• Avalon Springs in Montagu (Family Accommodation)

• Montagu/Ashton Local Tourism Association (LTA).

In the Entrepreneurship category, Flying Feet of Montagu

(walking and bicycle tours) was runner-up and the winner was Tuk

Tuk Franschhoek, who offer tours, pick-ups and drop-offs at wine

cellars as well as special events.

The two top Wine Destinations were Val du Charon (pictured)

in Wellington for their wonderful ambience and wide choice of

activities, followed by Bluvines in Montagu, who offer the visitor

a New York experience with a local feel and staff who often, quite

spontaneously, perform song and dance to the delight of all.

Tell us about the new app.

Visitors can download a complete guide to the Cape Winelands in

the form of a free application for their Android or Apple mobile. The

app was launched in September 2019 after an extensive research

and development phase.

How important are functions such as firefighting, environmental

health and the roads agency?

The Technical Services Division is responsible for the maintenance

of approximately 3 700km of rural and gravel roads, while: Fire

Services, in partnership with Cape Nature and the Fire Protection

Association, ensures that fauna, flora, human and animal life

What makes the CWDM

so special?

The Cape Winelands are not

only known for the best noble

wines in the country but also

have the following strengths

and benefits that enable

growth and expansion of the

district’s economy:

• The district benefits from

a developed road and rail

network that provides local

businesses with easy access.

• Easy access to Cape Town

International Airport and

the Port of Cape Town.

• A diverse choice of urban

and rural sites.

• Educational institutions

and centres for research

excellence such as the

University of Stellenbosch

and the Agricultural

Research Council.

• Nationally and

internationally renowned

special educational

institutions.

• The quality of life. The Cape

Winelands is one of

the most-visited regions

for the domestic and

international tourist.

There is something for

everyone here in the beautiful

Cape Winelands. There are

a thousand things to do... and

then some wine! ■

87 WESTERN CAPE BUSINESS 2020


Index

Africa Biomass Company (ABC) 9, 56

BCX IFC, 73

Breede-Gouritz Catchment Management Agency (BGCMA) 37

Cape Chamber of Commerce & Industry 6, 28

Cape Winelands District Municipality (CWDM) 2, 86

College of Cape Town 11, 82

False Bay TVET College 78 - 81

Greater Tygerberg Partnership 32

Maritz Electrical 64 - 67

Metropolitan 4, 74

Nedbank 38 - 43

Petroleum Agency South Africa

SA Airlink

OBC

IBC

Vinpro 49

Wesgro 26

Western Cape Business Opportunities Forum (WECBOF) 30

Western Cape Department of Economic Development and Tourism 20 - 25

WESTERN CAPE BUSINESS 2020

88


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